bribery matters) Risks related to non-compliance with applicable laws and regulations, including in the fields of corruption and bribery ▪ Yearly re-evaluations of risks of fraud and corruption across all assets ▪ Informing employees about ethical business conduct principles as defined in internal corporate documents ▪ Anti-corruption trainings for employees ▪ Inserting a framework clause on anti-corruption in contracts with business partners ▪ Operation of whistleblowing lines ▪ Inquiries of Direction of compliance with business procedures into suspicious transactions, activity, or circumstances on its own initiative or received signalss Product competition Risks related to excessive supply of steel products and slabs on the global market; increased market competition and low demand for construction products ▪ Developing and improving loyalty and customer focus programmes and initiatives ▪ Quality improvement initiatives Non-principal risks HR and employee risks Risks related to a lack of skills, a failure of succession planning, and reduced productivity due to labour unrest or poor job satisfaction ▪ Monitoring changes and compliance with applicable labour laws and regulations ▪ Implementing staff training and development programmes and initiatives ▪ Regular meetings with trade union representatives ▪ Introducing a grading system and remuneration management principles ▪ Implementing a human capital development programme ▪ Collaborations with universities and colleges to improve educational programmes ▪ Analysing the employee engagement level and how it can be improved Social and community risks Risks related to socio-economic instability in regions where the Group operates, deteriorations in relations with local communities and authorities, and loss of the Group’s “social licence” to operate ▪ Taking part in social projects in regions of operation ▪ Supporting social, infrastructural, sport, educational, and cultural programmes ▪ Stakeholder engagement and working together with cities and regional authorities ▪ Local urban infrastructure improvement Climate change risks Risks related to climate change and extreme weather events that could lead to business disruptions, shortage of resources, damage to the supply chain, equipment, and reputation ▪ Implementing air emission reduction programmes at plants ▪ Participating in developing greenhouse gas emission regulations in Russia ▪ Implementing energy efficiency projects and, as a result, reducing greenhouse gas emissions hand, are those that are not considered capable of seriously impacting the Group’s performance, future prospects, or reputation.