Norilsk Nickel's Climate Change Strategy
Norilsk Nickel is driving the shift towards sustainable and responsible production
Andrey Bougrov
Senior Vice PresidentNornickel is one of the world’s largest industrial groups and our duty is to be a sustainable and responsible producer. One of our top priorities is to keep our greenhouse gas emissions at the lowest level in the metals and mining industry while at the same time increasing the output of metals which are essential for the global transition to a green economy.
Long-term goals
Our mission
Nornickel recognizes:
- The need for an urgent global response to the threat of climate change, across all areas of society and the economy.
- The need to support the goals of the Paris Agreement to limit the increase in the global average temperature to 2°C and pursue efforts to limit the increase to 1.5°C.
- The need to reduce emissions from the extraction and use of mining products and support collaborative market-based approaches to accelerate the use of low-emission technologies as part of a transition to a low carbon energy mix. We will also take into account the practical challenges we will face in making that transition.
- That climate and energy policy should be technology neutral and rely on a market-based approach to enable the most cost-efficient solutions.
- The vital role that a broad-based, predictable, long term carbon price can play, alongside other market mechanisms, to drive reduction of GHG emissions and incentivize innovation.
- The importance of providing climate-related disclosure in order for all stakeholders to measure and respond to climate change risks and opportunities, including the transparency around climate-related risks.
- The role of natural climate solutions and offsets in providing low cost options to address global GHG emissions.
Our Approach to Climate Change
Nornickel has a long-term sustainable development strategy ensuring the development of environmentally oriented production to enable the global shift towards cleaner mobility. This involves the modernization of its production assets through the deployment of best available technologies and clean tech solutions, maintaining a low-carbon footprint among global diversified metals and mining players, improving energy efficiency and resilience to the physical risks related to climate in the long term.
Our Commitments
- Implement governance, engagement and disclosure processes to ensure climate change risks and opportunities are considered in business decision-making.
- Advance operational level adaptation and mitigation solutions, taking into consideration opportunities and challenges of the Taimyr and Murmansk regions.
- Engage with the administration of Norilsk on our shared climate change risks and opportunities and help municipalities in the Norilsk industrial region to understand how they can mitigate the physical impact of climate change.
- Increase transparency and disclosure regarding Scope 1 and 2 GHG emissions on an annual basis.
- Support the global transition to a low carbon economy by contributing to the sustainable production of commodities essential to the energy and mobility transition, working with our partners, suppliers and clients across the value chain.
- Set emissions reduction targets at a corporate level.
- Engage with external parties to determine a preferred approach to reporting Scope 3 emissions.
Our Targets
To deliver on our strategic objectives Nornickel will:
- Continue to maintain absolute Scope 1+2 GHG emissions from operations below 10 Mt CO2e amid production growth by ∼30-40% (Ni-equivalent production vs 2017).
- Maintain Scope 1&2 GHG emissions per t of Ni-equivalent in the bottom quartile of global metals and mining industry GHG intensity curve.
- Strive to increase low-carbon energy usage.
- Manage climate-related risks by building resilience strategies and helping communities in the Norilsk industrial region and Murmansk region.
- Encourage the shift to a low carbon future by using R&D to help develop new solutions and by engaging in cross-industry climate dialogue.
Responsibility for Climate Change
Responsibility as to climate change matters is allocated between governance bodies of various levels, based on their respective competencies. The Company’s Board of Directors and Management Board examine climate change risk data published in Nornickel Group’s quarterly risk reports. As one example, the Board of Directors reviews climate risks while discussing the Company’s programmes tracking climate changes and progress reports on major investment projects and treats them as a priority in setting Nornickel’s targets and development strategy. Andrey Bugrov, Senior Vice President for Sustainable Development is in charge of the climate change agenda in the Company.
Please refer to our Climate Change Policy for more information on corporate responsibility.
Nornickel’s Environmental Impact
Contribution to the global sustainable development agenda
170-200 mt — Company estimate based on c. 6.8t savings (CO, NOx, Hydrocarbons) per catalyst lifecycle (rounded)
50-100 mt — “Company estimate based on up to 18t carbon dioxide savings per EV lifecycle run on renewable energy as compared to ICE”
Key Climate Change Indicators
Use of renewables and energy efficiency
Nornickel has one of the highest shares of renewable energy in its energy mix. The Company’s key renewable energy source is hydropower generated by the Group’s Ust-Khantayskaya and Kureyskaya HPPs. The remainder of the fuel used for the thermal power plants is almost entirely made up of natural gas. The use of high-carbon fuel by energy assets is minimized. The use of other renewables, such as solar, geothermal and wind energy is virtually impracticable as Nornickel’s core production assets are located beyond the Arctic Circle in the Norilsk Industrial District, in harsh climatic conditions.