Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 6% reduction in total air emissions (excluding GHG and CO) compared to 2019
• 12.3% reduction in SOx emissions compared to 2019
• 20% reduction in volatile organic compound emissions compared to 2019
• USD 154.7 million invested in environmental protection
• 12% increase in electricity generation at hydropower plants (78.2 TWh)
• 98.77% of electricity used by smelters generated by hydropower plants
• Construction of Taishet Aluminium Smelter, a low-carbon aluminium production plant
• Aluminium production with inert anode technology (85% lower carbon footprint than industry average)

Social Achievements

• Over USD 55 million allocated for social investments and charitable projects
• 80 employees bought apartments under a preferential mortgage program
• Salary increases for employees in several regions, aiming for wages 15% above regional average
• 14,715 proposals for business system development and technology improvement from employees
• Continued educational programs for engineers and technicians
• Zero fatalities among contractors

Governance Achievements

• Board approved a Supplier Standards and Quality Policy
• Introduced an automated supplier rating assessment for ESG compliance
• Started collecting health & safety data of contractors

Climate Goals & Targets

Environmental Challenges

• Ongoing COVID-19 pandemic

Mitigation Strategies

• Continued large-scale modernization programs despite the pandemic

Supply Chain Management

Responsible Procurement

• Supplier Standards and Quality Policy
• Automated supplier rating assessment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Sustainable Products & Innovation

• Aluminium produced with inert anode technology

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Human rights
• Sustainable supply chain
• Employees management and engagement
• Business ethics
• Local community engagement
• Corporate governance
• Health and safety
• Social and cultural diversity and equal opportunity
• Water and wastewater management
• Innovation management
• Safe waste management
• Environmental compliance and BAT
• Air quality
• Economic performance

Environmental Achievements

• 36% decrease in volatile organic compound emissions (compared to 2020)
• 97% of hazardous waste are reused and recycled
• 2,233 mt of СО2e emissions avoided due to the partial replacement of prior thermal power generation volumes
• 12.5% decrease in intensity of GHG emissions from electrolysis operations from 2.28 t of CO2e/t Al (compared to 2014 baseline)
• USD 243 mn environmental investments
• 4 HPPs were certified in accordance with the international ISO 14001 standard

Social Achievements

• USD 53 mn total social investments
• USD 2.3 mn allocated to purchase recreation vouchers for employees and their families in the Power segment
• 130 employees have purchased flat/house or refinanced a dwelling under preferential mortgage lending
• More than 100 professional retraining and development programmes are available for En+ employees
• 8% reduction in occupational illness cases compared to 2021
• 0.16 Lost time injury frequency rate (LTIFR) per 200,000 hours worked
• 86.3% of employees covered by collective bargaining agreements
• 10% increase in employee salaries

Governance Achievements

• Introduced three distance learning courses: Corporate ethical standards, Anti-corruption and conflict of interest, Sanctions risks and compliance
• A new IT resource has been developed and put into operation to automate the processes of generating, storing, processing and consolidating risk maps of En+ companies

Climate Goals & Targets

Environmental Challenges

• Climate-related risks such as excessive rainfall and floods, abnormal heat and cold, an increase in the average annual temperature, wildfires.
• Transition risks such as introduction of new regulatory requirements, risk of unstable production or increased greenhouse gas emissions due to the use of new materials or solutions.

Mitigation Strategies

• Implementation of a range of programs and strategies aimed at reducing climate impact by reducing direct and indirect GHG emissions, increasing their absorption, as well as improving energy efficiency in order to minimise the carbon footprint of products and increase the share of electricity generation from renewable sources.
• Optimisation of raw materials supplying, measures for capture CO₂, increasing the share of renewable sources, energy efficiency measures, conversion of transport to electricity or biofuel, recycling of aluminium.

Supply Chain Management

Supplier Audits: 40

Responsible Procurement

• Supplier Standards; Monitoring compliance with environmental and social responsibility requirements; Added health and safety mandatory requirements for contractors in supplementary agreements to contracts; Choice of local suppliers where possible; Compliance with supply chain performance indicators

Climate-Related Risks & Opportunities

Physical Risks

• Excessive rainfall and floods
• Abnormal heat and cold
• An increase in the average annual temperature
• Wildfires

Transition Risks

• Introduction of new regulatory requirements
• Risk of unstable production or increased greenhouse gas emissions due to the use of new materials or solutions

Opportunities

• Reduction in own fuel and electricity consumption
• Access to new and emerging markets
• Reducing the own need for heat generation capacities by reducing the heating season
• Increasing demand for products and services with a low carbon footprint
• Increasing the supply of electricity from low carbon sources through the development of low carbon energy
• Use of more efficient production and distribution processes

Reporting Standards

Frameworks Used: GRI Standards, SASB, UN Global Compact principles and UN SDGs, TCFD recommendations, Moscow Stock Exchange guidance, London Stock Exchange requirements, Directive 2014/95/EU, UK Companies, Partnerships and Groups (Accounts and Non-Financial Reporting) Regulations 2016 No.1245, Aluminium Carbon Footprint Technical Support Document, EU Taxonomy for Sustainable Finance, Streamlined Energy and Carbon Reporting (SECR) technical guidelines

Certifications: ISO 14001

Third-party Assurance: Independent verification of the sustainability chapter; Financial audit; ESG audit

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ALLOW (low-carbon aluminium)

Awards & Recognition

• Diploma in the category “High level of ESG transparency”; Sustainable Development Report 2021 recognised as the best at “XIX Annual Practical Conference Annual reports: the experience of leaders”; Sustainable Development Report 2021 took 3rd place at “Best Disclosure of information on Sustainable Development” of the XXV Annual Reports Competition 2022