A pilot survey of Nornickel’s responsible supply chain participants showed 68% compliance by suppliers of goods, work and services with sustainable development practices.
The survey was conducted in 2023. The majority of the suppliers who participated in the survey are non-public companies. Therefore, the requirements of regulators and expectations of stakeholders regarding their non-financial disclosures are not as high as requirements to and expectations of public companies.
Taking this into account, the survey results confirm that the suppliers have a high level of concern about environmental protection, social responsibility and corporate governance.
Taking this into account, the survey results confirm that the suppliers have a high level of concern about environmental protection, social responsibility and corporate governance.
EVGENIYA PINEGINA,
Nornickel’s Sustainable Development Department:
“Since 2021, Nornickel has been conducting ESG-assessment of mineral raw material suppliers. In 2023, we expanded coverage and included suppliers of goods, work and services into the assessment the. The pilot ESG-assessment covered about 14% of all purchases by Russian Nornickel companies. 80% of respondents are suppliers of equipment and materials, and 20% are service providers.”
Nornickel revised the questionnaire using the results of the pilot survey and feedback from suppliers, as well as also taking into account recommendations of regulators and expectations of rating agencies. As a result, the share of questions related to ecology and environmental protection in the 2024 survey increased.
In Q2 2024, we commenced conducting ESG surveys of our suppliers using the expanded sampling. Participation in the survey is voluntary, meaning that estimating participation in advance was impossible.
How Nornickel forms responsible supply chains
The company has been building the Value Improvement Program since 2021. Nornickel is guided by the Responsible Sourcing Policy and the Supplier Code of Conduct.
It communicates with suppliers on sustainability issues within the raw material suppliers comprehensive inspection system. From 2023, the inspection includes an annual ESG-survey of suppliers of goods, work and services. The survey is conducted by Nornickel’s Sustainable Development Department.
The survey results allow the company to control suppliers’ activities with both corporate and international compliance standards, and to assess the ESG maturity of counterparties practices.
Nornickel's system of interaction with suppliers has an impact on the entire industry. The company acts as a business mentor encouraging small and medium-sized enterprises to master sustainability principles, acquaint themselves with ESG best practices and assessment systems, and to integrate them into their business processes and individual projects. In this way, interest in sustainable development issues and understanding of the positive effect of ESG projects are gradually being developed in Russia, and the company is implementing its important social and leadership function.
An important factor is that the survey is being improved to better reflect the actual compliance of suppliers' activities with sustainable development principles.
The Responsible Supply Chain Report contains information about Nornickel’s approach to the Value Improvement Program and the results of ESG-assessment of suppliers for 2023.
It communicates with suppliers on sustainability issues within the raw material suppliers comprehensive inspection system. From 2023, the inspection includes an annual ESG-survey of suppliers of goods, work and services. The survey is conducted by Nornickel’s Sustainable Development Department.
The survey results allow the company to control suppliers’ activities with both corporate and international compliance standards, and to assess the ESG maturity of counterparties practices.
Nornickel's system of interaction with suppliers has an impact on the entire industry. The company acts as a business mentor encouraging small and medium-sized enterprises to master sustainability principles, acquaint themselves with ESG best practices and assessment systems, and to integrate them into their business processes and individual projects. In this way, interest in sustainable development issues and understanding of the positive effect of ESG projects are gradually being developed in Russia, and the company is implementing its important social and leadership function.
An important factor is that the survey is being improved to better reflect the actual compliance of suppliers' activities with sustainable development principles.
The Responsible Supply Chain Report contains information about Nornickel’s approach to the Value Improvement Program and the results of ESG-assessment of suppliers for 2023.
ANTON BERLIN,
Head of Nornickel Sales Division:
“The company uses a systemic approach to supply chain management, and each participant of the chain, from supplier to end consumer, is important for the overall process. We are working to ensure that every stage of product creation and delivery is reliable for the participants and transparent for all stakeholders.”
Photos by Nornickel
June, 2024
