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Head Office 102-3, 102-53 Address: 15, 1st Krasnogvardeysky Drive, Moscow, 123100, Russia OUR Phone: +7 495 787 7667 Email : [email protected] Sustainable Development Department Svetlana Ivchenko, Head of Department SUSTAINABILITY Phone: +7 495 786 8390 FAR REPORT 2020 Nornickel on social media facebook.com/NornickelRU twitter.com/NornikOfficial vk.com/nornickel_official youtube.com/user/NornikOfficial instagram.com/nornickel_official NORTH feeds.feedburner.com/nornik/AIDB Norilsk through the eyes of its residents http://norilskfilm.com/ Corporate website www.nornik.ru NORNICKEL 2020 APPROVED by the Board of Directors of PJSC MMC Norilsk Nickel Minutes No. GMK/12-pr-sd dated 23 April 2021 APPROVED by the Management Board of PJSC MMC Norilsk Nickel Minutes No. GMK/6-pr-p dated 7 April 2021 102-32 ABOUT THE REPORT The 2020 Sustainability Report of Nornickel Group During preparation of the Report, there were no Other sources of information about Nornickel Group: (the “Report”) is the seventeenth public non-financial significant changes in the report boundaries and the list of report prepared by MMC Norilsk Nickel and addressed material topics compared to the 2019 Report. 102–49 Corporate website: www.nornickel.ru/ to a wide range of stakeholders. 102–50 The Report contains updates of the data for previous Nornickel’s ESG highlights: OUR The Report conforms to the GRI Sustainability Reporting years, which is indicated in the text. 102–48 www.nornickel.ru/sustainability/esg-highlights/ Standards (Comprehensive option), constitutes a UN Global Compact communication on progress, The content of the Report has been determined in Nornickel’s annual reports: and discloses the Company’s contribution to accordance with the requirements of the applicable www.nornickel.ru/investors/reports-and-results/ the UN Sustainable Development Goals up to 2030 standards and guidelines, with the Company’s (“UN SDGs”). 102–54 stakeholders being engaged in the process. The list SUSTAINABILITY of material topics has been updated to reflect Among others, the Report relies on the following the needs of stakeholders and keep pace with the latest REPORT 2020 documents: GRI Mining and Metals Sector Supplement, trends in reporting. Specifically, it was amended to include FAR Guidance on Social Responsibility ISO 26000:2010, material topics addressed in GRI standards such as GRI Reference Performance Indicators of the Russian Union of 207: Tax (2019), GRI 402: Labour/Management Relations Industrialists and Entrepreneurs (RSPP), Accountability (2016), GRI 406: Non-discrimination (2016) and some Standards AA1000SES (2015) and AA1000AP (2018), the more beyond GRI reporting requirements. For full details UNCTAD Guidance on core indicators for entity reporting about material topics and the procedure for defining on contribution towards implementation of the UN them, please see the Definition of Material Topics Sustainable Development Goals, and recommendations of appendix. 102–46 the Task Force on Climate-Related Financial Disclosures (TCFD) set up by the Financial Stability Board (FSB). Each year, the Company’s Report undergoes external NORTH assurance procedures, including independent DISCLAIMER The Report covers operations of the Norilsk Nickel Group professional assessment of the Report’s compliance companies. For the purposes of this Report, Norilsk Nickel with the GRI Standards and the RSPP public verification The Report discloses the Company’s Group shall refer to MMC Norilsk Nickel and the entirety procedure. 102–56 short-, medium-, and long-term goals, of operations of the Norilsk Nickel Group companies. objectives, and plans. Plans and intentions Unless otherwise specified or required by the context, The Social Policy Department of MMC Norilsk Nickel and are provisional and subject to a number the terms “Company”, “Group”, “Nornickel” or “the Group a dedicated working group comprising representatives of of economic, political, and legal factors companies” shall refer to Nornickel Group. Quantitative the Group’s key companies supervised the preparation of beyond the Company’s control. As a result, indicators for certain areas of sustainable development the Report. The Report has been approved by MMC actual future performance may differ from pertain to the Group’s specific operations in accordance Norilsk Nickel's Management Board and Board of the forward-looking statements contained with the Scope of Data Collection appendix. 102–45 Directors. 102–32 in this Report. NORNICKEL 2020 The incident occurred on 29 May 2020, By October 2020 key stages of clean-up HPP-3 when sudden subsidence of piles led to have been finished: over 90% of spilt fuel depressurisation of the back-up fuel was collected, all contaminated soil was Incident storage facility at HPP-3, causing diesel removed. In the next years the Company fuel to spill. In a short span of time, 21.2 kt plans to continue working to remediate of diesel fuel went beyond the bunding, the affected territory and eliminate the flowing into a designated pit, onto damage done. adjacent grounds, and into the Bezymyanny Stream. The Company estimates Through the Bezymyanny Stream via the Daldykan River, the fuel then reached the the total clean-up costs Ambarnaya River, where containment at about RUB 12 bn. protective booms were quickly constructed. This helped prevent the fuel spill into Lake Pyasino. Occurring far On 10 March 2021, the Company fully paid away from the city, the incident did not the fine imposed by court over the diesel affect day-to-day activities in Norilsk. fuel spill at NTEC’s HPP-3 in the amount of RUB 146.2 bn. Of this amount, RUB Nornickel immediately responded to the 145.5 mln was paid to Russia’s federal fuel spill with a series of clean-up actions. budget and RUB 685 mln went into the An emergency response task force was budget of Norilsk. set up in Norilsk and included representatives of local and regional authorities, Nornickel’s senior management, law enforcement and other government agencies. The clean-up was White conducted in and around HPP-3, in the Paper adjacent areas and waterways. NORNICKEL 2020 Nornickel considers environmental This and other environmental initiatives Environment protection an integral part of all will contribute to an 85% reduction in production processes. We comply with sulphur dioxide emissions in the the applicable laws and international Murmansk Region by the end of 2021. agreements and are committed to The Company contributes to the global reducing emissions, on a phased basis, climate change agenda meeting Russia's and the sustainable use of natural and global economy's growing need for resources. materials to manufacture products that In 2020, Nornickel developed a new can enhance the quality of life and Holistic Environmental Strategy. It facilitate the transition to a low-carbon pinpoints six key areas of environmental and energy-efficient economy. protection and sets the targets Company Currently in the first quartile of the GHG intends to deliver by 2030. emissions intensity curve among global The detailed elaboration and approval of metals and mining companies, Nornickel the Holistic Environmental Strategy by intends to sustain these positions going the Board of Directors is expected in forward. 2021. 2020 saw continued implementation of Sulphur Programme 2.0. In December 2020, we shut down Kola MMC’s smelting shop in Nikel, helping to eliminate 100% of sulphur dioxide emissions in the Russia-Norway border area. Key areas of the Holistic Environmental Strategy1 Climate change Air Water Tailing dumps and waste Ld Biodiversity 1 For more details on the target areas of the Holistic Environmental Strategy, please see the Strategy and Management section. NORNICKEL 2020 In the face of a global challenge — COVID–19 COVID-2019 pandemic, Nornickel 20 RUB took all the necessary steps to protect has been allocated by Nornickel to fight health and safety of its employees and COVID-19 and maintain social stability across efficiently adapt business processes its footprint : to new circumstances. During the lockdown the Company over 372,000 COVID-19 test kits imposed a blanket ban on job cuts, maintained 100% of the salaries at the 150,000 express antibody test kits same level, transitioned office staff to remote work and provided them with all 15 mobile labs the necessary equipment for distant 12 stationary labs work. All the necessary steps were taken to supply all operating assets with 7 ambulance cars individual protective gear and health monitoring devices. about 400 thermal imaging systems The Company took prompt action to 412 ventilators maximise the lockdown of residents personal protective equipment, including across its footprint by allocating more than 10 mln masks considerable resources to support medical institutions, small and medium-sized enterprises, educational institutions, and non-profit organisations. Since the introduction of the lockdown measures and high alert status in March, Nornickel provided substantial sponsorship support to healthcare institutions in the Krasnoyarsk Territory, Murmansk, Saratov, Tver, and some other regions of Russia. The money was used to purchase coronavirus tests kits, ambulance cars, medical equipment, including lung ventilators, disinfectants, and personal protective equipment. 1 In 2020, about RUB 12 bn from this amount was allocated for these purposes, and another RUB 8 bn is reserved in the Group's budget for 2021. Inclusive of VAT. 200 OUR contents GRI Content Index 216 Report boundaries FAR 166 218 Key