ALROSA Case Study – Climate Action

About the company ALROSA is the largest company in the world by volume. Their main mining and processing operations are in two Russian regions: The Republic of (Yakutia) which accounts for 95% of production, and the Arkhangelsk region. ALROSA joined RJC in 2016 and became certified in 2017.

How climate change is affecting operations ALROSA’s operations in Yakutia are located on permafrost. With climate change, there’s a risk of the permafrost melting so the potential impact of climate change is huge. Concerns range from health & safety to production capabilities.

Where has pressure to act on climate come from? ALROSA has seen advice from multiple stakeholders to act on climate change: • From industry organizations and institutional investors who note the importance of ESG ratings • From governments through activity seen in the EU with the new green deal and potential due diligence initiatives. The Russian government has also taken a step forward by requiring non-financial reporting from companies listed on the stock exchange • Finally ALROSA understands that climate is a huge concern for end consumers of diamond jewellery.

How they have reduced GHG emissions • The most significant action to contribute to a reduction in emissions has been moving from diesel to natural gas for over 1000 vehicles at Mirny and Aikhal production sites • The generation of renewable energy from a hydro power plant, which contributes over 85% of energy used from facilities in Yakutia, has also greatly facilitated a reduction.

Complementary biodiversity initiatives undertaken: • ALSORA is monitoring the migration of reindeer to help prevent disturbing their normal migration patterns. This project is being conducted in collaboration with scientists from Siberian Universities • The regeneration of fish populations. In 2020, water bodies of Yakutia have been replenished with 65,000 pieces of sturgeon fry, 1 million pieces of broad whitefish larval, 1 million pieces of vendace, and over 2 million pieces of northern white fish. Fish stocking preserves the aquatic biological resources of rivers in the region.

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