Nornickel’s new environmental strategy: key changes

The company’s environmental strategy was first adopted in 2021. The strategy was updated when Russian laws and international environmental standards became more restrictive. Since then, Nornickel has gained significant experience in environmental projects in the new document. The government’s role in regulating environmental issues affecting production has also increased.

The updated strategy is divided into two sections: required and optional scopes. The required actions seek to ensure environmental compliance with Russian laws, improvement notices and company obligations. They will affect the Norilsk, Energy, Kola and Trans-Baikal divisions. By 2031, Nornickel commits to:

• achieve zero environmental emergencies in regions where it operates;
• reduce SO₂ emissions to 300,000 tonnes, i.e. by almost 90%;
• bring effluent pollutant content to standard requirements,
• comply with waste disposal standards and fresh water intake limits;
• reclaim 4,247 hectares of disturbed land;
• avoid the loss of biodiversity.

The largest project in the required strategy scope remains the Norilsk Sulphur Program, aimed at minimizing SO₂ emissions into the atmosphere. Other actions will involve water recirculation and construction of treatment facilities at outfalls. The Company will implement automatic emission control systems and conduct environmental impact assessments across all operational sites.

In total, 344 actions are planned by 2031, 157 of which are obligatory by the Strategy with a total budget of RUB 555 bn.

Optional strategy actions comprise 187 initiatives, covering compliance with international standards, CO2 emissions reduction, and waste disposal. The targets for most optional scope action areas will be updated in 2024–2025.

Carbon Neutrality. Nornickel’s Board of Directors has approved the key carbon neutrality areas of action.

The key actions have been identified, consistent with the best business practices and are designed to reduce the company’s gross GHG emissions and carbon footprint in the short, medium and long term.

Main carbon neutrality areas of action:

• develop low-carbon energy sources,
• implement climate projects,
• use energy-efficient processes and equipment,
• adopt AI technology,
• convert vehicles to run on alternative fuels.

The CO2 capture and disposal projects and conclusion of free bilateral contracts for electrical energy purchase and sale are planned for further evaluation and study. The CO2 capture and disposal processes are absolutely eco-friendly and safe. They involve pumping carbon dioxide into the waste rock of depleted gas or oil fields. CO2 can also be pumped into currently operating oil fields. This will increase output as carbon dioxide is much more efficient than the conventional process of oil displacement by water.

Together with the Siberian Federal University, Nornickel is assessing the feasibility of nature and climate projects in regions where it operates.

The company has also developed an innovative approach to utilizing waste from core operations to absorb CO2.

By mining minerals and hauling them to the surface, the Company is already facilitating the natural process of carbon dioxide absorption, or mineralization. The company’s further research will support the design of technology for accelerated and artificial tailings mineralization. Tailings are waste stored in dumps which remain after processing operations. The developments will help improve the tailings absorption capacity relative to natural mineralization. Going forward, after the process is implemented at all of the company’s sites, the carbon footprint of the products will decrease.

In line with the global best strategic planning practices, Nornickel has introduced an internal carbon price on a trial basis. It is a risk management tool and ESG strategy component used by more than 2,000 companies around the world.

The internal carbon price (ICP) refers to a monetary value of one tonne of carbon emissions voluntarily assumed by the company when estimating the investment project cost. This method helps in assessing the viability of the initiative should a tax on CO2 emissions be introduced. In addition, it could justify the implementation of programs unprofitable without the ICP.

The updated environmental strategy will affect the entire company. In the required scope, 157 specific actions have been developed with a total budget of ca. RUB 555 bn. Optional strategy actions comprise 187 initiatives.

Number of actions in Nornickel’s updated environmental strategy

Photos by Nornickel