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Sustainability Report 2020

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Sustainability Report 2020 1 SUSTAINABILITY REPORT 2020 TRANSFORMING THE VISION Sustainability report 2020 CONTENTS INTRODUCTION 2. HEALTH 4. ENVIRONMENTAL 6. DEVELOPING LOCAL At a glance 5 AND SAFETY PROTECTION COMMUNITIES Message from the Chairman 11 2.1 Management approach 79 4.1 Management approach 125 6.1 Management approach 173 Message from the General Director 13 2.2 Enhancing the safety culture 83 4.2 Water resources 128 6.2 Investing in local communities in Russia 178 Our response to COVID-19 15 2.3 Risk identification and management 86 4.3 Waste management 131 6.3 Investing in local communities outside Russia 189 Sustainability strategy 17 2.4 Safety initiatives and projects in 2020 89 4.4 Use of hydraulic structures 135 6.4 Plans for 2021 and the midterm 192 Stakeholder engagement and materiality assessment 21 2.5 Performance results 91 4.5 Air emissions 136 Association and international initiatives 2.6 Training 93 4.6 Land resources 139 membership 25 2.7 Health protection 94 4.7 Biodiversity 140 RUSAL’s contribution to UN Sustainable Development Goals (UN SDGs) 27 2.8 Contractor engagement 99 4.8 Plans for 2020 and the midterm 146 2.9 Emergency preparedness 100 2.10 Plans for 2021 and the midterm 100 1. GOVERNANCE 3. EMPLOYEES 5. CLIMATE CHANGE APPENDICES AND SUSTAINABLE 3.1 Management approach 103 AND ENERGY Appendix 1. About this Report 192 Appendix 2. Key sustainability data 196 DEVELOPMENT 3.2 Personnel structure 104 5.1 Our approach to TCFD disclosure 149 Appendix 3. GRI Content Index 213 Appendix 4. SASB Content Index 227 1.1 Corporate Governance 33 5.2 Climate strategy 157 3.3 Staff recruitment 106 Appendix 5. Glossary 229 1.2 Risk management and internal control 40 5.3 Energy efficiency 166 Appendix 6. Independent practitioner’s 3.4 Motivation and remuneration 110 assurance report 233 1.3 Sustainability governance 43 5.4 Plans for 2021 and the midterm 169 3.5 Training and development 115 1.4 Operational efficiency and innovations 47 1.5 Ethics and integrity 61 3.6 Social partnership 118 1.6 Supply chain 67 3.7 Human rights 119 3.8 Plans for 2021 and the midterm 122 5 SUSTAINABILITY REPORT 2020 AT A GLANCE 6 AT A GLANCE About RUSAL RUSAL’s products 2020 – key production figures GRI 102-1, GRI 102-2 GRI 102-2, GRI 102-6 more than 98% RUSAL1 is a leading company in the global aluminium One of the strategic goals of Company is social and is the share of clean and renewable hydropower used for RUSAL produces a wide range of products, also with 4 industry and the largest producer of low-carbon corporate responsibility and contributing to a green having high added value (aluminium sheets, ingots, aluminium production aluminium using renewable energy. and low-carbon economy. Therefore, the Company wire rod, casting alloys, billets, etc.). Despite market less than 4 tonnes uses more than 98% of electricity from renewable volatility and a decline in global demand for aluminium 5 2 of CO2 equivalent per tonne of aluminium carbon footprint for We are a low-cost, vertically integrated aluminium sources for aluminium production, and the introduction brought about by the COVID-19 pandemic, the Company ALLOW brand (Scope 1&2, at smelter) producer. In 2020, the Company accounted for around of innovative and energy-saving technologies makes managed to increase the share of high value-added 5.8% of global production of aluminium and 6.5% of it possible to reduce greenhouse gas emissions at all products sales in total sales to 44% in 2020 (up from 37% alumina production. production stages. in 2019), mainly attributable to the diversified customer 3.8 million tonnes base and prompt management decisions. of aluminium produced (5.8% global aluminium production) RUSAL's enterprises, with a headcount of over 50,000, RUSAL was one of the first in the world to produce operate in 13 countries across the world and five green metal, known as the ALLOW brand – low- 8.2 million tonnes continents, with a presence in Russia, Kazakhstan, carbon aluminium produced using renewable of alumina produced (6.5% of global alumina production) Australia, Armenia, Guyana, Ireland, Sweden, Guinea, hydropower. ALLOW comes with a carbon footprint 3 Italy, Nigeria, and Jamaica. of no more than 4t CO2 eq/t Al . Assessments of the Company’s carbon footprint are made independently 14.8 million tonnes RUSAL ordinary shares are traded on the Hong Kong by a third party on an annual basis. of bauxite produced Stock Exchange and the Moscow Exchange. 1United Company RUSAL, international public joint-stock company, together with its subsidiaries, is referred to in the RUSAL Sustainability Report 2020 as the “Company” or “RUSAL”. For a full list of subsidiaries, see the section headed "About the Report" hereto. 4 2For more information, see https://rusal.ru/en/ In the structure of the energy mix of RUSAL aluminium plants. 5 3Level 1 emissions. As defined in the Aluminium Carbon Footprint Technical Support Document – Level 1: Emissions from aluminium electrolysis, aluminium ingot casting, Level 1 emissions. As defined in the Aluminium Carbon Footprint Technical Support Document – Level 1: Emissions from aluminium electrolysis, aluminium ingot casting, anode/paste production, as well as emissions from electricity generation and heat production associated with these processes. Source for global average indicator is IAI data, anode/paste production, as well as emissions from electricity generation and heat production associated with these processes. 2018. 7 SUSTAINABILITY REPORT 2020 AT A GLANCE 8 Participation in other companies and joint ventures As of the end of the reporting period, RUSAL As a result, it is expected that upon completion held a 27.82% stake in PJSC MMC Norilsk Nickel of the repurchase and cancellation of the major part (Russian Federation), the world’s largest producer of repurchased shares, RUSAL’s stake in Norilsk Nickel of nickel and palladium and one of the largest will remain above the blocking stake (25%+1 share). producers of platinum and copper. In 2021, the Company participated in the repurchase of Norilsk RUSAL also holds a 20% stake in Queensland Alumina Nickel shares. This has not been disclosed in the Ltd. (Australia), producing alumina under a tolling annoncement of the Company, suggest to remove agreement, and a 50% stake in BEMO project (Cyprus, and align with the disclosure of the Company dated Russian Federation). 15 June 2021. The decrease in RUSAL's stake as a result of the repurchase will be partially Together with Samruk-Energo, the energy division compensated by the subsequent cancellation of the of Samruk-Kazyna, which is located in Kazakhstan, majority of shares bought back by Norilsk Nickel. RUSAL owns the Bogatyr Komir development production facility. 2020 Sustainability profile GRI 102-7 Industry leader No 1 USD 8,566 million 3,926 kt aluminium producer outside revenue total sales of China 43 factories located 1,722 kt No 1 in 13 countries VAP sales low-carbon aluminium producer Recognition from the expert community outside of China Global role in low-carbon 11% 4% 112 thousand economy reduction in specific GHG reduction the average electricity trees planted in Irkutsk Region In 2020, RUSAL’s received an "A-" rating for the first time in the aluminium industry, following its emissions vs 2014 at existing consumption at aluminium smelters at 28 hectares annual assessment by the Carbon Disclosure Project (CDP) and ‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬became one of 160 leading CDP aluminium production capacities companies out of over 4.800 participants seeking to reduce climate risks along the entire supply chain. Also in 2020, RUSAL received the highest CDP Supplier Engagement Rating - the engagement Over 500 kt of companies to reduce CO2 emissions throughout the supply chain. of low-carbon ALLOW aluminium sold Certification under the Aluminium Stewardship Initiative (ASI) Performance Standard and Chain of Custody Standard was achieved for five RUSAL aluminium smelters: Environmental protection USD 88.4 million 16 out of 18 92.6% · Boguchansky aluminium smelter (BoAZ) allocated for environmental of production facilities’ share of circulating and recycled · Bratsk aluminium smelter (BrAZ) protection were certified under ISO 14001 water supply · Krasnoyarsk aluminium smelter (KrAZ) Operational efficiency USD 8.5 million USD37.8 million 1,800 · KUBAL (Kubikenborg aluminium AB) economic effect from economic effect from employees trained in quality · Sayanogorsk aluminium smelter (SAZ) implementing employee implementing Business System management improvement proposals development projects In addition to the certification scope in 2019, which included: · RUSAL’s headquarters Human rights 25% Over 426 0 · Boksit Timana (bauxite mining) of employees are women requests received and addressed human rights breaches reported · Urals aluminium smelter (UAZ alumina refining) through the SignAL hotline · Irkutsk aluminium smelter (IrkAZ) Attractive employer 56,150 7,559 85.5% Now RUSAL can offer its customers primary aluminium and VAPs from eight ASI certified facilities. total headcount at the end employees trained share of employees covered of the year by collective agreements RUSAL was awarded a bronze medal in the EcoVadis Sustainability rating 2020. Work safety 100% 0.18 6 Over 93% The Company improved its performance compared to the previous audit three years ago. of employees are covered LTIFR of identified hazardous by the Health and Safety conditions eliminated management system Social responsibility USD 62.5 million USD 79.5 million 49% of local supplier purchases spent on social programmes spent on anti-COVID-19 measures and charity 6 Including the main contractor LLC ECS RUSSIA 9 SWEDEN Where we operate 19 IRELAND 14 GRI 102-3, GRI 102-4, GRI 102-6, GRI 102-7 20 31 24 15 36 Krasnoyarsk 23 33 17 39 21 27 32 41 34 22 18 16 26 13 12 35 40 Moscow 25 28 30 29 Irkutsk 37 07 38 10 42 08 01 Map conventions GUYANA JAMAICA UKRAINE Aluminium ITALY KAZAKHSTAN Alumina ARMENIA 09 Bauxite 05 03 11 Foil 04 06 AUSTRALIA Powders GUINEA Sikicon Nepheline ore Other business NIGERIA Wheels 02 With a well-established presence across five The Company’s operations are presented by 42 continents, and core assets in Siberia, RUSAL is factories located in 13 countries.
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