NorNickel GMK · RUS:GMKN
NorNickel GMK — Nornickel — ESG Presentation (December 2021)
45 slides from NorNickel GMK's sustainability presentation, December 2021
Slide 1: Navigating the Transition to a Net Zero World
Navigating the Transition to a Net Zero World ESG Presentation December 2021
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: 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 4: Contribution to UN Sustainable Agenda
Norilsk Nickel ESG Presentation Norilsk Nickel Contribution to UN Sustainable Agenda US$ 2.5 Total spending in 2020 to attain Participant of the UN Global Compact since 2016 bn (1) sustainable development goals Key SDG-linked projects in 2020 S E G Social Environment Governance • Occupational safety
Slide 5: 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 6: 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 7: Overview of Key Initiatives in 2021
Norilsk Nickel ESG Presentation Responding to Sustainable Development Challenges: Overview of Key Initiatives in 2021 Environment Climate Change Social & Corporate Governance • Environmental and Climate Change • New 2028 CO2 carbon intensity • Preparation of Norilsk Strategy approved by the Board, t
Slide 8: Selected Environmental and Climate Change Targets
Norilsk Nickel ESG Presentation Selected Environmental and Climate Change Targets (1) Total Environmental CAPEX of USD6 bn in 2020-2030 Climate change Biodiversity • Maintain absolute Scope 1 and 2 GHG emissions from operations below 10 mt by 2028 Reduce a negative impact on • Reduce CO2 intensity o
Slide 9: Expanded Investment Cycle
Norilsk Nickel ESG Presentation 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 Strategy Day 2020 guidance 4.0 3.0-3.5
Slide 10: Sulphur Programme 2.0: Environmental Roadmap
Norilsk Nickel ESG Presentation Sulphur Programme 2.0: Environmental Roadmap Copper Plant Smelter Nickel town Norilsk (Shut down in December 2020) Nadezhda Smelter Kola Division Norilsk Nickel Plant Division (Shut down in 2016) Cu refining line Monchegorsk (Shut down in March 2021) SO2 Emissions i
Slide 11: Reduction of SO2 Emissions on Track
Norilsk Nickel ESG Presentation Environmental Program: Reduction of SO2 Emissions on Track Norilsk Division: SO2 Emissions Practically Strategic target: achieve industry-leading SO2 Unchanged in 2020, Sulphur Programme in Active utilization rates Construction Phase • Kola Division: All smelting faci
Slide 12: Sulphur Programme 2.0 at Kola Division – Completed
Sulphur Programme 2.0 at Kola Division – Completed Smelter in Nickel town – shut down in December 2020 • Complete eradication of cross-border emissions Copper refining line in Monchegorsk – shut down in March 2021 • Phase-out of obsolete production facilities • Significant air quality improvement in
Slide 13: Sulphur Programme 2.0: CAPEX
Sulphur Programme 2.0: CAPEX Norilsk Division $4.1-4.3 bn Nadezhda Smelter: Flagship Project Construction of furnace gases capturing, sulfuric acid neutralization line and supporting infrastructure: • All key contracts signed • Piling, steel works, gypsum storage dam raising – in progress • Project
Slide 14: HPP-3 Incident: Full Environmental Remediation in Progress
Norilsk Nickel ESG Presentation HPP-3 Incident: Full Environmental Remediation in Progress 2020: Completion of Phases 1&2 2021+: Phase 4 (clean-up) and Phase 3 (transportation (rehabilitation) in progress and utilization of contaminated materials) • Over 90% of leaked fuel was collected 2021 and all
Slide 15: HPP-3 Incident: Land Reclamation and Soil Rehabilitation
Norilsk Nickel ESG Presentation HPP-3 Incident: Land Reclamation and Soil Rehabilitation Soil Rehabilitation in 2021 • The contaminated soils have been replaced near HPP-3, Ambarnaya river and Bezymyanny creek • The impacted area has been sowed with traditional Arctic grass and vegetation (meadow cl
Slide 16: Clean-up and Collection of Legacy Waste in Norilsk Area
Norilsk Nickel ESG Presentation Clean-up and Collection of Legacy Waste in Norilsk Area Before The first phase of the clean-up and removal program for legacy industrial and construction waste in Norilsk area launched • A dedicated Department, Work with Territories and Landscaping, has been created i
Slide 17: Biodiversity: Reducing a Negative Impact
Norilsk Nickel ESG Presentation Biodiversity: Reducing a Negative Impact Support of natural reserves and protection of rare animal species • Support of Russia’s largest natural reserves, study and protection of rare and endangered species listed in the Red Book of the Russian Federation, including S
Slide 18: Climate Change: Industry's Lowest Carbon Footprint
Norilsk Nickel ESG Presentation 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), 2020 (per tonne of Ni-eq.) [mt CO2e] CO2e emissi
Slide 19: Industry's Lowest Carbon Footprint of the Entire Commodities Basket
Norilsk Nickel ESG Presentation 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) • In-house developed methodology fo
Slide 20: Climate Change Strategy: Reducing Carbon Intensity
Norilsk Nickel ESG Presentation Climate Change Strategy: Reducing Carbon Intensity and Maintaining Absolute Emissions GHG Emissions from Operations, Scope 1&2 Reduction of Carbon Intensity [mt CO2e] per Ni Equivalent (3) [per tonne of Ni equivalent] 31.5 -16% 8.0 -69% 3.0 (1.5) 9.7 (1.2) 10.0 6.7 20
Slide 21: Selected CO2 Reduction Initiatives
Norilsk Nickel ESG Presentation Selected CO2 Reduction Initiatives • Reconstruction of power transmission lines Reduction of Energy Losses • Upgrade of heat transmission pipes • Large-scale upgrade of energy equipment • Replacement on turbines at hydro plants and power generating units at Heat and P
Slide 22: 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 was tokenised on Atomyze, a Blockchain platform, and the tokens are listed on the Vienna Stock Exchange by Nornic
Slide 23: Physical Risk Mitigation Programme – Energy Infrastructure
Norilsk Nickel ESG Presentation Climate Change: Comprehensive Physical Risk Mitigation Programme – Energy Infrastructure • Ad-hoc audit of all industrial buildings and facilities (in progress), with a prime focus on fuel storage (completed) Reassessment • Inspection of technological fuel pipelines o
Slide 24: Comprehensive Physical Risk Mitigation Programme
Norilsk Nickel ESG Presentation 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 24 Source: Company data
Slide 25: Monitoring of Permafrost-Based Foundations in Norilsk
Norilsk Nickel ESG Presentation Physical Risks: Monitoring of Permafrost-Based Foundations in Norilsk In 2020, satellite monitoring of permafrost-based Geotechnical monitoring system structures launched in 4 priority areas: Norilsk, IDS (1) Dudinka, Snezhnogorsk and Svetlogorsk Central Server In 202
Slide 26: Roll-Out of Online Permafrost Foundations Monitoring
Norilsk Nickel ESG Presentation 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 temperature transmitters, at 39 f
Slide 27: Geotechnical Monitoring of Permafrost Temperature – Historical Evidence
Norilsk Nickel ESG Presentation Physical Risks: Geotechnical Monitoring of Permafrost Temperature in Norilsk – Historical Evidence • The monitoring of permafrost at a variety of depths Permafrost Temperature at the Pumping Station #3 in number of temperature boreholes has been at Lebyazhye Tailings
Slide 28: Satellite Monitoring of Norilsk Area – the First Evidence
Norilsk Nickel ESG Presentation Physical Risks: Satellite Monitoring of Norilsk Area –the First Evidence Satellite Radar Monitoring of Vertical Displacements Map of Vertical (W-E) of the Earth’s Surface and Infrastructure Facilities Displacements (Norilsk region) • Displacements speed: -3.9942 mm/pa
Slide 29: Health and Safety Update
Norilsk Nickel ESG Presentation Health and Safety Update Number of Fatal Accidents Unchanged in 2021 Over 90% of major and fatal accidents occurred: Due to the Incident at Norilsk Concentrator [Employees] While performing the following types of work… Lost time injury • Mining operations and were cau
Slide 30: Reduction of Fatal Accidents is the Main Focus for 2022-2025
Norilsk Nickel ESG Presentation 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 • Enhance safety culture: improve
Slide 31: Social: Investing into Local Communities and Charity
Norilsk Nickel ESG Presentation Social: Investing into Local Communities and Charity ~ $500 mln Breakup of Charity Expenditures in 2020 10% total spending in 2020 on social infrastructure development, charity 15% and sponsorship programmes Public initiatives 39% Sport (infrustracture and other) ~ 3%
Slide 32: Social: Impact on Local Communities
Norilsk Nickel ESG Presentation 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, 68.3 Rospotrebnadzor
Slide 33: Reducing Negative Impact on Local Communities, Improving Healthcare
Norilsk Nickel ESG Presentation 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 and Kola Peninsula L
Slide 34: Major Renovation Programme for the City of Norilsk until 2035
Norilsk Nickel ESG Presentation Social: Major Renovation Programme for the City of Norilsk until 2035 • Social & economic development program for Norilsk city until 2035 Norilsk Social & is being prepared Economic • ₽120 bn until 2035 four-party agreement with the federal and Development regional go
Slide 35: Habitat of Indigenous People in Taymir Peninsula
Norilsk Nickel ESG Presentation 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 Levinskiye Peski D
Slide 36: Social: Support of Indigenous People
Norilsk Nickel ESG Presentation Social: Support of Indigenous People • Nornickel has historically supported local indigenous communities via various social programs, provided transportation services, materials and equipment, helped to preserve the unique cultural heritage and supported social enterp
Slide 37: Case Study: Free Prior Consent for Resettlement Project
Norilsk Nickel ESG Presentation 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 their own political
Slide 38: Corporate Governance: Adjusting Organizational Structure
Norilsk Nickel ESG Presentation Corporate Governance: Adjusting Organizational Structure to Respond to New Challenges Sustainable Development and Board of Directors Climate Change Committee Increased focus on sustainable development and climate change Нeaded by the Chairman of BoD Risk Management Co
Slide 39: Adjusting Sustainable Development KPIs for the Management
Norilsk Nickel ESG Presentation 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 onwards Weight 20% 20% 30%
Slide 40: Strengthening the Reputation as a Responsible Supplier
Norilsk Nickel ESG Presentation 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 steel producers and EV industry (batt
Slide 41: ESG Ratings – on Par or Above Global Mining Industry Averages
Norilsk Nickel ESG Presentation ESG Ratings – on Par or Above Global Mining Industry Averages Governance Environment Social Industry average – “B” B B B B BB CCC 7 6 • ESG Risk Rating “High” Reiterated 3 3 1 3 • ESG Risk Rating (1) improved to 36.9/100 (from 38.3/100) 2016 2017 2018 2019 2020 nov.21
Slide 42: Selected International Sustainable Development Initiatives
Norilsk Nickel ESG Presentation Selected International Sustainable Development Initiatives • 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) and RSPP public verification since 2016 procedure • Indus
Slide 43: Advancing Sustainable Development Agenda
Norilsk Nickel ESG Presentation Advancing Sustainable Development Agenda 2021 2022 2023 • Prepare sustainable development • Prepare and review “green • Issue a Climate change report strategies at the divisional level financing” opportunities • Compliance with Global and decompose Group strategic • S
Slide 44: TCFD Compliance Roadmap – Highlights
Norilsk Nickel ESG Presentation 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 Board and disclosure in sustainability Committ
Slide 45: Thank you for your attention!
Thank you for your attention!