Moscow, May 23, 2024. In its 20th anniversary public non-financial report, Nornickel presented its key sustainability results for 2023.

In order to respond to external challenges, the company made adjustments to its strategic plans and projects and adapted its logistics and sales operations. At the same time, the key sustainability priorities remained unchanged: Nornickel continued to fulfill its environmental and social commitments and made a significant contribution to a number of Russian national projects in line with the goals of the UN Global Compact.

Some sustainability achievements for 2023:

Improving workplace safety. Programs to improve mine safety continued and programs to prevent and mitigate occupational accidents were updated. Implementation of the project to develop a risk-based mindset progressed, with the number of Dynamic Risk Assessment training sessions increasing by a factor of 4.3 and Behavioral Safety Audit training sessions increasing by a factor of 35. The incident reporting process was updated to improve transparency and classification quality.

Significant progress on environmental issues. The sulfur program was launched at the Nadezhda Metallurgical Plant, the largest environmental project in Russia, which will reduce SO2 emissions in the Norilsk industrial district by 45%. The program to clean up historical pollution continued: 1 million tons of waste and over 80,000 tons of scrap metal were collected, 347 facilities were dismantled, and over 4.1 million square meters of land were decontaminated.

Climate change. Greenhouse gas emissions (Scope 1, Scope 2) decreased to 9.7 million metric tons of CO2-equivalent. Scope 3 Upstream and Downstream emissions were 1,3 and 5,1 million tons, respectively. The share of electricity generated from renewable sources was 55%. Nornickel has one of the lowest carbon footprints in the global nickel industry.

Increased attractiveness as an employer of choice. The employee engagement index rose to 68%, 6% higher than the industry average. Spending on social programs and benefits increased by 7.8% to RUB 16.4 billion. In addition, the “Digital Investor” motivational program was launched, under which employees with more than one year of service received digital financial assets whose value was linked to the company’s shares.

Improving the comfort of employees and residents in the regions where the company operates. Renovation of public and residential areas at the Company’s production facilities continued, with more than 4.5 billion rubles allocated for this purpose. Corporate and private medical centers were launched, and projects under the Comprehensive Plan for the Social and Economic Development of the Norilsk Oblast up to 2035 were continued.

Successful implementation of projects to support local communities and the equal opportunities program. The amount of funds allocated to support the indigenous peoples of the North totaled 976 million rubles. The percentage of employees hired from the local population reached 99.7%^[1]. The proportion of women on the Board of Directors increased to 31%, while the proportion of women in management positions was 36%.

Biodiversity studies in operating regions. An ethnographic survey of the Kolmozersky Project and the second season of the Great Scientific Expedition were conducted, covering more than 71,000 square kilometers. A new technique was developed to calculate an integrated ecosystem health indicator to assess pollution and biodiversity.

In the field of sustainability disclosure:

Expansion of the list of applicable standards and guidelines. In addition to the GRI (2021), UNCTAD, TCFD, SASB Metals & Mining standards, the methodological recommendations of the Ministry of Economic Development of Russia (Order No. 764 dated November 1, 2023) and the International Financial Reporting Standard (IFRS) S2 were added in 2023 ^[2].

In addition to the main sustainability report, three other reports were published in 2023: on climate change, on human rights, and on a responsible supply chain.

Commenting on the key sustainability results, Vladimir Potanin, President of Nornickel, said: “Nornickel maintains its key sustainability priorities regardless of changing trends and conditions, this is the company’s principled position. Our priority is the health and safety of our employees. This is not only about safe production, but also about providing a pleasant working environment and opportunities for professional growth and development, taking into account the needs of the economy of the future.”

_{1 Citizenship of the employee is the same as the country of incorporation of the Group company.}

_{2 The Appendix to the 2023 Sustainability Report summarizes the disclosures prepared during the pilot period, incorporating the formats required by IFRS S2.}

Nornickel presents sustainability results for 2023