About the Report
Since 2008, Nornickel has been keeping its stakeholdersStakeholders are individuals and legal entities or their groups having certain expectations about the Company or affected by its operations, influencing its managerial decisions while being themselves influenced by such decisions. Stakeholders include the Company’s shareholders, investors, employees, suppliers, contractors, consumers, trade unions and other public organisations, federal and local authorities, mass media, residents of areas where the Company operates, and others. informed about the Company’s choice of suppliers and procurement practices as part of its annual and sustainability reports.
Since 2021, the Company is in compliance with the responsible mineralHereinafter, mineral means mineral raw materials containing nickel, cobalt, and copper. supply chain requirements of the OECD GuidanceOECD Guidance means the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.. As part of the final step of the OECD Five-Step FrameworkOECD Due Diligence Guidance Five-Step Framework for Risk-Based Due Diligence in the Supply Chain of Minerals from Conflict-Affected and High-Risk Areas., companies following the OECD Guidance are required to publicly report on results of mineral suppliers due diligence.
This Report is Nornickel’s first standalone report on the responsible mineral supply chain, which is based on internal reporting from the Group’s entities and the Company’s Head Office. This Report is available in Russian and English on the Company’s website and addressed to a wide range of stakeholders.
In addition, Nornickel discloses information about the responsible supply chain on a yearly basis in related sections of its annual and sustainability reports.
According to the OECD Guidance, companies should disclose information about the mineral supply chain depending on the organisations and initiatives wherein they participate. The Company’s nickel, cobalt and copper brands are registered on the London Metal Exchange (the “LME”). The LME Policy on Responsible Sourcing includes a requirement to comply with the OECD Guidance. The companies whose brands are listed on the LME are thereby required to disclose information about their supply chains in the five steps under the OECD Guidance, including for cobalt, nickel and copper.
This Report is structured in line with the following five stepsUnder the OECD Five-Step Framework..
- Step 1: Supply chain management system: description of the system, existing documents and the Company’s general approach to supply chain controls and transparency.
- Step 2: Identification and assessment of supply chain risks: description of the approach and the tools to identify and assess risks in the supply chain.
- Step 3: Risk management plan: description of the Company’s strategy to manage risks in the supply chain.
- Step 4: Independent audits: information on third-party audits.
- Step 5: Public reporting: description of the reporting procedure on compliance with the OECD Guidance.
These due diligence checks were carried out in 2021–2022 at Norilsk and Kola divisions, specifically at Polar Division and Kola MMC. No due diligence took place at GRK Bystrinskoye as it does not have mineral suppliers.
The Group’s mineral suppliers include:
- suppliers of mined minerals (primary processed material which has never been previously refined);
- Nornickel’s suppliers providing minerals transportation, their processing and loading/unloading services.
The due diligence findings are described in more detail in the section Supplier Due Diligence in 2021–2022