Annual report 2013

About the report

The Company continued the practice of issuing non-financial reports1 on an annual basis and published a report on corporate social responsibility of MMC Norilsk Nickel2 in 2013.

The purpose of this report on corporate social responsibility (hereinafter referred to as the CSR report), as well as non-financial reports for previous years, is to inform a wide spectrum of stakeholders on the strategy and principles, the key events and the practical results of the reporting period, as well as the prospects for corporate social policy and the Company’s activities in the fields that form the basis of its sustainable development.

The contour statement of 2013, its geographic and substantive scope remained unchanged in comparison with 2012.

The CSR report for 2013 reflects the results of operations from 1 January 2013 to 31 December 2013. The report also includes medium-and long-term plans that are forward-looking. Because their implementation is influenced by several factors beyond the control of the Сompany, the results achieved in the reporting periods may not coincide with the target benchmarks set forth in this report.

The results of production and financial-economic activity are presented in consolidated form for the group as a whole (unless stated otherwise), using the audited financial statements in accordance with the IFRS. Indicators and information regarding environmental performance, as well as occupational safety and product liability, personnel training and the realisation of social programmes provided for all the main enterprises of the Group, including international ones, which, in most cases, compares information in the field of sustainable development with reporting under IFRS.

Information and data in all areas of sustainable development, covered in the CSR report, was collected both within the framework of the corporate reporting systems, and according to special requests for information that were made taking into account the recommendations of the Global Reporting Initiative - GRI, including the branch application for mining and metallurgical enterprises (version G3.1 was used, with application level A). The recommendations of the Russian Union of Industrialists and Entrepreneurs (RUIE) on the use of the basic performance indicators in the practice of non-financial reporting were also taken into consideration. In preparation of the CSR report text, a review covering the main areas (subjects) of social responsibility was carried out, in conformity with international standard ISO 26000:2010 – guidance to social responsibility. A summary table of compliance concerning the CSR report with GRI guidelines (version 3.1), RUIE basic performance indicators and ISO 26000:2010 standard is set out in Appendix 1.

In determining the essential material for inclusion in the CSR report, in addition to the above international standards, the results of interaction with key interested parties in 2013 were also taken into account – in particular, dialogues held in Norilsk and Murmansk (see also the section “Develop a dialogue with interested parties”) and analysis of reports on the activities of Norilsk Nickel in the mainstream media. The strategic priorities during the reporting period have had a significant influence on the reflection of the economic, social and environmental aspects of the Company’s activities in this report. Recommendations of the board of the RUIE concerning non-financial reporting, published in the CSR report for 2012, were also taken into account.

The CSR report for 2013 has passed the procedure of public endorsement by the board of the RUIE concerning non-financial reporting. The conclusion of the RUIE board is available in the last section of the report.

The text of the report, in Russian and English, is also available on the Company’s website.

1. Social reports of OJSC MMC Norilsk Nickel in 2003-2004, 2005, 2006, 2007 and reports concerning the CSR of MMC Norilsk Nickel for 2008, 2009, 2010, 2011, 2012 (in versions in Russian and English) are available on the corporate website CSR reports for 2008, 2009, 2010, 2011, 2012 are included in the National Register of corporate non-financial reports (RUIE).

2. By MMC Norilsk Nickel we mean in this context OJSC MMC Norilsk Nickel and the complex of organisations of the corporate structure within the Norilsk Nickel Group.

OJSC MMC Norilsk Nickel includes the Zapolyarny Branch, the Krasnoyarsk Transport Branch, the Murmansk Transport Branch, the Archangelsk Transport Branch, Norilskenergo – a branch, the Zapolyarny Transport Branch, and the Krasnoyarsk representation, as well as the Company’s Head Office. Unless specified otherwise and where the terms “Company,” “Group,” “Norilsk Nickel,” and “Group enterprises” are used, the information presented relates to MMC Norilsk Nickel. Quantitative indices in particular fields of sustainable development pertain to the branches and subdivisions of the Group in accordance with Appendix 4.

3. Social reports of OJSC MMC Norilsk Nickel in 2003-2004, 2005, 2006, 2007 and reports concerning the CSR of MMC Norilsk Nickel for 2008, 2009, 2010, 2011, 2012 (in Russian and English) are available on the corporate website CSR reports for 2008, 2009, 2010, 2011, 2012 are included in the National Register of corporate non-financial reports (RUIE).