HighlightsAll intensity metrics are per RUB mln of IFRS revenue.
Labour practices
In 2023, the average headcount grew by 2.8%, resulting from our investment programme, expanded scope of works and services, organisational and technical changes.
In 2023, the Company increased employee salaries by 6.1%. The monthly average pay at Nornickel is 2.5x the Russian average, standing at RUB 184,100.
By pursuing an effective human resources policy, the Company aims to reduce employee turnover, which rose marginally for 2023, among other things, driven by organisational and technical changes, to reach 11.4%.
Nornickel respects the right of employees to enter into collective bargaining agreements, which currently cover the majority of the Group’s personnel (over 94%).
The increase in LTIFR is associated with a new approach to recording, classifying and investigating incidents at Nornickel.
The largest share of health and safety expenses came from purchasing personal protective equipment and making production facilities compliant with OHS requirements. Changes in this indicator, among other things, depend on the number and type of actual and planned activities to improve the OHS system during the reporting period.
In 2021 to 2023, employee engagement has been improving on an annual basis, driven mostly by social protection that the Company guarantees through its extensive social benefits, along with respect and safety that all our employees enjoy.
During the reporting year, we continued our training activities designed to improve critical, professional and managerial competencies of the employees, with the average annual training per employee going up by 3.5%.
Environment
In 2023, GHG emissions (Scope 1 and 2) were down by 2% as a result of higher energy efficiency, increased reliance on renewable energy (hydro power plants) in generation, and reduction in the volume of diesel fuel.
The key driver behind the higher Scope 3 (downstream) emissions in 2023 was a rise in the sales of semi‑products (mainly iron ore concentrate from Bystrinsky GOK).
Projects to ramp up the use of renewables, achieve savings in fuel and energy consumption, and improve reliability of electricity and gas supplies helped increase the share of renewables in total electricity consumption.
Air pollutant emissions were down by 6.1% vs 2022 as a result of the use of low‑sulphur fuel at the Monchegorsk site and lower sulphur content in the concentrate fed to smelting facilities at Polar Division.
Waste generation in 2023 was up by 6.6% associated with the development of a new Mokulaevskoye limestone deposit.
In order to increase its waste recovery, Nornickel implements projects to process construction waste into certified crushed stone, sort waste in Monchegorsk, and transfer waste to third parties for recovery.
Total water withdrawal declined by 10.8% y‑o‑y following the introduction of automated power consumption metering for commercial purposes, water conservation, and reduction in the withdrawal of water used for HPP equipment cooling.
The Company's key production assets have a closed waster circuit to make sure water withdrawal remains fairly low.
Development of regions and local communities
Nornickel’s expenditure on charity and social projects, social programmes and benefits for its employees accounted for 3.5% of the Group’s revenue for 2023.
The changes in tax and non‑tax payments in 2023 were associated with the introduction of export customs duties, windfall tax payment, and higher insurance payments and personal income tax.
Nornickel continues to support indigenous peoples. In 2023, this expense item increased, as the Company constructed new facilities for them.
Corporate governance
The Board of Directors is well‑balanced in terms of independence of its members, contributing to effective decision‑making that aligns with the highest global standards and caters to the interests of varied stakeholders.
Operational performanceGroup data, including foreign companies of Kola Division.
In 2023, Nornickel marginally reduced the output of all metals except platinum, attributable to a temporary decline in the extraction of rich cupriferous ore, associated with transition to new mining machinery.
In 2023, Nornickel sold all of its output and some of the metal stocks accumulated in 2022.
