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About Norilsk Nickel «CREATING THE FUTURE TOGETHER!» Y C OLI P IAL C ATE SO R PO R T ON CO R REPO IES N OMPA C Report on Corporate Social Policy of Norilsk Nickel Group of Companies Year 2014 NORILSK NICKEL GROUP OF Report on Corporate Social Policy of Norilsk Nickel Group of Companies Year 2014 Contents Statement of the General Director – CHAIRMAN OF THE MANAGEMENT BOARD .......................................................................................4 1. ABOUT NORILSK NICKEL .....................................................................................................................6 1.1. Assets ...........................................................................................................................................................................7 1.2. Awards and achievements ..............................................................................................................................14 1.3. Key indicators ........................................................................................................................................................18 2. STRATEGY AND MANAGEMENT ...................................................................................................... 26 2.1. Company development strategy ..................................................................................................................26 2.2. Mission and priorities .........................................................................................................................................30 2.3. Sustainability management ...........................................................................................................................32 2.4. Responsibility for product quality ................................................................................................................43 2.5. Interested parties .................................................................................................................................................45 3. ECONOMIC EFFICIENCY ................................................................................................................... 50 3.1. Economic results of the activity ...................................................................................................................50 3.2. Investment activity ............................................................................................................................................51 3.3. Transportation activity .....................................................................................................................................53 3.4. Dialog with the shareholders and investors ..........................................................................................54 3.5. Dialog with business community .................................................................................................................55 4. ENVIRONMENTAL RESPONSIBILITY ............................................................................................. 58 4.1. Environmental Management System ........................................................................................................58 4.2. Environmental performance indicators .....................................................................................................60 4.3. Biodiversity conservation .................................................................................................................................69 4.4. Energy saving and energy efficiency ..........................................................................................................70 4.5. Environmental dialogs .......................................................................................................................................73 5. EMPLOYEES AND SOCIAL POLICY ................................................................................................ 76 5.1. Staff composition ...............................................................................................................................................76 5.2. Recruiting new employees ..............................................................................................................................78 5.3. Personnel development ....................................................................................................................................80 5.4. Motivation System ..............................................................................................................................................83 5.5. Industrial and occupational safety ............................................................................................................89 5.6. Dialog with employees .....................................................................................................................................94 6. DEVELOPMENT OF THE TERRITORIES OF OPERATION ......................................................... 98 6.1. Contribution to the Economy of the Regions of Operation .............................................................98 6.2. Charity Programs ...............................................................................................................................................100 6.3. Dialog with Authorities and Population .................................................................................................103 7. ABOUT THE REPORT .........................................................................................................................110 CONTACTS ..................................................................................................................................................113 APPENDIX 1. SUSTAINABLE DEVELOPMENT MEASURES IMPLEMENTATION IN 2014 AND TASKS FOR 2015 .......................................................................................................114 APPENDIX 2. BOUNDARIES OF INFORMATION DISCLOSURE ON MATERIAL SubjectS (aSpectS) Gri G4 ............................................................................................................121 APPENDIX 3. TABLE OF THE REPORT COMPLIANCE TO GRI G4 GUIDELINES, THE RUIE BASIC PERFORMANCE INDICATORS AND ISO 26000 STANDARDS ...............122 APPENDIX 4. LIST OF ABBREVIATIONS USED IN THE REPORT ............................................136 appenDiX 5. liSt Qr-coDeS uSeD in the report ..............................................................138 APPENDIX 6. GLOSSARY ......................................................................................................................139 appenDiX 7. concluSion of rSpp council on non-financial reportS ...........142 APPENDIX 8. INDEPENDENT AUDITOR CONCLUSION ..............................................................147 Interactive version of corporate social responsibility report includes interactive analysis tools for key indicators, videos, interviews, and additional materials. Additional information for shareholders and investors and regular updates of information about Company are available on corporate website. Statement of the General Director – Chairman of the Management Board Good operating and financial of Nickel Plant, social support to its workers will G4-1 results of MMC Norilsk Nickel in be ensured, including training and retraining for employment at other sites of the Company as well 2014 achieved in a complicated as assistance during their move to the “mainland.” international situation, unstable Improvement of health and safety system allowed considerable reduction of the total accident rate environment, and volatility of in 2014. The achievement of a zero fatal accident markets represent a natural rate by 2018 is our key strategic objective. outcome of the Strategy adopted in The tax and nontax payments of the Company to 2013. the budgets of various levels amounted in 2014 to RUB 79.2 billion. The costs for charity and The Company kept improving efficiency with a projects for development of social infrastructure particular focus on work performance and costs amounted to RUB 2.7 billion. The budget for 2015 control. By virtue of accurate fulfilment of the provides for the preservation of existing social objectives set and proper management, we coped and charity liabilities and initiatives, including with threats of the reporting period. A good standing, implementation of the charity program “World of investment attractiveness, access to foreign capital New Opportunities,” which proved its efficiency. The allowed balancing the debt burden of the Company projects and programs for migration, occupational and proceeding to the development of new guidance of youth, and development of significant projects. infrastructure, which are implemented jointly with the federal and regional authorities, will be kept on. In terms of sustainable development, one of the most important objectives for the Company is the The report on corporate social responsibility for reconfiguration of the flow charts, which will allow 2014 is the eleventh report of the Company not only ensuring economic efficiency but mitigating prepared with application of the GRI Sustainability fundamentally adverse environmental effects in Reporting Guidelines. We applied for the first time the city of Norilsk. In 2014, we announced the the new, fourth version of GRI guidelines having restructuring of metallurgical production providing thus confirmed a high level of our transparency. for the accelerated
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