Executive summary
The Report provides information
on the progress made by the Nornickel Group
For the purposes of this
Report, the Nornickel Group shall refer to PJSC MMC Norilsk Nickel
and its subsidiaries. Unless otherwise specified or required
by the context, the terms “Company”, “Group”, “Nornickel”, and
“Nornickel Group” refer to the Norilsk Nickel Group.
in achieving its strategic
climate‑related goals, outlines how the Company is responding to climate
changes in its regions of operation, and presents Nornickel’s value
proposition in the context of the global energy transition.
Nornickel produces metals that are critical
to the energy transition, including nickel (16
%
of the global market), copper (2
%
), palladium (40
%
), platinum (11
%
), and cobalt. The Company’s customer
network comprises over 300 clients worldwide. Plans are in place
to launch lithium production to capture the growing global demand
for this green metal.
As part of the Company’s Innovation
and R&D Strategy, Nornickel’s Palladium Centre aims to bring over 100 new
palladium‑containing materials to market, which are expected to generate
at least 40–50 tonnes of new palladium demand by 2030. The Centre’s
portfolio comprises over 25 developments across several distinct application areas –
greentech, high‑tech materials, and traditional uses. In 2024, Nornickel also launched
the Battery Technology Centre, which focuses on the development
of nickel‑containing cathode active materials (CAMs) – a key component
in modern batteries. The first samples of cathode materials for NCM 811+
chemistry have already been developed.
Nornickel continues to implement its
2031 Environmental and Climate Change
Strategy
. In 2024, the strategy was updated
and divided into two parts: a mandatory one, driven by the requirements
of national legislation and stock exchanges, and voluntary commitments, reflecting
the Company’s extended responsibility to reduce greenhouse gas emissions and
comply with international standards. The share of renewable electricity use
in 2024 reached 54%, exceeding the target of 46%. The Company also
remains committed to keeping the amount of absolute Scope 1 and 2 emissions
at 10 mln t of CO
2
equivalent. This will ensure that
the Company’s metals maintain a competitive carbon footprint among
the world’s major metals and mining companies. For 2024, Scope 1
emissions amounted to 7.1
Including a GHG emissions provision
for the Sulphur Project at Nadezhda Metallurgical Plant and excluding
GHG emissions generated from heat and electricity supplies
to the public.
mln t of CO
2
equivalent, while Scope 2 emissions totalled
0.4 mln t of CO
2
equivalent.
In 2024, the Board of Directors
approved the Key Focus Areas of Carbon Neutrality, a document that outlines
the Company’s forward‑looking efforts to reduce greenhouse gas emissions. These
efforts include the deployment of energy‑efficient technologies,
the implementation of climate projects, the use of low‑carbon energy
sources in power generation and transport, gangue mineralisation in tailings
storage facilities, and other initiatives.
The Company uses TCFD
Task Force on Climate‑related Financial
Disclosures.
recommendations to assess climate‑related risks
and opportunities.
-
To assess transition climate risks and
opportunities, in 2024, Nornickel, in collaboration with the Institute
for Economic Forecasting of the Russian Academy of Sciences, updated
its three proprietary scenarios for global economic and climate development:
Rapid Transition, Sustainable Palladium, and Global Growth, which correspond broadly
to the IPCC SSP1‑
2.6
, SSP2‑
4.5
, and SSP5‑
8.5
scenarios, respectively. Based on these
scenarios, Nornickel analysed its consolidated financial and economic model until
2040. The analysis showed that, under any scenario, Nornickel’s basket
of metals ensures the resilience of its financial position through
to 2040.
-
To assess physical climate risks,
the Company, in partnership with the Obukhov Institute
of Atmospheric Physics of the Russian Academy of Sciences, evaluated
climate change trends since the 1960s and climate projections up to 2050
for the Norilsk, Kola, and Bystrinsky production sites. Key risk factors
include permafrost degradation, precipitation anomalies, and more frequent
thunderstorms. In 2024, the Company focused on developing
an approach to climate vulnerability assessment based on the Energy
Division’s assets, as linear infrastructure and tanks at the Norilsk site
are more likely to be exposed to climate impacts.
Key decarbonisation initiatives in 2024
included:
-
Energy efficiency projects, which, combined,
resulted in reductions of 79.2
kt
of CO
2
equivalent in Scope 1 emissions and
180.5
kt
of CO
2
equivalent in Scope 2 emissions
-
The Company also gauged the natural
GHG absorption capacity of gangue at its tailings storage
facilities. In 2024, total absorption amounted to 375 kt
of CO
2
equivalent and was verified by TÜV
Austria
Further development of permafrost monitoring
at the Norilsk site continued in 2024. The geotechnical monitoring
system, which controls the technical condition of the foundations
of buildings and structures was expanded to include a background
permafrost monitoring system focused on the natural landscapes
of the Norilsk Industrial District. The data collected within a unified
information and diagnostic system will support more accurate modelling of permafrost
temperatures in the region and help refine forecasts of permafrost
degradation. The monitoring system is the Company’s key climate change
adaptation project, with a budget of approximately RUB 3 billion.