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2019 Sustainability Report

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2019 Sustainability Report 2019 SUSTAINABILITY REPORT The 2019 Sustainability Report of Nornickel The report covers operations of the Nornickel Group Each year, the Company’s Report undergoes external Group (the “Report”) is the sixteenth public non- companies (“Nornickel Group”, “Nornickel”, or assurance procedures, including independent financial report prepared by MMC Norilsk Nickel the “Company”). For the purposes of this Report, professional assessment of the Report’s compliance and addressed to a wide range of stakeholders. Nornickel Group shall refer to MMC Norilsk Nickel with the GRI Standards and the RSPP public and the entirety of operations of the Nornickel Group verification procedure. 102–50 companies. Unless otherwise specified or required 102–56 by the context, the terms “Company”, “Group”, “Nornickel” or “the Group companies” shall mean The Report conforms to the GRI Sustainability Nornickel Group. Quantitative indicators for certain Reporting Standards (Comprehensive The Social Policy Department of MMC Norilsk areas of sustainable development pertain to the option), constitutes a UN Global Compact Nickel and a dedicated working group comprising Group’s specific operations in accordance with the communication on progress, and discloses the representative of the Group’s key companies Scope of Data Collection appendix. Company’s contribution to achieving the UN supervised the preparation of the Report. The Sustainable Development Goals up to 2030. 102–46 Report has been approved by MMC Norilsk Nickel’s Management Board and Board of Directors. 102–54 102–32 The content of the Report has been determined in accordance with the requirements of the applicable In producing the Report, the following standards and guidelines, with the Company’s documents were also used: GRI Mining and stakeholders being engaged in the process. For Other sources of information about Metals Sector Supplement, Guidance on Social material topics of the Report, please see the Map of Nornickel Group: Responsibility ISO 26000:2010, Reference Material Topics appendix. Performance Indicators of Russian Union Corporate website: www.nornickel.ru of Industrialists and Entrepreneurs (RSPP), 102–46 Nornickel’s ESG Strategy, ESG Databook Accountability Standards AA1000SES (2015) and www.nornickel.ru/investors/esg/ AA1000AP (2018), the UNCTAD Guidance on core During preparation of the Report, there were no indicators for entity reporting on contribution Nornickel’s annual reports: significant changes in the report boundaries and the towards implementation of the UN Sustainable www.nornickel.ru/investors/reports-and-results/ list of material topics compared to the 2018 Report. Development Goals, and recommendations of However, the Report contains updates of the data for Interactive version of the 2019 Sustainability Report: the Task Force on Climate-Related Financial previous years, which is indicated in the text. https://csr2019.nornickel.ru Disclosures (TCFD) set up by the Financial Stability Board (FSB). 102–48 102–49 102–48 DISCLAIMER APPROVED The Report discloses the Company’s short–, by the Board of Directors of MMC Norilsk Nickel, medium–, and long–term goals, objectives, and Minutes No. GMK/10-pr-sd dated 7 April 2020 plans. Plans and intentions are provisional and subject to a number of economic, political, and APPROVED legal factors that are beyond the Company’s by the Audit and Sustainable Development Committee control. As a result, actual future performance of MMC Norilsk Nickel’s Board of Directors, may differ from the forward-looking statements Minutes No. 3 dated 26 March 2020 contained in this Report. APPROVED by the Management Board of MMC Norilsk Nickel, Minutes No. 7 dated 25 March 2020 102–32 NORNICKEL SUPPORTS UN Global Compact and Sustainable Development Goals With a number of landmark events occurring in 2019, Nornickel reiterated its immediate commitment to smart digital technologies in production. Nornickel was among the first companies in Russia to initiate digital transformation of its business processes. It is actively using digital technologies to tackle challenging production tasks and was first in Russia to employ Industry 4.0 technologies. We have firmly embraced the path of innovative development working closely with the younger generation. Digital technologies are essential in increasing efficiency and helping the Company to achieve the goals of sustainable development_ CONTENTS 2019 SUSTAINABILITY REPORT 5 Statement of the President 122 Compliance with 267 Appendices and Chairman the UN Global Compact of the Management Board 268 GRI content index 124 Commitment to human rights 7 Our 2019 highlights 281 Scope of data collection 131 Labour relations 9 About Nornickel Group 282 Map of material GRI topics 181 Anti-corruption (aspects) 10 Assets 190 Environment 283 GRI indicators 11 Core companies and business units 298 UNCTAD indicators 230 Regional development 12 Production chart 301 TCFD disclosures 235 The Company’s contribution 302 List of abbreviations 13 Key social and environmental to the development of local projects communities 303 Glossary 237 Budget payments 304 Stakeholder dialogue minutes 14 Strategy 238 Employment of local population 305 Stakeholder recommendations 16 Mission and values 239 Cooperation development 307 Opinion of RSPP Council 17 Corporate strategy on Non-Financial Reporting 240 Infrastructure development 22 Sustainability approaches 310 Independent assurance report 245 Development of local 24 Nornickel and UN Sustainable communities Development Goals 311 Contacts 252 Corporate volunteer programme 39 Management 255 Support for sports projects The 2019 Sustainability Report 43 Sustainability management of Nornickel Group conforms 259 Support for cultural projects to the GRI Sustainability Reporting 54 Risk management framework and initiatives Standards and is a report 69 Corporate security 260 Assessment of social on the progress of compliance programmes with the United Nations (UN) Global 71 Economic efficiency 261 Transport accessibility Compact principles that discloses 76 Stakeholder engagement the Company's policy towards achieving the UN Sustainable 96 Supply chain management 264 Awards and accolades Development Goals up to 2030. 111 Innovations 264 Awards of MMC Norilsk Nickel 113 Digital technology 266 Awards of the Group © Nornickel Group, 2020. 121 Transparency companies All rights reserved. 102–14 Dear shareholders, investors, consumers, and colleagues, Statement It is a great pleasure for me to present Nornickel’s of the President 2019 Sustainability Report. and Chairman Last autumn, our management team shared Nornickel’s revised strategic vision until 2030 with the investor community. The document titled of the «Expanding the Horizons of Sustainable Growth» outlines several key Management areas, including a comprehensive environmental programme, growth of the core business, upgrade of the processing facilities, and personnel and Board infrastructure development in the regions where the Company operates. We take a responsible approach to environmental protection. The comprehensive environmental programme is set to reduce sulphur dioxide emissions tenfold by 20251. To this end, Nornickel started to roll out solutions capturing harmful emissions on a par with the best available technologies globally. The updated Sulphur Programme also includes the upgrade of existing nickel and copper smelting facilities. Investments are already underway in the Norilsk Industrial District and on the Kola Peninsula. Assessment of the climate change impact on the Company’s operations is also an important focus area of our sustainable development. It stands to note that our metals are widely used in solutions mitigating the negative climate impact of key emission sources around the world. The comprehensive environmental programme supports sustainable growth of our core business and development of our unique resource base in the Norilsk Industrial District, in the Trans-Baikal Territory, and on the Kola Peninsula. By 2030, the Company plans to ramp up ore mining by more than 2.5 times compared to 2017. To facilitate ore processing and metal production, the Company will modernise and build concentration, smelting, and refining facilities. We invest in infrastructure projects that supply resources to our core business, including projects to develop our energy and gas assets. Today, Nornickel is one of the most profitable companies among major global diversified mining groups. We actively introduce digital technologies of process control and best management practices across the value chain. 2019’s strong performance and our distinct competitive edge have helped to strengthen the Company’s robust position in the market and secure our continued investment in sustainable development. 1 Compared to 2015. Digital Nornickel 2019 5 Having joined the UN Global Compact three years ago, we remain fully committed to its Ten Principles regarding human rights, labour standards, the environment and anti-corruption. As in previous years, in 2019 we made significant progress in developing our human capital, which is our key asset. Similar to other business areas, our focus is on boosting the efficiency of our personnel, while also improving engagement and enhancing our corporate culture. Alongside all these efforts, Nornickel has maintained a high level of employee social support. The Company has increased reimbursements for the cost of round trips to and from the place of vacation, health resort treatments and healthcare, reinforcing its position
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