Sustainability management

GRI 2‑24

To effectively support the achievement of the Company's strategic sustainability goals, Nornickel is implementing a sustainability management system.

The sustainability management system includes, but is not limited to:

  • policies and statementsThe texts of the documents are available on the  Company’s website. that set out the principles and approaches applicable to all of Nornickel Group’s Russian business units;
  • goals, objectives and targets set out in the Environmental and Climate Change Strategy through 2031 and the Sustainable Social Development Strategy through 2030 (for more details, please see the Sustainable Development Strategy section), KPIs for the top management, as well as roadmaps and other by‑laws;
  • split of responsibilities for areas of sustainable development;
  • organisational and methodological activities of the Sustainable Development Department.

The split of responsibilities for sustainability within the Company is based on a matrix approach: specific aspects of sustainable development fall within the remit of functional units of the Head Office, branches, and business units. Most of said aspects are supervised by the Management Board, Board of Directors and its committees; in particular, the Sustainable Development and Climate Change Committee takes part in regularly monitoring and overseeing relevant programmes and practices.

As the key unit responsible for sustainability, the Sustainable Development Department is responsible for a consistent approach to effectively running the sustainability management model, develops and implements systems for assessing the Company's compliance with relevant provisions of international and national standards and recommendations, as well as requirements set forth by leading associations, agencies, and other stakeholders. At the senior executive level, the coordination of how policies and internal procedures on sustainability are actually implemented falls within the remit of the Vice President for Investor Relations and Sustainable Development.

In 2023, we updated the professional competency model for the sustainable development vertical, including divisions, and put together test questions to evaluate the knowledge of employees across all competencies. A testing exercise is planned for 2024.

Employees of Nornickel have started to view their daily work not only as a way to achieve production objectives, but also as their personal contribution to sustainable development goals.

This is largely due to our efforts to reach out to people, and to integrate ESG principles into the Company's operations and existing business processes.

We will continue engaging our colleagues and partners in environmental and social initiatives to foster our shared sustainable future.

Irina Voronkova,

Head of the Sustainability Management Department, Polar Division (length of service with the Company – 41 years)
Sustainability‑related KPIs of the top management

In 2023, sustainability‑related indicators are included in Nornickel Group's annual team KPIs for the year. The priorities here are occupational health and safety and environmental protection. Respective indicators have a weight of 30% and 20% respectively in team KPIs for the year 2023. Also, the Environmental Project Implementation indicator was selected as a KPI for the Long‑Term Incentive Programme for the Group's Key Employees (total weight of 30%).

Period The Group’s annual team KPIs Long‑term KPIs
Focus area Occupational health and safety Environment Ecology and environment
KPI weight 30% 20% 30%
KPI target Achievement of the OHS plan depending on FIFRFatal Injury Frequency Rate. Reduction in GHG emissions and zero environmental incidents Delivery of environmental projects

Split of responsibilities for key areas of sustainable development

GRI 2‑9, 2‑12, 2‑13

Compliance with Russian and international sustainability standards and initiatives

GRI 2‑28

In its operations, Nornickel is guided by provisions of international and national standards, guidelines and initiatives on sustainability, implements new approaches and mechanisms in this domain, and relies on, applies, and helps spread international and industry best practices.

Participation in sustainability initiatives and compliance with sustainability standards
Initiative/standard Status
UN Global Compact Member since 2016
Together for Sustainability (TfS) initiative The Company meets the initiative’s requirements based on results of a 2022 follow‑up audit
International Platinum Group Metals Association (IPA) Member since 1999
Nickel Institute Member since 2005
Initiative for Responsible Mining Assurance (IRMA) The roadmap for compliance with international standards is in progress
ICMM Mining Principles
Global Battery Alliance (GBA) Member since 2021
London Metal Exchange (LME) In 2022, the Company provided the LME with its first ever RFA reports for 2021 (accepted by the LME). In 2023, the LME accepted the Company's 2022 RFA reports
Extractive Industries Transparency Initiative (EITI) The Company has been disclosing data under the EITI since 2021
Global Reporting Initiative (GRI) Annual reporting in line with the GRI Standards
UNCTAD Guidance on core indicators for entity reporting on contribution towards implementation of the UN Sustainable Development Goals Since 2018, the Company has been making UNCTAD Guidance disclosures as part of its sustainability reports
SASB Metals & Mining Sustainability Accounting Standard Since 2021, the Company has been using the SASB Metals & Mining Sustainability Accounting Standard for sustainability reporting purposes
TCFD (Task Force on Climate‑Related Financial Disclosures) recommendations Since 2019, the Company has been using the TCFD recommendations for sustainability reporting purposes. In 2023, Nornickel released its first Climate Change Report. The report’s compliance with the TCFD recommendations was confirmed by an independent assurance report. For more details, please see the Climate Change section and the Climate Change Report
IFRS S2 Climate‑related Disclosures A decision was made to pilot climate‑related disclosures in line with the formats set out in IFRS S2 and include them in the 2023 Sustainability Report
Order of the Ministry of Economic Development of Russia No. 764 On Approval of Methodological Recommendations for Sustainability Reporting dated 1 November 2023 The 2023 Sustainability Report includes Appendix “Disclosure under Order of the Ministry of Economic Development of Russia No. 764 dated 1 November 2023”
National ESG Alliance One of the founders since December 2022
Roadmap for compliance with international standards: implementation

Based on a 2022 independent assessment of Nornickel’s mining assets readiness for the IRMA certification, the Company developed and coordinated with relevant units a draft roadmap of corrective actions to ensure compliance with the IRMA requirements.

Also, in 2023, the Company completed activities of the ICMM compliance roadmap, including calculation of Scope 3 GHG emissions (upstream), approved an updated Corporate Trust Line Procedure, assessed the performance of the grievance mechanism, and installed small‑scale monitoring stations for online monitoring of air quality in Norilsk and Monchegorsk.

Работники

In addition, the Company’s production, transportation and R&D assets are subject to regular certification and surveillance audits for compliance with ISO international standards related to quality management, environmental management, labour protection, and information security.

Nornickel’s ESG ratings

The recognition from the expert community with high scores in environmental protection, social policy, and corporate governance serves as a testament to our continuous improvement and implementation of cutting‑edge initiatives in sustainability.

Description As at 31 December 2023
ESG Risk Score: 44.0 out of 100 on a scale from 1 (low risk) to 100 (high risk)
ESG rating: B, score – 3.1 out of 10
ESG Score: 58 out of 100 on a scale from 1 (low) to 100 (high)
Human rights ranking (compliance with the Corporate Human Rights Benchmark – CHRB): score of 21.0 out of 100 on a scale from 1 (low) to 100 (high)
ESG Ranking: A, high ESG level

ESG rating: ESG‑III(a), strong sustainability commitment in key decision‑making, outlook: stable

ESG Transparency Ranking: 2 out of 2 on a scale from 0 (low) to 2 (high)

ESG rating: ESG‑B, level: ESG‑2 (meaning high assessment of the Company’s environmental, social, and governance achievements)
ESG Index by RBC: level I (high)
ESG rating – A, Best Corporate ESG Practice in Russia
Since 2023, Nornickel has been part of the Moscow Exchange’s new stock index: MOEX – RAEX ESG Balanced Index
For more details on the Company's awards in production, innovations, environmental protection, and social policy, see the Awards and Accolades section.