In 2021, nornickelPublic Joint-Stock Company “Mining and Metallurgical Company “Norilsk Nickel” and its subsidiariesAccess the glossarycontinued to implement its comprehensive environmental program. Following the shutdown of its smelting operations, the Kola Division’s sulfur dioxide emissions decreased by 78% year-on-year in 2021, or 90% compared to the base year 2015. In the Norilsk Division, the sulfur dioxide emissions decreased by 14% in 2021. Construction of the Sulfur project in Norilsk is in its active phase, with commissioning expected to start in the coming months.

In June 2021, the Board of Directors approved the 2031 Environment and Climate Change Strategy, which marked an important milestone in the company’s efforts to systematically advance its sustainability agenda internally. This strategy covers six main impact areas, including water, soil, air and biodiversity, with a set of concrete targets set in each, aimed at improving environmental performance.

The strategy also included climate change initiatives and targets. In February 2022, these targets were set more ambitiously, such as a 25% reduction in scope 1+2 GHG emissions to 7.7 mtpy by 2028 (taking into account growth targets for production and the Sulfur 2.0 Program), and a 37% reduction in carbon intensity. (СО₂ per ton of Ni equivalent) up to 5.0 tons.

The current carbon footprint of refined nickel produced by the Company is 8.1 t СО₂ equivalent per tonne[1]which is among the lowest among global mining peers.

Supporting the global climate change agenda and focusing on customer demand, Nornickel began producing carbon-neutral nickel last year. The first batch of 5 kt nickel cathodes was manufactured by the BandPublic Joint-Stock Company “Mining and Metallurgical Company “Norilsk Nickel” and its subsidiariesAccess the glossaryof Kola division.

Global climate change requires more effective controls and monitoring of relevant risks, especially with respect to rising temperatures in the Arctic. In 2021, Nornickel began deploying a permafrost-based foundation system in Norilsk, covering operational and residential buildings and structures. This system is designed to provide real-time monitoring of permafrost-based foundations using various sensors and detectors, identify geocryological hazards and develop adequate risk mitigation initiatives.

Nornickel remained one of the leaders of the Russian metals and mining industry in terms of social spending. In 2021, the company’s social investments, including spending on social infrastructure, charity and sponsorship, amounted to 75.9 billion rubles[2]representing approximately 6% of the company’s turnover.

Nornickel persisted in fostering closer collaboration with the Indigenous peoples of the North. In 2021, Nornickel has multiplied its expenditure by 5 to reach more than 420 million rubles on projects supporting indigenous communities in the North.

Last year, Nornickel was the first company in the history of the Russian mining industry to launch a Free, Prior and Informed Consent (FPIC) procedure, allowing the indigenous peoples of Taimyr to choose a resettlement option for a tundra village of Tukhard. This process ensures the protection of Indigenous rights to independently set political, social, economic and cultural priorities. The procedure was successfully completed in 2022.

The Company maintains a high level of social support for its employees. The average monthly salary remains among the highest in the Russian mining industry. During the coronavirus pandemic, Nornickel managed to avoid any layoffs, while today she is actively recruiting for her ambitious new projects.

At the same time, we regret to see an increase in the work injury rate in 2021. The Lost Time Injury Frequency Rate (LTIFR) increased to 0.38 although it remained below average of the global mining industry.

All fatal incidents that occurred in 2021 have been reported to the Board of Directors and thoroughly investigated to develop mitigation initiatives, which should help avoid similar cases in the future. Nornickel management considers strong health and safety performance to be its top priority and reiterates the goal of zero work-related fatalities. Various industrial safety prevention programs are being rolled out. So far, in the first five months of 2022, the Company has not recorded any fatalities.

Nornickel continues to support the social, cultural and economic development of its operating regions. In particular, the city of Norilsk will see the realization of a comprehensive social and economic development plan designed to improve the quality of life in the city. Total financing of 120 billion rubles has been budgeted until 2035, of which Nornickel will provide 81.3 billion rubles. The plan has been approved by the Russian government and envisages cooperation between the company, the Ministry of Russian Far East and Arctic Development, the Krasnoyarsk region and the city of Norilsk.

As part of its efforts to improve local healthcare, Nornickel launched the Corporate Healthcare program. In December 2021, the first private medical center for company employees was opened in Norilsk.

Vladimir Potanin, Chairman of Nornickel, commented on the company’s sustainability performance in 2021:

“Nornickel’s strategic objectives are inseparable from the sustainability program. In the face of new global challenges, this subject becomes even more relevant for our company. Our main priorities are focused on improving our efficiency in terms of resources and energy , reducing environmental impact and cleaning up legacy pollution, managing climate change risks, improving quality of life in operating regions and maintaining a reputation as one of the best employers in Russian industry.

For us, sustainability is a business philosophy, a management mindset, a corporate culture and a platform to create long-term value for our stakeholders.”

More details on Nornickel’s sustainability performance can be found in the 2021 Sustainability Report.