20 YEARS OF CORPORATE SUSTAINABILITY

Norilsk Nickel Group, a diversified mining and metallurgical company, is the world’s leading producer of palladium and nickel and a major global producer of platinum, copper, and other low carbon footprint metals.

In 2023, Nornickel was making changes to its strategic plans as it shifted its focus to the markets of friendly countries, reinvented logistics chains, and reviewed ongoing and new projects. Nornickel remains committed to its sustainability strategy and the UN Global Compact, integrating these key principles into its operations. Our key production, social, and environmental projects keep going full steam ahead. Nornickel’s commitment to ongoing improvement, fulfilment of obligations, and exceptional transparency is reflected in its 20th sustainability report.

The Company’s approach to personnel management: changes over a 20-year span

People are at the core of Nornickel’s success. Over the past years, the Company’s main focus in HR management has been the improvement of social and working conditions and expansion of social benefits for its employees. In addition, we developed a systemic approach to professional education of all employee categories at the Corporate University, organised leadership programmes, and created corporate communities for like-minded people carrying out projects for the benefit of the Company and society.

In order to provide equal access to benefits and career opportunities for all employees, Nornickel developed a unified HR management system. As part of it, we implemented a grade system across the Group and automated monitoring and control of HR metrics.

Cementing Nornickel’s leadership among the industry’s employers is our strategic goal set out in the Human Capital Development Programme and Sustainable Social Development Strategy through 2030.

How has the Company’s approach to occupational health and safety evolved over the past 20 years?

At Nornickel, we are aware of our responsibility for protecting the lives and health of employees involved in our operations. Over time, the Company’s focus has somewhat shifted from a strict compliance approach to a risk-oriented approach: all incidents are subject to thorough investigation, and measures to prevent their recurrence are developed and put in place. The Company takes a proactive stance, working to prevent adverse events.

Today, Nornickel provides regular training in occupational health and safety, encourages employees to identify risks, fosters a safety culture, and gradually introduces innovative technologies, such as video analytics for wearing personal protective equipment, exoskeletons, and unmanned vehicles.

How has the Company’s dialogue with the regions of operations evolved over the past 20 years?

In its operations, Nornickel maintains an active dialogue with local authorities, civil society institutions, local communities, and indigenous peoples, seeking to keep well-established relations with them.

Over the past 20 years, the Company has tried various interaction formats by entering into longterm agreements on social and economic cooperation with regional authorities, participating in the drafting of regional development strategies, and contributing to efforts of territorial development agencies.

Nornickel also made timely tax payments, offered jobs across its footprint, pursued an environmental policy, and executed a large number of projects contributing to the social and economic development of local communities, as well as to their well-being and quality of life.

By maintaining an ongoing dialogue with the indigenous peoples living in Taimyr and the Murmansk Region, Nornickel recognises the right of indigenous peoples to set their development priorities and pays respect to their customs, traditions, and culture. From a patronage model, we have moved to joint agenda-setting based on indigenous peoples’ determination of their development priorities.

How has the Company’s environmental approach evolved over the past 20 years?

Improving environment across the Company’s footprint is one of our priorities. To reduce its environmental impact, Nornickel takes various measures, including upgrade of existing operations, construction of new environmental protection facilities, introduction of modern technical and process solutions, and shutdown of obsolete production assets. The Company is actively implementing its flagship project, the Sulphur Programme, aimed at fundamentally changing the environmental situation in Norilsk and Kola Divisions by reducing sulphur dioxide emissions. The management of impacts on environmental components is reflected in the Environment and Climate Change Strategy, which was due to be updated in 2023.

How has the Company’s climate change approach evolved over the past 10 years?

With a view to facilitating global energy transition and adapting to climate change, the Company has focused on building a corporate climate change management system, investing in environmentally friendly technologies, and upgrading its core production facilities. We also actively engage in international and national initiatives to combat climate change, while also fostering collaborations with various stakeholders.

As early as 2013, Nornickel publicly acknowledged the risks associated with climate change and presented measures to mitigate their adverse impacts. In 2017, we adopted the Renewable Energy Sources Policy. In 2021, the Company established a Sustainable Development and Climate Change Committee under the Board of Directors and approved the Environmental and Climate Change Strategy further updated in 2023. Currently, Nornickel is developing procedures for managing climaterelated risks and opportunities. In its pursuit of carbon neutrality, the Company has identified key initiatives aimed at reducing gross greenhouse gas emissions and minimising its carbon footprintKey steps towards achieving carbon neutrality were approved by the Board of Directors in early 2024..

How has the Company’s corporate governance evolved over the past 20 years?

Improvement of the corporate governance framework is a process that has been invariably accompanying all key changes in the Company over the past 20 years.

Nornickel established the first committees under the Board of Directors in 2004, and in 2019, independent directors for the first time received the majority of seats in the collegial non-executive governance body.

Over these 20 years, the Board of Directors has approved more than 100 internal governance documents in line with international and Russian best practices, and considered more than 3,000 matters, including those pertaining to sustainable development.

Nornickel has traditionally been striving to strengthen its status as a responsible employer, a reliable supplier for Russian and foreign counterparts, and a partner for the regions of operation, local and indigenous communities. The Company sets the bar high for its employees and partners with respect to responsible business conduct, including string respect for human rights, zero tolerance to any form of corruption and all levels, counterparty screening in procurement, and roll-out of a responsible supply chain.