Contribution to the regional development
Spending on social programs, charity and social infrastructure increased to RUB 46.8 bn (+33% y-o-y). The company has developed and approved a Comprehensive Support Programme for Indigenous Peoples of the North until 2024 for a total cost over RUB 2 bn
Key events and facts
Nornickel became become Russia’s No. 1 industrial company by COVID-19 spending. The Company's management approved the allocation of RUB 20 bn for this purpose, of which almost RUB 12 bn were allocated in 2020.
|Area — 2,366,800 sq km||Population — 2,857,567 people|
|Mineral resources||Industry||Nornickel’s performance
in the Krasnoyarsk Territory:
Key areas of cooperation with the Krasnoyarsk Territory
|Area — 144,900 sq km||Population — 733,158 people|
|Mineral resources||Economic||Nornickel’s performance in the Murmansk Region|
Key areas of cooperation with the Murmansk Region
|Area — 431,900 sq km||Population — 1,059,700 people|
|Mineral resources||Industry||Nornickel’s performance in the Trans-Baikal Territory|
Key areas of cooperation with the Trans-Baikal Territory
Key social and environmental projects
Spending on social, charitable and social infrastructure programmes*, RUB mln
The Company's contribution to the development of local communities
Nornickel is one of the major employers and taxpayers in Russia* . On top of that, the Company makes a significant contribution to the social and economic development of local communities by implementing a range of social programmes and initiatives aimed at facilitating sustainable improvements.
The Group’s key areas 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.
|THE GROUP'S OPERATIONS AS A BACKBONE OF LOCAL ECONOMIES|
CONTRIBUTION TO ECONOMIC DEVELOPMENT
IMPROVING THE LIVING STANDARDS FOR LOCAL COMMUNITIES:
Nornickel’s efforts to combat COVID-19.
Support for local communities
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.
In 2020, Forbes ranked Nornickel as Russia’s No.1 industrial company by COVID-19 total spending.
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.
Most entrepreneurs were forced to suspend activities during the pandemic and faced financial losses,» «As the Company feels responsible for the situation in the regions of operations, we decided to support entrepreneurs with personal protective equipment. It will facilitate safe trade and ensure that essential services are provided to local people.
>Over RUB 20 bn has been allocated by Nornickel to fight COVID-19 and maintain social stability across its footprint*:
- over 372,000 COVID-19 test kits
- 150,000 express antibody test kits
- 15 mobile labs
- 12 stationary labs
- 7 ambulance cars
- about 400 thermal imaging systems
- 412 ventilators
- personal protective equipment, including more than 10 mln masks
The Company is also implementing a number of initiatives to support small- and medium-sized businesses across its geographies:
- social entrepreneurs have been given a payment holiday – they have received Nornickel’s interestfree loans;
- SMEs were offered RUB 61 mln in freight delivery discounts, while 27 non-profit organisations received utility payment subsidies;
- a further RUB 100 mln was spent to provide local businesses with personal protective equipment, all in addition to food packages.
The total amount allocated by the Company to support small and medium-sized businesses across its geographies was RUB 325.7 mln.
The Company also supplied UV germicidal irradiation devices and sanitiser dispensers to pre-school and supplementary education institutions and purchased 12,000 PCR test kits for everyone arriving at Norilsk's Alykel Airport. Additionally, the Norilsk State Industrial Institute received 100,000 medical masks, together with infrared thermometers, and UV germicidal irradiation devices for protection and disinfection.
With many public sector employees, Nornickel personnel, and small and medium-sized businesses working remotely, and given that the schooling process has now gone online, Edinstvo (a subsidiary of Nornickel operating fibre optic communication line in the Norilsk Industrial District) has expanded the bandwidth of digital channels by 44–45% free of charge. This provided all users of mobile networks in the Norilsk Industrial District with stable and reliable communication channels, guaranteed connection and higher data transfer speed.
Initiatives as part of the World of New Opportunities charitable programme have been updated and revised given the circumstances. The schedule of activities implemented as part of our grantees’ social projects has been adjusted, with some of them going online and large-scale events moved to a later date until social and epidemiological conditions improve.
During the lockdown, the Podsolnukh store chain in Norilsk established a free home delivery service for local residents. Participants of the Plant of Goodness corporate programme were quick to join the initiative to help assemble orders on time and in full.
Volunteers had to collect the food basket against the customer’s shopping list. Collected orders went through the checkout counter and were delivered by courier to the homes of Norilsk residents together with the till slips.
All volunteers complied with all safety requirements: they were equipped with gloves, medical masks and disinfectants.
Tax and non-tax payments include all taxes paid, net of VAT, as well as insurance payments and customs duties. Changes in the tax and non-tax payments for 2020 were caused by reduced income taxes resulting from a lower taxable base.
Tax and non-tax payments to local, regional and federal budgets, RUB bn.*
|Total tax and non-tax payments||92.1||102.0||120.3||198.3||176.0|
|Krasnoyarsk Territory consolidated budget||41.6||47.8||55.9||104.2||85.1|
|Murmansk Region budget||7.8||8.2||10.6||19.9||18.2|
|Trans-Baikal Territory budget*||—||0.9||1.2||3.2||2.6|
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||2019||2020||2020/2019, Δ|
|Taymyrsky Dolgano-Nenetsky Municipal District||0.8%||1.2%||0.4 п.п.|
|Krasnoyarsk Territory||0.8%||3.5%||2.7 п.п.|
|Murmansk Region||1.7%||2.7%||1.0 п.п.|
As part of its social and economic partnership agreements, Nornickel has been cultivating cooperation with the companies across the regions of its operations. 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
|Krasnoyarsk Territory||Murmansk Region||Krasnoyarsk Territory||Murmansk Region||Krasnoyarsk Territory||Murmansk Region|
|Procurement tenders for goods and services held by the Company||1,516||673||1,863||501||1,905||460|
|Locally awarded procurements as a share of tenders held by the Company, %||57.7||49.5||59.8||41.7||50||39|
|The Group’s spending on local procurements, RUB mln||12.5||1.8||15.6||1.7||22.3||1.6|
Nornickel is actively involved in the development and renovation of social infrastructure, looking to create accessible and comfortable urban 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 200 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 210 mln in 2020.
Key social infrastructure development projects in 2020
|Culture and education||
Improving the well-being of local communities
One of Nornickel’s objectives is to maintain favourable social climate and a comfortable living environment across its footprint providing the Company's employees and their family members with broader opportunities for their creative pursuits and selffulfilment.
To achieve this objective, the Company adopted a Local Community Relations Policy defining the main approaches to community relations and regional development efforts.
In 2020, Nornickel's key programmes and initiatives aimed at improving the well-being of local communities included:
- the World of New Opportunities charitable programme;
- the Plant of Goodness corporate volunteering programme;
- the Our Home and My Home housing programmes;
- mass sporting events;
- the long-term target programme to relocate people living in Norilsk and Dudinka (Krasnoyarsk Territory) to the Russian regions with favourable climate conditions in 2011–2020;
- the long-term target programme to upgrade and develop social and engineering infrastructure and housing in Norilsk and the Taimyrsky DolganoNenetsky Municipal District in 2011–2020.
World of New Opportunities charitable programme
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.
Due to global challenges and the pandemic, up to 90% of the charity events and projects in 2020 were held online or "phygitally"*
The Company and its stakeholders leveraged special online tools, including the World of New Opportunities mobile app and an online platform for placing Socially Responsible Initiatives Competition bids. These tools allow 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.
Thanks to flexible decision-making and regular monitoring of progress and feedback from the stakeholders, we were able to stay focused on the values and priorities of the World of New Opportunities programme and achieve our performance targets.
Key dimensions of the World of New Opportunities programme in 2020:
|Dimension||Programmes and projects|
We Are the City! social technologies forum
In February 2020, Norilsk and Zapolyarny hosted the We Are the City! social technologies forum, which brought together locals, officials, businesses and journalists and attracted more than 2,000 residents. Its main theme was “People. Ideas. Places”. The participants, together with international and Russian experts, assessed the urban environment and technologies for reinventing and rethinking public spaces. The forum's closing ceremony featured the screening of Caring, a documentary about Nornickel's volunteers, followed by a discussion with the audience. The film had won Silver Dolphin at the international Cannes Corporate Media & TV Awards and an Honourable Mention at the Los Angeles Film Awards.
Socially Responsible Initiatives Competition
To support public initiatives seeking to lay fertile ground for sustainable development of local communities, the Company stages annual Socially Responsible Initiatives Competition for non-profit organisations. In 2019–2020, 114 winner projects of the previous years were implemented.
In December 2020, the Company contributed RUB 154 mln to support 109 out of 422 social projects proposed for 2020–2021. The winning initiatives cover vital areas of public life:
- adaptive training for kids with disabilities;
- digital literacy training for seniors;
- activities in Norilsk celebrating the anniversary of the city's first building;
- performances in museums;
- scientific collaboration between schoolchildren and university professors;
- shoe making workshops for traditional hunting footwear made from processed elk skin* ;
- robotics tournaments;
- a digital tutorial and dictionary for learning the Nenets language, and more
.In 2020, the Company's Socially Responsible Initiatives Competition won the 1st prize at the Leaders of Corporate Charity awards in the Best Programme Fostering Sustainability with Grant Competitions (Best Grant Competition) category.
World of Taimyr project competition
In December 2020, Nornickel announced the launch of its new World of Taimyr project competition aimed at supporting local initiatives and promoting sustainable development of northern territories historically inhabited by indigenous minorities. The competition welcomes non-profit organisations run by local indigenous minorities, tribal communities, and government and municipal agencies registered and operating on the Taimyr Peninsula. According to the competition regulations, grants for the winning projects can amount up to RUB 6.5 mln.
The competition covers different areas of life of Taimyr’s indigenous peoples:
- preserving traditional activities;
- creating opportunities for online education;
- preserving and reviving cultural heritage;
- identifying and supporting gifted children;
- improving and refurbishing public spaces;
- introducing alternative energy sources and fuels;
- exchanging positive experience and promoting the best cultural practices to empower the communities of indigenous peoples living in the Arctic.
Workshop of Urban Activities
In 2020, the Workshop of Urban Activities continued to teach committed and social-minded individuals how to organise large city-wide events. The project included online and offline training courses held in Monchegorsk, Nickel and Norilsk.
In Norilsk, the project was implemented jointly with the Norilsk Development Agency under the Academy of Creative Industries brand. The data accumulated online laid the foundation for a solid educational product, with videos posted on the Agency's YouTube channel.
Leveraging the unique geographic and cultural profile of their home region, project participants from Nickel developed a concept for INDUSTRY Art Festival, the first Arctic industrial festival, which is scheduled to take place in the summer of 2021.
School Break educational project
In 2020, the Company continued to implement the School Break educational project aimed at facilitating communication between children, their parents, and teachers in a joint effort to improve the education process.
Over the year, 70 teachers received online and in-person training, 8 schools adopted new eduction technologies and set up change management teams, and more than 700 schoolchildren took part in the programme and joined the Master of Change online marathon.
The project won the 1st prize at the nation-wide Graduate Awards 2020 for Best Schoolchildren Engagement Programme and the 3rd prize at the Leaders of Corporate Charity awards for Best Educational Programme.
School of Urban Competencies
School of Urban Competencies is a comprehensive programme aimed at selecting and motivating schoolchildren and engaging them in project-based learning and activities to foster a better future for single-industry towns. The programme consists of a wide range of events, including orientation seminars, training courses, a field school for team leaders, as well as assistance in preparing bids for the Socially Responsible Initiatives Competition.
In 2020, the programme expanded its reliance on online training capabilities, including the Key Social Competencies of 2030 and the School as a Competence Development Centre online courses. The traditional field academy of project management was transformed into the online Sails 2020 regatta featuring six nominations and four modular blocks, and welcoming 150 young people from 15 project teams and three regions, as well as 10 online volunteers. In 2021, the Company plans to engage parents and younger schoolchildren in the programme.
IMAKE engineering marathon
In 2020, IMAKE marathon, aimed at motivating school students to get into project work and pursue inventions, was held online. 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 2020, it draw more than 1,300 young inventors, with the finalists' defence taking place in April online. In the summer of 2020, two 2-week sessions of an online science IMAKE Camp were held.
In September 2020, a new season of the engineering marathon was launched, with 150 school students ultimately selected to become the new IMAKE legionnaires. The project's ligaimake.ru platform was completely updated for the new 2020 season, with an idea and invention marketplace added. Young inventors were given an opportunity to present their ideas at the Rally of Social Entrepreneurs from the North.
Training in Social Entrepreneurship
Nornickel continues to run a Social Entrepreneurship training course that takes the participants all the way from the development of a unique business plan to its presentation at an investment session. In 2020, the project's classes and home assignments were moved online, with the students receiving assistance from mentors and entrepreneur experts.
Social Business Projects Accelerator
In 2020, Nornickel launched its Social Business Projects Accelerator aimed at boosting social project development and enhancing social entrepreneurs' project management skills. As part of its training and acceleration programme, Nornickel granted RUB 17.5 mln in two-year interest-free loans to support five social business projects seeking to improve the quality of life in Norilsk, Zapolyarny and Niсkel:
- Aurora family centre for mothers with toddlers;
- Folga media school – digital training courses for small businesses, non-profit organisations, schoolchildren and students;
- Robo Art robotic and software development school;
- Vascular department at the Perfection aesthetic medicine centre;
- New children's futsal court and a dance studio at the OLYMP martial arts and fitness centre.
Rally of Social Entrepreneurs from the North
December 2020 saw another rally of social entrepreneurs, with more than 200 registered participants from 33 Russian cities. The rally's theme was centred around business opportunities emerging in times of crisis. Experts got together with social entrepreneurs to exchange relevant experience and best practices. The event featured the premiere of Against the Odds of Lockdowns, the first three-part film about the entrepreneurs from the north, as well as a video tour of Norilsk.
Nornickel contributes to creating infrastructure that would enable accelerated development of regions across its footprint through cooperation with regional development institutions, including Norilsk Development Agency, Second School Centre for community initiatives in the Pechengsky District, and Monchegorsk Development Agency established in September 2020.
Their mission is to lay the foundation for accelerated development of the local service-based economy as a way of improving living standards and promoting local products and services on external markets.
Norilsk Development Agency
In 2020, IT-Cube was launched in Norilsk to become the region's first digital education centre for children. Norilsk Development Agency proposed submitting the project's bid in the competition run by the Russian Ministry of Education to provide subsidies for the launch of digital education centres for children. The idea was supported by the city administration and the government of the Krasnoyarsk Territory, with the bidding documents prepared and submitted to the federal ministry.
As a result of a bidding process, the Krasnoyarsk Territory received subsidies from the federal budget to create an innovative educational platform in Norilsk in 2020. The project financing available for 2020–2022 totals RUB 131 bn. The centre provides advanced IT training to more than 400 school students and plans to see over 1,000 children involved in its events and activities.
In the summer of 2020, the agency continued the improvement of the Dolgoye Lake recreation park by installing two wooden pergolas, two illuminated fountains and a sports ground and performing further landscaping and lighting works. Together with the city administration, the agency launched a project to upgrade the city's yards to modern standards with the direct input of Norilsk residents. The project included restoration of curbs, building an outdoor sports ground with a workout area, and adding new benches, art objects, eco-friendly parking, and electric heating stations for car engines.
In March 2020, the agency launched the Business Adaptation project aimed at supporting SMEs amid the spread of COVID-19. As part of the project:
- a hotline for entrepreneurs was set up, which registered and processed more than 2,000 queries;
- the Company provided free-of-charge PPE to local entrepreneurs, with more than 8,500 SME employees receiving masks, gloves and sanitisers;
- an initiative to compensate 50% of freight delivery costs was implemented and used by over 120 entrepreneurs, saving them more than RUB 41 mln;
- free accounting and legal support to SMEs was provided.
The agency also represents the interests of Norilsk's businesses in the Ministry for Development of the Russian Far East and Arctic. In 2020, a joint webinar was held with the ministry, with 15 local entrepreneurs applying to become residents of the Arctic zone. The Ministry supported the Agency’s initiatives to develop general aviation in Taimyr and a programme for subsidizing cargo transportation as part of the investment projects in the Arctic zone.
Norilsk Development Agency's projects in 2020
|Developing the business environment||
|Developing the urban environment||
|Social, cultural, and educational projects||
Arctic tourist cluster
In 2020, the first stage of developing the master plan for the Arctic tourist cluster was finalised. The document aims to foster sustainable local tourism while preserving fragile Arctic nature and making tourism a bigger part of the Krasnoyarsk Territory’s economy.
The Arctic tourist cluster – key results and facts of 2020
- The Arctic Putorana Plateau tourist and recreation cluster ranked among Top 30 most promising territories for environmental tourism at the national eco-cluster competition
- Local Anabar Tour LLC and regional tour companies signed a first-ever agreement to sell tours to Hatanga
- 51 investors signed an agreement to develop the cluster
- Third-party investment to develop the project totalled RUB 4.3 bn
- In 2020, the number of tourists visiting the cluster exceeded 5,000 people (up 4% year-on-year)
- Seven companies from among the cluster members received grants from the Federal Agency for Tourism worth over RUB 17 mln
- Seven new routes were developed
- Eight new hospitality properties were classified
- 38 new guides were registered
In August 2020, a research expedition to Maria Pronchishcheva Bay with the representatives of WWF, the Joint Directorate of Taimyr Nature Reserves and federal experts took place. The expedition’s results are used to develop attractive tourist routes and consider turning abandoned polar stations into guard lodges and visit centres. Apart from that, the expedition established contacts with residents of the remote villages of Syndassko and Popigai as potential tourist destinations and collected information for the further development of the master plan for the Arctic tourist cluster.
Social and cultural events
North gastronomic festival. The pandemic transformed the 2020 festival's format, with people cooking in their kitchens together with the chefs of Norilsk restaurants. The festival’s cooking master classes, posted on Norilsk Development Agency's YouTube channel, racked up almost 1,500 views. About 500 dishes from the festival's menu were delivered by local restaurants to the city's residents, while another 1,500 meals were prepared in five factory canteens of Nornickel.
As part of the Big Argish festival, 14 city restaurants and 7 retail networks treated visitors with dishes from the festival's menu for ten days. An exciting eight-hour cartoon story about a boy called Argish was screened on the facade of the city's theatre. A snow labyrinth (576 sq m of snow passages) and a small ethnic settlement with ice figures symbolising local ethnic groups, ice chum (a traditional local dwelling) and light projections of deer were built in the Dolgoye Lake recreation park. Local residents took to online platforms to revisit their best moments of the festival, watch videos about the most exciting venues of the previous festivals, play and win prizes.
The ARcTic street art gallery in Norilsk received three murals called Balloons, Airship, and Mars Rover. These 3D images were projected at different venues around the city.
In 2020, the nationwide competition for the New Names charitable scholarship was held in Norilsk for the first time, with 15 musicians and 17 artists participating and 4 Norilsk residents ultimately joining the New Names league.
Developing the town of Nickel: Second School Centre
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, which was done in December 2020. 102-10
Together with the 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. The new development strategy includes the establishment of new enterprises based on traditional business models, the launch of a diverse industrial park, the development of a service economy and tourism, and the transformation of the social and cultural environment.
The Second School Centre, created in 2019, became the main operator of social and economic development projects in the Pechengsky District.
In 2020, the centre signed 13 cooperation agreements with partner organisations, including the Murmansk Region authorities, as well as educational, environmental and other public organisations.
Second School Centre's projects in 2020
|Project name||Jobs to be created in 2021|
|Eco campsite in the Pechengsky District||14|
|Trout farm in Ala-Akkajärvi Lake||13|
|Cossacks in the North dairy farm in the Pechengsky District of the Murmansk Region||10|
|BROD bakery and confectionery||21|
|Food trucks for Nickel, Zapolyarny and Pechenga||10|
|Food trucks for military settlements||10|
|Construction of Murmansk Abrasive Plant for producing abrasive materials||10|
|Plastics recycling facility (under SMART ENVIRONMENT franchise)||10|
|Petsamo multifunctional complex||10|
Promoting SME development in the Pechengsky District
In 2020, to support business projects in the Pechengsky District, Nornickel carried out:
- a contest for special-purpose interest-free loans (aimed at boosting local SME development, encouraging investment and creating new jobs);
- a competition of long-term business projects (aimed at unlocking the region's investment potential and attracting new businesses players to spur local economic growth by launching green production capacities and creating new jobs).
11 projects became finalists of the contest for interest-free loans (out of 200 bids submitted), with the total of RUB 212 mln loans granted and 145 new local jobs created. All winning projects are planned to be implemented in 2021.
A project to build a mini plant for the production of grinding balls and long steel (Sirius LLC) won the competition of long-term business projects to be implemented at the soon-to-be-vacant site of the smelting shop in the settlement of Nickel.
Monchegorsk development agency
In September 2020, the successful experience of implementing integrated social and economic development projects in Norilsk, Nickel and Zapolyarny was rolled out to Monchegorsk, where Nornickel and the city's administration partnered to launch Monchegorsk Development Agency. Its main goal is to create favourable conditions and opportunities for sustainable social and economic development of Monchegorsk. The agency’s activities are focused on:
- business and investment;
- social and cultural projects;
The agency hired employees, held meetings with key stakeholders, representatives of the public and the media, and approved an action plan for 2021. In 2021, it intends to focus on developing a master plan and creating branding for Monchegorsk.
Targeted charitable support
The Company continued providing targeted charitable donations to 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 volunteering programme
Nornickel's corporate volunteering programme aims to:
- shape a culture of charitable giving and volunteering across the Company's footprint;
- support employee volunteering initiatives contributing to the social development of local communities and improving the well-being of local residents;
- enhance employee engagement in achieving the Company’s strategic objectives and promote employee participation in the corporate and social activities of our facilities;
- boost commitment to corporate values, proactivity and responsibility among employees, foster communication and emotional skills, and offer each and every employee opportunities to fulfill their personal potential;
- enhance the efficiency of business processes through creating horizontal links between employees and between business units;
- introduce non-financial incentives for corporate volunteers.
Our 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 has been the Plant of Goodness project, which helps 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 most of our footprint, including Norilsk, Monchegorsk, Zapolyarny, Chita and Moscow. Each year, around 2,500 employees, 40,000 local residents and members of non-profit organisations volunteer as part of the Company's 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.
Employees can launch initiatives of their own by proposing a project idea, developing an action plan, drafting a budget, defending their project, and receiving funding from the Company.
Employees are also welcome to take part in a corporate programme of personal donations to support those in need (as a result of a grave disease or a natural, environmental, industrial or other disaster) as well as organisations involved in socially important activities.
In 2017–2020, the Plant of Goodness volunteers:
- implemented 237 initiatives of their own
- took part in the personal donations programme (about 7,000 employees)
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.
Volunteering during the pandemic
The COVID-19 pandemic has become a major challenge which required Nornickel to quickly adapt its corporate volunteering programme to respond to new needs.
Ten volunteers of Bystrinsky GOK, together with the Trans-Baikal regional branch of the Russian Volunteer Union, organised the delivery of essential goods to high-risk population groups, people with limited mobility, and elderly people living alone in Chita and Gazimursky Zavod. The products were purchased with funds allocated by Nornickel. The Company also provided the volunteers with masks, antiseptics, and gloves. Each of the volunteers was trained and certified in helping elderly people in emergencies by completing a training course at the online university for Russian volunteers. Another ten employees working remotely sewed masks for seniors and volunteers from other movements.
In Monchegorsk, the Plant of Goodness participants set up a small reusable masks production. The Company helped procure gauze, and enough volunteers signed up in the Plant of Goodness group chat.
Volunteering support to veterans
On Victory Day, the Plant of Goodness volunteers, taking all precaution to ensure that COVID-19 was not spread, congratulated the veterans of World War II. For two weeks, volunteers performed targeted delivery of gift sets, flowers and badges to the veterans of World War II, including combat veterans, residents of besieged Leningrad, children of war, home front workers, spouses of deceased and disabled veterans. The Company's volunteers congratulated a total of 371 veterans. Corporate volunteers in Norilsk, Monchegorsk and the Pechengsky District also initiated All Neighbours Sing and Songs from the Window campaigns for Victory Day.
Those Who Care change management programme
The programme was created to bring together proactive employees in various roles and from different divisions interested in developing and implementing corporate change initiatives outside their functions and KPIs.
In 2020, the kick-off and orientation sessions were held, with 16 project teams set up at Kola MMC, business profiling games organised (participant profile, competency profile), and the initiative's website and Change Practitioners Club launched. Those Who Care has 347 members from among Nornickel employees.
Support for sports organisations and clubs
Russian Olympic Committee
As a partner of the Russian Olympic Committee and the Russian Olympic team, Nornickel supports youth and high performance sports, among other things, by facilitating the implementation of Olympic educational programmes developed by the Russian International Olympic University.
In 2020, Nornickel sponsored a number of events, including Winter Sports Day 2020, Online Contest #Indoors2020, Olympic Day Run 2020 (#MODNO), the 31st All-Russian Olympic Day, and National Walking Day 2020. In attendance were renowned sports commentators, athletes, and Olympic champions.
As part of the Nornickel-supported Olympic Patrol project, Olympic champions of different years visited Murmansk in 2020 to meet with young athletes and talk about Olympic values, the history of the Olympic movement, their training systems, the most exciting moments in their sporting careers, and the secrets of their success.
CSKA professional basketball club
Nornickel continues to provide support to Russia’s most successful and well-known basketball club. CSKA was among the top four teams before the 2019/20 EuroLeague season was interrupted due to COVID-19, having secured a place in EuroLeague playoff quarterfinals. In the VTB United League, CSKA was second in the standings before the games were stopped, which guaranteed the team a place in the playoffs where Russia’s Champion is determined. Given that the 2020 season was cut short as a result of the pandemic, CSKA remains the reigning EuroLeague and VTB United League champion based on the results of the 2018/19 season.
Norilsk Nickel Futsal Club
Since 2016, the team and administrative personnel of Norilsk Nickel Futsal Club have been based in Norilsk. The Company is the club's general sponsor. The team takes part in the Russian Super League Championship and Russian Futsal Cup. 2020 saw the opening of the Aika sports and recreation centre in Norilsk built with funding from Nornickel. The centre will be the new home for the futsal club.
All Russian Federation of Dance Sport and Acrobatic Rock'n'Roll
In 2020, we continued supporting the All Russian Federation of Dance Sport and Acrobatic Rock'n'Roll, as we have done for years, and acted as the federation’s partner in developing and promoting these sports. The Company sponsored the Russian Dance Sport Championship and the Cup, the Breakdancing Cup, and other events. Nornickel also supports the corporate acrobatic rock’n’roll club in Norilsk.
Ice Hockey Federation of Russia
Since 2018, Nornickel has been sponsoring the Russian Ice Hockey Federation. We have helped the federation to carry out a number of major projects, including the Red Machine national programme for hockey training, the children's Red Machine training camp in Zapolyarny, training workshops for hockey coaches and referees in Norilsk (in person and online), and the unique Bridge between Generations project – a traditional match between hockey legends and the Russian national team. Russian national hockey teams performed strongly at various major international tournaments in 2020. The main national team won two stages of Euro Hockey Tour’s 2020/21 season – the Karjala Cup and the Channel One Cup, the U20 national team took silver at the 2020 World Youth Championship, and the U16 team won the 2020 Winter Youth Olympics in Lausanne.
International University Sports Federation
Nornickel supports the International University Sports Federation (FISU) that manages university games. In September 2020, we helped organise the now traditional FISU Volunteer Leaders Academy international forum, which was held online. The event brought together over 200 people from 120 countries. Upon completion, each forum participant was awarded a FISU Student Ambassadors title. They will promote FISU and its agenda across the student community in their countries helping to develop university sports. As the general partner of the FISU Volunteer Leaders Academy, Nornickel will seek to advance youth culture, foster friendly relations between nations, and educate leaders of tomorrow.
Rosgonki and Sochi Autodrom
Since 2018, we have partnered with Rosgonki and Sochi Autodrom to support and promote motor racing in Russia. Under a sponsorship agreement with Rosgonki, Nornickel provides assistance in organising and holding various sporting events at the Formula One circuit in Sochi.
Assessment of social programmes
The key criterion used to select social projects and programmes for implementation is their social impact, i.e. effects they have on various aspects of life and society. With a comprehensive assessment system in place, the social impact is assessed throughout the life cycle of the programme or project 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).
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 and business development projects of social entrepreneurs receiving interest-free loans from Nornickel (both at the financing decision stage and during the implementation)
We also produce a monthly report on the social climate in the regions of operation and participate in various competitions to have our projects and programmes independently assessed and publicly recognised. The table below shows the key project assessment criteria depending on the stage.
Assessment of public-private partnership projects
|Project/agreement life cycle stages|
|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||★||★|
Interaction with indigenous northern minorities
Nornickel respects the rights, lands, traditional lifestyles, economic activities, historical heritage and interests of indigenous peoples inhabiting the Company’s regions of operation, and fulfils its commitments to further strengthen and develop the neighbourly relations that benefit the both parties.
There are currently over 10,000 representatives of indigenous northern minorities living on the Taimyr Peninsula, including Nenets, Dolgans, Nganasans, Evenks, and Enets.
Over the past decades, the Company has been implementing charitable and social projects to improve living conditions of the Taimyr indigenous peoples in recognition of their rights to traditional lifestyles and the need to secure decent living standards and quality modern services in these communities.
Key objectives and targets for interacting with indigenous northern minorities and progress in 2020
|Key objectives and targets||Progress in 2020|
|No violations, of the rights of indigenous northern minorities or land disputes with indigenous communities 411-1||The Company and the Association of Indigenous Peoples of the North, Siberia and Far East of the Russian Federation supported an ethnological expert review to assess environmental damage. Based on the methodology of the Russian Ministry of Economic Development, the Company determined the amount to be paid to the indigenous northern minorities as compensation for the damage to natural resources in their communities located in the Pyasina River basin. There were no other violations of the rights of indigenous northern minorities|
|No complaints related to violations of the rights of indigenous peoples of the North||★|
|Independent assessment of damage to indigenous northern minorities as a result of industrial accidents in 2020||★|
|Compensations for natural resources to indigenous northern minorities in the amount of RUB 175 mln||RUB 94 mln has been paid, with the remaining amount due in 2021|
|Over RUB 2 bn in investments to support indigenous northern minorities in 2020–2024||With the agreement signed, RUB 18 mln was allocated in 2020 towards the implementation of the Comprehensive Support Programme|
Respecting the interests of indigenous northern minorities in production and investment activities
PJSC MMC Norilsk Nickel’s metals and mining businesses are located on the industrial land within the Norilsk Municipality; they share an administrative boundary with the Taimyrsky Dolgano-Nenetsky Municipal District (without being part thereof), which includes the territories historically populated and managed by indigenous northern minorities. New projects in the Norilsk Industrial District do not provide for any activity on the lands inhabited by indigenous northern minorities. A total of ten business units are located on the land that is adjacent to the territories historically populated and managed by indigenous northern minorities. Those business units are Polar Division, Polar Transport Division, MMC Norilsk Nickel’ branch Norilskenergo, Yenisey River Shipping Company, Norilskgeologiya, NTEC, Norilskgazprom, Norilsktransgaz, Taimyr Fuel Company, and Norilsk Avia. MM5
The interests of indigenous northern minorities are accounted for at every stage of the production cycle and investment projects through public discussions and partner interaction procedures.
The Company maintains partner relations with indigenous northern minorities through cooperation with federal authorities and non-profit organisations Procedure for public discussions representing indigenous northern minorities’ interests, indigenous northern minority commissions organised by local authorities, personal meetings and work with community heads, regular contacts during the development and implementation of social projects competing for the Company’s grants
In addition, Polar Division has established a unit based in Dudinka and responsible for interaction with indigenous northern minorities.
The approach to interaction with indigenous northern minorities enables timely identification of, and response to, their needs, particularly by implementing projects that are in line with the current international, Russian and local agendas in this field.
Public discussions with stakeholders, including indigenous northern minorities whose interests can be potentially affected, are obligatory by virtue of the Russian law and make part of environmental impact assessments (EIA) for each new investment project. The purpose of the EIA is to prevent or mitigate the impact of project activities on the environment and resulting social, economic and other repercussions.
EIA materials, including incoming comments and proposals, are included in the documents submitted for a state environmental review, which is a mandatory procedure in Russia to receive an official approval before a project is launched.
Responsibilities in interacting with indigenous northern minorities
Board of Directors 102-26
Board of Directors’ Audit and Sustainable Development Committee
|Approving and reviewing internal policies on interacting with indigenous northern minorities|
|Federal and Regional Programmes Department||Implementing key projects and programmes related to indigenous northern minorities, including the Comprehensive Support Programme until 2024|
|Sustainable Development Department||Methodological support, training, and development of cross-functional programmes|
|Internal Control Department||Handling complaints and queries received via the Corporate Trust Line|
|Executives and employees||Complying with the requirements of Russian and international laws on the rights of indigenous peoples, adhering to internal policies, and implementing projects and programmes within their respective purview|
It is really a historic moment for me personally and for representatives of the communities. We have been working towards it. Much effort has been made by every party, including the Company, social activists and the local administration.
Comprehensive ethnological expedition
In 2020, Nornickel provided extensive assistance for a large-scale ethnological expedition organised by a group of independent scientists. The main objective was to assess the impact of a diesel fuel spill at HPP-3 on the indigenous population of the Taimyr Peninsula . The expedition was initiated by the Association of Indigenous Peoples of the North, Siberia and Far East of the Russian Federation and launched by the Arctic Development Project Office. The group of scientists developed a unique assessment mechanism that included a field stage (collecting samples, conducting sociological surveys on the potentially affected territories) and an ethnological stage that involved ethnographers and anthropologists. The assessment was the first one of its kind in the modern history of Russia.
The assessment spanned 670 people from five main ethnic groups inhabiting the region (Dolgans, Nenets, Evenks, Enets, and Nganasans), with 100 interviews taken and opinions of the community leaders studied.
In the interviews, the representatives of indigenous minorities had an opportunity to propose preferred compensatory measures in response to the fuel spill, as well as general initiatives to improve their traditional way of life.
Based on the expedition’s results and direct consultations with the representatives of indigenous northern communities, a number of compensatory measures have been defined to form the basis for a Comprehensive Support Programme for Indigenous Peoples of the North until 2024.
Another important outcome of the expert review was the amount of compensation agreed with indigenous northern minorities for the fuel spill (RUB 175 mln to be paid to almost 700 members of indigenous northern communities). In 2020, NTEC paid RUB 94 mln out of the agreed amount. The calculation methodology is based on the provisions of the law that establishes a procedure for assessing the impact of economic activities on traditional lifestyles. It was the first time in Russia the law had been used to determine the compensation for actual damage. The methodology relies on a mathematical model* , that assesses the maximum possible contamination areas and its fish stocks in money terms and distributes the resulting value proportionally between the indigenous people subsisting on the resources in the affected areas. According to the law, indigenous northern minorities bear no burden of proof in this case. The compensation received by a community may be distributed both among its individual members or used to meet community needs.
We have jointly determined new systemic measures to support indigenous peoples living on the Taimyr Penimsula and consolidated them in the form of an agreement. This is a RUB 2 bn programme comprising over 40 initiatives for the next five years. Firstly, it is aimed at stimulating the economic activity of indigenous minorities and facilitating the recovery of renewable resources, which form the basis of their traditional lifestyle and trades. Nornickel has a long history of close cooperation with organisations representing the interests of indigenous communities in the regions of our operation, ensuring transparency in decisionmaking and maximum efficiency in the implementation of joint projects.
Comprehensive Support Programme for Indigenous Peoples of the North
In September 2020, the Company signed a cooperation agreement with three organisations representing the indigenous northern minorities inhabiting the Taimyr Peninsula: the Regional Association of Indigenous Peoples of the Krasnoyarsk Territory, the Association of Indigenous Minorities of Taimyr, and the Association of Indigenous Peoples of the North, Siberia, and the Far East of the Russian Federation. The agreement established a comprehensive support programme to aid the development of indigenous northern minorities on the Taimyr Peninsula for a period until 2024.
Based on the proposals received during the ethnological expert review, a set of priority measures was defined, including seasonal jobs in tourism, reindeer herding, fishing and hunting. The Company has made plans to construct fish and reindeer meat processing facilities, purchase refrigeration chambers, build ethnic shops to manufacture fur apparel, subsidise helicopter flights, organise training in professions required by Norilsk Nickel, publish learning aids in native languages, and take many other specific and integrated measures.
of indigenous northern minorities are covered by the Comprehensive Support Programme
is the total cost of the Programme’s initiatives
Key initiatives of the Comprehensive Support Programme until 2024
|Projects in support of traditional activities||
|Educational and cultural projects||
|Sporting and infrastructural projects||
|Development and support projects||
Key projects in support of indigenous northern minorities in 2020
In October 2020, the Company sent experts to remote indigenous settlements in the North to help the locals prepare applications to the World of New Opportunities competition aimed at supporting socially important initiatives. Thanks to the training and rehearsals that were organised for these applications, indigenous community organisations were able to win the 2020 competition. Following the expedition organised as part of the Comprehensive Support Programme, Nornickel announced the start of the World of Taimyr competition of projects tailored to the specifics and needs of indigenous northern communities.
The aim of the World of Taimyr competition is to support local initiatives and ensure sustainable development of the northern territories historically inhabited by indigenous minorities. The competition has four categories covering different areas of life of Taimyr’s indigenous peoples, including traditional economic activities, cultural and linguistic heritage, search for, and development of, gifted children, environment protection, alternative energy sources, etc. Grants for the relevant projects amount up to RUB 6.5 mln.
The Company has historically provided the indigenous northern minorities with medical, transport and communication services, materials and equipment (such as snowmobiles, motor boats, outboard motors, chainsaws, building materials, etc.), fuels, lubricants, and fishing supplies. Educational facilities are being modernised and refurbished. Hospitals and clinics are getting high-tech medical equipment. In case of an emergency, affected indigenous families get free-of-charge aid.
Due to the unfavourable epidemiological situation in 2020, the Company financed schoolchildren work teams in Dudinka and Hatanga. It donated RUB 7.43 mln to purchase workwear, gear, and personal protective equipment for the children and their coaches and pay for their work.
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.
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 2020, dry cargo transported by our fleet amounted to 1.4 mt, down 4% 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 2020, its cargo turnover totalled 3.6 mt.
Bystrinsky Transport Division is responsible for the operation and maintenance of the 227 km Naryn (Borzya) – Gazimursky Zavod railway line (Trans-Baikal Territory).
Yenisey River Shipping Company 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.
In 2020, we completed on schedule the project to reconstruct Norilsk (Alykel) Airport as part of the public-private partnership formalised in the Memorandum of Intent between MMC Norilsk Nickel and the Federal Air Transport Agency. The final phase saw the construction of a patrol road equipped with a video surveillance system, a new reinforced and asphalt concrete pavement for the apron and shoulders, trench drains, and a lighting system. In addition, two new treatment facilities were built to help reduce the airport's environmental impact. Following the reconstruction, the airport meets the applicable international standards, with all flight restrictions currently lifted.
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.
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. Relevant regulations require this as a condition for all air transportation in the region, including long-haul flights.
- Murmansk Terminal
- Arkhangelsk Transport Division
- Arctic fleet
- Dudinka Port
- Norilsk Airport
Krasnoyarsk transport hub
- Yenisey River Shipping Company
- Lesosibirsk Port
- Bystrinsky Transport Division
Our transportation and logistics assets:
- Arc7 Arctic fleet (five dry cargo vessels and one tanker), two port ice-breakers (Dudinka and Avraami Zavenyagin)
- River fleet (627 vessels, including 198 self-propelled vessels and 429 towed vessels)
- Traction and rolling stock: 118 container flatcars, 1 switch locomotive, 1 Yermak electric locomotive (sold in 2020), 1 2M62 diesel locomotive
- Port infrastructure for transshipment of cargo of all types (including dry bulk and heavy lift) from any means of transport, including a site for processing explosives (one of a kind for the Yenisey river)