Nornickel Gmk · RUS:GMKN
Nornickel Gmk — Norilsk Nickel — ESG Presentation (June 2022)
70 slides from Nornickel Gmk's sustainability presentation, June 2022
Slide 1: Norilsk Nickel ESG Presentation
Norilsk Nickel ESG Presentation June 2022
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared using information available to PJSC MMC Norilsk Nickel (“Norilsk Nickel” or “Nornickel” or “NN”) at the time of preparation of the presentation. External or other factors may have impacted on the business of Norilsk Nickel and the content
Slide 3: List of Contents
Norilsk Nickel ESG Presentation List of Contents 01 Sustainable Development Highlights 4 02 Health and Safety 11 03 Environment 16 04 Climate Change 29 05 HPP-3 Incident: Full Environmental Remediation 39 06 Social Strategy 47 07 Corporate Governance 62 08 Independent Assessment of ESG Performance 6
Slide 4: Norilsk Nickel's Principles of Sustainable Development
Norilsk Nickel ESG Presentation Norilsk Nickel’s Principles of Sustainable Development Biodiversity Efficiency Efficiency Delivering against our targets in Reliability due time and at a minimum cost Delivering against our targets in Addressing challenges to ensure due time and at a minimum cost succ
Slide 5: Norilsk Nickel Contribution to UN Sustainable Agenda
Norilsk Nickel ESG Presentation Norilsk Nickel Contribution to UN Sustainable Agenda $ 3.0 Total spending in 2021 to attain Participant of the UN Global Compact since 2016 bn (1) sustainable development goals Key SDG-linked projects in 2021 S E G Social Environment Governance • Occupational safety p
Slide 6: Sustainable Development Performance Highlights
Norilsk Nickel ESG Presentation Sustainable Development Performance Highlights Environment & Corporate Climate Change Social Governance • Global nickel’ industry lowest • Proven track record of acting • Revamped corporate governance carbon footprint per tonne as a responsible corporate citizen struc
Slide 7: Sustainable Development Strategic Focus
Norilsk Nickel ESG Presentation Sustainable Development Strategic Focus Environment & Corporate Climate Change Social Governance • Cleaning up legacy pollution • Achieving zero fatalities • Embedding new sustainable and environmental rehabilitation development culture within the • Reducing impact fr
Slide 8: Overview of Key Initiatives in 2021
Norilsk Nickel ESG Presentation Responding to Sustainable Development Challenges: Overview of Key Initiatives in 2021 Environment Сlimate Сhange Mitigation Social & Corporate & Adaptation Governance • Environmental and Climate Change • New 2028 CO2 total Scope1&2 • Preparation of Norilsk Strategy ap
Slide 9: Advancing Sustainable Development Agenda (1/2)
Norilsk Nickel ESG Presentation Advancing Sustainable Development Agenda (1/2) Status Completion date Environment & Climate Change Execution of Sulphur Programme 2.0 at Kola Division (90% reduction in SO2) Completed 2021 Execution of Sulphur Programme 2.0 at Norilsk Division (45% reduction in SO2) I
Slide 10: Advancing Sustainable Development Agenda (2/2)
Norilsk Nickel ESG Presentation Advancing Sustainable Development Agenda (2/2) Status Completion date Social Strategy Improvement of local healthcare: In progress 2025 rollout of a corporate healthcare project (firs center in Norilsk launched in 2021) Major housing and social infrastructure renovati
Slide 11: Health and Safety Management
Health and Safety Management
Slide 12: Management of Health & Safety and Remuneration
Norilsk Nickel ESG Presentation | Health and Safety Management Management of Health & Safety and Remuneration HSE Strategic Targets (1): • Continuous reduction in injury rates - decrease in lost time injuries to the level of 2013 • Zero fatalities - zero-tolerance policy on work-related fatalities •
Slide 13: Health and Safety Update
Norilsk Nickel ESG Presentation | Health and Safety Management Health and Safety Update Number of Accidents Increased • Regrettably, there were 11 fatal [Employees] accidents in 2021, including the group accident at Norilsk Lost time injury Fatal Concentrator with 3 casualties 14 • All accidents hav
Slide 14: The Most Common Causes of Accidents
Norilsk Nickel ESG Presentation | Health and Safety Management The Most Common Causes of Accidents Fatal Accidents Structure by Type in 2021 [number of fatal accidents] Over 90% of major and fatal Other accidents occurred: 1 Energy-related injuries While performing the following types of 2 4 work… I
Slide 15: Reduction of Fatal Accidents is the Main Focus for 2022-2025
Norilsk Nickel ESG Presentation | Health and Safety Management Reduction of Fatal Accidents is the Main Focus for 2022 - 2025 Key Health and Safety Initiatives Mining operations • Setting up a management expert group with the sole purpose to assess and raise safety standards in mining operations; •
Slide 16: Environment
Environment
Slide 17: Expanded Investment Cycle
Norilsk Nickel ESG Presentation | Environment Expanded Investment Cycle CapEx $35 bn program includes: [$ bn] • $6 bn – environmental capex Growth projects • $8 bn – energy infrastructure upgrade Environmental programme Energy modernization Base investment programme 4.0-4.5 4.0 3.0-3.5 2.8 ~2.5 ~1.7
Slide 18: Selected Environmental and Climate Change Targets
Norilsk Nickel ESG Presentation | Environment Selected Environmental and Climate Change Targets (1) Total Environmental and Climate Change related CAPEX of USD14 bn in 2020-2030 Climate change Biodiversity • Reduce absolute Scope 1 and 2 GHG emissions from operations to 7.7 mt by 2028 Reduce a negat
Slide 19: Norilsk Nickel Air Quality Performance
Norilsk Nickel ESG Presentation | Environment Norilsk Nickel Air Quality Performance Nornickel is performing well on several air quality metrics such as NOx and solids emissions relative to peers NOx Emissions: 11kt vs. vs. 27kt Peers’ Average (1) Solid Dust Emissions: 9kt vs. 18kt Peers’ Average (1
Slide 20: Reduction of SO2 Emissions on Track
Norilsk Nickel ESG Presentation | Environment Environmental Program: Reduction of SO2 Emissions on Track Norilsk Division: SO2 Emissions Decreased 14% in Strategic target: achieve industry-leading SO2 2021, Sulphur Program is on Track utilization rates Norilsk Division: SO2 Emissions [kt] -90% • In
Slide 21: Sulphur Programme 2.0: Environmental Roadmap
Norilsk Nickel ESG Presentation | Environment Sulphur Programme 2.0: Environmental Roadmap Copper Plant Smelter Nickel town Norilsk (Shut down in December 2020) Nadezhda Smelter Kola Norilsk Nickel Plant Division Division (Shut down in 2016) Cu refining line Monchegorsk (Shut down in March 2021) SO2
Slide 22: Monitoring of the Air Quality in Norilsk
Norilsk Nickel ESG Presentation | Environment Monitoring of the Air Quality in Norilsk Talnakh Concentrator Talnakh Talnakh Norilsk Copper Plant Kayerkan Oganer Norilsk Norilsk Nadezhda Metallurgical Plant Installation of air quality sensors in the Installation of air quality sensors on the resident
Slide 23: Norilsk Nickel Water Management (1/2)
Norilsk Nickel ESG Presentation | Environment Norilsk Nickel Water Management (1/2) The Company is focused on sustainable use of water resources and pollution reduction while continuing to provide clean drinking water to local communities Fresh Water Intake for Production (1) : Maintaining Below 120
Slide 24: Norilsk Nickel Water Management (2/2)
Norilsk Nickel ESG Presentation | Environment Norilsk Nickel Water Management (2/2) The Company is committed to sustainable use of water resources and prevention of water body pollution Total Effluents and Pollutants Discharged: A Global Industry Leader in Terms of Water 2030 Target of 25% Reduction
Slide 25: Waste and Hazard Materials Management
Norilsk Nickel ESG Presentation | Environment Norilsk Nickel Waste and Hazard Materials Management Norilsk Nickel’s priorities are to minimize the environmental impact of waste from our operations, to ensure efficient waste management practices, to find alternative uses for the remaining waste Almos
Slide 26: Biodiversity: Reducing a Negative Impact
Norilsk Nickel ESG Presentation | Environment Biodiversity: Reducing a Negative Impact Research initiatives, monitoring and protection of animal species: • In 2020 and 2021 - the Great Norilsk Expedition, comprising experts from the Russian Academy of Sciences, carried out a comprehensive study (inc
Slide 27: Land: Rehabilitation of Disturbed Territories
Land: Rehabilitation of Disturbed Territories Programme on landscaping of territories and support for environmental projects: • Reclamation programme to clean up and improve public spaces and areas around motorways, protect water bodies and water reserves, and revamp tourist camping sites • In 2021,
Slide 28: Clean-up and Collection of Legacy Waste in Norilsk Area
Norilsk Nickel ESG Presentation | Environment Clean-up and Collection of Legacy Waste in Norilsk Area Clean-up and removal of legacy waste in Norilsk area 2020 Launch: • A dedicated Work with Territories and Landscaping Department was created within Norilsk Division: 890 employees and 121 units of s
Slide 29: Climate Change
Climate Change
Slide 30: Industry's Lowest Carbon Footprint in Scope 1, 2 & 3
Norilsk Nickel 2021 Financial Results | Climate Change Strategy Climate Change: Industry’s Lowest Carbon Footprint in Terms of Scope 1,2&3 Emissions and per Tonne of Ni Equivalent Greenhouse Gas Emissions Share of Renewables Nornickel’s CO2 Nickel Emissions (3) Scope 1&2 (CO2e) (1), 2021 (per tonne
Slide 31: Industry's Lowest Carbon Footprint of the Entire Commodities Basket
Norilsk Nickel 2021 Financial Results | Climate Change Strategy Industry’s Lowest Carbon Footprint of the Entire Commodities Basket Global Warming Potential (GWP 100 years) Independent verification [kg CO2e per kg of product] [Base metals (1)] and confirmation Nornickel 2020 Industry average (2) • I
Slide 32: Climate Change Strategy: Reducing Absolute Emissions and Carbon Intensity
Norilsk Nickel 2021 Financial Results | Climate Change Strategy Climate Change Strategy: Reducing Absolute Emissions and Carbon Intensity GHG Emissions from Operations: 25% Reduction Target for 2028E, Reduction of Carbon Intensity Scope 1&2 per Ni Equivalent (3) [mt CO2e] [per tonne of Ni equivalent
Slide 33: Selected CO2 Reduction Initiatives
Norilsk Nickel 2021 Financial Results | Climate Change Strategy Selected CO2 Reduction Initiatives (1.9mt Reduction Program) • Reconstruction of power transmission lines Reduction of Energy Losses • Upgrade of heat transmission pipes • Large-scale upgrade of energy equipment • Replacement on turbine
Slide 34: Production of Carbon Neutral Nickel Launched
Production of Carbon Neutral Nickel Launched • The first batch of carbon-neutral products totals 5 kt of nickel cathodes produced by the Group’s Kola Division • The carbon-neutral nickel has been tokenised on a Blockchain platform, with the tokens listed on the Vienna Stock Exchange • Replacement of
Slide 35: Physical Risk Mitigation Programme – Energy Infrastructure
Norilsk Nickel 2021 Financial Results | Climate Change Strategy Climate Change: Comprehensive Physical Risk Mitigation Programme – Energy Infrastructure • Ad-hoc audit of all industrial buildings and facilities, with a prime focus on fuel storage Reassessment • Inspection of technological fuel pipel
Slide 36: Comprehensive Physical Risk Mitigation Programme
Norilsk Nickel 2021 Financial Results | Climate Change Strategy Comprehensive Physical Risk Mitigation Programme Repair of Diesel Fuel Pipelines and Supports Inspection of Technological Pipelines Anticorrosive Treatment of Fuel Tanks Upgrade of the Bunding Perimeter of a Fuel Tank Format in Norilsk
Slide 37: Monitoring of Permafrost-Based Foundations in Norilsk
Norilsk Nickel 2021 Financial Results | Climate Change Strategy Physical Risks: Monitoring of Permafrost-Based Foundations in Norilsk Monitoring center launched in December 2021 In 2020, satellite monitoring of permafrost-based structures launched in 4 priority areas: Norilsk, Dudinka, Snezhnogorsk
Slide 38: Roll-Out of Online Permafrost Foundations Monitoring
Norilsk Nickel 2021 Financial Results | Climate Change Strategy Physical Risks: Roll-Out of Online Permafrost-Based Foundations Monitoring in Norilsk in Progress Selected 2021 targets: • Install over 1,200 sensors, including over 450 thermistor strings, over 700 inclinometers, over 60 humidity and t
Slide 39: HPP-3 Incident: Full Environmental Remediation
HPP-3 Incident: Full Environmental Remediation
Slide 40: HPP-3 Incident Overview
Clean-up Operations Following the Fuel Spill at NTEC’s HPP-3 HPP-3 Incident Overview Talnakh Норильск Norilsk Kayerkan • On May 29, 2020, an incident occurred whereby the containment of the emergency fuel storage at Heat and Power Plant № 3 (HPP-3) in the Kayerkan neighborhood of Norilsk failed due
Slide 41: Key Milestones of Clean-Up Program and Rehabilitation
Clean-up Operations Following the Fuel Spill at NTEC’s HPP-3 Key Milestones of Clean-Up Program and Rehabilitation 2020 Phase 1&2: Clean Up 2020 Phase 3: Collection of the Phase 4: Rehabilitation / (May-June 2020) residues, transportation and Restoration utilization (July-November 2020) (December 20
Slide 42: ERM Assessment of the HPP-3 Incident: Causes and Mitigation
Clean-up Operations Following the Fuel Spill at NTEC’s HPP-3 ERM Assessment of the HPP-3 Incident: Causes and Mitigation ERM Assessment Nornickel response/initiatives • Failure in the 1981 design/1984 construction • Emergency inspection of fuel storage facilities. Facilities (piles were shorter and
Slide 43: Implementing ERM Recommendations: Primary Containment
Clean-up Operations Following the Fuel Spill at NTEC’s HPP-3 Implementing ERM Recommendations: Primary Containment (Short & Medium Term) ERM Recommendations Company’s Action Timeline Status • Comprehensive inspection of tanks with the similar pile design at HPP-3 and Inspect foundations of all tanks
Slide 44: Implementing ERM Recommendations: Environmental Consequence
Clean-up Operations Following the Fuel Spill at NTEC’s HPP-3 Implementing ERM Recommendations: Environmental Consequence ERM Recommendations Company’s Action Timeline Status • The bunding perimeter for all tanks were upgraded (anticorrosion treatment, Check the bund capacity/ installation of new gas
Slide 45: Implementing Recommendations of the Great Norilsk Expedition
Clean-up Operations Following the Fuel Spill at NTEC’s HPP-3 Implementing Recommendations of the Independent Great Norilsk Expedition Great Norilsk Expedition-1 Company’s Action Timeline Status Recommendation • Installation of bons ahead of the flooding (snowmelt, ice melting, ice drift) Use additio
Slide 46: Implementing Recommendations of the Great Norilsk Expedition
Clean-up Operations Following the Fuel Spill at NTEC’s HPP-3 Implementing Recommendations of the Independent Great Norilsk Expedition Great Norilsk Expedition-2 Company’s Action Timeline Status Recommendation • The Siberian Branch of the Russian Academy of Sciences (SB RAS) Perform further monitorin
Slide 47: Social Strategy
Social Strategy
Slide 48: Strong Support of the Society and Local Communities
Norilsk Nickel ESG Presentation | Social Strategy Strong Support of the Society and Local Communities Selected contribution of Nornickel to the national economy and the Russia’s Arctic region (1) %1 %3.5 %12.1 Nornickel’s share Nornickel’s share in Russia’s Nornickel’s share in Russia’s in the natio
Slide 49: Investing into Local Communities and Charity in 2021
Norilsk Nickel ESG Presentation | Social Strategy Social: Investing into Local Communities and Charity in 2021 >$1 bn 13% Breakup of Social Expenditures in 2021 total social, charity and sponsorship Charity expenditures 7% spending, incl. $0.5bn reserve for 30% the renovation of Norilsk until 2035 F
Slide 50: Russian Industry Leadership in Social Investments
Norilsk Nickel ESG Presentation | Social Strategy Social: Russian Industry Leadership in Social Investments Response to Supporting Local Renovation Programme for Engagement with Coronavirus Communities the City of Norilsk Indigenous People • 0 production shutdowns • Construction of a hospital • RUB1
Slide 51: Social: Impact on Local Communities
Norilsk Nickel ESG Presentation | Social Strategy Social: Impact on Local Communities Average Life Expectancy at Birth in 2020 (1) years • Health impact on local communities is monitored on a regular basis by the government’s agency in 71.5 71.4 71.3 charge of monitoring health of the population, 68
Slide 52: Reducing Negative Impact on Local Communities, Improving Healthcare
Norilsk Nickel ESG Presentation | Social Strategy Social: Reducing Negative Impact on Local Communities, Improving Local Healthcare • RUB10 bn (circa USD140m) until 2025 will be invested into Corporate Healthcare Project in two regions of operations: Norilsk Industrial District Reducing Impact on an
Slide 53: Renovation Programme for the City of Norilsk until 2035
Norilsk Nickel ESG Presentation | Social Strategy The Renovation Programme for the City of Norilsk Residential and Social Infrastructure until 2035 Breakup of Expenditures ($1.1bn until 2035) Housing renovation: • Dismantling of obsolete buildings, construction of multi- and 4% low-rise residential
Slide 54: Major Renovation Programme for the City of Norilsk until 2035
Norilsk Nickel ESG Presentation | Social Strategy Social: Major Renovation Programme for the City of Norilsk until 2035 • The consortium of architects has been approved to create an Norilsk Social & architectural and space planning Concept for Norilsk renovation Economic • RUB120 bn until 2035 four-
Slide 55: Key Projects of the Norilsk Renovation Programme (1/2)
Norilsk Nickel ESG Presentation | Social Strategy Key Projects of the Renovation Programme for the City of Norilsk (1/2) Construction of Construction of residential buildings a hospital (at Talnakh) (at Norilsk and Oganer) 2024-2035 2025 Dismantling of Construction of obsolete buildings a new ice st
Slide 56: Key Projects of the Norilsk Renovation Programme (2/2)
Norilsk Nickel ESG Presentation | Social Strategy Key Projects of the Renovation Programme for the City of Norilsk (2/2) Construction of Construction of new kindergarden, a new museum of school and lyceum modern art (MOMA) 2025 2025 Reconstruction of Landscaping the Polar State (urban redevelopment
Slide 57: Habitat of Indigenous People in Taymir Peninsula
Norilsk Nickel ESG Presentation | Social Strategy Habitat of Indigenous People in Taymir Peninsula: Far from Operating Sites • There are approximately 20k of indigenous people living in the Taymir Peninsula comprised primarily by 5 nations: nents, ents, nganasans, evenks Karaul and dolgans Ust-Port
Slide 58: Nornickel Historical Support of Indigenous People
Norilsk Nickel ESG Presentation | Social Strategy Social: Nornickel Historical Support of Indigenous People Norilsk Nickel has been historically supporting local indigenous communities • Nornickel has historically supported local indigenous communities via various social programs, provided transport
Slide 59: 2021-2022 Activities to Support Indigenous People
Norilsk Nickel ESG Presentation | Social Strategy Social: 2021-2022 Activities to Support Indigenous People Progress in 2021: • Implementation of the 5-year program: construction materials, transports and financial support to prepare for the hunting and fishing winter season was provided, exploratio
Slide 60: Obtaining Free Prior Consent for Resettlement in Tukhard
Norilsk Nickel ESG Presentation | Social Strategy Case Study: Obtaining a Free Prior Consent from Indigenous People for a Resettlement Project in Tukhard Settlement • The free, prior and informed consent procedure is a UN-developed standard guaranteeing the right of indigenous peoples to determine t
Slide 61: Respecting Human Rights
Norilsk Nickel ESG Presentation | Social Strategy Respecting Human Rights Nornickel Respects Human Rights Fully in Line with the UN Guiding Principles Fundamental Principles of Nornickel’s Operations 2021 Selected Developments • Providing safe working conditions (the health and safety of • New Respo
Slide 62: Corporate Governance
Corporate Governance
Slide 63: Adjusting Organizational Structure to Respond to New Challenges
Norilsk Nickel ESG Presentation | Corporate Governance Corporate Governance: Adjusting Organizational Structure to Respond to New Challenges Sustainable Development and Board of Directors Climate Change Committee (1) Increased focus on sustainable development and climate change Нeaded by the Chairma
Slide 64: Adjusting Sustainable Development KPIs for the Management
Norilsk Nickel ESG Presentation | Corporate Governance Adjusting Sustainable Development KPIs for the Management 40% Team Annual KPIs Long-term KPIs (pending approval (1)) Health Area Environment Environment & Climate Change and Safety of team annual KPIs are linked to ESG performance from 2021 onwa
Slide 65: Independent Assessment of ESG Performance
Independent Assessment of ESG Performance
Slide 66: ESG Ratings – on Par or Above Global Mining Averages
Norilsk Nickel 2021 Financial Results Presentation | Sustainable Development Update ESG Ratings – on Par or Above Global Mining Averages: Before Rating Suspensions or Downgrades in March 2022 Governance Environment Social BB B B B 6 4 3 3 5 4 CCC 2 2 31.4 32.8 35.1 38.3 36.9 1 2018 2019 2020 2020 20
Slide 67: Selected International Sustainable Development Initiatives
Norilsk Nickel ESG Presentation | Independent Assessment of ESG Performance Selected International Sustainable Development Initiatives (March 2022) • ESG rating 48/100 as of April’21 • Compliance with GRI (global reporting • Signatory to UN Global Compact (vs.33/100 as of September’20) initiatives)
Slide 68: TCFD Compliance Roadmap – Highlights
Norilsk Nickel ESG Presentation | Independent Assessment of ESG Performance TCFD Compliance Roadmap – Highlights Selected initiatives Objectives Objectives • New Sustainable Development • Conduct a regular review of climate- • Improve climate-related and Climate Change Board related issues at the Bo
Slide 69: Strengthening the Reputation as a Responsible Supplier
Nickel ESG Presentation | Independent Assessment of ESG Performance Strengthening the Reputation as a Responsible Supplier Nornickel is Progressing Well with Global Responsibility Certifications and Standards. Completed Carbon neutral nickel – certified low carbon product In-progress for stainless s
Slide 70: Thank you for your attention!
Thank you for your attention!