Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human rights
• Anti-corruption
• Contribution to the professional and cultural development of employees
• Development of talents in the Company’s regions of operation
• Incentives and motivation
• Health and safety
• Social and working standards at the Company’s production sites
• Environment
• Development of local communities
• Financial and economic efficiency
• Corporate governance and business ethics
• Compliance with the applicable legislation, including environmental, labour and tax laws
• Product quality management

Environmental Achievements

• Air pollutant emissions reduced by 4.6%
• Wastewater volume treated to standard quality at treatment facilities up by 16.7%
• First stage of Talnakh Concentrator’s tailings pit commissioned
• Over 316,000 Siberian sturgeon fingerlings and 235,000 salmon fingerlings released into the Yenisey River and the Umba River
• Transition of MMC Norilsk Nickel’s environmental management system to ISO 14001:2015 completed
• Number of fatal accidents reduced from 13 in 2016 to 7 in 2017

Social Achievements

• Employee churn rate reduced to 10.3%
• Number of trained employees up by 36%
• All internship positions at production facilities filled
• Overhauls of 31 social facilities completed, 19 relocatable buildings purchased
• High-speed internet brought to Norilsk

Governance Achievements

• A number of corporate policies (anti-corruption, human rights, local community relations, working conditions, etc.) approved
• Group company fines reduced by 11%
• Antitrust compliance system rolled out

Climate Goals & Targets

Environmental Challenges

• Workplace injury risk
• Information security risk
• Technical and production risk
• Compliance risk
• Risks related to changes in legislation and law enforcement practices
• Risk of power blackouts at production and social facilities in the Norilsk Industrial District (NID)
• Social risk
• Risk of insufficient water resources
• Soil thawing risk

Mitigation Strategies

• Consistent risk management to reduce and maintain exposure at or below levels approved by the Board of Directors
• Implementation and improvement of the corporate risk management framework (CRMF)

Supply Chain Management

Responsible Procurement

• Development of tender-based procurement
• Corruption prevention
• Product quality
• Terms of delivery
• Contract support

Climate-Related Risks & Opportunities

Physical Risks

• Soil thawing risk

Transition Risks

• Risks related to changes in legislation and law enforcement practices

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Comprehensive option), UN Global Compact

Certifications: ISO 14001:2004/2015, OHSAS 18001:2007, ISO 9001:2015

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 14
• 15
• 16
• 17

Awards & Recognition

• InfoSecurity Russia 2017 award for Global Initiatives in Industrial IT Security
• Certificate of honour from V. I. Vernadsky Non-governmental Ecological Foundation and Russian Environmental Academy
• Mark of Environmental Responsibility
• Diploma of honour of 2017 V. I. Vernadsky National Environmental Award
• Letter of recognition from the Russian President
• Certificate of honour from the Federation Council
• Active Environmental Policy award
• Grand prize of 2016 Leaders of Russian Business
• Russia’s Top-100 Employers by HeadHunter
• Russia’s Top Employers 2017 by The White Square Journal
• Graduate Awards 2017
• HR Brand award by HeadHunter
• 2016 Leaders of Russian Business
• 2017 Leaders of Corporate Charity
• Grand prize of the Competitive Procurement Leaders Awards
• Commemorative medal and certificate of merit from the Russian President
• Transportation Safety in Russia award
• Diploma of Wings of Russia National Aviation Award
• Eventiada IPRA GWA 2017
• Made in Russia award
• Sports and Russia award
• Sport City 2.0 forum award
• Digital Communications AWARDS 2017
• Moscow International Corporate Video Festival award
• 20th Annual Report Competition awards
• Vision Awards 2016/2017
• MarCom international public reporting award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Social Responsibility
• Governance
• Human Rights
• Sustainable Development Goals

Environmental Achievements

• Reduced air pollutant emissions by 16% year-on-year.
• Reduced energy consumption by 19% year-on-year.
• 87.2% of total used water recycled and reused.
• 97% of non-hazardous class 5 waste recycled in-house.
• Investments of RUB 1.5 billion in the Sulphur Programme.
• Tenfold reduction of sulphur dioxide emissions by 2025 (compared to 2015).

Social Achievements

• Increased reimbursements for vacation travel costs, health resort treatments, and healthcare.
• Average monthly salary increased to RUB 118,800.
• Maintained injury rates below the average among global mining peers.
• RUB 9.6 billion spent on social programs and employee benefits.
• Named Russia’s Best Employer by Forbes.

Governance Achievements

• External assessment of Board of Directors performance.
• 99.77% attendance rate at Board meetings.
• Implementation of Shareholder’s Personal Account in Registrar’s mobile app.
• Established a senior team to develop climate change scenarios.

Climate Goals & Targets

Environmental Challenges

• Toughened environmental requirements.
• Workplace injury risk.
• Information security risk.
• Risk of power blackouts in the Norilsk Industrial District.
• Compliance risk.
• Social risk.
• Risk of insufficient water resources.
• Soil thawing risk.
• Climate change impacts (physical and transition risks).

Mitigation Strategies

• Implementation of an environmental action plan.
• Continuous monitoring of compliance with health and safety requirements.
• Implementation of MMC Norilsk Nickel’s Information Security Policy.
• Upgrading and maintaining generating and mining assets.
• Ensuring compliance with applicable laws.
• Active interaction with regional and local authorities.
• Building a closed water circuit.
• Regular monitoring of foundation beds for buildings and structures.
• Development of a climate change program including risk assessment and opportunity identification.

Supply Chain Management

Responsible Procurement

• ESG clause in standard agreements.
• Use of category procurement policies.
• Emphasis on local suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Soil thawing
• Drought

Transition Risks

• Toughening of environmental regulations
• Market shifts

Opportunities

• Demand for metals needed to build a low-carbon economy

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Comprehensive option), UN Global Compact, TCFD

Certifications: ISO 14001:2015, ISO 9001:2015, OHSAS 18001:2007 / ISO 45001:2018

UN Sustainable Development Goals

• Goal 3: Good health and well-being
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

The report details how various initiatives contribute to these goals.

Awards & Recognition

• Forbes Russia’s Best Employer
• HeadHunter top 100 best employers in Russia

Environmental Metrics

ESG Focus Areas

• Sustainable Development Strategy
• Climate change
• Water stewardship
• Support of local communities and indigenous people
• Industrial safety
• Environmental risk management
• Biodiversity restoration
• Tailings management
• Remediation of historically polluted areas

Environmental Achievements

• Reduced sulphur dioxide emissions by 71% in Nikel and Zapolyarny and by 58% in the Russia–Norway border area in 2020 (from a 2015 baseline)
• More than 90% of spilled fuel was collected following the May 2020 diesel fuel spill
• GHG emissions (Scope 1 and 2) – the lowest level among global peers
• 86% of all water used by the Company was recycled or reused in 2020

Social Achievements

• Spent about RUB 12 billion (USD 157 million) to fight COVID-19, supporting employees, purchasing PPE, and providing benefits to SMEs
• Implemented a comprehensive outplacement program for employees affected by the smelting shop shutdown in Nikel, with 72% choosing to continue working at the Company
• Signed an agreement with organizations representing indigenous peoples of the North to implement a RUB 2 billion comprehensive plan to support their development
• Launched the Smart City project, improving quality of life and urban management systems in northern cities

Governance Achievements

• Set up the Risk Committee led by the President, introduced the position of Senior Vice President for Sustainable Development, and established the Ecology Department
• Transitioned to a division-based structure, increasing investment limits at the divisional level
• Improved ESG score from international rating agencies; S&P Global ESG score up by 11 points to 44 (33 in 2019), and FTSE4Good ESG score of 4.0 (3.0 in 2019)

Climate Goals & Targets

Environmental Challenges

• Major environmental incident related to the leak of diesel fuel in the Norilsk Industrial District in May 2020
• COVID-19 pandemic leading to global economic downturn and decreased demand for products
• Supply chain disruptions

Mitigation Strategies

• Launched a comprehensive cleanup operation, with its main phase completed by the end of 2020
• Established special task forces to support uninterrupted operation of production, transport, and sales assets during the pandemic
• Provided support to local authorities, healthcare authorities, SMEs, and vulnerable groups
• Combined isolated environmental initiatives into a comprehensive, group-wide environmental strategy
• Invested USD 5.5 billion for environmental program over the next ten years
• Developed alternative sourcing strategies

Supply Chain Management

Responsible Procurement

• ISO 9001:2015 and ISO 14001:2016 certifications
• Master Agreements with suppliers outlining requirements for human rights, labor relations, environmental protection, anti-corruption, and UN Global Compact compliance
• Focus on local sourcing (93% local content in 2020)

Climate-Related Risks & Opportunities

Physical Risks

• Insufficient water resources
• Permafrost thawing

Opportunities

• Demand for metals required in a future low-carbon economy (nickel in EV batteries, copper in EV charging infrastructure)

Reporting Standards

Frameworks Used: GRI, CDP, GHGP

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO/IEC 27001:2013

Third-party Assurance: Bureau Veritas Certification, British Standards Institution, SGS

Awards & Recognition

• Electronic Document Management Innovation of the Year at the CFO Russia contest
• Gold award in the Business Transformation category at SAP Quality Awards—2019 for EMEA
• Gold and bronze awards at the Mine Digital contest

Environmental Metrics

ESG Focus Areas

• Climate change
• Air quality
• Water management
• Tailings and waste
• Land rehabilitation
• Biodiversity
• Occupational health and safety
• Social programs
• Human rights
• Indigenous communities
• Corporate governance
• Risk management
• Supply chain responsibility

Environmental Achievements

• Reduced air pollutant emissions by 16% (y-o-y)
• Reduced sulphur dioxide emissions by 90% at Kola Division compared to 2015
• Reduced GHG emission intensity by 10% (y-o-y)
• 47% of electricity consumed from renewable sources
• First batch of 5 kt of carbon-neutral nickel produced
• Significant progress in HPP-3 clean-up efforts

Social Achievements

• Launched the first corporate healthcare center in Norilsk
• Increased support for indigenous peoples of Taimyr by RUB 100 million
• Signed an updated collective bargaining agreement for 2022–2024
• Average monthly salary increased by 10.1% (y-o-y)

Governance Achievements

• Established a new role of Senior Vice President for Sustainable Development
• Migrated to a division-based governance structure
• Approved the Environmental and Climate Change Strategy through 2031
• Developed a roadmap to comply with TCFD recommendations

Climate Goals & Targets

Environmental Challenges

• HPP-3 incident (diesel fuel spill)
• Permafrost thawing due to climate change
• Maintaining low GHG emissions while increasing production
• Managing risks associated with climate change

Mitigation Strategies

• Comprehensive HPP-3 clean-up and remediation efforts
• Development of a system to monitor foundations built on permafrost soils
• Implementation of Sulphur Programme 2.0
• Large-scale investment programme to upgrade energy infrastructure
• Assessment of physical climate change risks

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct and Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Permafrost thawing
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Increased demand for metals used in green technologies

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, UN Global Compact, SASB Metals & Mining Sustainability Accounting Standard, TCFD

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, ISO/IEC 27001:2013

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Details of alignment with SDGs provided in report

Sustainable Products & Innovation

• Carbon-neutral nickel

Environmental Metrics

ESG Focus Areas

• Human Rights

Environmental Achievements

• 90% reduction of the Kola Division's annual SO2 emissions as at the end of 2022 vs the 2015 base
• 30% reduction in SO2 emissions in Norilsk following the closure of Nickel Plant in 2016

Social Achievements

• Implementation of a brand new programme to improve occupational safety and reduce accidents
• Running the Corporate Healthcare project in its regions of operation to provide a full scope of healthcare services to employees and their families
• Russia's first ever process of obtaining free, prior, and informed consent of northern indigenous peoples (Tukhard residents)
• Allocation of RUB 412 mln in 2022 to help indigenous peoples (supporting trades and processing activities, enhancing housing, social and healthcare infrastructure in settlements)
• First comprehensive employee training course in human rights (over 150 trainees)
• Introduction of a supply chain due diligence management system to identify the risk of violating human rights and freedoms
• Drafting and implementing annual Stakeholder Engagement Plans
• Classification of human rights reports into a special category of complaints processed by the Corporate Trust Line, with improvements to the grievance mechanism ongoing
• Building a target model for the human rights due diligence and conducting a preliminary assessment of human rights impact

Governance Achievements

• Establishment of a human rights due diligence system
• Inclusion of health and safety indicators linked to FIFR in the annual team KPIs of the top management (with a relative weight of 30%)
• Implementation of incentives linked to the Company's human rights commitments and targets for managers and white-collar employees

Climate Goals & Targets

Environmental Challenges

• Occupational health and safety risks
• Environmental damage caused by emergencies
• Strained social and labour relations
• Risk of adverse impacts on the rights of local and indigenous communities
• Failure to comply with the requirements put forward by leading ESG standards and associations

Mitigation Strategies

• Development of a comprehensive system of regulatory and procedural guidelines on environmental protection
• Implementation of environmental initiatives and the Environmental and Climate Change Strategy
• Regular social monitoring and dialogue with trade unions
• Implementation of corporate social programmes to encourage long-term employment
• Information and communication support in case of emergencies
• Development and implementation of regional social policy and programmes to improve living standards
• Collection of pre-emptive data on potential social tensions in the labour force
• Conducting due diligence of mineral feedstock suppliers

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Policy
• ESG compliance added to 1,313 contracts in 2022

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights (UNGPs), Initiative for Responsible Mining Assurance (IRMA), International Council on Mining and Metals (ICMM), Corporate Human Rights Benchmark (CHRB)

Certifications: ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Climate Change
• Occupational Health and Safety
• Human Capital Development
• Development of Local Communities
• Corporate Governance
• Responsible Business Conduct
• Innovative Development

Environmental Achievements

• Reduced air pollutant emissions from 2.1 mt in 2008 to 1.7 mt in 2023
• Shutdown of outdated Nickel Plant
• Completion of an upgrade and retrofit project for the tailings pipes at Nadezhda Metallurgical Plant
• Production of the first batch of carbon-neutral nickel
• Approval of projects to cut emissions and improve environmental conditions at Kola MMC's Monchegorsk site
• Start of operations of Stage 1 of new electrolysis cells at the nickel tankhouse of Kola MMC, which is designed to reduce emissions of sulphur dioxide and dust, cut down on metal losses, and improve the quality of products
• Launch of Sulphur Programme 2.0
• Great Norilsk Expedition and development of a comprehensive land rehabilitation programme following the CHP-3 accident in Norilsk

Social Achievements

• Launch of Your Home, a new housing initiative
• Launch of the Plant of Goodness corporate volunteering programme
• Development of a social support programme for employees facing redundancies following the smelting facility shutdown
• Establishment of Women in Mining Russia (WIM Russia)
• Opening of the world’s northernmost water park in Norilsk
• Completion of construction of two pre-school facilities in Norilsk (2020 and 2021)

Governance Achievements

• Election of a new Board of Directors, with the majority of seats for the first time ever taken by independent directors
• Approval of the Company’s Anti-Corruption Policy
• Approval of the Code of Conduct and Ethics for Members of the Board of Directors
• Joining the UN Global Compact
• Finalisation of the supply chain Due Diligence Management System and implementation of all the steps covered by the OECD Framework

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (2021), UNCTAD, TCFD, SASB Mining & Metals, Methodological recommendations of the Russian Ministry of Economic Development

Certifications: ISO 9001:2008, ISO 14001:2004

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• >40 awards received by Nornickel’s sustainability reports at various Russian and international contests since 2005