Nornickel identifies material topics on an annual basis in accordance with the international GRI Standards, which provide for a comprehensive assessment of sustainability impacts, taking into account feedback from stakeholders. In 2023, the Company approved an appropriate procedure consisting of the following stages:
Stage
Description
Results
Stage 1. Identifying impacts
Nornickel's Sustainable Development Department supported by external consultants (the “Working Group”) made a base list of the Company’s actual and potential economic, environmental, and social impacts, including those related to human rights. This list includes 27 sustainable development impacts of the Company. Analysis of the Company's business contextIncluding core activities, business relationships, and sustainability context. identified no impacts other than in 2022
List of 27 actual and potential impacts of the Company.
Stage 2. Assessing impacts
In an online questionnaire, external and internal stakeholders were asked to rate potential and actual impacts on a scale of 0 to 5 based on the key parameters recommended by the GRI Standards:
likelihood/regularity of impact;
severity of impact (including irreversibility of impactRespondents assessed the irreversibility of impacts based on a Y/N scale.);
scope (scale) of impact.
The respondents were also given the opportunity to assess the quality of disclosure of material sustainability topics in the 2022 Sustainability Report and make comments and suggestions on topics of particular interest. This Reports reflects most of the comments.
The Working Group analysed all the questionnaires for adequacy and completeness. Non‑identifiable, partially completed, and improperly completed questionnaires were excluded from the final analysis.
In 2023, 361 questionnaires (23% completed by external stakeholders, 77% completed by internal stakeholders) were taken into account to assess impacts. The number of questionnaires received and taken into account is 63.3% higher than in 2022
361 questionnaires with impact assessments completed by stakeholders
Stage 3. Making a prioritised list of topics
In the analysis of questionnaires completed by stakeholders, average scores were calculated for all impacts.
For each impact, the severity of the impact was determined (average score for impact severity based on the irreversibility factor and impact scale (scope)), and the likelihood/regularity of the impact was assessed.
All impacts were grouped into 18 topics in order to comprehensively analyse and subsequently generate a list of material topics.
A materiality matrix reflecting the relative significance of the topics was plotted on the Severity of Impact and Likelihood/Regularity of Impact axes.
The Company has set cut‑off thresholds for the materiality boundary in the matrix. A value of 5.0 on the sum of coordinate values (rounded) was selected as the cut‑off point – 50% of the maximum score. Topics falling below the boundary are deemed non‑significant, but information on them is also presented in the Report in accordance with the needs of stakeholders. For immaterial topics, incomplete disclosure of GRI indicators is allowed
List and matrix of 18 topics to be discussed with stakeholders in an open dialogue
Stage 4. Engaging in dialogue with stakeholders
The matrix of material topics generated in the third stage was presented to stakeholders in a dialogue held on 27 November 2023 in a mixed format (offline with a live webcast). Stakeholders reviewed the results and made recommendations on the Report and the details of topics disclosure in the Report
List of stakeholder recommendations to the Report
Stage 5. Finalising the list of material topics
The materiality matrix, which is a result of materiality assessment, was finalised
Finalised matrix with 13 material topics (see below)
Materiality matrix
Prioritised list of topics and associated impactsFollowing the prioritisation, the first 13 topics were found to be material.
No.
Topic wording
Sustainability impacts
1
Training and education
Training and education
2
Employment and decent working conditions in the regions of operation
Employment and decent working conditions in the regions of operation
3
Contribution to the development of local communities
Payment of taxes to budgets of various levels
The Company's charitable activities targeting local communities (including indigenous minorities) and non‑profit organisations to support sustainable development
Development of housing, energy, and other infrastructure in the regions of operation
Support for entrepreneurship in the regions of operation
4
Contribution to the national industry through import substitution
Contribution to the national industry by promoting Russian technology
5
Innovation projects pursuing sustainable development goals
Innovation projects pursuing sustainable development goals
6
Climate change
Greenhouse gas emissions
Development of a climate change monitoring system
Metals production needed to combat climate change
7
Emissions
Emissions of sulphur dioxide and other pollutants
8
Waste management
Generation of industrial waste from operations
9
Occupational health and safety
OHS risks for employees and contractors Work‑related injuries
Occupational disease risks for employees and contractors
10
Biodiversity
Impact on biodiversity in the regions of industrial operations
11
Water consumption and wastewater discharge
Wastewater discharge to water bodies
Water withdrawal from water bodies
12
Industrial environmental safety of production facilities (including tailing dumps)
Tailings risks
Industrial environmental safety risks
13
Responsible exploration and land reclamation
Land disturbance
14
Impact of transport on water bodies
Pollution of water bodies by sea and river transport
15
Supply chain responsibility
Risks related to the violation of sustainability principles in the supply chain
16
Corporate governance and risk management
Risks related to inadequate corporate governance and risk management
17
Anti‑corruption and business ethics
Corruption and business ethics risks
18
Respect for human rights (including those of indigenous minorities)
Risks related to the violation of employee and contractor rights (including wrongdoings, discrimination, etc.)
Risks related to the violation of fundamental rights of local communities in the regions of operation (including indigenous minorities)
The final list of material topics contains a number of changes as compared to 2022:
the most important material topics were Training and Education Employment and Decent Working Conditions in the Regions of Operation, and Contribution to the Development of Local Communities, which means that the importance of the Company's social programmes and commitments to key stakeholders is growing;
a high level of importance of special topics was noted: Contribution to the National Industry through Import Substitution (the topic rose from the seventh position in 2022 to the fourth position in 2023), Innovation Projects Pursuing Sustainable Development Goals (the topic remained in the Top 5 in 2023) – new technologies created by the Company contribute to objectives of the ESG strategy;
the topics Impact of Transport on Water Bodies and Supply Chain Responsibility were not included in the list of GRI's material topics for 2023.