RUS

Digital Nornikel 2019

Sustainability report

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Appendices

GRI content index

102-55



GRI standard Indicator
number
Indicator Excluded information/comments UN sustainable
development
goal
RSPP Reference
Performance
Indicator
ISO 26000:2010
GRI 101: GRI 101: Foundation (2016)*
GRI 102: General Disclosures (2016) Organisational profile
102—1 Name of the organisation
102—2 Activities, brands, products, and services
102—3 Location of headquarters
102—4 Location of operations
102—5 Ownership and legal form
102—6 Markets served
102—7 Scale of the organisation 2019 Consolidated Financial Statements: www.nornickel.com/ Investors / Reports and Results
102—8 Information on employees and other workers 8 3.1.1. Labour practices
102—9 Supply chain Fair operating practices
102—10 Significant changes to the organisation and its supply chain 2019 Consolidated Financial Statements: www.nornickel.com/ Investors / Reports and Results
102—11 Precautionary principle or approach Environment
102—12 External initiatives 1.1 Organisational governance
102—13 Memberships of associations
Strategy
102—14 Statement from senior decision-maker
102—15 Key impacts, risks, and opportunities
Ethics and integrity
102—16 Values, principles, standards, and norms of behaviour 16
102—17 Mechanisms for advice and concerns about ethics Code of Business Conduct of MMC Norilsk Nickel (page 13): www.nornickel.com/Investors/Internal Documents and Policies
Corporate governance
102—18 Governance structure
102—19 Delegating authority
102—20 Executive-level responsibility for economic, environmental, and social topics
102—21 Consulting stakeholders on economic, environmental, and social topics 16
102—22 Composition of the highest governance body and its committees 2019 Annual Report: www.nornickel.com/ Investors / Reports and Results / 2019 5, 16 3.1.12.
102—23 Chair of the highest governance body 2019 Annual Report: www.nornickel.com/ Investors / Reports and Results / 2019 16
102—24 Nominating and selecting the highest governance body 2019 Annual Report: www.nornickel.com/ Investors / Reports and Results / 2019
Policy for Development and Approval of Voting Recommendations in respect of Candidates to the Board of Directors of MMC Norilsk Nickel (pages 3—5): www.nornickel.com Investors / Internal Documents and Policies
5,16
102—25 Conflicts of interest 2019 Annual Report: www.nornickel.com/ Investors / Reports and Results / 2019 16
102—26 Role of highest governance body in setting purpose, values, and strategy
102—27 Collective knowledge of highest governance body 4
102—28 Evaluating the highest governance body’s performance 2019 Annual Report: www.nornickel.com/ Investors / Reports and Results / 2019
102—29 Identifying and managing economic, environmental, and social impacts 16
102—30 Effectiveness of risk management processes
102—31 Review of economic, environmental, and social topics
102—32 Highest governance body’s role in sustainability reporting
102—33 Communicating critical concerns
102—34 Nature and total number of critical concerns
102—35 Remuneration policies
102—36 Process for determining remuneration
102—37 Stakeholders’ involvement in remuneration 16
102—38 Annual total compensation ratio Not disclosed for personal data protection reasons
102—39 Percentage increase in annual total compensation ratio
Stakeholder engagement
102—40 List of stakeholder groups
102—41 Collective bargaining agreements 8 3.1.4. Labour practices
102—42 Identifying and selecting stakeholders
102—43 Approach to stakeholder engagement
102—44 Key topics and concerns raised
Reporting practice
102—45 Entities included in the consolidated financial statements 2019 Consolidated Financial Statements: www.nornickel.com/ Investors / Reports and Results
102—46 Defining report content and topic boundaries
102—47 List of material topics
102—48 Restatements of information
102—49 Changes in reporting None
102—50 Reporting period
102—51 Date of most recent report May 2019
102—52 Reporting cycle Annual
102—53 Contact point for questions regarding the report
102—54 Claims of reporting in accordance with the GRI Standards
102—55 GRI content index
102—56 External assurance
Economic performance
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 1,5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 201: Economic Performance (2016) 201—1 Direct economic value generated and distributed 7,8, 9 1.2
1.3
1.4
1.6.
1.7.
201—2 Financial implications and other risks and opportunities due to climate change Risks posed by climate change are not measured financially 13 Environment
201—3 Defined benefit plan obligations and other retirement plans 1.8.
201—4 Financial assistance received from government The Group did not receive significant government grants for the 12 months ended 31 December 2019 Fair operating practices
Market presence
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 1,5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 202: Market Presence (2016) 202—1 Ratios of standard entry level wage by gender compared to local minimum wage 1, 5, 8
202—2 Proportion of senior management hired from the local community 8
Indirect economic impacts Engagement in the life of communities and their development
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 1,5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 203: Indirect Economic Impacts (2016) 203—1 Infrastructure investments and services supported 2, 5, 7, 9, 11
203—2 Significant indirect economic impacts 1, 2, 3, 8, 10, 17
Anti-corruption practices Fair operating practices
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 Fair operating practices
103—3 Evaluation of the management approach
GRI 205: Anti-corruption (2016) 205—1 Operations assessed for risks related to corruption 16
205—2 Communication and training about anti-corruption policies and procedures 16
205—3 Confirmed incidents of corruption and actions taken None 16
Energy Environment
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 2.12 Fair operating practices
103—3 Evaluation of the management approach
GRI 302: Energy (2016) 302—1 Energy consumption within the organisation 7, 8, 12, 13 2.2.
302—2 Energy consumption outside of the organisation Reporting not required by law 7, 8, 12, 13
302—3 Energy intensity 7, 8, 12, 13 2.2.1.
302—4 Reduction of energy consumption 2019 Annual Report: www.nornickel.com/ Investors / Reports and Results / 2019 7, 8, 12, 13
302—5 Reductions in energy requirements of products and services Not applicable to the Company’s products 7, 8, 12, 13
Water Environment
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 2.12 Fair operating practices
103—3 Evaluation of the management approach
GRI 303: Water (2016) 303—1 Water withdrawal by source 6 2.3.
303—2 Water sources significantly affected by withdrawal of water 6
303—3 Water recycled and reused 6, 8, 12 2.4.
Biodiversity Environment
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 2.12 Fair operating practices
103—3 Evaluation of the management approach
GRI 304: Biodiversity (2016) 304—1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 6, 14, 15
304—2 Significant impacts of activities, products, and services on biodiversity 6, 14, 15
304—3 Habitats protected or restored 6, 14, 15
304—4 IUCN Red List species and national conservation list species with habitats in areas affected by operations 6, 14, 15
MM1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated 3, 12, 14, 15
MM2 The number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria, and the number (percentage) of those sites with plans in place There are no such sites 6, 14, 15
Emissions Environment
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 2.12 Fair operating practices
103—3 Evaluation of the management approach
GRI 305: Emissions (2016) 305—1 Direct (Scope 1) GHG emissions 3, 12, 13, 14, 15
305—2 Energy indirect (Scope 2) GHG emissions 3, 12, 13, 14, 15
305—3 Other indirect (Scope 3) GHG emissions 3, 12, 13, 14, 15
305—4 GHG emissions intensity 13, 14, 15
305—5 Reduction of GHG emissions The Company did not assess the effect of its initiatives on the reduction of GHG emissions. Such assessment is not required by law 13, 14, 15
305—6 Emissions of ozone-depleting substances (ODS) None 3, 12, 13
305—7 Nitrogen oxides (NOx), sulphur oxides (SOx), and other significant air emissions 3, 12, 13, 14, 15 2.6.
Effluents and waste Environment
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 2.12 Fair operating practices
103—3 Evaluation of the management approach
GRI 306: Effluents and Waste (2016) 306—1 Water discharge by quality and destination 3, 6, 12, 14 2.7. 2.7.2.
306—2 Waste by type and disposal method 3, 6, 12 2.8.
306—3 Significant spills None 3, 6, 12, 14, 15 2.9.
306—4 Transport of hazardous waste There are no such waste or waste transportation 3, 12
306—5 Water bodies affected by water discharges and/or runoff 6, 15
Environmental compliance Environment
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 2.12 Fair operating practices
103—3 Evaluation of the management approach
GRI 307: Environmental Compliance (2016) 307—1 Non-compliance with environmental laws and regulations 16 2.10.
Supplier environmental assessment Environment
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 Fair operating practices
103—3 Evaluation of the management approach
Employment Labour practices
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 401: Employment (2016) 401—1 New employee hires and employee turnover 5, 8 3.1.2. 3.1.3.
401—2 Benefits provided to full-time employees that are not provided to temporary or part-time employees 8
401—3 Parental leave Information is provided about employees on maternity leave and/or childcare leave 5, 8
Occupational health and safety Labour practices
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 Fair operating practices
103—3 Evaluation of the management approach
GRI 403: Occupational Health and Safety (2016) 403—1 Workers representation in formal joint management–worker health and safety committees 8
403—2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities No breakdown of injury rates by gender due to the lack of centralised records 3,8 3.1.5.
3.1.6.
3.1.7.
3.1.8.
403—3 Workers with high incidence or high risk of diseases related to their occupation 3, 8
403—4 Health and safety topics covered in formal agreements with trade unions 8
Training and education Labour practices
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 Fair operating practices
103—3 Evaluation of the management approach
GRI 404: Training and Education (2016) 404—1 Average hours of training per year per employee No breakdown by gender due to the lack of centralised records 4, 5, 8 3.1.10.
404—2 Programmes for upgrading employee skills and transition assistance programmes 8
404—3 Percentage of employees receiving regular performance and career development reviews 5, 8
Freedom of association and collective bargaining Labour practices
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 407: Freedom of Association and Collective Bargaining (2016) 407—1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk None 8 3.2.1.
Rights of indigenous peoples Human rights
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 1,5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 411: Rights of Indigenous Peoples (2016) 411—1 Incidents of violations involving rights of indigenous peoples None 3.2.3.
MM5 Total number of operations taking place in or adjacent to indigenous peoples’ territories, and number and percentage of operations or sites where there are formal agreements with indigenous peoples’ communities The Group does not have any formal arrangements with indigenous northern minorities 1, 2
Local communities Engagement in the life of communities and their development
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 1,5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 413: Local Communities (2016) 413—1 Operations with local community engagement, impact assessments, and development programmes Such programmes are implemented in 4 out of 77 (5.2%) Group entities operating in Russia (the Company’s Head Office, Kola MMC, Polar Division, and Nornickel – Shared Service Centre) within the reporting perimeter 3.3.3.
413—2 Operations with significant actual and potential negative impacts on local communities 1, 2 3.3.3.
MM6 Number and description of significant disputes relating to land use, customary rights of local communities and indigenous peoples None 1, 2
MM7 The extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and indigenous peoples, and the outcomes No disputes
Supplier social assessment
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 5,8,16 Fair operating practices
103—3 Evaluation of the management approach
Public policy
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 415: Public Policy (2016) 415—1 Political contributions None 16
Socioeconomic compliance Fair operating practices
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 5,8,16 Fair operating practices
103—3 Evaluation of the management approach
GRI 419: Socioeconomic Compliance (2016) 419—1 Non-compliance with laws and regulations in the social and economic area 16 3.4.2.
Emergency preparedness
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 16 Fair operating practices
103—3 Evaluation of the management approach
MM3 Total amounts of overburden, rock, tailings, and sludges and their associated risks 3, 6, 12
Closure planning
GRI 103: Management Approach 2016 103—1 Material topics and boundaries See also the Scope of Data Collection appendix in the interactive version of the Report
103—2 The management approach and its components 1,5,8,16 Fair operating practices
103—3 Evaluation of the management approach
MM10 Number and percentage of operations with closure plans The IFRS financial statements reflect a decommissioning provision for 9% of the operations within the reporting perimeter. As at 31 December 2019, this provision stood at RUB 40,990 mln


Scope of data collection* 102-46 103-1

Information is collected on all companies of the business block

Information is collected on key companies of the business block

Topic

Economic performance

Market presence

Indirect economic impacts

Energy

Water

Biodiversity

Emissions

Effluents and waste

Environmental compliance

Employment

Occupational health and safety

Training and education

Freedom of association and collective bargaining

Rights of indigenous peoples

Local communities

Anti-corruption practices

Public policy

Socioeconomic compliance

Closure planning

Emergency preparedness

Special restrictions of topic boundary within the company

As regards pension plans, the boundaries include only business units benefiting from the Co-Funded Pension Plan

As regards nationality, the boundaries include all business units of the Group

As regards benefits offered to employees, the boundaries include only Polar Division and Kola MMC

As regards staff assessment, the boundaries include only the Head Office, Polar Division, Kola MMC and Pechengastroy

Relevant significant impacts in the supply chain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business unit included in the topic boundary to collect information Nickel’s Head Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Polar Division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Polar Transport Division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arkhangelsk Transport Division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Murmansk Transport Division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Krasnoyarsk Transport Division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilskenergo (MMC Norilsk Nickel’s branch)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bystrinsky Transport Division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Krasnoyarsk representative office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kola MMC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsk Airport

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NordStar Airlines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yenisey River Shipping Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Krasnoyarsk River Port

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Krasnoyarsk Shipyard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lesosibirsk Port

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rosso

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsk-TAVS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normetimpex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GRK Bystrinskoye

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bugdainsky Mine

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilskgeologiya

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vostokgeologiya

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intergeoproject

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shirinskoye

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North Chrome Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gipronickel Institute

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSKA Professional Basketball Club

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsk Nickel MFC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interpromleasing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bear Creek

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pechengastroy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arktic-Energo

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTEC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taimyrgaz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taimyrenergo

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilskgazprom

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsktransgaz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NN-Service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kolabyt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zapolyarye Health Resort

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nortrans-Norilsk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NORTRANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SGM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Invest-Yug

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Edinstvo

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsk Combine

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsk Production Support Complex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsknickelremont

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilskpromtransport

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Poligon-Tekhnogen

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nornickel – Shared Services Centre

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taimyr Fuel Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTPO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arena-Aquapark

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SPA IMSC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BEGC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsk Avia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ICIC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Polar Greenhouse Complex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Union of Entities of the CNSI, Murmansk Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Union of Entities of the CNSI, Krasnoyarsk Territory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arctic Palladium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maslovskoye

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Your Home

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Union of Entities of the CNSI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsk Nickel Corporate University

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KCPT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Club of Information Security in Industry

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AP-Invest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nornickel-YRSС

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bystrinskaya Service Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liinakhamari Port

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Putoranа Plateau

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nornickel Corporate Health Centre

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norilsk Nickel Harjavalta Oy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Map of material GRI topics (aspects)

102-46

103-1



Economic*

1. Economic performance

2. Market presence

3. Indirect economic impacts

4. Anti-corruption practices

Environmental*

5. Energy

6. Water

7. Biodiversity

8. Sulphur dioxide and solid emissions

9. Greenhouse gas (GHG) emissions

10. Emissions of ozone-depleting substances (ODS)

11. Emissions of other substances

12. Effluents

13. Waste

14. Supplier environmental assessment

15. Environmental compliance

Social*

16. Employment

17. Occupational health and safety

18. Training and education

19. Freedom of association and collective bargaining

20. Human rights: rights of indigenous peoples

21. Local communities

22. Supplier social assessment

23. Public policy

24. Socioeconomic compliance

25. Emergency preparedness

26. Closure planning

The Company maps out material topics in line with GRI SRS and with input from external and internal stakeholders. The materiality matrix is based on the following:

  • opinion polls on material topics;
  • dialogues with stakeholders;
  • mass media coverage of the Company;
  • interviews with the Company’s management.

In 2019, the list of material topics of the Report was reconfirmed following polling, with no significant changes compared to the 2018 report.

For information on our stakeholder dialogues, see Appendix Stakeholder Dialogue Minutes. The proposals put forward during the dialogues will be considered for integration into the Company’s practices.

GRI indicators

Environmental performance 303-1

Total water withdrawal

Indicator, mcm Total water withdrawal: Including
from surface water bodies from underground sources effluents from third parties natural water inflow from municipal and other water utilities (excluding Norilsk-Taimyr Energy Company) from Norilsk-Taimyr Energy Company*
Group’s total 2019 319.34 227.31 26.29 20.57 36.50 8.67 95.20
2018 356.79 254.28 28.275 21.28 44.15 8.84 96.70
2017 335.64 233.46 31.88 20.67 40.59 9.04 93.58
2016 328.44 230.45 33.24 15.42 40.82 8.51 98.99
2015 348.52 254.92 28.66 21.15 34.84 8.94 96.44
Including: Polar Division and Norilskenergo 2019 69.63 0.00 0.00 13.66 12.85 0.001 43.12
2018 82.82 0.02 0.00 15.68 22.41 0.00 44.71
2017 100.14 0.02 0.00 15.07 29.44 0.00 55.61
2016 96.41 0.02 0.00 9.78 26.15 0.001 60.46
2015 102.49 0.02 0.00 15.48 28.60 0.00 58.39
Norilsk-Taimyr Energy Company 2019 240.23 212.78 26.14 1.32 0 0 0
2018 269.47 241.23 28.24 0.00 0.00 0.00 0.00
2017 251.98 220.42 31.57 0.00 0.00 0.00 0.00
2016 249.93 216.68 33.24 0.00 0.00 0.00 0.00
2015 267.87 239.21 28.66 0.00 0.00 0.00 0.00
Kola MMC 2019 27.95 13.25 0.00 0.00 6.07 8.63 0.00
2018 32.82 11.75 0.00 0.03 12.39 8.65 0.00
2017 31.73 11.60 0.30 0.04 11.11 8.68 0.00
2016 35.53 12.39 0 0.11 14.63 8.40 0.00
2015
 
27.93 12.84 0 0.12 6.19 8.79 0.00


Water sources

306-5 303-2

Branches and subsidiaries Scale of impact associated with the Group companies’ water withdrawals
Polar Division of MMC Norilsk Nickel Water withdrawals from the Yenisey River, water bodies of the Norilo-Pyasinskaya water system and the Kara Sea do not affect the environment and cannot change the ability of the ecosystem to perform its functions
Polar Transport Division of MMC Norilsk Nickel
Krasnoyarsk Transport Division of MMC Norilsk Nickel
Norilsknickelremont
Polar Construction Company
Norilsk Production Support Complex
Norilskgeologiya
Taimyr Fuel Company
Taimyrgaz*
Yenisey River Shipping Company
Norilsk Airport
Norilsk-Taimyr Energy Company
Norilskpromtransport
Norilsk Trading and Production Association
Murmansk Transport Division of MMC Norilsk Nickel Withdrawals do not affect the water sources (water bodies of the Barents Sea basin)
Kola MMC
 


Water recycled and reused

303-3

Indicator, mcm Total water used Including Water recycled and reused as percentage of total water used, %
utility water production Including
water reused water recycled
Group’s total 2019 1,343.53 18.76 1,324.77 30.70 1,141.32 87.2
2018 1,412.13 20.08 1,392.04 31.46 1,178.47 85.7
2017 1,342.07 18.53 1,323.54 32.64 1,105.40 84.8
2016 1,463.81 20.72 1,443.09 36.73 1,219.70 85.8
2015 1,421.41 21.29 1,400.12 40.13 1,275.62 92.6
Including: Polar Division and Norilskenergo 2019 461.22 10.51 450.71 29.40 388.69 90.7
2018 463.50 12.13 451.37 29.25 389.50 90.4
2017 512.32 11.81 500.51 30.49 426.18 89.1
2016 533.67 12.09 521.58 34.43 442.82 89.4
2015 574.17 12.51 561.66 37.7 478.07 89.8
Norilsk-Taimyr Energy Company 2019 656.49 0.91 655.57 0.89 551.06 84.1
2018 709.11 1.00 708.12 1.11 578.17 81.7
2017 620.74 1.00 619.74 1.05 503.43 81.3
2016 719.02 1.79 717.24 1.03 607.85 84.7
2015 634.9 2.34 632.56 0.89 537.68 84.8
Kola MMC 2019 156.49 1.67 154.82 0.14 149.98 95.9
2018 171.58 1.75 169.82 0.00 158.59 92.4
2017 169.64 1.79 167.85 0.00 157.47 92.8
2016 170.52 1.9 168.62 0.17 150.72 88.5
2015
 
171.32 1.79 169.53 0.00 146.67 85.6


The Group’s total reused and recycled water is 367.0% of its water withdrawal. This percentage is largest for Polar Division (600.5%) and Kola MMC (537.1%), while at Norilsk-Taimyr Energy Company it stands at 229.8%.

Total effluents* and pollutants discharged

306-1

Indicator, mcm or kt Total effluents, mcm Including
insufficiently treated contaminated untreated treated to standard quality at treatment facilities standard clean (without treatment) Pollutants in effluents, kt
Group’s total 2019 142.35 26.22 35.98 4.56 75.60 210.62
2018 164.45 30.96 34.26 6.59 92.60 232.37
2017 147.55 28.63 33.52 6.13 79.26 216.63
2016 143.55 29.81 26.94 5.26 81.54 192.99
2015 140.45 29.71 27.73 5.92 77.1 153.1
Including: Polar Division and Norilskenergo 2019 23.70 1.44 20.95 0.83 0.47 58.30
2018 34.98 3.69 28.69 1.86 0.72 72.66
2017 45.29 6.28 33.40 4.96 0.66 73
2016 38.67 6.42 26.83 4.71 0.73 71.83
2015 39.52 6.01 27.54 5.18 0.78 76.92
Norilsk-Taimyr Energy Company 2019 74.56 0.00 2.10 0.004 72.46 1.13
2018 91.56 0.00 0.00 0.00 91.55 1.36
2017 78.16 0.00 0.00 0.01 78.15 0.392
2016 77.76 0.00 0.00 0.003 77.76 1
2015 73.55 0.00 0.00 0.00 73.55 0.48
Kola MMC 2019 22.07 21.81 0.26 0.00 0.00 124.43
2018 25.59 25.47 0.13 0.00 0.00 148
2017 22.27 22.25 0.02 0.00 0.00 142.93
2016 22.59 22.59 0.00 0.00 0.00 119.32
2015
 
23.48 23.48 0.00 0.00 0.00 75.62


NOх, SОх and other significant air emissions, including their type and weight*

305–7

Indicator, kt Group’s total Polar Division Norilsk-Taimyr Energy Company Kola MMC
Total amount 2019 1,952.66 1,819.18 10.65 110.79
2018 1,926.63 1,789.01 11.69 117.45
2017 1,845.55 1,705.00 11.51 121.88
2016 1,936.44 1,787.57 8.2 132.9
2015 2,063.52 1,883.24 6.33 169.79
Including: NOx 2019 10.31 0.55 7.19 1.75
2018 11.22 0.61 8.02 1.76
2017 11.40 1.56 7.88 1.23
2016 10.12 1.52 6.89 1.12
2015 9.84 1.64 6.32 1.18
SO2 2019 1,898.14 1,798.64 0.001 99.36
2018 1,869.62 1,764.65 0.002 104.82
2017 1,784.97 1,675.85 0.003 109.07
2016 1,877.97 1,758.18 0.003 119.72
2015 2,009.11 1,853.92 0.008 155.05
Solids 2019 13.31 4.21 0.002 6.98
2018 14.51 5.55 0.003 7.57
2017 13.42 6.06 0.004 6.87
2016 14.3 6.18 0.006 7.38
2015 20.67 8.95 0.006 10.61


Total weight of waste by type and disposal method, mt

306-2

Indicator Total. mt Including
Polar Division Kola MMC
Waste-related activity Generation 2019 36.42 15.62 7.85
2018 30.72 15.71 8.31
2017 31.93 23.26 8.61
2016 33.27 22.57 10.61
2015 33.64 22.27 11.37
Waste input from third parties* 2019 0.63 0.57 0.00
2018 3.07 3.04 0.00
2017 0.03 0.03 0.00
2016 0.04 0.03 0.00
In-house waste recycling 2019 22.77 14.34 4.25
2018 21.63 15.79 2.46
2017 20.76 17.75 3.01
2016 20.15 15.18 4.97
2015 18.81 13.22 5.59
In-house waste treatment* 2019 0.003 0.000 0.001
2018 0.006 0.000 0.006
2017 0.001 0.000 0.000
2016 0.000 0.000 0.000
Waste transfer to third parties (for recycling or treatment) 2019 0.50 0.24 0.014
2018 1.52 0.03 0.01
2017 0.07 0.04 0.02
2016 0.09 0.03 0.01
2015 0.041 0.024 0.017
Waste transfer to third parties (for disposal) 2019 0.64 0.07 0.00
2018 1.64 0.08 0.00
2017 0.11 0.07 0
2016 0.11 0.07 0.0002
2015 0.049 0.049 0.0003
Waste disposal at in-house waste disposal sites 2019 6.03 3.22 2.81
2018 10.97 3.72 5.83
2017 12.67 7.08 5.59
2016 13.54 7.88 5.66
2015
 
14.75 8.99 5.76


Waste management in 2019 by hazard class and waste type, kt

MM3

Indicator, t Hazard class 1 Hazard class 2 Hazard class 3 Hazard class 4 Incl. mining waste and tailings Hazard class 5 Incl. mining waste and tailings Total Incl. hazard classes 1—4 waste (% of total)
Generation 0.04 0.03 5.19 1,114.60 986.21 35,300.09 30,990.62 36,419.95 3.07%
Waste input from third parties 0.00 0.01 1.35 18.71 0.00 612.45 521.17 632.53 3.17%
In-house waste recycling 0.00 0.00 2.40 7.23 0.00 22,759.35 17,716.85 22,768.99 0.04%
In-house waste treatment 0.00 0.02 1.99 1.21 0.00 0.05 0.00 3.27 98.33%
Waste transfer to third parties (for recycling or treatment) 0.04 0.02 2.13 0.37 0.00 499.64 233.77 502.21 0.51%
Waste transfer to third parties (for disposal) 0.00 0.02 0.00 69.08 0.00 571.21 521.17 640.29 10.79%
Waste disposal at in-house waste disposal sites
 
0.00 0.00 0.12 1.05 986.21 4,971.14 4,310.67 6,025.19 17.49%


Total energy consumption by Norilsk Nickel Group, TJ

302-1

No. Indicator 2017 2018 2019 Including in 2019
electric power heat (hot water and steam)
1 Fuel used to generate heat and electric power* and for other purposes*, TJ 156,568 148,910 144,772 х х
(1) including Polar Division 26,021 24,429 21,720 х х
Norilsk-Taimyr Energy Company 107,514 103,203 98,554 х х
Kola MMC 9,794 8,932 8,604 х х
Other operations of the Group 13,239 12,346 15,894
(2) including coal 1,460 1,660 2,087 х х
natural gas 134,709 129,335 125,329 х х
diesel fuel and fuel oil 15,221 13,788 13,535 х х
gasoline and aviation fuel 5,178 4,127 3,820 х х
2 Energy from renewable sources (Group’s HPPs) 12,414 14,877 15,058 14,838 221
3 Electric power and heat procured from third parties 10,483 10,931 11,331 11,039 291
4 Electric power and heat sold to third parties 19,503 18,926 18,766 3,491 15,274
5 Total energy consumption by the Group (line 1 + line 2 + line 3 – line 4)
 
159,962 155,792 152,395 х х


Electric power and heat consumption by the Group companies, TJ

Indicator 2017 2018 2019 Including in 2019
electric power heat (hot water and steam)
Electric power and heat consumption by the Group companies 61,963 63,691 62,994 33,338 29,655
including Polar Division 35,936 34,040 32,012 14,447 17,565
Norilsk-Taimyr Energy Company 6,489 6,446 6,214 4,163 2,051
Kola MMC 12,528 12,112 12,126 9,159 2,967
HPP share in total electric power consumption in the Norilsk Industrial District 43.6% 51.4% 53.5%
HPP share in total electric power consumption by the Company 37.6% 43.6% 44.5%
HPP share in total energy consumption by the Company
 
19.6% 22.7% 23.9%


Social performance

Benefits for employees of Polar Division

401-2

Benefits Full-time work Temporary work* Seasonal work Part-time work
full-time work part-time work full-time work part-time work full-time work part-time work
Reimbursement of vacation travel expenses (incl. return fare) + + +* +* +* +* *
All kinds of financial aid + + + + + + +
Health resort treatment and vacations + +
Vouchers for children’s wellness recreation tours + +
Pension plans + +
Termination benefits (apart from those prescribed by the applicable law) + + +* +* +* +* +*


Benefits for employees of Kola MMC

Benefits Full-time work Temporary work* Seasonal work* Part-time work
full-time work part-time work full-time work part-time work full-time work part-time work
Reimbursement of vacation travel expenses (incl. return fare) + + + +
All kinds of financial aid + + + + *
Health resort treatment and vacations + + + + *
Vouchers for children’s wellness recreation tours + + + + *
Pension plans + + + + *
Termination benefits (apart from those prescribed by the applicable law)
 
+ + + +


Headcount by type of employment, gender and region, employees

Indicator 2019
Total male female
Total headcount as at the latest reporting date 74,445 52,804 21,641
Contractors working under civil contracts as at the latest reporting date 830 578 252
Employees as at the latest reporting date 73,615 52,226 21,389
Employees working under fixed-term contracts (temporary and seasonal jobs) as at the latest reporting date 2,935 1,600 1,335
including in the Norilsk Industrial District 1,716
including in the Krasnoyarsk Territory (except for NID) 45
including in the Kola Peninsula Industrial District (Murmansk Region) 236
including in Moscow and other regions of Russia 646
including in the Trans-Baikal Territory 292
Employees working under unlimited contracts (permanent jobs) as at the latest reporting date 70,680 50,626 20,054
including in the Norilsk Industrial District 47,262
including in the Krasnoyarsk Territory (except for NID) 3,270
including in the Kola Peninsula Industrial District (Murmansk Region) 12,276
including in Moscow and other regions of Russia 5,069
including in the Trans-Baikal Territory 2,803
Full-time employees as at the latest reporting date 72,688 51,552 21,136
Part-time employees as at the latest reporting date
 
107 40 67


New and terminated employments (by gender, age and region of operations) in 2019, employees

401-1

Indicator 2019
New hires 13,805
including male 9,862
including female 3,943
including 29 y. o. and below 5,123
including 30 through 44 y. o. 5,978
including 45 y. o. and above 2,704
including in the Norilsk Industrial District 8,608
including in the Kola Peninsula Industrial District (Murmansk Region) 1,106
including in the Krasnoyarsk Territory (except for NID) 1,021
including in Moscow and other regions of Russia 1,870
including in the Trans-Baikal Territory 1,200
Terminated employments 13,832
including male 9,926
including female 3,906
including 29 y. o. and below 3,449
including 30 through 44 y. o. 5,577
including 45 y. o. and above 4,806
including in the Norilsk Industrial District 8,864
including in the Kola Peninsula Industrial District (Murmansk Region) 1,251
including in the Krasnoyarsk Territory (except for NID) 1,046
including in Moscow and other regions of Russia 1,283
including in the Trans-Baikal Territory
 
1,388


Employee outflow ratio by region in 2019, %

Indicator 2019
Kola Peninsula Industrial District (Murmansk Region) 10.0
Krasnoyarsk Territory (excluding NID) 31.6
Moscow and other regions of Russia 22.4
Norilsk Industrial District (NID) 18.1
Trans-Baikal Territory
 
44.8


Employee inflow ratio by region in 2019, %

Indicator 2019
Kola Peninsula Industrial District (Murmansk Region) 8.8
Krasnoyarsk Territory (excluding NID) 30.8
Moscow and other regions of Russia 32.7
Norilsk Industrial District (NID) 17.6
Trans-Baikal Territory
 
38.8


Employee outflow ratio by gender and age in 2019, %

Indicator 2019
Employee outflow, total 18.8
Employee outflow, male 19.0
Employee outflow, female 18.3
Employee outflow, 29 y. o. and below 23.7
Employee outflow, 30 through 44 y. o. 15.0
Employee outflow, 45 y. o. and above
 
19.0


Employee inflow ratio by gender and age in 2019, %

Indicator 2019
Employee inflow, total 18.8
Employee inflow, male 18.9
Employee inflow, female 18.4
Employee inflow, 29 y. o. and below 35.2
Employee inflow, 30 through 44 y. o. 16.1
Employee inflow, 45 y. o. and above 10.7


Employees on maternity and/or childcare leave in 2019

401-3

Indicator 2019
Employees on maternity and/or childcare leave as at the year-end 1,664
including male 51
including female 1,613
Employees back from maternity and/or childcare leave over the year 892
including male 41
including female
 
851


Occupational disease and injury rates in 2018–2019*

Indicator 2018 Including 2019 Including
Male Female Male Female
Russian companies of Nornickel Group
  Fatal workplace injuries 6 6 0 9 9 0
FIFR 0.05 0.08
Lost time workplace injuries 26 21 5 35 32 3
LTIFR 0.23 0.32
Total recorded workplace injuries in accordance with the Russian labour laws (minor + severe + fatal) 32 27 5 44 41 3
Severe injuries 5 5 0 12 12 0
Occupational diseases 318 296 22 290 255 35
Occupational disease rate 2.87 2.62
Occupational injury rate 0.29 0.40
Lost day rate 53.99 31.66
Absentee rate 2.93 2.83
Total recorded workplace injuries among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws 19 19 0 9 7 2
including fatalities 2 2 0 1 1 0
Norilsk Industrial District
Fatal workplace injuries 2 2 0 6 6 0
FIFR 0.03 0.08
Lost time workplace injuries 15 12 3 21 20 1
LTIFR 0.20 0.29
Total recorded workplace injuries in accordance with the Russian labour laws (minor + severe + fatal) 17 14 3 27 26 1
Severe injuries 4 4 0 9 9 0
Occupational diseases 255 253 2 168 167 1
Occupational disease rate 3.47 2.31
Occupational injury rate 0.23 0.37
Lost day rate 66.86 37.73
Absentee rate 2.96 2.87
Total recorded workplace injuries among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws 11 11 0 7 7 0
including fatalities 1 1 0 1 1 0
Kola site (Murmansk Region)
Fatal workplace injuries 4 4 0 3 3 0
FIFR 0.22 0.17
Lost time workplace injuries 5 5 0 3 2 1
LTIFR 0,27 0,17
Total recorded workplace injuries in accordance with the Russian labour laws (minor + severe + fatal) 9 9 0 6 5 1
Severe injuries 1 1 0 1 1 0
Occupational diseases 62 42 20 120 86 34
Occupational disease rate 3.40 6.76
Occupational injury rate 0.49 0.34
Lost day rate 14.83 13.93
Absentee rate 3.33 3.17
Total recorded workplace injuries among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws 6 6 0 1 1 0
including fatalities 0 0 0 0 0 0
Krasnoyarsk Territory (excluding NID)
Fatal workplace injuries 0 0 0 0 0 0
FIFR 0.00 0.00
Lost time workplace injuries 3 2 1 4 3 1
LTIFR 0.49 0.68
Total recorded workplace injuries in accordance with the Russian labour laws (minor + severe + fatal) 3 2 1 4 3 1
Severe injuries 0 0 0 1 1 0
Occupational diseases 1 1 0 2 2 0
Occupational disease rate 0.16 0.34
Occupational injury rate 0.49 0.68
Lost day rate 63.13 40.10
Absentee rate 3.6 3.60
Total recorded workplace injuries among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws 0 0 0 0 0 0
including fatalities 0 0 0 0 0 0
Moscow and other regions
Fatal workplace injuries 0 0 0 0 0 0
FIFR 0.00 0.00
Lost time workplace injuries 1 1 0 0 0 0
LTIFR 0.15 0.00
Total recorded workplace injuries in accordance with the Russian labour laws (minor + severe + fatal) 1 1 0 0 0 0
Severe injuries 0 0 0 0 0 0
Occupational diseases 0 0 0 0 0 0
Occupational disease rate 0.00 0.00
Occupational injury rate 0.15 0.00
Lost day rate 11.24 0.92
Absentee rate 1.81 1.8
Total recorded workplace injuries among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws 0 0 0 0 0 0
including fatalities 0 0 0 0 0 0
Trans-Baikal Territory
Fatal workplace injuries 0 0 0 0 0 0
FIFR 0.00 0.00
Lost time workplace injuries 2 1 1 7 7 0
LTIFR 0.33 1.15
Total recorded workplace injuries in accordance with the Russian labour laws (minor + severe + fatal) 2 1 1 7 7 0
Severe injuries 0 0 0 1 1 0
Occupational diseases 0 0 0 0 0 0
Occupational disease rate 0.00 0.00
Occupational injury rate 0.33 1.15
Lost day rate 52.47 49.50
Absentee rate 1.22 1.37
Total recorded workplace injuries among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws 2 2 0 1 0 1
including fatalities
 
1 1 0 0 0 0

UNCTAD indicators

Tax and non-tax payments, total Disclosure status Information/comments
A Economic indicators
A.1 Revenue and/or (net) added value A.1.1: revenue Disclosed RUB 877.8 bn
A.1.2: added value Disclosed RUB 645.5 bn
A.1.3: net added value Disclosed RUB 593.5 bn
A.2 Payments to the Government A.2.1: taxes and other payments to the Government Disclosed VAT is not included in taxes since this tax is indirect and actually paid by end consumers of products and services rather than by the reporting entity. VAT is also excluded from the calculation of profit (loss) and is not disclosed in the Income Statement
Item 2019, RUB bn
Tax and non-tax payments, total 192,4
в т.ч. including to the federal budget 31,8
consolidated budget of the Krasnoyarsk Territory 104,2
budget of Norilsk 8
budget of the Murmansk Region 19,9
budget of the Chita Region 3,2
A.3 New investment/expenditures A.3.1: green investment Disclosed RUB 39,472.21 mln
The expenditures in question make up 4.5% of the Company’s consolidated revenue for 2019
A.3.2: community investment Disclosed The expenditures in question make up 3.5% of the Company’s consolidated revenue for 2019
A.3.3: total expenditures on research and development Disclosed RUB 128.2 mln
The expenditures in question make up 0.01% of the Company’s consolidated revenue for 2019
A.4 Local supplier/purchasing programmes A.4.1: percentage of local procurement Partially disclosed Data is collected for materials and supplies only. As for other procurement categories, there is no centralised data collection broken down by the location of suppliers. Materials and supplies procured from Russian suppliers make up 86% of total procurements in this category
B Environmental indicators
B.1 Sustainable use of water B.1.1: water recycling and reuse Disclosed
B.1.2: water use efficiency Disclosed The ratio between water withdrawal and net added value is 0.54 thousand cu m / RUB mln
B.1.3: water stress Disclosed No water is withdrawn in water-scarce areas
B.2 Waste management B.2.1: reduction of waste generation Disclosed In 2019, waste generation increased to 36.42 mt from 30.72 mt in 2018. The ratio between waste generation and net added value slightly declined from 0.066 kt to 0.061 kt / RUB mln
B.2.2: waste reused, re-manufactured and recycled Disclosed In 2019, the amount of waste recycled increased to 22.77 mt from 21.63 mt in 2018. The ratio between waste recycling and net added value went down from 0.045 kt to 0.038 kt / RUB mln
B.2.3: hazardous waste Disclosed In 2019, hazard classes I–IV waste generation decreased to 1,119,861.94 t from 1,207,034.99 t in 2018. The ratio between such waste generation and net added value went down from 2.61 t to 1.89 t / RUB mln
B.3 Greenhouse gas emissions B.3.1: greenhouse gas emissions (scope 1) Disclosed While the absolute value of the indicator changed only slightly, the relative amount of scope 1 greenhouse gas emissions decreased from 21.68 t to 16.48 t of CO2 equivalent per RUB mln of net added value
B.3.2: greenhouse gas emissions (scope 2) Disclosed In 2019, indirect GHG emissions (scope 2) declined from 0.12 mt to 0.09 mt of CO2 equivalent. The relative indicator went down from 0.5 t to 0.15 t of CO2 equivalent per RUB mln of net added value
B.4 Ozone-depleting substances and chemicals B.4.1 : ozone-depleting substances and chemicals Disclosed No emissions
B.5 Energy consumption B.5.1: renewable energy Partially disclosed

The Report discloses the amount of electric power generated by HPPs and its share in total energy consumption. The current metering system does not allow for the disclosure to be made in full compliance with the UNCTAD guidelines. Along with in-house generation, Nornickel Group purchases electric power from third parties connected to Russia’s unified energy system (the share of electric power purchased on the wholesale electricity and capacity market is 32.6%).

The Company accounts for 67.4% of total electric power consumption in the Norilsk Industrial District.

For more details, please see the Energy Saving and Energy Efficiency section.

Share of renewable energy in the Norilsk Industrial District’s total energy consumption:

  • Total consumption — 6,854,895 thousand kWh
  • HPP-generated — 3,667,368.6 thousand kWh (53.5%)

Electric power sold to retail consumers and third parties in the Norilsk Industrial District:

  • Total — 819,496 thousand kWh
  • HPP-generated — 438,087 thousand kWh
B.5.2: energy efficiency Disclosed In 2019, the ratio between total energy consumption by the Group and net added value was 0.26 TJ / RUB mln
С Social area
C.1 Gender equality C.1.1: proportion of women in managerial positions Partially disclosed HR records are not broken down by category or gender.
The proportion of women on the Management Board is 33% (4 out of 12 members)
C.2 Human capital C.2.1: average hours of training per year per employee Disclosed
C.2.2: expenditure on employee training per year per employee Disclosed Expenditure on employee training per year per employee:
For all employee categories — RUB 15,139
Blue-collar employees — RUB 6,312
Managers — RUB 44,701
White-collar employees — RUB 24,553
C.2.3: employee wages and benefits with breakdown by employment type and gender Partially disclosed Data is disclosed on wages and remuneration package (excluding insurance contributions); the data disclosed is broken down by region. There is no statistics on wages and benefits broken down by labour contract type, employment type, age or gender
C.3 Employee health and safety C.3.1: expenditures on employee health and safety Disclosed Expenditures on employee health and safety make up 1.2% of the Group’s consolidated revenue
C.3.2: frequency/incident rates of occupational injuries Partially disclosed The Report discloses information about the occupational injury rate and lost day rate in accordance with the GRI requirements. The lost day rate is calculated on the basis of days, not hours, lost (as required by the GRI)
C.4 Coverage of collective agreements C.4.1: percentage of employees covered by collective agreements Disclosed
D Institutional area
D.1 Corporate governance disclosures D.1.1: number of Board meetings and attendance rate Disclosed Number of the Board of Directors meetings — 34
Attendance rate — 99.97%
D.1.2: number and percentage of female Board members Disclosed The proportion of women on the Board of Directors is 7.69% (1 out of 13 members)
D.1.3: Board members by age range Disclosed Disclosed in the 2019 Annual Report*
D.1.4: number of meetings of the audit committee and attendance rate Disclosed Number of meetings of the Audit and Sustainable Development Committee — 8
Attendance rate — 100%
D.1.5: compensation: total compensation per Board member (both executive and non-executive directors) Partially disclosed The 2019 Annual Report* discloses the total amount of compensations paid to the members of the Board of Directors. Personal compensations are not disclosed for confidentiality reasons
D.2 Anti-corruption practices D.2.1: amount of fines paid or payable due to settlements Disclosed
D.2.2: average hours of training on anti-corruption issues per year per employee Partially disclosed No records are kept on the length (in hours) of anti-corruption training. Reporting in the Company is based on the GRI standards; it means the Report discloses the number and proportion of employees trained in anti-corruption policies and practices
 


TCFD disclosures

Section Disclosure Page

Governance

Describe the organisation’s governance around climate-related risks and opportunities
a) Describe the Board’s oversight of climate-related risks and opportunities link, link
b) Describe the management’s role in assessing and managing climate-related risks and opportunities link, link

Strategy

Disclose the actual and potential impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning
a) Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term link, link
b) Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning link, link, link
c) Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario link, link, link

Risk management

Describe how the organisation identifies, assesses, and manages climate-related risks
a) Describe the organisation’s processes for identifying and assessing climate-related risks link, link, link, link
b) Describe the organisation’s processes for managing climate-related risks link, link
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management link

Metrics and targets

Disclose the metrics and targets used to assess and manage relevant climate-related risks
a) Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process link, link
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks link
с) Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets
 
link, link


List of abbreviations

ADRs American depositary receipts
AML/CTF Anti-money laundering / counter-terrorism financing
BoD Board of Directors
BVC Bureau Veritas Certification
CIMS Corporate Integrated Quality and Environmental Management System
CIS Commonwealth of Independent States
CSR Corporate social responsibility
EAP Environmental Action Plan
EBITDA Earnings before interest, taxes, depreciation and amortisation
EMERCOM Ministry of the Russian Federation for Civil Defence, Emergencies and Elimination of Consequences of Natural Disasters
ERP Enterprise resource planning
ESG Environmental, Social and Governance
EU European Union
FAEA Federal Agency for Ethnic Affairs
FIFR Fatal injury frequency rate
FISU International University Sports Federation
FZ Federal law
GDP Gross domestic product
GOK Mining and processing plant
GOST State standard
GRI Global Reporting Initiative
GRK Mining company
Group Norilsk Nickel Group
HCM Human capital management
HPP Hydropower plant
HPP Heat and power plant
IFRS International Financial Reporting Standards
IPA International Platinum Group Metals Association
ISO International Organisation for Standardisation
IT Information technologies
IUCN International Union for Conservation of Nature
JSC Joint-stock company
JV Joint venture
Kola MMC Kola Mining and Metallurgical Company
KPI Key performance indicators
LLC Limited liability company
LTIFR Lost time injury frequency rate
MDM Master data management
MMC Mining and metallurgical company
MPE Maximum permissible emissions
NAIIS National Association of International Information Security
NID Norilsk Industrial District
OECD Organisation for Economic Cooperation and Development
OHS Occupational health and safety
OHSAS Occupational Health and Safety Assessment System
OJSC Open joint-stock company
PGM Platinum group metals
PJSC Public joint-stock company
PPE Personal protective equipment
PPP Public-private partnership
R&D Research and development
RSPP Russian Union of Industrialists and Entrepreneurs
SDGs UN Sustainable Development Goals
SGS Societe Generale de Surveillance
TJ Terajoule
UN United Nations
UNCTAD United Nations Conference on Trade and Development
UNESCO United Nations Educational, Scientific and Cultural Organization
UNGC UN Global Compact
UNICRI United Nations Interregional Crime and Justice Research Institute
USA United States of America
VAT Value added tax
VHI Voluntary health insurance


Glossary

Business unit of the Company’s Head Office: department, division or any other unit within the organisational structure of the Company’s Head Office and/or a unit acting in accordance with the staff schedule approved by the President of MMC Norilsk Nickel.

Certification: confirming compliance of qualitative characteristics with quality standard requirements.

Charitable activities: the Company’s voluntary transfer of property, including cash, free works and services, and other support, to legal entities or individuals free of charge or on preferential terms.

Collective Bargaining Agreement: legal instrument governing social and labour relationships within a company or a sole trader business and signed by the representatives of employees and the employer.

Compliance: conducting business in compliance with the requirements of government authorities, applicable laws, regulations, guidelines and standards, including corporate policies and procedures, and ethical business practices.

Corporate culture: combination of standards, values and beliefs that determine the way a company addresses the matters of internal integration and external adaptation, guide and motivate daily behaviour of employees, while also transforming under its influence.

Corporate social responsibility (CSR): corporate behaviour philosophy and concept applied by the business community, companies and company representatives to their activities aimed at meeting stakeholder expectations and ensuring sustainable development.

Employee performance management framework: combination of methods, processes and procedures designed to boost employee performance in line with Norilsk Nickel Group’s corporate strategy. The framework also covers employee performance assessment and competency review.

Environmental protection and resource efficiency: corporate programmes aimed at minimising the Company’s environmental impact.

Global Reporting Initiative (GRI): independent organisation developing sustainability reporting guidelines and standards.

Health and safety: occupational health and safety protection system embracing legal, social, economic, organisational, technical, sanitary, hygienic, healthcare, rehabilitation and other activities.

HR management policy: end-to-end integrated HR management system including all stages of employee-employer interaction, from recruitment to retirement and post-retirement support.

HR management strategy: principles, regulations and approaches to personnel management focused on efficient implementation of the Company’s business strategy and providing conditions to unlock human potential in order to achieve corporate goals.

HR policy: set of standards, rules, regulations, concepts and goals determining the Company’s HR management practices (personnel planning and record keeping, recruitment, adaptation, training and development, remuneration and incentivisation, performance assessment, social security, etc.) in line with its development strategy.

Human Capital Development Programme: set of priority measures focused on bringing human capital to a new level in line with the Company’s strategic goals and objectives.

Incentivisation: tools and methods of boosting staff performance and productivity, motivating an employee or a group of employees to achieve corporate goals.

Local communities: population with Russian citizenship.

Local community development programmes: corporate social programmes implemented voluntarily and intended to contribute to the development of local communities.

Mission: statement of the Company’s goals and objectives that distinguish it from its peers.

Nornickel (Norilsk Nickel) Group: for the purpose of the 2019 Sustainability Report, MMC Norilsk Nickel and the totality of operations forming Nornickel Group. Unless otherwise specified or required by the context, the terms “Company”, “Group”, “Nornickel” or “the Group companies” shall refer to Norilsk Nickel Group.

Occupational disease: health disorder caused by a systematic and lasting exposure to workplace factors or a combination of production-specific working conditions.

Payroll budget: total payroll and social payments.

Personnel development: set of initiatives aimed at employee recruitment, adaptation, retention, and fully unlocking their professional and creative potential.

Risk: negative factor that might result from current processes or future events and have a potential impact on the Company’s ability to achieve its goals.

Safe working conditions: working conditions where occupational exposure to harmful and/or hazardous production factors is prevented or controlled within the set limits.

Senior executives: President, Vice Presidents, heads of departments in case of the Head Office, and general directors and their deputies in case of entities located in the Norilsk Industrial District and on the Kola Peninsula.

Significant regions of operation: the Norilsk Industrial District, Krasnoyarsk Territory (except for the NID), Kola Peninsula Industrial District (Murmansk Region), Trans-Baikal Territory, Moscow and other Russian regions.

Social package: set of benefits, compensations, additional payments, statutory and additional services provided to employees by the employer on top of their salary.

Social partnership: framework of relationships among employees (their representatives), employers (their representatives), and federal and local government authorities aimed at reconciling interests of employees and employers on matters pertaining to the regulation of labour relations and other directly associated matters.

Social programmes: voluntary corporate initiatives pertaining to employee development and motivation, creating favourable working conditions, promoting corporate culture and charity, and supporting local communities. These initiatives are implemented on a regular basis in line with the Company’s business strategy, and focused on satisfying balanced requests of various stakeholders. From the management perspective, a social programme is a set of initiatives carefully planned in terms of resources, workforce and timeframes, and efficiently addressing the Company’s internal or external social objectives.

Stakeholder engagement: the Company’s activities aimed at identifying stakeholders’ expectations and concerns and their engagement in the decision-making process.

Stakeholders: individuals and legal entities or their groups having certain expectations about the Company or affected by its operations, influencing its managerial decisions while being themselves influenced by such decisions. Stakeholders include the Company’s shareholders, investors, employees, suppliers, contractors, consumers, trade unions and other public organisations, federal and local authorities, mass media, residents of areas where the Company operates, and others.

Standard: regulation containing a set of requirements for activities and their products.

Sustainability Report (non-financial report): accessible, accurate and balanced description of the main aspects of the Company’s activities and achievements pertaining to its values, goals and sustainable development policy, and addressing the matters of most importance for the key stakeholders. This is a way of publicly informing the shareholders, employees, partners and other stakeholders of the Company’s progress towards its goals and objectives set out in its mission statement and strategic development plans with respect to financial and environmental stability, and social security.

Sustainable development: concept developed by the UN that acknowledges the role of business in ensuring sustainable development of the society; a concept of global community development taking into account interests of both present and future generations.

Top management: President, Senior Vice Presidents, Vice Presidents, members of the Management Board and heads of departments of MMC Norilsk Nickel; directors of branches of MMC Norilsk Nickel and their deputies; sole executive bodies (directors, general directors) of the Group companies and their deputies.

Young talents: graduates of universities and colleges whose post-graduate experience does not exceed three years.

Stakeholder dialogue minutes

Dialogues with stakeholders are an important part of sustainability reporting in Norilsk Nickel Group. We hold regular stakeholder dialogues and take their results into consideration when determining report contents and monitoring progress in achieving sustainability goals.

While preparing the 2019 Sustainability Report, we engaged in dialogues with stakeholders as part of the We Are the City! social technologies forum in Zapolyarny. The events attended by Nornickel employees, local authorities and community representatives helped identify the UN Sustainable Development Goals (SDGs) and targets most relevant for the Company and the regions where it operates.

We held the dialogues in the form of a quiz session, inviting the participants to study cases related to Nornickel’s digital transformation (industrial innovation and safety, including comprehensive cyber protection of transport infrastructure, creating advanced IT architecture powered by blockchain technology, industrial automation, digitalisation, digital technologies and solutions, environment and biodiversity, and exchange of best international practices). Each team had to link their case to a specific SDG and come up with recommendations on how to improve the Company’s performance in the given area or in the context of each particular case. The conclusions were presented by speakers representing each discussion panel.

Dialogue minutes, Zapolyarny

Venue: Zapolyarny, We Are the City! social technologies forum

Date: 15 February 2020

Industrial innovation: the panel speakers discussed Nornickel’s presentation of exoskeletons, which featured a crash course in and testing of these machines at a dedicated site to showcase their capabilities. According to the speakers, this case could be linked to three SDGs: Good Health and Well-being, Decent Work and Economic Growth, and Industry, Innovation and Infrastructure. They also highlighted industrial exoskeletons’ efficiency in solving occupational health and safety issues and recommended that the Company keep working in this area.

Industrial safety and comprehensive cyber protection of transport infrastructure: the panel speakers noted Nornickel’s progress with its digital projects, including automation of mining and underground operations and development of a smart mine at Severny (Zapolyarny). The team linked the case to the following SDGs:

  • Good health and well-being. An unmanned mine will help minimise human exposure to hazardous and harmful working conditions;
  • Gender equality. Remote mine monitoring solutions will make it possible for the Company to engage women and disabled people;
  • Decent work and economic growth. The team recommended that Nornickel provide its staff affected by redundancy as a result of mine automation with employment opportunities by training and retraining them so that they could pick up new skills;
  • Industry, innovation and infrastructure.

In conclusion, the speakers stressed the need to employ the most effective solutions to protect automated systems from cyber attacks and server access failures. They also highlighted the importance of uninterrupted power supply to prevent emergencies and production shutdowns.

Creating advanced IT architecture powered by blockchain technology, industrial automation, digitalisation, digital technologies and solutions: the panel speakers noted the important role these technologies play in implementing complex projects, improving the production efficiency, reducing ore losses and optimising production processes.

The team linked these objectives to the following SDGs:

  • Industry, innovation and infrastructure. To pursue this goal, the Company was advised to further promote lean manufacturing by automating shift assignment and to partner with a global digital commerce platform;
  • Quality education. The speakers recommended that the Company automate the selection of employees who need training and professional development and include relevant employee obligations in employment contracts;
  • Clean water and sanitation. To pursue this goal, the Company was advised to recirculate mineralised waste water from the concentration process to reduce costs and promote sustainable use of resources;
  • Responsible consumption and production.

Environment and safety: the panel speakers focused on the controversial effects of the smelting shop shutdown at Nickel site, which will help improve the environmental situation while also leading to job losses.

This case is linked to the following SDGs:

  • Quality education. The team suggested that the Company support environmental education at universities, vocational and secondary schools and kindergartens;
  • Clean water and sanitation. The speakers proposed automating the collection of data on potable water conditions across the Company’s regions of operation;
  • Affordable and clean energy. The Company was advised to consider using alternative or renewable power sources to improve energy efficiency and achieve environmental goals;
  • Sustainable cities and communities. In this area, the speakers recommended that Nornickel consider arranging for or creating automated collection points for recyclable waste and fully transition from printing hard copies to electronic document flow;
  • Responsible consumption and production;
  • Life on land.

The exchange of best international practices: the panel speakers noted Nornickel’s participation in the 2019 General Conference of the United Nations. The Conference focused on promoting inclusive and sustainable industrial development to achieve three key goals: creating shared prosperity, advancing economic competitiveness, and safeguarding the environment. The dialogue participants presented the discussion outcomes and proposed that the Company introduce new environmental initiatives, such as clean-up days, and streamline relevant internal requirements based on the highest international standards.

Dialogue minutes, Norilsk

МеVenue: Norilsk, We Are the City! social technologies forum

Date: 28 February 2020

The exchange of best international practices: the panel speakers singled out the following SDGs as the most relevant for the case:

  • Partnerships for the goals,
  • Sustainable cities and communities.

Cleaning the city from metallurgical waste was named a number one priority. To address the issue of removing ferrous and non-ferrous metal scrap and waste, the Company should consider partnerships between its sites and SMEs.

Additionally, the Company needs to look into technical solutions to process sulphur waste into sulphur concrete and asphalt.

The environment and biodiversity: the panel speakers suggested introducing smart water management in Norilsk and creating a closed loop water system relying on water filtration and reuse.

Additionally, the team made a number of proposals related to smart controls for various resources and waste, and using alternative energy sources.

Creating advanced IT architecture powered by blockchain technology, industrial automation, digitalisation, digital technologies and solutions: the panel speakers linked the case to the following SDGs:

  • Industry, innovation and infrastructure;
  • Climate action.

In pursuance of the Climate Action goal, the Company should consider using advanced horizontal cooling technologies to prevent the permafrost thawing and rehabilitate the soil cover of the tundra. The speakers also recommended that the Company carry on with joint projects on landscaping and tundra soil rehabilitation.

In the context of the Industry, Innovation and Infrastructure goal, the speakers noted the Company’s strong effort in creating new jobs and staff retraining to promote new skills and competencies.

Industrial safety and comprehensive cyber protection of transport infrastructure: the panel speakers gave a positive assessment of Nornickel’s leadership in certifying management systems for cyber security. The team noted that Nornickel’s key ports have put in place specially designed systems to monitor the safety of cargo (including environmentally hazardous goods) handling and transportation.

The team proposed organising a foresight session in Norilsk with various stakeholders contributing to the creation of an atlas of emerging jobs relevant for the Company. In future, the Company should set up a civil university for the youth and people in need of retraining to master new technological solutions.

Industrial innovation: the panel speakers highlighted the importance of the industrial exoskeleton project and the use of exoskeletons in Nornickel’s operations. Going forward, the Company may also sell the solution to other Russian and international industry players.

This case is linked to the following SDGs:

  • Good health and well-being. To pursue this goal, the team recommended that the Company consider, among other things, using this solution in social projects, e.g. to support people with limited mobility;
  • Quality education. In this context, the team proposed that the Company and the South-West State University in Kursk expand their cooperation and set up a joint tech competency centre based in Norilsk;
  • Industry, innovation and infrastructure;
  • Partnerships for the goals.

Stakeholder recommendations

102-44

Recommendations Company response
Recommendations based on disclosure materiality surveys
From external stakeholders
Include local community opinions on the Company’s programmes in the report* Included in the Regional Development section
Disclose information on R&D and new technologies, and occupational guidance for schoolchildren Disclosed in the Innovation, Digital Technology, Personnel Development and Development of Local Communities sections
Disclose information on the creation of leisure time, recreational and personal growth opportunities for employees of Nornickel Group and local residents Disclosed in the Development of Local Communities section
From internal stakeholders
Make the English version of the Sustainability Report available on the Company’s website in the shortest possible time Done, report preparation time reduced by two months compared to 2018
Disclose the proportion of women in managerial positions Disclosed in the Appendix “UNCTAD indicators”
Provide a detailed description of personnel training programmes and progress under those programmes Described in the Personnel Development section
Disclose the proportion of local residents among employees Disclosed in the Staff Composition section
Disclose information on public policy and stakeholder engagement Disclosed in the Stakeholder Engagement section
Disclose voluntary turnover rates over the past four years Disclosed in the Staff Composition section
Disclose the ratio of water used to total water withdrawal Done, disclosed in the Appendix “GRI indicators”
Disclose information on harmful waste and targets for the next year Partially done. Information on harmful waste is disclosed in the Environment section and Appendix on GRI indicators.
The Company does not set targets for waste generation.
Disclose the number of confirmed incidents of corruption and bribery over the past four years Disclosed in the Anti-corruption section
Disclose findings of the human rights assessment To be done in the next reports
Recommendations made by the Russian Union of Industrialists and Entrepreneurs’ (RSPP) Council on Non-Financial Reporting
Recommendations on the 2018 Sustainability Report
The Company’s strategy deserves a more detailed disclosure in the Sustainability Report, and it is therefore recommended to use more references to the sources where the relevant information is presented in more detail Done, the Strategy section was expanded to include information on how the strategy correlates with the sustainability agenda (including climate topics). References to external information sources were provided
Nornickel is advised to continue disclosing information on the progress towards the UN 2030 Agenda for Sustainable Development, using it among other criteria for assessing implementation of the goals and objectives of the Company’s strategic priorities Done, the relevant section was expanded to include a table on actual investments in the achievement of the UN SDGs, including projects to deliver on strategic goals (for example, the Sulphur Programme)
It is advised that future reports describe the Company's impact on their business ethics, and social and environmental responsibility practices in more detail. It would be useful to provide examples of how ESG aspects are monitored as part of assessing the reliability of business partners, and how the latter implement relevant policies and standards into their business practices. Taking into account the new practice of the Company's adherence to the codes of conduct devised by foreign manufacturers, it seems reasonable to describe the Company's experience in this area going forward Done, relevant information was provided in the Supply Chain Management section
It would be appropriate to add a description of how feedback from stakeholders is used in management practices, namely in improving business processes and refining social programmes Stakeholder dialogue minutes are used to draft sustainability reports, enhance management practices and review progress against the Company’s projects and the UN SDGs. Stakeholder proposals tabled as part of the dialogues are transmitted to dedicated business units for processing
The Report contains information on Nornickel’s efficiency improvement programme seeking, among other things, to introduce innovative management solutions. In future reporting cycles, it is advisable to give more detailed information on the achievements in this area, including the set of KPIs related to sustainable development. Done. The Report provides information on progress against the efficiency improvement programme and overview of strategic targets (see the Strategy section). Data on top management KPIs (including those related to sustainable development) is also available (see the section on remuneration of members of the supreme governing bodies)
Taking into account the Company's active role in implementing national priorities as stated in the Report, it would be useful to provide more details on its further participation in national projects, such as the Environment, the Digital Economy, and the Smart City initiatives, going forward Done, relevant information is provided, among other things, in the Stakeholder Engagement and Digital Technology sections
The Company's reports generally provide full information on energy consumption and environmental impact across all key divisions. To improve this area of disclosure, it is further advised to report on the relevant performance of support functions (transportation, gas production, electricity generation) and smaller units, such as Bystrinsky GOK To be done in the next reports
Recommendations on previous reports
Consider holding public hearings on the draft report in the next reporting cycles To be done in the next reports
Provide more details on the KPI system, making a special emphasis on the sustainable development and corporate social responsibility KPIs The Report provides information on progress against the efficiency improvement programme and overview of strategic targets (see the Strategy section). Data on top management KPIs (including those related to sustainable development) is also available (see the section on remuneration of members of the supreme governing bodies)
 


Opinion of RSPP Council on Non-Financial Reporting

102-56



The Council on Non-Financial Reporting of the Russian Union of Industrialists and Entrepreneurs (the “Council”) established as per the Management Bureau’s Resolution dated 28 June 2007, reviewed, at the request of MMC Norilsk Nickel (the “Company”, the “Group”, “Nornickel”), Nornickel Group’s 2019 Sustainability Report (the “Report”).

The Company requested the RSPP to arrange for the public verification of the Report, with the Council on Non-Financial Reporting providing an opinion on the materiality and completeness of the Report’s information about the Company’s operations from the perspective of the Social Charter of the Russian Business. The Charter sets out key principles of responsible business conduct aligned with those of the UN Global Compact, as well as domestic and international CSR standards.

From 20 March to 03 April 2020, the Council members reviewed the content of the Company’s Report and issued this Opinion in accordance with the Council’s Procedure for Public Verification of Corporate Non-Financial Reports.

The Council members possess all the required competencies in corporate responsibility, 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.

The Report was assessed based on the below-listed criteria of information completeness and materiality. Information is considered to be material if it reflects the company’s efforts to implement the principles of responsible business conduct set out in the Social Charter of the Russian Business (www.rspp.ru).

Completeness implies that the company provides a comprehensive overview of its operations, including the underlying values and strategic benchmarks, governance systems and structures, accomplishments and key results, and the stakeholder relationship framework.

The procedure for the public verification of the Report factors in the Company’s application of international reporting frameworks; this Opinion does not, however, purport to assess the Report’s compliance with such international frameworks.

The Company is responsible for the information and statements provided in the Report. The accuracy of the Report’s information is beyond the scope of the public verification procedure.

This Opinion has been prepared for MMC Norilsk Nickel. The Company may use it for both corporate and stakeholder communication purposes by publishing the original version without any changes.

CONCLUSIONS

Based on the review of the Report and the information publicly available on the Company’s official website, and following a collective discussion of the results of the Report’s independent assessment undertaken by the members of the Council on Non-Financial Reporting, the Council confirms as follows.

Nornickel Group’s 2019 Sustainability Report covers the key areas of responsible business conduct in accordance with the principles set out in the Social Charter of the Russian Business, and provides sufficient information about the Company’s operations in relation thereto.

The recommendations made by the Council following the public verification of Nornickel Group’s 2018 Report were implemented in the 2019 Report. In particular, the Report provides more information on the Company’s updated strategy and its progress towards the UN 2030 Agenda for Sustainable Development, covers the Group’s participation in the Digital Economy national project, and provides additional references to information sources, including the annual report.

The Company’s 2019 Report contains relevant information relating to the below-listed aspects of responsible business conduct.

Economic freedom and responsibility. The Report covers Nornickel Group’s core lines of business, highlights its contribution to the Russian economy and the industry, and describes the Company’s production assets, resource base potential and strategic priorities, which Nornickel mainly pursues through innovations bringing digital technology to production, automation projects, and the efficiency and safety improvement programme. It traces changes in key financial and operational results as well as performance highlights. It notes the commissioning of Bystrinsky GOK, one of the Company’s most advanced facilities, among its key non-financial results. It describes the Company’s business prospects in the context of its sustainability strategy to 2030 and the UN Sustainable Development Goals (the UN 2030 Agenda for Sustainable Development), specifying key objectives and targets. The Report outlines the Company’s priorities and corporate programmes with respect to the SDGs. It describes the Group’s core products which will support the low-carbon transition going forward. The Report discloses the Company’s corporate governance framework and approaches to sustainable development management. It mentions that key performance indicators are aligned with the remuneration payable to members of the senior governance bodies.

It informs that the Group companies were subject to external audits for compliance with QHSE ISO standards. The Report describes the risk management framework, including with respect to sustainable development. It provides details on the Company’s anti-corruption efforts, corporate documents and procedures. The Report informs that corruption risk assessment covers virtually all the Group’s business units in addition to mandatory anti-corruption briefings for all new employees.

Business partnerships. The Report contains a stakeholder map, specifying engagement mechanisms based on an ongoing dialogue in line with international standards and corporate documents. It also covers relations with shareholders, including the dividend policy, and investors, including those focused on responsible investment. The Report describes changes in the shareholding structure and the Company’s efforts to diversify the shareholder base and attract new shareholders. It provides details on the key focus areas in HR management, including those promoting social partnership. It discloses information about the incentive system and pay scale as well as corporate programmes covering social security, staff training, occupational health and safety, corporate culture, and personnel engagement. The Report describes the Company’s efforts to implement the principles of responsible business and sustainable development in the supply chain and control of such non-financial factors in supplier relations as quality of products, works and services, HSE, and compliance. It informs that the Group’s contractors implemented the workplace safety standard and monitoring procedures. The Report also covers procurement, including key forms of customer interaction, quality assurance initiatives, customer satisfaction monitoring based on regular surveys. It describes the Company’s cooperation with government authorities on a variety of matters, including its participation in building the regulatory framework of the Digital Economy national project. It provides details on the Group’s interaction with small and medium businesses as well as non-profit organisations.

Human rights. The Report highlights the Company’s commitment to human rights in line with the generally accepted international principles and the applicable laws of Russia and other countries of operation. It provides information about the Company’s by-laws, including the Human Rights Policy, and the procedures for the protection thereof relating to the HR, environmental, social and other matters. The Report also focuses on the respect of labour rights. It mentions that the Company regularly assesses the potential impact of its operations on human rights and rolls this practice out to all new projects. The Report declares respect for the rights of indigenous northern minorities, including examples of cooperation with a view to preserving national languages and traditional activities and improving living and working conditions.

Environmental protection. The Report includes information on the environmental initiative launched as part the Company’s updated development strategy which focuses on transition to green production in line with best global practices, including SO2 capturing techniques. It mentions that the Company is developing the programme tracking climate changes which provides, inter alia, for assessment of investment projects for climate risks with their possible adjustments It provides information about the Sulphur Programme roadmap for 2020–2030 and the Roadmap to Reduce Air Pollutant Emissions at Polar Division in 2018–2023. It also mentions that the Group assessed GHG emissions of its facilities. The Report presents details on the environmental management system as well as water body protection, waste management, biodiversity conservation, including land rehabilitation, cooperation with nature reserves, and reproduction of aquatic bioresources. It includes a great number of gross and per-unit environmental impact indicators of the Group’s operations. The Report covers the Company’s efforts to enhance the reliability of power generating equipment, grid and gas transportation infrastructure, boost gas output, and save energy. It also specifies the Company’s environmental expenditures.

Contribution to the development of local communities. The Report highlights the Company’s contribution to the social and economic development of the Krasnoyarsk and Trans-Baikal territories and the Murmansk Region, providing more details on tax and non-tax payments to budgets of various levels, and on the financing of social, infrastructure and employment programmes. It discloses information about the Company’s relations with regional and municipal authorities under partnership agreements with a view to implementing investment and social projects. It describes the activities of the Norilsk Development Agency established by the Company. The Report covers the details of fostering cooperation with local producers, including small and medium businesses, in the regions of operation. It mentions the Company’s plans to promote tourism on the Kola Peninsula. The Report provides the list of key social and environmental projects and programmes, including those supporting culture, sports, social entrepreneurship, and volunteering. It mentions that the Company updated the World of New Opportunities long-term programme and deployed online tools for interaction with local communities and implementation of the programme. It includes details on a framework for managing social projects and assessing their performance.

Final provisions

The information contained herein generally describes the Group’s strategy, business practices and results in sustainable development and corporate social responsibility as well as the supporting governance systems. The Report elaborates on how the Company’s focus areas and projects are aligned with and contribute towards the UN 2030 Agenda for Sustainable Development, while disclosing a significant number of the Company’s economic, social and environmental performance indicators. It covers the main focus areas and forms of stakeholder engagement, including those used as part of the reporting process.

The Report was prepared using internationally and domestically recognised reporting tools (e.g. the GRI Standards, Comprehensive option, GRI Sector Disclosures), which ensures comparability of the Group’s information with that of other Russian and international companies. In drafting the Report, the Company also relied on the following documents: the UN Global Compact, the UN 2030 Agenda for Sustainable Development, ISO 26000:2010, AccountAbility Standards АА1000SES (2015) and AA1000AP (2018), the UNCTAD Guidance on core indicators for entity reporting on contribution towards implementation of the UN Sustainable Development Goals, and TCFD recommendations on climate-related risk disclosures.

The 2019 Report is the Company’s sixteenth non-financial report, which demonstrates its determination to consistently develop reporting processes and enhance transparency. The Company uses various forms of independent assessment and confirmation of disclosed information (professional audit and public verification). This reflects the Company’s commitment to keeping stakeholders informed and maintaining the high quality of disclosures.

RECOMMENDATIONS

While acknowledging the Report’s strengths, the Council calls attention to some aspects of disclosures’ materiality and completeness, which should be addressed in the future reporting cycles.

The Council notes that the recommendations made following the review of the previous 2018 Report remain valid and good for use going forward.

The Report elaborates on the Company’s input to the implementation of the UN Sustainable Development Goals. The same approach should be used to highlight the Company’s contribution towards national projects and objectives which corporate projects seek to achieve, including results vs targets. If included, such information would enhance the public relevance of corporate reports and results achieved and serve as additional evidence of the Company’s social responsibility.

While acknowledging the Report’s partially implemented approach to disclosing the Company’s performance based on plans vs actual results vs targets for the next period, we recommend that going forward the Company roll out this practice to the main focus areas and the most critical programmes.

The report mentions the efficiency and safety improvement programme as one of the Company’s strategic priorities. It also aims to increase labour productivity. It is advised that future reports cover changes in labour productivity, which is key to understanding performance both nationwide and company-wise. This is one of key metrics used by the Russian Union of Industrialists and Entrepreneurs (RSPP) and the Moscow Exchange in their ESG indices, specifically the RSPP Sustainable Development Vector index.

The Report covers the Company’s efforts to reduce the impact of its sea transportation operations on the Arctic ecosystems. Given its relevance, it is recommended going forward to disclose such performance indicators as solid (soot) emissions from sea transportation.

The Report describes how the Company implements digital solutions in its production and management processes. Assuming the strong potential as well as opportunities and risks related to information technologies, it is advised that future reports reflect the results thereof both in terms of higher output and labour productivity and in the context of a broader range of sustainable development matters (better labour quality, environmental safety, etc.).

The Report gives account of the Company’s framework for assessing the performance of social programmes. Given its importance for stakeholders, such information deserves a more detailed disclosure.

It is advisable to include specific examples of assessments performed as well as results and takeaways, especially for the most critical programmes.

To ensure the consistency of information contained in consecutive reports, it would be useful to keep covering the Company’s participation in major domestic and international initiatives announced in the previous periods. In particular, this applies to disclosing the nature of the Company’s cooperation with BASF to develop the green economy and the development status of the Charter for Suppliers, with updates to be included in the next report.

The Report provides sufficient information about the Company’s management approaches to sustainable development and its achievements across the main focus areas. In future reporting cycles, it is desirable to pay more attention to areas of concern, too. In particular, this applies to issues related to occupational health and diseases. To ensure a more complete disclosure, it would be useful to describe the Company’s specific initiatives to reduce injury and disease rates among its employees and contractors.

The Company holds regular stakeholder dialogues, customer satisfaction polls and personnel engagement surveys. The Report highlights that these efforts translated into management decisions. It would also be appropriate to add a description of how the management uses feedback from stakeholders, including the examples of decisions made thereon.

The RSPP Council on Non-Financial Reporting hereby takes a positive view of this Report, supports the Company’s commitment to responsible business practices, notes consistency in developing the reporting process, and confirms that Nornickel Group’s 2019 Sustainability Report has passed the public verification procedure.

RSPP Council on Non-Financial Reporting

Independent assurance report*