Corporate Social Responsibility Report eport R Ensuring sibility sibility espo n R reliability ocial ocial S orporate orporate C Norilsk Nickel Group’s [ 2015 ] ] 2015 Group’s [ Nickel Norilsk

2015 [ 2015 ] Corporate Social Responsibility Report Inspiring trust 2 [ 2015 ] Corporate Social Responsibility 04 14 26 36 Report Statement About Priorities Responsible 48 Anti-money laundering and of the President, the Norilsk and objectives operations counter-terrorist Chairman Nickel Group financing initiatives of the Management 28 The Company’s development 38 Sustainability 49 Corporate Trust Service Board strategy management 34 Overview of performance 38 Corporate 50 Transparency across CSR focus areas governance

n ts 51 Product responsibility

Contents 42 Remuneration n te o C 43 Risk management 53 Research 06 22 and development framework 46 Corporate security 54 Economic Results and th performance The 80 47 Preventing and eport eport  highlights 2015 anniversary fighting corruption of Norilsk Nickel ibility R ibility s pon s e ial R ial c 56 70 80 98 122 126 Corporate So Corporate Effective Safety Environment Community Awards Appendices

] relationships and accolades

2015

[ 58 Stakeholders and interaction 72 Occupational health 82 Environmental 100 Employees 126 Appendix 1. mechanisms and safety management system and social policy Content Index for “In Accordance” with GRI G4 Guidelines, RSPP Reference Performance Indicators and ISO 26000 58 Dialogue with employees 78 Improvement of social 84 Expenditures 111 Development s 123 and working conditions on environmental protection of local communities 132 Appendix 2. 61 Dialogue with shareholders Identified Material Aspects and Boundaries (GRI G4) and investors 84 Environmental performance 120 Transport accessibility About the report 134 Appendix 3.

kel Group’ 62 Dialogue with business partners 89 Biodiversity conservation GRI G4 Specific Standard Disclosure c i 64 Dialogue with authorities, 92 Impacts from transport

k N 140 Appendix 4. s communities and non-profit and logistics operations List of Abbreviations organisations

oril 93 Impacts from foreign

N 142 Appendix 5. 67 Environmental operations Glossary dialogue 152 94 Energy conservation 144 Appendix 6. 67 Supply chain and efficiency Opinion of the Russian Union of Industrialists responsibility Contacts and Entrepreneurs’ Council for Non-Financial Reporting 150 Appendix 7. Independent auditor conclusion 4 Statement D

T BOAR of the President, Chairman

N , , E M N T E G D E

A of the Management Board N A PRESI E E M H F T H F F T O N O

N T In its anniversary year, Norilsk Nickel once again to a sustainable urban environment. The obsolete Nickel A E M M confirmed its leadership both in the domestic Plant, a major source of air pollution in Norilsk, is not

AIR and international markets despite the turbulent included into the upgrade programme and being shut H STATE C macroeconomic environment. down as scheduled. In 2015, the Company developed and approved a roadmap to reduce air pollutant This largely results from the new development strategy emissions at MMC Norilsk Nickel’s Polar Division up we have been implementing since 2013: it has geared to 2020. The initiative seeks to dispose of elemental

eport eport the Company up to face the industry crisis and deliver sulphur at the Nadezhda Metallurgical Plant and a strong performance. Norilsk Nickel has boasted robust the Copper Plant. returns and exceptionally high dividend yields all along ibility R ibility

s with maintaining one of the lowest leverage ratios in In 2015, the key companies of the Norilsk Nickel Group the industry. The Company remains committed to its tax, and their employees extended the Collective Bargaining pon s

e social and environmental responsibilities and delivers all Agreement maintaining all the existing social investment projects as per the approved schedule and commitments and introducing a number of additional ial R ial

c budget. The Company’s stable performance gave rise staff benefits. The Company pays special attention to to Norilsk Nickel’s tax contributions to the budget at all staff training, further improvements in health and safety levels and ensured funding of environmental initiatives culture and implementation of the highest safety and charitable programmes. New approaches to standards. Complete elimination of fatalities remains employee performance management have paved the Company’s top strategic priority. Corporate So Corporate the way for rises in the average salary even against the backdrop of economic challenges. The key message of Norilsk Nickel’s 80th anniversary

] year was Creating the Future Together. The events of

I would like to reiterate that all this has been achieved the past year served as a proof of this concept, since the 2015

[ through the consistent application of the strategy’s Company’s projects implemented in 2015 are crucial for fundamental principles, including focus on Tier 1 assets, the future of Norilsk Nickel, its employees, people of greater responsibility for the capital and investment Russian towns and cities and Russia as a whole.

s returns, optimisation of the value chain and a decisive drive to cut operating costs.

Norilsk Nickel remains involved in a number of public- kel Group’ c

i private partnership programmes. The Company Vladimir Potanin

k N sponsors significant cultural, social and sports President, Chairman s events across its footprint and seeks to contribute of the Management Board oril N 6 Results and highlights 2015

Ni Сu Pd Pt 506.1 456.0

384.5 2012 300 364 2,731 683 366.2 2015 RESULTS AND HIGHLIGHTS 277.0 238.0 2013 285 371 2,661 651 186.5 159.0 eport eport

93.4 104.1 2014 274 368 2,749 657 67.4 ibility R ibility

s 23.5 pon s e 2015 266 369 2,689 656 2012 2013 2014 2015 ial R ial c [G4-8] REVENUE GROSS PROFIT NET PROFIT ‘000 T ‘000 T ‘000 OZ T ‘000 OZ T RUB BN RUB BN RUB BN Corporate So Corporate

247.3 ] 277.0 218.2

2015 50 506.1 48 974.5 99.8

[ 238.0 456.0 40 159.9 384.5 154.2 77.8 366.2 186.5 153.3 37 739.8

s 637.0 159.0 133.6 614.7 60.8 55.3 98.4 kel Group’ c i 31.0 k N s oril N 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015

REVENUE GROSS PROFIT EBITDA EBITDA DIVIDENDS ASSETS TOTAL CAPEX RUB BN RUB BN RUB BN MARGIN PAID RUB BN RUB BN % RUB BN 8 DIRECT ECONOMIC VALUE THE COMPANY’S POSITION IN THE INDUSTRY [G4-3, G4-4, G4-8] GENERATED AND DISTRIBUTED1 [G4-EC1]

521.2 st PLACE st PLACE rd PLACE th PLACE th PLACE th PLACE 470.8 384.9 1 1 3 4 4 12 367.8 NICKEL PALLADIUM COBALT RHODIUM PLATINUM COPPER PRODUCER PRODUCER PRODUCER PRODUCER PRODUCER PRODUCER 14% 39% 6% 12% 11% 2% OF GLOBAL OF GLOBAL OF GLOBAL OF GLOBAL OF GLOBAL OF GLOBAL 169.5 OUTPUT OUTPUT OUTPUT OUTPUT OUTPUT OUTPUT 158.0 2012 2013 2014 2015 3 2015 RESULTS AND HIGHLIGHTS 87.3 ENVIRONMENTAL INDICATORS DIRECT ECONOMIC 74.4

VALUE GENERATED 38.3 108.3 5.7 RUB BN 3.6 Indicator Unit 2012 2013 2014 2015 58.3 45.7 eport eport

2012 2013 Area of disturbed lands as hа 12,513 12,518 13,322 13,313 at the end of the period4 [G4-MM1]

ibility R ibility 554.2 s 464.9 pon Energy consumption 5 s 414.4 175.7 TJ — 173,955 169,307 176,395 e by Norilsk Nickel Group [G4-EN3] 334.7

ial R ial 162.0 c Total water withdrawal [G4-EN8] mcm 1,319.5 1,348.0 1,417.8 1,421.3 104.5 87.4 Percentage of water reused >90% % 85.7 92.2 92.3 92.6 and recycled6 222.0 Hazard class 5 Corporate So Corporate 165.2 waste 2012 2013 2014 2015 Total wastewater discharge mcm 146.5 146.2 145.6 140.5 (practically non-hazardous waste) ECONOMIC VALUE 2.7 7.0 ] as percentage of total waste 47.6 45.0 DISTRIBUTED 2015

[ RUB BN 2014 2015 23.6 43.5 2.10 2.10 2.09 40.5 2.06 OPERATING EXPENSES 19.0 19.4 s 35.1 18.1 PAYROLL AND OTHER EMPLOYEE 33.6 50.2 REMUNERATION AND BENEFITS PAYMENTS TO PROVIDERS OF CAPITAL kel Group’

c (INTEREST, DIVIDENDS) i 5.9

k N -46.5 -32.9 COMMUNITY INVESTMENTS s AND CHARITY2

oril GROSS TAX PAYMENTS N

2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015

ECONOMIC VALUE TOTAL WEIGHT TOTAL ENVIRONMENTAL RETAINED OF PRODUCTION POLLUTANT EXPENSES AND RUB BN WASTE [G4-EN23] EMISSIONS [G4-EN21] INVESTMENTS [G4-EN31] MT MT RUB BN

3 For Russian operations. 1 The data were calculated on an accrual basis under the IFRS using an in-house methodology developed in line with GRI G4 Guidelines. 4 The 2012–2014 data were adjusted to include Bystrinskoye Mining Company. 2 The calculations do not include CAPEX. 5 No aggregate value was calculated under the GRI G4 Guidelines. 6 Ratio of water recycled and reused to the total volume of water withdrawn for production and domestic needs. 10 SOCIAL INDICATORS Highlights 2015

84.1 85.0 85.6 83.6 84.3 86.3 81.9 82.0 83.0 79.9 83.6 81.6 84.0 82.0 82.3 83.3

Q1 • Norilsk Nickel became • Norilsk and Monchegorsk the general partner of hosted the Arctic Wave • The Company piloted the Science Festival, a key festival of R&D discoveries Stage 1 of Talnakh science promotion event sponsored by the Company. 2012 2013 2014 2015 2015 2016 2012 2013 2014 2015 2015 2016 2012 2013 2014 2015 Concentrator in Norilsk. held in Krasnoyarsk. The festival aims to pro- AVERAGE HEADCOUNT, INCLUDING HEADCOUNT AS AT THE END mote R&D among the youth, The project will help boost • The Company started 2015 RESULTS AND HIGHLIGHTS EMPLOYEES [G4-10] RUSSIA OF THE REPORTING PERIOD, operating efficiency and support innovative thinking 1 making agreements with ’000 FTEs ’000 FTEs EMPLOYEES among schoolchildren, product quality, and bring the employees of Nickel ’000 FTEs and serve as a venue TARGET TARGET environmental benefits to Plant to be shut down in eport eport the town. This event gave to showcase the latest 92.7 2016. These agreements scientific achievements. 84.9 63.1 start to Norilsk Nickel’s 12.1 address employment, ibility R ibility 11.8 s 76.0 75.4 11.3 anniversary celebrations. 68.5 10.7 54.1 retraining and relocation

pon 48.7 47.9 s issues. e • MMC Norilsk Nickel and Rostechnadzor (the Federal Q2 ial R ial • The Government of the c Service for Ecological, Russian Federation issued • Kola MMC’s Integrated Technological and Nuclear a decree granting Norilsk Management System (IMS) Supervision) signed Nickel a subsoil use licence passed the second surveil- Corporate So Corporate 2012 2013 2014 2015 2016 2012 2013 2014 2015 2012 2013 2014 2015 a cooperation agreement to explore and develop aimed at fostering lance audit. AVERAGE MONTHLY STAFF TURNOVER EMPLOYEES COVERED the Maslovskoye Field ]

the parties’ collaboration SALARY % BY TRAINING (platinum-copper-nickel • The Company launched

2015 to improve occupational RUB ’000/FTE PROGRAMMES ores) located in the north of the organisational stage [ ’000 FTEs health and safety and of the project to build a TARGET the Krasnoyarsk Territory. 15.0 reduce accident and injury fibre optic communication

s • Kola MMC and the Lapland rates. line between Novy Urengoy Biosphere Reserve celeb- • In January, the Company’s and Norilsk funded by MMC 9.2 rated the 15th anniversary 8.2 8.0 8.6 kel Group’ INDICATOR 2012 2013 2014 2015 7.3 Head Office launched an Norilsk Nickel (the Com- c

i of cooperation in several SAP-based HR manage- pany set up a project k N

s fields. The key cooperation management company). FATAL INJURIES [G4-LA6] 8 12 8 13 ment system. area is environmental oril N • MMC Norilsk Nickel monitoring and replanting • The Company held a FIFR3 — 0.10 0.07 0.11 2012 2013 2014 2015 2015 2016 and the Government of greenery in the vicinity Manage the Future! EMPLOYEERELATED 3 of the Krasnoyarsk Territory of Kola MMC’s production corporate forum to discuss LTIFR — 0.80 0.48 0.61 SOCIAL  signed a master agreement sites. Norilsk Nickel’s most EXPENSES [G4-13] promising projects and RUB BN on cooperation during the preparation and staging associated challenges. TARGET of the 29th Winter Universi- 1 Hereinafter the indicators are given for the Group’s Russian operations. ade in Krasnoyarsk in 2019. 2 Staff turnover rate factors in voluntary redundancy, dismissals for breach of labour discipline and termination of employment by mutual agreement. 3 FIFR and LTIFR have been accounted for since 2013. 4 The significant rise is mainly due to the social expenses associated with Nickel Plant shutdown. 12 • The Company presented • The Group presented • The Conqueror of the North Q4 • Following its first surveil- • The NORILSK brand the Norilskfilm multimedia a Management Training business game involving lance audit, Norilsk Nickel’s of copper produced by

project hosted at the Development Concept to over 200 students from all • The Company staged a Corporate Integrated MMC Norilsk Nickel was namesake website, where the heads and HR functions over Russia kicked off in series of public discussions Quality and Environmental registered on the London everyone can experience of its branches and oper- Norilsk as part of the Career (Moscow, Krasnoyarsk and Management System was Metal Exchange. Norilsk through the eyes ations located within the Start-Up programme. certified for compliance Norilsk) on the Company’s • Gipronickel Institute’s of its residents. Norilsk Industrial District. with ISO 9001:2008 and • The world’s northernmost initiatives to reduce air quality management system ISO 14001:2004. • MMC Norilsk Nickel and • MMC Norilsk Nickel partici- water park was opened pollutant emissions. was audited and recertified

the global chemical giant pated in the WorldSkills, in Norilsk. • MMC Norilsk Nickel • The Company announced for compliance with BASF announced a major an international skills the winners of the Socially the ISO 9001:2008 • Kola MMC and Pechengastroy became the general partner long-term contract to competition. Responsible Initiatives requirements. implemented an SAP HCM- of the 5th All-Russian 2015 RESULTS AND HIGHLIGHTS supply platinum group Competition staged under based automated Science Festival hosted by • The Company completed metals. As per the contract, the World of New Opportu- HR management system. the Krasnoyarsk Territory. its pilot project to imple- the Company’s products nities charitable pro- Q3 ment the talent pool • Norilsk Nickel implemented • The FabLab, an eport eport will be used by BASF in gramme. Organisations innovation and creativity management framework catalytic converters to a unique social project – from Norilsk, Taimyrsky • Three of the Company’s across Polar Division’s on 25 September 2015, laboratory, was opened ibility R ibility detoxify exhaust fumes Municipal District s nickel brands were regis- in Monchegorsk. mining operations. and in chemical catalysts. the Company opened (Krasnoyarsk Territory), pon tered and listed on the s e a new hydrotherapy facility • The Collective Bargaining Monchegorsk and • The annual corporate • MMC Norilsk Nickel Shanghai Futures Exchange

ial R ial in Zapolyarye Health Resort Agreement signed between Pechengsky District workshop Environmental c and the Federal Customs (SFE). (Sochi). The facility had MMC Norilsk Nickel and its (Murmansk Region) Problems in the Metals Service of Russia entered • MMC Norilsk Nickel been under construction employees was extended received grants for Industry was organised into a cooperation agree- held celebrations since 2010. It is equipped for 2015–2018 maintaining 108 social initiatives. for the Company’s environ- ment to identify cross-bor- th Corporate So Corporate of its 80 anniversary. to provide a wide range all the existing social mental protection staff. der smuggling of metal • NN-INFOKOM, MMC Norilsk of modern healthcare commitments and introduc- bearing materials. • The Company became Nickel’s subsidiary, and the ] services, including ing a number of new an official partner of Government of the Saratov 2015 • The Collective Bargaining a handful of unique employee benefits. [ the Russian Football Union Region signed a social and Agreement signed in promoting youth and treatments. • MMC Norilsk Nickel’s Board economic partnership between Kola MMC and its grassroots football, and an s of Directors approved the agreement aimed at employees was extended official partner of Russia’s Company’s fuel and energy creating over 1,000 new for 2015–2018 maintaining national football team. development strategy. jobs. all the existing social kel Group’ c i • The FabLab, an innovation commitments and introduc- • The Company launched its k N s ing a number of new and creativity laboratory, volunteer programme Plant

oril was set up in Norilsk as part

N employee benefits. of Goodness. of the World of New Opportunities charitable programme. 14 FTEs About the Norilsk The Group’s average annual headcount in 2015, Nickel Group 83,624 including: FTEs

Employees of the Group’s foreign subsidiaries. The Norilsk Nickel Group (the “Group” or the “Group of 1,987 Companies”) is Russia’s leading metals and mining company,

ABOUT THE NORILSK NICKEL GROUP the world’s largest manufacturer of finished nickel and Kola MMC is located on the Kola In South Africa, the Company owns In addition to geology, energy, palladium, and one of the biggest platinum and copper Peninsula beyond the Arctic Circle. a 50% stake in Nkomati, a nickel logistics, and support businesses It is the leading industrial facility producing and sulphide nickel ore (a total of over 80 companies), producers. In addition, the Group’s enterprises produce of the Murmansk Region and processing joint venture2 with the Group comprises Gipronickel eport eport is completely integrated into African Rainbow Minerals. Institute, an R&D facility based cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, the transport infrastructure of in St Petersburg with branches

ibility R ibility the Northwestern Federal District. MMC Norilsk Nickel runs a global in Norilsk and Monchegorsk. s tellurium, and sulphur. network of representative and pon

s In Finland, Norilsk Nickel operates sales offices in Russia, the UK, e Norilsk Nickel Harjavalta (part of China, the USA, and Switzerland. For the purposes of this report, In sales, the Company is focused Assets ial R ial the Group), the country’s only c the Norilsk Nickel Group shall on building long-term strategic nickel refining plant. refer to MMC Norilsk Nickel and relationships with key market The Group’s production units are the entirety of operations forming players. The Company’s customer located in two countries – Russia the Norilsk Nickel Group of base includes around 440 clients and Finland. Companies1. (mostly industrial consumers). Corporate So Corporate Norilsk Nickel sells its products The Group’s core businesses MMC Norilsk Nickel’s core at all key markets, its footprint are based in Russia and have a

] operations are prospecting, spanning 33 countries as at the vertically integrated structure. Two Key metal sales in 2015 by region, exploration, mining, concentration end of 2015. main production sites in Russia are: 2015 % of total sales [G4-9]

[ and processing of minerals along • Polar Division of MMC Norilsk with the production, marketing and Unless otherwise specified or Nickel (“Polar Division”); sales of non-ferrous and precious suggested by the context, the • Kola Mining and Metallurgical

s metals. MMC Norilsk Nickel terms “Company”, “Group”, “Norilsk Company (“Kola MMC”). [G4-6] includes Polar Division, Nickel”, “Group’s enterprises” shall Krasnoyarsk, Murmansk and mean the Norilsk Nickel Group. The Company’s Polar Division is Ni Cu Pt Pd Arkhangelsk Transportation Quantitative indicators for specific located on the Taimyr Peninsula kel Group’ c

i Branches, Norilskenergo areas of sustainable development (Krasnoyarsk Territory) beyond

k N (the Company’s branch), Polar pertain to the Group’s operations the Arctic Circle. It is linked to other s Transportation Branch, Krasnoyarsk as per Appendix 2. regions by inland waterways (the EMEA 46 89 45 54 oril representative office, and the Yenisey River), marine transport N Company’s Head Office. (the Northern Sea Route) and air ASIA transport. 41 – 27 22 The Group’s average headcount in 2015 was 83,600 employees, AMERICA including 2,000 employees 7 – 19 22 deployed in foreign subsidiaries. EURASIAN CUSTOMS UNION 6 11 9 2

1 For details, see Appendix 2, Identified Material Aspects and Boundaries (GRI G4). 2 In 2014, Norilsk Nickel signed an agreement to sell its stake in Nkomati; the deal is expected to be closed by the end of 1H 2016. 16 Polar Division Production chain

GEOLOGICAL R&D REFINEMENT EXPLORATION GLOBAL KRASNOYARSK GIPRONICKEL INSTITUTE (ST PETERSBURG) SALES NETWORK NON-FERROUS WITH BRANCHES IN NORILSK METALS PLANT* SERVICE AND MONCHEGORSK, POLAR DIVISION'S ENGINEERING SUPPORT CENTRE ABOUT THE NORILSK NICKEL GROUP SUBSIDIARIES AND KOLA MMC'S ENGINEERING RESEARCH CENTRE eport eport ibility R ibility s pon s e NORILSK

ial R ial CONCENTRATOR c FIELDS MINES CONCENTRATE PLANTS METAL

COPPER COPPER OKTYABRSKOYE FIELD OKTYABRSKY MINE COPPER ANODES Corporate So Corporate CONCENTRATE PLANT

PLATINUM GROUP METAL ] NICKEL NICKEL TALNAKHSKOYE FIELD TAIMYRSKY MINE 2 CONCENTRATES, TALNAKH 2015 CONCENTRATE PLANT CRUDE SILVER, SELENIUM [ CONCENTRATOR NADEZHDA COPPER CATHODES, PYRRHOTITE NORILSK-1 FIELD KOMSOMOLSKY MINE METALLURGICAL COMMERCIAL SULPHUR, s CONCENTRATE PLANT SULPHURIC ACID

PRIMARY NICKEL, ZAPOLYARNY MINE kel Group’

c COBALT i k N s COPPER-NICKEL oril

N CONVERTER MATTE

KOLA MMC

PRODUCTION OF COPPER- NICKEL SULPHIDE ORES CONCENTRATION PRODUCTION

1 Precious metals produced by Polar Division and Kola MMC are refined at Krastsvetmet (third-party facility) under a tolling agreement. 2 Shutdown of Nickel Plant is scheduled for 2016. 18 Kola MMC Production chain

GEOLOGICAL R&D REFINEMENT EXPLORATION GLOBAL SALES GIPRONICKEL INSTITUTE (ST PETERSBURG) KRASNOYARSK NETWORK NON-FERROUS 1 WITH BRANCHES IN NORILSK AND MONCHEGORSK, METALS PLANT SERVICE POLAR DIVISION'S ENGINEERING SUPPORT CENTRE SUBSIDIARIES AND KOLA MMC'S ENGINEERING ABOUT THE NORILSK NICKEL GROUP RESEARCH CENTRE eport eport ibility R ibility s pon s

e ZAPOLYARNY BRIQUETTES FIELDS REFINERY METAL MINES CONCENTRATOR OF COPPER-NICKEL ial R ial

c CONCENTRATE IN MONCHEGORSK

PLATINUM GROUP ZHDANOVSKOYE SEVERNY BRIQUETTING SECTION METAL CONCENTRATES FIELD MINE OF THE CONCENTRATOR

Corporate So Corporate CONVERTER MATTE FROM ZAPOLYARNOYE KAULA- SMELTING SHOP COPPER CATHODES ] FIELD KOTSELVAARA 2015

MINE [ SEMILETKA COPPER-NICKEL CONCENTRATE CONVERTER CARBONYL NICKEL FIELD

s MATTE FROM POLAR DIVISION KOTSELVAARA- COBALT CONCENTRATE KAMMIKIVI FIELD PELLETISATION kel Group’ c i AND ROASTING SECTION k N

s OF NICKEL'S SMELTING SHOP SULPHURIC ACID oril N

PRIMARY NICKEL

PRODUCTION OF DISSEMINATED SULPHIDE ORES CONCENTRATION PRODUCTION

1 Precious metals produced by Polar Division and Kola MMC are refined at Krastsvetmet (third-party facility) under a tolling agreement. 20 Key investment projects

POLAR DIVISION

Skalisty Mine mine capacity in 2015 + 500 ktpa; total mine capacity following the project completion by 2023 – 2,400 ktpa

Komsomolsky Mine mine capacity in 2015 + 700 ktpa; total mine capacity following the project completion by 2020 – 4,100 ktpa

Taimyrsky Mine mine capacity in 2015 + 800 ktpa; total mine capacity following the project completion by 2022 – 3,900 ktpa ABOUT THE NORILSK NICKEL GROUP

Oktyabrsky Mine mine capacity in 2015 + 1,000 ktpa; total mine capacity following the project completion by 2023 – 5,200 ktpa

Talnakh Concentrator Commissioning of Stage 1 to maintain Talnakh

eport eport upgrade and retrofit Concentrator’s current output at 7.65 mtpa (total ores), reconstruction of the existing flotation capacities KOLA MMC Stage 2 will help increase Talnakh Concentrator's ibility R ibility s Severny–Gluboky Mine Mine capacity in 2015 + 1,000 ktpa; total mine capacity processing capacities to 10 mtpa of rich (Talnakh mines) following the project completion by 2030 – 6,000 ktpa and cuprous (Oktyabrsky Mine) ores, pon

s and boost concentration KPIs e Upgrade of the concentrator's crushing section In December 2015, the Company approved a project ial R ial

c Reconstruction of ore-thermal furnace No. 5 in Smelting Shop to launch Stage 3. Upon its completion, Talnakh Concentrator's output will reach 16 mt Electrowinning of nickel from chlorine dissolved tube furnace nickel powder

Renovation of nickel electrolysis shop No. 1

Corporate So Corporate Reconstruction of Nadezhda Metallurgical Plant and ramping up Electrolytic cobalt production of its pyrometallurgical capacities

Disposal of saline eŽuent from nickel refining Reconstruction of the water recycling system, processing of Copper Plant's nickel slag ] at Nadezhda Metallurgical Plant, launch of a unit to produce sulphite/bisulphite

2015 Production of precious metal concentrates from the residue of chlorine reagents from the Vanyukov furnace waste gases

[ dissolved tube furnace nickel powder Improvements in the stability and reliability of gas supplies to the Norilsk Industrial District

s Development of the Pelyatkinskoye Gas Condensate Field

Replacement of hydroelectric units No. 1–7 at Ust-Khantaiskaya HPP kel Group’ c i k N s POLAR DIVISION oril N Chita project: development of polymetallic Mining facilities development projects – deposits in Trans-Baikal Territory mine development projects Construction of the Kharanorskaya GRES (power plant) – Bystrinskaya substation 220 kV Reconstruction and upgrade overhead power line as part of the Chita project of concentration capacities — key strategic project Integrated project to shut down Nickel Plant — key energy project and expand Kola MMC's refining capacities — completed in 2015 — ongoing in 2016 Energy projects 22 th The Central Committee Norilsk Plant’s facilities started Severonickel Plant (by then part Norilsk Nickel presented The 80 of the USSR Communist Party to use fuel gas produced of Kola MMC) launched its new strategy focusing and the USSR Council of Ministers at the Messoyakhskoye and a pilot cobalt salt production unit. on Tier 1 assets and boosting anniversary resolved to pursue comprehensive Yuzhno-Soleninskoye Fields. The pioneering technology returns on invested capital. 2015 production automation and mecha- was seen as a step forward nisation at the facilities of Norilsk 1970 into the 21st century. 2013

of Norilsk Mining and Metallurgical Plant. 1999 Nickel 1959 ANNIVERSARY 1935 ­­ — TH OF NORILSK NICKEL THE 80 eport eport ibility R ibility s pon s e

ial R ial 1950 1960 c

1940 1970 1980

1930 1990 2000 2010 Corporate So Corporate ]

2015

[

1935 1942 1963 1981 2003 s

In 1935, the USSR Council Minor Metallurgical Plant The first builders arrived Stage 1 of Talnakh Concentrator The Group started of People’s Commissars adopted produced the first batch at the Khantaika River was put on stream. Nadezhda commercial development kel Group’ c

i a resolution to construct Norilsk of electrolytic nickel to embark on the construction Metallurgical Plant produced of its largest Pelyatkinskoye

k N Nickel Plant. for war needs. of the world’s northernmost the first batch of converter matte. Gas Condensate Field. s Ust-Khantaiskaya HPP oril N (currently part of the Group’s Taimyrenergo). 24

Go Show: the world’s northernmost 3D show 2015 In June, Norilsk Nickel held an official and flashmob marked the grand finale of Norilsk At the 11th Corporate Forum, the Company ceremony of cancelling the postage Nickel’s anniversary celebrations, featuring presented the NORILSKFILM multimedia 8,000 participants, 800 dancers, 300 volunteers, stamp commemorating the Company’s The world’s first water park beyond project developed and directed th and kilowatts of lights and sounds. 80 anniversary. Available in all Russia’s the Arctic Circle was inaugurated

ANNIVERSARY by Alexey Pivovarov. The project’s web post offices, it is rather a historical document in the Arena sports TH Anniversary celebrations portal (norilskfilm.com) has become of the time than a common postage stamp. and leisure centre in Norilsk. the world’s first web documentary November OF NORILSK NICKEL THE 80 featuring the city and the Company. Commemorative Water park opening stamp NORILSKFILM September project June

eport eport June ibility R ibility s pon s e ial R ial c Summer Summer

spring Autumn 2015 Corporate So Corporate winter In 2015, MMC Norilsk Nickel turned ] the 80th page in the Company’s remarkable history full of exciting, 2015

[ dramatic, and life-changing events. The Company widely celebrated January April July October its landmark anniversary throughout s the year, honouring its most prominent Upgrade Arctic Wave Festival Vladimir Putin’s Anniversary basketball game completion commendation staff members all over the country, Norilsk and Monchegorsk hosted Moscow hosted a basketball game honouring in Moscow and on the Kola Peninsula,

kel Group’ The refurbished Talnakh Concentrator th c the Arctic Wave festival of R&D discoveries. At the ceremony dedicated to Norilsk the 80 anniversary of MMC Norilsk Nickel,

i on the Taimyr Peninsula and in Trans- facilities were officially commissioned Nickel’s 80th anniversary and to while the Company opened a museum

k N Baikal. The anniversary commemorations s to complete the first stage the Metallurgist Day, Sergey Ivanov, of the CSKA professional basketball club. took place on a nationwide scale, engaging

oril of a major upgrade. Chief of Staff of the Presidential Executive

N nearly all citizens in the communities Office, presented a letter of commen- across the Group’s footprint. dation to the Company from the Russian President. The document signed by The anniversary year was full of excit- Vladimir Putin commended MMC Norilsk ing activities and entertaining events. Nickel’s team “for their valuable contri- Norilsk Nickel not only accepted bution to the development of the metals congratulations and opened gifts, industry and excellent operating results”. but also prepared a lot of presents itself: in 2015, the Company launched and supported a number of large-scale production, social, cultural, science, sports, and media projects. %

26 the Group’s share in Russia’s 12.0 metallurgical production % % ES V the Group’s share the Group’s share ECTI J 2.1 in Russian exports 0.6 in Russia’s GDP ND OB ND A PRIORITIES AND OBJECTIVES AND PRIORITIES eport eport eport eport ibility R ibility ibility R ibility s s pon pon s s e e ial R ial ial R ial c c Priorities Corporate So Corporate Corporate So Corporate ]

2015 and objectives

[ s s kel Group’ kel Group’ c c i i k N k N s s oril oril N N MMC Norilsk Nickel is the world’s largest producer of ready-to-use nickel and palladium 28 4.1. The Company’s Reconfiguration deliverables will Hence, despite a substantial The Company accomplishes its members, social stability, health stipulated by ISO 26000:2010. development strategy include: decline in metal prices, mission through corporate social and safety across its footprint. Norilsk Nickel remains faithful • maintenance of the existing the Company kept implement- responsibility (CSR) towards all to the principles and approaches Approved in 2013, the Company’s production capacities; ing its strategic projects as per stakeholders in three priority areas – In 2005, MMC Norilsk Nickel set out therein by integrating new corporate strategy aims to fully • lower production costs and higher the approved schedule and safety, environment and community. signed up to the Social Charter CSR into its decision-making unlock the potential of the Taimyr metal recovery rates; budget. In Q2 2016, Norilsk Nickel Apart from generating profit, the of the Russian Business, which sets and management processes, and Kola Peninsulas’ resource base, • lower load on the Norilsk Industrial started processing ores at Company seeks to ensure public out key principles of responsible and improving its performance improve operating efficiency and District’s energy infrastructure; Stage 2 of the upgraded Talnakh welfare, sustainable development business conduct. The Company’s across CSR focus areas. [G4-15]

raise the quality of investment and • reduction of SO2 emissions by 15% Concentrator. In March 2016, for local communities and their CSR activities cover all aspects capital management. Norilsk on the back of the concentrator the Company completed Nickel’s key priority is its Tier 1 upgrade and Nickel Plant the reconstruction of Nadezhda assets, as they secure robust shutdown; Metallurgical Plant to be used as Key principles of the Company’s strategy and contribution to sustainable development returns on investments and are • substantially lower pollutant a single nickel feedstock smelting located in the high-potential regions concentrations in Norilsk’s facility. Nickel Plant is being where the Company has a residential area. shut down as per the approved PRIORITIES AND OBJECTIVES AND PRIORITIES competitive edge. Norilsk Nickel As a follow-up to the adopted schedule. In April 2016, the Company Focus on Tier 1 assets • Fulfilment of all commitments to the government, employees and shareholders classifies its assets as Tier 1 if those strategy, the Company’s Board of suspended operations at Sintering • Sustainable development of the Group’s operations in a challenging macroeconomic environment assets are large-scale, generate Directors reviewed and approved Shop and three of the four Smelting over USD 1 bn of revenue and 40% the Human Capital Development Shop’s furnaces. • Ensuring sustainably high margins throughout the asset development life cycle

eport eport of EBITDA margin, and have a life Programme and the Health and • New jobs and higher tax revenues for local budgets cycle of over 20 years. Safety Strategy in 2014, as well as In 2015, MMC Norilsk Nickel Value chain optimisation • Reconstruction and building of new capacities as part of the Tier 1 assets the Sales, Transport and Logistics, approved a Regulation on Strategic development, outsourcing to local construction, assembly and R&D businesses ibility R ibility s By focusing on the development and Fuel and Energy Strategies Planning setting out the strategic • Economies of scale and advanced production technologies of Tier 1 assets, the Company in 2015. planning procedure. In 2016, the pon

s • Maintaining and enhancing the Company’s key competitive edge – efficient e will be able to use the existing Company plans to implement the geological exploration service and geology professionals with an extensive infrastructure more efficiently In 2015, metal prices plunged strategic initiatives aligning some experience in the Taimyr Peninsula and Eastern Siberia ial R ial c and fully unlock its geological and following in the footsteps of other of their elements with the new • Lower environmental impact technological potential to deliver commodities (primarily oil). Average Regulation. optimal margins irrespective nickel, copper and platinum prices Responsibility for the capital and • A foundation for the community development across the Group’s footprint investments returns for decades to come of the market environment. dropped by 30%, 20% and 24% y-o-y, Mission and priorities respectively. The strategic projects’ The Group’s mission is to supply • Efficient investment activities leading to higher tax payments to the budgets

Corporate So Corporate of various levels In 2014, the Company made public KPIs have, however, proved to be mankind with non-ferrous metals its production reconfiguration resistant to the deteriorating making the world a more reliable Social responsibility • Full compliance with the Russian and international standards and requirements

] programme aimed at achieving environment, as the weaker rouble place to live in and helping people • Respect of human rights

economies of scale and mitigating offsets lower prices, and the realise their aspirations for develop- • Zero work-related fatalities 2015

[ the environmental impact on the underlying factors, such as a unique ment and technological progress • Zero tolerance to all breaches of safety Norilsk Industrial District. resource base and a potential to through the efficient use of natural • Keeping the lost time injury frequency rate (LTIFR) in line with the international optimise capacities, operating resources and equity capital. [G4-56] best practices

s expenses and recovery rates, pave • Bringing the volume of pollutant emissions in line with the maximum permissible the way for success. rates, achieving significant air quality improvements in Norilsk’s residential areas • Development and strengthening of the Company’s talent pool

kel Group’ • Providing a favourable environment to unlock the potential of gifted c i and creative employees k N

s • Maintaining social stability across the Group’s footprint oril N

a state commission signed an acceptance certificate for Stage 1 1974 of Russia’s largest Oktyabrsky Mine 30 24 Overview of the target production configuration 24

CONCENTRATORS 2 MINES PLANTS METAL

NORILSK

PRIORITIES AND OBJECTIVES AND PRIORITIES COPPER PLANT COPPER PLANT COPPER CATHODES

POLARDIVISION 7 MINES TALNAKH NADEZHDA METALLURGICAL PLANT SMELTING SHOP PGM CONCENTRATE (reconstruction) (reconstruction) eport eport MONCHEGORSK SITE NICKEL PLANT COPPER CATHODES (reconstruction) ibility R ibility s

pon NICKEL CATHODES

s NICKEL PLANT e ial R ial c KOLA MMC’S NORTHERN CLUSTER (PECHENGANICKEL) NICKEL SALTS

Cu CONCENTRATE Corporate So Corporate

POLAR NICKEL SMELTING 2 MINES HARJAVALTA Au CONCENTRATE CONCENTRATOR PLANT ]

2015

KOLA MMC AND PLANT HARJAVALTA [ Fe CONCENTRATE s kel Group’ c i CHITA k N s BYSTRINSKY MPP BYSTRINSKY

oril CONCENTRATOR N

MINING CONCENTRATION SMELTING REFINEMENT 32 In 2015, the Company presented 2. Break the island mentality: New Norilsk is one of the Com- its vision of the future for the city of • improve the region’s operating pany’s key objectives for Norilsk, the “New Norilsk”. To make environment for new businesses the upcoming decade. Jointly this vision come true, the Company to emerge; with the federal and local autho- will focus on the following corporate • build a fibre optic communication rities, Norilsk Nickel is working priorities: line; towards transforming Norilsk into • environmental protection, • renovate the Norilsk (Alykel) a sustainably developing urban occupational safety, and better Airport’s runway. environment. For detailed infor- working and living standards mation on our achievements, see for the Company’s employees; 3. Improve local infrastructure: the Development of Local Commu- • target investments in social • build convenient social, sporting; nities and Environmental Perfor- programmes; and transport infrastructure mance sections. • enhancing the region’s openness • support public initiatives to and providing incentives for new develop urban infrastructure businesses. [G4-2] jointly with the regional PRIORITIES AND OBJECTIVES AND PRIORITIES authorities. Corporate priorities translate into the business objectives as follows: 1. Promote innovation and boost

eport eport performance: • transform the corporate culture; • introduce innovative employment ibility R ibility

s models; • implement dedicated young pon s

e talent development and retention programmes. ial R ial c

Key CSR regulations Corporate So Corporate

HEALTH AND SAFETY STRATEGY ]

HEALTH AND SAFETY POLICY

2015 SAFETY

[ s ENVIRONMENT ENVIRONMENTAL POLICY kel Group’ c i k N s oril

N CODE OF BUSINESS ETHICS

COMMUNITY CORPORATE RISK MANAGEMENT CONCEPT

QUALITY ASSURANCE POLICY

HUMAN CAPITAL DEVELOPMENT PROGRAMME

ANTI-CORRUPTION POLICY

INFORMATION POLICY REGULATION

CHARITY REGULATION 34 4.2. Overview of performance across CSR focus areas

Priorities Strategic Progress Scheduled and focus areas goals Objectives in 2015 for 2016

SAFETY (For more information, see Safety section, p. 70) Occupational health • Zero work-related fatalities Development of corporate standards + • Continuous LTIFR improvements ES Occupational safety

V Implementation of corporate standards + V and emergency preparedness Certification of new units for compliance with the GOST and international health and safety standards + ECTI J Second party audits (cross-company audits) + V

ND OB ND Independent audit (diagnostics) of safety culture across the Company's production operations + V A Implementation of a health and safety communications plan + V Implementation of the Personnel Training Improvement Programme — V Development of individual line manager plans for the complete and safe discharge of duties — V PRIORITIES Improvements in social and working standards at the • Favourable social and working conditions for the Company’s Overhaul of social facilities + V Company’s production sites employees • Maintenance of the social facilities and their compliance with the applicable requirements

eport eport ENVIRONMENT (For more information, see Environment section, p. 80) Gradual reduction of air pollutant emissions • Mitigation of the Company’s environmental impact through production Production processes in strict compliance with environmental impact limits set for the current year + V reconfiguration and high-tech projects reducing air pollutant

ibility R ibility Consistent reduction of wastewater discharges into emissions and wastewater discharges Implementation of environmental, administrative and technical measures to minimise the environmental impact + V s water bodies of the Company’s operations

pon Development of waste disposal sites Environmental management compliance with ISO 14001:2004, updates in the environmental management documents + V s e Prevention of pollution resulting from sea freighting Participation in events staged under cooperation agreements signed by the Company and environmental protection + V and vessel operation authorities ial R ial c Water consumption optimisation

Biodiversity conservation

Energy efficiency • Reliable and high-quality power supplies to production sites and local Implementation of a programme to upgrade, revamp and replace the Norilsk Industrial District’s power transmission + V communities facilities Corporate So Corporate Implementation of initiatives under the Company's Fuel and Energy Development Strategy + V

Achievement of operating efficiency through resource • Improvements in operating efficiency Implementation of initiatives to improve operating efficiency + V ] saving technologies 2015 COMMUNITY (For more information, see Community section, p. 98) [ Regulatory compliance, including environmental, • Development of the regulatory framework in line with the Company’s Expert review of draft regulations + V labour and tax laws priorities • Minimisation of breaches of law Preparation of amendments and proposals on draft regulations adopted by the federal authorities + V s Identification of non-compliance risks associated with business processes, and risk governance based + V on the mitigation of such risks in line with the Company’s risk profile Excellence in corporate governance and strong • Improving corporate governance framework Preparation and update of documents underpinning the Company's commitment to the best corporate governance + V business ethics practices kel Group’ c

i Quality management • Certification for compliance with ISO 9001:2008, and accreditation Surveillance audits + V required for product exports

k N Certification audits + V s Contribution to the professional and cultural • Strict compliance with staff training laws across the Group’s Excellence in staff training, retraining, and professional development + V

oril development of employees operations N • Stabilisation of the turnover rate Upgrades in the existing distance training system + V Implementation of corporate social programmes + V Talent pool development across the Company’s • Recruitment of highly skilled employees, including those from Provision of career guidance + V footprint the skills shortage list Sponsorship of the local vocational training institutions + V Employee incentivisation • Incentives for the employees to achieve best results under Provision of competitive remuneration + V the business plan in line with the corporate strategy • Individual and team performance improvements Implementation of the performance management framework + V • Labour recruitment and retention • Creation of the talent pool for the effective use of HR resources Creation and development of the talent pool + V Community investments and charity • Maintenance of social stability for the workforce deployed across Construction and maintenance of social infrastructure + V the Group’s operations and footprint Support to vulnerable groups Implementation of charitable programmes + V Payments to budgets and non-budget funds Full and timely payments to budgets and non-budget funds + V

“+” – objective achieved “V” – objective set “—” – no objective 36 S N OPERATIO SIBLE N RESPONSIBLE OPERATIONS RESPONSIBLE RESPO eport eport eport eport ibility R ibility ibility R ibility s s pon pon s s e e ial R ial ial R ial c c Responsible Corporate So Corporate Corporate So Corporate ]

2015 operations

[ s s % kel Group’ kel Group’ c c i i increase in payroll and employee-related k N k N s s 13.8 social expenses in 2015 oril oril N N % The Company sticks to its social increase in environmental expenses and environmental commitments 21.6 and investments in 2015 % despite the challenging global markets

increase in occupational health and safety 41.1 expenses per employee in 2015 38 5.1. Sustainability The preparation of the Corporate 2. Policy for Development and The BD plays the key role in Pursuant to the BD resolution, Meetings of the Board of Directors management Social Responsibility Report, Approval of the Voting Recommen- prevention, identification and Committees are established to are held as and when required, including mapping out essential dations in Respect of the Candi- settlement of internal conflicts preliminarily consider the most but at least once every six weeks. Corporate social responsibility topics to be covered in the report, dates to the Board of Directors between the Company’s manage- important issues and prepare The meeting agenda is set by the is one of the priorities in strategic selecting and approving an (approved in January 2015). ment bodies, shareholders and recommendations to the BD. BD Chairman based on a request development of Norilsk Nickel independent organisation for employees. [G4-37, G4-42, G4-35, To ensure efficiency and proper to convene the meeting, which can Group. The management and providing services of the report In 2015, the Company also G4-45, G4-46] fulfilment of their functions, the be initiated by the BD Chairman or executive bodies of MMC Norilsk certification (audit), is coordinated developed Regulations on the Committees are entitled to consult members, or by the Audit Commis- Nickel and its subsidiaries are in by the units reporting to the Vice Board of Directors’ Committees Pursuant to the Code of Corporate with the Company’s management sion, auditor, Management Board, charge of developing and imple- President for Personnel, Social (approved in February 2016). Conduct and Business Ethics, the bodies, seek opinions of external President, and shareholders jointly menting the policy for various Policy and Public Relations. The BD members shall comply with the consultants, and engage unit holding at least 10% of ordinary aspects of the Group’s corporate Corporate Social Responsibility The General Meeting of Share- highest ethical standards, integrity employees with necessary shares. [G4-47, G4-49] social responsibility, within the Report is approved by the Board holders is the Company’s supreme and accountability, avoid conflicts experience and qualification. scope of their functions and in of Directors of MMC Norilsk Nickel. management body and has the of interests and, in case of such External consultants are appointed In 2015, the BD reviewed on a quar- accordance with the legislation [G4-48] authority to elect members of the conflicts, report them. [G4-41] by the Company upon a Commit- terly basis the Company’s financial RESPONSIBLE OPERATIONS RESPONSIBLE and internal regulations1. Board of Directors, approve the tee’s request; any member of the results, the progress of its strategic Company’s auditor, annual reports, Committee has the right to propose initiatives, management reports on The executive bodies’ activities 5.2. Corporate annual financial statements a consultant to the Committee. results of the HSE activities, and on delivering the Group’s CSR governance3 including income statements (profit reports on operating performance.

eport eport priorities are coordinated by the and loss accounts) of the Company. [G4-50] Board of Directors, the President, The Company continuously The audit commission, controlling and the following executive improves its corporate governance the Company’s financial and ibility R ibility

s committees of MMC Norilsk Nickel: framework to enhance its efficiency economic activities, reports to the the Budget Committee, Charity and ensure compliance with global General Meeting of Shareholders. [G4-34]

pon Management and Control Bodies of MMC Norilsk Nickel s

e Committee, Accident Prevention best practices. Since 2002, the Committee, Investment Committee, Company has been following the The Board of Directors (the BD) ial R ial

c Corporate Governance, Nomination recommendations of the Corporate is in charge of the overall manage- and Remuneration Committee. Governance Code first adopted ment of the Company’s business, by the FCSM/FFMS and then, with the exception of matters that AUDIT GENERAL MEETING INDEPENDENT The Company has developed on 21 March 2014, by the Board fall within the scope of the General COMMISSION OF SHAREHOLDERS AUDITOR and successfully implemented of Directors of the Bank of Russia. Meeting of Shareholders, as Corporate So Corporate the Corporate Integrated Quality Among the key governance specified in the Federal Law On and Environmental Management improvement initiatives imple- Joint Stock Companies and the 2

] System (CIMS) . mented by MMC Norilsk Nickel in Company’s Charter: establishes

2015, development and approval priorities, development strategy, 2015

[ Operational management of by the Board of Directors of the plans and budgets, approves major HEAD OF INTERNAL corporate social responsibility and following by-laws should be and interested-party transactions COMMITTEES OF THE AUDIT sustainable development activities stressed: pursuant to the Federal Law On BOARD OF DIRECTORS:

s at the Group’s foreign enterprises Joint Stock Companies, defines BOARD OF DIRECTORS AUDIT COMMITTEE is carried out by the specific units 1. Policy for Assessing the Board key risks associated with the Com- INTERNAL AUDIT within their functional responsibi- of Directors Performance (approved pany’s operations, and measures DEPARTMENT STRATEGY COMMITTEE lities and include development, in January 2015, first self-appraisal and procedures for managing such kel Group’ c

i adoption, and implementation of the Board of Directors’ perfor- risks. The BD is entitled to give BUDGET COMMITTEE

k N of management decisions. mance carried out in February 2016, instructions to the Company s the results to be reviewed management (recorded in the CORPORATE oril at one of the meetings in 2016); minutes of the BD meetings) N GOVERNANCE, [G4-44] and control their implementation. PRESIDENT MANAGEMENT NOMINATION BOARD AND REMUNERATION COMMITTEE

1 See the corporate website www.nornik.ru, the Investor Relations section, Internal Documents subsection. 2 For details on CIMS, please see the Product Responsibility and Environmental Performance sections. 3 For the purposes of this section, the “Company” shall refer to MMC Norilsk Nickel.

MMC Norilsk Nickel’ Board of Directors approved the Code of Corporate Conduct 2014 and Business Ethics for the Board of Directors 40 Executive bodies of MMC Norilsk Nickel's Head Oce, managing CSR activities [G4-36]

PRESIDENT MANAGEMENT BOARD

Operating Internal Audit Department Non-Industrial Assets Unit of Corporate, HR, Social Policy Executive Director's Unit and Energy Unit Property and Legal Matters* and Public Relations Unit Unit RESPONSIBLE OPERATIONS RESPONSIBLE Investment Corporate Security Unit Energy Department Legal Department HR Department Strategic Planning Department Project Management Department eport eport ibility R ibility s Environment Corporate Security Department Non-Industrial Corporate Department** Social Policy Department Business Development Department pon (Directorate) Assets Department Department s e ial R ial c

Investigation Government Department of Equity Capital, Public Relations Department Investor Relations Department Health and Financial Security Service Relations Unit Compliance, and Prevention and Safety Department Corporate So Corporate of Unauthorised Use of Insider Information*** ]

2015

[ Information Security Federal and Regional Economics and Finance Unit Production and IT Infrastructure Service Programmes Department Department

s Secretariat

kel Group’ Industrial Assets

c Economic Department i Legislative Department Function k N s oril N

Tax Department

* On 29 February 2016, renamed as the Unit of Corporate, Shareholder and Legal Matters; as part of this Unit, the Department of Legal Support Units with activities mainly focused of Projects and Foreign Operations was established. Insurance Department on the following CSR priority: ** Disbanded on 29 February 2016. *** Transformed into the Corporate Relations Department on 29 February 2016. COMMUNITY ENVIRONMENT SAFETY 42 The BD is formed by the General Since 2015, the Company has 5.3. Remuneration 2 The total remuneration amount paid Pursuant to the Corporate MMC Norilsk Nickel’s key risks are Meeting of Shareholders1. In implemented the Professional out to the Company’s governance Governance Code recommended by described in the Group’s 2015 accordance with the applicable Development Policy for the The amount of the annual remu- bodies in 2015 (including salaries, the Bank of Russia and in order to annual report. Hence, this section Russian legislation, the right to Members of the Board of Directors, neration paid to the members of bonuses, commissions, benefits ensure uniform methodology and of the Report refers to our key propose candidates for election to based on the analysis of global and the Board of Directors is deter- and/or reimbursement of expenses, coordinate risk management non-financial risks associated the Board of Directors of joint-stock national best practices for mined by a resolution of the as well as any other consideration) activities, the Company has with the Company’s CSR priorities: companies incorporated in the corporate governance. [G4-43, General Meeting of Shareholders was RUB 2,706,052,000. established the Risk Management safety, environment, and Russia is granted to shareholders G4-41] and includes base remuneration Service3. community. jointly holding at least 2% of a paid to the BD members, compen- The Company’s key performance company’s voting shares. Infor- In accordance with global corpo- sation of expenses incurred by the indicators (KPIs) embrace achieve- At MMC Norilsk Nickel, risk Risk insurance mation on nominees to the Board of rate governance practices and directors in discharge of their ments in corporate social responsi- management involves identifying In addition to primary methods Directors, sent to the shareholders recommendations of the Code of duties, and additional remuneration bility, safety, operating efficiency, and assessing risks, developing of non-financial risk management, in the form of the candidate Corporate Conduct adopted by the paid to the committee members capital management, corporate measures to mitigate them, and the Company applies risk insurance questionnaire, shall present details FCSM/FFMS, independent and chairs. [G4-51] development and production monitoring the implementation mechanisms, wherever reasonable of the candidates as per the directors have been elected to the performance. of these measures. and possible. For example, to RESPONSIBLE OPERATIONS RESPONSIBLE Company’s Charter, including the Board of Directors of Norilsk Nickel Determination of remuneration and mitigate technical and production list of offices held by the candidate since 2002. For determination of compensation amounts payable to KPI sheets are designed all the way The Company’s risk management risks, the Company has developed in the management bodies of other independence of the BD members the Management Board is reserved down to the shop manager level and framework embraces all risk types a Comprehensive Insurance legal entities and the number of in 2015, the Company used the to the Board of Directors. These are not simply a tool for monitoring and categories, including: Programme, which covers risks

eport eport shares in the Company held by the most conservative criteria stipu- amounts are linked to the Com- strategic and operational objec- • strategic risks; associated with its production candidate. [G4-40] lated with the Code of Corporate pany’s financial (such as EBITDA) tives, but serve to build a transpa- • technical and production risks; activities. Governance approved by the Board and non-financial (lower workplace rent incentive and performance • reputational risks; ibility R ibility

s In the reporting year, the compo- of Directors of the Bank of Russia. injury rates, interaction with assessment system. KPIs used for • legal risks; The insurance coverage of sition of the Board of Directors stakeholders, update and support assessing performance of production • environmental risks; environmental risks is regulated by pon s

e changed following the Annual The President and the Manage- of the corporate strategy) metrics. unit heads include production • financial risks; Russian laws and the 2001 Bunker General Meeting of Shareholders ment Board are the Company’s sole [G4-52, G4-53] and financial indicators, as well as • health and safety risks; Oil Convention, and is part of the ial R ial

c held on 13 May 2015. The Board and collegial executive bodies in achievements in workplace health • HR management risks; insurance coverage of civil liability of Directors includes renowned charge of managing the Company’s Remuneration amounts payable to and safety. • social risks. for damage caused by substandard global experts with many years day-to-day operations. In the the members of the Management work affecting safety of permanent of experience in mining. As at reporting period, the position of the Board and to the President are set In 2015, the Company continued facilities. the year-end, the BD consisted of Company’s sole executive body, forth in their employment contracts 5.4. Risk management its effort to further improve its risk Corporate So Corporate 13 members, including 2 members the President, was held by Vladimir approved by the Board of Directors. framework management framework, with the Based on the Company’s elected for the first time and Potanin. He also performed the following focus areas: collection regulations, management of HR,

] 1 executive member. One of the BD functions of the Chairman of the The dismissal policy for top MMC Norilsk Nickel has and analysis of information on risks health and safety risks includes

members is female. The average Company’s Management Board. executive officers does not differ implemented and is continuously across the Group, including the providing voluntary health and 2015

[ time in office for the BD members from the dismissal policy for other developing a framework for Head Office, business units and personal accident insurance. is 3.3 years. The average age of the For more details on the members employees. managing the Company’s risks. Risk subsidiaries; preparation of BD members is 46 years. The of the Board of Directors and management processes cover all consolidated reports on risks;

s Chairman of the BD is an indepen- the Management Board, and on business areas and management formulation of risk management dent member non-executive the President, see the Corporate levels with a view to maintaining guidelines; development of internal director. [G4-39] Governance section of the overall exposure within the cooperation and information interactive version of MMC Norilsk Company’s risk appetite profile. exchange channels as regards the kel Group’ c

i Nickel’s 2015 annual report. [G4-38] Company’s risks and risk manage-

k N ment activities. s oril N

1 For more details, please see the Policy for Development and Approval of the Vote Recommendations on Candidates to the Board of Directors of PJSC MMC Norilsk Nickel on the corporate website www.nornik.ru, in the Investor Relations section. 2 For the purposes of this section, the “Company” shall refer to MMC Norilsk Nickel. 3 Since 27 March 2016, risk management functions have been carried out by the Internal Audit Department.

Norilsk hosted a nationwide MMC Norilsk Nickel was awarded a medal and a certificate of merit of the 12th workshop (conference) to share Moscow International Energy Forum for the implementation of innovative 1962 expertise in permafrost construction 2014 technical solutions in Norilsk in an abnormally hot summer of 2013 44 Key non-financial CSR risks [G4-2, G4-EC2]

Risk Risk description Key risk factors Risk management actions Key regulations

Health The Company is exposed to health and • occupational accidents and incidents; To prevent these risks and mitigate the potential negative impact, the Company has • Health and Safety Strategy and safety risks safety risks in all its businesses, including undertaken a number of health and safety projects, including the following measures: • employees falling from heights; • Health and Safety Policy

S exploration, production, transportation, • enhancement of methodological support; N logistics, and power supply. • rockfalls in mines; • corporate health and safety standards • ongoing identification of key risk factors; • injuries associated with energy sources (electricity, • Social and Working Conditions Standard heat, etc.); • development and implementation of risk mitigation measures; For more details, see the Safety section.

OPERATIO • vehicle and pedestrian collisions; • ongoing control over compliance with the corporate standards; • injuries of employees with less than three-year • employee training. SIBLE experience. N

Environmental risks The Company’s production operations are • excess pollutant emissions and discharges; As part of its Environmental Policy, the Company: • Environmental Policy

RESPO associated with the potential environmental • excess waste disposal (hazard classes 1–5); • develops guidelines, procedures and regulations; • plans for reducing pollutant emissions and pollution risk, which, in case of a major discharges impact, can lead to civil and administrative • accidents and incidents at hazardous production • develops and approves plans for reducing pollutant emissions and discharges; liability, reimbursement of damages, and facilities, causing environmental pollution. • remedial action plans penalties imposed on the Group. • implements production control to ensure compliance with environmental plans and standards; For more details, see the Environment section. eport eport • approves admissible impact limits for every production site and ensures their mandatory consideration when developing mid-term and current production plans; • develops and updates remedial action plans. ibility R ibility s HR and social The risk of lacking qualified personnel • limited labour resources in the Norilsk To mitigate these risks, the Company: • Human Capital Development Programme pon

s policy risks to meet production plans Industrial District; e • formulates and updates policies and procedures as regards HR management, • collective bargaining agreements between the • increased demand for highly skilled workers social development and corporate culture; Group’s companies and employees

ial R ial and specialists with expertise required c • undertakes measures to recruit and retain highly skilled professionals • Regulation on HR Segmentation by the Company. (including the social benefits package); • Code of Business Ethics • provides competitive remuneration, including salaries For more details, see the Employees and performance-based bonuses; and Social Policy section. • incentivises people to stay with the Company and develop professionally within it; Corporate So Corporate • has developed and implemented programmes to form a talent pool and provide personnel training and development; • has established community liaison offices and the Corporate Trust Service; ]

• implements financial support programmes for former employees and their families. 2015

[ Climate change risks

Soil thawing risk Loss of bearing capacity of pile foundations, • active anthropogenic impact on the Norilsk To control this risk, the Company has undertaken the following measures: As part of cooperation with the Advisory Board

s deformation of buildings and structures Industrial District’s permafrost soils over for Preserving Stability of Buildings and Structures • ongoing monitoring of the condition of foundation beds for constructions leading to their destruction the past 80 years; under the Head of the Norilsk City Administration, built on permafrost; the Company actively participated in developing the • thawing of soils, ice bands and lenses; • geodetic control of changes in buildings positions; Programme for Stabilising Permafrost and Ensuring • increased depth of seasonal thawing. Safety of Buildings and Structures in Norilsk, presented

kel Group’ • monitoring of soil temperature near buildings foundations; by the Administration of the Krasnoyarsk Territory c i • monitoring of the facilities’ compliance with operational requirements at the meeting of the State Commission for Arctic

k N for crawlspaces; Development in October 2015. s • development of recommendations and corrective action plans to ensure safe oril operating conditions for buildings and structures. N

Risk of insufficient In 2013, for the first time since the start of • unpredictable possibility of another abnormal The Company is constantly monitoring the risk factors: — water resources the Taimyr Peninsula’s industrialisation, the drought in the Norilsk Industrial District. • by collecting hydrometeorological data from expert organisations on a weekly basis; Norilsk Industrial District saw a drought*. • by regularly inspecting the Norilskaya River’s hydrological regime. While it was clearly an abnormal natural phenomenon which was not repeated in 2014 If the estimated values of the monitored indicators reach certain critical levels, or 2015, the possibility of it happening again the Company is prepared to take measures to provide for water supply in the future cannot be excluded. from additional sources in a timely manner by either using the underground water or water from the Yenisei River (delivered by pipeline).

* The Norilsk Industrial District is located in a region characterised by high humidity, with incoming moisture exceeding evaporation. Earlier, precipitation in July and August was always above the yearly average, but in 2013, the dry winter and the short-term early-spring floods led to a drought that continued for over three months. That resulted in the water level in the only surface water source in the region, the Norilskaya River, dropping by five metres, which put the work of the two main water-intake facilities supplying water to production sites and city residents at risk. Due to the immediate measures involving comprehensive hydrological and geodetic works at the Norilskaya River, the water level was preserved and a water supply emergency avoided, which was the result of joint efforts of the Krasnoyarsk Territory authorities and MMC Norilsk Nickel. 46 5.5. Corporate security The corporate security system is Development and implementation 5.6. Preventing and Pursuant to the Anti-Corruption eliminating corruption risks for structured and managed based on of comprehensive corporate fighting corruption1 Charter of the Russian Business, certain business processes with The comprehensive corporate a number of targeted programmes security measures across the MMC Norilsk Nickel introduces a high probability of corruption security measures at MMC Norilsk on economic, corporate, infor- Group is within the competence of The Company’s strategic goals dedicated anti-corruption pro- offences (procurement, relations Nickel are aimed at ensuring safe mation, facility, and transportation the Corporate Security Unit, acting focus on maintaining the trust and grammes based on the Charter with counterparties, business uninterrupted production, logistics, security. The Company is actively in line with Russian laws, applicable interest of shareholders, investors, and set forth in the Company’s partners and other third parties, transportation and other oper- engaged in public-private partner- international regulations, internal partners, employees, government, Anti-Corruption Policy. charity, sponsorship, etc.). [G4-S03] ations and functioning of the ships to maintain high security standards and guidelines. Russian and international business critical infrastructures, as well levels and enhance social stability communities, and society in general Seeking to establish business The internal anti-corruption as at preventing embezzlement and in the regions of operation. For details, see the following with regard to the Group’s oper- cooperation with partners committed regulations include the following in-house corruption, and counter- sections: Dialogue with Authorities, ations. Therefore, corruption of any to anti-corruption activities, the documents: ing illicit trafficking of precious Communities and Non-Profit nature is absolutely unacceptable. Company implements measures to • Code of Business Ethics (adopted metals and metal bearing materials. Organisations, Employees and promote anti-corruption principles by by a resolution of the Board of Social Policy, Preventing and The Company ensures compliance including anti-corruption clause in its Directors); Fighting Corruption. with applicable Russian and contracts, and improves counter- • Code of Corporate Conduct and RESPONSIBLE OPERATIONS RESPONSIBLE international anti-corruption laws party due diligence procedures. Business Ethics for the Board of in accordance with such key Directors (adopted by a reso- Corporate security focus areas regulatory documents as the United To develop and control anti- lution of the Board of Directors); Nations Convention against corruption measures and preventive • Regulation on the Product Focus areas Potentially involved stakeholders eport eport Corruption ratified by the Russian procedures, Norilsk Nickel has Procurement Procedure for Ensuring safety and integrity of the Group's property Shareholders and investors Federation, Federal Law No. 273-FZ established a dedicated business MMC Norilsk Nickel’s Enterprises Federal and regional authorities On Combating Corruption, Presi- unit, the Department of Equity (approved by the CEO’s order); ibility R ibility

s Business partners dential Decree No. 226 On the Capital, Compliance, and Prevention • Procedure on the Corporate Trust Ensuring anti-terrorism and anti-sabotage security Federal and regional authorities National Anti-Corruption Plan for of Unauthorised Use of Insider Service of MMC Norilsk Nickel pon

s of the Group's critical infrastructures 2 3 4 e 2014–2015 , the Criminal Code Information . Its areas of responsi- (approved by the CEO’s order ); Preventing embezzlement and illicit trafficking of semi-products Local communities of the Russian Federation, the US bility include identifying and • Anti-Corruption Policy of ial R ial containing precious metals c Federal and regional authorities Foreign Corrupt Practices Act of documenting risks related to MMC Norilsk Nickel (adopted Ensuring information security across the Group Shareholders and investors 1977 (FCPA), the UK Bribery Act corruption, developing risk by a resolution of the Board of Business partners 2010, and the Council of Europe management measures and Directors); Monitoring contractors' compliance with Russian laws, including their Shareholders and investors Criminal Law Convention on controlling their implementation. • Regulation on Information anti-money laundering and counter-terrorist financing initiatives; Business partners Corruption ratified by the Russian In addition, certain responsibilities Security at MMC Norilsk Nickel’s Corporate So Corporate Federal and regional authorities Federation. [G4-15] as regards detecting and preventing Head Office (approved by the corruption activities are assigned CEO’s order); Ensuring confidentiality and protection of contractors' personal Business partners

] The Company consistently imple- to the Corporate Security Unit. • Regulation on the Prevention information Ensuring protection of employees' personal information Employees ments the Management Board’s and Management of Conflicts of 2015

[ resolutions on the compliance Corruption risk management Interest at MMC Norilsk Nickel Preventing corruption Shareholders and investors framework focusing on anti- includes identifying, analysing, (approved by the President’s Russian and international non-profit organisations corruption priorities, key actions limiting and eliminating causes and order); Business partners s and the role of the management conditions leading to corruption. • Regulation on Business Participating in agenda formulation and activities of Russian and Russian and international non-profit organisations bodies. The Company has developed a set Gifts Exchange (approved international organisations for increasing safety in precious metals Federal and regional authorities production and trade, and combating illicit trafficking of raw materials of measures on mitigating and by the President’s order). for these metals and transnational crime kel Group’ c

i Implementing anti-drug measures Federal and regional authorities

k N Local communities s Ensuring observance of human and civil rights and freedoms Employees

oril Local communities N

1 For the purposes of this section, the “Company” shall refer to MMC Norilsk Nickel. 2 The Presidential Decree dated 1 April 2016 approved a new national anti-corruption plan for 2016–2017. 3 Transformed into the Corporate Relations Department on 29 February 2016. 4 A new Procedure approved on 14 March 2016; for more details, see the interactive version of this report.

MMC Norilsk Nickel developed MMC Norilsk Nickel was one of the first a comprehensive corporate major companies to join the Anticorruption 2014 security framework 2014 Charter of the Russian Business 48 All anti-corruption measures are The Company has established 5.7. Anti-money laundering 5.8. Corporate Trust The key principles underlying the After a report is registered by an implemented in the Company and uniform requirements for all and counter-terrorist Service Corporate Trust Service include operator, it takes the Corporate its standalone business units, and employees on presenting and financing initiatives1 guaranteed confidentiality for Trust Service an average of 21 days are also recommended to the accepting business gifts, which In February 2010, the Company everyone who do not wish to to complete its business process Group’s subsidiaries. The Com- are set forth in the Regulation on As required under Federal launched the Corporate Trust disclose their personal data, and and have the investigation results pany’s anti-corruption initiatives Business Gifts Exchange approved Law No. 115-FZ On Anti-Money Service. It helps Norilsk Nickel’s timely and unbiased consideration reviewed by the Head of the are regularly covered in official by the Order of the Company’s Laundering and Combating management promptly respond to of all reports irrespective of the Corporate Trust Service. The press releases. The Company President in December 2015. the Financing of Terrorism dated reports of abuses, embezzlement position and employment period of exceptions are reports that require ensures functioning of the 7 August 2001, the Company and other violations. [G4-57, G4-58] the person mentioned therein. immediate actions or additional Preventing and Fighting Corruption The Company provides ongoing implements a set of anti-money investigation. page on the corporate website training on anti-corruption matters laundering and counter-terrorist The Corporate Trust Service covers www.nornik.ru and the relevant for its personnel. In September financing initiatives (“AML/CTF”). all of the Group’s companies section on the Company’s intranet 2015, the Group held an advanced located in Russia. Any stakeholder Applications received and processed in 2012–2015 portal. [G4-S04] training course On Preventing The main document regulating the can report actions that will or might Corruption for 43 employees. Company’s procedures for AML/ result in financial damages or be RESPONSIBLE OPERATIONS RESPONSIBLE One of the important aspects of Norilsk Nickel employees regularly CTF monitoring is the Internal detrimental to the business 1,092 corruption prevention is introduc- participate in round tables, Control Rules on Anti-Money reputation of Norilsk Nickel. ing anti-corruption standards for conferences, and expert group Laundering and Counter-Terrorist 955 909 employees into the Company’s meetings held as part of various Financing developed in compliance For everyone wishing to make

eport eport corporate culture. To foster the well-established events addressing with the Federal Law requirements. a report, a toll-free hotline highest standards of ethics, major challenges in corruption is available 24/7: reports integrity and accountability, the prevention. The key principle underlying the are accepted by phone at 656 ibility R ibility

s Company implements the Code of Company’s AML/CTF monitoring +7 800 700 1941 and Business Ethics for Employees and All of the Company’s employees practices is the engagement of all +7 800 700 1945 and by pon s

e the Code of Corporate Conduct are familiarised with the corporate employees, within their compe- email at [email protected]. and Business Ethics for the Board anti-corruption regulations, with tences, in identifying signs of ial R ial

c of Directors. each employee signing an money laundering and terrorist Information about the Corporate 24 102 102 individual agreement setting out financing activities in contractors’ Trust Service is available on the 11 301 71 45 One of the key anti-corruption their obligations in the area. operations, and also in identifying Company’s intranet site and official 255 229 23 42 measures is timely detection of operations subject to mandatory webpage. To raise awareness 206 152 164 possible conflicts of interest and To further improve the existing control. about the service, the Company 119

Corporate So Corporate 89 prevention of those. The Company compliance procedures, in 2016, includes its logo and all the takes measures aimed at eliminat- the Company plans to introduce At all stages of signing contracts relevant information into its 2012 2013 2014 2015

] ing possible financial and/or other initiatives on anti-corruption and performing transactions, the corporate calendars, posters,

personal gain through the abuse of monitoring, internal documents Company carries out comprehen- and salary slips.

2015 Received In process as at the beginning of the period

[ office by the Company’s employees review, counterparty due diligence sive analyses of all contractors, or their family members. As part of enhancement, and online training assessing their reliability and Report statistics with a breakdown Accepted for investigation Settled (confirmed) the Regulation on the Prevention for staff members, as well as to identifying persons and entities by the Group’s facility and subject

s and Management of Conflicts establish a permanent collegial involved in extremist or terrorist matter are submitted to the Audit Settled (not confirmed) of Interest, the Company has body, the Conflict of Interest activities. Committee of the Board of approved the Standard Declaration Commission, to boost conflict of Directors and the Company’s form for reporting conflicts of interest management efficiency relevant internal units on a kel Group’ c

i interest, to be filled in by candi- and further develop corporate quarterly basis.

k N dates applying for vacant positions culture. s or by the Company’s employees

oril whenever required. N

1 For the purposes of this section, the “Company” shall refer to MMC Norilsk Nickel.

the Company launched its Corporate Trust 2010 Service 50 In 2015, the total number of reports 5.9. Transparency The Company prepares press To raise awareness about MMC Norilsk Nickel’s commercial Customer satisfaction decreased compared to 2012. releases to announce all material the corporate anniversary, products (electrolytic nickel as monitoring However, the number of reports MMC Norilsk Nickel has the corporate events to the Russian the Company’s Public Relations full-plate and uncut cathodes, Consumers of the key products are that resulted in investigations went Information Policy Regulation in and foreign media, and corporate Department implemented a number primary nickel, copper cathodes, surveyed about their satisfaction up from 13% to 39%. place that sets forth the procedures news is regularly published on the of meaningful communications and metallic cobalt) are certified on an annual basis, and those of for the Company to provide its official website and profiles in the projects that reached out to a wide in the GOST R certification system sulphuric acid, once every three Starting 2015, as required by stakeholders with information social media. Also, there are press audience. to demonstrate compliance with years. Compliance with contract Federal Law No. 273-FZ On relevant for making investment and conferences and briefings held by all applicable rules and regulations. terms is regularly audited and Combating Corruption dated management decisions. In doing the Company on a regular basis. As one example, 80.ttelegraf.ru The certification confirms that the analysed to make sure all contract 25 December 2008 and by the so, Norilsk Nickel goes beyond the In 2015, more than 4,800 interviews, published the most exciting 2015 products have stable properties set terms and conditions are met in full. Anti-Corruption Policy of MMC mandatory disclosures required by speeches and statements of Norilsk milestones of Norilsk Nickel’s forth and tested during the GOST R Norilsk Nickel, reports tagged in the Russian law and demonstrates Nickel top managers appeared in corporate history, along with voluntary certification process. the statistics as Abuse of Office its commitment to openness and the media, and there were more interesting facts about the Corporate quality were reclassified to Corruption transparency in communications. than 76,500 news items published Company and its regions of On 2 December 2015, copper management training in 2015, and Production Related Abuses. about the Company, such as operation. The website was visited cathodes produced by Polar number of people trained RESPONSIBLE OPERATIONS RESPONSIBLE production and financial releases by users from 60 countries Division received the first ever about the Company, publications worldwide. registration on the London Metal Reports received in 2015 Reports confirmed in 2015 about its growth plans, social Exchange under the NORILSK (by type), (by type), initiatives, environment, and The Company also launched brand. On 29 June 2015, nickel of

eport eport 255 reports in total development of the regions of norilskfilm.com dedicated to the the NORILSK COMBINE H-1 brand 25 47 45 reports in total 33 [G4-EN34, G4-LA16, G4-SO5, G4-SO11] operation. multimedia project of the same was registered on the Shanghai 20 name and offering an opportunity Futures Exchange. 20 ibility R ibility

s A special year for the Company, to look into Norilsk the way locals 2015 marked the 80th anniversary see it, the website received the Nickel branded as NORILSK pon s

e of MMC Norilsk Nickel, with a lot of Runet Award in the Culture, Media, COMBINE H-1Y and NORILSK 9 10 3 1 18 exciting activities to celebrate the and Mass Communications COMBINE H-1, along with cobalt ial R ial 3 c 9 date, These included an exhibition category. The project became branded as NORILSK K1AY and 3 of unique photos by Soviet and the world’s first ever interactive NORILSK K1A, was also registered 10 94 17 Russian photographers called snapshot of both the city and the on the London Metal Exchange. 613 16 3 8 Decades of the Norilsk Combine Company. Combining the features and held at the Multimedia Art of a documentary and a website, Kola MMC’s products (nickel, Corporate So Corporate 28 Museum in Moscow and the Arts it contains lots of 360 degree copper, cobalt, cobalt concentrate, 5 Gallery in Norilsk, an anniversary panoramic views of the Far North. precious metal concentrates, and Head Office

] postage stamp Norilsk Nickel, sulphuric acid) do not require 61 10 Scientific Discovery Festivals mandatory certification and are not 2015

Polar Division

[ in Norilsk and Monchegorsk, 5.10. Product responsibility certified against Russian regulatory seminars, conferences, marathons, standards. At the same time, Kola Polar Transportation Branch contests, special projects, award MMC Norilsk Nickel is efficient in MMC’s cathode nickel brands of

s Payroll abuses Breach of job description ceremonies, sports shows, new its production operations to give SEVERONICKEL H 1Y and Murmansk Transportation Branch community facility launches, volumes, quality, and product SEVERONICKEL H-1 are registered Production related abuses Labour disputes 1 exhibitions of production range that meet market demand on the London Metal Exchange and Kola MMC equipment, parades, and while fully complying with all Shanghai Futures Exchange.

kel Group’ Technology and safety abuses Social issues c i performances by Russian pop regulatory requirements in regions Gipronickel Institute

k N artists, combined with other events of operation and adhering to all

s Corruption Abuse of office united by the key message of applicable HSE standards.

oril the anniversary year: Creating

N Commercial and contractual abuses Embezzlement the Future Together.

1 The Company’s products, when used as intended, fall in the category of those that change their properties almost completely: nickel is used as alloys; copper is mostly used in construction and manufacturing of electric and electronic devices; platinum and palladium as combinations are mainly used in manufacturing of autocatalysts; and nickel salts are used in various industries.

the Company released the first TASS opened issue of NORILSKSTROYEVETS, its news office 1939 a mass circulation paper 1998 in Norilsk 52 Corporate Integrated Quality and Environmental Management System (CIMS) The main criterion for customer 5.11. Research The R&D Panel focuses on satisfaction is maintaining or and development the following activities: exceeding the target satisfaction • developing and fostering the level (2.5 points or above). Key Norilsk Nickel’s R&D activities are Company’s R&D potential and customer satisfaction surveys must focused on research, technological providing R&D support to GOALS IMPROVED BUSINESS EFFICIENCY cover at least 50% of the Compa- development and feasibility studies implement Norilsk Nickel’s AND OBJECTIVES COMPETITIVE PRODUCTS AND SERVICES ny’s total product sales. In 2015, aimed at successful implemen- approved Metals and Mining customer satisfaction level1 tation of the Company’s updated Strategy; ALIGNMENT WITH CONSUMER NEEDS AND DESIRES RELATED TO PRODUCT SAFETY, reached 2.69 points considerably strategy. • consulting the Company’s QUALITY, AND RELIABILITY OF SUPPLIES exceeding the target level management bodies on rational while staying slightly below The Group’s main R&D facility approaches to the Production the 2014 performance. is Gipronickel Institute, one and Technical Development of Russia’s largest research Strategy formulation, production QUALITY ASSURANCE POLICY In 2015, the Company received centres for mining, metallurgy, efficiency and environmental 20 complaints about its product concentration and processing safety improvement, production RESPONSIBLE OPERATIONS RESPONSIBLE ENVIRONMENTAL POLICY quality, achieving out of court of minerals. Experts from dozens operations upgrade and product KEY REGULATIONS settlement for all of them taking into of research and engineering competitiveness enhancement; HEALTH AND SAFETY POLICY account the interests of consumers companies and from Russian • providing expert opinions on the (11 complaints were deemed universities participate in academic novelty and feasibility

eport eport unfounded). For all legitimate the Institute’s projects. of technical solutions used in complaints (9 incidents), and also proposed investment projects. partially for complaints that were The Company’s R&D activities ibility R ibility

s ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 turned down (3 incidents), the are regulated by the RTD & FS The Company supports employees’ Company developed remedial Programme (Programme for innovation and improvement pon s

e KEY INTERNATIONAL actions. Research, Technological Develop- initiatives. To mark the 80th RULES AND REGULATIONS OF THE EUROPEAN UNION, WORLD TRADE ORGANISATION, STANDARDS ment and Feasibility Studies) for anniversary of MMC Norilsk Nickel,

ial R ial AND LONDON METAL EXCHANGE c In 2015, the Company received MMC Norilsk Nickel’s Head Office the Company held a competition no major fines for failure to comply and Polar Division and for for the best project on utilising with regulatory rules and require- Kola MMC, and the Programme hydrometallurgical capacities of ments related to product supplies. for Providing R&D Services Nadezhda Metallurgical Plant after [G4-PR9] to Production Facilities for discontinuing pyrrhotite concen- Corporate So Corporate Compliance of CIMS MMC Norilsk Nickel’s Polar trate processing at this facility. with international External audits Certification Division and for Kola MMC. All of the Group’s companies Company standards undergone in 2015 body Audit results

] participated in this competition

To improve the quality of decisions and prepared over 25 projects.

2015 MMC Norilsk Nickel ISO 9001:2008 First surveillance audit Compliant

[ related to research and develop- ISO 14001:2004 Gipronickel Institute was selected Bureau Veritas ment, the Company established as a winner, and teams represent- Certification (BVC) the R&D Panel in 2013. ing MMC Norilsk Nickel’s pro- Kola MMC ISO 9001:2008 Second surveillance audit Compliant s ISO 14001:2004 duction units were runners-up. OHSAS 18001:2007 The groundwork done by the winners will be used in future Gipronickel Institute ISO 9001:2008 Recertification audit Societe Generale Compliant projects. kel Group’ c

i de Surveillance (SGS) k N s

oril Norilsk Nickel ISO 9001:2008 Second surveillance audit Compliant N Harjavalta Oy ISO 14001:2004 Inspecta Sertifiointi Oy (Inspecta) OHSAS 18001:2007 Recertification audit

1 Customer satisfaction is assessed using a scale from 1 to 3, where 3 means complete satisfaction, 2 stands for sufficient degree of satisfaction, and 1 means customers are dissatisfied with the Company’s product quality.

Norilsk Plant set the Company’s H-1 nickel brand up a technical quality and K-0 cobalt brand were awarded 1940 control department 1973 the state quality mark of the USSR 54 The table below presents the Company’s key development projects having a positive environmental The EBITDA margin increased from non-core assets: in 2015, Norilsk For more details on economic effect and relying heavily on R&D [G4-2] 48 to 50%, demonstrating the Nickel closed the deal on selling performance, see the Financial highest level in the industry. The its African asset, Tati Nickel, and Overview section of the Group’s Project Scope Environmental impact Company also reached an industry expects to finalise the sale of 2015 annual report. record in dividend yields. All 2015 Nkomati by the end of 1H 2016. Smelting capacities In 2015, the Company commissioned Stage 1 • A 10–15% decrease in sulphur dioxide reconfiguration of Talnakh Concentrator. The facility upgrade emissions due to the improved quality investment projects were com- The Company’s leverage ratio and upgrade programme is going as planned, and preparations for of concentrate produced by Talnakh pleted within the agreed sched- remained low, with net debt to Nickel Plant shutdown in 2016 have been Concentrator and the shutdown of ules and budgets. The Group EBITDA standing at 1.0x as at finalised. Nickel Plant continued to dispose of the 31 December 2015. • Reduced maximum pollutant concentration in Norilsk residential areas, decreased duration of air pollution under southbound winds

Production of elemental In 2012–2014, the Company conducted • Sulphur dioxide emissions from sulphur at Nadezhda feasibility study and pilot testing of the Nadezhda Metallurgical Plant reduced

RESPONSIBLE OPERATIONS RESPONSIBLE Metallurgical Plant technology, engaging global experts in by at least 1 mtpa; significant decrease and Copper Plant industrial design. In 2015, Russia’s State Expert in emissions containing non-ferrous of Polar Division Review Board approved the design documents, metals due to better dust removal from a tender was announced among major waste gases used for sulphur disposal international contractors to bid on the project (eight participants), and indicative CAPEX

eport eport was added to the Company’s investment programme. With the construction launch scheduled for 2016, the contractor undertook to commission the facility in 2019. The project ibility R ibility

s covers over 50% of the target sulphur dioxide emissions reduction at Polar Division. pon s

e Implementation of the In 2013–2014, the Company conducted Sulphur dioxide emissions from Kola briquetting and briquette feasibility study and pilot testing of the MMC’s metallurgical facilities at

ial R ial melting technology technology. In 2015–2016, the technology Zapolyarny and Nickel sites reduced c at Kola MMC has been gradually implemented. from 150 ktpa in 2014 to 120 ktpa in 2016

In 2015, as a measure to counter 5.12. Economic initiatives on increasing the Corporate So Corporate embezzlement and illicit trafficking performance shareholder value and offering of the Company’s feedstock, the industry’s highest shareholder

] semi-products and metals, MMC Economic performance is returns.

Norilsk Nickel’s Office for Chemical the key indicator of the Company’s 2015

[ Forensic Analysis was transformed success, sustainability, and Thanks to the high-quality mining into a separate R&D unit to develop investor appeal. It forms the asset portfolio, disciplined a unique Comprehensive Identifi- cornerstone of strategic planning. investment approach, and cost

s cation Methodology and an reduction and efficiency improve- automated expert system with The key factors of MMC Norilsk ment initiatives, in 2015 MMC a database of the Company’s Nickel’s economic performance Norilsk Nickel managed to deliver products designed to fully prevent improvement are as follows: strong financial results despite kel Group’ c

i cross-border smuggling of any investment and profitability the weak commodity markets.

k N materials containing Norilsk management; implementation s Nickel’s products. of the 5-in-4 Plan to generate

oril additional USD 4 bn of cash flow N The Company’s major R&D based on the 2013–2016 results; achievements over 2015 are listed in the Research and Development section of the Group’s 2015 annual report.

foundation of Gipronickel 1934 Institute 56 IPS H S N RELATIO E V FF ECTI EFFECTIVEE RELATIONSHIPS eport eport eport eport ibility R ibility ibility R ibility s s pon pon s s e e ial R ial ial R ial c c EFFECTIVE Corporate So Corporate Corporate So Corporate ] RELATIONSHIPS 2015

[ s s % kel Group’ kel Group’ c c i i share of Norilsk Nickel Group’s employees k N k N s s covered by collective bargaining agreements oril oril 92.0 N N The Company feels responsible new jobs will be offered to its business partners, employees by MMC Norilsk Nickel in 2016 1,000+ and society as a whole RUB bn

will be allocated to social costs related 4.4 to Nickel Plant shutdown 58 6.1. Stakeholders The Transparency Policy of 6.2. Dialogue Stakeholders Interaction mechanisms Key engagement initiatives of 2015 and interaction MMC Norilsk Nickel aims to with employees mechanisms provide stakeholders with com- Business partners plete and accurate information The companies of Norilsk Nickel Suppliers and contractors • Developing product and service • Submitting a number of initiatives against MMC Norilsk Nickel’s key about the Company’s activities, as have for many years been running procurement through tenders. money laundering and illegal cash flows aimed The Company’s customers stakeholders are employees, well as ensure proper feedback2. an effective social partnership • Corporate Trust Service. at financing terrorist activities for review Domestic and international and approval of the Security Committee of shareholders and investors, framework aimed at reconciling industry associations • Joint seminars. the International Platinum Group Metals • Customer satisfaction monitoring. Association. business partners, national In order to reconcile stakeholder interests of employees and em- International organisations and local government authorities, interests with its own, the Company ployers on matters pertaining to • Engaging in the activities of domestic • Helping the United Nations Interregional and international industry associations. Crime and Justice Research Institute to launch and non-profit organisations. engages in a direct dialogue with the regulation of social and labour a research programme on possible links • Engaging in the activities of international The Company identifies stake- their representatives via negoti- relations. [G4-HR4] between the transnational organised crime organisations. and illegal precious metal trade, as well as on holders based on the extent to ations, joint working groups and ways and methods of combating them. which they interact, share interests standing committees, conferences Employee interests are represented by • Helping create a reference book on the best and communicate. [G4-25] and forums, various meetings and social and labour councils and trade available copper production solutions that was approved by Rosstandart’s decree working sessions, and in the union organisations. The Company No. 1573 dated 15 December 2015. EFFECTIVE RELATIONSHIPS Stakeholder engagement principles process of project implementation. has also set up collective decision and procedures are set out in the making bodies made up of employer, Federal authorities Code of Business Conduct that employee and trade union Federation Council of Russia • Participation of the Company’s • Signing a cooperation agreement between the Company approved in 2012 1. organisation representatives. representatives in the activities of MMC Norilsk Nickel and Rostechnadzor (the State Duma of Russia

eport eport working and expert groups on legislative Federal Service for Ecological, Technological Government of Russia projects, industry problems, and labour and Nuclear Supervision). The agreement is relations. aimed at fostering the parties’ collaboration Federal ministries, [G4-24, to improve occupational health and safety agencies and services • Participation in intergovernmental ibility R ibility G4-26] Stakeholders Interaction mechanisms Key engagement initiatives of 2015 and reduce accident and injury rates.

s commissions on economic, industry and Russian Trilateral Commission R&D cooperation. • Signing a cooperation agreement between Personnel

pon on the Regulation of Social MMC Norilsk Nickel and the Federal Customs s

e and Labour Relations Service of Russia to identify cross-border Employees of the Company • Work on negotiating and signing • Collective bargaining commissions and smuggling of metal bearing materials.

ial R ial collective bargaining agreements extension of collective bargaining agreements

c with employee representative bodies. at the Group’s major companies: MMC Norilsk Local communities • Discussions with trade unions Nickel, Kola MMC, Norilsknickelremont, and working committees. Norilskgazprom, etc. Regional government • Signing and implementing cooperation • MMC Norilsk Nickel staged a series of public • Making first agreements with employees • Meetings on operating, social and labour authorities agreements. discussions (Moscow, Krasnoyarsk and Norilsk) of Nickel Plant (to be shut down in 2016). matters. on the Company’s initiatives to reduce air These agreements address employment, • Helping prepare development plans for Local authorities pollutant emissions. Corporate So Corporate • Employee surveys. retraining and relocation issues. regions of operation. Territorial offices of federal • Communication through corporate media, • MMC Norilsk Nickel and the Government of government authorities • Launching and implementing corporate brochures, and TV screens at production and joint programmes and projects. the Krasnoyarsk Territory signed a master units. State-funded educational agreement on cooperation during the ] • Participating in international, national institutions in the regions preparation and staging of the 29th Winter • Interaction through corporate websites. and regional forums, conferences and of operation Universiade in Krasnoyarsk in 2019.

2015 exhibitions. • NN-INFOKOM, MMC Norilsk Nickel’s subsidiary, [ Local communities and civil Shareholders and investors • Holding round tables for maintaining and the Government of the Saratov Region society organisations dialogue with stakeholders. signed a social and economic partnership Shareholders • Disclosure through various channels: • Making a presentation for the investor • Engagement in the process of agreement aimed at creating over 1,000 new jobs. s media publications, websites (news community devoted to the corporate strategy implementing charitable programmes. Investors agencies, www.nornik.ru), management’s progress on the Strategy Day in London and • Participating in public and advisory public presentations, Russian and during the Manage the Future! corporate Analyst and rating boards, working and expert groups. agencies international investment conferences, forum. meetings, written responds to media • Holding an offsite meeting of the Board of queries. Russian and international non-profit organisations kel Group’ Directors and of the Strategy Committee of c i • Supporting bodies that represent the Board of Directors in Norilsk that reviewed Business associations • Information exchange and direct advisory • The Company announced the winners of the

k N shareholders’ interests. regular matters and the management’s sessions. Socially Responsible Initiatives Competition s strategic initiatives. Industry unions • Event participation (round tables, staged under the World of New Opportunities charitable programme. oril NPOs (environmental conferences, competitions). N protection and charity) • Involvement in joint projects. • MMC Norilsk Nickel became a general partner Russian and international of the 29th Winter Universiade in Krasnoyarsk sports organisations in 2019. • The Company prepared and launched its volunteer programme Plant of Goodness.

1 At the end of 2015, the Company was updating the Code and reassessing the value system to facilitate the implementation of the new development strategy. 2 For more details, see the Transparency Policy section. 60 Norilsk Nickel’s social partnership framework As part of the social partnership The Company informs employees, 6.3. Dialogue framework, Norilsk Nickel employee local employment agencies and the with shareholders representatives can openly review Group’s trade union organisations and investors SOCIAL AND LABOUR production and social programmes of the launch of the redundancy COUNCILS AT ALL AROUND 60 THOUSAND OF THE COMPANY’S EMPLOYEES, rolled out across the Group, contribute procedures at Nickel Plant in The authorised capital of OF NORILSK NICKEL'S OR 81% OF THE AVERAGE HEADCOUNT to the dedicated assessments of accordance with the labour and MMC Norilsk Nickel is made up of MAJOR ENTITIES working conditions, and implement employment law. 158,245,476 ordinary shares with measures to prevent occupational an aggregate market value of injuries and diseases among For detailed information on employ- USD 19.6 bn as at 31 December 2015. employees working in hazardous ment, retraining and relocation of The Company’s ordinary shares are conditions. Nickel Plant employees, see the listed on the Moscow Exchange, and TRADE UNION OF MMC 42 PRIMARY TRADE UNION ORGANISATIONS LOCATED IN NORILSK AND THE TAIMYRSKY Employees and Social Policy the ADRs are traded on the London, DOLGANO-NENETSKY MUNICIPAL DISTRICT NORILSK NICKEL Major 2015 achievements of the section. New York, and Berlin stock EMPLOYEES, AN social partnership framework: exchanges. [G4-7] INTERREGIONAL • 2 TRADE UNION ORGANISATIONS OF KOLA MMC Extension of collective bargain- Offices for operating, EFFECTIVE RELATIONSHIPS PUBLIC ORGANISATION ing agreements at MMC Norilsk social and labour relations The Company’s major shareholders ZAPOLYARYE HEALTH RESORT TRADE UNION ORGANISATION Nickel, Kola MMC, Norilsknickel- Offices for operating, social and are Olderfrey Holding Limited, remont, Norilskgazprom and labour relations are primarily UC Rusal Plc and Crispian Invest- TAIMYR AIR COMPANY TRADE UNION ORGANISATION Yenisey River Shipping Com- tasked with fast response to ments Ltd. owning collectively 64%

eport eport pany; collective bargaining employee reports (including those of the Company’s share capital, commissions reviewed over from retirees and veterans) and while the remaining 36% is free 200 suggestions on amend- solving operating, labour and social float owned by institutional and

ibility R ibility TRADE UNION MEMBERS: 8% OF EMPLOYEES OF NORILSK NICKEL'S ENTITIES LOCATED IN NORILSK s ments and additions before conflicts in a timely manner, as private investors from Russia, 12% OF NORILSK NICKEL AND THE TAIMYRSKY DOLGANO-NENETSKY MUNICIPAL DISTRICT extending the agreements; well as communicating employee Europe, Asia and the USA. pon

s EMPLOYEES e • Preparation and approval of new concerns to the management 18% OF EMPLOYEES OF KOLA MMC AND SUBSIDIARIES collective bargaining agree- of the Company and its units. MMC Norilsk Nickel takes great ial R ial

c ments at Arkhangelsk Commer- On a monthly basis, the offices care in engaging with current and 33% OF ZAPOLYARYE HEALTH RESORT EMPLOYEES cial Sea Port and Norilsk Avia; monitor the staff’s social status, potential shareholders and • Processing of over 13,000 reports making it possible to solve provides equal access to significant  OF KRASNOYARSK RIVER PORT EMPLOYEES,  OF LESOSIBIRSK PORT EMPLOYEES, from employees on social and reported problems in a timely information in accordance with the  OF ARKHANGELSK COMMERCIAL SEA PORT EMPLOYEES,  OF YENISEY RIVER labour relations to the social manner and always tend to Russian law and international best

Corporate So Corporate SHIPPING COMPANY EMPLOYEES work experts at Company’s the needs and reasonable requests practices. 8% OF KRASNOYARSK SHIPYARD EMPLOYEES, 9% OF GIPRONICKEL INSTITUTE EMPLOYEES, units; [G4-LA16] of employees. The offices have

] 13% OF TAIMYR AIR COMPANY EMPLOYEES • Amending the collective been operating since 2003. MMC Norilsk Nickel’s annual and

bargaining agreements at corporate social responsibility 2015

[ Krasnoyarsk River Shipping The Norilsk Industrial District has reports, quarterly reports of Company, Lesosibirsk Port and 22 offices for social and labour re- securities issuers, corporate action LOCAL COLLECTIVE COLLECTIVE BARGAINING COMMISSION Pechengastroy to comply with lations, which process and settle notices, press releases, investor DECISION MAKING s LABOUR DISPUTE COMMISSION the Russian law changes; tens of thousands of reports each presentations, and operational BODIES • All Norilsk Nickel companies year (mainly from the Company’s and financial reports are published SOCIAL BENEFITS COMMISSIONS AND COMMITTEES with collective bargaining agree- employees). [G4-LA16] on a timely and regular basis ments reviewed the implemen- on the Company’s website at kel Group’ SOCIAL INSURANCE COMMISSIONS c

i tation of these agreements in www.nornik.ru. The Company also

k N 2015 and identified no breaches; advises shareholders on its share

s HEALTH AND SAFETY COMMISSIONS AND COMMITTEES • There were no strikes or trading matters.

oril COMMISSIONS ON THE REGULATION OF SOCIAL AND LABOUR RELATIONS, ETC. lock-outs at the Group’s entities N in the reporting year.

The collective bargaining agreement covers 92% of employees* [G4-11]

* including entities that have no collective bargaining agreements in place but have approved local regulatory documents that make MMC Norilsk Nickel’s Collective Bargaining Agreement effective at these entities

Polar Division set up a social 2003 and labour council 62 In addition, MMC Norilsk Nickel An annual independent study of 6.4. Dialogue On 22–26 September 2015, UNICRI the Company plans to participate In 2015, the Company’s delegation stays in close touch with the investor perception towards MMC with business held an organisational meeting in drafting a reference book on participated in: investor community: Norilsk Nickel by the leading partners of experts in Turin (Italy) that was the best available nickel and cobalt • Conference “Corporate Social • Investor Day (attended by senior international investment funds attended by representatives of production solutions. Responsibility: on the Frontline management); showed continued improvement in MMC Norilsk Nickel engages member nations, companies, and of Global Standards and • conference calls on financial communications, disclosure, and in extensive cooperation with international and regional organisa- Participation in international, Practices” (April, Moscow); results; presentation materials, as well as an the International Platinum tions and focused on developing national and regional events • 3rd Murmansk International • participation of the Company’s increase in management availability Group Metals Association (IPA). international anti-terrorist state- In 2015, MMC Norilsk Nickel acted Business Week (November, management in all major and visibility, which benefits the On 15–17 April 2015, Vice business cooperation initiative, as a partner (sponsor) of the Murmansk); investment conferences; Company’s investment case. President – Head of Corporate which had been proposed by following major economic forums • roadshows; Security Vladislav Gasumyanov Russia and is being implemented and events: Vice President – Chief Financial • site visits for investors and In 2015, the Company’s annual chaired the annual session of the by the Ministry of Foreign Affairs • 12 th Krasnoyarsk Economic Officer Sergey Malyshev made a analysts; report received both domestic and IPA’s Security Committee in South in collaboration with MMC Norilsk Forum (February, general speech at the Capital Markets vs • investor meetings international acclaim: Report Watch Africa that approved the Compa- Nickel at the instruction of the partner); Alternative Borrowing Sources (group and 1 on 1 meetings). ranked it first and third among ny’s proposals on creating an IT President of the Russian Federation. • 19th St Petersburg International conference during the 7th Annual EFFECTIVE RELATIONSHIPS Russian and international mining and telecommunication system for Economic Forum (June, inter- Business Forum (November, In 2015, the Norilsk Nickel’s team and smelting companies, respec- the IPA, developing measures to As part of its cooperation with national partner); Moscow). improved the involvement of senior tively, and the Moscow Exchange identify cross-border smuggling of the Institute of Information System • Eastern Economic Forum management in investor dialogue placed the report among the Top 3 metal bearing materials, and and Research Centre (IISRC), (September, Vladivostok); In 2015, MMC Norilsk Nickel th eport eport and continued attracting new of the Best Annual Reports of setting up a respective database MMC Norilsk Nickel organises • 5 St Petersburg International joined the Energy Consumers shareholders. The Company held Companies with Capitalisation over integrated with the World Customs multilateral dialogue between Legal Forum – Mission of Law in Association non-commercial as many as 480 investor meetings, RUB 100 bn. Organisation’s CEN (Customs government authorities, customers, an Era of Change (May, business partnership. The Company’s ibility R ibility

s successfully organised its Investor Enforcement Network). manufacturers and suppliers of IT programme partner); employees participated in a Day in London, and staged massive In 2015, MMC Norilsk Nickel and communication equipment, • 7th Nevsky International number of the partnership’s pon s

e Europe and US roadshows that became one of the first large Together with the United Nations which will boost security and Ecological Congress (May, meetings to discuss key energy involved MMC Norilsk Nickel’s Russian companies to successfully Interregional Crime and Justice stability of global communication St Petersburg, official sponsor); consumption matters and ial R ial

c President. tap the eurobond market with Research Institute (UNICRI), MMC while ensuring business continuity. • International Trade Fair regulation of market relations USD 1 bn seven-year bonds. Norilsk Nickel took active part in INNOPROM (July, Yekaterinburg, with energy producers. The book was four times oversub- launching the programme for In November 2015, the 12th IISRC business programme partner); The Company and partnership scribed, illustrating the trust that researching possible links between conference took place in Seoul, • International Research and held joint advisory sessions debt security investors show for the transnational organised crime and with a number of initiatives being Practice Conference “Mining with major market players on Corporate So Corporate Company. MMC Norilsk Nickel’s illicit trafficking of precious metals proposed by the MMC Norilsk Engineering in the 21st Century: regulating the process of bond issuance won the Cbonds and looked into ways and methods Nickel delegation on legal aspects Technologies, Science, Edu- decommissioning inefficient

] Awards 2015 as the Best Primary of eradicating the malpractices. of international IT security and their cation” (October, St Petersburg, equipment with exhausted

Eurobond Deal and got the CEEMEA implementation in corporate IT main partner); capacity. 2015 • [ Corporate Deal of the Year award systems. Open Arctic International from GlobalCapital. Scientific Conference, part In 2015, the Company’s experts, of the Arctic Days in Moscow

s in cooperation with other Russian Forum (November, Moscow); Number of key investor engagement initiatives of 2015 copper producers (Ural Mining and • 5th International Conference Metallurgical Company, Russian “Mining Industry in the Barents Results of best Copper Company), helped compile Euro-Arctic Region: View

kel Group’ Initiative 2013 2014 2015 international peers c

i a reference book on the best to the Future” (November, Investment conferences 9 16 22 8 k N available copper production Murmansk Region). s Events attended by the management 13 15 17 11 solutions that was approved by

oril Rosstandart’s decree No. 1573 N Investor meetings 350 450 480 202 dated 15 December 2015. In 2016,

Norilsk Nickel received an award for the best 2013 initial bond offering 64 6.5. Dialogue Participation in drafting • Master Agreement on Coope- • Social and Economic Partnership For more details on agreements • the Russian Ministry of Internal with authorities, regulations ration during the Preparation Agreement between the Govern- with federal and regional autho- Affairs on preventing theft of communities In 2015, the Company’s experts and Staging of the 29th Winter ment of the Saratov Region and rities that were effective as at products and materials that and non-profit reviewed over 215 draft regulations Universiade in Krasnoyarsk NN-INFOKOM (MMC Norilsk the beginning of 2015, see the contain precious and non-ferrous organisations of the State Duma of the Russian in 2019 between MMC Norilsk Nickel’s subsidiary) dated interactive version of this report. metals and ensuring public Federal Assembly and of federal Nickel and the Government 11 December 2015 that deter- safety at large-scale public executive authorities, and con- of the Krasnoyarsk Territory mines the key areas of coope- Public-private partnership events (celebrations on the MMC Norilsk Nickel’s guiding tributed amendments and sugges- dated 28 February 2015. ration between the region and In 2015, MMC Norilsk Nickel Group’s 80th anniversary, the principles in cooperation with tions to 53 federal draft regulations. As the Universiade’s partner, MMC Norilsk Nickel in one of systematically implemented visit of Patriarch Kirill of Russia’s government bodies, local autho- the Company will provide its the Company’s major projects – public-private partnership Orthodox Church to the Norilsk rities and non-profit organisations The Company’s suggestions for Bobrovy Log Fun Park facilities establishing a multifunctional programmes with: Industrial District); are collaboration; mutual respect 37 draft regulations were taken (part of the Norilsk Nickel general service centre • the Federal Security Service • the Federal Customs Service of of interests; and strict compliance into account by the government Group) for the event, arrange in Saratov. The Company’s of the Russian Federation Russia to prevent cross-border with the Russian law and regional authorities. construction and reconstruction new office, which will create on anti-terrorism and anti- smuggling of metal bearing and municipal regulations, as well of the required additional 1,000 new jobs, is scheduled sabotage security of the materials;

EFFECTIVE RELATIONSHIPS as with the social responsibility Cooperation agreements infrastructure, and train skilled to open in early 2016. Group’s critical infrastructures principle. The Company keeps In 2015, the Company signed the personnel for to arrange for and (fuel and energy utilities, government bodies and local following agreements with federal hold the Universiade. A number transport infrastructure, etc.); authorities informed of its develop- and regional authorities: of contracts have been signed ment plans, prospects, and eport eport • Cooperation Agreement based on the agreement, with possible employment changes. between MMC Norilsk Nickel the Company’s contribution and Rostechnadzor (the Federal being up to RUB 1.3 bn. Formats of interaction with authorities and non-profit organisations [G4-16] ibility R ibility Presidential Decree of 23 March s Service for Ecological, Techno- • Cooperation Agreement 2015 established the State logical and Nuclear Supervision) between MMC Norilsk Nickel pon

s Commission for Arctic Develop-

e dated 22 January 2015. The and the Federal Customs Service ment. MMC Norilsk Nickel’s agreement fosters the parties’ of Russia dated 9 April 2015 to PARTICIPATION IN 19 COMMITTEES, PARTICIPATION IN DRAFT REGULATION DISCUSSIONS HELD BY THE OPEN

ial R ial Director for Federal and Regional c collaboration to improve develop joint initiatives seeking COMMISSIONS, AND EXPERT PANELS GOVERNMENT AND BY COMMUNITY COUNCILS OF THE FEDERAL, Programmes Dmitry Pristanskov is occupational health and safety to effectively prevent from metal AND WORKING GROUPS JOINTLY REGIONAL AND LOCAL AUTHORITIES, AS WELL AS THROUGH an active member of the commis- and reduce accident and injury product smuggling, use of FORMED BY GOVERNMENT ANTI-CORRUPTION DUE DILIGENCE AND REGULATORY sion, together with a number of the rates in production and urban well-established international AUTHORITIES AND BUSINESS IMPACT ASSESSMENT Company’s authorised officers who development. Under its provi- channels by criminal syndicates, COMMUNITY

Corporate So Corporate are part of the commission’s sions, the parties intend to deliberate declaration of one working groups. design and implement remote type of goods instead of other

] supervision mechanisms for types, fraudulent declaration to On 2 December 2015, Vice state health and safety super- conceal the origin of products.

2015 President, State Secretary

[ vision of hazardous production and Head of the Company’s facilities. Government Relations Elena MEMBERSHIP IN THE RUSSIAN UNION Bezdenezhnykh presented 25 COMPANY REPRESENTATIVES HOLD MEMBERSHIPS IN THE MANAGEMENT s OF INDUSTRIALISTS AND ENTREPRE- MMC Norilsk Nickel’s 2014–2015 BODIES AND EXPERT PANELS OF THE INDUSTRY ASSOCIATION AND performance report at the session NEURS AND IN THE CHAMBER INTERNATIONAL ORGANISATIONS THAT ARE MOST SIGNIFICANT of the Legislative Assembly of OF COMMERCE AND INDUSTRY FOR THE COMPANY OF THE RUSSIAN FEDERATION kel Group’ the Krasnoyarsk Territory. Regional c i MPs greatly appreciated the frank k N

s and constructive discussion, highlighting the fact that the oril

N presentation was MMC Norilsk Nickel’s own initiative.

PARTICIPATION IN PARLIAMENTARY HEARINGS AND ROUND TABLES STAGED BY THE FEDERATION COUNCIL, STATE DUMA, RUSSIAN GOVERNMENT, RUSSIAN UNION OF INDUSTRIALISTS AND ENTREPRENEURS (RSPP), CHAMBER OF COMMERCE AND INDUSTRY (CCI) OF RUSSIA, ASSOCIATION OF MANAGERS AND OTHER ORGANISATIONS

platinum producers discussed cooperation to ensure supply chain security at a conference 2013 in Johannesburg chaired by Norilsk Nickel 66 • the Federal Drug Control Service Support for local events As a logical follow-up to its In early 2016, MMC Norilsk Nickel • 7th Nevsky International 6.7. Supply chain of the Russian Federation on In 2015, the Company took part sporting projects and a sign held stakeholder dialogues on the Ecological Congress, which responsibility prevention and media campaigns in organising the following events of support for the government’s 2014 CSR Report and the contents was sponsored by the Company seeking to set up a healthy in the local communities: sports agenda, in 2015, of the 2015 report. The dialogues and spearheaded by IPA CIS The main objective of MMC Norilsk environment within the Company 5th All-Russian Science MMC Norilsk Nickel signed took place on 19 March 2016 in members, Federation Council Nickel’s procurement activities is and in the local communities; Festival in Krasnoyarsk, a sponsorship agreement with the Monchegorsk and on 26 March of the Russian Federal Assembly, timely, efficient, cost-effective and • the Ministry of Defence of the Town day (Krasnoyarsk, Norilsk, hosts of the 29th Winter Universi- 2016 in Norilsk during the We Are and the CIS Executive complete provision of resources to Russian Federation to organise Monchegorsk, Zapolyarny, and ade in Krasnoyarsk in 2019, and the City social forum. Committee; ensure stable operation of all multi-service tactical training Nickel settlement) and celebrations became a general partner of the • 5th conference on Environmental production facilities. sessions on the Taimyr Peninsula on the Company’s 80th anniversary. upcoming event. The Company’s For more information, Protection and Industrial in August 2015 that practised contribution to the 2019 Student see the interactive version Operations in the North, held in The Company’s procurement terrorist threat prevention, For the second year running, Games will amount to over of the report. [G4-27] Norilsk and organised by MMC priorities: handling technological MMC Norilsk Nickel has provided RUB 1 bn. Some 3,000 sportsmen Norilsk Nickel’s Polar Division; • providing legal entities (including emergencies, and public safety financial aid for the Krasnoyarsk from all over the world are • meetings with federal environ- SMEs) and individuals with more preservation. Federation of Northern Multisport expected to participate in the event 6.6. Environmental mental authorities on setting the opportunities to engage in EFFECTIVE RELATIONSHIPS Races to hold an open northern competing for 69 sets of awards in dialogue targets for reducing emissions in procurement for the Company; In 2015, the Federal Security multisport race championships and 10 sports categories. Previously, the course of the Nickel Plant • fostering fair competition; Service, the Ministry of Internal contests in the Krasnoyarsk the Company invested EUR 65 m The measures for reducing MMC shutdown programme; • increasing centralised procure- Affairs, the Emergency Situations Territory. In 2015, the Company in the construction of Bobrovy Norilsk Nickel’s environmental • MMC Norilsk Nickel’s corporate ment volumes;

eport eport Ministry, and the Ministry of donated RUB 1.5 m. Log Fun Park (one of the Winter footprint are constantly on the workshop Environmental • ensuring transparency, including Defence held a total of 39 training Universiade’s sports facilities), agenda of the Company and Problems in the Metals through automated systems; sessions of different focus areas For the seventh year running, allocating each year some stakeholders. In the course of the Industry in Moscow • developing feedback mechanisms; ibility R ibility

s and varying difficulty. MMC Norilsk Nickel sponsors RUB 200 m for its maintenance. year, both internal and public on 25–27 November 2015. • preventing corruption and other the Russian Cross-Country Skiing events feature environmental abusive practices; pon s

e MMC Norilsk Nickel regularly Championship in Monchegorsk. For information on relationship discussions. The Company takes great care in • ensuring that potential suppliers executes various initiatives to This championship is currently with indigenous peoples, [G4-MM5, working with the nature reserves have all the required licences ial R ial

c support NPOs providing aid the the only national sports competition G4-MM6, G4-MM7, G4-HR8] see the In 2015, the key environmental that are adjacent to the production and other environmental permits; veterans of the Federal Security held in Monchegorsk. Around interactive version of the report. initiatives were: sites of Kola MMC (Pasvik and • streamlining inventories. Service, the Ministry of Internal 200 people from 26 regions • public discussions (Moscow, Lapland Reserves) and Polar Affairs, and of other law participate in the marathon, Dialogues during public Krasnoyarsk and Norilsk) on the Division (Putoransky Reserve). For MMC Norilsk Nickel pays close enforcement and security agencies. including leading Russian athletes. reporting preparation roadmap to reduce air pollutant more details on cooperation with attention to developing relations Corporate So Corporate In late 2015, MMC Norilsk Nickel emissions at MMC Norilsk nature reserves, see the Biodiver- with Russian suppliers and contrac- The Company continues to MMC Norilsk Nickel sponsored conducted a survey to refine the Nickel’s Polar Division in sity Conservation sub-section of tors, as they ensure the Company’s

] implement the comprehensive Chita’s Russian Chess list of material disclosures for the October–November 2015; the Environment section. ability to meet its strategic targets.

public-private partnership Championship and Russian 2015 CSR Report. The Company 2015

[ programme to develop mineral Archery Championship. received 77 completed survey resources of the Trans-Baikal forms from internal and external The Company’s suppliers and contractors, items [G4-12, G4-13] Territory (Chita project). In October 2015, the Company stakeholders (including representa- th s sponsored the 5 Russia-Norway tives of local authorities, commu- 2012 2013 2014 2015

For more details, see the Flagship Cross-Border Cooperation nities, and public and environmental Domestic suppliers and contractors 434 421 460 505 Projects section in 2015 annual Days in Zapolyarny and Nickel organisations). The survey results report. (the Murmansk Region). The event underpinned the updated map of International suppliers and contractors 57 42 41 40 kel Group’ c

i addressed the issues that concern material aspects (for more details,

k N all border residents: public matters, see the About the Report section). s culture, education, and preser-

oril vation of indigenous peoples’ N traditional arts and lifestyles.

MMC Norilsk Nickel initiatives to improve environmental laws were the key topic signed up to the Social of the extended Rosprirodnadzor (Federal Service for Supervision 2005 Charter of the Russian Business 2014 of Natural Resources) R&D Council meeting hosted by Norilsk Nickel 68 During 2012–2015, the average For more details on development In 2015, the materials and equipment ratio of Russian and international of cooperation with the Krasnoyarsk procurement totalled RUB 96 bn (net suppliers and contractors Territory companies in the procure- of VAT). Procurement of materials was 9 to 1. ment process, see the Develop- and equipment produced by the ment of Local Communities section. Group’s subsidiaries for production International suppliers are mainly facilities accounts for 5% of the engaged for delivering unique The Company’s purchases are total materials and equipment equipment or systems that do not organised both in a centralised procurement volumes. currently have Russian equivalents. manner and through special procurement units in the Group’s The procurement documents always subsidiaries and branches. include provisions that require a candidate to have no signs of bankruptcy, no overdue tax and Materials and equipment procurement of Norilsk Nickel in 2015, % duty payments, and its senior officers to have no criminal record. EFFECTIVE RELATIONSHIPS When selecting a contractor, the procuring unit checks if 8 the candidates have the required 18 eport eport 10 licences and other HSE permits that are prescribed by the Russian law. 1 38 3 For more details on the Group’s ibility R ibility s 12 59 contractor safety requirements in respect of provision of personal pon

s 15 e protective equipment and proce- dure for organising and conducting ial R ial 2 c high-hazard operations, see the 27 5 2 Occupational Health and Safety section.

The Company reinforces anti- Corporate So Corporate corruption principles by including Polar Division and subsidiaries Materials for operations in the Norilsk Industrial District an anti-corruption clause in its

] contracts and improves procedures

Materials for capital construction Norilskgazprom for preliminary checks of contrac- 2015

[ Equipment for capital tors. Before signing a contract, the Taimyrgaz construction projects Corporate Security Unit evaluates the business reputation, reliability Other equipment Kola MMC s and solvency of potential contrac- Turn-key investment projects Bystrinskoye Mining Company tors. MMC Norilsk Nickel has valid (Bystrinsky MPP, etc.) agreements with domestic and international information agencies,

kel Group’ Taimyrenergo c

i which enables the Company to

k N Logistic-Centre collect and analyse data on s suppliers, contractors, and their

oril Taimyr Fuel Company beneficial owners legally. N

the Company launched a project to put in place a data repository and manage supply chains 2014 in Sales, Commerce and Logistics LTIFR 70 0.61 in 2015 thousand employees

of the Group were trained and assessed 25.6 in occupational health and safety in 2015 F ETY SAFETYSA eport eport eport eport ibility R ibility ibility R ibility s s pon pon s s e e ial R ial ial R ial c c Corporate So Corporate Corporate So Corporate ]

2015

[ SAFETY s s kel Group’ kel Group’ c c i i k N k N s s oril oril N N Zero work-related fatalities is the Company’s key strategic priority in occupational health and safety RUB bn

occupational health 10.7 and safety expenses in 2015 72 7.1. Occupational health The main reasons behind signifi- In 2015, Norilsk Nickel introduced Health and safety The Group’s collective bargaining For the metals and mining and safety cantly lower injury rates in 2014 an Accident Investigation corporate management agreements (for more details, facilities, emergency localisation were the implementation of injury standard and tightened controls The Company’s health and safety please see the Dialogue With and response plans have been The Company is aware of its prevention measures targeting over minor injury and accident policy, including investigation and Employees section) have health developed and are updated responsibility for ensuring employees with a track record of reporting. reporting of accidents, is governed and safety sections. The collective on a regular basis. Test alerts and employee health and safety up to three years (44% of total 2013 by applicable laws of the Russian bargaining agreement of training sessions with the facilities’ in the process of its operations. injuries, reduced to 30% in 2014), There has been a general trend Federation and Technical Regu- MMC Norilsk Nickel stipulates employees are conducted, with and the rollout of key corporate towards lower workplace injury lations of the Customs Union on the employee’s right to refuse the Russian Emergency Situations The Company’s Health and Safety standards. rates in line with the recently security. to perform dangerous work; Ministry and Ministry of Health Policy gives precedence to the life developed and approved health a procedure to refuse unsafe officers taking part. Polar Division and health of employees over In 2015, the Company’s main and safety strategy. All production processes at the work is established. If the refusal and Kola MMC have special- operational performance, while production site, Polar Division, enterprises are supported by is well-grounded, the employee purpose emergency response also demonstrating the Group’s did not exceed the 2014 injury Bringing fatal industrial accidents relevant regulations and guide- is guaranteed retention of their teams (Gas Safety Service, Fire commitment to creating a safe and rate, which suggests a drift down to zero is one of the strategic lines; maintenance, construction average salary. [G4-LA8] Safety Office, Emergency Service). healthy environment and fostering towards sustainable development. objectives to be reached in the and installation works are carried SAFETY sustainable employee motivation course of implementing the health out in accordance with the project Among the health and safety The highest governance body in for safe workplace behaviour. The main injury rate increases and safety strategy. implementation plans and specifi- initiatives there are newsletters charge of health and safety matters in 2015 occurred at: cations containing health and with accident reviews regularly is MMC Norilsk Nickel’s Board of HSE performance results • Chita site (Vostokgeologiya safety sections. The companies submitted to the MMC Norilsk Directors, which reviews quarterly

eport eport The Group’s health and safety strat- and Bystrinskoye Mining have developed health and safety Nickel’s branches and subsidiaries; management reports on the results egy, as approved by the Board of Company) – 45%; guidelines for various professions investigation panels; comprehen- of health and safety activities. Directors in 2014, lays out plans to • Polar Construction and types of work. sive accident-prevention measures; ibility R ibility

s reduce production-related Company – 27%. follow-up checks as part of accidents every year. cross-company audits, etc. pon s e ial R ial

c Key injury indicators [G4-LA6] Historical workplace incident rate, Fatalities breakdown number of workplace injuries Indicator 2012 2013 2014 2015

LTIFR1 — 0.80 0.48 0.61 Mining operations Corporate So Corporate Total number of production-related accidents, in accordance 103 106 64 86 2 109 106 with the labour laws of the Russian Federation 103 Other operations Number of minor injuries2 — 50 305 411 1 ] 6

1 86 Potentially dangerous accidents2 — — 349 976 Repair operations 2015

[ Falling from a height 64 Occupational health and safety expenses 5 Impact with moving s 3 or rotating parts of machinery Indicator 2012 2013 2014 2015 and equipment

Occupational health and safety expenses (RUB m) 6,422 4,095 7,446 10,748 Falling objects 1

kel Group’ including per employee (RUB ‘000) 77 51 95 134 c i 4 Rockfall 3 k N

s Accidents involving mobile work equipment and employees

oril (pedestrians) N By place By type Other accidents identified following investigation 2011 2012 2013 2014 2015

1 Has been recorded since 2013. 2 Has been recorded since 2014.

Polar Division had its first cross-company health and safety 2014 audit conducted by the Company’s employees 74 Prevention and control at the Group’s companies The Company has developed, put into effect and implemented the following corporate standards

CROSS-COMPANY AUDITS OF THE HEALTH INTERNAL AUDITS OF THE HEALTH ACCIDENT PROCEDURE FOR SAFETY SAFETY BEHAVIOUR AND SAFETY MANAGEMENT SYSTEM AND SAFETY MANAGEMENT SYSTEM INVESTIGATION* ORGANISING REQUIREMENTS AUDIT AND CONDUCTING FOR INTERACTION HIGH-HAZARD OF VEHICLES OPERATIONS* AND PEDESTRIANS AT PRODUCTION SITES AND FACILITIES*

INDEPENDENT EXTERNAL AUDITS SAFETY BEHAVIOUR ACTIVITIES WITHIN THE FRAMEWORK TO ASSESS THE CORPORATE AUDITS OF THE HEALTH AND SAFETY PROVISION HAZARD HEALTH AND SAFETY MONITORING SYSTEM CARRIED OUT OF PERSONAL IDENTIFICATION, MANAGEMENT SYSTEM AT EACH FACILITY, INCLUDING: PROTECTIVE ASSESSMENT SAFETY EQUIPMENT AND MANAGEMENT POWER SOURCE OF OCCUPATIONAL HIGH ALTITUDE INSULATION — MULTI-STAGE CONTROL HEALTH OPERATIONS AND SAFETY RISKS

eport eport — AD HOC, OPERATIONAL COMPLIANCE AND CERTIFICATION AUDITS AND COMPREHENSIVE HEALTH AS PART OF THE OHSAS 18000: 2007 AND SAFETY INSPECTIONS ibility R ibility s MANAGEMENT SYSTEM IMPLEMENTATION PREVENTION OF HEALTH AND CONTROL pon s

e AND SAFETY ACTIVITIES SAFETY REQUIREMENTS FOR BOARDING AND ALIGHTING STANDARDS WITH REGARD ial R ial

c COMPANY’S MOTOR VEHICLES DURING INTER-FACILITY TO HEALTH The First Vice President – Chief Development Health and safety TRANSPORTATION AND SAFETY Operating Officer, who directly and implementation management in contractors controls the Health and Safety of corporate standards The Company’s policy aims Department, is responsible for The Health and Safety Department at ensuring safety not only Corporate So Corporate development of the activities and monitors implementation of of the Group’s staff but also monitoring of compliance with the standards and discusses its results of the contractors’ employees The existing corporate standard on e-learning programmes, 3D atlases • arrangement of information

] applicable health and safety with the heads of the Group’s engaged at Norilsk Nickel sites. Provision of Personal Protective of equipment and assembly units, boards on safety behaviour

legislation. Dedicated health and departments, branches and Equipment governs control over purchase of equipment and audits featuring safety index 2015

[ safety units operate across all of companies. The results are also Contractors’ operations (repair, use of personal protective simulation training devices, and charts; the Group’s subsidiaries. [G4-36] reviewed at the meetings of construction and installation works equipment by the contractors’ extension of the underground • production of a video on safety the HSE Committee. at existing facilities) are governed representatives. training base at the Anhydride behaviour audits to be broadcast

s In 2015, MMC Norilsk Nickel by the Regulations on High-Hazard mine of Kayerkansky Mine. during briefings and on infor- established an HSE Committee Special assessment Operations and carried out on the In 2015, a corporate standard mation screens; (before 2015 – Accident Prevention of working conditions basis of work permits or operations project to manage health and Health and Safety • development of illustrated Committee), chaired by the First In 2015, in accordance with certificates; they also need work safety in contractors was devel- Communications Programme posters on fundamental safety kel Group’ c

i Vice President – Chief Operating the Federal Law On Special execution plans (project implemen- oped. It will be implemented Employee communications are rules to be displayed on

k N Officer and assigned with coordi- Assessment of Working tation plans, guidelines, etc.) which in 2016. key to enhancing the corporate information board, in foreman s nating functions. Conditions, the Company carried shall contain safety requirements health and safety culture. rooms, etc.;

oril out a special assessment of to be met in the process of organi- Staff training on health For this purpose, the Company • broadcasting of information on N The occupational health and safety working conditions at Polar sation and conduct of work. Prior and safety has an annual Health and Safety dismissal of employees who had management systems of Kola MMC Division, Norilsknickelremont, to commencement of work, contrac- The Norilsk Nickel Corporate Communications Programme violated health and safety rules and Norilsknickelremont, the Polar Construction Company, tors’ employees undergo induction University jointly with Polar in place. through corporate media and Group’s key service company, are NTEK, Norilskgazprom, etc. and target briefings on health and Division of MMC Norilsk Nickel internal communication channels compliant with OHSAS 18001: 2007. The special assessment of safety, including security measures developed a Personnel Training In 2015, the programme included: (in 2015, 35 line managers and In 2015, the occupational health working conditions covered as per the work execution plans. Improvement Programme • preparation of an informational 134 other employees were and safety management system of 14,250 working places and Safety compliance assessments are of Action for 2016–2018. video on fundamental safety dismissed); Polar Division received a compli- over 31 000 employees in 2015. held during safety compliance days The programme includes rules to be broadcast during • design of printed handouts with ance certificate as per GOST R and cross-company audits. multimedia video production, briefings and through internal information about the unsafe 54934-2012 (OHSAS 18001: 2007). development of training systems, communications channels; work refusal procedure. [G4-2]

* The standard was developed and put into effect in 2015. 76 The Company’s health and safety training initiatives Health and safety performance indicators for accident prevention

Training Indicators 2012 2013 2014 2015

• Health and safety: pre-assessment training and assessment in compliance with the Russian law. Audits conducted: In 2015, 25,600 employees of the Group’s companies were trained in health and safety, including 5,600 employees of MMC Norilsk Nickel. The training costs amounted to RUB 82.8 m By health and safety committees (‘000) > 30 > 35 > 33 > 33 Target audits conducted by managers, senior specialists and committees 18 16 7.7 8.4 • Dedicated programme of professional development for engineering staff of mining facilities. of the Group’s enterprises and business units (‘000) In 2015, 240 managers had special training under the programme Ad hoc audits (‘000) 22 21 6.3 8.1

• Dedicated adaptation health and safety training course for new employees and employees with a track record of up to three years. Comprehensive audits of health and safety and dedicated management 140 157 160 179 In 2015, 3,800 employees completed the course systems

• Tests on the corporate health and safety standards for production branch and subsidiary managers of all levels at the Norilsk Coupons removed from the books of employees violating health and safety 4.1 6.4 4.4 3.9 Nickel Corporate University and Kola Staff Development Centre. requirements (‘000) Over 14,000 employees of MMC Norilsk Nickel and over 3,000 employees of the Group’s branches and companies were tested Employees subject to disciplinary action for the violation of health and safety 7.1 7.6 6.9 8.3 requirements (‘000)

SAFETY Corporate workshops Employees with reduced bonus payments (‘000) > 14 > 17 > 14 > 15 • April, December 2015 – corporate workshops on special assessment of working conditions, efficient use of personal protective Employees incentivised for health and safety involvement and lower workplace >10 > 7 > 5 > 9 equipment, health and safety management at related entities, etc. injury rate as per the review results (‘000) • April, September 2015 – corporate workshops on amendments to regulations on provision of personal protective equipment,

eport eport Total (RUB m) >42 > 42 > 35 > 78 recent developments in this area, and exhibitions of personal protective equipment.

ibility R ibility s Health and safety indicators for 2012–2015 [G4-LA6] To facilitate ultimate control over

pon Safety culture Provision of Personal

s Indicators 2012 2013 2014 2015 e assessment [G4-2] Protective Equipment, the safe working behaviour,

In March and December 2015, Healthcare Activities employees with a track record of 1 ial R ial Across the Norilsk Nickel Group c DuPont Science and Technologies Employees of the Group’s pro- up to three years shall wear a red conducted an independent audit at duction units and enterprises are helmet with the word “Warning” Fatal production-related accidents 8 12 8 13 Norilsk Nickel’s key companies in exposed to hazardous and harmful on it and protective clothing with FIFR2 — 0.10 0.07 0.11 Russia. It was aimed at assessing workplace factors (underground “Warning” chevrons. Production-related accidents resulting in lost time injuries 95 94 56 73 the current corporate health and work, operation and maintenance Corporate So Corporate safety management framework, of mining equipment and heavy The Company’s production units LTIFR3 — 0.80 0.48 0.61 identifying priorities for further self-propelled vehicles, extreme and enterprises carry out prelimi- Total number of recorded production-related accidents in accordance with 103 106 64 86

] improvement and mitigating injury climate, etc.). [G4-LA7] nary testing of personal protective labour laws of the Russian Federation (minor + major + fatal)

and accident risks. equipment, including the latest Major injuries 11 22 12 17 2015

[ The Company covers the cost of its offers by leading manufacturers, According to DuPont’s reports, employees’ personal protective under the corporate standard. Occupational diseases 216 206 226 271 from March to December 2015, the equipment as per the standards Occupational disease rate4 1.75 1.75 1.95 2.27

s safety culture level increased from rules and regulations on working In 2015, the Group purchased Lost day rate5 81.45 86.97 64.22 69.84 2.1 to 2.3, having stood at 1.4 in conditions, continuously imple- personal protective equipment 6 March 2014. The safety culture ments measures on disease for a total amount of RUB 2,157.9 m, Absentee rate 5,310 5,446 4,913 4,968 improvement was driven by the prevention, arranges compulsory or RUB 29,600 per employee, The total number of recorded production-related accidents in accordance — — 13 19 kel Group’ with labour laws of the Russian Federation among the contractors’ employees c i implementation of risk mitigation initial (upon employment) and including RUB 780.8 m spent engaged at Norilsk Nickel sites7

k N standards, safety communication regular health examinations by MMC Norilsk Nickel s campaign, and dedicated risk (check-ups). (RUB 31,400 per employee). Including fatal accidents — — 5 5

oril mitigation programmes. N

1 For the breakdown by regions, see the interactive version of this report. 2 FIFR stands for Fatal Injury Frequency Rate (FIFR = FIs / total number of hours worked * 1,000,000). Has been recorded since 2013. 3 LTIFR stands for Lost Time Injury Frequency Rate (LTIFR = non-fatal LTIs / total number of hours worked * 1,000,000). Has been recorded since 2013. 4 Occupational disease rate – occupational diseases / total number of hours worked * 1,000,000. 5 Lost day rate = lost days as a result of injuries and occupational diseases / total number of hours scheduled to be worked during the reporting period * 1,000,000. 6 Absentee rate = absentee days (absence because of incapacity of any kind) / total number of hours scheduled to be worked during the reporting period * 1,000,000. 7 Accidents among the contractors’ employees have been recorded since 2014. 78 In 2015, medical examination Authorised representatives of trade 7.2. Improvement expenses of the Group’s Russian unions and staff for health and safety of social and CREATE FAVOURABLE SOCIAL AND WORKING CONDITIONS FOR THE COMPANY EMPLOYEES operations amounted to RUB 475.8 m, (2,973 employees) have been working conditions PROGRAMME including RUB 152.9 m spent by elected to participate in preventive GOAL MMC Norilsk Nickel. health and safety activities across Norilsk Nickel’s programme for BRING SOCIAL FACILITIES IN LINE WITH THE EXISTING REQUIREMENTS the Group’s production units and improvement of social and working Staff involvement in health enterprises. In 2015, they took part conditions has been effective since and safety management in over 31,000 audits and submitted 2003. The Group’s companies Most of the Group’s enterprises have about 11,600 health and safety operate more than 2,000 social FEED WORK joint health and safety committees improvement proposals. facilities (including those for sanitary, CONSTRUCTION AND INSTALLATION composed of management, amenity, catering, sports and fitness, STREAM employee and trade union healthcare and recreation purposes) PURCHASE OF EQUIPMENT representatives. These enterprises with a total area of over 300,000 sq m. employ ca. 63,700 people (over Maintenance and repair of social

79.5% of the Group’s employees). facilities is an important part of the OVERHAUL OF 177 SOCIAL FACILITIES COMPLETED SAFETY [G4-LA5] Group’s social policy. RESULTS SINCE 342 RELOCATABLE BUILDINGS PURCHASED 2003

EXPENSES UNDER THE PROGRAMME — RUB 2,920 M Actual costs of the programme for improvement of social Breakdown of social facilities eport eport and working conditions, accrued, RUB m overhauled in 2003–2015

OVERHAUL OF 25 SOCIAL FACILITIES COMPLETED 14 FACILITIES RENOVATED AND COMMISSIONED, ibility R ibility ACHIEVEMENTS s INCLUDING NORILSKPROMTRANSPORT SPORTS COMPLEX AND THE AUDITORIUM OF THE NORILSK 396 in 2015 5 NICKEL CORPORATE UNIVERSITY TRAINING CENTRE (NORILSK). pon s

e 363 258 27 334 THE TOTAL AREA OF THE RENOVATED FACILITIES AMOUNTED TO 4,888 SQ M; THE SOCIAL AND ial R ial

c WORKING CONDITIONS OF 2,141 EMPLOYEES WERE IMPROVED. 9 271 252 WORKS AT A COST OF RUB 396.1 M WERE PERFORMED, INCLUDING PROJECT AND COMPREHENSIVE 228 REPAIR WORKS AT A COST OF RUB 295.4 M, AND EQUIPMENT PURCHASED AT A COST OF 100.7 M. 136 Corporate So Corporate 173 165 159 157 ]

96 98 OVERHAULS OF 24 SOCIAL FACILITIES, INCLUDING TWO CANTEENS.

2015 PLANS

[ Sanitary and amenity FOR 2016 Health and fitness THE PROGRAMME’S BUDGET FOR 2016 IS PLANNED AT RUB 853.2 M.

s Catering

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Other

In 2015, the programme’s Currently, as per the Company’s Norilsk Nickel does not intend to cut kel Group’ c

i participants were 11 units and requirements, the budget of the the programme costs. Favourable

k N subsidiaries of the Group located open-ended programme has been social and working conditions s in the city of Norilsk, Taimyrsky drawn up through 2018. being a key aspect of the Group’s

oril Dolgano-Nenetsky Municipal corporate social responsibility add N District, Murmansk Region, and Saint a lot to the employees’ satisfaction Petersburg, including Polar Division and motivation to perform. and Polar Transportation Branch.

Copper Plant opened its overhauled worker canteen, which complies with 2014 the latest on-site catering requirements RUB bn % 80 the Group’s environmental expenses reduction of wastewater discharge 23.55 and investments in 2015 3.6 across the Norilsk Nickel Group in 2015 kt

reduction of air pollutant emissions in 2015

T 24.75 E N NM IRO ENVIRONMENTE NV eport eport eport eport ibility R ibility ibility R ibility s s pon pon s s e e ial R ial ial R ial c c Corporate So Corporate Corporate So Corporate ] ENVIRONMENT 2015

[ s s kel Group’ kel Group’ c c i i k N k N s s The core objective of the Company’s oril oril N N environmental policy is to minimise its impact on the environment by upgrading its production facilities and switching to modern technologies 82 8.1. Environmental management system TOP-PRIORITY ENVIRONMENTAL PROTECTION GOALS

With the corporate integrated The Company’s vision of its key Based on the analysis of the quality management system in environmental commitments and corporate integrated quality TOP-PRIORITY ENVIRONMENTAL PROTECTION GOALS place at key operations, the Group priority environmental goals and management system, a report is able to harmonise its environ- objectives are stated in the is prepared annually for senior PHASED REDUCTION mental and quality initiatives with Environmental Policy adopted management to assess perfor- COMPREHENSIVE PROGRAMME FOR THE SHUTDOWN OF POLLUTANT other functions such as production by MMC Norilsk Nickel’s Manage- mance and decide on corrective OF OBSOLETE NICKEL PRODUCTION FACILITIES AIR EMISSIONS, management, finance, health ment Board1. measures. PRIMARILY SULPHUR SULPHUR PROJECTS and safety. PHASED REDUCTION COMPREHENSIVE PROGRAMME FOR THE SHUTDOWN DIOXIDE AND OF POLLUTANT OF OBSOLETE NICKEL PRODUCTION FACILITIES INCREASE EFFICIENCY OF GAS-TREATMENT PLANTS AIRSOLIDS EMISSIONS, PRIMARILY SULPHUR SULPHUR PROJECTS CIMS compliance MASTER NEW PRODUCTION METHODS DIOXIDE AND Company with international standards Certification area ENVIRONMENT SOLIDS INCREASE EFFICIENCY OF GAS-TREATMENT PLANTS CONTROL POLLUTANT EMISSIONS UNDER ADVERSE WEATHER CONDITIONS MMC Norilsk Nickel ISO 9001:2008, Production, project management, storage, ISO 14001: 2004 delivery, including by sea, and sales (nickel, MASTER NEW PRODUCTION METHODS copper, cobalt, precious materials, sulphur, COLLECT GAS FLOWS IN THE SHOPS selenium, tellurium)

eport eport CONTROL POLLUTANT EMISSIONS UNDER ADVERSE WEATHER CONDITIONS Kola MMC ISO 9001:2008, Mining and processing of ore, production ISO 14001:2004, of nickel, copper, cobalt, their compounds, COLLECT GAS FLOWS IN THE SHOPS OHSAS 18001:2007 precious metal concentrates, sulphuric acid ibility R ibility

s CONSISTENTLY CONSTRUCT AND UPGRADE WASTEWATER TREATMENT PLANTS NN Harjavalta Production of nickel metal and nickel chemicals REDUCE pon s

e WASTEWATER OPTIMISE THE WATER CYCLE CONSISTENTLYDISCHARGE INTO ial R ial CONSTRUCT AND UPGRADE WASTEWATER TREATMENT PLANTS c REDUCEWATER BODIES Development of the environmental management system in 2015 INTRODUCE WATER SUPPLY RECYCLING AND REUSE SYSTEMS WASTEWATER OPTIMISE THE WATER CYCLE DISCHARGE INTO WATER BODIES EMPLOYEE ENVIRONMENTAL INDEPENDENT SURVEILLANCE INTRODUCE WATER SUPPLY RECYCLING AND REUSE SYSTEMS Corporate So Corporate TRAINING AND RECERTIFICATION AUDITS DEVELOP WASTE OVERHAUL AND CONSTRUCT TAILING PITS DISPOSAL SITES TO ] 263 employeesEMPLOYEE trained in theENVIRONMENTAL application INDEPENDENT SURVEILLANCE REDUCE MAN-MADE MMC Norilsk Nickel and Kola MMC successfully passed RE-USE WASTE AT THE GROUP’S OPERATIONS of ISO 14001:2004 and environmental laws 2015 IMPACT ON THE TRAINING a surveillanceAND audit RECERTIFICATION which confirmed that their AUDITS environmental DEVELOP WASTE OVERHAUL AND CONSTRUCT TAILING PITS [ management systems comply with ISO 14001:2004 requirements DISPOSALENVIRONMENT SITES TO ENGAGE SPECIALIST CONTRACTORS TO USE, TREAT AND DISPOSE OF WASTE Following the publication of a newly revised REDUCE MAN-MADE 263 employeesISO 14001:2015 trainedin November 2015, in the application induction training RE-USE WASTE AT THE GROUP’S OPERATIONS MMC Norilsk Nickel and Kola MMC successfully passed CONSTRUCT AND RE-CONSTRUCT PRODUCTION AND CONSUMPTION s ofsessions ISO 14001:2004 were conducted and environmental in the Company's laws Environment IMPACT ON THE a surveillance audit which confirmed that their environmental WASTE DISPOSAL FACILITIES Department and other divisions management systems comply with ISO 14001:2004 requirements ENVIRONMENT ENGAGE SPECIALIST CONTRACTORS TO USE, TREAT AND DISPOSE OF WASTE Following the publication of a newly revised ISO 14001:2015 in November 2015, induction training 66 employees trained as leading auditors and internal INTERNAL ENVIRONMENTAL AUDITS CONSTRUCT AND RE-CONSTRUCT PRODUCTION AND CONSUMPTION

kel Group’ sessions were conducted in the Company's Environment c

i auditors for the environmental management system WASTE DISPOSAL FACILITIES Department and other divisions ENSURE ZERO TREAT BALLAST WATER AND WASTEWATER k N

s Special Regulations for internal environmental auditors 37 employees participated in the annual corporate INTERNAL ENVIRONMENTAL AUDITS POLLUTION DURING 66 employees trained as leading auditors and internal ENGAGE SPECIALIST CONTRACTORS TO TREAT, USE AND DISPOSE oril workshop Environmental Problems in the Metals Industry Audits conducted by competent employees after special training CARGO TRANSPOR-

N auditors for the environmental management system OF WASTE AND OIL BEARING WASTEWATER 56 internal audits in Polar Division, Polar Transportation ENSURETATION ZEROBY SEA Monitoring of changes in environmental legislation, TREAT BALLAST WATER AND WASTEWATER 37 employees participated in the annual corporate Specialand Murmansk Regulations Transportation for internal Branches environmental auditors POLLUTIONAND DURING DURING VESSEL monthly updates of the corporate register of legal PURCHASE AND USE HIGH-QUALITY FUELS OPERATION ENGAGE SPECIALIST CONTRACTORS TO TREAT, USE AND DISPOSE workshopand other Environmentalrequirements applicableProblems in to the the Metals Norilsk Industry Nickel Audits18 internal conducted audits byin MMCcompetent Norilsk employees Nickel's Head after Oƒce special training CARGO TRANSPOR- OF WASTE AND OIL BEARING WASTEWATER Group's operations. 56 internal audits in Polar Division, Polar Transportation TATION BY SEA TREAT FOOD WASTE AND DRY WASTE ABOARD SHIPS Monitoring of changes in environmental legislation, 36 internal audits at Kola MMC and Murmansk Transportation Branches AND DURING VESSEL monthly updates of the corporate register of legal PURCHASE AND USE HIGH-QUALITY FUELS OPERATION and other requirements applicable to the Norilsk Nickel 18 internal audits in MMC Norilsk Nickel's Head Oƒce Group's operations. 36 internal audits at Kola MMC TREAT FOOD WASTE AND DRY WASTE ABOARD SHIPS

1 www.nornik.ru – Sustainable Development – Environmental Protection. 84 8.2. Expenditures Overall, the Group’s total expendi- 8.3. Environmental Air protection Reduction of air emissions (espe- In 2015, the Company developed on environmental tures and investments in environ- performance Polar Division’s various operations cially those of sulphur dioxide and and approved a roadmap to protection mental protection in 2015 grew by mainly impact the environment dust containing non-ferrous metals) reduce air pollutant emissions at 21.6% y-o-y to reach RUB 23.55 bn, The Company complies with: in the city of Norilsk. 54 pollutants is the main objective pursued by the MMC Norilsk Nickel’s Polar Division In 2015, Polar Division imple- including current expenditures of • the Federal laws on the Pro- are emitted to the air in this area. Company’s operational units in terms up to 2020. The initiative seeks to mented a number of initiatives RUB 15.76 bn and expenditures on tection of Atmospheric Air The key pollutant is sulphur dioxide of environmental management. reconfigure and upgrade smelting to reduce pollutant emissions environmental protection measures and on the Protection of accounting for 98% of all emissions. capacities producing elemental and discharges, completed Stage 1 of RUB 7.79 bn. [G4-EN31] the Environment with respect [G4-SO2] To communicate its environmental sulphur at Nadezhda Metallurgical of Talnakh Concentrator upgrade to inventory, control and efforts to the people of Norilsk, Plant and Copper Plant (the project, with the total investments In 2015, the Company paid RUB management of air emissions; Kola MMC’s operations have since 2012, Polar Division has been “sulphur projects”). By taking in environmental protection 1,684,662 in environmental fines, • the Federal law on the Protection environmental implications mostly running an automatic toll-free planned actions, the Company will projects standing at RUB 5.7 bn. much less than in 2014, and of the Environment and the for Monchegorsk and Zapolyarny enquiry service offering short-term be able to meet maximum permis- Kola MMC progressed considerably received 22 improvement notices Water Code of the Russian cities and Nickel settlement. forecast on the environmental sible emission rates for sulphur with the disposal of saline effluent from regulators. [G4-EN29] Federation with respect to water The key pollutants resulting from situation in the city to anyone dioxide and metal oxides (copper, at Monchegorsk site, completed use and water body protection; copper and nickel feedstock dialling 007. The people of Norilsk nickel, lead) through fine dust ENVIRONMENT the construction of the concentrate • the Federal law on the Pro- processing are sulphur compounds may file their environmental removal from gas used in sulphur briquetting shop at Zapolyarny site, duction and Consumption and dust which contain heavy grievances to the city adminis- production. with the total expenditure of Kola Waste with respect to waste non-ferrous metals such as nickel tration’s community liaison office MMC standing at RUB 2.3 bn. The management. and copper. or the prosecutor’s office. In 2015, In 2015, as part of the sulphur

eport eport Company’s 2016 plans encompass the Company provided explanations projects, Russia’s State Expert extensive design and survey and The Company’s operations are and information on environmental Review Board approved the sulphur capital construction works on planned with reference to statutory impacts in response to two public disposal initiative at Nadezhda Met- ibility R ibility

s environmental protection facilities. environmental limits. In 2015, the filings. [G4-EN34] allurgical Plant (code NMZ-2TsPS), Company did not exceed limits for after which a tender was pon s

e key pollutant emissions. [G4-14] announced among major inter- Environmental protection expenditures and investments, RUB bn Air pollutant emissions, 000 t [G4-EN21] national contractors to bid on ial R ial

c The Company has in place an the project and indicative CAPEX 7.8 integrated environmental reporting added to the Company’s invest- system across all operations to 10.51 20.38 ment programme. Construction is 8.50 10.49 monitor the achievement of to start in 2016 with commissioning 5.2 5.4 3.8 environmental objectives and due in 2019. For more details, see Corporate So Corporate prepare quarterly, annual and the Research and Development ad-hoc reports. The Company section.

] submits statistical reports to

regulating authorities as required 1, 938.49 1, 912.03 1, 828.09 1, 883.24 For more details about the smelting 2015

[ by law. capacities reconfiguration and upgrade programme, see the Other business units 13.8 14.4 14.0 15.8 and subsidiaries Company’s Development Strategy

s Expenditures on environmental and Development of Local protection measures Polar Division Communities sections.

Current expenditures on 148.58 164.62 165.44 169.79 environmental protection Kola MMC kel Group’

c 2012 2013 2014 2015

i 2012 2013 2014 2015 k N s oril N

Kola MMC’s concentrator completed the upgrade 2012 of its water recycling system 86 Overall, the sites are keeping their Greenhouse gas (GHG) The Group’s wastewater disposal Total water withdrawal, mcm Total volume of water recycled emissions within the approved emissions [G4-EN15 – EN19] volumes do not exceed the [G4-EN8] and reused, mcm [G4-EN10] permits, with steady or marginally Currently, Russian laws do not approved limits, including admis- decreasing emission volumes require companies to report GHG sible impact limits, or have any (minus 1.2% in 2015). A drastic emissions resulting from their major impact on biodiversity of reduction in pollutant emissions is operations. water bodies and related habitats. 86.48 95.02 102.49 567.04 574.17 expected upon completion of all [G4-EN26] 88.77 564.32 actions set forth in the approved However, MMC Norilsk Nickel 563.94 emission reduction plans. monitors regulatory changes In 2015, the Group’s total in this field. water withdrawal decreased Polar Division’s total emissions by 3.4 mcm (1%) due to lower water 35.92 30.16 volume in 2015 was 1,883,240 t Order of the Russian Ministry of consumption from natural surface 27.93 (taking into account conversion Natural Resources No. 300 dated and underground sources by 2% 35.48 of NO into NO2), which is 55,150 t 30 June 2015 approved Guidelines and 8%, respectively. The change (3.0%) more than in 2014 mainly and instructions concerning GHG was related to shorter process 175.38 171.32

ENVIRONMENT 172.18 due to increased sulphur dioxide emissions volume measurements equipment running time as well as 178.77 emissions as a result of higher for organisations operating in the fluctuations in mine and pit inflow Polar Division and Russian Federation. These and third-party wastewater 634.12 634.9 NorilskEnergo volumes of sulphur in the feedstock 252.96 277.43 274.00 267.87 535.49 569.59 processed at Nadezhda Metallurgi- Guidelines have been communi- volumes at Polar Division and Kola Polar Division and Kola MMC

eport eport cal Plant and Copper Plant. cated to major corporations to be MMC. The total volume of water NorilskEnergo tested by them throughout 2016 recycled and reused increased NTEK Polar Division’s solid pollutant and improved based on their mainly due to higher water Kola MMC

ibility R ibility Other business s emissions stood at 8,949.6 t, down feedback. MMC Norilsk Nickel’s consumption by Polar Division NTEK 41.30 41.87 41.26 40.89 units and subsidiaries by 730.9 t (7.5%), with 79.6 t (24%) management has decided to test for its production needs. pon s

e down for copper emissions and these Guidelines measuring GHG 2012 2013 2014 2015 2012 2013 2014 2015 18.0 t (8%) down for nickel emis- emissions at the Company’s For more details on the Group’s ial R ial

c sions. Solid pollutant emissions operations. water body impact reduction dropped as a result of improved initiatives effected in 2015, see efficiency of Cement Plant’s Russian authorities are considering the interactive version of this report. Total water discharge, mcm Pollutant discharge through [G4-EN20] wastewater, ‘000 t gas-treatment units after an making GHG reporting mandatory upgrade, lower emissions from from 2016 onwards. In 2015, the Group decreased Corporate So Corporate Nadezhda Metallurgical Plant’s its total wastewater discharge first processing line after a major Protection of water bodies by 5.2 mcm (3.6%), mainly due to 153.1

] overhaul and lower emissions from The Group uses water from surface wastewater discharge reductions 151.11 39.20 33.09 36.20 Nickel Plant’s equipment as smaller and underground sources (see following pipeline repairs and 39.52 2015

[ feedstock volumes were pro- Appendix 3) for its drinking, installation of recycled water 140.52 cessed. production and process supply meters at NTEK’s TPP-2. 139.43 needs as well as for community and

s For more details on our air shipping needs. Water is withdrawn The wastewater volume treated emission reduction initiatives in compliance with the approved to standard quality at treatment 24.47 effected during the reporting limits, without any major impacts facilities grew by 1.5 mcm thanks 26.28 25.44 23.48 period, see the interactive version on water bodies. Water is not to commissioning of new local kel Group’ c

i of this report. withdrawn from either the Ramsar treatment facilities across

k N Wetlands or from other protected MMC Norilsk Nickel’s operations. s natural territories. [G4-EN9] Polar Division and

oril NorilskEnergo N 76.98 84.57 80.31 73.55 Kola MMC

NTEK

Other business units and subsidiaries 4.07 4.04 3.67 3.90 2012 2013 2014 2015 2012 2013 2014 2015

Leningrad Regional Executive Committee founded the Lapland 1930 Biosphere Reserve 88 Kola MMC decreased its total water Development of waste disposal As part of Talnakh Concentrator In 2015, Norilskgazprom continued 8.4. Biodiversity In 2015, the Joint Directorate of discharge by 7.7% y-o-y as a result sites to reduce man-made impact upgrade and retrofit project building solid domestic and conservation Taimyr Nature Reserves went on of lower pit and wastewater on the environment is among the to increase its total ore capacity industrial waste dump sites at with the implementation of two discharge, with untreated water key priorities of the Company’s to 16 mtpa, the Company continued Severo-Soleninskiy gas conden- Cooperation with nature projects selected in 2014 for social discharge stopped completely. environmental policy. Environmen- construction of a new tailings pit sate field, Yuzhno-Soleninskiy gas reserves responsibility funding under tal monitoring at waste disposal which should meet all environmen- condensate field, Messoyakhsky oil Kola MMC is located 15 km from MMC Norilsk Nickel’s World Polar Division increased its facilities is run according to the tal requirements and ensure that and gas field and in Tukhard the Pasvik Nature Reserve and of New Opportunities charitable wastewater discharge volume waste production and waste up to 6 mt of tailings per annum settlement. 10 km from the Lapland Biosphere programme. Those are: by 3.3 mcm as a consequence disposal limits. Tailings pits are is stored and disposed of in an Reserve, while Polar Division’s sites • development of tourist and of higher natural water inflow monitored additionally as required environmentally safe way. In 2015, the Group decreased are some 80–100 km away from trekking infrastructure at Lama, at Mayak mine. by safety standards for hydraulic the total volume of waste gener- the buffer zone of the Putoransky Glubokoye and Sobachye Lakes structures. The Company continued reusing ated by 1.53 mt, or 4.35%, due to Nature Reserve. At present, the (construction of a camping A higher weight of pollutants waste for preparation of com- waste reductions at Polar Division Company’s operations do not make station at Lama Lake and base in wastewater was related to In 2015, as part of its programme pounds to fill mined-out spaces and Kola MMC. a significant impact on areas stations on the trekking route higher volumes of wastewater to improve waste disposal facility (granulated slag from melting of adjacent to the nature reserves, across Lama, Glubokoye and ENVIRONMENT discharges from Polar Division and management, the Company non- ferrous metals, overburden The Group does not transport which is confirmed by extensive Sobachye Lakes to ensure Norilskenergo as well as having to continued upgrading its Nadezhda and hard rocks, mill tailings) and as (including internationally) waste research. [G4-EN11, G4-EN12, G4-MM2] comfort and safety for tourists); calculate pollutants based on a Metallurgical Plant’s tailings pit flux for melting of metal in melting deemed hazardous under the terms • environmental summer scout broader list following the receipt aiming to increase its useful furnaces. of the Basel Convention, Annex I, II, Taimyr Peninsula camp (an environmental and

eport eport of permits since 2015. However, capacity to 40 mcm. This project III and VIII. [G4-EN25] The Putoransky State Nature ethnographic summer school the total weight of pollutants for will ensure that tailings are stored Reserve was included on the for children)1. the year did not exceed maximum and disposed of in an environmen- In 2015, the Group decreased the UNESCO world heritage list in ibility R ibility

s permissible rates. tally friendly way without additional total volume of waste generated 2010. This nature reserve is home Following the new social responsi- land take. by 1.53 mt, or 4.35%, due to waste to 13 plant, 12 bird and one animal bility competition under the World pon s

e Waste management [G4-MM3] reductions at Polar Division and species listed on the region’s, of New Opportunities charitable In terms of waste management, Kola MMC. Russia’s and international Red Data programme in 2015, the Joint ial R ial

c the Company seeks to minimise Waste generation and disposal in 2012–2015, mt [G4-EN23] Books. The nature reserve covers a Directorate of Taimyr Nature man-made impact on the environ- The Group does not transport total area of 1,887,000 ha. It is part Reserves will receive funding ment from waste materials. Over (including internationally) waste of the Joint Directorate of Taimyr for the following 2016 projects: 90% of the Group’s production deemed hazardous under the terms Nature Reserves established • Save the Bighorn Together waste is classified as hazard class of the Basel Convention, Annex I, II, in 2012 by bringing under its (RUB 4.99 m) seeking to research Corporate So Corporate 5 (practically non-hazardous 11.93 III and VIII. management all of the Taimyr and protect this endemic — 14.10 waste). These include rock and Waste generation Peninsula’s state nature the local species of the bighorn

] overburden, tailings, metallurgical reserves such as the Putoransky, found in the Putorana Plateau

12.10 11.37 slag used in production and for Kola MMC the Taimyrsky and the Big Arctic only and listed on Russia’s Red 2015

[ construction and strengthening as well as the Purinsky and Data Book; of tailing dumps, for preparation Polar Division Severozemelsky natural of filling compounds, for railroad 15.87 protected areas. 12.96 12.13 13.22 s groundwork, road filling, etc. 31.55 Re-use of waste 26.39 23.07 22.27 Polar Division kel Group’ c i 6.39 6.11 5.59 5.02 Kola MMC k N s 2012 2013 2014 2015 oril N

1 For a full list of environmental education projects supported by the Company under its World of New Opportunities charitable programme in 2014–2015, see www. norkik.ru – World of New Opportunities charitable programme – Partnership.

the Sowing Season, environmental stunt staged in Norilsk to enhance the city’s green spaces, was recognised as Russia’s best 2013 social project and received the Silver Archer national award 90 • Hatanga Crafts Festival The Pasvik Nature Reserve Since 2006, under a contract Kola MMC and the Lapland they change as a result of ongoing safeguarding water bodies and (RUB 686.5 k) seeking to provide continued implementing the signed with Kola MMC, the Pasvik Biosphere Reserve celebrated the development or construction as protected water zones, improve- a space for demonstration, projects which won funding under Nature Reserve has been running 15th anniversary of cooperation in well as accidents. ment of tourist camps. A number experience sharing and transfer the World of New Opportunities an ecological assessment of the several fields. The key cooperation of programmes are being imple- of northern craftsmen’s know- charitable programme in 2014: natural environment in the area of area is environmental monitoring The Company has field develop- mented jointly with the local how in order to revive the (1) the conservation of nature and Pechenganickel Plant (Zapolyarny, and replanting of greenery in the ment projects as well as mine authorities and nature reserves. indigenous peoples’ forgotten the traditional use of natural Nickel and their suburbs, including vicinity of Kola MMC’s production liquidation and land rehabilitation [G4-EN13] crafts; resources in the valley of the Paz the Pasvik State Nature Reserve), sites. projects for all of its fields, with • Environmental Camp River and in the vicinity of Kola and developing a long-term special reserves set up for For instance, since 2003, Kola MMC, (RUB 994.8 k) aimed to set up MMC, and (2) the establishment monitoring framework. In 2015, Since 2002, the Lapland Biosphere restoration activities. The projects upon recommendation from the a summer field camp in the of an international environmental the Pasvik performed the contrac- Reserve, under contract with provide for making layouts, slopes, nature reserves, has rehabilitated protected area of the Putoransky hi-tech camp based in school No. 11 tual work at a cost of RUB 18.9 m. Kola MMC, has been engaged hydraulic and irrigation structures 100 ha in Monchegorsk, Zapolyarny Nature Reserve. of Rajakoski settlement, in the development of methodology and taking other measures. towns and Nickel settlement. For Pechenega District (as a partner). Also, it continued with the overhaul to reclaim disturbed natural Importantly, the Company’s fields the past 12 years, Kola MMC has had Murmansk Region of its visitor centre in Nickel environments in the areas affected are in commercial development, approximately one million trees and ENVIRONMENT The Pasvik State Nature Reserve is In 2015, the Pasvik won funding for settlement. The charity funding by permanent emissions from exploration and production test bushes planted including a pilot featured as one of the Wetlands for the project to develop its research support received from the Com- Severonickel Plant and monitor stages with liquidation or abandon- project to restore damaged land the Shadow List of Ramsar Sites database and set up an effective pany totalled RUB 57.5 m. Works areas adjacent to Monchegorsk site ment not expected until 2050. adjacent to the company site (the Ramsar Convention) under the dialogue at the Russia-Norway on the visitor centre are to be and areas of the Lapland Biosphere together with Kola Science Centre

eport eport name of Fjarvann – Schaanning’s border to promote its staff’s completed in 2016. Reserve. The scientific research The Company complies with all of the Russian Academy of Field Base. This nature reserve research findings. data provided a basis for further applicable regulations for land Sciences. covers a total area of over 14,000 ha. The Lapland State Nature Biosphere rehabilitation of disturbed lands rehabilitation and other environ- ibility R ibility

s The Pasvik is home to rare bird Reserve is one of the largest and for sanitary and fire-protection mental protection measures in the In 2015, the Company raised and species featured on the regional, protected areas in Europe. It covers improvements in the forest areas. course of field development. released Arctic char fingerlings into pon

s 1 e East Fennoscandia’s , Russia’s and an area of 278,435 ha (including In 2015, the Lapland Reserve the Pyasina River to compensate for international Red Lists. 8,574 ha of water area). performed the contractual work at Additionally, the Company and its damage caused by sand production ial R ial

c a cost of RUB 3.3 m. Also, in 2015, subsidiaries are engaged in in the Seredysh Island deposit in it received RUB 11.4 m as dedicated rehabilitation of soils exposed to 2013–2014. The Company plans to Red List species found in the Pasvik, Lapland and Putoransky Nature Reserves, pieces [G4-EN14] charitable support. technogenic impacts, cleaning and continue fish breeding and release improvement of territories, projects in 2016. Pasvik Lapland Putoransky Land rehabilitation Corporate So Corporate The Company’s Polar Division On the IUCN Red List, of which 27 2 13 develops the Oktyabrskoye, Amount of land (owned or leased, and managed for production [G4-MM1] ] Talnakh and Norilsk-1 fields; Kola activities) disturbed and rehabilitated, ha near threatened 1 1 1 MMC develops the Zhdanovskoye, 2015 vulnerable 1 1 3 2015 [ Zapolyarnoye, Kotselvaara and Semiletka fields. endangered 1 — 1 Total disturbed area, beginning of period 13,322

s On Russia’s Red Data Book, of which 13 20 14 Pursuant to the Russian laws, Total rehabilitated area 53 documents on field development Total disturbed area in the reporting period 44 near threatened 6 11 10 projects and capital construction Total disturbed area, end of period 13,313 vulnerable 5 8 1 projects, both for business and kel Group’ c

i non-business purposes, must have endangered 1 — 1

k N a section on how the company will s On the Murmansk Region’s and Krasnoyarsk Territory’s 71 142 13 protect the environment and

oril Red Data Books monitor the ecosystem elements as N

1 Geographical Nordic region comprising the Scandinavian Peninsula, Kola Peninsula, Finland and Karelia.

Norilsk’s power engineers started using ten Russian-made cutting-edge all-terrain vehicles, which meet the stringent 2013 environmental safety and tundra off-roading requirements 92 Environmental protection and monitoring measures taken by the Company during field life cycle 8.6. Impacts from In 2015, the Company continued Since the accident occurred, foreign operations researching and monitoring water Norilsk Nickel Harjavalta has been habitats on the Kokemaenjoki in close touch with regulators Norilsk Nickel Harjavalta’s main River in the area of the 2014 strictly complying with their impacts are emissions of ammonia accidental Ni solution discharge directives. Currently, a long-term

(NH3) and nickel into the air, and from Norilsk Nickel Harjavalta. environmental remediation and discharges of nickel (Ni), sulphates protection plan is being developed 2- + (SO4 ) and ammonia ions (NH4 ) The research identified no jointly to ensure that the region has into water bodies. long-term negative impacts of a healthy functioning ecosystem. Environmental protection and monitoring measures taken by the Company during field life cycle the accident as the situation fully In 2015, Norilsk Nickel Harjavalta’s normalised with the metal content actual emission, discharge and in the water meeting the appli- waste disposal volumes complied cable standards, and clam and with the existing permits. shell populations seemingly Prospecting Exploration Pilot production Commercial Shutdown Abandonment recovering in a natural way. ENVIRONMENT and production development or enhanced testing recovery of Environmental impacts of the Group’s operations in Finland remaining reserves

Indicator 2012 2013 2014 2015 eport eport

Industrial wastewater, ‘000 cu m 728 625 625 599

ibility R ibility Measures taken: to protect air, subsoil resources, vegetation and animal species, s Pollutant concentrations in industrial wastewater, t and habitats, land resources and soil (including measures to rehabilitate disturbed pon

s or contaminated land and soil), to collect, use, treat, transport and dispose Ni 0.5 0.5 66.6* 0.4 e

of hazardous waste. 2- SO4 21,879 19,420 19,281 20,051 ial R ial c + NH4 (converted to nitrogen) 47 28 45 36

Total water consumption, mcm** 9.9 11.5 10.9 10.4

Total air pollutant emissions, t Corporate So Corporate Waste removal Ni 2.3 2.0 1.8 1.7 and disposal, land NH3 152 80 50 70 ] rehabilitation and improvement Waste generation, '000 t 9.9 22.0 30.8 16.5 2015

[ measures Waste disposal, '000 t 9.4 21.3 29.8 15.7

Electric power consumption, TJ 651.6 590.4 666.0 594.0 s Power consumption for heating/cooling, TJ 68.4 68.4 68.4 72.0 there are no significant environ- third-party fleet chartered by Metal 8.5. Impacts from Steam consumption, TJ 1,105.2 1,101.6 1,188.0 1,083.6 mental impacts of transporting Trade Overseas, one of the Group’s

kel Group’ transport and c i logistics operations products and other goods and companies. Third-party fleet Environmental expenses, USD m 2.5 3.0 3.0 3.0

k N materials, and members of the environmental parameters comply s workforce. [G4-EN30] with the requirements of inter-

oril The Group’s transport and logistics national conventions. N units have all the necessary Most of Polar Division’s metal environmental permits, undergo products are transported from For more details about the environ- regular audits from the supervising Murmansk and Arkhangelsk to mental action of the transport and authorities and comply with the Europe, and all of Kola MMC’s logistics units, see the interactive applicable environmental regu- metal products are transported version of this report. * Including 66,189 kg (Ni) discharged in July 2014 as Ni solution due to a heat exchanger failure at the reduction plant lations in their activities. As a result, from St Petersburg to Europe by [G4-EN24, G4-15] **Over 95% of water is withdrawn from surface sources

Norilsk Nickel purchased a nickel-refining plant 2007 in Harjavalta, Finland 94 8.7. Energy conservation Norilskgazprom In September 2015, MMC Norilsk In 2012–2015, there were no Key primary energy Key intermediate energy and efficiency Norilskgazprom produces and Nickel’s Board of Directors significant changes in the structure consumers in 2015, consumers in 2015, treats gas and gas condensate, approved the Company’s Fuel of primary energy consumption, % of total consumption % of total consumption MMC Norilsk Nickel’s fuel and and transports and sells raw hydro- and Energy Development Strategy. with gas accounting for the largest energy operations are responsible carbons for NTEK, MMC Norilsk The Strategy describes the link share (some 90%). Primary energy for reliable and uninterrupted power Nickel’s Polar Division and Dudinka between the development of fuel consumption peaked in 2013 due to supplies to production sites and operations. The Company pro- and energy operations and the the harsh winter in 2013–2014. local communities. Most of the duces gas in the following fields: Group’s key production projects, Lower primary energy consumption 6.1 2.5 13.8 Company’s production facilities • Severo-Soleninskoye Gas analyses growth scenarios, and in 2015 resulted from a rise in 16.3 and workforce operate or live Condensate Field, defines strategic objectives. Based power generation at HPPs, lower in the harsh Arctic climate. • Yuzhno-Soleninskoye Gas on the long-term energy consump- third-party demand for electricity 23.5 Condensate Field, tion and production outlook, power and heating and lower distribution 55.0 The Company’s fuel and energy • Messoyakhskoye Gas Field. capacity ramp-up plans were made. losses in the NTEK grid. assets include: For more details about key MMC Norilsk Nickel’s fuel and investments in the fuel and energy There were no significant changes ENVIRONMENT NTEK energy operations also include the capacities, see the Results and in the volumes and structure of 7.7 NTEK supplies electricity, heat Chita-based Bystrinsk Electric Grid Highlights section. electricity, heating and steam 75.1 and water to the communities Company, the Monchegorsk-based consumption of the Group’s and production companies of Arctic-Energo (Kola MMC’s default For the purpose of Federal Law operations. Of the total consump-

eport eport the Norilsk Industrial District. It supplier), and a network of No. 261 On Energy Conservation tion, electricity represents the comprises five power generating industrial substations in the Norilsk and Improvements in Energy highest percentage (55.5%) Polar Division Polar Division facilities, including three thermal Industrial District and the Kola Efficiency, in 2015, MMC Norilsk followed by heating energy (33.3%),

ibility R ibility NTEK NTEK s power plants (TPP-1, TPP-2 and Peninsula. Nickel launched a mid-term and steam and low-grade heat TPP-3), two hydropower plants programme, approved by the used in production processes (the pon

s Kola MMC Kola MMC e (Ust-Khantaiskaya and Kureyskaya The Company is running a Company’s First Vice President and remaining 11.2%). HPPs), grid and support operations. programme to upgrade, revamp COO, to improve energy efficiency

ial R ial Other Other c NTEK manages the assets of and replace the Norilsk Industrial at the industrial facilities of the Norilskenergo, a branch of MMC District’s power facilities. The Norilsk Industrial District and the Norilsk Nickel, and Taimyrenergo. programme was developed in 2014 Murmansk Region. Total primary energy consumption and is expected to run up to 2025. stands at 161,710 TJ (coal, natural Taimyrgaz In 2015, the Company expanded The programme’s priority project gas, diesel fuel and fuel oil) Corporate So Corporate Taimyrgaz holds a licence for gas the reception and transmission is the installation of an automated and gas condensate production, capacities of NTEK’s Taimyr HPP commercial electricity metering

] and follow-up exploration in the Cascade (Ust-Khantaiskaya and system across the Company’s Primary energy consumption, TJ [G4-EN3] Pelyatkinskoye Field, the Taimyr Kureyskaya HPPs), replaced operations in the Norilsk Industrial 2015

[ Peninsula’s largest hydrocarbon Ust-Khantaiskaya HPP’s hydro- District. The project involves 2012 2013 2014 2015 % deposit. Currently, the field is being electric units and medium-pressure the installation of units, electricity developed by the company. turbines at Norilsk’s TPP-1, and heating meters, the automatic Coal 4,299 4,250 4,417 4,170 2.6

s revamped emergency control acquisition, transfer, processing Natural gas1 132,095 151,351 146,200 145,266 89.8 systems and completed some other and storage of data, etc. works. Programme implementation Diesel fuel and fuel oil 12,441 11,888 11,684 12,274 7.6 in 2015 brought about higher Total 148,835 167,489 162,301 161,710 100 kel Group’ c

i power generation volumes at the

k N Taimyr HPP Cascade and lower s transmission losses in NTEK’s grids. Intermediate energy consumption, TJ oril N 2012 2013 2014 2015 %

Electricity 50,434 44,499 45,100 42,943 55.5

Heating 22,866 21,152 28,230 25,721 33.3

Steam, low-grade heat 9,048 9568 9,648 8,692 11.2

1 The calorific value of gas was assumed at 45 GJ / cu m for calculation purposes.

Messoyakhskoye FIELD’S FIRST WELL yielded 1967 a commercial gas blowout 96 Energy supply to consumers in the The Group’s Kola Peninsula The most significant changes are Norilsk Industrial District (community facilities are the only ones to mainly attributable to the staff- and organisations) remained almost purchase heating from third-party driven increase in fuel and energy flat in 2012–2014 at around 17,500 TJ. suppliers. In 2015, 6,709 TJ of savings under the organisational In 2015, the volumes decreased heating out of 9,328 TJ of Kola and technical optimisation significantly (to 15,270 TJ) due to MMC’s total consumption was targeting key primary production lower consumer demand and lower purchased from third-party consumers. distribution losses in the NTEK grid. suppliers. In 2015, the Kola Peninsula’s facilities In its drive to reduce energy supplied some 2,647 TJ of heating In 2015, the Group’s Russia-based intensity and improve efficiency, energy to the local communities. companies saved 2,959 TJ of the Company engages the leading heating power on the back of suppliers of energy efficient For more details about the power multiple energy saving initiatives equipment to implement the line breakdown in Dudinka in (up 20.7% y-o-y). [G4-EN6] following major projects: January 2015, see the interactive • upgrade of oxygen generation ENVIRONMENT version of this report. facilities; • upgrade of air compressor systems; Energy savings Energy savings resulting • feasibility study on the optimi- resulting from proactive from the energy consumption eport eport initiatives1, % reduction initiatives, % sation of compressed air supply to the production facilities. ibility R ibility

s 3.1 16.2 5 7. 3 The implementation of these projects led to up to 30% of energy pon s

e 5.2 1.8 savings (in cash terms). ial R ial

c The Company has also developed 33.9 and implemented a series of 70.6 efficient energy use measures in 5 7.9 its production facilities, including: • installation of motion sensor Corporate So Corporate 59.1 lights; 25.1 • replacement of incandescent

] lights with LED and other energy

saving bulbs; 2015

26.3 25.9

[ 1 7.6 • installation of RPM controllers in ventilation systems, pump Production process stations and other variable load upgrades 2013 2014 2015 s systems; Changeover or replacement • of equipment Fuel use of seasonal street lighting control timers; Changes in the staff behaviour Heating • introduction of automated kel Group’ c i Changes in working hours / heating stations; Electricity

k N operating modes • use of insulation and sealing, etc. s oril N

1 Hereinafter in this section, energy saving figures are calculated on a year-on-year basis. RUB bn

98 tax payments to budgets 88.7 and non-budget funds in 2015 RUB m

annual grant funding of the Socially Responsible Initiatives 100 Competition under the World of New Opportunities programme ITY U N MM COMMUNITYCO eport eport eport eport ibility R ibility ibility R ibility s s pon pon s s e e ial R ial ial R ial c c COMMUNITY Corporate So Corporate Corporate So Corporate ]

2015

[ s s Norilsk Nickel seeks to contribute kel Group’ kel Group’ c c i i k N k N s s to sustainable development oril oril N N initiatives of the regions of its operations funded under the World of New 108 Opportunities programme in 2015 and improvement of employee RUB ‘000 well-being average monthly salary across the Group’s Russian 84.9 businesses 100 9.1. Employees The following officers and bodies The share of senior executives Staff employed and resigned/dismissed, FTE and social policy are responsible for human employed by Russian companies resources and social policy in from among the representatives 1 Human capital is a core value the Norilsk Nickel Group: of local communities amounted Hired Resigned/dismissed and a key factor in the Company’s • Nomination and Remuneration to 97.2% in 2015. Russian citizens successful development. Recognis- Committee of the Board of account for 99.5% of the total ing its importance, the leadership Directors of PJSC MMC Norilsk employed by Russian companies. of the Norilsk Nickel Group seek to Nickel, [G4-EC6] boost personnel performance and • Ms. L. Zelkova, Vice President its involvement in the delivery of for HR, Social Policy and Public Out of the total number of em- 3,573 4,182 the corporate objectives, as well as Relations, a member of the ployees, more than 70% are to ensure a transparent approach Public Council under the Ministry production workers. Women to human resource management. of Labour and Social Protection account for 30% of personnel. of the Russian Federation, The legal basis for the Company’s • Departments of Personnel and The period from 2012 to 2015 has

COMMUNITY 10,095 approach to labour as well as other Social Policy of the Company’s witnessed a steady growth of 12,034 relevant relations is consistent with Head Office, employees with higher education: Men the recognised principles and rules • Personnel services of the from 26% up to 30%. of international law and standards Group’s companies. [G4-36] Women

eport eport of the International labour Organ- isation, as well as national laws of Group personnel Distribution of employees the countries where the Company The average Group headcount

ibility R ibility of the Group’s Russian companies s operates. in 2015 amounted to 81,637 em- by level of education2, % ployees in Russian companies, pon s

e The business of Norilsk Nickel is and 1,987 employees in foreign 2,158 based on respect for each companies. In 2015, the Group ial R ial

c employee and his or her rights. employed 974 persons under civil 4,746 4,584 The Company’s position on human law contracts. Most of the em- 19.2 rights is reflected in the Code of ployees of the Group’s Russian 7,606 Business Conduct, Personal Data companies (Russia accounts for 71% 30.8 Policy, Anti-Embezzlement of the total headcount) work in Up to 29 years Corporate So Corporate Regulation, In-House Investigation Norilsk and the Taimyr (Dolgan- 5,843 (inclusive) Regulation, and Regulation on the Nenets) municipal district. Another 20.0 30–44 years (inclusive)

] Prevention and Management of 18% of the Group’s employees 4 947

Conflicts of Interest in PJSC MMC based in Russia work on the Kola Over 45 years 2015

0.3

[ Norilsk Nickel. For more details on Peninsula and in the Northwestern 29.7 the Company’s approach to human Federal District. rights, please see the interactive

s version of this report. The 2.2% headcount increase at the Russian companies in 2015 was General secondary mainly driven by the greater scope Higher of work related to Nickel Plant 2,045 1,715 kel Group’

c Incomplete higher i shutdown and implementation 1,026 1,068

k N of other investment projects.

s Secondary vocational education

oril Initial vocational education Norilsk Industrial N 2,314 1,933 District

Northwest 10,222 9,561 Krasnoyarsk Territory 1 We refer to the following officers as senior executives: in case of the Head Office – President, Vice Presidents, heads of departments; in case of entities located in the Norilsk Industrial District and the Kola Peninsula – general directors and their deputies. Local communities comprise Other regions population with Russian citizenship. 2 Hereinafter in this chapter, we analysed Russian companies of the Norilsk Nickel Group representing more than 97% of the average personnel headcount.

the first building of the industry-wide an on-site healthcare facility Zapolyarye Health Resort was for Severonickel’s employees was 1956 commissioned in Sochi 1973 opened in Monchegorsk 102 Social programme expenses in 2015, RUB m (total RUB 8,593 m) Long-term coverage For two summer months, the Assisting new employees of the demand programme participants were in settling in for skilled personnel invited to undergo a hands-on The programme Assisting New The Company applies a wide range training and a multi-stage business Employees in Settling in the Norilsk Health resort treatment and Social projects (development vacations of employees and their of target groups, sporting events of advanced sourcing technologies. game to produce a joint team Industrial District and Taimyr 223 and holiday celebrations) 128 6 families – the Company’s expenses In particular, we use a specialised solution how to achieve the Dolgan-Nenets Municipal District 571 1,621 Norilsk Nickel – Jobs and Careers development objectives that the introduced by the Company for 334 Reimbursement of round trip travel Voluntary health and personal expenses and baggage fees to accident insurance web site www.hr.nornik.ru Company and the Norilsk Industrial experts invited from other regions employees and their families and a free employment hot line District are currently pursuing. of the Russian Federation and (8-800-700-19-43). The programme was attended neighbouring countries with highly 1,710 Pension plans Nickel Plant shutdown programme by 194 students representing demanded professional skills in the The Company also implements 13 technical universities. local labour market enables it to Housing programmes 3,090 corporate programmes to attract The participants were assisted provide adequate living conditions Financial aid and payments 910 workers and specialists from by 20 mentors from among and offset the costs of relocation Settling-in allowance paid to new to pensioners, former employees employees, various employee and their families among young people completing the Company’s employees. and resettlement. In 2015, the COMMUNITY benefits and guarantees training in their professional Programme was financed for a total schools. The Company has ongoing The participants appraised the of RUB 200.4 m and covered 1,954 relations with colleges and Programme highly and expressed employees. universities and offers internships their desire to take part in the [G4-LA1] eport eport Key indicators to students majoring in much Conquerors of the North next year. Employment, retraining sought-after professions and The awareness campaign launch- and relocation of Nickel Plant’s Indicator 2012 2013 2014 2015 qualifications. ing the Programme has targeted employees ibility R ibility s Number of hired employees 15,408 10,103 13,220 15,607 approximately 100,000 of audience One of the primary tasks of the In 2015, the Company has recon- in 4 federal districts. Nickel Plant Shutdown project is pon

s incl. permanently employed, % More than 70

e figured its classical field internship to retain the staff and to ensure The share of hired employees, % 18.8 12.2 16.5 19.1 programme by focusing on Norilsk Nickel plans to further the observance of each employee’s ial R ial c The number of resigned and dismissed employees 14,316 13,738 12,812 14,277 the educational component of develop and promote the Conquer- rights. There is RUB 4.4 bn allocated the development for its future ors of the North programme across for retraining of employees, 1 Employee turnover , %. 11.8 12.1 11.3 10.7 employees to become new industry all Group entities. resettlement grants, and other Employee turnover (to the total headcount 16.6 16.7 15.6 1 7.1 leaders. Norilsk Nickel was the first social payments connected with 2 as at the end of the period) ,% company in the Russian mining For more detail on the Company’s Nickel Plant shutdown. [G4-MM10] Corporate So Corporate industry to apply the hands-on occupational guidance pro- Turnover rate by regions in 2015, % method of nurturing students and grammes, please see the Section A poll carried out in mid-2014

] graduates by involving them in the “Development of local communi- showed that the majority

Region Value solution of actual business tasks. ties”, subsection “Employment of Nickel Plant employees wished 2015

[ The method served as a basis for of local population”. to continue their employment with Kola Peninsula and Northwest 13.4 the Conquerors of the North the Norilsk Nickel Group entities.

Krasnoyarsk Territory 27.4 business game that was staged in In order to retain the staff, and

s the framework of the Professional taking into account the requests Moscow and other regions of Russia 29.0 Start programme that took place of the redundant employees, Taimyr Peninsula 16.2 in Norilsk in summer 2015. the Company seeks to find new jobs for them in Polar Division, kel Group’ c

i and in the Group subsidiaries. Distribution of employees by categories, % k N s Indicator 2012 2013 2014 2015 oril N Production workers 72.3 71.4 70.8 70.6

Managers 12.6 13.3 13.4 12.6

Specialists and office staff 15.1 15.3 15.8 16.8

1 Employee turnover rate factors in resignations, dismissals for breach of labour discipline, and negotiated termination. 2 In calculating the turnover all causes of employment termination have been taken into account.

the Company launched entitlement of employees and their families to annual reimbursements the Co-Funded Pension of round trip travel expenses to vacation destinations (this social initiative 2007 Plan programme 2012 of the employer is formalised in the Collective Bargaining Agreements) 104 To this end, it has opened a The Metallurgy Veterans Pro- In order to retain the experienced Personnel development The main objectives of the Human • increased focus on proactive counselling centre to offer Nickel gramme has been specifically and highly skilled Nickel Plant Since 2014, the Company imple- Capital Development Programme approach and personal initiative; Plant employees a variety of jobs designed for the employees employees engaged as coaches for ments a long-term HR strategy – are as follows: • enhancement of the talent pool; at other Group entities, both in and terminating their employment the Company’s “golden talent pool”, the Human Capital Development • staff segmentation and imple- • personnel development; outside of Norilsk. The Company at Nickel Plant and relocating the management decided to offer Programme. The Programme sets mentation of a targeted • changing the HR focus towards signs employment contracts with back to the mainland (45+ year them employment in the units of out the priority areas of human approach to HR management supporting the Company’s Nickel Plant’s employees that old women, and 50+ year old men). Polar Division (including Copper capital development that are in various segments; strategy and acting provide for one-year guaranteed As at January 2016, 489 employees Plant, Nadezhda Metallurgical Plant, required in line with the Company’s • implementation of optimal as a business partner. employment of their choice in the expressed their intention to and Production Association of Development Strategy. models of using labour resources; units of Polar Division, or other participate in the Programme. Concentrators). To this end, the man- Group subsidiaries, and mainte- agement decided to increase the nance of their average salary. To provide social support to the number of metallurgy related FTEs. redundant workers of Nickel Plant In 2015, Norilsk Nickel put in place classified as “vulnerable”, the Following the steps taken by an accelerated training system for Company offers additional benefits the Company, as at 1 January 2016, Project Introduction of employee performance management framework COMMUNITY Nickel Plant’s employees to gain and certain termination guarantees. 81% (1,913) of Nickel Plant em- Focus areas • Performance assessment using key performance indicators (KPIs). new vocational qualifications. The Participants of the Metallurgy ployees had made up their mind • 360-degree competency review. Norilsk Nickel Corporate University Veterans Programme and “vulner- about their plans for the future. Achievements of 2014 • The project covered top managers from the main production sites of the Norilsk Nickel Group is responsible for the development able” employees are entitled to In 2016, subject to completion and the Company’s Head Office.

eport eport of training and relevant academic increased reimbursement of of the Nickel Plant Shutdown programmes. The bulk of the expenses associated with the programme, the Company expects Achievements of 2015 • Efforts to roll out the Norilsk Nickel Group employee performance management framework to all Group companies. retraining exercise will be com- relocation to the mainland. that its employment and social

ibility R ibility • The KPI-based assessment was extended to new levels, including the Top 1,000 management level. s pleted following the personnel support programme will cover 100% In the key production assets, KPI sheets are developed down to the shop manager level. redeployment. of the redundant employees. pon

s • Assessment procedures automation: WebTutor software was implemented in the Company’s Head Office e for KPI-based assessments.

ial R ial • Discussion of performance of employees with their line managers following competency review. c The competency review covered 126 managers of the Head Office and key production assets whose positions are assigned to the Top 500 category, including 94 men and 32 women1; 68 Head Office Мероприятия по мониторингу и охране окружающей среды, Projects to develop target personnel groups employees, 12 Polar Division employees, and 46 employees of the Company’s subsidiaries. [G4-LA11] осуществляемые Компанией в течение жизненного цикла месторождения • Discussion of employee performance helped define the key areas of development for managers. In late 2015, the Company launched a series of workshops to develop management competencies Corporate So Corporate among the Top 500 managers.

Mentor Academy Leader – The Movement Master University 2016 targets • Analyse the KPI-based performance assessment framework for potential adjustment based of Young Professionals

] on the current business objectives.

A mentor is a highly skilled blue-collar The movement brings together young workers The project is aimed at • Improve the process by extending the range of the assessment tools used for various personnel 2015 categories. [ worker who shares his or her professional aged from 18 to 35. The activities organised line managers (foremen). knowledge and skills with young by the movement with support from It includes the Foreman • Further automate the competency review procedures. employees. The Company has built a the Company address various production, of the Year contest,

s framework for providing organisational innovation, intellectual, creative, and social a training programme and methodological assistance to mentors matters. The activities of 2015 were arranged and mind sport and arranged mentor training. along five key lines: Norma NN (active leisure), tournaments for line There are annual corporate professional NIKоNN (mind sports), Creativity (contests, managers (foremen). skills competitions for mentors, with winners festivals and КВNN), Orientation and Career Project Talent pool management framework upgrade kel Group’ c i taking part in regional and federal Guidance (support for young employees, Focus areas • Set up a talent pool for the key line management positions in the Company’s mining, concentration

k N competitions. Project progress for the year meetings with school students), Initiatives and metallurgical units. s is announced at the annual Recognition (projects to address social issues). • Develop transparent and realistic career progression models.

oril Forum of Mentors.

N • Develop employees included in the talent pool.

Achievements of 2015 • Pilot project site selected (mining entities of Polar Division). • Talent pool approaches agreed, assessment and testing tools improved. • 391 candidates were tested, with 51 of them selected for the talent pool.

2016 targets • Work out common approaches to talent pool development. • Improve the institute of corporate mentoring. • Develop a Talent Pool Regulation. • Carry out stage-by-stage implementation of the talent pool management In 2015, the project covered more than 24,000 people. framework across all Norilsk Nickel Group’s entities.

1 40% and 60% of male and female headcount of the Top 500 category in the Head Office and key production assets, respectively. 106 Training is an important area of centres. The Group’s key training Large-scale efforts were initiated Compensation package structure in the Group’s Russian entities in 2015, % personnel development. Personnel hubs are the Corporate University to improve the skills of coaches and training is an ongoing process of Norilsk Nickel (Norilsk) and instructors at the Group’s training throughout employee careers to the Kola Staff Development Centre centres. COMPENSATION PACKAGE ensure consistent expansion and (Monchegorsk), which provide improvement of knowledge and training to more than 38,000 Motivation system competencies and enhancement employees every year. The basic principles of motivation of professional skills to meet the and remuneration in the Norilsk needs of the Company growth. In 2015, a project was started to Nickel Group are as follows: BENEFITS   develop a management training • single approach to salaries and SALARY   The Group’s entities implement system aimed at building business wages; the personnel training process in and personal skills in the Group’s • incentivising employees to BENEFITS AND accordance with their local internal managers of various levels. The achieve their goals and objec- COMPENSATION UNDER documents based on the Model project is designed to help achieve tives by improving individual, FIXED PART THE VARIABLE THE RUSSIAN LAW Regulation on Arrangement strategic business goals and business unit and Group AND COLLECTIVE COMMUNITY of Professional Training at improve the Company’s operating performance; OF THE SALARY BONUS PART  BARGAINING AGREEMENTS MMC Norilsk Nickel. [G4-LA10] efficiency by developing its human • salary competitiveness in the   OF THE ENTITIES, capital, training current and future current labour market environ- DEPENDS ON THE EMPLOYEE’S ACHIEVEMENT AS WELL AS ADDITIONAL The following types of professional leaders, and retaining the best ment; OF PERFORMANCE TARGETS ESTABLISHED BY INCENTIVE PAYMENTS eport eport training are used for managers, managers. • enhancement of the Company’s THE FIXED PART OF THE EMPLOYER AND THE COMPANY AS A WHOLE TO EMPLOYEES UNDER specialists, office staff and image as a responsible and THE SALARY DEPENDS ON (DELIVERY OF PRODUCTION PLANS AND THE SOCIAL POLICY blue-collar workers: 2015 saw the first training activities reliable employer. THE EMPLOYEE’S PROFES- ibility R ibility PROGRAMMES IN LINE WITH THE REQUIREMENTS OF THE NORILSK NICKEL s • training, to develop the management skills, SIONAL QUALIFICATION, • retraining, covering more than 200 managers In 2015, the Company started OF TECHNICAL REGULATIONS AND STANDARDS, GROUP. pon POSITION IN THE CORPORATE s COMPLIANCE WITH QUALITY STANDARDS, e • skills improvement, of the Group’s entities. Similar activi- implementing a job grading HIERARCHY AND COMPLEX- • internship. ties were also arranged for a talent framework. The system is aimed at PRODUCTIVITY GROWTH, REASONABLE COST

ial R ial ITY OF HIS OR HER DUTY, c pool group (30 persons) of the initial achieving the Company’s business SAVINGS, COMPLIANCE WITH CORPORATE AND IS PAID ACCORDING Personnel training is funded from and middle levels of management. objectives and strategy and CULTURE PRINCIPLES). TO HOURS WORKED the budget of the Group’s entities Management Start, a modular delivering superior returns on AND VOLUME OF WORK and is free for employees. Training curriculum, was successfully investment in human capital while PERFORMED REGARDLESS is provided both at independent designed and approved for all also engaging and retaining Corporate So Corporate schools and corporate training recently appointed managers. the best professionals. OF PERFORMANCE OF THE COMPANY AND THE GROUP AS A WHOLE. REGULAR ONEOFF ] BONUS   BONUS   Key indicators [G4-LA9] 2015

[ Indicator 2012 2013 2014 2015

Employees covered by training programmes, including 48.7 4 7.9 54.1 63.1 s employment training, retraining, and skills development Compensation package of employees of the Group’s Russian entities, RUB ‘000 per month (persons, ‘000), including:

blue-collar workers 28.6 26.6 31.5 35.3 2012 2013 2014 2015

managers 12.2 13.6 13.8 18.2 kel Group’ Kola Peninsula and the Northwestern Federal District 51.9 58.3 61.4 6 7.6 c i specialists and office staff 7.9 7.7 8.8 9.5 Krasnoyarsk Territory 35.2 3 7.9 40.9 43 k N s Scope of training, total (man-hours, '000) 5,633.5 5,250.5 5,079.2 5,824.1 Moscow and other regions of Russia 159.0 193.3 139.5 178.2

oril Annual average scope of training per employee trained (hours) 115.7 109.6 93.8 92.2 N Taimyr Peninsula 76.8 80.1 84.7 93.1 Annual average scope of training per employee based on 68.7 63.3 63.5 71.2 average headcount (hours)

Professional training costs (RUB m) 600.7 608.9 661.5 669.1 Distribution of payroll in the Group’s Russian entities by region of operation, %

Training costs per employee trained (RUB) 12,334 12,711 12,220 10,589 2012 2013 2014 2015

Payroll budget, RUB m 71,530.3 79,733.0 77,064.0 87,477.0

Kola Peninsula and the Northwestern Federal District 12.7 12.9 13.2 13.0

Krasnoyarsk Territory 2.8 2.5 2.8 2.4

Moscow and other regions of Russia 12.8 15.6 11.8 13.3

Taimyr Peninsula 71.7 69.1 72.2 71.3 108 The minimum monthly wage for programmes, develop new ones of the employee’s salary. The Co-Funded Pension Plan: structure of participants employees at the Company’s main and close the programmes that Corporate Plan is aimed at highly production units at a full-time rate have achieved their goals and skilled employees and/or em- Number of participants Number of participants provided that work time standards objectives, the Company carries ployees with highly sought-after Entities in 2014 in 2015 1 above out a thorough and comprehensive are met is at least 1.5 times occupations; within this plan, Total 20,219 19,085 the official living wage established review, assesses the most the Company at its own expense in the Russian region where the acceptable solutions in terms of arranges private pensions for its Taimyr Peninsula 17,079 16,052 Company’s unit is located. For Kola social interests, economics of the employees. In 2015, a total of Kola Peninsula and the North-West 3,140 3,012 MMC, the ratio is at least 1.0. Company, and the interests of its RUB 134.7 m was allocated to the Moscow and other regions of Russia 22 21 [G4-EC5] employees. In addition to that, to Corporate Plan for 1,684 partici- ensure prompt identification of pants. The social package includes the weaknesses in the programme [G4-EC3] following benefits and compensa- implementation mechanism, the The Company fulfils its obligations Co-Funded Pension Plan: progress achieved in 2012–2015 tions: Company monitors the implemen- to build private pensions for its Indicators 2012 2013 2014 2015 • payment to the employees of the tation processes on an ongoing employees in full as required by COMMUNITY entities located in the Far North basis. the regulations. Total Company costs, RUB ’000 770,637 546,858 498,162 643,315 and equivalent areas and their Individual contribution of the participant families for return travel and Co-Funded Pension As at the end of 2015, baggage costs to a place of Plan programme the Co-Funded Pension Plan Average contribution per participant, % of wages 2.64 2.66 2.66 2.67

eport eport vacation and back; In 2015, the Group entities located was available to more than Monthly average contribution per participant, RUB 1,794 1,918 2,010 2,240 • providing discounted tours for in the Norilsk Industrial District con- 5,000 people. health resort treatment and tinued to implement its Co-Funded ibility R ibility s vacations for employees and Pension Plan, a corporate private Health improvement Health improvement and wellness programme costs in 2012–2015, RUB m their families; pension programme. and wellness programmes pon s

e • additional pensions for em- For many years, the Norilsk Nickel Health improvement and wellness programmes ployees and other types of social The programme has been Group has been implementing a for employees and their families 2012 2013 2014 2015 ial R ial

c guarantees under the existing in place since 2007. As at the end programme of rehabilitation and Vacations in Zapolyarye Health Resort 629 788 862 904 collective bargaining agree- of 2015, it covered more than health resort treatment for its ments and local regulations. 19,000 employees of the Group. employees and their families. International vacation programme 472 311 328 451 For more details on employee The harsh climate of the Far North Vacations for children 172 162 168 172 benefits and compensations, The terms of the Programme and the nature of operations at the Corporate So Corporate see Appendix 3 to the report. provide for two pension plans: Group’s facilities require special care Vacations in third-party health resorts 42 26 158 306 Parity and Corporate. The Parity for the health of employees, putting Vacations in Kolsky Health Resort 42 86 90 95

] The social policy of the Norilsk Plan is the basic plan where health improvement and wellness Coverage of travel to health resorts 143 1 1 - Nickel Group is developed and pension savings are co-funded by programmes among the priorities 2015 Full cost of tours – total 1,501 1,468 1,607 1,928

[ implemented in a consistent the employee and the Company on of the corporate social policy. manner in accordance with the a par (equal) basis. The Company’s including Company's expenses —2 — 1,340 1,621 approved internal regulations. contribution is equal to that of the (net of costs paid by employees)

s To make changes to the existing employee but cannot exceed 7%

Average employee salary at the Group’s Russian entities, RUB ‘000 Vacation options provided by the Company Number of participants Number of participants kel Group’ c

i to employees and their families in 2014 (people, ‘000) in 2015 (people, ‘000) 2012 2013 2014 2015 k N s Zapolyarye Health Resort (Sochi) 16.3 16.5 Total 68.5 76.0 75.4 84.9 oril Kolsky Health and Spa Centre (Monchegorsk) 1.7 1.7 N Kola Peninsula and the Northwestern Federal District 48.7 54.3 57.4 63.6 Rossiya Health Resort (Altai Territory) 0.5 0.5 Krasnoyarsk Territory 34.5 36.6 40.0 42.1 Roza Khutor and Imeretinsky resorts (Sochi) 4.4 11.9 Moscow and other regions of Russia 153.8 188 135.0 157.4 Dyulber and Rossiya health resorts (Republic of Crimea) 0.9 1.1 Taimyr Peninsula 68.9 72.9 7 7.0 85.0 Vita Health Resort for Children (Anapa) 1.1 1.1

International vacation programme (Bulgaria, Greece) 6.2 5.8

2 Prior to 2015, health resort treatment and vacation expenses had been recognised based on the full price of vacation packages purchased from providers. In 2015, the accounting method for actual expenses changed, with the Company’s expenses now recognised net of the costs borne by 1 For entities covered by the Collective Bargaining Agreement of MMC Norilsk Nickel. employees. The new method can be applied to historical data only starting from 2014. 110 Our Home and My Home To evaluate Our Home and The corporate competitions The Company’s Veterans pro- benefit amount linked to their 9.2. Development of local programmes My Home programme efficiency, encompass 18 sports and are gramme is aimed at supporting employment period. communities The Our Home programme has a survey was carried out across intended for both professionals non-employed pensioners who Norilsk Nickel is among Russia’s been implemented since 2010 16 main production units of Polar and amateurs. The number of permanently reside in Norilsk. The Company also provides largest taxpayers and employers1, and covers Polar Division, Polar Division and 11 entities of the people who took part in the sport The conditions for participation individual aid to its former accounting for 0.6% of the domestic Transportation Branch, and Kola Norilsk Nickel Group in 2015. events in 2015 totalled 20,000. in the programme depend on employees and their families GDP as at the end of 2015. The MMC. The My Home programme The questionnaires were filled The cost of the programme in 2015 the employee’s length of service for rehabilitation and medications, Company makes a significant was launched in 2011 and includes by 1,255 employees. The results stood at RUB 83.5 m. or permanent disability status. to pay for funeral services, and contribution to the development of 13 Group entities operating in helped update the Company’s Financial aid is paid by the Social to help in financial distress. local communities by implementing Norilsk, the Taimyrsky Dolgano- housing programme scheduled Programmes to support former Security Fund of the Norilsk a range of social programmes that Nenetsky Municipal District and to come into effect in 2016. employees and their families Industrial District from the charitable In 2015, financial aid and additional address current and future objectives the Murmansk Region. A part of the Company’s corporate contribution made by the Company. benefits paid to pensioners, former taking into account stakeholder The Company’s obligations to social policy is ongoing care employees and their families opinions and the results of the Both programmes are aimed annually purchase up to 550 flats about former employees upon Under the programme of financial totalled RUB 223,357 thousand. comprehensive current situation at addressing the shortage for its employees are stipulated by retirement. To support its former aid to retiring employees, retirement The number of participants

COMMUNITY and potential impact analysis. of strategically important key the Collective Bargaining Agree- employees on pension, the benefits are provided to employees in the programmes exceeded personnel and creating stable core ment of MMC Norilsk Nickel. Company operates the Pensioner at the time of retirement, with the 24,000 people. staff at the Norilsk Nickel Group Financial Aid Fund and the entities located in the Far North. Since the start of the programme, Company’s Veterans programmes.

eport eport the volume of financing totalled The Company’s contribution to the development of local communities The Company purchases ready- RUB 11,560 m, including The Pensioner Financial Aid for-living flats in Russian regions RUB 1,710 m in 2015. Fund relies on voluntary monthly ibility R ibility

s that are comfortable for residence contributions from employee and provides those to eligible Sports programme salaries and equal charitable THE GROUP'S OPERATIONS AS A BACKBONE OF LOCAL ECONOMIES pon s

e employees under co-financing The sports programme serves to contributions from the Company’s terms: the Company pays up to foster corporate solidarity, develop budget. Those eligible to receive ial R ial

c a half of the flat price and the rest corporate culture, and promote financial assistance from the Fund is paid by the employee during a healthy lifestyle. are former Company employees a specified period of the employ- on pension who retired prior to TAX PAYMENTS PROVIDING EMPLOYMENT REGULAR CHARITABLE PROGRAMMES ment term (5 to 10 years). The flat The events include the annual 10 July 2001 provided they had TO LOCAL BUDGETS IN THE REGIONS OF OPERATION is registered as the employee’s Norilsk Nickel Group Spartakiad, been employed by the Company’s Corporate So Corporate property upon completion of their the Kola MMC Spartakiad, the units for more than 25 years and participation in the programme. Norilsk Nickel Ski Track health permanently reside outside of

] Employees can use the flat marathon, “Dad, Mum and I – the Norilsk Industrial District. FOSTERING COOPERATION SOCIAL INFRASTRUCTURE OPERATING SOCIALLY ORIENTED ASSETS immediately after receiving it. a Sporty Family” corporate WITH LOCAL BUSINESSES AND ASSETS ESSENTIAL 2015 DEVELOPMENT

[ The flat price remains unchanged competition, swimming, futsal, FOR LOCAL COMMUNITY SUPPORT throughout the term of the volleyball, basketball competitions programme. in Sochi, and sport events

s dedicated to the Metallurgist Day Flats purchased under and other high dates. In 2015, the programmes are located Norilsk and Monchegorsk hosted in the Moscow and Tver Regions the first winter Polar Olympics COOPERATION AGREEMENTS WITH LOCAL AUTHORITIES kel Group’ c

i and the Krasnodar Territory. timed to celebrate the 80th

k N Since the start of the programme, anniversary of MMC Norilsk Nickel. s the Company has purchased

oril a total of 2,849 flats (2,501 flats N handed over for use to employees), including 549 flats in 2015.

1 The information presented in this section refers to the Company’s Russian operations.

according to Universum, Norilsk Nickel became the leading employer a Mining and Metallurgical Technical School was opened in the settlement in the metals and mining industry offering its people the best-in-industry of Norilsk’s Oktyabrskaya Street. Its first students attended lectures by such 2014 salaries, working conditions and social benefits 1944 world-renowned scientists as Nikolay Urvantsev and Nikolay Fedorovsky 112 Norilsk Nickel’s key regions of MMC Norilsk Nickel’s expenses on social programmes, Budget payments To reduce unemployment and Conquerors of the North business operation in Russia include the cities charity and social infrastructure development in 2015, In the reporting year, Norilsk staff its Polar Division units, game under the Career Start-Up of Norilsk and Monchegorsk, the RUB m (Total RUB 18,443 m) Nickel’s payments to budgets of all MMC Norilsk Nickel and Norilsk on-site training programme. The Taimyrsky Dolgano-Nenetsky levels and non-budget funds rose Employment Centre signed majority of initiatives are imple- Municipal District of the Krasnoyarsk by 12.0% against the previous year, a cooperation agreement aimed mented as part of the corporate Territory, Pechengsky District of the reaching RUB 88.7 bn. The increase at retraining those out of work for Career Navigator project. The Com- Murmansk Region, Tazovsky District Employee-related in tax and non-tax payments is due the most needed blue-collar jobs. pany’s career guidance activities of the Yamal-Nenets Autonomous social expenses to the planned payroll budget engage tens of thousands of Area, and, going forward, the increase. Lower payments on The Company provides career participants annually. 2,423 Charity Gazimuro-Zavodsky District of the certain items resulted from guidance to children and youth Trans-Baikal Territory, a prospective Sponsorship macroeconomic and legislative from 4 to 35 years of age by For more details on the Company’s region where Bystrinsky Mining and 2,680 (sporting events) changes. [G4-EC7] organising excursions, exhibitions, new project, the Conquerors Processing Plant is being doors open days, public lectures, of the North, see the Employees 8,593 Investments in social constructed. [G4-SO1] and social infrastructure Providing employment dedicated lessons (“Company’s and Social Policy section. development projects 1,044 in the regions of operation lesson”), career contests (“Add COMMUNITY MMC Norilsk Nickel’s social policy Provision of breakthrough As the major employer across its colours to your town”, “I would like infrastructure solutions prioritises social stability of the 3,703 footprint, the Company implements to be a worker”, “Career dreams”), workforce deployed across the a set of initiatives to provide jobs Arctic Wave festival of R&D Group’s companies and geography. and career guidance to local discoveries, Arctic.PRO R&D

eport eport The Company regularly assesses the communities, including younger marathon, schoolchildren and performance of its social programmes population groups. student work teams, and the and adjusts them accordingly. ibility R ibility s Tax and non-tax payments1 to budgets of various levels, RUB bn pon s

e [G4-EC8] Assessment tools for the Company’s social programmes Budget 2012 2013 2014 2015 ial R ial

c Total tax and non-tax payments, including 78.6 72.3 79.2 88.7

ANNUAL POLLS OF SOCIAL federal budget 23.5 16.7 13.5 11.9

PROGRAMME PARTICIPANTS Krasnoyarsk Territory consolidated budget 32.2 28.8 3 7.1 43.6

HEALTH RESORT TREATMENT Norilsk budget 4.0 3.7 4.1 5.5 Corporate So Corporate MONTHLY COMMUNITY VACATION Murmansk Region budget 5.7 5.7 7.0 8.2

STATUS REPORTS CORPORATE GIFTS PROGRAMMES ]

CULTURAL EVENTS

2015 2 Unemployment rate , % [ ENTERTAINMENT

SPORTING EVENTS Rate 2012 2013 2014 2015

s Norilsk 1.0 0.9 0.8 0.8

For reference: number of unemployed persons per vacancy 1.5 0.5 0.8 0.6 reported in Norilsk TARGET RESEARCH ASSESSMENT OF SOCIAL PROJECT

kel Group’ Taimyrsky Dolgano-Nenetsky Municipal District 2.0 2.2 1.7 1.5 c i PERFORMANCE UNDER THE WORLD Krasnoyarsk Territory 1.6 1.4 1.2 1.3 k N RESEARCH AS PART OF DESIGNING THE HUMAN s OF NEW OPPORTUNITIES PROGRAMME CAPITAL DEVELOPMENT PROGRAMME oril N HR SEGMENTATION RESEARCH TO UPDATE THE HOUSING PROGRAMME AT THE FINANCING DECISION STAGE*

CORPORATE CULTURE RESEARCH PROJECT PROGRESS MONITORING

1 * For assessment criteria, see the Regulation on the Socially Responsible Initiatives Competition under the World of New Opportunities Tax and non-tax payments include all taxes paid, net of VAT and dividend income tax, as well as insurance payments and customs duties. Programme, available on the Company’s website at www.nornik.ru (The World of New Opportunities Charitable Programme – Partnership). 2 As at the end of the reporting year.

Innokenty Smoktunovsky, a student of the drama studio in Krasnoyarsk, 1946 joined the Polar Drama Theatre in Norilsk 114 Cooperation development Social infrastructure The Company provided funding for Region Key 2015 initiatives sponsored by the Company The Company is focused on development the ongoing federal project to build developing cooperation with local The Company takes an active part an advanced tourist information Norilsk and • Commissioning of the world’s northernmost indoor water park and a fitness centre in the Arena Norilsk businesses as part of the social and in constructing and reconstructing centre in the Pasvik State Nature the Taimyrsky shopping mall in July 2015. Municipal District economic cooperation agreement social infrastructure in order to Reserve (the settlement of Nickel, • Commissioning of a housing block with 61 one-bedroom apartments for young professionals in July 2015. between the Krasnoyarsk Territory create an accessible and comfort- Pechengsky District, Murmansk • Developing design and cost estimate documentation for two projects: “Reconstruction of an airport facility government and MMC Norilsk able working and living environ- Region). A project involving (Norilsk, Krasnoyarsk Territory)” and “Reconstruction of airfield infrastructure at Alykel (Norilsk)”. Nickel. ment across its footprint. the reconstruction of an artificial • Starting the turn key community centre construction in the village of Kheta, Taimyrsky Dolgano-Nenetsky turf football stadium was kick- District. In 2015, Norilsk Nickel held 1,050 MMC Norilsk Nickel contributes started in Monchegorsk. • Completing the reconstruction of the 7+244 km road bridge on Norilsk’s southwestern bypass. The project was financed as part of the previous commitments undertaken by the Company when handing over the bridge to product and service tenders, with to the social development of its local authorities in 2006. The 7+244 km road bridge was commissioned in Q3 2015, and the 7+684 km bridge 59.4% of them awarded to local regions of operation both by Norilsk Nickel sponsored the construction will kick off in 2016. suppliers. The Group’s expenses for entering into agreements with delivery and assembly of log • Providing funding for the construction of a housing block in the settlement of Tukhard, Taimyrsky Dolgano- purchases from local businesses federal and local authorities and houses with unheated extensions Nenetsky Municipal District. The project is financed as part of the initiatives to construct new housing in the Taimyrsky Dolgano-Nenetsky Municipal District. In 2011 and in later years, the Company allocated funds amounted to over RUB 16.6 bn, out by implementing its own socially to the Yuribey trading post, to construct new housing in the villages of Novorybnoye and Potapovo. COMMUNITY of which RUB 12.4 bn were spent oriented projects. Tazovsky District, Yamal-Nenets • Completing part of the design and associated works to construct a new temple in Norilsk. The start of the on services, RUB 3.4 bn on Autonomous Area. construction is scheduled for 2016.

supplies, and RUB 0.8 bn on food One of the key 2015 projects for Krasnoyarsk • Construction and reconstruction of the required additional infrastructure at Bobrovy Log Sports and procurement. the Company and Norilsk residents In 2015, Norilsk Nickel and the local Fun Park is ongoing under the agreement with the Krasnoyarsk Territory government on cooperation during the preparation and staging of the 29th Winter Universiade in Krasnoyarsk in 2019. In 2015, the design eport eport was the opening of an indoor water authorities reached a trilateral and cost estimate documents were drafted. The project is to be financed starting from 2016. park and a fitness centre in the agreement to construct a sports Expenses for purchases Arena Norilsk shopping mall. centre in Norilsk, which is to be Murmansk Region • In 2015, the federal project to overhaul the advanced tourist information centre in the Pasvik State Nature

ibility R ibility Reserve was ongoing. s from the Krasnoyarsk Territory With a total area of 7,980 sq m, formalised and signed off in 2016. businesses, RUB bn the facilities were financed to • The Company provided funding to kickstart a major project involving the reconstruction of an artificial turf pon football stadium in Monchegorsk. s

e the tune of over USD 714.7 m, Resettlement programme Tazovsky District, • Delivery and assembly of log houses with unheated extensions to the Yuribey trading post. 16.6 including USD 672.9 m in 2015. In 2015, the Company continued ial R ial Yamal-Nenets c implementing a long-term target Autonomous Area 15.7 In August, the Company commis- programme to relocate people living sioned a housing block with in Norilsk and Dudinka (Krasnoyarsk 61 one-bedroom apartments that Territory) to the Russian regions with can accommodate 122 young favourable climate conditions. Over the span of 10 years, the authorities and the Company, with Krasnoyarsk Territory budget, Corporate So Corporate 12.3 professionals. The project received The 10-year programme is part programme envisages the some contributions coming from including RUB 830 m in 2015. 11.7 RUB 154.3 m in financing, including of the Cooperation Agreement relocation of 11,265 families (1,126 the regional budget. The Company

] RUB 121.2 m in 2015. signed by the Russian Ministry families per year) from Norilsk and participates in the programme as a In 2011–2015, some 5,008 families

of Regional Development, Dudinka which are entitled to benefactor, with its donation to the from Norilsk and Dudinka pur- 2015

[ In 2015, Norilsk Nickel completed the Krasnoyarsk Territory, resettlement under the dedicated programme totalling RUB 8.3 bn. chased apartments and moved the 7+244 km road bridge recon- the Norilsk Municipality government programmes and to the mainland. In 2015, a total struction project1, with total and MMC Norilsk Nickel in 2010. registered at the respective Since the launch of the programme, of 954 home purchase certificates

s contributions of RUB 93.5 m municipalities. The funding is split the Company has contributed a were issued. throughout 2014–2015, including up equally between the federal total of RUB 4,501 m to the 2012 2013 2014 2015 RUB 76.3 m in 2015. kel Group’ c i Resettlement progress in 2011–2015 k N s 2011 2012 2013 2014 2015 Total oril N The Company’s contribution, RUB m 1,181 830 830 830 830 4,501

Total apartments purchased, incl.: 1,137 1,013 1,102 1,038 718 5,008

Norilsk 957 850 881 862 569 4,119

Dudinka 180 163 221 176 149 889 1 The 7+244 km bridge is a road bridge over high pressure water mains near TPP-1, part of the southwestern bypass with an access route leading to Norilsk’s Central District through the Talnakh District. Under the bridge are Norilsk’s water and heating supply pipelines. As the bridge connects the residential and industrial areas of the Central District, it is an important and widely used piece of urban infrastructure.

Monchegorsk hosted a USSR skating championship held at the Komsomolsky Lake and attended 1961 by the European, world and Olympic champions 116 Federal funding for the target and ramp-up at Talnakh Concen- Construction of a fibre optic Charitable programmes The Company’s charity efforts In 2015, Polar Division and resettlement programme was trator and Nadezhda Metallurgical communication line between The main objective of the Com- centre around the World of New Kola MMC donated a total reduced in 2015 and suspended Plant will allow the Company to Novy Urengoy and Norilsk pany’s charitable programmes is to Opportunities, a programme of RUB 249.6 m to third-party altogether in 2016, whereas decommission Nickel Plant’s In late 2014, the Company made improve the overall business launched in 2014 and acclaimed organisations. contributions from the Company Smelting Shop areas and consoli- a decision to build a fibre optic environment and mitigate social as one of the Top 30 social projects and regional budgets remained date all nickel production at communication line between Novy problems across Norilsk Nickel’s in Russia. The programme covers Corporate volunteer unchanged. MMC Norilsk Nickel Nadezhda Metallurgical Plant. Urengoy and Norilsk. This signifi- footprint. three focus areas: PARTNERSHIP, programme plans to fulfil its obligations under As the refining capacity upgrade cant project was launched given INNOVATIONS and DEVELOPMENT. In 2015, the Company launched its the programme donating RUB 830 m projects in Monchegorsk are now the Norilsk Industrial District’s need The Company’s new charitable volunteer programme, the Plant of each year up to the expiry of the underway, Nickel Plant’s refining for high-speed internet connection strategy focuses on three main In 2015, the funding for the World Goodness, in Norilsk, Monchegorsk, Agreement in 2020. operations may be discontinued as and state-of-the-art mobile areas of New Opportunities programme Zapolyarny and Moscow. The early as in the second half of 2016. services. 1. Comprehensive charity: transition amounted to RUB 108 m. programme upholds the long-running Comprehensive The implementation of the from traditional one-off donations patronage traditions of MMC Norilsk Nickel Plant shutdown Agreement is set to improve The line will be over 900 km long, to the grant-based social The Company continued providing Nickel. programme [G4-MM10] Norilsk’s environment. with 200 km running through investments, development of targeted charitable donations COMMUNITY The Company remains committed a permafrost zone and 4.5 km social infrastructure, and to organisations. In 2014, Polar Sponsorship of vocational to its obligations under the As per the 2014 Agreement, beneath the Yenisey River. establishment of local partner- Division and Kola MMC set up training comprehensive programme to shut the early removal of export duties ships through cooperation dedicated charity committees MMC Norilsk Nickel helps develop down the obsolete Nickel Plant on unalloyed nickel and copper The project will be funded by agreements and joint projects. to review the organisations’ appli- the material, technical and academic

eport eport and keeps handling associated cathodes should lead to the MMC Norilsk Nickel, with organisa- 2. Support and donations targeting cations. Some donations also get potential of municipal vocational environmental and social matters. investment of the Company’s tional support provided by the specific organisations, provision approved by the Company’s training institutions to improve the The Cooperation Agreement was additional financial resources Krasnoyarsk Territory authorities. of aid in the aftermath of natural management. In 2015, Polar Division quality of training for in-demand jobs ibility R ibility

s signed in 2014 by MMC Norilsk in the implementation of The total project costs are calamities and catastrophes. supported the implementation of and reduce the adaptation time for Nickel, Ministry of Economic the programme. [G4-EC4] estimated at RUB 3 bn. 3. Socially oriented business: the following projects: provision of graduates hired by the Group. pon s

e Development, Ministry of Industry management of the Group’s free hot meals for the low-income and Trade, Ministry of Natural Total expenses under the compre- In 2015, the Company completed socially oriented assets and population of Norilsk; donations to The Company provides financial ial R ial

c Resources, Government of the hensive Nickel Plant shutdown feasibility and pre-design studies, operation of social infrastructure. the local non-profit organisations of support through joint long-term Krasnoyarsk Territory and the programme are projected to total established Edinstvo, a project disabled people; support for special target programmes. In 2015, Norilsk Municipality. RUB 11.5 bn. The allocated budget implementation company, and, The Company’s charity schemes are child care institutions in Norilsk and MMC Norilsk Nickel’s sponsorship for employee retraining, relocation based on the tender results, generally aimed at increasing the the Taimyrsky Dolgano-Nenetsky expenses amounted to RUB 17.1 m, In accordance with the Agreement, compensation and other social selected a construction and effectiveness of charitable initiatives Municipal District, and promotion of with RUB 14.1 m being granted to Corporate So Corporate the technologically outdated and projects totals RUB 4.4 bn. For assembly contractor for the project. and supporting the local commu- volunteering among their students; the Polytechnic College of the physically worn out production more details on the employment The construction is scheduled to nities’ social improvement projects. organisation of summer recreation Norilsk State Industrial Institute

] facilities in Norilsk are to be shut and social support for Nickel Plant be completed in 2017. for children with disabilities and kids and RUB 3 m to the Norilsk

down, whereas the relevant employees, see the Employees and from low-income families; etc. Industrial Engineering College. 2015

[ production functions are expected Social Policy section. to be relocated to the Company’s other sites. The current upgrade s

Corporate volunteer programme

Programme • Enhance corporate culture and social responsibility through the mutual assistance among employees and

kel Group’ objective the Company’s support for volunteer initiatives, charitable campaigns, and projects addressing local social c i problems k N

s Programme • In October 2015, Norilsk hosted the Charity Routes round table discussing the focus areas of volunteer launch in 2015 initiatives and projects that can be delivered in partnership with non-profit organisations and municipal

oril bodies responsible for social policies N • In December 2015, on occasion of the International Volunteer Day, an educational festival was held in Norilsk for the Company’s employees and their families to mark the launch of the programme • New Year volunteer campaigns in December 2015

2016 Plans • Contest of volunteer projects • Establishment of a volunteer school • The programme covers the Company’s entire footprint

Norilsk Nickel announced the launch of a new charitable programme, 2014 the World of New Opportunities 118 The World of New Opportunities Programme DEVELOPMENT

PARTNERSHIP Objective • Engage active citizens and the business community to address social issues of the local communities through the implementation of business projects Objective • Support public initiatives, impart new skills to the participants, and develop local expertise Course in social • The course runs in Monchegorsk (with some attendance from the Pechengsky District) and Norilsk entrepreneurship Grant • The annual Socially Responsible Initiatives Competition with free grants for winners • The attendees get free guidance and advice to develop and promote business ideas addressing any given competition • Project geography: Norilsk, the Taimyrsky Dolgano-Nenetsky District, Monchegorsk and the Pechengsky social problems District • The course deliverables come in the form of a business plan for implementing a social entrepreneurial • Competition participants: non-profit organisations and associations, government and municipal bodies project • The Company funded 91 projects in 2014 and 108 projects in 2015 • Course graduates may submit their business projects for expert review, with the best projects getting • The projects target volunteer movements, support for socially vulnerable groups, new child education methods and technologies, revamp and reconstruction of educational, physical culture and sports facilities, funding from the Company in the form of an interest-free loan conservation and restoration of cultural heritage, promotion of the healthy lifestyle, environmental awareness, development of leadership skills and social responsibility in children and teenagers, etc.

Participant • Academy for social partnership and development: workshops, meetings, presentations and round tables on training1 social projects, management, expertise and project promotion, analysis of application process mistakes In 2015, the Norilsk Industrial Cultural projects local communities. Under the COMMUNITY • Social engineering workshop: a three-day learning session that takes participants all the way through from Engineering College used the at the federal level programme, MMC Norilsk Nickel idea generation to the project implementation Company’s funding to open the In 2014, the Company provided sponsored 37 cultural projects in • In 2014–2015, the Company held over 20 training sessions, workshops and round tables “Repair and maintenance of cars” financial assistance in staging the Norilsk, the Taimyrsky Dolgano- and “Engineering mechanics” Nutcracker at the Novaya Opera, and Nenetsky Municipal District,

eport eport laboratories. The equipment bought donated to the Multimedia Art Monchegorsk, and the Pechengsky through the Company’s sponsorship Museum (a fund supporting art, District2. INNOVATIONS is used for training both students culture and education), the Russian ibility R ibility

s and the unemployed, who are Geographical Society, and the On the occasion of the Group’s Objective • Facilitate the implementation of advanced technologies, foster R&D potential and encourage registered with the Norilsk Andrei Konchalovsky Fund 80th anniversary, Norilsk Nickel pon innovation in engineering s

e Employment Centre and are willing supporting cinema and performing organised a photo exhibition Arctic.PRO R&D • Target audience – schoolchildren of Norilsk, the Taimyrsky Dolgano-Nenetsky District, Monchegorsk to obtain new in-demand skills for arts. dubbed «8 Decades of Norilsk

ial R ial marathon and the Pechengsky District c • Three stages: an online quiz, a personal invention contest, and a winter R&D school for finalists the future work at Norilsk Nickel. Plant». The exhibition featured (Krasnoyarsk in 2015, and St Petersburg in 2014) In 2015, the most prominent cultural unique NKVD albums from the • In 2015, a total of approximately 600 children participated in the marathon In 2015, two of the partnered project sponsored by MMC Norilsk Russian State Archive, and FabLab, • FabLab-Norilsk and FabLab-Monchegorsk were launched in 2015 vocational training schools Nickel was the nation-wide literary photographs from the collection of an innovation • The sites for the laboratories were selected based on a project implementation contest from Norilsk received awards competition Literaturny Sled held on the Moscow House of Photography

Corporate So Corporate and creativity d laboratory • The laboratories feature cutting-edge equipment (3D scanners and printers, laser and milling machines, at the 3 St Petersburg International the occasion of the Year of Literature and the Company’s archives. plotters, lathes, moulding machines, etc.) enabling experiments, 3D printing, robot engineering, creation of unique designer items and interior decorations, programming, and inventions Forum of Vocational Education: in Russia. The competition aims to

] the Norilsk Industrial Engineering preserve and promote Russia’s Since 2013, MMC Norilsk Nickel and • The FabLab laboratories host training courses and workshops for schoolchildren, university students, IT professionals, engineers and other interested stakeholders and Service College won the Best literary heritage through the creation the Group’s Severny Gorod Media 2015

[ Arctic Wave • The festival took place in Norilsk and Monchegorsk in 2015 drawing in over 8,000 participants Industrial Partnership College of literary attractions. Company have been promoting the festival of R&D • The goal was to promote science and technology among the youth, support creative engineering and award in the 100 Best Russian Concentrator lecture club. Russian discoveries innovative thinking in schoolchildren, and demonstrate the development potential in the realm of Vocational Training Schools Cultural projects and international experts, world- global and domestic R&D s • Over 20 interactive sites hosting science battles and team games, quests and contests, experiments competition, with the Polytechnic at the level of local communities renowned scientists, sociologists, and tests, lectures by young scientists and educational R&D shows College of the Norilsk State One of the nominations in the World politicians and businessmen have all

5th All-Russian • MMC Norilsk Nickel is a general partner of the festival Industrial Institute coming as a of New Opportunities’ Socially come here to deliver public lectures Science Festival in • Educational R&D lectures, science shows, workshops and contests runner-up in the same competition. Responsible Initiatives Competition for the Norilsk residents. The project kel Group’ Krasnoyarsk c i • Over 50 R&D organisations, universities, innovation centres, plants and enterprises of the Krasnoyarsk is the Renaissance Pole. It serves to helps foster and preserve an active Territory and other Russian regions took part to showcase their most advanced products

k N Support for cultural projects support projects designed to and competent city community s • The Company initiated and sponsored the participation of a delegation from state-funded public and Support for cultural projects is preserve and give new life to cultural continuously raising awareness municipal organisations of Norilsk, Dudinka, Monchegorsk, and the Pechengsky District, that focus oril predominantly on R&D projects provided as part of MMC Norilsk heritage, tap into creative potential, among the wider Norilsk population. N • The number of attendees totalled 65,000 people. Nickel’s general charity strategy and develop various forms of art, and School of Urban • A joint project by MMC Norilsk Nickel and the Kudrin Fund for Supporting Civil Initiatives encompasses two focus areas. offer new leisure activities for the Competencies • The goal is to raise financial awareness, foster social activism and encourage new projects • The target audience includes secondary school graduates and teachers from Norilsk, the Taimyrsky Dolgano-Nenetsky Municipal District, Monchegorsk and the Pechengsky District of the Murmansk Region • In 2015, the School hosted workshops for teachers and schoolchildren, and staged the Our City educational festival. The winning participants went to Crimea to take part in the Field Academy of Project Management expedition

2 The list of 2014–2015 winners is available at www.nornik.ru – The World of New Opportunities Charitable Programme – Partnership.

1 All training is free for the participants under the World of New Opportunities programme 120 9.3. Transport Nordavia is another socially Yenisey River Shipping Company accessibility responsible air carrier supporting air transports socially important cargoes operations on local routes between to various destinations across NORILSK NICKEL’S TRANSPORT AND LOGISTICS ASSETS The essential role of our transport Arkhangelsk and Amderma, Naryan- the Krasnoyarsk Territory. During and logistics operations for Mar, Solovki and Usinsk. As part of the short period of spring floods, communities across the Group’s the 2010–2020 Federal Russian it ensures delivery of fuels and footprint is due to the remote Transport Development Programme lubricants, food and other goods location of Norilsk Nickel’s key and the Memorandum of Intent to locations with limited transport production facilities, their position signed between the Federal Air accessibility on the Podkamennaya as a mainstay of local economies, Transport Agency and MMC Norilsk and Nizhnyaya Tunguska rivers and and the severe Arctic climate. The Nickel, design and cost estimate in other areas. The shipping Group’s transport and logistics documents were developed in 2015 company operates its own search business includes companies for the reconstruction and the repair and rescue fleet and takes part in OWN RAIL CAR OWN SEA OWN RIVER following directly in the traditions of of the Norilsk Airport (“Alykel”) and emergency response missions on the Polar civil aviation and maritime its infrastructure. The airport is internal water routes of the Yenisey AND LOCOMOTIVE FLEET: FLEET: COMMUNITY shipping, which date back to the expected to become the Basin. FLEET: 1930s. centrepiece of Russia’s Arctic Zone  SELFPROPELLED VESSELS ICECLASS VESSELS development project. Preparations Local shipping between different  CONTAINER FLATCARS Norilsk Branch of Taimyr Air are now completed with core locations along the Yenisey River  TOWED VESSELS

eport eport Company is the only helicopter construction and assembly works is carried out by dry cargo vessels SWITCH LOCOMOTIVE airline in the region that is able to planned for 2016–2018. of Norilsk Nickel’s Murmansk promptly respond to various Transportation Branch. They deliver YERMAK ELECTRIC LOCOMOTIVE ibility R ibility

s industrial and social needs of the NordStar Airline takes part in the socially important goods from region. Along with serving Norilsk Regional Air Passenger Flights Dudinka shipping agricultural pon М DIESEL LOCOMOTIVE s

e Nickel’s production enterprises National Subsidy Programme products as their return cargo (including transportation of shift providing subsidised fares on and carry cargoes for the Russian

ial R ial PORTS c personnel, equipment, life support regular routes. In 2015, NordStar Emergency Situations Ministry products, etc.), its helicopters fly operated the following routes: to deal with emergencies. search and rescue missions and Norilsk–Moscow, Norilsk– SEA PORTS DUDINKA, OPERATED carry passengers on socially St Petersburg, Norilsk–Sochi, In 2015, Norilsk Nickel invested ARCHANGELSK AIRCRAFT FLEET: important local routes, including Norilsk–Mineralnye Vody, Norilsk– a total of RUB 1.6 bn into its transport

Corporate So Corporate RIVER PORTS those connecting the municipal Anapa, Novosibirsk–Kyzyl–Irkutsk, and logistics assets1, including KRASNOYARSK, LESOSIBIRSK  AIRCRAFTS region’s centre Dudinka with remote Novosibirsk–Strezhevoy, RUB 0.96 bn of capex for

] and hard-to-reach locations. Novosibirsk–Omsk–Yekaterinburg, construction.

Yekaterinburg–Strezhevoy, 2015

[ Krasnoyarsk–Strezhevoy, For more details on operating results Krasnoyarsk–Novosibirsk, and implemented development Krasnoyarsk–Ulan-Ude, projects in the realm of Norilsk NORILSK NICKEL’S CARGO AND PASSENGER TRAFFIC IN 2015:

s Krasnoyarsk–Yekaterinburg and Nickel’s transport and logistics Novosibirsk–Tomsk. operations, see the Transport and Logistics section of the Group’s 2015 PORTS HANDLED , KT OF CARGO annual report. kel Group’ AIRLINES CARRIED . M PASSENGERS AND . KT OF CARGO c i k N s OWN SEA/RIVER FLEET CARRIED ,
. KT OF CARGO, INCLUDING
.
KT OF GAS CONDENSATE oril N OWN RAIL CAR AND LOCOMOTIVE FLEET CARRIED . KT OF CARGO

1 Total spend including VAT.

a flight connection Dudinka Port opened was established between for the year-round 1937 Norilsk and Krasnoyarsk 1978 navigation 122 10. Awards and accolades 11. About the report

• • Company awards MMC Norilsk Nickel topped the Norilsk Nickel won the Leaders Norilsk Nickel is one of Russia’s Information provided herein was To assess the materiality of CSR Corporate Transparency of Major of the Russian Business: trailblazers in non-financial public obtained both from corporate disclosures (aspects), MMC Norilsk • At the 8th People Investor 2015 Russian Companies 2015 rating, Dynamics and Responsibility reporting. The Company has been reports and on special information Nickel developed and implemented Forum, the Association of becoming the corporate 2014 national competition held releasing annual corporate social requests based on the a dedicated procedure compliant es Managers of Russia announced transparency leader among by the RSPP in the Contribution responsibility reports since 2003. recommendations contained with the GRI G4 Guidelines. winners of the CSR project private companies. The survey to Solving Social Problems This Corporate Social in the GRI G4 Guidelines and the contest, with Norilsk Nickel’s is conducted annually by the special category. Responsibility Report (the “CSR GRI Mining and Metals Sector Based on the GRI G4 cycle

d accola World of New Opportunities Russian Regional Integrated Report” or the “Report”) is the Supplement. The Company also (identification – prioritisation – charitable programme winning Reporting Network. • As decreed by Dmitry Medvedev, Company’s 12th non-financial incorporated RSPP’s (Russian validation – review), the Company s a nd s in the Development of Local d the Government Chairman (Prime public report. It describes the Union of Industrialists and conducted a survey to update the Communities nomination. • MMC Norilsk Nickel’s 2014 Minister), the Government of the results of the Company’s Entrepreneurs) recommendations list of material disclosures (aspects) war A annual and CSR reports received Russian Federation congratu- operations from 1 January 2015 on the use of key performance made for the 2014 CSR Report. • In addition, the programme was prizes at the 8th Annual Report lated Norilsk Nickel on its 80th to 31 December 2015 along with indicators and RSPP’s Council To this end, survey forms were sent rated by the Social Project Fund Competition held by the Moscow anniversary expressing gratitude mid-term and long-term objectives recommendations on non-financial to the Company’s employees (heads among Top 30 Russia’s Best Exchange and the Securities for the Company’s outstanding for a number of reporting items1. reporting included in the 2014 CSR of departments, functions and units, Social Projects. The 2015 contest eport eport Market Forum. The Company’s contribution to the development The Report has been prepared in Report. When drafting the report, managers and associates) who were brought together over 70 partici- annual report received acclaim of the Russian metals industry. compliance with the GRI G4 the Company made sure that it part of the 2015 Report work group, pants acclaimed for making a as the Best Annual Report of the Sustainability Reporting Guidelines, covered all material CSR and external stakeholders

ibility R ibility significant contribution to promot- s Companies with Capitalisation Employee awards comprehensive option. disclosures (aspects) specified in (representatives of local authorities, ing socially responsible business over RUB 200 bn, and its CSR In 2015, 4,669 employees of [G4-28, G4-29, G4-30] the ISO 26000:2010 Guidance on communities, public, environmental pon

s practices.

e report was named the Best the Group received various awards Social Responsibility. Traditionally, and other organisations). In 2015, Corporate Social Responsibility for their outstanding production Traditionally, the Report special attention was paid to the the Company sent survey forms to

ial R ial • In 2015, MMC Norilsk Nickel was c and Sustainable Development achievements and long-standing aims to inform a wide range of investment community feedback a larger number of environmental ranked as one the companies Report (special RSPP’s and diligent work, including stakeholders on the Company’s on the previous CSR Report. and public reporting expert with the highest integrated score nomination). 45 employees honoured with strategy and mission, its organisations compared to across the indices of Responsi- government awards, 435 em- sustainable development Unless stated otherwise herein, the previous year, and received bility and Transparency and • The Company won the Best 2014 ployees – with ministry and agency principles, key highlights and the 2015 CSR Report does not 56 filled forms from its employees

Corporate So Corporate Sustainable Development Vector Corporate Social Responsibility awards, 1,130 employees who results of the reporting period, contain any substantial corrections and 21 forms from external compiled by the Russian Union Report award at the 9th Corpo- received awards from regional and the Group’s impact on of indicators or historical data stakeholders. [G4-18, G4-22] of Industrialists and Entrepre-

] rate Website and Annual Report and municipal authorities, stakeholders. published in the similar reports for neurs and the European competition held in and 302 employees who were the previous periods. [G4-22] A map of material disclosures

2015 University at St Petersburg.

[ St Petersburg. What makes this granted corporate awards. (aspects) was plotted based The indices help assess the level award even more valuable is the on the survey and stakeholder of CSR disclosure and changes fact that it was granted for the Vladimir Putin, President of the engagement results, Group-related in the performance and focus s first time in the competition Russian Federation, commended media publication analysis, and of the CSR activities. history. MMC Norilsk Nickel’s team for their benchmarking against international valuable contribution to the peer reports. • The Company’s 2014 CSR report • Kola MMC became the runner-up development of the metals industry

kel Group’ received two awards at MarCom c

i in the National Health and Safety and excellent operating results. Awards, a major international

k N Contest in 2014 for its pioneer s competition for marketing and health and safety solution. The communication professionals – oril contest was initiated by the N a Platinum Award as the Best GRI Aetalon Interregional Health and G4-Based Report and a Gold Safety Promotion Association Award as the Best Corporate supported by the Russian Social Responsibility Report. Ministry of Health and Social Development and the Associ- ation of Designers, Manufacturers and Suppliers of Personal Protective Equipment (Associ- ation PPE).

1 Bearing in mind that the Company’s operations are impacted by a multitude of factors beyond its control, the actual results in the future reporting periods may differ from the projections contained in the 2015 CSR Report. 124 The aspects that received the changes compared to the previous for the Company and its Set of disclosures highest scores were deemed reporting period. The Company did contractors. In this aspect, the (aspects) Disclosures (aspects) No. on the map material by the work group. not adjust historical quantitative Company discloses contractor Material aspects are fully disclosed indicators. The Report provides injury rates in the Occupational Economic aspects Economic performance 1 in the Report with details of consolidated results for all the Health and Safety section. [G4-21] respective management companies within the boundaries Market presence 2 approaches and performance against each aspect. For some To improve the reporting quality, Indirect economic impacts 3 indicators provided. The aspects companies, however, the the CSR Report was verified by the from the green area were deemed information is disclosed separately RSPP’s Council for Non-Financial Environmental aspects Energy 4 relevant (intermediate between based on the materiality principle. Reporting. Its opinion is provided material and non-material aspects), The disclosure boundaries in the in Appendix 6. [G4-33] Water 5 with respective management CSR Report and the consolidated

e report Biodiversity 6 h approaches disclosed in the IFRS financial statements do not The 2014 CSR Report received Report. [G4-23] substantially differ. [G4-17, G4-22] external assurance conducted by Emissions 7 a professional independent auditor bout t A Disclosure boundaries on material Material aspect boundaries for the selected through a competitive Discharges 8 aspects (see Appendix 2) are set in companies outside the Group did bidding process. For the respective such a way as to describe all the not change compared to those assurance statement, see Effluents and wastes 9 Norilsk Nickel Group’s material indicated in the 2014 Report. Appendix 7. Transport 10 eport eport impacts. The disclosure boundaries Occupational health and safety did not undergo significant aspect was deemed material both Environmental costs and investments 11 ibility R ibility s Environmental grievance mechanisms 12 pon s

e Supplier environmental assessment* 13 [G4-19, G4-20] ial R ial

c Environmental compliance 14 Material, top priority Social aspects Employment 15 7 8 9 1 3 Occupational health and safety 16 Corporate So Corporate Training and education 17

Labour practices grievance mechanisms 18 ]

2015

Supplier assessment for labour practices* 19

[ Material 5 6 12 16 20 26 29 Local communities 20

s Anti-corruption 21

4 10 2 27 21 18 17 15 Grievance mechanisms for impacts on society 22

kel Group’ Supplier assessment for impacts on society* 23 c i k N

s Product and service compliance 24

oril 11 14 28 25 22 24 Emergency preparedness 25 N

Closure planning 26 Environmental aspect Freedom of association and collective bargaining 27

Immaterial, 13 23 19 30 Economic Indigenous rights 28 but relevant aspect Compliance 29 Social aspect Supplier and contractor human rights assessment* 30

* New aspects not included in the 2014 CSR Report. 126 Appendix 1. Content Index for “In Accordance” with GRI G4 Guidelines, 1 RSPP Reference Performance Indicators and ISO 26000 [G4-32]

Excluded RSPP reference Excluded RSPP reference General standard information/ performance General standard information/ performance disclosures Page comments indicator ISO 26000:2010 disclosures Page comments indicator ISO 26000:2010 REPORT PROFILE GENERAL STANDARD DISCLOSURES G4-28 123 –

STRATEGY AND ANALYSIS G4-29 123 –

G4-1 4 – G4-30 123 –

G4-2 32, 44, 54, 76 – G4-31 152 – ICES ORGANISATIONAL PROFILE G4-32 126 – ND G4-3 9 – G4-33 124 – APPE G4-4 9 – Organisational GOVERNANCE management G4-5 152 – G4-34 39 – G4-6 14 – G4-35 39 – eport eport G4-7 14, 61 – G4-36 40, 74, 100 –

G4-8 6, 9 – G4-37 39 – ibility R ibility s G4-9 15 – G4-38 42 – 3.1.12 pon

s G4-10 10 No breakdown by 3.1.1 Labour practices G4-39 42 – e employment con- tract, employment G4-40 42 –

ial R ial type and gender c G4-41 39, 42 – G4-11 60 – 3.1.4 Labour practices G4-42 39 – G4-12 67 – Good business G4-43 42 – practices G4-44 38, Appendix 2 to the interactive version – G4-13 10, 67 – Corporate So Corporate of the 2015 annual report, par. 2.16

G4-14 84 – Environment G4-45 39, Appendix 2 to the interactive version – of the 2015 annual report, par. 5.1

] G4-15 29, 47 – 1.1 Organisational

management G4-46 39 – 2015

[ G4-16 65 – G4-47 39 – IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-48 38 – G4-49 39 –

s G4-17 124 –

G4-18 123 – G4-50 42 – G4-51 42, Appendix 2 to the interactive – G4-19 124 – version of the 2015 annual report,

kel Group’ G4-52 par. 2.16, 4.1-4.5 –

c G4-20 124, 132 – i G4-53 42 – k N G4-21 124 – s G4-54 – Not disclosed G4-22 123, 124 –

oril for personal

N G4-55 – data protection G4-23 123 – reasons Good business Good business ETHICS AND INTEGRITY practices STAKEHOLDER ENGAGEMENT practices G4-56 28 – G4-24 58 – G4-57 49 – G4-25 58 – G4-58 49 – G4-26 58 –

G4-27 67 –

1 For the report’s External Assurance Statement, see Appendix 7. 128 RSPP RSPP Excluded reference Excluded reference Material information/ performance Material information/ performance Aspects DMA and Indicators comments indicator ISO 26000:2010 Aspects DMA and Indicators comments indicator ISO 26000:2010 G4-EN13 91 – SPECIFIC STANDARD DISCLOSURES G4-EN14 90 –

CATEGORY: ECONOMIC G4-MM1 9, 91 –

Economic Performance G4-MM2 89 – DMA 54 – Emissions Environment G4-EC1 8 – 1.2 DMA 84 – 1.3 1.4 G4-EN15 86

ICES 1.6 G4-EN16 86 1.7 Indicators not disclosed ND as there are no respective G4-EC2 44 – Environment G4-EN17 86 regulatory requirements APPE G4-EC3 109 – 1.8 G4-EN18 86

G4-EC4 116 The financial assistance Good business G4-EN19 86 amount not disclosed practices G4-EN20 Negligible emissions Market Presence Labour practices eport eport DMA 14, 100 – G4-EN21 9, 85, 136 – 2.6

G4-EC5 108 – Effluents and Waste Environment ibility R ibility s G4-EC6 100 – DMA 86, 88 – pon

s Engagement in the life G4-EN22 87, 136 – 2.7 e Indirect Economic Impacts of communities and G4-EN23 9, 88, 136 – 2 .7. 2 their development ial R ial c G4-EN24 – 2.8 DMA 111 –

G4-EC7 113 – G4-EN25 89 – 2.9 G4-EC8 112 – G4-EN26 86, 138 –

Corporate So Corporate CATEGORY: ENVIRONMENTAL Environment Energy Environment Environmental compliance Good business practices DMA 94 – ]

DMA 84 – G4-EN3 9, 95 – 2.2 2015

[ G4-EN29 84 – 2.10 G4-EN4 – Reporting not required by law Transport Environment

G4-EN5 2.2.1 DMA 92 – s

G4-EN30 92 – G4-EN6 96 Overall Environment G4-EN7 – Not applicable to the

kel Group’ Company’s products DMA 84 c i Water Environment G4-EN31 9, 84 Environmental management 2.12 k N s expenses are confidential DMA 86 – under the contract with the oril

N G4-EN8 9, 87, 134 – 2.3 certification company

G4-EN9 86, 134 – Supplier Environmental Assessment

G4-EN10 87, 136 Ratio of water recycled and 2.4 DMA 67 Good business reused to the total volume practices of water withdrawal not disclosed Environment Environmental Grievance Mechanisms Good business Biodiversity Environment practices

DMA 89 – DMA 49, 85 – G4-EN11 89 – G4-EN34 50, 85 – G4-EN12 89 – 130 RSPP RSPP Excluded reference Excluded reference Material information/ performance Material information/ performance Aspects DMA and Indicators comments indicator ISO 26000:2010 Aspects DMA and Indicators comments indicator ISO 26000:2010 CATEGORY: SOCIAL Supplier Human Rights Assessment

Labour Practices and Decent Work DMA 67 Good business practices Employment Labour practices Society DMA 100 – Engagement in the life G4-LA1 102 No data on employee 3.1.2 Local Communities of communities and turnover by gender 3.1.3 their development and age group DMA 111 – G4-LA2 139 –

ICES G4-SO1 112 – 3.3.3 G4-LA3 No data on return to work ND and retention rates after G4-SO2 84 – 3.3.3 parental leave (by gender) APPE due to the lack of centralised G4-MM6 66 – records G4-MM7 66 – Occupational Health and Safety Labour practices Good business Anti-corruption DMA 72 – practices eport eport G4-LA5 78 – DMA 47 –

G4-LA6 10, 72, 77 No breakdown by gender 3.1.5 G4-SO3 47 – ibility R ibility

s due to the lack of 3.1.6 G4-SO4 48 – centralised records 3.1.7

pon 3.1.8

s G4-SO5 50 – e Good business Compliance ial R ial G4-LA7 76 – practices c G4-LA8 73 – DMA – Training and Education Labour practices G4-SO8 – DMA 106 –

Corporate So Corporate G4-LA9 106 No breakdown by gender 3.1.10 Supplier Assessment for Impacts on Society due to the lack of centralised records DMA 67 – ] G4-LA10 106 – Good business Grievance Mechanisms for Impacts on Society practices 2015 G4-LA11 105 –

[ Supplier Assessment for Labour Practices DMA 49, 61

DMA 67 – G4-SO11 50 s Labour practices, Product Responsibility Labour Practices Grievance Mechanisms good business Good business practices Product and Service Compliance practices, customer DMA 49, 61 relations kel Group’ c i G4-LA16 50, 61 DMA 51 – k N s Human rights G4-PR9 54 – 3.4.2

oril Labour practices SECTOR DISCLOSURES (ASPECTS) N Freedom of Association and Collective Bargaining Human rights Engagement in the life DMA 60 – Emergency preparedness of communities and their development G4-HR4 58 – 3.2.1 DMA 72 – Indigenous Rights Human rights G4-MM3 88 – DMA – Engagement in the life Closure Planning of communities and G4-HR8 – 3.2.3 their development

DMA 30, 103, 116 – G4-MM5 – G4-MM10 103, 116 – 132 Appendix 2. Identified Material Aspects and Boundaries (GRI G4) [G4-20]

Goods and transpor- Polar Geology Fuel and energy tation logistics R&D Sales Company Support Other Category Aspects Division Kola MMC companies companies companies functions companies headquarters functions companies

Economic Aspects Economic Performance

Market Presence

Indirect Economic Impacts

Environmental Energy Aspects ICES

ND Water

APPE Biodiversity

Emissions

Discharges

eport eport Effluents and Wastes

Transport ibility R ibility s Environmental Costs and Investments pon s

e Environmental Grievance Mechanisms

ial R ial Supplier Environmental Assessment c

Environmental Compliance

Social Aspects Employment

Occupational Health and Safety Corporate So Corporate

Training and Education ]

Labour Practices Grievance Mechanisms 2015

Supplier Assessment for Labour Practices [

Local Communities

s Anti-corruption

Grievance Mechanisms for Impacts on Society

Supplier Assessment for Impacts on Society kel Group’ c i Product and Service Compliance k N s Emergency Preparedness oril

N Closure planning *

Freedom of Association and Collective Bargaining

Indigenous Rights

Compliance

Supplier and Contractor Human Rights Assessment

* as regards the shutdown of the outdated Nickel Plant As for Norilsk Nickel’s foreign operations, the information on the Group-wide management approaches, revenue (as part of the consolidated revenue), headcount and key environmental impact metrics of Norilsk Nickel Harjavalta (Finland) is disclosed. This approach is in line with the Company’s strategy of exit from its foreign production assets in Africa. The detailed table including the names of the Norilsk Nickel Group companies can be found in the interactive version of this report. 134 Appendix 3. GRI G4 Specific Standard Disclosure Environmental performance

Total water withdrawal [G4-EN8]

Including:

Polar Division Branches and subsidiaries Group’s total and Norilskenergo NTEK Kola MMC

Indicator, mcm 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015

Total water withdrawal, incl.: 332.40 352.78 351.96 348.52 88.77 86.48 95.02 102.49 252.96 277.43 274.00 267.87 35.48 35.92 30.16 27.93

from surface water bodies 244.35 267.33 258.93 254.92 0.03 0.01 0.02 0.02 226.89 250.44 242.84 239.21 14.43 13.76 13.04 12.84

ICES from underground sources 26.10 27.02 31.16 28.66 0.00 0.00 0.00 0.00 26.07 26.99 31.16 28.66 0.00 0.00 0.00 0.00 ND wastewater from other organisations 15.96 15.22 21.07 21.15 10.21 9.77 15.38 15.48 0.00 0.00 0.00 0.00 0.20 0.24 0.13 0.119 APPE natural water inflow 3 7.76 33.71 31.84 34.84 24.86 21.07 23.57 28.60 0.00 0.00 0.00 0.00 12.85 12.59 8.22 6.19

municipal water supplies and other water utilities (except for NTEK) 8.25 9.51 8.96 8.94 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.00 9.33 8.77 8.79

from NTEK1 92.14 94.01 94.08 96.44 53.67 55.62 56.05 58.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 eport eport

1 Was included in NTEK’s water withdrawal. ibility R ibility s pon

s Water sources [G4-EN9] e Branches and subsidiaries Water sources and scale of impact associated with the Company ial R ial c Polar Division of MMC Norilsk Nickel Withdrawals from water systems (the Yenisei River, water bodies of the Norilo-Pyasinskaya water system and Kara Sea) do not affect the environment and cannot change the ability of the ecosystem to perform its functions. Norilskenergo Branch of MMC Norilsk Nickel

Polar Transportation Branch of MMC Norilsk Nickel

Krasnoyarsk Transportation Branch of MMC Norilsk Nickel Corporate So Corporate NTEK

Taimyr Fuel Company ]

Taimyrgaz 2015

[ Yenisey River Shipping Company

Norilsk Airport

Norilsknickelremont s Norilskgeologiya

Polar Construction Company The enterprise does not withdraw water from water sources; instead, water provided by other organisations is used. Withdrawals from the initial sources (water systems of the Yenisei River, water bodies of the Norilo-Pyasinskaya water system) do not affect the environment.

kel Group’ Norilsk Support Complex c i NTPO k N s ZPM1 oril

N Norilskpromtransport

Nortrans-Norilsk

Vostokgeologiya Withdrawals from water wells do not affect the environment.

Kola MMC Withdrawals do not affect the water sources (water bodies of the Barents Sea).

Arkhangelsk Commercial Sea Port

Murmansk Transportation Branch of MMC Norilsk Nickel The enterprise does not withdraw water from water sources; instead, water provided by other organisations is used.

Arkhangelsk Transportation Branch of MMC Norilsk Nickel

Gipronickel Institute

2 Z PM ceased its operations after the merger with Norilsknickelremont on 20 October 2015. 136 Percentage and total volume of the water recycled and reused [G4-EN10] INCLUDING: Polar Division Branches and subsidiaries Group’s total and Norilskenergo NTEK Kola MMC Indicator, mcm 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 Total volume of the water used, incl.: 1,319.50 1,347.96 1,417.80 1,421.28 563.94 564.32 567.04 574.17 535.49 569.59 634.12 634.9 178.77 172.18 175.38 171.32 utility water 27.52 27.28 25.02 21.17 12.26 12.47 11.41 12.51 7. 2 2 7.1 1 6.96 2.34 2.82 2.45 1.93 1.79 production, incl.: 1,292.33 1,320.69 1,392.75 1,400.12 551.67 551.84 555.63 561.66 528.28 562.47 627.15 632.56 175.95 169.72 173.45 169.53 water reused 38.71 39.37 39.41 40.126 3 7. 32 3 7. 39 37.38 3 7.7 0.92 0.88 0.93 0.89 0.00 0.00 0.00 0.00 water recycled 1,092.54 1,202.54 1,269.55 1,275.62 472.95 471.30 473.59 478.07 447.11 458.17 525.90 537.68 154.15 150.44 150.48 146.67 Percentage of the water reused and recycled1, % 85.7 92.2 92.3 92.6 90.45 90.10 90.1 89.8 83.67 80.59 83.08 84.8 86.20 87.40 85.80 85.6

ICES 1 Ratio of the water recycled and reused to the total volume of water withdrawn for production and utility needs. ND APPE 2 [G4-EN21] NOx, SOx, and other significant air emissions, including their type and weight Air emissions INCLUDING:

eport eport Branches and subsidiaries Total amount NO2 SO2 Solids Indicator, ‘000 t 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 Group’s total 2,097.58 2,097.03 2,088.27 2,063.52 9.52 12.13 12.13 9.84 2,044.21 2,032.85 1,947.58 2,009.11 19.20 20.63 23.09 20.67 ibility R ibility s Polar Division 1,938.49 1,912.03 1,828.09 1,883.24 1.43 1.57 1.61 1.64 1,908.01 1,881.06 1,797.18 1,853.92 8.89 9.98 9.68 8.95 pon

s NTEK 7.8 8 10.54 9.74 6.33 6.63 8.78 8.11 6.32 0.025 0.062 0.044 0.008 0.006 0.005 0.007 0.006 e Kola MMC 148.58 164.62 165.44 169.79 1.12 1.15 1.12 1.18 136.06 151.58 150.20 155.05 9.74 9.98 11.76 10.61 ial R ial 2 c Air pollutant emissions are determined on the basis of the Environmental Monitoring and Industrial Control data: emissions are calculated as per the applicable methodologies using data on feedstock and equipment running time, through sampling and analysing flue gases, direct measurements with gas analysers, etc.

TOTAL WASTEWATER AND POLLUTANTS DISCHARGE [G4-EN22] Corporate So Corporate INCLUDING: Polar Division ] Branches and subsidiaries Group’s total and Norilskenergo NTEK Kola MMC

2015 Indicator, mcm or ‘000 t 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015

[ Total wastewater discharge, mcm, incl.: 146.53 146.17 145.62 140.45 39.20 33.09 36.20 39.52 76.98 84.57 80.31 73.55 26.28 24.47 25.44 23.48 Insufficiently treated 30.23 30.09 30.90 29.58 6.37 5.81 5.94 6.01 0.00 0.00 0.00 0.00 23.50 24.06 24.60 23.48

s Contaminated untreated 34.03 26.09 26.44 27.73 30.62 25.22 25.43 27.54 0.00 0.00 0.00 0.00 2.78 0.40 0.84 0.00 Treated to standard quality at treatment facilities 2.38 2.37 4.42 5.92 2.18 2.05 4.13 5.18 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Standard clean (without treatment) 79.89 87.6 2 83.96 7 7.1 0.03 0.01 0.70 0.78 76.97 84.57 80.31 73.55 0.00 0.00 0.00 0.00

kel Group’ Pollutants discharged as part of the wastewater, ‘000 t 151.11 139.43 140.52 153.1 72.39 76.93 67.47 76.92 0.28 0.10 0.27 0.48 77.47 61.80 72.68 75.62 c i k N s

3 oril Total weight of waste by type and disposal method [G4-EN23] N Waste management Waste transfer to third-party Waste transfer to third-party Waste storage at own waste Branches and subsidiaries Waste generation Waste use at own facilities contractors (for use or treatment) contractors (for storage) disposal sites Indicator, mt 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 Total, incl.: 43.52 40.49 35.17 33.64 20.89 19.35 18.24 18.81 0.060 0.037 0.044 0.041 0.073 0.041 0.040 0.049 23.13 21.08 16.81 14.75 Polar Division 31.55 26.39 23.07 22.27 15.87 12.96 12.13 13.22 0.028 0.026 0.027 0.024 0.048 0.041 0.040 0.049 16.23 13.38 10.84 8.99 Kola MMC 11.93 14.10 12.10 11.37 5.02 6.39 6.11 5.59 0.015 0.011 0.017 0.024 0.0001 0.0002 0.0000 0.0003 6.90 7.70 5.97 5.76 3 Over 99% of the Group’s production waste account for mining waste and tailings (rock and overburden, tailings, metallurgical slag, etc.). Hazard class 1–3 waste which is not mining waste and tailings is production waste (mercury lamps, thermometers, batteries waste, used oil, etc.); such waste About 50% of the waste is used in-house, while the rest is stored at the Company’s waste disposal sites. is below 0.1% of the total waste volume and is transferred to specialist contractors for use, treatment, recycling or recovery. Hazard class 4–5 waste which is not mining waste and tailings is production waste (construction waste, waste generated by treatment facilities, sweepings, etc.) and consumption waste (solid waste and other similar waste, etc.); such waste accounts for 0.9% of the total waste and is subject to storage at the waste disposal sites. 138 Water sources used for wastewater discharge [G4-EN26] Social performance

Branches and subsidiaries Water sources

Polar Division of MMC Norilsk Nickel Water bodies of the Yenisei River and Norilo-Pyasinskaya water system are used to discharge wastewater. Benefits for full-time, temporary and part-time employees [G4-LA2] Norilskenergo Branch of MMC Norilsk Nickel Employees of Polar Division Full-time Temporary Seasonal Part-time Polar Transportation Branch of MMC Norilsk Nickel of MMC Norilsk Nickel work work (1) work work

Norilsknickelremont Reimbursement of vacation travel expenses (incl. + +(2) +(2) – return fare) Polar Construction Company All kinds of financial aid + + + +

Norilsk Support Complex Health resort treatment and vacations + – – –

ICES Taimyr Fuel Company Vouchers for children’s wellness recreation tours + – – – ND Taimyrgaz Pension plans + – – –

APPE Termination benefits (apart from those prescribed + +(3) +(3) +(3) Yenisey River Shipping Company by the applicable law)

Norilsk Airport Other benefits:

Prosthetic care + – – – NTEK eport eport Burial + +(4) +(4) +(4) Norilskpromtransport Industrial injury benefits + +(4) +(4) +(4) ibility R ibility

s NTPO Additional remuneration paid to employees + + + + working in the Company’s Far North facilities pon 1 s ZPM The enterprise does not use water sources to discharge wastewater.

e from the first day of employment

Norilskgeologiya If an occupational disease has been diagnosed – + – – – ial R ial

c reimbursement of travel expenses to the medical Nortrans-Norilsk facility, paid leave days Three paid leave days in case of death of an + +(4) +(4) +(4) Vostokgeologiya employee’s close relative

Arkhangelsk Transportation Branch 1. Work under a fixed-term employment contract. Corporate So Corporate of MMC Norilsk Nickel 2. According to the collective bargaining agreement and local regulations, such categories of employees are not excluded from benefits; however, in practice, travel expenses are not reimbursed since no vacation is granted to such employee.s Krasnoyarsk Transportation Branch 3. According to the collective bargaining agreement and local regulations such categories of employees are not excluded from of MMC Norilsk Nickel the reimbursement of expenses associated with relocation, it is practically possible. No severance pay is provided by mutual agreement. ]

4. According to the collective bargaining agreement and local regulations, such categories of employees are not excluded from benefits, Gipronickel Institute it is practically possible. 2015

[ Kola MMC Wastewater is discharged into the water bodies of the Barents Sea. EMPLOYEES Full-time Temporary Seasonal Part-time OF KOLA MMC work work (3) work (4) work Arkhangelsk Commercial Sea Port Wastewater is discharged into the water bodies of the Northern Dvina River. s Reimbursement of vacation travel expenses + + – – Murmansk Transportation Branch Kola Bay of the Barents Sea (incl. return fare) of MMC Norilsk Nickel All kinds of financial aid + + – – (5) 1 ZPM ceased its operations after the merger with Norilsknickelremont on 20 October 2015. (5) kel Group’ Health resort treatment and vacations + + – – c i Vouchers for children’s wellness recreation tours + + – – (5) k N s Pension plans + + – + oril

N Termination benefits (apart from those prescribed + + – – by the applicable law)

Voluntary health insurance(1) + + – +

Benefits under the Professional Start programme – + – –

Benefits to new employees(2) + – – –

1. Granted to certain categories of employees. 2. The benefits package (travel expenses paid to the employee and their relatives, paid luggage container) is subject to the management decision. 3. Work under a fixed-term employment contract. 4. At Kola MMC, no seasonal work is carried out; employees do not work seasonally. 5. At Kola MMC, all the work is done by in-house part-time employees only, those who receive benefits from their primary employer. 140 Appendix 4. List of Abbreviations

ADR American Depositary Receipt KBNN Norilsk Nickel’s corporate stand up comedy contest

AML/CTF Anti-money laundering / counter-terrorism financing KPI Key performance indicators

ASCAPC Automatic System for Commercial Accounting of Power Consumption Kt Thousand tonnes

Au Gold M cu m Million cubic metres

BD Board of Directors Mtpa Million tonnes per annum

CEEMEA Central and Eastern Europe, Middle East and Africa Mt Million tonnes

CEN Customs Enforcement Network Ltd. Limited liability company

CEO Chief Executive Officer LTIFR Lost time injury frequency rate ICES

ND CIMS MMC Norilsk Nickel’s Corporate Integrated Quality and Environmental Management System MICEX Moscow Interbank Currency Exchange

CIS Commonwealth of Independent States MMC Mining and metallurgical company APPE

CJSC Closed joint-stock company MPP Mining and processing plant

COO Chief Operating Officer Ni Nickel

CSR Corporate social responsibility NKVD People's Commissariat for Internal Affairs eport eport Cu Copper NO Nitrogen monoxide

DMA Disclosure on Management Approach NO Nitrogen dioxide

ibility R ibility 2 s EBITDA Earnings before interest, tax, depreciation and amortisation NPO Nonprofit organisation pon s

e FCPA US Foreign Corrupt Practices Act NTEK Norilsk-Taimyr Energy Company (JSC)

ial R ial FCSM Federal Commission on Securities Market of Russia NTPO Norilsk Trading and Production Company c Fe Iron OHSAS International occupational health and safety management system specification

FFMS Federal Financial Markets Service of Russia OJSC Open joint-stock company

FIFR Fatal injury frequency rate Pd Palladium

Corporate So Corporate FTE Full-time equivalent PGM Platinum group metals

GHG Greenhouse gas PJSC Public joint-stock company ] GJ Gigajoules PPE Personal protective equipment 2015 GOST GOST standards Q Quarter (of a year) [ GRES District thermal power plant R&D Research and development

GRI Global Reporting Initiative RSPP (RUIE) Russian Union of Industrialists and Entrepreneurs s Group Norilsk Nickel Group of Companies Pt Platinum

H Half-year SO2 Sulfur dioxide

kel Group’ HPP Hydropower plant TASS Russian News Agency TASS c i

k N HQ Headquarters TJ Terajoule s HR Human resources TPP Thermal power plant oril N HSE Health, Safety and Environment UNESCO United Nations Educational, Scientific and Cultural Organisation

IFRS International Financial Reporting Standards UNICRI United Nations Interregional Crime and Justice Research Institute

IISRC International Information Security Research Consortium USA (US) United States of America

IMS Integrated Management System USD United States dollar

IPA International Platinum Group Metals Association USSR Union of Soviet Socialist Republics

ISO International Organisation for Standardisation VAT Value-added tax

IUCN International Union for Conservation of Nature and Natural Resources ZPM Scrap Metal Recycling Plant

JSC Joint-stock company Link to the interactive version of the Norilsk Nickel Group’s Corporate Social Responsibility Report 142 Appendix 5. Glossary Corporate culture means a Environmental protection and HR management strategy means Payroll budget means total payroll Stakeholder engagement means combination of standards, values resource efficiency mean corporate principles, regulations and and social payments. the company’s activities aimed Alternative employment model and beliefs that determine the way programmes aimed at minimising the approaches to personnel at identifying stakeholders’ means an employment model where the company addresses the matters company’s environmental impact. management focused on efficient Personnel development means a set expectations and concerns an employee occasionally works in of internal integration and external implementation of the company’s of initiatives aimed at employee and their engagement in decision- the region of employment different adaptation, guide and motivate daily Functional units mean organisational business strategy and providing for recruitment, adaptation, retention, making process. from their region of permanent behaviour of employees, while also units engaged in functional unlocking of the employee potential, and fully unlocking their professional residence. transforming under its influence. management of specific operations in order to achieve corporate goals. and creative potential. Stakeholders mean individuals and across the company’s branches, legal entities or their groups having Business units mean the company’s Corporate Social Responsibility subsidiaries and facilities. HR policy means a set of standards, Risk means a potential negative a set of expectations about the branch divisions, subsidiaries and Report (non-financial report) means rules, regulations, concepts and impact of external and internal company or affected by its oper- facilities involved in production and an accessible, accurate and Global Reporting Initiative, goals determining the company’s HR factors on achieving corporate goals. ations, influencing its managerial rendering services, and having its balanced description of the main or the GRI means an independent management practices (personnel decisions while being themselves own organisational structure, aspects of the company’s activities organisation whose mission planning and record keeping, Safe working conditions mean influenced by such decisions. business plans and personnel. and achievements pertaining to its is to develop and promote the recruitment, adaptation, training and working conditions where Stakeholders include the company’s values, goals and sustainable Sustainability Reporting Guidelines development, remuneration and occupational exposure to harmful shareholders, investors, employees, APPENDICES Certification means confirming development policy, and addressing across the globe. incentivisation, performance and/or hazardous production factors suppliers, contractors, consumers, compliance of qualitative the matters of most importance for assessment, social security, etc.) in is prevented or controlled within the trade unions and other public characteristics with quality standard the key stakeholders. This is a way of Head Office’s business unit means a line with its development strategy. set limits. organisations, federal and local requirements. publicly informing the shareholders, Head Office’s business unit reporting authorities, mass media, residents of employees, partners and other directly to the Company’s President Human Capital Development areas where the company operates, eport eport Social package means a set of stakeholders of the company’s and others. Charitable activities mean the or Vice President. Programme means a set of priority benefits, compensations, additional progress towards its goals and company’s voluntary transfer of measures focused on bringing payments, statutory and additional objectives set out in its mission human capital to a new level in line Standard means a guideline ibility R ibility property, including cash, free works Health and safety system means services provided to employees by s statement and strategic and services, and other support, to an occupational health and safety with the company’s strategic goals the employer on top of their salary. stipulating rules, regulations and development plans with respect to pon and objectives. requirements applied to the object

s legal entities or individuals free of protection system embracing legal, e financial and environmental stability, of standardisation. charge or on preferential terms. social, economic, organisational, Social partnership means a and social security. Incentivisation means tools and ial R ial technical, sanitary, hygienic, framework of relationships among c Collective Bargaining Agreement healthcare, rehabilitation and other methods of boosting staff employees (their representatives), Sustainable development means a Corporate social responsibility, means a legal instrument governing activities. performance and productivity, employers (their representatives), concept developed by the UN, which or the CSR means a corporate social and labour relationships within motivating an employee or a group and national and local government acknowledges the role of business behaviour philosophy and concept a company or a sole trader business HR management policy means of employees to achieve corporate authorities aimed at reconciling in ensuring sustainable development applied by the business community, and signed by the representatives of an end-to-end integrated HR goals. interests of employees and of the society; a concept of global Corporate So Corporate companies and specific business employees and the employer. management system including employers on matters pertaining to community development factoring community representatives to their all stages of employee-employer Local community development the regulation of labour relations and in interests of both living and future activities aimed at meeting programmes mean corporate social generations.

] interaction, from recruitment to other directly associated matters. Compliance means conducting stakeholder expectations and retirement and post-retirement programmes implemented business in compliance with the ensuring sustainable development. 2015 requirements of government support. voluntarily and intended to Social programmes mean voluntary Young talent means graduates of [ authorities, applicable laws, contribute to the development of corporate initiatives pertaining to universities and colleges whose Employee performance regulations, guidelines and local communities. employee development and post-graduate experience does not management framework means a motivation, creating favourable exceed three years.

s standards, including corporate combination of methods, processes policies and procedures, and ethical Mission means a statement of the working conditions, promoting and procedures designed to boost business practices. company’s goals and objectives that corporate culture and charity, and employee performance in line with distinguish it from its peers. supporting local communities. These the Norilsk Nickel Group’s corporate

kel Group’ initiatives are implemented on a

c strategy. The framework also covers i Occupational disease means a regular basis in line with the employee performance assessment k N health disorder caused by a company’s business strategy, and s and competency review. systematic and lasting exposure to focused on satisfying balanced

oril workplace factors or a combination requests of various stakeholders. N of production-specific working From the management perspective, conditions. a social programme is a set of initiatives carefully planned in terms of resources, workforce and timeframes, and efficiently address- ing the company’s internal or external social objectives. 144 Appendix 6. The Council for Non-Financial The Report was assessed based This Opinion has been prepared Opinion of the Russian Union of Industrialists Reporting of the Russian Union of on the following criteria of for MMC Norilsk Nickel. The and Entrepreneurs’ Council for Non-Financial Reporting Industrialists and Entrepreneurs information completeness and Company may use it for both (the “Council”), established as per materiality: corporate and stakeholder Opinion of the RSPP Council for Non-Financial Reporting on the Norilsk Nickel Group’s 2015 Corporate Social Responsibility Report the Management Bureau’s • Information is considered to be communication purposes by for the purposes of public verification Resolution dated 28 June 2007, material, if it reflects the publishing the original version reviewed, at MMC Norilsk Nickel’s company’s efforts to implement without any changes. request, the Norilsk Nickel the principles of responsible Group’s 2015 Corporate Social business conduct set out in the CONCLUSIONS Responsibility Report (the Social Charter of the Russian Based on the review of the Report “Report”). Business (see www.rspp.ru). and the information publicly • Completeness implies that the available at the Company’s official

APPENDICES The Company requested the RSPP company provides a compre- website, and following a collective to arrange for the public verifi- hensive overview of its discussion of the results of the cation of the Report, with the operations, including the Report’s independent assessment Council for Non-Financial underlying values and strategic undertaken by the members of the eport eport Reporting providing an opinion on benchmarks, governance Council for Non-Financial the completeness and materiality systems and structures, Reporting, the Council confirms as ibility R ibility s of the Report’s information about accomplishments and key follows:

pon deliverables, and the stake-

s the Company’s operations from e holder relationship framework. the perspective of the Social The Norilsk Nickel Group’s 2015 ial R ial c Charter of the Russian Business, Corporate Social Responsibility which sets out key principles of The procedure for public verifi- Report covers the key areas of responsible business conduct. cation of the Report factors responsible business conduct in in the Company’s application accordance with the principles Corporate So Corporate From 28 April to 13 May 2016, of international reporting frame- set out in the Social Charter of the Council members reviewed works; this Opinion does not, the Russian Business, and ] the content of the Company’s however, purport to assess the provides sufficient information 2015 Report and passed this Opinion Report’s compliance with such about the Company’s operations [ in accordance with the Council’s international frameworks. in relation thereto. Procedure for Public Verification s of Corporate Non-Financial The Company is responsible for Reports. the information and statements provided in the Report. kel Group’ c i The Council members possess The accuracy of the Report’s k N s all the required competencies information is beyond the scope of

oril in corporate responsibility, the public verification procedure. N sustainable development and non-financial reporting, comply with the ethical requirements for independence and impartiality, and provide their personal expert opinion rather than the opinion of organisations they represent. 146 The recommendations made by and corporate governance system, context of the social partnership Human rights Environmental protection Contribution to the development the RSPP Council following the and inclusion of the relevant framework, the human capital The Report highlights the The Report provides information of local communities public verification of the Norilsk metrics into the Company’s KPI development programme, and Company’s commitment to human about the Company’s environ- The Report focuses on the Nickel Group’s 2014 Report were framework. The Report also the HSE strategy. It provides data rights in line with the generally mental priorities, development priorities of the Company’s social duly noted and incorporated into serves to highlight the key about the incentive and remune- accepted international principles of its environmental management policy, providing information the 2015 Report. For example, investment projects. It traces the ration systems, social programmes and the applicable law of the system, and implementation of the about its role as the major the Company enhanced the development of the risk manage- for employees (including the countries of operation. It provides environmental policy, disclosing taxpayer and employer in the scope of disclosed specific ment framework (including makeup and headcount of details about the corporate a significant number of relevant social and economic development strategic benchmarks and non-financial risks), and describes participants), and employee documents formalising the said performance indicators and of local communities. It also targets. Data on the actual the Company’s reconfiguration training initiatives. The Report principles and rules, including the environmental spending data. The covers the way the Company performance across the reporting programme objectives and the offers insights into the dialogue prevention of any discrimination. Report describes the Company’s contributes to the economic period’s core operations are organisational solutions aimed at with business partners and The Report also focuses on the key environmental objectives and stability of local communities by

APPENDICES linked to the forecasts. Over- boosting economic efficiency and associations, and describes respect of labour rights and strategic benchmarks, and offers fostering cooperation in procure- views of the external social environmental safety through cooperation with authorities, provision of social guarantees, the assessment of its environmental ment with the Krasnoyarsk programmes provide information restructuring and upgrades. The communities and NGOs to address including occupational health impacts across the footprint. Territory’s businesses. The Report about the used assessment tools. Report contains information about the social, economic and environ- initiatives and the improvement For example, it states that the speaks about the Company’s eport eport the key focus areas’ management mental issues. The Report of social and working conditions implementation of the adopted efforts to help local communities The Company’s 2015 Report systems, including quality discloses information about for employees. The Report reconfiguration programme is in dealing with social challenges ibility R ibility

s contains material information assurance and anti-corruption supplier relations, including data provides information about the expected to significantly mitigate based on cooperation agreements

pon relating to the following aspects management. It presents the relating to import substitution and re-employment, retraining and the environmental impact on the signed with different authorities in s e of responsible business conduct: Company’s major R&D projects increase in the market share of relocation agreements signed Norilsk Industrial District. The the regions. The Report highlights

ial R ial and achievements, and the domestic suppliers. It provides with the employees of Nickel Plant Report features information about key areas of cooperation, c Economic freedom development of regulations details about customer relations slated for shutdown, and offers the steps taken to reduce pollutant including transforming Norilsk into and responsibility intended to introduce the focused on the improvements in insights into the scope of the emissions and discharges, mitigate a sustainably developing urban The Report discloses information business culture based on the product quality, and the results of existing collective bargaining the environmental impact of environment, promoting profes-

Corporate So Corporate about the Norilsk Nickel Group’s principles of responsibility. a customer satisfaction monitoring agreements. The Report gives man-made waste materials, and sional training and employment, core lines of business, footprint exercise. The Report also offers some colour on the Company’s preserve biodiversity through developing social infrastructure,

] information about stakeholder safety initiatives targeting cooperation with nature reserves. contributing to the long-term and position in the industry. It Business partnerships The Report provides details about engagement in the context of employees of both the Group’s It covers the energy consumption programme to relocate people

2015 describes the key companies’

[ production chains, and provides the focus areas and deliverables public reporting preparation. operations and its contractors. strategy and initiatives and living in Norilsk and Dudinka to main financial and operational of the Company’s stakeholder It also covers the Company’s provides relevant indicators, the Russian regions with favour-

s results for 2015. The Report sets engagement activities, their recognition of the rights of and presents data on fuel savings able climate conditions. It also out the principles and priorities of priorities, formats and tools. It the indigenous peoples living and projects aimed at decreasing gives details about the funding the Company’s strategy focusing describes the steps taken to in the areas of its operations, energy consumption and improving and key deliverables of the

kel Group’ enhance transparency, and the and the initiatives intended to energy efficiency. The Report respective programmes. The c on Tier 1 assets, value chain i development of shareholder and preserve and develop the culture also dwells on the approval of Report offers insights into the

k N optimisation, and improvements in s capital and investment manage- investor relations. The Report of the peoples of the Far North. the Company’s Fuel and Energy Company’s charity strategy, its oril

N ment. It provides details about the pays special attention to the Development Strategy, which is key mechanics and outputs. It lists integration of CSR and sustainable employee-related policies, and linked to the Group’s key produc- the focus areas and programmes development into the strategic covers major achievements in the tion projects. for social investments, such as the support of social entrepreneurship and corporate volunteering, and provides an overview of approaches to the Company’s social performance assessment. 148 Final provisions The 2015 Report is the Company’s It is also recommended that going It may be concluded from the The Report provides details about systems, it seems appropriate to Information in the Report gener- twelfth non-financial report, which forward the environmental Report that the Company makes investments in local communities, suggest that the Company should ally reflects the Company’s demonstrates its determination impacts section provide not only an extensive use of various tools charitable activities and tools use the RSPP Guidelines for consistent work towards the to consistently develop reporting gross figures, but also per unit to monitor internal processes. In used to assess their efficiency, Companies on Self-Assessment of integration of corporate social processes and enhance metrics. This would give a clearer particular, it carries out customer which is viewed as material Social Responsibility Activities in responsibility and sustainable transparency. The Company uses view of performance evolution and employee satisfaction information. It is recommended Accordance with ISO 26000:2010. development principles into its various forms of independent in the areas of air and water surveys, and summarises that the Company pursue this Experience shows that this tool business practices. The Report assessment and confirmation of protection, waste treatment employee queries and grievances theme going forward offering a may be used to diagnose pro- contains a significant amount of disclosed information (professional and energy efficiency. to the Corporate Trust Service. For wider coverage of achievements cesses across business opera- information about the Company’s audit and public verification). This the greater accuracy and richness and programme/project perfor- tions and in separate units. It impacts on society and the reflects the Company’s commitment Another positive point is that of provided information, it should mance measurements in this field. would be useful to carry out such environment, its strategy and to keeping stakeholders informed the Report reflects the evolution be further enhanced with data on diagnostics in the future highlight-

APPENDICES policies in the key focus areas, and maintaining the high quality of of data over the span of several how the Company evaluates and In preparing the Report, the ing substantial aspects, assess- and the deliverables of the disclosures. years, which increases the value uses the obtained results, and Company adopted an approach ment results and associated associated programmes. It covers of disclosures. However, the how the latter influence manage- involving the selection of material management decisions. main focus areas and formats of RECOMMENDATIONS completeness and quality of such ment decisions and help improve disclosures defining the key eport eport stakeholder engagement, While acknowledging the Report’s disclosures also depend on clear the existing procedures. Specific contents of the Report in line with The RSPP Council for Non-Financial including those used in preparing strong points, the Council calls data interpretations and com- examples would be greatly the recommendations of the GRI Reporting hereby takes a positive ibility R ibility

s the Report. attention to some aspects of ments accompanying quantitative appreciated. G4 Guidelines. It is advisable to view of the Report, supports

pon disclosures’ materiality and metrics. It is therefore recom- further develop these practices MMC Norilsk Nickel’s commitment s e Use of the internationally and completeness, which should be mended that more attention be The Report includes relevant and pursue a broader engage- to responsible business practices, ial R ial

c domestically recognised non- addressed in the future reporting paid to the description of occupa- references to the annual report as ment with stakeholders in notes consistency in developing financial reporting tools (such as cycles. tional health and safety issues, a source of more details on the preparing and presenting the reporting process, and the GRI G4 Sustainability Report- most notably, the explanation of Company’s economic perfor- the Report, including through confirms that the Norilsk Nickel ing Guidelines, the GRI G4 Sector The Council notes that the key challenges. In future reports, mance. At the same time, going dialogues and public hearings. Group’s 2015 Corporate Social

Corporate So Corporate Disclosures and the RSPP Key previous non-financial report it would also be appropriate to forward, it seems appropriate to Responsibility Report has passed Performance Indicators) ensures recommendations remain valid provide energy consumption and extend the scope of economic Given MMC Norilsk Nickel’s the public verification procedure.

] environmental impact indicators topics closely related to sustain- comparability of the Group’s and good for use going forward. commitment to the principles for new major construction able development, such as

2015 information with that of other of corporate responsibility

[ Russian and international The Report features the Com- projects, such as the Chita resource depletion, economic and sustainable development, companies. The structure and key pany’s targets and plans for project, for example. consequences of the non-financial and ongoing improvements

s topics of the Report were defined a number of important business risks listed in the Report, etc. in the corporate management in line with ISO 26000, while lines, which is one of its obvious material disclosures were selected merits. It is recommended that kel Group’

c with the contributions from in the next reporting cycles i

k N stakeholders. the Group uphold this approach s broadening the scope of disclosed Chair of the RSPP Council

oril for Non-Financial Reporting Fedor Prokopov N topics. For example, improve- ments in labour productivity may as well be a topic of interest. Deputy Chair of the RSPP Council for Non-Financial Reporting Elena Feoktistova 150 Appendix 7. Independent auditor conclusion APPENDICES eport eport ibility R ibility s pon s e ial R ial c Corporate So Corporate ]

2015

[ s kel Group’ c i k N s oril N 152 Contacts

Svetlana Ivchenko Head of the Social Policy Department MMC Norilsk Nickel [G4-5, G4-31]

Address: 15, 1st Krasnogvardeysky Drive, Moscow, 123100, Russia Tel.: +7 495 786 8390 Fax: +7 495 755 6737

tacts Email: [email protected] n o C

facebook.com/NorilskNickelRU

eport eport twitter.com/NornikOfficial ibility R ibility

s vk.com/nornik_official pon s e youtube.com/user/NornikOfficial ial R ial c instagram.com/norilsknickel/

feeds.feedburner.com/nornik/AIDB Corporate So Corporate http://norilskfilm.com/ Norilsk through the eyes of its residents ]

http://80.ttelegraf.ru/ MMC Norilsk Nickel’s 80th anniversary 2015

[ s kel Group’ c i k N s oril N