SCM GROUP PUBLIC REPORT 2011

Our main environmental activities:
• reducing harmful emissions;
• preservation and rational consumption of water;
• rational use of land;
• utilization of waste;
• preserving biodiversity;
• fighting climate change;
• shaping the environmental culture;
• participation in regional, national, and industry environmental
programs.
Metinvest and DTEK are implementing the following longterm
equipment upgrade programs, aimed at resulting in the
cleaner environment:
• Metinvest continued the implementation of metallurgical
production modernization program, intended to
lower the environmental impact of its enterprises. In
2011, Azovstal Steel Plant completely switched from
the open-hearth blast furnaces to oxygen converters for
steel production, which will improve the plant’s environmental
indicators.
• Vostokenergo (DTEK) continued the reconstruction of its
power-generating units, intended to improve the quality
of emissions purification from dust, sulfur oxides, and
nitrogen.
SCM Group’s industrial enterprises also work on joint implementation
projects within the framework of Kyoto Protocol
mechanisms.
Environmental culture
Environmental problems stimulate us to revisit our way of doing
things and provide us with an opportunity to change our
behavior and, therefore, our environmental footprint. We
believe that the environmental culture should be based on
the responsible behavior – not only of the companies and
their employees, but also of the local communities where
the companies operate.
We hope our environmental projects create the necessary
foundation to fully integrate our stakeholders and local communities.
Our ongoing environmental culture projects:
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• Healthy Environment Is Everyone’s Business – an environmental
education program, focused on energy- and
resource- efficiency; fighting climate change; involving
the local communities in resolving their city’s environmental
problems; as well as on facilitating environmentally
friendly behavior (Metinvest).
• Green Office – a program, focused on facilitating rational
and careful consumption of the office resources
(SCM).
Energy efficiency
Increasing energy efficiency and facilitating the rational consumption
of energy resources are among SCM Group’s priority
goals. Our industrial enterprises implement large-scale
investment programs, aimed at increasing energy efficiency
of production.
Our principle in energy efficiency – constantly decreasing
energy consumption by using energy conservation technologies
in all spheres of our activity.
Our key activities in energy efficiency:
• upgrade of industrial equipment;
• use of energy saving technologies;
• implementation of energy saving programs.
SCM Group’s strategic goal is to make our production facilities
as energy efficient as possible. This will allow us decreasing
the prime cost of production, as well as minimizing our
environmental footprint, including harmful emissions.
Our ongoing energy efficiency programs (Metinvest and
DTEK):
• improving energy efficiency management systems;
• annual energy efficiency program development and
implementation;
• improving energy resources consumption accounting
systems at the industrial enterprises, aimed at lowering
the overall consumption;
• implementing energy saving technologies within
the framework of the ongoing equipment upgrade programs.
All our projects, aimed at increasing energy efficiency of industrial
production, as well as at developing environmental