Russia-based steel manufacturer and miner Severstal has signed a memorandum of understanding (MoU) with Schneider Electric and Air Liquide to accelerate sustainability and environmental efforts.

The ‘Climate Memorandum' commits members to cut scope three carbon emissions across their supply chains.

The memorandum contains five commitments: to implement the climate agenda in the practice of corporate governance; to assess greenhouse gas emissions and set targets for reduction; to manage climate risks; develop and implement low-carbon technologies; and interact in a climate responsible way with customers.

Alexander Shevelev, chief executive officer of Severstal, said agreements between manufacturers and suppliers of goods to cut carbon are becoming "common practice in the global business community."

"I am convinced that only environmentally responsible companies and organizations that truly share our concern about climate change will be able to demonstrate in practice the principles set out in the Memorandum," Shevelev said.

John Vanderplaetse, president in Russia of Schneider Electric, described climate change as the "central issue of our time," and businesses must play a key role in decarbonisation.

"Only by joining forces can we accelerate the transition to a cleaner and greener future and avoid the worst scenarios of global warming."