Independent audits

The Company undergoes annual independent industry audits to ensure compliance with the OECD Guidance, enhance the DDMS efficiency, increase stakeholder confidence in Nornickel’s supply chain and assure its transparency.

Audit for compliance with Together for Sustainability initiative

In response to its customers, the Company has been audited for compliance with the Together for Sustainability initiative (the “TfS”) since 2017. This initiative aims to assess suppliers’ approach to environmental protection, corporate social responsibility, ethics, and responsible supply chain principles. The assessment methodology is based on international standards of corporate social responsibility, including the Global Reporting Initiative (GRI), the UN Global Compact, the Principles of Responsible Care, and ISO 26000 Guidance on Social Responsibility.

In 2017, TfS audits were first conducted for mineral suppliers at Polar Division and Kola MMC. Norilsk Division was re-audited in 2021, demonstrating the progress it has achieved in addressing issues over the past four years. The Company also initiates audits at mineral processors playing a key role in Nornickel’s supply chain:

  • OJSC Krastsvetmet (OJSC Gulidov Krasnoyarsk Non-Ferrous Metals Plant);
  • JSC Prioksky Non-Ferrous Metals Plant;
  • JSC Uralintech (JSC Ural Innovative Technologies).

The TfS audit in 2021 identified a number of issues at Norilsk Division and the Company’s mineral processors. The corrective actions were mostly implemented by the end of 2022, which was confirmed by the auditors.

Audit for compliance with the Responsible Sourcing Blockchain Network

In early 2021, the Company joined the Responsible Sourcing Blockchain Network (the “RSBN”). This initiative aims to increase transparency in procurement and supplier relationship management. As part of its membership in the RSBN, Nornickel underwent annual audits for compliance with international responsible sourcing standards, the OECD Guidance in particular.

Following the RSBN audit in 2022, Nornickel’s RCI (Responsible Criteria Index) improved:
  • from 33 in 2020 to 68 in 2022 at the Company’s Head Office;
  • from 55 in 2021 to 65 in 2022 at Polar Division;
  • from 59 in 2021 to 66 in 2022 at Kola MMC.
Audit for compliance with the Responsible Sourcing Blockchain Network

Audit for compliance with the Responsible Minerals Initiative

In November 2021, the Company conducted its first audit at Kola MMC for compliance with the Joint Due Diligence Standard for Copper, Lead, Nickel and Zinc (the “JDDS”), the Pilot Cobalt Refiner Supply Chain Due Diligence Standard, the Environmental, Social & Governance (ESG) Standard for Mineral Supply Chains of the Responsible Minerals Initiative (RMI).

Following the RMI audit in 2021, Kola MMC was confirmed as RMI Active in cobalt and nickelValid from 22 June 2022 to 31 January 2023.. This audit was conducted to confirm Kola MMC’s compliance with the above standards and the LME Policy on Responsible Sourcing of LME-Listed BrandsUnder the LME Track «A», compliance with the JDDS equates to compliance with the LME Policy on Responsible Sourcing of LME-Listed Brands..

Reporting to the London Metal Exchange

In 2022, Nornickel sent its Red Flag Assessment (“RFA”) reports relating to five LME-listed metal brands to the LME, all of which were accepted and approved by the LME. Such annual reports are mandatory for companies following the LME Track «C», implying that compliance with the LME Policy on Responsible Sourcing is sufficiently supported by RFA reports. Nornickel intends to demonstrate its compliance with the LME requirements on an annual basis going forward.

Assessment of mining assets’ readiness for IRMA certification

Another example of the Company's voluntary desire to improve its supply chains of metal-containing mineral raw materials is through an independent assessment of Nornickel's mining assets readiness for the IRMA Responsible Mining Standard certification. The IRMA standard is one of the most demanding sustainable business standards in the global mining and metals industry. The Standard for Responsible Mining, a voluntary certification system for large-scale mines, includes 4 principles, 26 chapters, 400+ requirements, including 40 critical requirements.

In 2022, the Company completed the self-assessment of its mining assets. ENSOR Management Consultants, an independent consultant, which inspected Nornickel mines for preparedness for IRMA certification in the future, reviewed the results. The self-assessment covered eight key mines of the Norilsk and Kola Divisions. The IRMA Responsible Mining Standard includes a requirement to create transparent mineral supply chains and corporate engagement in the mineral sector in order to prevent mining and trading of minerals in conflict areas, as well as in case of human rights violations and insecurity. According to the self-assessment results, in the case of independent audit under certification the Company is ready to demonstrate a high level of compliance with the initiative requirements. In 2023, Nornickel plans to finalize development and start implementing a roadmap of corrective actions to increase the level of compliance with the requirements of this standard.

In addition to supply chain certifications and assessments, the Group’s business units, including the Head Office, Polar Division and Kola MMC, have their management systems certified under the following international standards:

  • ISO 9001:2015 Quality management systems;
  • ISO 14001:2015 Environmental management systems;
  • ISO 45001:2018 Occupational health and safety management systems.

Current status of compliance with ESG standards

The summary of Nornickel’sThe summary covers the Group’s Russian entities. compliance with ESG requirements as part of audits, as well as requirements of the London Metal Exchange and EcoVadisEcoVadis is a platform for corporate social responsibility and sustainable procurement ratings. rating agency is presented in the following table.

Focus area Year Status
Kola MMC Norilsk Division
RMI 2022 RMI Active in cobalt and nickelValid from 22 June 2022 to 31 January 2023. No audit conducted.
TfS 2022 No audit conducted. The auditors confirmed implementation of the 2021 corrective action plan (Norilsk Division, OJSC Krastsvetmet)The Group’s mineral processors.
2023 The auditors confirmed implementation of the 2021 corrective action plan (JSC Uralintech, JSC Prioksky Non-Ferrous Metals Plant)The Group’s mineral processors.
London Metal Exchange
LME Policy on Responsible Sourcing 2022 LME Track «C» chosen. 2021 RFA reports accepted by the LME.
2023 2022 RFA reports to be sent to the LME in Q2 2023.
EcoVadis rating platform
EcoVadis business sustainability rating 2022 Rating upgraded to 62 (out of 100) in September 2022
Norilsk Nickel employees