Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental management
• Employee relations
• Community relations

Environmental Achievements

• Implemented an Environmental and Industrial Management System
• Invested US$3.02 million in environmental management program in 2010 (more than three times the 2009 investment)
• Reduced waste through installation of waste incineration units at Varvara
• Implemented state-of-the-art ‘POX’ system for gold extraction at Albazino-Amursk, reducing waste and operating costs and recovering heat energy

Social Achievements

• Committed around US$4 million to social programs in 2010
• Improved health and safety systems, employee training, working conditions, and social programs
• Implemented a Company-wide Industrial and Occupational Safety Management System
• Developed a comprehensive employee training program
• Implemented an employee appraisal system to measure employee development and career pathways

Governance Achievements

• Corporate governance procedures based on international best practice and recommendations of the Corporate Governance Code
• Board of Directors includes five independent non-executive directors
• Approved Company’s Dividend Policy Regulations, Regulations on Disclosure of Insider Information, and Regulations on the Use of Confidential Information

Climate Goals & Targets

Environmental Challenges

• Six fatalities in 2010 due to employee non-compliance with workplace safety rules

Mitigation Strategies

• Major overhaul of industrial safety policies and procedures
• Overhauled industrial and occupational safety services in subsidiaries
• Adopted clearer procedures to promote and ensure industrial safety
• Created a mechanism (including financial liability and incentives) to encourage safe behavior
• Adopted more advanced technologies to reduce employee exposure to hazards
• Trained managers in integrated quality, environment, and safety management systems

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

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
• 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
• Invested US$11.7 million in social support and territorial development programmes; provided assistance to over 100 social care institutions and facilities

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
• Seven minor cases of non-compliance with environmental regulations at two production sites (Komar and Kyzyl)
• Increased waste intensity associated with the start of operations at Kyzyl

Mitigation Strategies

• Implementation of Critical Risks Management System
• Implementation of corrective measures after environmental inspections
• Development of corporate TSF management system
• Review of internal safety guidelines and procedures
• Conversion of all lighting to LED, and equipping diesel-powered generators with a heat recovery system
• Development of Climate Management System

Supply Chain Management

Supplier Audits: Over 4,500 potential contractors audited

Responsible Procurement

• Compliance with applicable laws and regulations
• Integration of environmental considerations into procurement practices
• Long-term partnerships with suppliers selected through open tenders
• Use of scorecards for supplier assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2006 (all production sites), OHSAS 18001 (Occupational Health and Safety Management System)

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

The report highlights Polymetal's contributions to these goals through various 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

• Safety
• Environmental Stewardship
• Employee Well-being
• Community Engagement
• Ethical Conduct
• Transparency
• Renewable Energy
• Supply Chain Responsibility
• Human Rights
• Climate Change

Environmental Achievements

• Reduced GHG emissions intensity by 7%
• 83% of water recycled
• 27% of waste reused (excluding Kyzyl)
• Implemented dry stack tailings management system at Amursk POX, reducing risk of dam failure
• Launched pilot solar and wind energy projects

Social Achievements

• Reduced Lost Time Injury Frequency Rate (LTIFR) by 40% among employees
• 5.8% employee turnover
• $10 million community investments
• Appointed first female mine managing director
• 96% of employees are local nationals
• 178 anti-corruption training sessions

Governance Achievements

• Became the first Russian company to join the Dow Jones Sustainability Index
• Improved FTSE4Good ESG rating
• Ranked 1st among 47 peers worldwide in diversified metals by Sustainalytics
• Signed first sustainability-linked loan agreement
• Published first public statement in compliance with the UK Modern Slavery Act

Climate Goals & Targets

Environmental Challenges

• One fatality due to gas poisoning
• Environmental non-compliance resulting in minor fines
• Supply chain disruptions (implied)
• Lack of infrastructure and grid power access in some regions
• Managing risks associated with hazardous materials (cyanide)

Mitigation Strategies

• Reviewed internal safety guidelines and procedures
• Corrected documentation errors related to waste treatment
• Implemented a robust risk management system
• Launched pilot renewable energy projects
• Implemented cyanide management code audits
• Developed a Climate Management System

Supply Chain Management

Supplier Audits: 3,000 potential contractors audited

Responsible Procurement

• Supplier Code of Conduct
• Integration of environmental requirements into contracts
• Audits for ethical principles and anti-corruption policies

Climate-Related Risks & Opportunities

Physical Risks

• Floods, storms

Transition Risks

• Regulatory changes

Opportunities

• Renewable energy generation

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 15 (Life on Land)
• Goal 16 (Peace, Justice and Strong Institutions)

Polymetal's initiatives contribute to these goals through education programs, local employment, infrastructure investments, environmental protection, and ethical conduct.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Industry Mover Award (Robeco SAM)

Environmental Metrics

ESG Focus Areas

• Health and safety
• Employees
• Environment
• Climate and energy
• Communities
• Ethical business
• Supply chain

Environmental Achievements

• Reduced freshwater use for processing by 53% Group-wide compared to 2019 baseline; 47% reduction in Kazakhstan.
• 93% of water reused/recycled Group-wide and 90% in Kazakhstan.
• 15% decrease in GHG emissions intensity Group-wide compared with 2019.

Social Achievements

• Zero fatalities Group-wide and zero fatalities in Kazakhstan.
• Group-wide LTIFR of 0.07 (2022: 0.10); LTIFR in Kazakhstan 0.
• Voluntary turnover rate below 10% (4.7% Group-wide and 1.4% in Kazakhstan).
• $17.6m invested in social projects Group-wide and $7.3m in Kazakhstan.

Governance Achievements

• Successful re-domiciliation to AIFC, Kazakhstan.
• Divestment of Russian assets completed in March 2024.
• Compliance with AIFC Corporate Governance Principles.

Climate Goals & Targets

Environmental Challenges

• US sanctions against JSC Polymetal and its subsidiaries.
• Supply chain disruptions due to sanctions and geopolitical tensions.
• Inflationary pressures and exchange rate fluctuations.
• Tightening of concentrate export regulations in Russia.

Mitigation Strategies

• Divestment of Russian assets.
• Adaptation of procurement strategies.
• Natural hedging against currency risk.
• Development of alternative sourcing strategies.
• Implementation of comprehensive measures to ensure compliance with international sanctions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• ESG assessment for contractors
• Prioritization of regional procurement (38% in Kazakhstan).

Climate-Related Risks & Opportunities

Physical Risks

• Shifts in precipitation patterns
• Change in hydrological cycles
• Hurricanes
• Cold waves
• Droughts and temperature rises

Transition Risks

• National carbon regulation
• Cross-border carbon tax
• Implementation of environmental insurance
• Increase in the cost of carbon-intensive resources

Opportunities

• Development of energy-efficient products
• Increased demand for copper in renewable energy sector

Reporting Standards

Frameworks Used: AIFC regulations, TCFD, IIRC International Integrated Reporting Framework, GRI Sustainability Reporting Standards, SASB Metals & Mining Sustainability Accounting Standard

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young Advisory LLP (limited assurance over sustainability-related information of Polymetal International’s operations located in Kazakhstan)

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 16
• SDG 17

Polymetal's sustainability agenda is built around 12 SDGs, including stimulating economic growth, ensuring health and well-being, contributing to community development, promoting gender equality, minimizing environmental impact, and addressing climate change.

Awards & Recognition

• Grand Prix award at ‘Paryz’ contest for CSR projects.