2021 sustainability report

Nornickel
and UN SDGs

GRI 102-15

Nornickel fully supports the UN Sustainable Development Goals (SDGs) up to 2030, and their integration into the Company’s strategy was initiated back in 2018. The SDGs up to 2030 accepted internationally in 2015 are a high-level guidance set to bring the authorities, business, and the public together to address the issues of sustainable development, and to protect the planet.

Based on stakeholder engagement, we selected and looked into those SDGs that are relevant to our operations. In 2019, we performed an in-depth analysis of SDGs and matched them, among other things, against our current strategy, material risks, goals and commitments, investments in relevant projects and best peer practices.

As a result, we identified six central SDGs:

  • Goal 3: Good Health and Well-being;
  • Goal 8: Decent Work and Economic Growth;
  • Goal 9: Industry, Innovation and Infrastructure;
  • Goal 11: Sustainable Cities and Communities;
  • Goal 12: Responsible Consumption and Production;
  • Goal 13: Climate Action.
221.5
RUB bn spent on SDG-linked projects in 2021 (16.8% of consolidated IFRS revenue)
Spending on SDG projects

Nornickel’s key SDG-linked projects and programmes in 2021

SDGs
Projects
and programmes
ПContribution towards
UN SDGs
2020
2021
Year-on-
year change

SDGs

Central SDG

Relevant targets:
3.4, 3.6, 3.9

Relevant national projects:
*Part of the Healthcare domain (Russia’s national projects)
**Part of the Environment domain (Russia’s national projects)

Projects and programmes

  • Health improvement and wellness programmes for employees and their families*
  • Voluntary health insurance for employees and their families*
  • Air protection projects**
  • Water conservation and sustainable use projects**
  • Waste management projects**
  • Occupational safety initiatives*
  • Corporate Healthcare project*
  • COVID-2019 response measures

Contribution towards UN SDGs

Participants in health improvement programmes

2020

13k

2021

24.5k

Year-on-year change

+93,8%

Contribution towards UN SDGs

VHI policy holders (employees)

2020

72.8k

2021

75.3k

Year-on-year change

+3,4%

Contribution towards UN SDGs

LTIFR

2020

0.20

2021

0.38

Year-on-year change

+80%

Contribution towards UN SDGs

Fatal workplace injuries

2020

9

2021

11

Year-on-year change

+22%

SDGs

Relevant target:
4.4

Relevant national projects:
**Part of the Education domain (Russia’s national projects)

Projects and programmes

  • Staff training and development*
  • Corporate scholarships for university students and internships with Nornickel Group companies*
  • The World of New Opportunities charity programme: grants for educational institutions and projects*

Contribution towards UN SDGs

Employees covered by Nornickel’s staff training, professional development, retraining, and upskilling initiatives

2020

70,902

2021

115,576

Year-on-year change

+63%

Contribution towards UN SDGs

University students covered by Nornickel’s corporate scholarship programmes

2020

90

2021

96

Year-on-year change

+6,7%

SDGs

Relevant target:
6.3

Relevant national projects:
*Part of the Environment domain (Russia’s national projects)

Projects and programmes

  • Water use improvement and water supply projects*
  • Water conservation and sustainable use projects*

Contribution towards UN SDGs

Effluents treated to standard quality at treatment facilities

2020

4.34 mcm

2021

4.92 mcm

Year-on-year change

+13,8%

Contribution towards UN SDGs

Water withdrawal

2020

0.34 thousand m3 / RUB mln

2021

0.26 thousand m3 / RUB mln

Year-on-year change

-24%

Contribution towards UN SDGs

Effluents

2020

Effluents 0.18 thousand m3 / RUB mln

2021

0.15 thousand m3 / RUB mln

Year-on-year change

-15%

Contribution towards UN SDGs

Pollutants in effluents

2020

0.22 t / RUB mln

2021

0.18 t / RUB mln

Year-on-year change

-18%

Contribution towards UN SDGs

Share of total used water recycled and reused

2020

86.4%

2021

84.6%

Year-on-year change

-1.8 p.p.

SDGs

Relevant targets:
7.1, 7.3

Relevant national projects:
*Part of the Environment domain (Russia’s national projects)
**Part of the Housing & Urban Environment domain (Russia’s national projects)

Projects and programmes

  • Rollout of the Automatic System for Commercial Accounting of Power Consumption across Polar Division*
  • Energy efficiency and energy saving projects*
  • Projects to upgrade power and heat generation, electrical grids and heat networks**

Contribution towards UN SDGs

Share of renewables in the Group’s electricity consumption

2020

46%

2021

47%

Year-on-year change

+1 p.p.

SDGs

Central SDG

Relevant targets:
8.2, 8.4, 8.5, 8.8.

Relevant national projects:
*Part of the Labour Productivity and Employment Support domain (Russia’s national projects)

Projects and programmes

  • Ensuring decent compensation for labour*
  • Securing employees’ involvement in social partnerships*
  • Programme to improve the workers’ social and living conditions
  • Health and safety initiatives
  • Ensuring employees’ involvement in
  • improvement of the health and safety
  • system*
  • The Operating Unit’s investment projects (concentration and metal production)

Contribution towards UN SDGs

Average monthly salary

2020

RUB 131,800

2021

RUB 145,100

Year-on-year change

+10%

Contribution towards UN SDGs

Employees covered by collective bargaining agreements

2020

93.7%

2021

94%

Year-on-year change

+0.3 p.p.

Contribution towards UN SDGs

Social facilities commissioned after renovation

2020

138

2021

123

Year-on-year change

-11%

SDGs

Central SDG

Relevant targets:
9.1, 9.4, 9.5

Relevant national projects:
*Part of the Housing & Urban Environment domain (Russia’s national projects)
**Part of Environment, Science, and Digital Economy domains (Russia’s national projects)
***Part of the Digital Economy domain (Russia’s national projects)

Projects and programmes

  • Projects to increase production and upgrade processing facilities
  • Projects aiming to develop local communities’ infrastructure (including transport accessibility improvement) as part of a public-private partnership and agreements with local administrations*
  • Projects to develop power and heat generation, electrical grids, and heat networks*
  • Research and development (R&D) and feasibility studies aimed to update Nornickel Group’s Development Strategy expand production and protect the environment**
  • Transportation and logistics projects
  • Operational and management digitalisation projects***
  • Enhancing the reliability of the fibre optic communication line in Norilsk*

Contribution towards UN SDGs

Expenses on R&D and feasibility studies1*

2020

RUB 104.0 mln

2021

RUB 241.4 mln

Year-on-year change

+132%

SDGs

Relevant target:
10.7

Relevant national projects:
*Part of the Labour Productivity and Employment Support domain (Russia’s national projects)

Projects and programmes

  • Complementary Corporate Pension Plan
  • Relocation assistance to new employees*
  • Assistance programme for residents of Norilsk and Dudinka relocating from the Far North
  • Our Home and My Home social programmes (purchase of apartments for employees in various Russian regions)

Contribution towards UN SDGs

Complementary corporate pensions paid

2020

RUB 411.3 mln

2021

RUB 411.3 mln

Year-on-year change

0%

Contribution towards UN SDGs

Expenses on relocating Norilsk and Dudinka residents to regions with better climate conditions

2020

RUB 830 mln

2021

RUB 830 mln

Year-on-year change

0%

Contribution towards UN SDGs

People covered by the relocation assistance programme

2020

829

2021

1,370

Year-on-year change

+65.3%

SDGs

Central SDG

Relevant target:
11.6

Relevant national projects:
*Part of the Environment domain (Russia’s national projects)

Projects and programmes

  • Sulphur Programme 2.0*
  • Air protection projects*
  • Waste management projects (including projects to eliminate inherited waste)*
  • Response to environmental incidents
  • Other environmental protection activities*

Contribution towards UN SDGs

Air pollutant emissions

2020

1.76 t / RUB mln

2021

1.25 t / RUB mln

Year-on-year change

-29%

SDGs

Central SDG

Relevant targets:
12.2, 12.4, 12.5, 12.6

Relevant national projects:
*Part of the Environment domain (Russia’s national projects)

Projects and programmes

  • Waste management projects*
  • Other environmental protection activities*

Contribution towards UN SDGs

Waste generation

2020

145 mt

2021

156 mt

Year-on-year change

+7.6%

Contribution towards UN SDGs

Non-hazardous class 5 waste

2020

99%

2021

99%

Year-on-year change

0%

Contribution towards UN SDGs

Waste generation

2020

0.13 kt / RUB mln

2021

0.12 kt / RUB mln

Year-on-year change

-7.7%

SDGs

Central SDG

Projects and programmes

  • Projects to upgrade power and heat generation, electrical grids and heat networks
  • Energy saving and energy efficiency improvement initiatives

Contribution towards UN SDGs

GHG emissions (Scope 1 and 2)

2020

9.70 mt of CO2 equivalent

2021

10.31 mt of CO2 equivalent

Year-on-year change

+6.3%

Contribution towards UN SDGs

GHG emission intensity (Scope 1 and 2)

2020

8.68 tonnes of CO2 equivalent per RUB 1 mln of consoli­dated revenue

2021

7.83 tonnes of CO2 equivalent per RUB 1 mln of consoli­dated revenue

Year-on-year change

-10%

SDGs

Relevant targets:
15.1, 15.5

Relevant national projects:
*Part of the Environment domain (Russia’s national projects)

Projects and programmes

  • Cooperation with nature reserves (support for research and educational projects at the Pasvik, Lapland, Relict Oaks and Urumkansky nature reserves, Joint Directorate of Taimyr Nature Reserves, etc.)*
  • Response to environmental incidents
  • Scientific expeditions
  • Fish stocking at water bodies across the regions of operation

Contribution towards UN SDGs

Total area of supported nature reserves and parks

2020

2,334,000 ha

2021

2,334,000 ha

Year-on-year change

0%

SDGs

Relevant target:
16.5

Projects and programmes

  • Anti-corruption measures
  • Raising awareness of its anti-corruption practices among Nornickel Group’s employees

Contribution towards UN SDGs

Operating business units involved in anticorruption activities

2020

100%

2021

100%

Year-on-year change

0%

Contribution towards UN SDGs

Employees informed about anti-corruption practices

2020

100%

2021

100%

Year-on-year change

0%

SDGs

Relevant target:
17.16

Projects and programmes

  • Cooperation with federal legislative and executive authorities, civil society institutions, and the business community
  • Reporting on the Company’s contribution to the achievement of UN SDGs in line with the UNCTAD guidance
  • UN Global Compact membership and related reporting
  • Plans to join other major sustainable development initiatives (ICMM, IRMA, TCFD)
  • Support for corporate volunteering

Contribution towards UN SDGs

Working bodies (committees, expert and working groups, etc.) established by NGOs and government authorities where Nornickel Group is represented

2020

25

2021

25

Year-on-year change

0%

Nornickel’s support for initiatives, standards, and participation in associations focused on sustainable development and corporate social responsibility

GRI 102-12 GRI 102-13

International
UN initiatives
  • UN Global Compact
  • Sustainable Development Goals of the UN 2030 Agenda
Management standards
  • ISO 14001:2015
  • ISO 9001:2015
  • OHSAS 18001:2007 / ISO 45001:2018
  • ISO/IEC 27001:2013
  • ISO 26000:2010
  • AA1000AP, AA1000SES
Associations, charters, alliances, and initiatives
  • International Labour Organisation conventions
  • International Platinum Group Metals Association
  • International Information Security Research Consortium
  • Nickel Institute
  • Together for Sustainability (TFS) initiative
  • Responsible Sourcing Blockchain Network (RSBN)
  • European Battery Alliance (EBA)
  • GRI Community
Rating agencies,
ESG agencies and indices
  • EcoVadis
  • FTSE4Good Index
  • Sustainalytics
  • MSCI
  • ISS Corporate Solutions
  • S&P Global
  • CDP
Russian
UN initiatives
  • UN initiatives
Management standards
  • GOST R ISO 26000-2012
Associations and charters
  • National Association of International Information Security
  • Security Charter for Critical Industrial Facilities
  • Social Charter of the Russian Business
  • Anti-Corruption Charter of the Russian Business
  • Environmental Charter of the Krasnoyarsk Territory
Rating agencies,
ESG agencies and indices
  • RSPP Responsibility and Transparency index and Sustainable Development Vector index