RUS

Digital Nornikel 2019

Sustainability report

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Regional development

RUB 192.4 bn
tax and non-tax
payments to budgets
in 2019

Regional development

Nornickel is one of the major employers and taxpayers in Russia. The Company makes a significant contribution to the development of local communities by implementing a range of social programmes that address current and potential future issues.

Achievements

Horizons

We work with regional development institutions (most notably Norilsk Development Agency, or NDA) to build infrastructure that would enable accelerated development across our footprint. The NDA’s mission is to lay the foundation for accelerated development of the city’s service-based economy as a way of improving Norilsk’s living standards and promoting local products and services on external markets.

Prospects

In Norilsk, we launched SME Business Navigator, a free website for entrepreneurs who want to launch a business or take it to the next level

Numbers

In 2019, we spent RUB 9.6 bn on social programmes and employee benefits.

Krasnoyarsk Territory

Area 2,366,800 sq km Population 2,874,026 people

Mineral resources

Industry

Nornickel’s performance in the Krasnoyarsk Territory

  • Oil, gas, coal, platinum and PGMs, copper, nickel, cobalt, lead, zinc, bauxite, gold, silver, iron
  • Non-ferrous metallurgy
  • Mining
  • Solid fuel–based power and hydropower generation
  • Taxes and other payments:
    RUB 104.2 bn
  • Headcount:
    52,000
  • Average monthly salary:
    RUB 112,000
  • Employee-related social expenses:
    RUB 2,808.1 mln


Key areas of cooperation with the Krasnoyarsk Territory

Economic

Social

Environmental

  • Cooperation on major investment projects in the Krasnoyarsk Territory
  • Heat and power supply to the communities and companies of the Norilsk Industrial District
  • Implementation of the Northern Supply Haul programme in the Arctic
  • Development of transport and the telecommunication infrastructure
  • Improvement of the existing sports infrastructure and construction of new state-of-the-art facilities in the Krasnoyarsk Territory
  • Support for vocational and supplementary education
  • Implementation of the World of New Opportunities programme, supporting and promoting regional public initiatives
  • Construction of modern housing and utilities, city and village improvement initiatives
  • Implementation of cutting-edge green technologies
  • Restoration and landscaping of urban territories
  • Development of Taimyr’s specially protected natural areas
  • Organisation and backing of environmental campaigns


Murmansk Region

Area 144,900 sq km Population 748,056 people

Mineral resources

Industry

Nornickel’s performance in the Murmansk Region

  • Apatite, nickel, iron, copper, cobalt, palladium, platinum and PGMs, peat
  • Mining
  • Metallurgy
  • Fishing
  • Taxes and other payments:
    RUB 19.9 bn
  • Headcount: 12,300
  • Average monthly salary:
    RUB 86,200
  • Employee-related social expenses:
    RUB 551.2 mln


Key areas of cooperation with the Murmansk Region

Economic

Social

Environmental

  • Implementation of investment projects in the region
  • Development of production capacities
  • Social and economic development of municipalities that are home to Kola MMC's production sites
  • Development of the transport infrastructure in the Arctic
  • Implementation of the World of New Opportunities programme, supporting and promoting regional public initiatives
  • Ensuring heat supply to communities across Kola MMC's footprint
  • Development of social entrepreneurship
  • Cooperation on environmental protection, preservation of the Kola Peninsula's natural ecology and landscapes
  • Promotion of tourism in the Murmansk Region
  • Organisation and backing of environmental campaigns


Trans-Baikal Territory

Area 431,900 sq km Population 1,065,785 people

Mineral resources

Industry

Nornickel’s performance in the Trans-Baikal Territory

  • Copper, uranium, molybdenum, titanium, gold, tungsten, iron, zinc, silver, lead, coal
  • Mining
  • Production and distribution of electricity, gas and water
  • Non-ferrous metallurgy
  • Machinery and equipment manufacturing
  • Food production
  • Taxes and other payments:
    RUB 3.2 bn
  • Headcount:
    3,300 people
  • Average monthly salary:
    RUB 97,300
  • Employee-related social expenses:
    RUB 29.6 mln


Key areas of cooperation with the Trans-Baikal Territory

Economic

Social

Environmental

  • Bystrinskoye Deposit development. Over the first 10 years of Bystrinsky GOK operation, the Company plans to contribute around RUB 18 bn to the territory’s budget in tax payments
  • Improvement of Bystrinsky GOK’s transport accessibility
  • Training of mining industry employees
  • Support and development of the volunteer movement
  • Improvement of urban areas
  • Development of the Relict Oaks State Reserve located in the region


The Company's contribution to the development of local communities

Nornickel is one of the major employers and taxpayers in Russia*. The Company makes a significant contribution to the development of local communities by implementing a range of social programmes that address current and potential future issues.

The Group’s key regions of operation in Russia include the cities of Norilsk and Monchegorsk, the Taimyrsky Dolgano-Nenetsky Municipal District of the Krasnoyarsk Territory, the Pechengsky District of the Murmansk Region, the Tazovsky District of the Yamal-Nenets Autonomous Area, and the Gazimuro-Zavodsky District of the Trans-Baikal Territory. Saratov hosts Nornickel’s Shared Services Centre. In the Tver Region, the Company is engaged in the construction of housing for its employees under My Home and Our Home programmes.

203-2



Spending on social, charitable and social infrastructure programmes*, RUB mln 203-1



Budget payments

Changes in the tax and non-tax payments for 2019 vs 2018 were due to higher income taxes resulting from a higher taxable base.

Tax and non-tax payments* to local, regional and federal budgets, RUB bn

Budget

2015

2016

2017

2018

2019

Total tax and non-tax payments,
including to

88.7

91.5

100.3

115.6

192.4

  • Federal budget

11.9

14.1

14.3

18.3

31.8

  • Krasnoyarsk Territory consolidated budget

43.6

41.6

47.8

55.9

104.2

  • Norilsk budget

5.5

4.7

5.0

5.2

8.0

  • Murmansk Region budget

8.2

7.8

8.2

10.6

19.9

  • Trans-Baikal Territory budge*

0.9

1.2

3.2

Employment of local population

The Company provides ample career guidance and job opportunities for local communities across its key regions of operation.

To boost employment in Norilsk, MMC Norilsk Nickel and Norilsk Employment Centre signed an agreement aimed at retraining those out of work for the most needed blue-collar jobs.

The main target audience of career guidance events are children and young people under 35 years old. The Company builds partnerships with educational organisations and engages young workers, while also providing robust support for talented teachers, engineering training and whipping up interest in engineering and blue-collar jobs.

Nornickel also provides financial support to Norilsk's institutions of secondary and higher vocational education by buying books and specialised equipment for students, contributing to the maintenance works, and thus improving the quality of training. The Company primarily focuses on the training of specialists for the most in-demand jobs.

Unemployment in key communities*

Unemployment rates

2018

2019

2019/2018, ∆

Norilsk

0.7%

0.6%

-0.1 p.p.

Taimyrsky Dolgano-Nenetsky Municipal District

0.9%

0.8%

-0.1 p.p.

Krasnoyarsk Territory

0.8%

0.8%

Monchegorsk

2.2%

2.2%

Zapolyarny

2.1%

2.0%

-0.1 p.p.

Nickel

2.5%

3.3%

+0.8 p.p.

Murmansk Region

1.5%

1.7%

+0.2 p.p.



Cooperation development

As part of its social and economic partnership agreements, Nornickel has been cultivating cooperation with the companies of the Krasnoyarsk Territory and the Murmansk Region. Integration of local businesses into the Group’s production chain (mainly through long-term contracts) contributes to the economic development of the regions, particularly by supporting small and medium-sized businesses.

Cooperation development in figures

Indicator

2018

2019

Krasnoyarsk
Territory

Murmansk
Region

Krasnoyarsk
Territory

Murmansk
Region

Procurement tenders for goods and services held by the Company

1,516

673

1,863

501

Locally awarded procurements as a share of tenders held by the Company, %

57.7

49.5

59.8

41.7

The Group’s spending on local procurements,
RUB mln

including

12,503.8

1,792.8

15,661.9

1,743.5

  • services

9,434.8

1,579.8

1,636.6

304.7

  • materials

2,209.7

213

13,124.1

1,438.8

  • food supplies

859.3

0

901.2

0



Infrastructure development

Nornickel is actively involved in the development and renovation of social infrastructure, looking to create accessible and comfortable environments for working and living in the regions.

A key focus in the reporting year was the continued landscaping of the Dolgoye Lake embankment in Norilsk in cooperation with the municipal authorities. The project is implemented in stages and is scheduled to complete in 2021. Its concept includes installation of sports- and playgrounds, setting up ski, roller blades, bicycles and other rentals, construction of a boat station, a café, a skate park, and a roller rink, outfitting the area with street lights and furniture, paving and landscaping. The Company has invested a total of RUB 210.7 mln in the project since its launch.

On top of that, the Company provides funding to maintain and expand the existing regular passenger and luggage bus service under Cooperation Agreement No. 88-751/16 dated 24 March 2016 (subsidising passenger bus services provided by the Norilsk Production Association for Passenger Transport). Nornickel’s expenses on these initiatives totalled RUB 195.1 mln in 2019.

Podsolnukh store chain

The Podsolnukh store chain, a part of Nornickel Group, takes its fair share of the retail market in the Norilsk Industrial District with nine stores, including one hypermarket. The SKU range of the chain includes socially significant food products (vegetables, fruit, grains, dairy products, meat, canned foods, eggs, sugar, etc.) that are offered at substantially lower prices than in other regional stores. The average retail prices in the Podsolnukh store chain grew notably slower than the official inflation rate.

Key social infrastructure development projects in 2019

Region

Focus area

Projects

Krasnoyarsk Territory

Land improvements

  • Landscaping of the Dolgoye Lake embankment in Norilsk
  • Routine repairs and equipment purchases for public institutions

Sports

  • Construction of a multi-purpose sports and recreation centre for team sports in Norilsk
  • Supporting Norilsk-based sports organisations and institutions (including equipment purchases); implementing sports development projects

Culture and education

  • Supporting Norilsk-based culture and art organisations and institutions

Transportation

  • Subsidising passenger bus services in Norilsk
  • Reconstruction of Norilsk airport

Housing

  • Implementation of the Comfortable Taimyr project to build housing in Tukhard, Taimyrsky Dolgano-Nentsky Municipal District

Society

  • Provision of free hot meals for the low-income population of Norilsk
  • Helping organise and run professional festivals for tundra inhabitants, the Reindeer Herder's Day and the Fisherman's Day
  • Supporting local organisations that help disabled or rehabilitated people
  • Financing summer recreation for kids from special extra-familial child care institutions
  • Supporting Norilsk NPOs by funding their statutory activities, hosting anniversary commemorations and festivals, forums and conferences, organising city-wide events and campaigns
  • Supporting a local religious organisation, the Orthodox parish of the Joy of All Who Sorrow Cathedral in Norilsk

Trans-Baikal Territory

Land improvements

  • Completing the reconstruction of Dekabristov Square in Chita
  • Implementation of the Green Trans-Baikal project to create comfortable living conditions factoring in the environmental and climate aspects of the area
  • Implementation of projects for social and economic development of the Gazimuro-Zavodsky District

Sports

  • Supporting youth sports
  • Implementing the Future of the Trans-Baikal Territory project to promote healthy lifestyle, physical education and mass sports

Education

  • Launch of Quantorium, a children’s high-tech park
  • Implementation of the Territory of Growth, and Successful School for Successful Future projects seeking young talent and aimed at developing children’s potential
  • Renovating the 2nd floor lobby of the children’s art centre

Society

  • The Trans-Baikal Legacy project to promote the residents’ achievements and provide a positive influence on young people and the community in general, which will help engage more people in socially impactful activities, including public organisations and NPOs
  • “I remember, I am proud!” programme (hosting thematic exhibitions and festivities including those to celebrate the World War II Victory Day on 9 May)
  • Developing the Growth Trajectory youth movement and the volunteer movement and supporting creative youth projects
  • Erecting a memorial to the Trans-Baikal residents killed while on military duty
  • Completing the development of the Relict Oaks State Reserve
  • Supporting the Veteran Council

Culture

  • Trans-Baikal International Film Festival

Murmansk Region

Land improvements

  • Reconstructing the Leningradskaya embankment in Monchegorsk
  • Co-funding the city road network reconstruction
  • Office refurbishment for the Monchegorsk Society for the Disabled
  • Printing house refurbishment for the regional public charity foundation BlagoDat
  • Festive decorations for the Monchegorsk Central District Hospital

Society

  • Establishing the Second School educational centre in Nickel

Sports

  • A multi-purpose outdoor sports ground for the Delfin sports centre

Culture

  • Building a modern cinema in Zapolyarny in cooperation with Russia's Cinema Foundation


Contribution to the social and economic development of Nickel

In November 2019, to ensure environmental compliance and address ecological issues in the Pechengsky District of the Murmansk Region, the Company decided to shut down its smelting facilities in the town of Nickel.

Together with district, regional and federal authorities, members of the local community, and Russia’s Monotowns Development Fund, Nornickel identified the key priorities of a strategy to support continued social and economic development in the Pechengsky District, including:

  • establishment of new enterprises based on traditional business models (fish processing, bakery, cheesemaking, brewing, recycling and packaging, manufacturing of construction materials, etc.);
  • establishment of a diverse industrial park housing production facilities with a small environmental footprint;
  • development of a service economy and tourism (opening service shops and production facilities, building tourism infrastructure, and creating world-class tourism products);
  • transformation of the social and cultural environment spearheaded by the Second School Centre.

The final version of the Nickel development strategy should be adopted in 2020, with the first stage expected to require around RUB 400 mln in funding.

The establishment of the Second School Centre, a specialised development institution, was a remarkable event for Nickel.

In 2019, the Second School Centre developed into a genuinely multifunctional public space for some 500 cultural and educational projects and events encouraging social activity among the Pechengsky District population, such as:

  • art exhibitions and creative meetings,
  • theatrical performances,
  • quiz games and intellectual competitions,
  • family and children's parties.

Members of the Pechengsky District community also took part in several international social and cultural projects, including the Tromsø Christmas Market (Norway), Quiet Life exhibitions in Vardø, Kirkenes and Hellfjord (Norway), Cross-Border Cooperation Days, and the Spirit of Inari 2019 International Tourism Seminar (Finland).

Liinakhamari Port

To develop tourism in the Pechengsky District, the Company plans to build Liinakhamari Port, an integrated tourist hub that would help tourists see the sights of the Kola Peninsula and promote various types of tourism. The project’s concept is based on an integrated approach to the area's development and multi-seasonal operation.

Public and private financing will be used. The project’s CAPEX will amount to RUB 24.8 bn (including VAT), with Nornickel contributing RUB 10.5 bn.

The project will create over 500 jobs mostly for university graduates (HoReCa and tourist infrastructure). In total, the Pechengsky District will see more than 3,000 new jobs if we take into account the growth of related small and medium businesses.

Development of local communities

Charitable programmes

We run World of New Opportunities, a charitable programme to encourage and promote sustainable development of local communities. The programme is designed to develop soft skills in local communities, demonstrate and introduce new social technologies, support and promote public initiatives, and encourage cross-sector partnerships.

In 2019, we approved an updated, more structured and efficient version of the World of New Opportunities programme that incorporated the lessons learnt and stakeholder feedback.

Key dimensions of the World of New Opportunities programme:

Develop! — developing local territories through building partnerships;

Invent! — fostering R&D creativity and the spirit of invention;

Act! — growing the service-based economy;

Create! — putting in place infrastructure to enable accelerated development and improved quality of life across the Company’s regions of operation.

In 2019, approximately 45,000 people from across the Company’s regions of operation took part in the World of New Opportunities events. The key platforms were:

  • We Are the City! social technologies forum;
  • We Are the City! picnic;
  • All-Russian Science Festival;
  • Arctic Wave festival of R&D discoveries;
  • IMAKE engineering marathon;
  • School of Urban Competencies;
  • School Break educational project;
  • Imandrа Viking Fest of Nordic culture;
  • Rally of Social Entrepreneurs from the North.

During the reporting year, we also developed online tools for interaction with local communities and implementation of the World of New Opportunities initiatives, including a World of New Opportunities app and an online platform for placing Socially Responsible Initiatives Competition bids.

The World of New Opportunities app allows users to navigate through the programme, receive timely notifications about future events and register for them, meet other participants, download speaker and expert presentations, and take part in interactive surveys and quizzes.

The online platform for Socially Responsible Initiatives Competition* not only significantly simplified the bidding process, but also made bid assessment by the expert board and competition management much easier.

DEVELOP!

Socially Responsible Initiatives Competition

Each year, we stage the Socially Responsible Initiatives Competition for non-profit organisations to support public initiatives seeking to lay fertile ground for sustainable development in the regions of operation.

In 2019, financing from the Company’s budget amounted to RUB 124.4 mln and covered 116 projects, including those aimed at developing volunteer movements, supporting socially vulnerable groups, implementing new child engagement techniques and technologies, performing renovation and restoration on public facilities, and so on.

In autumn 2019, a new edition of the Socially Responsible Initiatives Competition saw record-high 507 project bids. 114 projects were announced as winners, with their implementation slated for March 2020.

We Are the City! social technologies forum

In 2019, Norilsk, Monchegorsk and Nickel hosted the fifth anniversary iteration of the We Are the City! social technologies forum, which brought together locals, officials, businesses and journalists. The main theme of the forum’s anniversary edition was public spaces. Urbanism specialists and architects, thinkers and doers, experts from Moscow, St Petersburg, Perm, Norilsk and the Murmansk Region and other participants discussed ways to harness the communities’ creativity to add colour and life to urban locations (entrances to apartment buildings, yards and streets).

The visual layout of the forum included works by local artists. The paintings of Norilsk, Monchegorsk and Nickel are the perfect illustration of ideas behind the We Are the City! event.

The forum culminated in a charitable play called «Andrey Urgant’s Travel Notes about Nornickel Volunteers». The unique performance was based on true stories enacted by volunteers from among Nornickel employees. The proceeds from ticket sales worth RUB 241,440 were donated to the House with Tail animal shelter in Monchegorsk and the Giving Hope charity foundation helping stray animals in Norilsk.

We Are the City! picnic

This urban event served as a natural follow-up to the social technologies forum and its agenda of breathing a new life into public spaces, filling them with meaningful recreation opportunities. The picnic’s programme consisted of seven components:

  • intellect — interesting lectures and quizzes;
  • movement — exciting dances and active games;
  • nature — making useful items out of recycled materials and planting seeds;
  • art — performances and crafts;
  • sound — live music and instrument workshops;
  • physical and inner strength — yoga, martial arts, water sports;
  • food — culinary workshops and tastings.

Around 11,200 people attended the festive events held in Norilsk, Monchegorsk, Zapolyarny and Chita. The Company’s financing amounted to RUB 27.5 mln.

School of Urban Activities

In 2019, the School of Urban Activities continued to teach committed and social-minded individuals how to organise large city-wide events. In the reporting year, the participants staged Imandra Viking Fest in Monchegorsk to celebrate Nordic culture. The event saw attendance of 6,500 people from 30 cities across five countries, and benefited from contributions of more than 10 historical re-enactment clubs from different Russian regions.

School Break educational project

During the We Are the City! social technologies forum held in February in Norilsk, we launched a new educational programme called «School Break». Its aim is to facilitate communication between children, their parents, and teachers in a joint effort to improve the education process. The project seeks to make sure that the participating teachers will pass on the newly acquired knowledge and competencies to their local schools.

In 2019, the project saw the students, their parents and teachers take part in four training modules that included public lectures, on-site internships, master classes and discussions. All in all, some 489 participants joined forces to organise events for 2,400 kids using cutting-edge interactive techniques.

Following the successful pilot in Norilsk, Zapolyarny and Nickel, the organisers decided to expand its geography in 2020 to cover educational facilities of Monchegorsk and Murmansk.

INVENT!

IMAKE engineering marathon

IMAKE aims to motivate school students to get into project work and pursue inventions. The marathon is conducted in stages, whose purpose is to grow the IMAKE Inventors League – a community of inquisitive school students ready to generate ideas and turn them into prototypes. In 2019, more than 1,000 students signed up on the marathon’s website for the first stage and completed an intellectual flash game, with the winners moving on to the second stage. That one saw the participants (160 people in total) take part in a two-day engineering and scientific workshop in five cities across the Company’s footprint. In January 2020, 30 winners of the marathon will go to a seven-day winter Science Camp.

Arctic Wave festival of R&D discoveries

In 2019, Norilsk and Zapolyarny hosted the fourth Arctic Wave festival with the purpose of cultivating interest in research and development among the youth, supporting creative engineering ideas and innovative thinking among schoolchildren, and demonstrating the latest domestic and global scientific achievements. There were interactive displays of various R&D discoveries and exciting chemical experiments, and insightful lectures by young Russian scientists.

One of the highlights of the 2019 festival was the Age of New Heroes hands-on exhibition. Visitors explored an improvised City of Heroes, helping its “denizens” with science-themed tasks and gaining new knowledge and skills to be finally titled New Age Heroes. That year’s event attracted over 4,500 people.

ACT!

Nornickel runs a Social Entrepreneurship course that takes the participants all the way from the development of a unique business plan to its presentation at an investment session. During the course, real businessmen assist the students with classes and homework.

Five graduates of the 2019 course were awarded RUB 26.3 mln in interest-free loans to develop the following business ideas:

  • Martsin farm;
  • ophthalmology room at the Zdorovaya Semya medical centre;
  • Summer Snow tubing park;
  • LOFT charity store;
  • Dance Place studio.

In addition, the Company organises annual Rallies of Social Entrepreneurs from the North, with the 2019 iteration having taken place in Monchegorsk and centred on tourism, service and hospitality industries. Experts from these fields got together with social entrepreneurs to exchange experience in tourism management and its different facets, including attracting and retaining customers, arranging festivals, promoting industrial tourism and extreme pastimes.

CREATE!

We work with regional development institutions (most notably Norilsk Development Agency, or NDA, and Second School Centre established in the Pechengsky District in December 2019 to promote social projects) to build infrastructure that would enable accelerated development across our footprint.

The NDA’s mission is to lay the foundation for accelerated development of the city’s service-based economy as a way of improving Norilsk’s living standards and promoting local products and services on external markets.

The Agency’s key focus areas are as follows:

  • Business (Norilsk as a city of developed service-based economy);
  • Development (Norilsk as a city of modern selling spaces);
  • Tourism (Norilsk as a city of tourists);
  • Social and Cultural Projects (Norilsk as a city of rich social and cultural life).

Under the Development umbrella, in 2019 the NDA oversaw the completion of an exercise to draft an urban master plan for the next decade and the start of its implementation with the construction of a state-of-the-art city park and a public space, and the restoration of mosaic art on building façades. In the reporting year, the Norilsk master plan won the Best Territorial Planning Layout award in the International Professional Competition staged by the National Association of Members Performing Engineering Surveys and Design Documentation.

As part of the Tourism workstream, we established the Arctic tourist and recreational cluster on the Taimyr Peninsula, with the list of main attractions including the Putorana Plateau (a UNESCO World Heritage Site), Norilsk, and Dudinka.

As regards Social and Cultural Projects, we organised a number of big festivals and various other events with the overall attendance in excess of 70,000 people



In 2019, we continued implementing IT solutions across our social projects. For example, in Norilsk we launched SME Business Navigator, a free website for entrepreneurs who want to launch a business or take it to the next level. During the year, almost a quarter of Norilsk’s SMEs registered on the website, with close to 90% of them getting legal support and business plan calculations online, as well as choosing the tax regime and applying for property and financial aid.

Larisa Zelkova

Senior Vice President for HR, Social Policy and Public Relations



Social portrait of a city resident

From October 2018 to February 2019, we conduced a Social Portrait of a City Resident survey to assess the current situation in the cities and identify development priorities for the next decade. What made this survey unique was the use of computational sociol ogy tools such as machine learning algorithms to analyse the interviewees’ digital profiles.

The survey covered 8,078 residents of Norilsk, Monchegorsk, Zapolayrny and Nickel who contributed more that 33,000 ideas and proposals.

Key resident needs:

  • Improved urban infrastructure and constructive dialogue on how to make the urban environment more pleasant to live in and attractive from a design perspective
  • Understanding the city’s development strategy and the authorities’ efforts to this end
  • Healthy lifestyle, illness prevention and reduction in the disease incidence rate
  • Opportunities for self-fulfilment and communication with experts from various professional spheres
  • Support for small and medium-sized businesses and entrepreneurship development
  • Creating a shared urban design concept, landscaping and planting of greenery
  • Extending pedestrian areas and walking routes
  • Developing healthcare and making it more accessible
  • Fostering tourism
  • Improving literacy levels in local communities
  • Organising diverse and appropriate leisure activities for various age groups
  • Addressing environmental issues

The Company plans to take into account the collected feedback when designing production and social programmes for its employees and local residents.

Targeted charitable support

We continued providing targeted charitable donations in response to special requests from organisations. In 2014, Polar Division and Kola MMC set up dedicated charity committees to review such requests. Certain donations are also approved by the Company's management. Nornickel has traditionally supported:

  • entities dealing with vulnerable groups of population (veterans of World War II, disabled people, multichild families, children with special needs, financially disadvantaged citizens),
  • participation of local non-profit organisations and institutions in various sports competitions, creativity contests, etc.;
  • organising and holding professional festivals for tundra inhabitants to preserve the national traditions and culture of indigenous northern minorities.

In addition to financially supporting combat survivors, World War II veterans and former law enforcement members, we send our representatives to sit on the boards of trustees of associations and foundations running a variety of military and patriotic projects (including as part of the Hero of the Fatherland programme).

Corporate volunteer programme

Our corporate volunteer programme aims to enhance corporate culture and social responsibility through the mutual assistance among employees and the Company's support for volunteer initiatives, charitable campaigns, and projects addressing local social issues.

The volunteers focus on promoting campaigns to support kids with special needs and their families, as well as children without parental care. They also do environmental work.

The shining example of fruitful cooperation between the business and local communities, Nornickel and its employees was the Plant of Goodness project, which helped harness and streamline the Company’s expertise and its vast track record of social and environmental initiatives in a structured and efficient manner. Today, this programme is implemented across the regions of Nornickel’s operations, including Norilsk, Monchegorsk, Zapolyarny, Chita and Moscow. Each year, around 500 employees volunteer as part of the Plant of Goodness project. After being volunteers for some time, our employees often come up with their own initiatives. The skills and expertise they obtain doing this kind of work help them not just in everyday life, but also in their career pursuits.

In 2019, the Plant of Goodness participants:

  • did over 10,000 hours of volunteer work;
  • organised more than 200 volunteer campaigns with inputs from 18,000 local residents;
  • donated over RUB 4.4 mln of personal funds towards charity.

One of the largest and most important projects of the programme is the Let’s Do It! environmental marathon. Having started out as just a series of clean-up days, the marathon has come to include environmental awareness initiatives in addition to urban improvement activities. Over its history, the number of participants grew exponentially — from 100 to approximately 17,000. Some of the most exciting events of Let’s Do It! included:

  • large-scale environmental festival comprising a give-away shop, lecture club, and a venue to exchange plastic for environmentally friendly products;
  • urban improvement of a number of city spaces, including through the use of recycled materials;
  • new workshop on plastic recycling, where anyone could make use of a shredding machine and a furnace to craft something useful out of bottles and caps they have collected.


Our environmental project goals include landscaping and installation of a greenhouse and our own weather station, as we plan to engage children in research activities. We are happy to have volunteers from Nornickel’s Plant of Goodness lend us a hand in that.

Ekaterina Protsiv

Head of the Department for Social Rehabilitation of Underage
Children at the Pechenga Comprehensive Social Support Centre.



Also, the 2019 environmental marathon saw a variety of environmental awareness raising events, clean-up days, and other volunteer initiatives. One of the new formats we tried during the reporting year was Guide for the People. The campaign’s participants took people on partially interactive excursions and developed quests to acquaint local residents with unusual environmental projects and topics.

At the start of 2019, we launched Employees’ Personal Donation Programme as part of the Plant of Goodness corporate volunteering project, which saw employees contribute money to those in need of emergency care. The recipients ranged from the region’s residents with expensive medical bills to non-profit organisations helping kids, the disabled, seniors, or animals. Once the employees were done donating money for each specific initiative, the Company added its own budget funds on top of that. In that way, the personal donation programme showed how much could be achieved when individuals and the Company join their efforts.

Another highlight of the Plant of Goodness was its final 2019 event — the I am volunteer! family festival in Norilsk. It had 20 interactive sites and various master classes. The attending animal shelter organisations were able to collect 45 kg of animal food from the sympathising citizens. One of the most vibrant sights was provided by hospital clowns, who gave young patients the proverbial best medicine in the form of laughter. In total, 400 Norilsk residents attended the family festival. In just three hours, nearly 50 people showed interest in joining the Plant of Goodness programme.

In 2019, we released a documentary on the Company's volunteering activities called "Caring"*, which won prizes at Cannes Corporate Media & TV Awards 2020 and Los Angeles Film Awards.

Support for sports projects

As an active supporter of sports, Nornickel sponsors major Russian and international sports organisations and provides financing for the upgrade of sports facilities, construction of sports schools and playgrounds.

Support of sports organisations and competitions

Russian Olympic Committee

Partner

International University Sports Federation (FISU)

Partner

Russian Futsal Association

General partner

Norislk Nickel Futsal Club

General sponsor

Ice Hockey Federation of Russia

General partner

Night Hockey League

General partner

CSKA professional basketball club

General sponsor

Russian Curling Federation

General partner

WCT Arctic Curling Cup international competition

General partner

All Russian Federation of Dance Sport and Acrobatic Rock'n'Roll

Partner


Rosgonki and Sochi Autodrom

Partner



29th International Winter Universiade in Krasnoyarsk

In March 2019, Krasnoyarsk hosted the 29th International Winter Universiade.

As the general partner of this global sports event, we honoured the full scope of our responsibilities and commitments concerning its preparation and staging.

In total, we contributed in excess of RUB 2.4 bn to the 2019 Winter Universiade.

Nornickel’s role in the organisation of the universiade was highly praised by international federations, participating nations, the event’s managers and top officials of the Russian Federation. We also received a number of high-profile awards for our work (Regional Development. Best for Russia, Sport Leaders, BISPO Awards, Russia’s Best Social Projects, MARSPO Awards). The Company’s support for the universiade helped boost the international image of the Krasnoyarsk Territory and its capital, promote healthy lifestyles and mass sports, and enhance living standards in the region.

In addition to financial and infrastructure support, we assumed additional obligations, including staff training, own volunteering programme, and helping the world discover the new image of modern Siberia.

In the run-up to the Winter Universiade, the Company completed a large-scale upgrade of the Bobrovy Log Fun Park. We built an up-to-the-minute athletic training facility equipped with a broadcasting system, developed an integrated security system in line with Russian and international standards, expanded the ski pistes and made an additional practice track, upgraded the artificial snow machinery, prepared an ambulance helicopter pad, and purchased the necessary competition equipment.

Following the universiade, the Bobrovy Log Fun Park will not be brought under the public ownership. Its maintenance and further use will continue to be financed by Nornickel, adding to its long history of creating and managing multifunctional and specialised sports complexes. The new athletic training facility is already being used for basketball and futsal games and competitions.

To top it off, we did extensive work promoting the 2019 Winter Universiade in the Russian and overseas media.

With information support from the Euronews channel, we implemented the cross-cultural programme FOLLOW UP SIBERIA. Winners of an online creativity contest were given a unique opportunity to visit the cities of Siberia and the 2019 Winter Universiade and tell the world about the region. People from 53 countries joined the online contest during the project, with 33 photographers and travel bloggers from 19 countries taking a tour across Siberia.

Nornickel Futsal Cup — New Hopes

For the second year running, we organised Nornickel Cup — New Hopes, an inter-regional tournament that brought together youth teams from the Krasnoyarsk and Trans-Baikal Territories and the Murmansk Region. The winners received cups and diplomas, while the rest got memorable souvenirs.

International University Sports Federation

We supported the International University Sports Federation (FISU) that manages university games, thus sponsoring the international university sports movement. In September 2019, we helped organise the now traditional FISU Volunteer Leaders Academy international forum, which brought together leaders of the volunteer movement from 80 countries, representatives of sports delegations and university sports officials. The forum was held to facilitate communication between volunteers and national university sports federations, and share knowledge and experience in organising large international sports events such as the 2019 Winter Universiade in Krasnoyarsk.

Russian Olympic Committee

As a partner of the Russian Olympic Committee and the Russian Olympic team, we support youth and high performance sports, including by allocating a total of over RUB 1 bn for the implementation of Olympic educational programmes developed by the Russian International Olympic University.

Ice Hockey Federation of Russia

Under our partnership agreement with the Ice Hockey Federation of Russia, we support the development of the Red Machine national programme for comprehensive hockey training and coaching of the Russian national hockey teams for the 24th Olympic Games to be held in Beijing (China) in 2022. Another important dimension of this cooperation is the promotion of social and sports programmes in the cities across the Company’s regions of operation.

CSKA professional basketball club

We continue to provide support to CSKA, Russia’s most successful and well-known basketball club. In 2019, CSKA came out as a winner in the VTB United League and for the fourth time triumphed in the EuroLeague's Final Four, the most prestigious competition on the continent.

All Russian Federation of Dance Sport and Acrobatic Rock'n'Roll

In 2019, we supported the All Russian Federation of Dance Sport and Acrobatic Rock'n'Roll in developing and promoting these sports. As part of the partnership, we helped grow the corporate acrobatic rock’n’roll club in Norilsk that continues to shine in the nationwide and regional competitions.


Rosgonki and Sochi Autodrom

In 2019, we continued our partnership with Rosgonki and Sochi Autodrom to support and promote motor racing in Russia. Rosgonki is an autonomous non-profit organisation and an official organiser of the prestigious Formula One circuit race in Russia.



Support for cultural projects and initiatives

The social and cultural projects implemented across our footprint help acquaint the Company’s employees, their families and local residents with the Russian cultural agenda, narrowing the gap between their quality of life and that of the people from big cities in the “mainland”. The Company rolls out its partnership programmes in cooperation with the Norilsk Development Agency and the Second School Centre, as well as through sponsorship projects.

While playing a key role in corporate events and competitions attracting tens of thousands of employees and their families each year, the Company also supports prominent all-Russian cultural projects. In 2019, such projects included:

  • Follow up Siberia!, an international cross-cultural initiative in support of the 29th International Winter Universiade in 2019, and its sequel — FusioNNow;
  • Living Classics young readers competition;
  • Golden Mask festival, the main annual theatrical event in Russia where Nornickel acted as a sponsor;
  • 4th Taburetka International Literature Festival (Monchegorsk);
  • Media School in the Polar region, an event helping schoolchildren from across our regions of operation acquire new knowledge and skills and prepare for creative competitions and university entrance exams;
  • Robonickel robotics school;
  • a large-scale cultural and historical project titled "Conquering of the North: a Millennium of Success", which was held across Russian northern territories with inputs from the leading historians and local museums;
  • launch of Nornickel’s play space in the Kidzania educational theme park where children can try out more than 100 professions.

In addition to local museums near our production sites, we support federal museums, such as the Moscow Multimedia Art Museum, and hold our own exhibitions. In 2019, the All-Russian Decorative Art Museum hosted the "Taimyr.Genius Loci" exhibition, which enjoyed remarkable success.

Follow Up Siberia! won the Eventiada IPRA Golden World Awards and received a prize in the "Projects from Russia" category at European Excellence Awards 2019, one of the leading international awards for PR and communications.

Assessment of social programmes

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We have a comprehensive assessment system for social programmes and projects in place. The key criterion used to select social projects for implementation is their social impact, i.e. effects they have on various aspects of life and society. The social impact is assessed throughout the life cycle of the programme or project implemented and upon their completion.

Some of the principal assessment tools are target audience surveys and polls that provide information on stakeholder opinions, for example:

  • assessment of social climate in teams through designated meetings on social and labour issues;
  • annual employee engagement surveys;
  • annual polls among social programme participants (health resort treatment, children’s vacation, corporate gifts programmes, cultural, entertainment and sports events).

Assessment of public-private partnership projects

Project/agreement life cycle stages

Strategy

Plan

Implementation

Follow-up

Social impact

Efficiency for the Company

Top management involvement in impact assessment

Review by Board of Directors and Management Board

Review by Management Board’s Budget Committee

Annual reporting

Report to Management Board on implementation and impact

Assessment of regional-level impact

Assessment of project-level impact

Integration in KPIs



In addition, we assess actual performance indicators vs targets set out in the programme specifications or social and economic cooperation agreements. This applies to the regular efficiency and performance assessment of:

  • My Home/Our Home and Corporate Subsidised Loan housing programmes;
  • World of New Opportunities charitable programme;
  • social projects entitled to the Company's grants (both at the financing decision stage and during the implementation).

We also produce a monthly report on the social climate in the regions of operations and participate in competitions to have our initiatives independently assessed and publicly recognised.

Public-private partnerships are assessed at different management levels to support optimal sustainability decisions in the regions where the Company operates.

Transport accessibility

With our reliable state-of-the-art transport infrastructure, we are capable of meeting any freight logistics challenges and ensures continuity and sustainability of operations and well-being of local communities./p>

Our dry cargo fleet provides year-round freight shipping services between Dudinka,Murmansk, Arkhangelsk, Rotterdam, and Hamburg sea ports. For seven months a year, we transport the bulk of socially important cargoes for the Norilsk Industrial District. In 2019, dry cargo transported by our fleet amounted to 1.5 mt, up 7% year-on-year.

The Yenisey tanker is used to carry gas condensate, a by-product of gas extraction at the Pelyatkinskoye Field developed by Nornickel, to European ports and other destinations. This way we help reduce pollution from these by-products and improve local environment.

The Company and other companies of the Group handle cargo in the ports of Dudinka, Murmansk, Lesosibirsk and Krasnoyarsk.

Dudinka Port (Polar Transport Division) is the world’s only port flooded every year during spring high water and accessible by both sea and river vessels.

In 2019, its cargo turnover totalled 3.4 mt, including more than 0.35 kt of socially important shipments.

Bystrinsky Transport Division is responsible for the operation and maintenance of the 227 km Naryn (Borzya) — Gazimursky Zavod railway line (Trans-Baikal Territory).

YRSC transports socially important cargoes to destinations across the Krasnoyarsk Territory. During the short period of spring floods, it delivers fuels and lubricants, food and other goods to locations with limited transport accessibility on the Podkamennaya and Nizhnyaya Tunguska rivers and in other areas, including Dikson, Russia’s northernmost settlement. The shipping company operates its own search and rescue fleet and takes part in emergency response missions on internal water routes of the Yenisey Basin.

Murmansk Transport Division is responsible for local shipments in the lower reaches of Yenisey, to the north of Dudinka Port. Dudinka Port receives foods and delivers socially important cargoes for local residents, including indigenous peoples of the North, ships cargoes for the EMERCOM and transports residents of remote coastal areas.

Destinations covered by NordStar Airlines include more than 30 Russian and CIS cities. With passenger traffic in excess of 1 million people per year, NordStar operates year-round direct flights from Norilsk to over 10 destinations in Russia and annually reaffirms its status of a major domestic air carrier. In 2019, NordStar carried 1.3 million passengers. It offers regular and charter flights and transports passengers to interregional budget subsidised destinations, with tickets sold at reduced tariffs.

Norilsk Avia is the only air operator capable of responding to both industrial and social emergencies in the region (Norilsk Industrial District and Taimyrsky Dolgano-Nenetsky Municipal District). The Company meets regional demand for passenger and commercial traffic, including emergency ambulance flights as part of search and rescue operations within a range of up to 280 km from Norilsk Airport. According to regulations, emergency flights are a mandatory condition for all air transportation services in the region, including long-haul flights.

In 2018, Norilsk (Alykel) Airport saw the upgrade of its runway finally completed during the third construction season. In 2019, we helped the airport build a patrol road, fencing, engineering infrastructure and communication networks as part of the public-private partnership formalised in the Memorandum of Intent between MMC Norilsk Nickel and the Federal Air Transport Agency. Concrete works related to the apron renovation were 95% complete as at the end of the reporting period.