Hong Kong, April 30, 2023 – Hong Kong Exchange (HKEX) published 2022 Sustainability Report of the International Public Joint-Stock Company UC RUSAL. As one of the first Russian companies who joined the United Nations' Global Compact (2002), RUSAL publishes its non-financial reporting as of 2004, doing it not only in line with the UN GC principles, but also under the Global Reporting Initiative (GRI) standards over the last 16 years (since 2007), while increasing the number of international and industrial reporting standards and the quality and depth of the data disclosure constantly.

Evgeniy Nikitin, CEO RUSAL, says: 'Events of the 2022 resulted in a comprehensive review of the ESG-agenda not only in Russia, but worldwide, bringing the primary importance back to social aspects of sustainability. RUSAL has foreseen many of the new challenges and addressed those efficiently and assertively based on its business values of Openness, Ambition, Solicitude, Initiative and Synergy. It is this approach that helps us appreciate that our work is more than just business.'

New values of RUSAL composing OASIS acronym as reflected in a new Corporate Ethics Code adopted in 2022, served a solid framework for the latest report. Taking into account that immediately on the eve of its publication, April 27, the Board of the IJSC UC RUSAL has adopted the Sustainability Strategy till 2035, as of this year, non-financial reporting will be covering sustainability data and performance through the lens of 12 priority ESG-transformation projects.

Sustainable Product. Sustainable Consumption (Environmental aspects of ESG)

• One of the top priority goals of RUSAL's ESG-transformation as reflected in the corporate Environmental Policy revised in 2022, tackles air quality normalcy. In the reported year, RUSAL prepared and published first in Russia voluntary report about its contribution to the delivery of 'Clean Air' Federal Project in the cities of Bratsk, Krasnoyarsk, and Novokuznetsk, where the company continues the program of aluminium smelters' environmental modernization by embedding the pre-baked anode technology. Thanks to these efforts, while maintaining the same production output, electricity consumption will go down by 16.5%, fluoride emissions will drop by 73%, and benz(a)piren emissions will be fully eliminated.
• Low carbon footprint of the aluminium has been traditionally a key competitive advantage of RUSAL: in 2022, this indicator for ALLOW, 'green' aluminium brand of the company, was 2.3 tonnes of CO2 equivalent per 1 tonne of metal (Scopes 1 and 2). The demand for such product supplied by RUSAL grew up by 25.6%, sales volume reached a recordable 1.2 million tonnes, so that every third tonne of aluminium supplied by RUSAL to a global market classifies as low carbon one. In line with new Climate Strategy with a 2050 Outlook (a Net Zero horizon) adopted in the end of 2022, RUSAL aims at decreasing its direct GHG emissions per tonne of aluminium by 30% (excluding climate neutralization effects) or by 57% (including such effects) by 2035.
• 2030 Post-Production Waste Strategy also adopted in 2022, is based on the core principle of the circular economy – 'zero waste to landfill'. In the reported year, total volume of post-production waste generated (excluding overburden rocks) amounted 13.7 million tonnes, which is 12.2% less than the previous year. Almost 80% of non-hazardous wastes generated by RUSAL's aluminium smelters are brought back to cycle: via reuse or recycling either inside or outside, in other industrial sectors. In 2022, RUSAL initiated an inventory and assessment of the aluminium life-cycle impacts to be further reflected publicly in Environmental Product Declarations (EPDs).
• 2030 Post-Production Waste Strategy also adopted in 2022, is based on the core principle of the circular economy – 'zero waste to landfill'. In the reported year, total volume of post-production waste generated (excluding overburden rocks) amounted 13.7 million tonnes, which is 12.2% less than the previous year. Almost 80% of non-hazardous wastes generated by RUSAL's aluminium smelters are brought back to cycle: via reuse or recycling either inside or outside, in other industrial sectors. In 2022, RUSAL initiated an inventory and assessment of the aluminium life-cycle impacts to be further reflected publicly in Environmental Product Declarations (EPDs).
• Another priority ESG-transformation goal of RUSAL is responsible water management and circular water in key operational processes. In 2022, the company continued embedding best practices to ensure lower water use and circular water at its production sites, including in the hot, dry, water-stressed regions like e.g. ARMENAL site in Armenia.
• In 2022, the Board of the company adopted Biodiversity Conservation Policy covering entire supply chain of RUSAL. The company assesses biodiversity effects of its own operations on a regular basis and monitors such effects covering multiple flora and fauna species, including those threatened and endangered, evaluating the level of environmental pollution and sustainability in the areas of RUSAL responsibility both in Russia and abroad.

Sustainable Cities. Sustainable Workplace and Living (Social aspects of ESG)

• The key goal of RUSAL's Sustainability Strategy is ensuring safe workplace and so-called 'future workplace' for the employees. 2022 was declared a Safety Year in RUSAL, which resulted in half the number of fatalities among the company and key supplier employees. In the reported year, 2030 Occupational Health and Safety Strategy is adopted with the purpose to halve the lost time incidents' frequency rate (vs. 2021), ensure zero fatalities, Class A industrial safety incidents and fires by 2030.
• In 2022, RUSAL continued implementation of its talent and digital strategies designed, among other purposes, to attract high potential youth majoring in Non-Ferrous Metals, Medicine and Teaching via professional and higher education, as being of special demand in the areas of the company's responsibility. 13.4% of the company employees are aged before 30 in the reported year. In 2022, RUSAL entered a partnership with the federal educational project 'Specialist Degree': the company's production sites form educational clusters along with professional colleges of the Urals, Yenisei and East Siberia territories (275 students targeted). On top of the Russian scholarship program implemented on par with En+ Group (179 scholars), the international scholarship program has been also continued to offer higher education to students from the Republic of Guinea and from Jamaica (90 scholars).
• In the reported year, RUSAL embedded its own social impact assessment system via the 'RUSAL Cities Sustainability Index' – an analytic platform indicative of the appeal of 21 municipalities where the company operates to today's and tomorrow's company employees and their families, helpful to define the top priority areas for social investment and assess their performance in the mid- and long-term.

Sustainable Supply Chain (Governance aspects of ESG)

• As part of its Sustainability Strategy, the company aims at building a sustainable and agile system of sourcing the raw materials, finished goods, and services with suppliers meeting the advanced ESG standards. In 2022, RUSAL held the ESG-maturity assessment of core suppliers of the key non-alumina raw materials. The conclusions concerning top risks made as a result of this research, served a basis for the Responsible Sourcing Policy adopted by the company's Board in the end of 2022, the one that regulates, among other, key requirements to raw materials, finished goods and services suppliers and to the processes of their selection with a consideration of their environmental, social and corporate governance.
• During the reported year, the company has actualized more than 2/3 of corporate codes, policies and regulations, as well as underlying processes covering ESG-transformation, including through stakeholder engagement. Thanks to these efforts, RUSAL managed to reconfirm its strong position in a respectful global supplier sustainability rating – EcoVadis. The company got an integral score compatible with 'silver' level that associates RUSAL with a pool of top-8% of the global suppliers displaying best ESG practices.
• One of the most advanced practices designed to further upgrade the environmental, social and corporate governance is the RUSAL's Public Expert Council on Sustainability established in the end of 2022. The Council is composed by the NGO sector leaders, environmental, social development and civil rights experts and activists from Achinsk, Bratsk, Irkutsk, Krasnoyarsk, Novokuznetsk, Novosibirsk, and Yekaterinburg, as well as by the representatives of the federal and regional authorities and the Federal Public Chamber. The Council holds its meetings on a quarterly basis and offers an opportunity for open discussion and opinion exchange between the stakeholders in regard to the company's Sustainability Strategy, its contribution to the delivery of the national projects in the areas of environment protection and social and economic development of the areas of RUSAL responsibility.