Strategic approach

Sustainability governance

The Company’s sustainability management is based on a matrix structure, with responsibility for specific ESG aspects split among all Nornickel functions. At the same time, most matters are overseen by the Management Board, Board of Directors, and respective committees.

Sustainability‑related processes are coordinated by the Sustainable Development Department, headed by the Vice President for Investor Relations and Sustainable Development. At the Board level, the Sustainable Development and Climate Change Committee is responsible for overseeing the evolution of ESG practices.

Faced with challenges such as managing a workforce of over 70 thousand in the Arctic, a variety of environmental impacts, and commitments to the state and society to build large‑scale infrastructure projects, Nornickel consistently pursues sustainability‑related initiatives. The Company provides safe living conditions in the Arctic zone, invests in the socio‑economic development of its operating regions and community well‑being, takes steps to prevent environmental and climate risks as well as climate‑related losses while building open and trust‑based relationships with stakeholders and transparent corporate governance.

Sustainability principles underpin the Company’s operations and strategic business development and are outlined in Nornickel’s internal documents.

In 2023, the Board of Directors adopted the Socially Sustainable Development Strategy to drive technological and social progress through technology and product innovation. These innovations, in particular, will ensure safe, just, and supportive work environment and preserve and restore the environment. The Company is committed to providing decent pay, comfortable living conditions, and self‑fulfilment opportunities, seeing these factors among the most important drivers of its sustainable development. Nornickel maintains partner relations with the indigenous peoples of the Taimyr and Kola Peninsulas and takes its responsibility for preserving the culture and traditions of the Russian North communities very seriously.

In early 2024, the Board of Directors approved the updated Environmental and Climate Change Strategy.

The Company maintains its status as an active participant in Russian and international events on the sustainable development agenda. In 2023, Nornickel speakers took part in the 28th UN Climate Change Conference (COP28), the forum of the UN Economic Commission for Europe in Geneva on sustainable development, human rights, and climate change; the Company also participated in the International Forum on Sustainable Mineral Supply Chains (Chengdu, China).

In the reporting year, Krasnoyarsk hosted the third Siberian Perspective summit organised by Nornickel and supported by the National Council on Corporate Volunteering, the Russian Managers Association, and the Protected Areas Embassy charity foundation. The summit was centred around responsible consumption and supply chains and gathered together more than 200 representatives of businesses and government, experts, and volunteers, including the Company’s suppliers, to discuss the challenges in these areas, as well as the relevant roles and relationships between businesses and consumers.

In 2023, the Company published its 2022 Sustainability Report and specialised reports on human rights, responsible supply chain, and climate change.

In 2024, Nornickel will continue measures to harmonize activities based on leading international standards and guidelines, including:

• further integrating ESG principles into strategic planning, risk management, and reporting procedures
• working towards closer alignment with the IRMA Standard for Responsible Mining
• completing the self‑evaluation process in line with the Global Industry Standard on Tailings Management (GISTM)
• cascading adopted policies to subsidiaries for implementation
• setting additional ESG‑related KPIs and evaluating performance
• establishing a human rights due diligence system
• expanding the scope of ESG supplier assessment.