Impact and dependencies assessment
Novolipetsk Steel assessed its impact on biodiversity for its Russian operations, in line with the stages stipulated in the Natural Capital Protocol. It should, however, do the same for its international sites and at business model level. It does not disclose any assessment of its impacts on nature, including biodiversity, in its supply chain. While the company states it has followed the stages stipulated in the Natural Capital Protocol, no further evidence could be found that the company assesses its dependencies on nature within its own operations. The company does not disclose any assessment of dependencies on nature of its upstream business relationships.
Key areas and species
While Novolipetsk Steel discloses that it does not have sites near environmentally protected land or on land with a high biodiversity value, it is unclear if this is a global policy. The company does not disclose the locations of its suppliers that are in or adjacent to areas important for biodiversity. The company does not disclose species populations existing in or adjacent to its own locations or the locations of its suppliers. The company does not disclose the status according to national and international conservation lists of species identified in its own locations.
Ecosystem conversion and restoration
No evidence was found regarding Novolipetsk Steel’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets. The company is committed to restoring ecosystems in its science-based biodiversity conservation target AR 3 T, including measures for preventing potential impact, reducing current impact, regenerating and recovering ecosystems. The company discloses details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers. Swan Lake Environmental Park is a particular example.
Resource exploitation and circularity
While the company discloses most of its inputs, it does not disclose its material footprint information. The company does not report quantitatively on its group-wide circularity performance. The company discloses activities to improve soil health, including reforestation programmes to improve the ecological dynamics of the areas that have been impacted by its activities. The company does not disclose a target to improve soil health in its production or sourcing practices.
Water
No evidence that the company reduces water withdrawal across its own operations was found. The company does not disclose a time-bound target to reduce water withdrawal across its own operations. The company reports how much water is withdrawn for its own operations in water-stressed areas and it regularly monitors the risk to water availability in the regions where it operates. The company does not engage with suppliers to reduce water withdrawal. The company reports a decrease in water pollution. Discharges are continuously monitored for mineral content and show an improvement of 28% from 2018 to 2021. While the company states that each group company makes use of water purification and treatment technologies, no further evidence was found that the company discloses its processes for managing and monitoring discharge water quality. The company regularly reports on pollutants discharged into water bodies. The company does not disclose a commitment to respect the right to water. The company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.
Solid and air pollution
Novolipetsk Steel provides qualitative evidence of reducing production of hazardous waste, including mercury contaminants, but no evidence was found that the company reduces plastic use and waste in its own operations. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company reports regularly on air quality parameters of emissions of harmful air pollutants.
GHG emissions
Novolipetsk Steel is reducing its scope 1 and 2 greenhouse gas emissions. The company has multiple targets, notably relating to iron and steel. The company reports progress against its targets, but no evidence was found that the targets are aligned with a 1.5-degree trajectory. No evidence was found that the company is reducing its scope 3 emissions. The company does not disclose a time-bound target to reduce its scope 3 emissions or report progress against this target. No evidence was found that the company’s scope 3 emissions reduction target is aligned with a 1.5-degree trajectory.
Invasive species
The company has not identified any activities that could lead to the introduction of invasive species in its own operations.