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