News and press releases

Metinvest participates in the UN Global Compact Initiative

One of the primary advantages of being a part to the Global Compact is the access to the international platform and resources, which can be used to develop a social welfare zone around the Company and build partnership with government and non-government organizations and civil societies around the world.

Accession of Metinvest to the UN Global Compact initiative means voluntary inclusion of the Global Compact principles into the development strategy and operations of the Company. The Ten Principles of the initiative in the areas of human rights, labor standards, the environment and anti-corruption have been globally recognized. Participation in the UN Global Compact initiative obligates the Company to inform the world community on achievements of the Company in these areas.

Support for the Global Compact is a consistent step on the way of the socially responsible development of the Company. This is not the first Metinvest’s initiative in the field of corporate social responsibility (CSR): the Company is successfully involved in the International CoMeth Project implementation supported by the European Commission. Among these, Metinvest is implementing large scale Kyoto Protocol Projects and renders support in the global environmental initiatives of the World Steel Association (WSA).

“Solution of local and global problems requires common efforts” – noted Igor Kirilyuk, the Corporate Communications Director of METINVEST HOLDING, LLC – “Metinvest has decided to join the UN Global Compact because it strives for further development of new culture of partnership with government and non-government organizations, and civil society within Ukraine and abroad.

In January 2010 Metinvest issued its First Corporate Social Responsibility Report developed in accordance with the GRI international standard. The Report describes significant events and activities of the Company in priority areas of socially responsible business development in 2008. The first message on achievement in the area of embracing, supporting and enacting the ten Principles of the UN Global Compact will be issued in 2011 within the frames of the Second Corporate Social Responsibility Report of Metinvest Group.

BriefingNote:

The UN Global Compact is the United Nations initiative intended to promote and develop the concept of socially responsible corporate citizenship around the world, aimed at joining the efforts to resolve the global problems of modern humanity. Having over a 10-year history, the Global Compact today joins together more than 7700 business participants from 130 countries.

The ten principles of the Global Compact initiative based on the Universal Declaration of Human Rights, the International Labor Organization Declaration on Fundamental Principles and Rights at Work, the Declaration on Environment and Development, United Nations Declaration against Corruption and Bribery declare commitments of the businesses as follows:

1. Businesses should support and respect the protection of internationally proclaimed human rights; and
2. Make sure that they are not complicit in human rights abuses.
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. The elimination of all forms of forced and compulsory labor;
5. The effective abolition of child labor; and
6. The elimination of discrimination in respect of employment and occupation;
7. Businesses are asked to support a precautionary approach to environmental challenges;
8. Undertake initiatives to promote greater environmental responsibility; and
9. Encourage the development and diffusion of environmentally friendly technologies.
10. Businesses should work against corruption in all its forms, including extortion and bribery.

The UN Global Compact is not a regulatory instrument, but rather a voluntary initiative that relies on public accountability, transparency and disclosure to complement regulation and to provide a space for innovation.

CoMeth The EU FP7 project CoMeth (Coal Mine methane – New Solutions for Use of CMM – reduction of GHG emissions) was launched in November 2008 in the framework of activity 6 Clean Coal Technologies energy theme. The overall objective of the project is to contribute to reducing greenhouse gas emissions caused by the uncontrolled release of coal mine methane to the atmosphere and to the identification of suitable, economically promising schemes for energetic utilisation of CMM. The CoMeth consortium brings together researchers from 6 countries (Germany, Poland, Russia, Ukraine, Kazakhstan and the United Kingdom) collaborating for a period of 3 years.

Metinvest is an international vertically-integrated mining and metals company. Production facilities of Metinvest allow the enterprises both to satisfy their own needs in raw materials, liquid steel and semi-finished products and to be a key supplier for many other Ukrainian and European companies, as well as Asian businesses.
The shareholders of Metinvest Group are SCM Group (75%) and Smart Holding (25%) that manage the company on the partnership principle.The merger of mining and metals assets of SCM and Smart Holding within Metinvest began in 2007 and will be completed in 2009.

Metinvest Holding is the managing company of Metinvest Group.