Guided by the TCFD Recommendations,
IFRS S2, COSO ERM Framework, and the Environmental and Climate Change Strategy,
Nornickel is building procedures for managing climate‑related risks and
opportunities.
The Company follows the TCFD and IFRS S2
classification, which identifies two key categories of risks and opportunities:
Physical risks, associated with extreme weather
events (acute risks) or lasting changes in weather patterns (chronic risks)
Transition risks and opportunities, associated
with evolving market, regulatory, technological, and political environment
as the global economy transitions to a low‑carbon model
IFRS S2 10a, IFRS S2 10b
The Company’s assets are located
in regions that have long been affected by climate change, which is reflected
in its current technical and production risks. The Company continues
to integrate climate‑related risk identification and assessment procedures into
the corporate risk management system. This involves improving the rules
for managing both operational and longer‑horizon risks, as governed
by PJSC MMC Norilsk Nickel’s Procedure Rules for Risk Management.
Within the corporate risk management framework,
physical risks, as well as transition risks and opportunities, may
be treated either as standalone risks and opportunities
or as contributing factors to risks already identified.