Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic performance
• Environmental performance
• Health and safety
• Employee relations
• Community relations

Environmental Achievements

• Achieved ISO 14001 certification in March 2013.
• Implemented a Group-wide Environmental Management System (EMS).
• Reduced GHG emissions intensity from 696 tCO2e/10 Kt ore processed in 2012 to 642 in 2014.
• Completed five key environmental management projects (wastewater purification, mine site rehabilitation, waste oil combustion, water purification plant performance, and water treatment efficiency improvement).

Social Achievements

• Maintained competitive salaries exceeding regional averages.
• Provided comprehensive social benefits package to employees.
• Invested US$5.3 million (2013) and US$4.9 million (2014) in community initiatives.
• Reduced employee turnover from 18.5% in 2013 to 11.4% in 2014.
• Implemented a new employee-led risk assessment program.

Governance Achievements

• Full compliance with the UK Code of Corporate Governance.
• Implemented a rigorous risk management process.
• Conducted regular training sessions on bribery and corruption.
• Adopted a Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Four fatalities across the Group and one at a contractor's site in 2013/14.
• 18 non-fatal accidents in 2013/14.
• Increased scope of underground mining in complex geotechnical conditions.
• Safety rule violations during blasting and electrical operations.

Mitigation Strategies

• Rigorous investigations into accidents and fatalities.
• Implementation of remedial actions to prevent future accidents.
• Increased training, hazard visualization, and use of safety videos.
• Implementation of new safety measures and actions to enhance the OHSMS.
• External OHSMS audit by Bureau Veritas.
• Appointment of new personnel to oversee health and safety.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with applicable laws and regulations by suppliers.
• Use of large, globally-recognized manufacturers for capital expenditure.
• Engagement of local and regional suppliers wherever possible.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions disrupting operations

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 (In Accordance – Core), Mining and Metals Supplement

Certifications: ISO 14001

Third-party Assurance: Bureau Veritas (for ISO 14001 and OHSMS)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Mining Excellence Award (MINEX Russia 2013 and 2014)
• Best Socially Responsible Company of the Year ('Paryz' competition, Kazakhstan)
• Sixth place in 'Top-10 Best Corporate Communications and Relations in Russia' (TOP-COMM 2014)
• First Prize in Magadan Regional Stage of 'High social efficiency' contest

Environmental Metrics

ESG Focus Areas

• Health and safety
• Environment
• Employees
• Communities
• Economic performance
• Governance

Environmental Achievements

• Invested US$5.1 million in environmental protection (36% on water resources, 54% on land reclamation, 9% on air emission reduction)
• Achieved excellent compliance record with environmental laws and regulations, receiving no significant fines or sanctions.
• Slightly decreased GHG emissions.
• Decreased energy intensity by applying energy efficiency strategy.
• Completed ESIA at Kyzyl project.

Social Achievements

• Reduced employee turnover by 28%, from 11.4% to 8.3%
• Invested US$3.6 million in social and support programs, including health, education, infrastructure, sports, and cultural activities.
• Developed 21 community cooperation agreements.
• Improved employee job satisfaction (JDI of 72%, up from 65% in 2013).
• 'Healthy Environment' program ranked in top 5 social projects by People Investor.

Governance Achievements

• Established a dedicated Safety and Sustainability Committee.
• Launched a three-stage external audit of Health & Safety Management System.
• Increased focus on safety KPIs within senior management remuneration following fatalities.

Climate Goals & Targets

Environmental Challenges

• Six fatalities occurred during the year (five underground, one road accident).
• Increased Lost Time Injury Frequency Rate (LTIFR).

Mitigation Strategies

• Conducted investigations to determine causes of fatalities and implemented corrective measures.
• Launched pilot projects to test a more protective underground development system.
• Accelerated transition from drift-and-fill mining to sublevel open stoping with backfill at Mayskoye.
• Increased weighting of safety KPIs in senior management remuneration.
• Implemented a three-stage external audit of the OHSMS.

Supply Chain Management

Supplier Audits: Developing a new supplier assessment program for environmental compliance and best practice in 2016.

Responsible Procurement

• Insist on compliance with all applicable laws and regulations.
• Require relevant legal and financial documentation from suppliers.
• Conduct site visits for smaller suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions disrupting operations.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001:2001

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best social partner award from the Magadan government.
• Inclusion in FTSE4Good and Euronext Vigeo 70 Emerging Markets indices.
• Attractive Employer Award.

Environmental Metrics

ESG Focus Areas

• Protecting the environment
• Valuing our employees
• Ensuring their health and safety
• Supporting local communities
• Creating economic value

Environmental Achievements

• Maintained a long track record of zero environmental incidents
• Became signatories to the International Cyanide Management Code
• Included biodiversity conservation and restoration in our Environmental Management System (EMS) and Corporate Environmental Policy
• Reduced GHG emissions intensity at mature mines by 5%
• Decreased energy intensity of ore mining and processing by 6% Group-wide.

Social Achievements

• Invested more than US$5 million in local communities and constructed or upgraded over 50 community facilities
• Decreased staff turnover rate from 8.3% to 5.5%
• Invested US$866 thousand in professional training, with 82% of employees receiving development training
• Upgraded social benefits package
• Signed collective bargaining agreements at new operations

Governance Achievements

• Adopted new Human Rights Policy and Carbon Management Policy
• Included in STOXX ESG Leaders index and reaffirmed as a FTSE4Good and Euronext Vigeo member
• Reaffirmed ISO 14001 and OHSAS 18001 certifications

Climate Goals & Targets

Environmental Challenges

• Workplace accidents resulting in four fatalities
• Potential harm to local communities from operations
• Challenges in managing risks associated with underground mining in challenging geomechanical conditions
• Managing water usage and discharge in accordance with local legislation and target indicators
• Managing waste materials and minimizing environmental impact

Mitigation Strategies

• Introduced a positioning system to improve safety in underground operations
• Implemented major improvements in risk management procedures
• Continued to improve working and living conditions for employees
• Implemented energy saving initiatives
• Developed systems and procedures to maximize recycling and minimize waste to landfill
• Implemented a Critical Risks Management (CRM) system
• Increased focus on safety KPIs within senior management remuneration

Supply Chain Management

Supplier Audits: 3,744 companies audited in 2016

Responsible Procurement

• Compliance with all applicable laws and regulations, EMS, and requirements around packaging, noise, pollution and emergency preparedness
• Use of e-procurement system
• Audits to ensure ethical suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions disrupting operations

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 13 (Climate action)

Polymetal's business strategy is aligned with the SDGs through initiatives such as water efficiency programs, community investment, and carbon management policy.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Reaffirmed membership in FTSE4Good
• Included in STOXX ESG Leaders
• Various awards for employees and projects

Environmental Metrics

ESG Focus Areas

• Improving health and safety for our employees and contractors
• Continuously upgrading our technologies and approach to environmental protection
• Maintaining positive working relationships with local government, NGOs and the communities where we operate
• Enhancing transparency in our communications with suppliers, contractors and partners
• Attracting and retaining more high-quality people, creating an even better place to work
• Further developing water and energy efficiency programmes

Environmental Achievements

• Updated our Environmental Management System in compliance with updated version of ISO 14001:2015
• Developed our Climate Strategy 2020 and carbon management programmes
• Implemented Energy Management System designed in compliance with ISO
• Developed Mine Closure Standard and Tailing Management System with implementation in 2018
• Reduced energy used in ore processing by 0.4%
• Recycled 22% of total waste generated

Social Achievements

• Completed implementing Critical Risks Management System, safeguarding employee well-being
• Continued Group recertification of safety system in compliance with OHSAS 18001
• Marginally decreased staff turnover rate from 5.5% to 5.4%
• Developed new training programmes, procedures and courses; invested US$ 1,474 thousand in professional training
• Extended collective bargaining agreement at Voro
• Increased budget for employee financial aid in 2017 twofold
• Organised and held inaugural annual meetings with local residents in our new regions of operation (Armenia and Yakutia)
• Signed four additional socio-economic community agreements in three new regions of operation
• Increased corporate volunteering, with 54% of personnel willing to participate in charity events
• Implemented our Community Engagement Standards at all our operations, and updated our Social investments and Donations Policy

Governance Achievements

• Conducted comprehensive materiality assessment together with our stakeholders
• Prepared first report for ESAP progress at Kyzyl for EBRD in compliance with IFC requirements
• Intensified our anti-corruption training, increasing total number of people trained and number of seminars

Climate Goals & Targets

Environmental Challenges

• Two fatalities in 2017
• Environmental risks including technological failures, natural events, and regulatory changes
• Safety risks related to falling rock, road transportation accidents, and falls
• Social risks related to community relations and supply chain disruptions
• Economic risks related to supplier delays and production issues

Mitigation Strategies

• Implementation of Critical Risks Management System
• Updated EMS to ISO 14001:2015
• Development of Climate Strategy 2020 and carbon management programmes
• Implementation of Energy Management System
• Development of Mine Closure Standard and Tailing Management System
• Expanded measures to respond to social and economic risks
• Review of internal safety guidelines and procedures

Supply Chain Management

Supplier Audits: Over 4,500 potential contractors audited

Responsible Procurement

• Long-term partnerships
• Open tender process
• Supplier scorecards
• Compliance with corporate governance principles and anti-corruption policies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2006 (all production sites), OHSAS 18001

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 13 (Climate action)

Polymetal's business strategy is aligned with the SDGs through decent work, economic growth, tax payments, infrastructure development, and climate action initiatives.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Technology Award at the Russian Mining Excellence Awards at the MINEX Russia 2017 Forum
• Shortlisted for Best ESG Communications at the IR Magazine Awards – Europe 2017
• Ranked first among environmentally responsible metals and mining companies in Russia by WWF and the UNDP

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1 and Scope 2 GHG emissions intensity by 4% in 2020
• Launched a 1 MW solar power plant at Svetloye mine in 2018
• Implemented Climate Management System at all sites in 2019
• Reduced fresh water consumption intensity by 43% compared with 2018 (171 cubic meters of fresh water per thousand tonnes of ore processed in 2020)

Social Achievements

• Not disclosed

Governance Achievements

• Established Board-level procedures to assess and manage climate and financial risks
• Included ESG KPIs in remuneration packages for senior management
• Developed a Green Financing Framework in 2020 and raised $280 million in green and sustainability-linked loans

Climate Goals & Targets

Environmental Challenges

• Climate change poses a material risk to operations, particularly in permafrost regions
• Transition to a low-carbon economy brings political, legal, economic, and technological changes (transitional risks)
• Increased frequency and severity of extreme weather events (physical risks)
• Thawing permafrost impacting infrastructure
• Potential water stress in some regions

Mitigation Strategies

• Investing $1,100 million in green projects by 2030
• Implementing renewable energy projects (solar and wind)
• Connecting remote mines to grid electricity
• Electrifying mobile fleet
• Improving energy efficiency
• Developing preventative measures for permafrost thawing and extreme weather events
• Minimising fresh water withdrawal through recycling and reuse
• Implementing the Global Industry Standard on Tailings Management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Engaging with key consumables suppliers to obtain carbon data for Scope 3 reporting

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Permafrost thawing
• Floods
• Droughts
• Changes in precipitation patterns

Transition Risks

• Carbon regulations (cross-border tax, national quotas)
• Increased costs and reduced accessibility of fossil fuels

Opportunities

• Development of renewable energy sources
• Energy efficiency improvements
• Low-carbon technologies (hydrogen energy, fuel cells)

Reporting Standards

Frameworks Used: TCFD, CDP, GRI, SASB

Certifications: ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 13 (Climate Action)

Reducing GHG emissions and building operational resilience to climate change

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Carbon emissions reduction
• Sustainable waste management
• Sustainable water management
• Renewable energy
• Clean transportation

Environmental Achievements

• Reduced GHG emissions through various initiatives (quantified in the report for specific projects)
• Increased share of renewable energy usage (3% in 2022)
• Waste volume reduction through dry stacking (18% at Omolon and Nezhda in 2022)
• Improved water recycling and reuse (87% at Voro in 2022)

Social Achievements

• Implementation of joint inclusion project to improve opportunities for young people and women
• Management remuneration linked to ESG KPIs

Governance Achievements

• Sustainability risks embedded in corporate Risk Management System
• ESG performance rating of 69/100 (advanced), rank in sector: 2/43

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, SASB, TCFD, CDP, International Integrated Reporting Framework

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• S&P Global Bronze Class Sustainability Award

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Water usage
• Reforestation
• Social investment
• Health and safety

Environmental Achievements

• Decreased fresh water intensity for ore processing by 53% compared with 2019, to 125 m³/1,000 t (2022: 49%)
• Planted 430 thousand saplings on almost 200 hectares of land in Russia and implemented a voluntary pilot project to plant a new forest near Varvara site in Kazakhstan.
• 93% of on-site water consumption is via a closed cycle of treated wastewater

Social Achievements

• No fatal accidents among employees and contractors in 2023. Lost time injury frequency rate (LTIFR) decreased by 30% year-on-year to 0.07.
• Social investments amounted to US$ 17.6 million in 2023, including US$ 7.3 million in Kazakhstan, targeted at education, local infrastructure, sports, and culture.

Governance Achievements

• Successfully completed re-domiciliation to AIFC (Astana International Financial Centre) in Kazakhstan and resumed trading on AIX (Astana International Exchange).

Climate Goals & Targets

Environmental Challenges

• Persistent geopolitical headwinds, including sanctions and counter-sanctions.
• Significant tightening of concentrate exports regulations in Russia led to material accumulation of concentrates in sea ports.
• Legislative changes in the energy market of Kazakhstan resulted in the inability to purchase green electricity from the grid.
• Higher labour market competition and increased demand for mining experts.

Mitigation Strategies

• Sale of Russian assets to mitigate legal, financial, and operational risks.
• Focusing efforts on designing its own solar power plants with a total capacity of up to 40 MW at Varvara and Kyzyl in Kazakhstan.
• Offering employees competitive salaries and professional development opportunities.
• Adopting a Diversity and Inclusion Programme.

Supply Chain Management

Climate-Related Risks & Opportunities