Appendix 1. GRI Content Index

102–55

^*

GRI standard	Indicator number	Link	Excluded information/comments	UN sustainable development goal
GRI 101: Foundation (2016)⁷²
GRI 102: General Disclosures (2016)	Organisational profile
	102-1		–	–
	102-2		–	–
	102-3		–	–
	102-4		–	–
	102-5		–	–
	102-6		–	–
	102-7		2018 Consolidated Financial Statements	–
	102-8		–	8
	102-9		–	–
	102-10		2018 Consolidated Financial Statements (page 47)	–
	102-11		–	–
	102-12		–	–
	102-13		–	–
	Strategy
	102-14		–	–
	102-15		–	–
	Ethics and integrity
	102-16		–	16
	102-17	–	Code of Business Conduct of MMC Norilsk Nickel (page 13)	–
	Corporate governance
	102-18		–	–
	102-19		–	–
	102-20		–	–
	102-21			16
	102-22	–	2018 Annual Report (page 165)	5, 16
	102-23	–	2018 Annual Report (page 161)	16
	102-24	–	Policy for Development and Approval of Voting Recommendations in respect of Candidates to the Board of Directors of MMC Norilsk Nickel (pages 3–5)	5, 16
	102-25		2018 Annual Report (pages 186 and 190)	16
	102-26		–	–
	102-27		–	4
	102-28		2018 Annual Report (pages 163)	–
	102-29		–	16
	102-30		–	–
	102-31		–	–
	102-32		–	–
	102-33		–	–
	102-34		–	–
	102-35		–	–
	102-36		–	–
	102-37		–	16
	102-38	–	Not disclosed for personal data protection reasons	–
	102-39	–	Not disclosed for personal data protection reasons	–
	Stakeholder engagement
	102-40		–	–
	102-41		–	8
	102-42		–	–
	102-43		–	–
	102-44		–	–
	Reporting practice
	102-45	–	2018 Consolidated Financial Statements (page 63)	–
	102-46		2017 Sustainability Report (pages 128 and 130)	–
	102-47		–	–
	102-48		–	–
	102-49	–	There are no changes in the reporting	–
	102-50		–	–
	102-51	–	June 2018	–
	102-52	–	Annual	–
	102-53		–	–
	102-54		–	–
	102-55		–	–
	102-56		–	–
Economic performance
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	1, 5, 8, 16
	103-3		–	–
GRI 201: Economic Performance (2016)	201-1		–	2, 5, 7, 8, 9
	201-2		Risks posed by climate change are not measured financially	13
	201-3		–	–
	201-4	–	The Group did not receive significant government grants for the 12 months ended 31 December 2018	–
Market presence
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	1, 5, 8, 16
	103-3		–	–
GRI 202: Market Presence (2016)	202-1		–	1, 5, 8
GRI 202: Market Presence (2016)	202-2		–	8
Indirect economic impacts
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	1, 5, 8, 16
	103-3		–	–
GRI 203: Indirect Economic Impacts (2016)	203-1		–	2, 5, 7, 9, 11
GRI 203: Indirect Economic Impacts (2016)	203-2		–	1, 2, 3, 8, 10, 17
Anti-corruption practices
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 205: Anti-corruption (2016)	205-1		–	16
	205-2		–	16
	205-3		None	16
Energy
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 302: Energy (2016)	302-1		–	7, 8, 12, 13
	302-2	–	Reporting not required by law	7, 8, 12, 13
	302-3		–	7, 8, 12, 13
	302-4		2018 Annual Report (page 133): www.nornickel.com/investors/reports-and-results/#2018	7, 8, 12, 13
	302-5	–	Not applicable to the Company’s products	7, 8, 12, 13
Water
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 303: Water (2016)	303-1		–	6
	303-2		–	6
	303-3		–	6, 8, 12
Biodiversity
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 304: Biodiversity (2016)	304-1		–	6, 14, 15
	304-2		–	6, 14, 15
	304-3		–	6, 14, 15
	304-4		–	6, 14, 15
–	MM1		–	3, 12, 14, 15
–	MM2	–	There are no such sites	6, 14, 15
Emissions
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 305: Emissions (2016)	305-1		–	3, 12, 13, 14, 15
	305-2	–	The Company did not assess indirect energy-related GHG emissions. Regular GHG emission reporting to authorities is not required by law	3, 12, 13, 14, 15
	305-3	–		3, 12, 13, 14, 15
	305-4		–	13, 14, 15
	305-5	–	The Company did not assess indirect energy-related GHG emissions. Regular GHG emission reporting to authorities is not required by law	13, 14, 15
	305-6		Emissions negligible	3, 12, 13
	305-7		–	3, 12, 13, 14, 15
Effluents and waste
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 306: Effluents and Waste (2016)	306-1		–	3, 6, 12, 14
	306-2		–	3, 6, 12
	306-3	–	There are no significant spills	3, 6, 12, 14, 15
	306-4	–	There are no such waste or waste transportation	3, 12
	306-5		–	6, 15
Environmental compliance
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 307: Environmental Compliance (2016)	307-1		–	16
Environmental сompliance
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
Employment
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	5, 8, 16
	103-3		–	–
GRI 401: Employment (2016)	401-1		–	5, 8
	401-2		–	8
	401-3		Information is provided about employees on maternity leave and/or child care leave	5, 8
Occupational health and safety
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 403: Occupational Health and Safety (2016)	403-1		–	8
	403-2		No breakdown of injury rates by gender due to the lack of centralised records	3, 8
	403-3		–	3, 8
	403-4		–	8
Training and education
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
GRI 404: Training and Education (2016)	404-1		No breakdown by gender due to the lack of centralised records	4, 5, 8
	404-2		–	8
	404-3		–	5, 8
Freedom of association and collective bargaining
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	5, 8, 16
	103-3		–	–
GRI 407: Freedom of Association and Collective Bargaining (2016)	407-1	–	There are no violations	8
Rights of indigenous peoples
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	-
	103-2		–	1, 5, 8, 16
	103-3		–	–
GRI 411: Rights of Indigenous Peoples (2016)	411-1		There are no violations	2
–	MM5	–	The Group does not have any formal arrangements with indigenous northern minorities	1, 2
Local communities
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	1, 5, 8, 16
	103-3		–	–
GRI 413: Local Communities (2016)	413-1	–	Such programmes are implemented in 4 out of 74 (5.4%) Group entities operating in Russia (the Company's Head Office, Kola MMC, Polar Division, and Nornickel — Shared Services Centre) within the reporting perimeter	–
GRI 413: Local Communities (2016)	413-2		–	1, 2
–	MM6		None	1, 2
–	MM7	–	No disputes	1, 2
Supplier social assessment
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	5, 8, 16
	103-3		–	–
Public policy
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	5, 8, 16
	103-3		–	–
GRI 415: Public Policy (2016)	415-1	–	No contributions were maid to political goals	16
Socioeconomic compliance
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	5, 8, 16
	103-3		–	–
GRI 419: Socioeconomic Compliance (2016)	419-1		–	16
Emergency preparedness
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	16
	103-3		–	–
–	MM3		–	3, 6, 12
Closure planning
GRI 103: Management Approach (2016)	103-1		See also the Scope of Data Collection appendix in the interactive version of the Report	–
	103-2		–	1, 5, 8, 16
	103-3		–	–
–	MM10	–	The IFRS financial statements reflect a decommissioning provision for 9% of the operations within the reporting perimeter. As at 31 December 2018, this provision stood at RUB 23,415 mln	–

Appendix 2. Scope of data collection⁷³

102–46 103–1

		GRI topics
		Economic performance⁷⁵	Market presence⁷⁶	Indirect economic impacts	Energy⁷⁷	Water	Biodiversity	Emissions	Discharges and waste	Environmental compliance	Employment⁷⁸	Health and safety in the workplace	Training and education⁷⁹	Freedom of association and collective bargaining	Rights of indigenous and small peoples	Local communities	Anti-corruption	Public policy	Social and economic compliance	Scheduling closures	Emergency preparedness
Head office of MMC	Head office of MMC	+	+	+						+	+	+	+	+		+	+	+	+	+
Foreign assets⁷⁴	Norilsk Nickel Harjavalta OY	+								+	+	+	+	+		+	+	+	+	+	+
Geological exploration complex	GRK Bystrinskoye LLC	+	+	+	+	+	+		+	+	+	+	+	+		+	+	+	+	+	+
	Norilskgeologiya LLC	+						+	+	+	+	+	+	+		+	+	+	+	+
	Vostokgeologiya LLC	+	+					+	+	+	+	+	+	+		+	+	+	+	+
	Intergeoproekt LLC	+								+	+		+	+		+		+	+	+
	Maslovskoye LLC	+								+	+		+	+		+	+	+	+	+
Production complex	MMC Polar Division	+	+	+	+	+	+	+	+	+	+	+	+	+		+	+	+	+	+	+
Production complex	JSC Kola MMC	+	+	+	+	+	+	+	+	+	+	+	+	+		+	+	+	+	+	+
Scientific complex	Institut Gypronickel LLC	+	+					+	+	+	+	+	+	+		+	+	+	+	+
Support complex	Pechengastroy LLC	+	+		+					+	+	+	+	+		+	+	+	+	+
	Kolabyt LLC	+								+	+	+	+	+		+	+	+	+	+
	Norilskyi Obespechivaushyi Complex LLC	+	+		+	+		+	+	+	+	+	+	+		+	+	+	+	+
	Norilsknickelremont LLC	+	+	+	+	+		+	+	+	+	+	+	+		+	+	+	+	+
	ZSC LLC	+	+		+	+		+	+	+	+	+	+	+		+	+	+	+	+
Fuel and energy complex	Norilskenergo (MMC branch)	+			+	+	+	+	+	+	+		+	+		+	+	+	+	+
	Arctic-Energo LLC	+			+					+	+		+	+		+	+	+	+	+
	JSC NTEK	+	+	+	+	+	+	+	+	+	+	+	+	+		+	+	+	+	+
	JSC Taimyrgaz	+			+	+	+	+	+	+	+	+	+	+	+	+	+	+	+	+
	JSC Taimyrenergo	+		+						+	+		+	+		+	+	+	+	+
	JSC Norilskgazprom	+	+		+	+		+	+	+	+	+	+	+	+	+	+	+	+	+
	JSC Norilsktransgaz	+	+		+	+		+	+	+	+	+	+	+	+	+	+	+	+	+
	Bystrinsk Electric Grid Company LLC	+								+	+		+	+		+	+	+	+	+
	GKPZ LLC	+								+	+		+	+		+		+	+	+
Transport and logistics complex	MMC Polar Transport Division	+	+	+	+	+		+	+	+	+	+	+	+	+	+	+	+	+	+
	MMC Arkhangelsk Transport Division	+			+					+	+		+	+		+	+	+	+	+
	MMC Murmansk Transport Division	+	+	+	+	+		+	+	+	+	+	+	+		+	+	+	+	+
	MMC Krasnoyarsk Transport Division	+			+				+	+	+		+	+		+	+	+	+	+
	MMC Bystrinsky Transport Division	+			+					+	+		+	+		+	+	+	+	+
	Norilsk Airport LLC	+	+		+	+		+	+	+	+	+	+	+		+	+	+	+	+
	JSC NordStar Airlines	+	+		+					+	+	+	+	+		+	+	+	+	+
	JSC Yenisey River Shipping Company	+	+	+	+	+		+	+	+	+	+	+	+		+	+	+	+	+
	JSC Krasnoyarsk River Port	+			+					+	+	+	+	+		+	+	+	+	+
	JSC Krasnoyarsk Shiprepair Plant	+			+					+	+		+	+		+	+	+	+	+
	JSC Lesosibirsk Port	+	+		+					+	+	+	+	+		+	+	+	+	+
	Norilsk-TAVS LLC	+			+					+	+		+	+		+	+	+	+	+
	NORTRANS LLC	+			+					+	+		+	+		+	+	+	+	+
	JSC Norilsk Avia	+			+					+	+	+	+	+		+	+	+	+	+
Supply complex	JSC NORMETIMPEX	+								+	+		+	+		+	+	+	+	+
Other Group devisions	Krasnoyarsk representative office of MMC	+		+	+					+	+		+	+		+	+	+	+	+
	JSC Rosso	+								+	+		+	+		+	+	+	+	+
	Bugdainsky Mine LLC	+								+	+		+	+		+		+	+	+
	Shirinskoye LLC	+								+	+		+	+		+		+	+	+
	Severnaya Khromovaya Kompaniya LLC	+								+	+		+	+		+		+	+	+
	Professional Basketball Club CSKA LLC	+								+	+		+	+		+	+	+	+	+
	Norilsk Nickel Futsal Club LLC	+								+	+		+	+		+	+	+	+	+
	Interpromleasing LLC	+								+	+		+	+		+	+	+	+	+
	JSC Intergeneration									+	+		+	+		+	+	+	+
	Medvezhy Ruchey LLC	+	+		+	+	+	+	+	+	+	+	+	+		+	+	+	+	+	+
	NN-Service LLC	+			+					+	+		+	+		+	+	+	+	+
	Renons LLC	+								+	+	+	+	+		+	+	+	+	+
	Zapolyarye Health Resort LLC	+	+							+	+	+	+	+		+	+	+	+	+
	Nortrans — Norilsk LLC	+	+		+	+		+	+	+	+	+	+	+		+	+	+	+	+
	S G M LLC	+								+	+		+	+		+	+	+	+	+
	Invest-South LLC	+								+	+		+	+		+	+	+	+	+
	Edinstvo LLC	+								+	+		+	+		+	+	+	+	+
	JSC Norilsky Kombinat	+			+		+			+	+		+	+		+	+	+	+	+
	Norilskpromtransport LLC	+	+		+	+		+	+	+	+	+	+	+		+	+	+	+	+
	JSC Poligon Tekhnogen	+								+	+		+	+		+	+	+	+	+
	Nornickel — SharedServices Centre LLC	+	+							+	+	+	+	+		+	+	+	+	+
	JSC TGC	+			+	+		+	+	+	+	+	+	+		+	+	+	+	+
	NTPO LLC	+			+	+			+	+	+	+	+	+		+	+	+	+	+
	Arena-Aquapark LLC	+								+	+		+	+		+	+	+	+	+
	SPA Institute of Modern Security Problems LLC	+								+	+		+	+		+		+	+	+
	PSMK LLC	+	+		+					+	+	+	+	+		+	+	+	+	+
	ZTK LLC	+			+					+	+		+	+		+	+	+	+	+
	Regional intersectoral association of employers Association of Copper and Nickel Enterprises and Support Complex of Murmansk Oblast									+	+		+	+		+		+	+
	Regional intersectoral association of employers Association of Copper and Nickel Enterprises and Support Complex of Krasnoyarsk Krai									+	+		+	+		+		+	+
	Arctic Palladium LLC	+								+	+		+	+		+	+	+	+	+
	Tvoi Dom LLC	+								+	+		+	+		+	+	+	+	+
	Interregional and intersectoral association of employers Association of Copper and Nickel Enterprises and Support Complex									+	+		+	+		+		+	+
	Private educational institution of additional professional education Norilsk Nickel Corporate University	+								+	+		+	+		+	+	+	+	+
	Private educational institution of additional professional education Kola Employee Development Centre									+	+		+	+		+	+	+	+
	Autonomous non-profit organisation Club of Information Security in the Industry									+	+		+	+		+	+	+	+

✔

Collection of information

Appendix 3. Map of material GRI topics (aspects)⁸⁰

102–46 103–1

Economic performance
Market presence
Indirect economic impacts
Anti-corruption practices
Energy
Water
Biodiversity
Sulphur dioxide and solid emissions⁸¹
Greenhouse gas (GHG) emissions
Emissions of ozone-depleting substances (ODS)
Emissions of other substances
Effluents⁸²
Waste
Supplier environmental assessment
Environmental compliance
Employment
Occupational health and safety
Training and education
Freedom of association and collective bargaining
Human rights: Rights of indigenous peoples⁸³
Local communities
Supplier social assessment
Public policy
Socioeconomic compliance
Emergency preparedness
Closure planning

Appendix 4. GRI indicators

Environmental performance

Total water withdrawal 303–1

Indicator, mcm			Total water withdrawal:	Including
Indicator, mcm			Total water withdrawal:	from surface water bodies	from underground sources	effluents from third parties	natural water inflow	from municipal and other water utilities (excluding Norilsk-Taimyr Energy Company)	from Norilsk- Taimyr Energy Company⁸⁴
Group’s total		2018	356.79	254.28	28.275	21.28	44.15	8.84	96.70
		2017	335.64	233.46	31.88	20.67	40.59	9.04	93.58
		2016	328.44	230.45	33.24	15.42	40.82	8.51	98.99
		2015	348.52	254.92	28.66	21.15	34.84	8.94	96.44
		2014	351.96	258.93	31.16	21.07	31.84	8.96	94.08
Including:	Polar Division and Norilskenergo	2018	82.82	0.02	0.00	15.68	22.41	0.00	44.71
		2017	100.14	0.02	0.00	15.07	29.44	0.00	55.61
		2016	96.41	0.02	0.00	9.78	26.15	0.001	60.46
		2015	102.49	0.02	0.00	15.48	28.60	0.00	58.39
		2014	95.02	0.02	0.00	15.38	23.57	0.00	56.05
	Norilsk-Taimyr Energy Company	2018	269.47	241.23	28.24	0.00	0.00	0.00	0.00
		2017	251.98	220.42	31.57	0.00	0.00	0.00	0.00
		2016	249.93	216.68	33.24	0.00	0.00	0.00	0.00
		2015	267.87	239.21	28.66	0.00	0.00	0.00	0.00
		2014	274.00	242.84	31.16	0.00	0.00	0.00	0.00
	Kola MMC	2018	32.82	11.75	0.00	0.03	12.39	8.65	0.00
		2017	31.73	11.60	0.30	0.04	11.11	8.68	0.00
		2016	35.53	12.39	0	0.11	14.63	8.40	0.00
		2015	27.93	12.84	0	0.12	6.19	8.79	0.00
		2014	30.16	13.04	0	0.13	8.22	8.77	0.00

Water sources 306–5 303–2

Branches and subsidiaries	Scale of impact associated with the Group companies’ water withdrawals	Scale of impact associated with the Group companies’ effluents
Polar Division of MMC Norilsk Nickel	Water withdrawals from the Yenisei River, water bodies of the Norilo-Pyasinskaya water system and the Kara Sea do not affect the environment and cannot change the ability of the ecosystem to perform its functions	Water bodies of the Yenisei River and Norilo-Pyasinskaya water system are used to discharge wastewater
Polar Transport Division of MMC Norilsk Nickel
Krasnoyarsk Transportation Branch of MMC Norilsk Nickel
Norilsknickelremont
Polar Construction Company
Norilsk Support Complex
Norilskgeologiya
Taimyr Fuel Company
Taimyrgaz⁸⁵
Yenisey River Shipping Company
Norilsk Airport
Norilsk-Taimyr Energy Company
Norilskpromtransport
Norilsk Trading and Production Association
Murmansk Transport Division of MMC Norilsk Nickel	Withdrawals do not affect the water sources (water bodies of the Barents Sea basin)	Effluents are discharged into the water bodies of the Barents Sea basin
Kola MMC

Water recycled and reused 303–3

Indicator, mcm			Total water used	Including				Water recycled and reused as percentage of total water used, %
				utility water	production	including
				utility water	production	water reused	water recycled
Group’s total		2018	1,412.13	20.08	1,392.04	31.46	1,178.47	85.7
		2017	1,342.07	18.53	1,323.54	32.64	1,105.40	84.8
		2016	1,463.81	20.72	1,443.09	36.73	1,219.70	85.8
		2015	1,421.41	21.29	1,400.12	40.13	1,275.62	92.6
		2014	1,417.80	25.02	1,392.75	39.41	1,269.55	92.3
Including:	Polar Division	2018	463.50	12.13	451.37	29.25	389.50	90.4
		2017	512.32	11.81	500.51	30.49	426.18	89.1
		2016	533.67	12.09	521.58	34.43	442.82	89.4
		2015	574.17	12.51	561.66	37.7	478.07	89.8
		2014	567.04	11.41	555.63	37.38	473.59	90.1
	Norilsk- Taimyr Energy Company	2018	709.11	1.00	708.12	1.11	578.17	81.7
		2017	620.74	1.00	619.74	1.05	503.43	81.3
		2016	719.02	1.79	717.24	1.03	607.85	84.7
		2015	634.9	2.34	632.56	0.89	537.68	84.8
		2014	634.12	6.96	627.15	0.93	525.9	83.1
	Kola MMC	2018	171.58	1.75	169.82	0.00	158.59	92.4
		2017	169.64	1.79	167.85	0.00	157.47	92.8
		2016	170.52	1.9	168.62	0.17	150.72	88.5
		2015	171.32	1.79	169.53	0.00	146.67	85.6
		2014	175.38	1.93	173.45	0.00	150.48	85.8

The Group’s total reused and recycled water is 339.1% of its water withdrawal. This percentage is the largest for Polar Division (505.6%) and Kola MMC (483.3%), and stands at 215.0% for Norilsk-Taimyr Energy Company.

Total effluents⁸⁶ and pollutants discharged 306–1

Indicator, mcm or kt			Total effluents, mcm	including				Pollutants in effluents, kt
Indicator, mcm or kt			Total effluents, mcm	insufficiently treated	contaminated untreated	treated to standard quality at treatment facilities	standard clean (without treatment)	Pollutants in effluents, kt
Group’s total		2018	164.45	30.96	34.26	6.59	92.60	232.367
		2017	147.55	28.63	33.52	6.13	79.26	216.63
		2016	143.55	29.81	26.94	5.26	81.54	192.99
		2015	140.45	29.71	27.73	5.92	77.1	153.1
		2014	145.62	30.90	28.55	5.47	84.0	140.52
Including:	Polar Division and Norilskenergo	2018	34.98	3.69	28.69	1.86	0.72	72.661
		2017	45.29	6.28	33.40	4.96	0.66	73
		2016	38.67	6.42	26.83	4.71	0.73	71.83
		2015	39.52	6.01	27.54	5.18	0.78	76.92
		2014	36.20	5.94	25.43	4.13	0.70	67.47
	Norilsk-Taimyr Energy Company	2018	91.56	0.00	0.00	0.00	91.55	1.36
		2017	78.16	0.00	0.00	0.01	78.15	0.392
		2016	77.76	0.00	0.00	0.003	77.76	1
		2015	73.55	0.00	0.00	0.00	73.55	0.48
		2014	80.31	0.00	0.00	0.00	80.31	0.27
	Kola MMC	2018	25.59	25.47	0.13	0.00	0.00	148
		2017	22.27	22.25	0.02	0.00	0.00	142.925
		2016	22.59	22.59	0.00	0.00	0.00	119.32
		2015	23.48	23.48	0.00	0.00	0.00	75.62
		2014	25.44	24.60	0.84	0.00	0.00	72.68

NO_х, SО_х and other significant air emissions, including their type and weight⁸⁷ 305–7

Indicator, kt			Group’s total	Polar Division	Norilsk-Taimyr Energy Company	Kola MMC
Total amount		2018	1,926.63	1,789.01	11.69	117.45
		2017	1,845.55	1,705.00	11.51	121.88
		2016	1,936.44	1,787.57	8.2	132.9
		2015	2,063.52	1,883.24	6.33	169.79
		2014	2,008.27	1,828.09	9.74	165.44
Including:	NOx	2018	11.22	0.61	8.02	1.76
		2017	11.40	1.56	7.88	1.23
		2016	10.12	1.52	6.89	1.12
		2015	9.84	1.64	6.32	1.18
		2014	11.53	1.61	8.11	1.12
	SO₂	2018	1,869.62	1,764.65	0.002	104.82
		2017	1,784.97	1,675.85	0.003	109.07
		2016	1,877.97	1758.18	0.003	119.72
		2015	2,009.11	1,853.92	0.008	155.05
		2014	1,947.58	1,797.18	0.044	150.20
Solids		2018	14.51	5.55	0.003	7.57
		2017	13.42	6.06	0.004	6.87
		2016	14.3	6.18	0.006	7.38
		2015	20.67	8.95	0.006	10.61
		2014	23.09	9.68	0.007	11.76

Total weight of waste by type and disposal method, mt 306–2

Indicator			Total, mt	including
Indicator			Total, mt	Polar Division	Kola MMC
Waste-related activity	Generation	2018	30.72	15.71	8.31
		2017	31.93	23.26	8.61
		2016	33.27	22.57	10.61
		2015	33.64	22.27	11.37
		2014	35.17	23.07	12.1
	Waste input from third parties ⁸⁸	2018	3.07	3.04	0
		2017	0.03	0.03	0
		2016	0.04	0.03	0
	In-house waste recycling	2018	21.63	15.79	2.46
		2017	20.76	17.75	3.01
		2016	20.15	15.18	4.97
		2015	18.81	13.22	5.59
		2014	18.24	12.13	6.11
	In-house waste treatment⁸¹	2018	0.0062	0.0001	0.0060
		2017	0.0005	0.0001	0.0003
		2016	0.0003	0.0001	0.0002
	Waste transfer to third parties (for recycling or treatment)	2018	1.52	0.03	0.01
		2017	0.07	0.04	0.02
		2016	0.09	0.03	0.01
		2015	0.041	0.024	0.017
		2014	0.044	0.027	0.017
	Waste transfer to third parties (for disposal)	2018	1.64	0.08	0.00
		2017	0.11	0.07	0
		2016	0.11	0.07	0.0002
		2015	0.049	0.049	0.0003
		2014	0.04	0.04	0
	Waste disposal at in-house waste disposal sites	2018	10.97	3.72	5.83
		2017	12.67	7.08	5.59
		2016	13.54	7.88	5.66
		2015	14.75	8.99	5.76
		2014	16.81	10.84	5.97

Waste management in 2018 by hazard class and waste type, t MM3

Indicator, t	Hazard class 1	Hazard class 2	Hazard class 3	Hazard class 4	Hazard class 5	Incl. mining waste and tailings	Total	Incl. hazard classes 1–4 waste (% of total)
Generation	62.704	1,125.651	15,235.915	1,190,610.718	29,517,073.601	25,026,726.550	30,724,108.589	3.93
Waste input from third parties	0.000	14.109	1,426.789	18,071.807	3,054,711.069	2,965,332.940	3,074,223.774	0.63
In-house waste recycling	0.000	1,100.176	2,852.541	1,487.927	21,627,645.963	16,533,911.770	21,633,086.607	0.03
In-house waste treatment	0.000	18.714	5,991.824	94.062	59.097	0.000	6,163.697	99.04
Waste transfer to third parties (for recycling or treatment)	63.835	23.157	2,840.073	724.468	1,518,368.434	1,464,683.000	1,522,019.967	0.24
Waste transfer to third parties (for disposal)	0.000	0.771	2.841	55,402.776	1,586,162.267	1,500,649.936	1,641,568.655	3.38
Waste disposal at in-house waste disposal sites	0.000	0.000	282.052	1,150,554.404	9,818,987.367	9,594,798.654	10,969,823.824	10.49

Total energy consumption by Norilsk Nickel Group, TJ 302–1

No.	Indicator	2016	2017	2018, total	Incl
No.	Indicator	2016	2017	2018, total	electric power	heat (hot water and steam)
1	Fuel used to generate heat and electric power⁸⁹ and for other purposes,⁹⁰TJ	172,425	156,569	148,910	х	х
	(1) including				х	х
	Polar Division	27,816	26,021	24,429	х	х
	Norilsk-Taimyr Energy Company	123,075	107,514	103,203	х	х
	Kola MMC	9,677	9,794	8,932	х	х
	(2) including				х	х
	coal	2,132	1,460	1,660	х	х
	natural gas	151,081	134,709	129,335	х	х
	diesel fuel and fuel oil	15,423	15,221	13,788	х	х
	gasoline and aviation fuel	3,789	5,178	4,127	х	х
2	Energy from renewable sources (Group’s HPPs)	11,856	12,414	14,877	14,480	396
3	Electric power and heat procured from third parties	8,968	10,483	10,931	10,688	243
4	Electric power and heat sold to third parties	19,882	19,503	18,926	3,572	15,355
5	Total energy consumption by the Group (line 1 + line 2 + line 3 — line 4)	173,367	159,962	155,792	х	х

Electric power and heat consumption by the Group companies, TJ

Indicator	2016	2017	2018, total	Incl
Indicator	2016	2017	2018, total	electric power	heat (hot water and steam)
Electric power and heat consumption by the Group companies	65,221	61,963	63,691	33,242	30,449
including
Polar Division	41,684	35,936	34,040	14,954	19,085
Norilsk-Taimyr Energy Company	6,887	6,489	6,446	4,245	2,201
Kola MMC	9,990	12,528	12,112	9,189	2,923
HPP share in total electric power consumption in the Norilsk Industrial District	38.0%	43.6%	-	51.4%	-
HPP share in total electric power consumption by the Company	35.7%	37.6%	-	43,6%	-
HPP share in total energy consumption by the Company	18.2%	19.6%	22.7%	-	-

Social performance

Benefits for employees of Polar Division 401–2

Benefits	Full-time work		Temporary work⁹⁷		Seasonal work		Part-time work
Benefits	full-time work	part-time work	full-time work	part-time work	full-time work	part-time work	Part-time work
Reimbursement of vacation travel expenses (incl. return fare)	+	+	+⁹⁸	+⁹⁸	+⁹⁸	+⁹⁸	-⁹⁹
All kinds of financial aid	+	+	+	+	+	+	+
Health resort treatment and vacations	+	+	-	-	-	-	-
Vouchers for children’s wellness recreation tours	+	+	-	-	-	-	-
Pension plans	+	+	-	-	-	-	-
Termination benefits (apart from those prescribed by the applicable law)	+	+	+¹⁰⁰	+¹⁰⁰	+¹⁰⁰	+¹⁰⁰	+¹⁰⁰

Benefits for employees of Kola MMC

Benefits	Full-time work		Temporary work ¹⁰¹		Seasonal work ¹⁰²		Part-time work
Benefits	full-time work	part-time work	full-time work	part-time work	full-time work	part-time work	Part-time work
Reimbursement of vacation travel expenses (incl. return fare)	+	+	+	+	-	-	-
All kinds of financial aid	+	+	+	+	-	-	-⁹²
Health resort treatment and vacations	+	+	+	+	-	-	-⁹⁰
Vouchers for children’s wellness recreation tours	+	+	+	+	-	-	-⁹⁰
Pension plans	+	+	+	+	-	-	-⁹⁰
Termination benefits (apart from those prescribed by the applicable law)	+	+	+	+	-	-	-

Appendix 5. UNCTAD indicators

UNCTAD indicator

Link

Disclosure status

Information/comments

A Economic indicators

A.1 Revenue and/or (net) added value

A.1.1: revenue

Disclosed

–

A.1.2: added value

–

Disclosed

RUB 506,162 mln

A.1.3: net added value

–

Disclosed

RUB 462,808 mln

A.2 Payments to the Government

A.2.1: taxes and other payments to the Government

Disclosed

VAT is not included in taxes since this tax is indirect and actually paid by end consumers of products and services rather than by the reporting entity. VAT is also excluded from the calculation of profit (loss) and is not disclosed in the Income Statement

	RUB bn
	Total for 2018
Income tax	49.9
Insurance contributions	25.9
Property tax	6.1
Others	33.7
Total	115.6

A.3 New investment/expenditures

A.3.1: green investment

Disclosed

The expenditures in question make 4.45%
of the Company's consolidated revenue for 2018

A.3.2: community investment

Disclosed

The expenditures in question make 4.2% of the Company's consolidated revenue for 2018

A.3.3: total expenditures on research and development

–

Disclosed

RUB 204.9 mln

The expenditures in question make 0.03% of the Company's consolidated revenue for 2018

A.4 Local supplier/purchasing programmes

A.4.1: percentage of local procurement

–

Partially
disclosed

Data is collected for materials and supplies only.
As for other procurement categories, there is no centralised data collection broken down by the location of suppliers. Materials and supplies procured from Russian suppliers make 82.8% of total procurements in this category

B Environmental indicators

B.1 Sustainable use of water

B.1.1: water recycling and reuse

Disclosed

–

B.1.2: water use
efficiency

Disclosed

The ratio between water withdrawal and net added value is 0.771 thousand cu m/RUB mln

B.1.3: water stress

Disclosed

No water is withdrawn in water-scarce areas

B.2 Waste management

B.2.1: reduction of waste generation

Disclosed

In 2018, waste generation decreased by 1.21 mt
y-o-y from 31.93 mt to 30.72 mt. The ratio between waste generation and net added value went down from 0.103 kt to 0.066 kt/RUB mln

B.2.2: waste reused, re-manufactured and recycled

Disclosed

In 2018, the amount of waste recycled increased by 0.87 mt y-o-y from 20.76 mt to 21.63 mt. The ratio between waste recycling and net added value went down from 0.067 kt to 0.045 kt/RUB mln

B.2.3: hazardous waste

Disclosed

In 2018, hazard classes 1–4 waste generation increased by 1,915.24 t y-o-y from 1,205,119.75 t to 1,207,034.99 t. The ratio between such waste generation and net added value went down from 3.91 t to 2.61 t/RUB mln

B.3 Greenhouse gas emissions

B.3.1: greenhouse gas emissions (scope 1)

Disclosed

While the absolute value of the indicator remained flat, the relative amount of scope 1 greenhouse gas emissions decreased from 32.54 t to 21.68 t of CO² equivalent per RUB mln of net added value

B.3.2: greenhouse gas emissions
(scope 2)

–

Not disclosed

The Company did not assess indirect energy-related GHG emissions. Regular GHG emission reporting to authorities is not required by law

B.4 Ozone-depleting substances and chemicals

B.4.1: ozone-depleting substances and chemicals

Not disclosed

Emissions negligible

B.5 Energy consumption

B.5.1: renewable energy

Partially
disclosed

The Report discloses the amount of electric power generated by HPPs and its share in total energy consumption. The current metering system does not allow for the disclosure to be made in full compliance with UNCTAD guidelines. Along with in-house generation, Nornickel Group purchases electric power from third parties connected to Russia’s unified energy system (the share of electric power purchased on the wholesale electricity market is 27.5%)

The Company accounts for 72.5% of total electric power consumption in the Norilsk Industrial District

For more details please see the Energy Conservation and Efficiency section and the Electric Power and Heat Consumption by the Group Companies table on page 153 of the Report

Share of renewable energy in total energy consumption:

Total: 6,954,031 thousand kWh

HPP-generated: 3,587,627 thousand kWh (51.6%)

Electric power sold to retail consumers and third parties:

Total: 837,224 thousand kWh

HPP-generated: 431,929 thousand kWh

B.5.2: energy efficiency

–

Disclosed

In 2018, the ratio between total energy consumption by the Group and net added value was
0.337 TJ/RUB mln

С Social area

C.1 Gender equality

C.1.1: proportion of women in managerial positions

–

Partially
disclosed

HR records are not broken down by category or gender

The proportion of women on the Management Board is 31% (4 out of 13 members)

С.2 Human capital

C.2.1: average hours of training per year per employee

Disclosed

–

C.2.2: expenditure on employee training per year per employee

–

Disclosed

Expenditure on employee training per year per
employee:

Total: RUB 13,643 per employee

Blue-collar employees: RUB 6,549

Managers: RUB 42,675

White-collar employees: RUB 17,862

C.2.3: employee wages and benefits with breakdown by employment type and gender

Partially disclosed

Data is disclosed on wages and remuneration package (excluding insurance contributions); the data disclosed is broken down by region. There is no statistics on wages and benefits broken down by labour contract type, employment type, age or gender

C.3 Employee health and safety

C.3.1: expenditures on employee health and safety

Disclosed

Expenditures on employee health and safety make 1.45% of the Group's consolidated revenue

C.3.2: frequency/incident rates of occupational injuries

Partially disclosed

The Report discloses information about the occupational injury rate and lost day rate in accordance with the GRI requirements. The lost day rate is calculated on the basis of days, not hours, lost (as required by the GRI)

C.4 Coverage of collective agreements

C.4.1: percentage of employees covered by collective agreements

Disclosed

–

D Institutional area

D.1 Corporate governance disclosures

D.1.1: number of Board meetings and attendance rate

Disclosed

Number of the Board of Directors meetings: 45

Attendance rate: 100%

D.1.2: number and percentage of female Board members

Disclosed

The proportion of women on the Board of Directors is 7.69% (1 out of 13 members)

D.1.3: Board members by age range

Disclosed

2018 Annual Report (page 158):

www.nornickel.com/Investors/Reports and Results/2018

D.1.4: number of meetings of the audit committee and attendance rate

Disclosed

Number of meetings of the Audit and Sustainable Development Committee: 18

Attendance rate: 97%

D.1.5: compensation: total compensation per Board member (both executive and non-executive directors)

Partially disclosed

The Report discloses the total amount of compensations paid to the members of the Board of Directors. Personal compensations are not disclosed for confidentiality reasons

D.2 Anti-corruption practices

D.2.1: amount of fines paid or payable due to settlements

Disclosed

–

D.2.2: average hours of training on anti-corruption issues per year per employee

Partially disclosed

No records are kept on the length (in hours) of anti-corruption training. Reporting in the Company is based on the GRI standards; it means the Report discloses the number and proportion of employees trained in anti-corruption policies and practices

Appendix 6. List of abbreviations

ADRs	American depositary receipts
JSC	Joint-stock company
GDP	Gross domestic product
PMRU	Paramilitary mine rescue unit
FOCL	Fibre optic communication line
TJ	Terajoule
UNGC	UN Global Compact
MMC	Mining and metallurgical company
GOK	Mining and processing plant
GOST	State standard
GRK	Exploration company Mining company
Group	Norilsk Nickel Group
HPP	Hydropower plant
PPP	Public-private partnership
VHI	Voluntary health insurance
EU	European Union
PD	Polar Division
IT	Information technology
CIMS	Corporate Integrated Quality and Environmental Management System
KPI	Key performance indicators
CSR	Corporate social responsibility
IPA	International Platinum Group Metals Association
PGM	Platinum group metals
IUCN	International Union for Conservation of Nature
IFRS	International Financial Reporting Standards
EMERCOM	Ministry of the Russian Federation for Civil Defence, Emergencies and Elimination of Consequences of Natural Disasters
VAT	Value added tax
NID	Norilsk Industrial District
OJSC	Open joint-stock company
UN	United Nations
LLC	Limited liability company
OECD	Organisation for Economic Cooperation and Development
PJSC	Public joint-stock company
OHS	Occupational health and safety
MPE	Maximum permissible emissions
KPID	Kola Peninsula Industrial District
AML/CTF	Anti-money laundering/counter-terrorism financing
RBC	RosBusinessConsulting
RSPP	Russian Union of Industrialists and Entrepreneurs
RF	Russian Federation
BoD	Board of Directors
PPE	Personal protective equipment
ММ	Mass media
CIS	Commonwealth of Independent States
JSC	Joint-stock company
USA	United States of America
EMS	Environmental Management System
CHPP	Combined heat and power plant
FZ	Federal law
UNESCO	United Nations Educational, Scientific and Cultural Organization
UNICRI	United Nations Interregional Crime and Justice Research Institute
BVC	Bureau Veritas Certification
EBITDA	Earnings before interest, taxes, depreciation and amortisation
ERP	Enterprise resource planning
ESG	Environmental, social and governance
FIFR	Fatal injury frequency rate
FISU	International university sports federation
HCM	Human capital management
ISO	International Organization for Standardization
GRI	Global Reporting Initiative
LTIFR	Lost time injury frequency rate
OHSAS	Occupational Health and Safety Assessment System
R&D	Research and development
SDG	Sustainable Development Goal
SGS	Societe Generale de Surveillance
SLA	Service Level Agreement
UNCTAD	United Nations Conference on Trade and Development

Appendix 7. Glossary

Safe working conditions: working conditions where occupational exposure to harmful and/or hazardous production factors is prevented or controlled within the set limits.

Charitable activities: the Company's voluntary transfer of property, including cash, free works and services, and other support, to legal entities or individuals free of charge or on preferential terms.

Stakeholder engagement: the Company's activities aimed at identifying stakeholders’ expectations and concerns and their engagement in decision-making process.

Senior executives: President, Vice Presidents, heads of departments in the case of the Head Office, and general directors and their deputies in the case of entities located in the Norilsk Industrial District and the Kola Peninsula.

Global Reporting Initiative (GRI): independent organisation developing sustainability reporting guidelines and standards.

Nornickel (Norilsk Nickel) Group: for the purpose of the 2018 Sustainability Report, MMC Norilsk Nickel and the totality of operations forming Nornickel Group. Unless otherwise specified or required by the context, the terms “Company”, “Group”, “Nornickel” or “the Group companies” shall refer to Norilsk Nickel Group.

Stakeholders: 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.

HR policy: set of standards, rules, regulations, concepts and goals determining the Company's HR management practices (personnel planning and record keeping, recruitment, adaptation, training and development, remuneration and incentivisation, performance assessment, social security, etc.) in line with its development strategy.

Compliance: conducting business in compliance with the requirements of government authorities, applicable laws, regulations, guidelines and standards, including corporate policies and procedures, and ethical business practices.

Collective Bargaining Agreement: legal instrument governing social and labour relationships within a company or a sole trader business and signed by the representatives of employees and the employer.

Corporate culture: combination of standards, values and beliefs that determine the way the company addresses the matters of internal integration and external adaptation, guide and motivate daily behaviour of employees, while also transforming under its influence.

Corporate social responsibility (CSR): corporate behaviour philosophy and concept applied by the business community, companies and company representatives to their activities aimed at meeting stakeholder expectations and ensuring sustainable development.

Local communities: population with Russian citizenship.

Mission: statement of the Company's goals and objectives that distinguish it from its peers.

Young talents: graduates of universities and colleges whose post-graduate experience does not exceed three years.

Incentivisation: tools and methods of boosting staff performance and productivity, motivating an employee or a group of employees to achieve corporate goals.

Sustaiability Report (non-financial report): accessible, accurate and balanced description of the main aspects of the Company’s activities and achievements pertaining to its values, goals and sustainable development policy, and addressing the matters of most importance for the key stakeholders. This is a way of publicly informing the shareholders, employees, partners and other stakeholders of the Company's progress towards its goals and objectives set out in its mission statement and strategic development plans with respect to financial and environmental stability, and social security.

Health and safety: occupational health and safety protection system embracing legal, social, economic, organisational, technical, sanitary, hygienic, healthcare, rehabilitation and other activities.

HR management policy: end-to-end integrated HR management system including all stages of employee-employer interaction, from recruitment to retirement and post-retirement support.

Environmental protection and resource efficiency: corporate programmes aimed at minimising the Сompany's environmental impact.

Human Capital Development Programme: set of priority measures focused on bringing human capital to a new level in line with the company's strategic goals and objectives.

Occupational disease: health disorder caused by a systematic and lasting exposure to workplace factors or a combination of production-specific working conditions.

Local community development programmes: corporate social programmes implemented voluntarily and intended to contribute to the development of local communities.

Personnel development: set of initiatives aimed at employee recruitment, adaptation, retention, and fully unlocking their professional and creative potential.

Risk: negative factor that might result from current processes or future events and have a potential impact on the Company’s ability to achieve its goals.

Top management: President, Senior Vice Presidents, Vice Presidents, members of the Management Board and heads of departments of MMC Norilsk Nickel; directors of branches of MMC Norilsk Nickel and their deputies; sole executive bodies (directors, general directors) of the Group companies and their deputies.

Certification: confirming compliance of qualitative characteristics with quality standard requirements.

Employee performance management framework: combination of methods, processes and procedures designed to boost employee performance in line with the Norilsk Nickel Group's corporate strategy. The framework also covers employee performance assessment and competency review.

Social partnership: framework of relationships among employees (their representatives), employers (their representatives), and federal and local government authorities aimed at reconciling interests of employees and employers on matters pertaining to the regulation of labour relations and other directly associated matters.

Social programmes: voluntary corporate initiatives pertaining to employee development and motivation, creating favourable working conditions, promoting corporate culture and charity, and supporting local communities. These initiatives are implemented on a regular basis in line with the company's business strategy, and focused on satisfying balanced requests of various stakeholders. From the management perspective, a social programme is a set of initiatives carefully planned in terms of resources, workforce and timeframes, and efficiently addressing the company’s internal or external social objectives.

Social package: set of benefits, compensations, additional payments, statutory and additional services provided to employees by the employer on top of their salary.

Standard: regulation containing a set of requirements for activities and their products.

HR management strategy: principles, regulations and conceptual approaches to personnel management focused on efficient implementation of the company's business strategy and providing conditions to unlock of the human potential, in order to achieve corporate goals.

Business unit of the Company's Head Office: department, division or any other unit within the organisational structure of the Company’s Head Office and/or a unit acting in accordance with the staff schedule approved by the Senior Vice President for HR, Social Policy and Public Relations.

Significant regions of operation: the Norilsk Industrial District, Krasnoyarsk Territory (except for the NID), Kola Peninsula Industrial District (Murmansk Region), Trans-Baikal Territory, Moscow, and other Russian regions.

Sustainable development: concept developed by the UN that acknowledges the role of business in ensuring sustainable development of the society; a concept of global community development taking into account the interests of both present and future generations.

Payroll budget: total payroll and social payments.

Appendix 8. Stakeholder dialogue minutes

Dialogues with stakeholders are an important part of sustainability reporting in the Norilsk Nickel Group. The Company holds regular stakeholder dialogues and takes their results into consideration when determining contents of the report and monitoring progress in achieving sustainability goals.

When preparing the 2018 Sustainability Report, Nornickel held stakeholder dialogues as part of the We Are the City! social technologies forum in Norilsk and Monchegorsk. The dialogues attended by Nornickel employees, local authorities and general public helped identify the UN Sustainable Development Goals (SDGs) and targets most relevant for the Company and the regions where it operates.

The dialogues were held in the form of panel discussions on the topics of Economy, Social Development and Industrial Ecology. Participants in each group made suggestions on how Nornickel could contribute to SDG targets and how this would affect the Company itself. The results of the discussions were delivered by the speakers representing each discussion panel.

Dialogue minutes, Norilsk

Venue: Norilsk, We Are the City! social technologies forum

Date: 15 February 2019

The Economy panel speakers presented the work results of two groups. According to Group 1, the most important targets are infrastructure development (including air traffic), upgrade of industrial facilities, wider use of green technologies, research and innovation, energy efficiency improvement, and corruption prevention. Group 2 mostly agrees with Group 1, while also highlighting the importance of closer interaction with the government in developing fundamental science, providing access to modern energy services and building transport infrastructure.

The Social Development panel speakers presented the work results of two groups. The targets identified as Nornickel's priorities were as follows: increasing the number of youth and adults who have relevant skills; decreasing the proportion of youth unemployed and without education or training; sustaining income growth for the disadvantaged population groups; facilitating regular and responsible migration and mobility of people. Providing access to vocational and tertiary education was considered of highest importance by both the region and the Company. The participants also pointed out the essential role of the government in achieving full employment and equal pay and encouraging companies to adopt sustainable practices.

The Industrial Ecology panel speaker presented its work results and highlighted two top-priority targets, achieving the environmentally sound management of chemicals and improving water quality by reducing pollution. The importance of government involvement was specifically noted in reducing the adverse environmental impact of cities, ensuring perservation and sustainable use of ecosystems, taking action to reduce the degradation of natural habitats and preventing the extinction of threatened species.

Dialogue minutes, Monchegorsk

Venue: Monchegorsk, We Are the City! social technologies forum

Date: 2 March 2019

The Social Development panel speakers presented the work results of two groups. The stakeholder groups unanimously selected the following priority targets from the list of the UN 2030 Agenda for Sustainable Development: reducing premature mortality from non-communicable diseases; increasing the number of youth and adults who have relevant technical and vocational skills; protecting labour rights and promoting safe and secure working environments for all workers; encouraging companies to adopt sustainable practices, and enhancing the global partnership for sustainable development.

Group 1 also pointed out the following targets as material: ensuring equal access for all women and men to affordable and quality education and reducing the proportion of unemployed youth. Group 2 stressed the importance of facilitating regular and responsible migration and mobility of people.

The Economy panel speakers presented the results of the discussions in two teams. Their members were unanimous in identifying the top-priority targets for the Company, which included achieving higher levels of economic productivity and increasing resource efficiency. Upgrading infrastructure and technological capabilities and reducing corruption were also considered material. The groups stressed the importance of government involvement in implementing the following targets: ensuring access to affordable and reliable energy services, increasing the share of renewable energy, improving energy efficiency, developing infrastructure, supporting innovation and domestic technology development.

The Industrial Ecology panel speaker presented their work results and emphasised the significance of selected targets for Nornickel's operations. The priority targets included reducing the adverse environmental impact of cities, achieving the sustainable management and efficient use of natural resources, achieving the environmentally sound management of chemicals and all wastes, reducing waste generation, and reducing the number of deaths and illnesses from hazardous chemicals. The stakeholders involved highlighted the importance of ensuring the preservation and sustainable use of ecosystems and reducing the degradation of natural habitats, also mentioning the Company’s track record of cooperating with nature reserves.

Appendix 9. Stakeholder recommendations

102–44

Recommendations		Company response
*Survey-based recommendations*
From external stakeholders
Include local community opinions on the Company's programmes in the report		To be done in the next report
Disclose responsible consumption matters in a broader context to show responsibility across the production and consumption chains		Disclose responsible consumption matters in a broader context to show responsibility across the production and consumption chains Partially done. The report describes the supply chain management process (from feedstock sourcing to product sales) and touches upon responsible consumption in the segment of precious metals and metal-bearing products. See the Supply Chain Management section
From internal stakeholders
Disclose information on the production continuity management		Done. see the Risk Management Framework section, the importance of this point is explained
Disclose information about renewable energy use		Done; see the Energy Conservation and Efficiency section
Disclose the Company's mid-term strategic plan in social and environmental management (listing specific initiatives in the pipeline)		Partially done. The report describes strategic environmental projects; see the Environmental Protection section
Disclose information about pollutant emissions in the Pechengsky District of the Murmansk Region		Done; see the Environmental Protection section
*Recommendations made by the Russian Union of Industrialists and Entrepreneurs’ (RSPP) Council on Non-Financial Reporting*
Recommendations on the 2017 Sustainability Report
Comment more on changes in indicators, include more relevant references to the annual report	Done; see the Labour Relations and Environmental Protection sections
Describe measures taken to implement sustainable development and corporate social responsibility policies	Done; see the Human Rights section
Provide more details on the performance of the Norilsk Development Agency	Done; see the respective section
Disclose measures to control non-financial factors when assessing reliability of business partners	Information on control of non-financial factors in supplier relations disclosed; see the Supply, Corporate Security and Occupational Health and Safety sections
Include resolutions made by the Company’s governance bodies on responsible business practices and sustainable development	Done; see the Statement of the Chairman of the Board of Directors’ Audit and Sustainable Development Committee
Include information on how the previous recommendations by RSPP’s Council on non-financial reporting are incorporated in the current report	Done; see the Stakeholder Recommendations table
Disclose more plans for the forthcoming period, including key objectives, and information on their implementation	Done; see the Sustainable Development Goals section
Provide more details on how the Company’s performance against goals and targets correlates with the Sustainable Development Goals of the UN 2030 Agenda	Done; see the Sustainable Development Goals section
Done; see the Sustainable Development Goals section
Consider holding public hearings on the draft report in the next reporting cycles	To be done in the next reports
In addition to the objectives, disclose specific plans for the mid-term and next reporting period, provide information on their implementation and summarise performance against the goals and objectives for all material aspects Done; see the Sustainable Development Goals section	Done; see the Sustainable Development Goals section
Provide more details on the KPI system, making a special emphasis on the sustainable development and corporate social responsibility KPIs	To be done in the next reports
Provide more cases to support information about the material aspects of corporate social responsibility activities Done; the report’s design includes inserts and case studies	Done; the report’s design includes inserts and case studies
It is important to include detailed comments on the indicators, especially in case of material changes	Done for material changes
In future reports, provide a more extensive disclosure on the responsibilities across the supply chain and contractor relations, specify how the industrial and environmental security and corporate HSE standards apply to contractors, describe relevant controls, achievements and further plans	Done; see the Human Rights and Labour Relations sections (among other things, the Company introduced the STO KISM 121-222-2018 standard defining HSE requirements at the contractor selection stage). Information on control of non-financial factors in supplier relations included; see the Supply section
Disclose information on using corporate tools to assess the performance of social programmes for the management purposes	Done; see the Assessment of Social Programmes section
Provide more details on how the corporate CSR targets correlate with the Sustainable Development Goals of the UN 2030 Agenda, describe the Group's contribution to achieving these goals (including solutions to address specific challenges)	Done; see the Sustainable Development Goals section

Appendix 10. Opinion of RSPP Council on Non-Financial Reporting

102–56

Opinion of the RSPP Council on Non-Financial Reporting on Norilsk Nickel Group’s 2018 Sustainability Report for the purposes of public verification

The Council on Non-Financial Reporting of the Russian Union of Industrialists and Entrepreneurs (the “Council”) established as per the Management Bureau’s Resolution dated 28 June 2007, reviewed, at the request of MMC Norilsk Nickel (the “Company”, the “Group”, “Norilsk Nickel”) Norilsk Nickel Group’s 2018 Sustainability Report (the “Report”).

The Company requested the RSPP to arrange for the public verification of the Report, with the Council on Non-Financial Reporting providing an opinion on the materiality and completeness of the Report’s information about the Company’s operations from the perspective of the Social Charter of the Russian Business. The Charter sets out key principles of responsible business conduct aligned with those of the UN Global Compact, as well as domestic and international CSR standards.

From 29 April to 20 May 2019, the Council members reviewed the content of the Company’s Report and issued this Opinion in accordance with the Council's Procedure for Public Verification of Corporate Non-Financial Reports.

The Council members possess all the required competencies in corporate responsibility, sustainable development and non-financial reporting, comply with the ethical requirements for independence and impartiality, and provide their personal expert opinion rather than the opinion of organisations they represent.

The Report was assessed based on the below-listed criteria of information completeness and materiality.

Information is considered to be material if it reflects the company's efforts to implement the principles of responsible business conduct set out in the Social Charter of the Russian Business (see www.rspp.ru).

Completeness implies that the company provides a comprehensive overview of its operations, including the underlying values and strategic benchmarks, governance systems and structures, accomplishments and key results, and the stakeholder relationship framework.

The procedure for the public verification of the Report factors in the Company’s application of international reporting frameworks; this Opinion does not, however, purport to assess the Report’s compliance with such international frameworks.

The Company is responsible for the information and statements provided in the Report. The accuracy of the Report’s information is beyond the scope of the public verification procedure.

This opinion has been prepared for MMC Norilsk Nickel. The Company may use it for both corporate and stakeholder communication purposes by publishing the original version without any changes.

CONCLUSIONS

Based on the review of the Report and the information publicly available on the Company’s official website, and following a collective discussion of the results of the Report’s independent assessment undertaken by the members of the Council on Non-Financial Reporting, the Council confirms as follows.

Norilsk Nickel Group’s 2018 Sustainability Report covers the key areas of responsible business conduct in accordance with the principles set out in the Social Charter of the Russian Business, and provides sufficient information about the Company’s operations in relation thereto.

The recommendations made by the Council following the public verification of Norilsk Nickel Group’s 2017 Report were largely implemented in the 2018 Report. In particular, the report offers more detailed comments on changes in indicators and provides additional references to information sources, including the annual report. The report also addresses the performance of the Norilsk Development Agency, covers the sustainability efforts of the Board of Directors' dedicated committee, and provides more information on the alignment of the Company's activities with the UN 2030 Agenda for Sustainable Development.

The Company’s 2018 Report contains relevant information relating to the below-listed aspects of responsible business conduct.

Economic freedom and responsibility. The Report presents the Company’s operational and financial results, highlighting its contribution to Russia’s economy and its engagement in the Arctic. It notes the rise in the output of key metals and revenue driven by greater production efficiency across the board. Information is provided on the commissioning of advanced Bystrinsky GOK and the launch of the Sulphur Project at Polar Division's Copper Plant. Other highlights include a significant improvement in health and safety performance. The Report outlines the Company's strategic priorities. It states that Nornickel embarked on the second stage of its environmental programme, launching initiatives to upgrade infrastructure, accelerate digitalisation, and other projects. The Report discloses the Company’s corporate governance structure and approaches to sustainable development management. It highlights Nornickel’s contribution to achieving the UN Sustainable Development Goals. Information is presented on recertification audits for compliance with international standards of the quality and environmental management system. Also included is information on the employee performance management and competence assessment systems, and the risk management system. The Report informs that the Company has adopted a number of regulations on the information security of Nornickel's assets and operations. It also identifies focus areas and outlines the Company’s efforts in preventing and combating corruption, including the corruption risk assessment performed across the Group’s business units.

Business partnerships. The Report presents a stakeholder map together with the description of key stakeholder engagement mechanisms and initiatives. It specifies the details of meetings with institutional and target investors focused on responsible investment, and the launch of a dedicated section of the corporate website with a view to improving investor relations and those with ESG assessment agencies. The Report prioritises personnel development and describes respective management approaches and programmes implemented in employees’ interests, as well as health and safety strategy and performance. It also covers social partnership framework across the Group and discloses information on feedback channels for employees. The Report provides information on supplier relations with a focus on equal competition, corruption control, and feedback channels. It states that ESG requirements are incorporated into standard master agreements with suppliers and contractors, and presents information on the monitoring of contractors’ compliance with health and safety requirements when carrying out the work, as well as on incorporating a binding anti-corruption clause into supplier agreements. It also provides information on quality assurance measures, customer satisfaction monitoring, new formats of interaction with regional authorities, continuous engagement in expert and consulting working groups established by government authorities to implement socially important projects, as well as on close interaction with business associations and NPOs. It describes strategic partnerships with Russian and foreign organisations set up with a view to achieving sustainable development goals and promoting green economy, and covers cooperation in creating a global mechanism to ensure reliability of precious metals supplies and addressing the global information security agenda.

Human rights. The Report covers regulatory and managerial aspects of the Company’s respect of human rights, noting that Nornickel has a Human Rights Policy in place and that the principle of respecting human rights is set out in the Company's by-laws governing the HR, environmental, social and other matters. The Report also focuses on the respect of employees’ social and labour rights, offering them a competitive salary, social benefits, decent working conditions, professional development, and career growth. It describes the procedures in place for identifying human rights violations, stating that no such violations were recorded in the reporting period. It covers key areas of Nornickel's interaction with indigenous northern minorities and the Company's relevant commitments set forth in its Indigenous Rights Policy. In 2018, Nornickel and the Federal Agency for Ethnic Affairs (FAEA) signed a cooperation agreement to provide support to indigenous northern minorities who reside in the areas where the Company operates.

Environmental protection. The Report includes information on starting the second stage of the Company’s environmental programme, approving the Integrated Action Plan to Reduce Air Pollutant Emissions at Polar Division in 2019–2024, and launching a concentrator upgrade project at Kola MMC. It presents details on the environmental management system and efforts to manage the climate impact, reduce greenhouse emissions, save energy, improve energy efficiency and develop the Company’s energy infrastructure. It traces changes in quantitative indicators associated with the Company's environmental impact, broken down by key facilities, including its foreign asset Norilsk Nickel Harjavalta, as well as environmental expenditures and costs. The Report evaluates the impact of the Company's vehicle fleet as insignificant and describes Nornickel's approaches to biodiversity conservation, land rehabilitation and other environmental protection initiatives associated with field development, construction and other operations. It offers insights into cooperation with nature reserves, employee involvement in environmental initiatives, and environment-related interaction between the Company and broader community.

Contribution to the development of local communities. The Report highlights the Company's contribution to the development of local communities as the largest taxpayer and employer and also as participant of important regional and federal programmes and major infrastructure projects. It specifies the key focus areas of implementing social and economic agreements with government authorities in five regions across the Group’s footprint (Krasnoyarsk Territory, Murmansk Region, Trans-Baikal Territory, Tver Region and Saratov Region). It presents information on key socially important economic and environmental projects implemented in these regions and covers the details of fostering cooperation with local businesses. The Report notes the Company’s career guidance focus seeking to facilitate the employment of population, including young people. It discloses the performance results of the Norilsk Development Agency and provides the list of key social infrastructure development projects of 2018. It details the results of the World of New Opportunities charitable programme across three focus areas — Partnership, Innovations, and Development, along with major projects implemented by the Company as the General Partner of the 29th International Winter Universiade 2019 in Krasnoyarsk. It also addresses the Plant of Goodness corporate volunteer programme, describes approaches to the assessment of social programmes and public-private partnerships, and discloses information on social spending.

Final provisions

Information in the Report generally reflects the Company’s consistent work towards the integration of corporate social responsibility and sustainable development principles into its business practices. The Report contains a significant amount of information about the Company’s impact on the society and environment, its strategy and policies in the key focus areas, and the effect of the related programmes. It covers the main focus areas and formats of stakeholder engagement, including those used as part of the reporting process.

The Report was prepared using internationally and domestically recognised reporting tools (e.g. the GRI Standards, Comprehensive option, GRI Sector Disclosures and the RSPP Reference Performance Indicators), which ensures comparability of the Group's information with that of other Russian and international companies. The Report is also in line with the UN Global Compact and the UN 2030 Agenda for Sustainable Development.

The 2018 Report is the Company’s fifteenth non-financial report, which demonstrates its determination to consistently develop reporting processes and enhance transparency. The Company uses various forms of independent assessment and confirmation of disclosed information (professional audit and public verification). This reflects the Company’s commitment to keeping stakeholders informed and maintaining the high quality of disclosures.

RECOMMENDATIONS

While acknowledging the Report’s strengths, the Council calls attention to some aspects of disclosures’ materiality and completeness, which should be addressed in the future reporting cycles.

The Report outlines Nornickel’s strategic priorities and we regard this data as material for the stakeholders. However, the Company’s strategy deserves a more detailed disclosure in the sustainability report, and it is therefore recommended to use more references to the sources where the relevant information is presented in more detail (e.g. the annual report). Cross-references in the Company's public reports ensure a more complete disclosure of material information without a significant increase in the size of reports, while also enabling comparability of information contained in different sources.

The Report reflects the results of the inventory of significant projects and programmes in line with the UN 2030 Agenda for Sustainable Development. Nornickel is advised to continue disclosing information on the progress towards the UN 2030 Agenda for Sustainable Development, using it among other criteria for assessing implementation of the goals and objectives of the Company's strategic priorities.

The Report states that the Company’s by-laws provide for the control over compliance with the anti-corruption clause in agreements with suppliers and contractors, as well as their implementation of the work safety recommendations. It is advised that future reports describe the Company's impact on their business ethics, and social and environmental responsibility practices in more detail. It would be useful to provide examples of how ESG aspects are monitored as part of assessing the reliability of business partners, and how the latter implement relevant policies and standards into their business practices. Taking into account the new practice of the Company's adherence to the codes of conduct devised by foreign manufacturers, it seems reasonable to describe the Company's experience in this area going forward.

The Report highlights the Company’s high degree of transparency and the use of various formats of stakeholder engagement. It would be appropriate to add a description of how feedback from stakeholders is used in management practices, namely in improving business processes and refining social programmes. In particular, this also applies to disclosing the results of the Company’s Social Portrait of a City Resident analytical survey in the Krasnoyarsk Territory and the Murmansk Region.

The Company's reports generally provide full information on energy consumption and environmental impact across all key divisions. To improve this area of disclosure, it is further advised to report on the relevant performance of support functions (transportation, gas production, electricity generation) and smaller units, such as Bystrinsky GOK.

The Report contains information on Nornickel’s efficiency improvement programme seeking, among other things, to introduce innovative management solutions. In future reporting cycles, it is advisable to give more detailed information on the achievements in this area, including the set of KPIs related to sustainable development.

Taking into account the Company's active role in implementing national priorities as stated in the Report, it would be useful to provide more details on its further participation in national projects, such as the Environment, the Digital Economy, and the Smart City initiatives, going forward. This would enable a more complete understanding of the Company's social and environmental impact as one of the major players in the Russian business market.

The RSPP Council on Non-Financial Reporting hereby takes a positive view of this Report, supports the Company’s commitment to responsible business practices, notes consistency in developing the reporting process, and confirms that Norilsk Nickel Group’s 2018 Sustainability Report has passed the public verification procedure.

RSPP Council on Non-Financial Reporting

Appendix 11. Independent assurance report ⁹⁴

102–56

Appendices

Appendix 1. GRI Content Index

Appendix 2. Scope of data collection73

Appendix 3. Map of material GRI topics (aspects)80

Appendix 4. GRI indicators

Environmental performance

Total water withdrawal 303–1

Water sources 306–5 303–2

Water recycled and reused 303–3

Total effluents86 and pollutants discharged 306–1

NOх, SОх and other significant air emissions, including their type and weight87 305–7

Total weight of waste by type and disposal method, mt 306–2

Waste management in 2018 by hazard class and waste type, t MM3

Total energy consumption by Norilsk Nickel Group, TJ 302–1

Electric power and heat consumption by the Group companies, TJ

Social performance

Benefits for employees of Polar Division 401–2

Benefits for employees of Kola MMC

Appendix 5. UNCTAD indicators

Appendix 6. List of abbreviations

Appendix 7. Glossary

Appendix 8. Stakeholder dialogue minutes

Appendix 9. Stakeholder recommendations

Appendix 10. Opinion of RSPP Council on Non-Financial Reporting

Opinion of the RSPP Council on Non-Financial Reporting on Norilsk Nickel Group’s 2018 Sustainability Report for the purposes of public verification

CONCLUSIONS

Final provisions

RECOMMENDATIONS

Appendix 11. Independent assurance report 94

Appendix 2. Scope of data collection⁷³

Appendix 3. Map of material GRI topics (aspects)⁸⁰

Total effluents⁸⁶ and pollutants discharged 306–1

NO_х, SО_х and other significant air emissions, including their type and weight⁸⁷ 305–7

Appendix 11. Independent assurance report ⁹⁴