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Having a responsible and effective supply chain in place is important within our business. Hence, we place a special emphasis on ensuring that our procurement practices are in line with all applicable laws and our ethical principles.

The EVRAZ Supply Directorate participates in the implementation of the Group’s strategic objectives and provides commodities — machinery, materials and services — for production and equipment upgrade programmes. The Supply Directorate, together with production facilities, identifies the optimum technologies and products to purchase for production needs in order to facilitate a continuous reduction in production costs and to boost efficiency.

Since 2013, the Policy on Main Procurement Principles (available only in Russian) has been the main regulatory document governing procurement performance. The Policy sets out the general procurement approach and main principles and applies to all Group segments.

In addition to a high-level policy, the Group has in place a system of specific regulatory documents governing supply chain management, depending on the type of process and whether procurement is planned and conducted at the managing company level or in individual EVRAZ segments.

EVRAZ procurement principles

Integrity and partnership

We act with integrity by enhancing confidence, mutual trust and benefits among our suppliers.
We aim to support the collaborative development and implementation of progressive technologies.

Efficiency

The Group is committed to carrying out procurements in the most efficient way and at the lowest possible cost, without suffering any loss in quality.

Transperancy and equality

Any Russian or foreign company can become one of our suppliers under the terms of free competition and provided that they respect all our requirements related to safety, reliability and applicable legislation.

Maintaining low levels of inventory

Through the optimal organisation of production and procurement processes, we aim to minimise inventories while at the same placing the highest priority on safety and the continuity of the production process.

As a major consumer of goods and services, EVRAZ can create a positive impact in terms of reducing social and environmental risks in the supply chain. The Group strives to work with suppliers that are committed to the principles of sustainable development.

Therefore, in order to facilitate responsible business practices in all supplier agreements, we include clauses expounding the Group’s attitude towards human rights, including our policy of zero tolerance towards child labour, all forms of slavery and other issues, which are set forth in detail in the EVRAZ Code of Conduct. Under a typical contract, adherence to the EVRAZ Code of Conduct forms an integral part of contractual relationships with suppliers.

In order to confirm that suppliers adhere to all applicable environmental legislation, we regularly conduct environmental audits of suppliers, which are selected according to the criteria of purchase costs and importance.

See more in the “Supply chain” section of the Sustainability Report 2018.