Annual report 2013

Collaboration with Regional Government and Local Self-Government Bodies and the Population of the Operations Regions

MMC Norilsk Nickel operates in several regions of Russia and is the largest taxpayer and employer in the Krasnoyarsk Territory and Murmansk Region, where it has a key impact on the socio-economic development of the operations area at the local level and a significant impact at the regional level.

The Company regularly informs the government and local autonomous agencies of the outlooks and prospects for its development and of possible changes in the employment sphere. In addition to unilateral awareness, new forms of collaboration are coming into use through dialogue with stakeholders.

In 2013, MMC Norilsk Nickel took active part in social programmes and events carried out by government and local self-government agencies that have a significant influence on the socio-economic, environmental, and demographic situation in the territories where the Company carries out its economic activity, as well as an impact on preserving social stability in the region and environs.

The Krasnoyarsk Territory

An agreement was entered between the RF Ministry of Regional Development, the Krasnoyarsk Territory, the municipal entity of Norilsk, and MMC Norilsk Nickel aimed at modernising and developing the social and engineering infrastructure and housing fund facilities of Norilsk for ensuring comfortable conditions for citizen living. Under the agreement, MMC Norilsk Nickel financed the construction of two preschool educational institutions in Norilsk, as well as a swimming pool and sports and recreation center in Dudinka. (For more details on the results of executing the agreement, see the section called “Contribution to the Sustainable Development of the Operations Area.”)

Within the framework of executing the Agreement on Socio-Economic Cooperation with the territory’s government, the Company’s representatives also participated in drawing up and discussing:

  • the environmental policy conception of the Krasnoyarsk Territory until 2030;
  • a programme for reducing the negative impact on the atmosphere of the Krasnoyarsk Territory for 2014-2020.

In July 2013, the directors of the Zapolarny Branch of OJSC MMC Norilsk Nickel took part in the 33rd congress of the Union of Arctic and Extreme North Towns held in Norilsk, where the draft of the Federal Law on the Arctic Zone of the RF was discussed.

In 2013, the Company took the initiative to actively draw the population of the operations area into joint efforts to raise the quality of the social and cultural environment by launching a grant contest of social projects called “Our Future—Our Responsibility (for more details, see the section titled “Contribution to the Sustainable Development of the Operations Area”).

The Murmansk Region

In November 2013, the Company supported the 2nd Murmansk International Business Week. Attention at all the forum events was focused on discussing the implementation of development programmes for the northern territories, the tourist sphere, support of business initiatives, preserving the northern environment, and also international, border, and interregional cooperation. The week ended in an international conference entitled “The Mining Industry of the Barents Sea Euro-Arctic Region: Looking to the Future,” in which representatives of Kola MMC participated.

At the end of November 2013, members of MMC Norilsk Nickel’s senior management, headed by Chairman of the Board Gareth Penny, met with Governor of the Murmansk Region Marina Kovtun and discussed a strategy for further collaboration.

At the end of November 2013, members of MMC Norilsk Nickel’s senior management, headed by Chairman of the Board Gareth Penny, met with Governor of the Murmansk Region Marina Kovtun and discussed a strategy for further collaboration.

The Company initiated a round table discussion called “The Future of Monchegorsk,” in which representatives of the government of the Murmansk Region, local executive power bodies, businessmen, and employees of Kola MMC participated.

Russian-Norwegian Border Cooperation Days were held for the third time with the financial support of Kola MMC. Representatives of the Consulate General of the Kingdom of Norway in Murmansk, the Consulate-General of the Russian Federation in Kirkenes, and the municipalities of the Pechengsky District and Sør-Varanger participated.

Dialogue with Stakeholders

While preparing the CSR Report for 2013, the Company continued its practice of holding dialogue with stakeholders in its areas of operation. Three events were held: in November 2013 in Krasnoyarsk, and in February 2014 in Monchegorsk and Norilsk. In addition to the Company’s representatives, representatives of the legislative and executive state power branches and local autonomous bodies, educational institutions and non-profit organisations, public activists, environmentalists, and media participated in them—a total of 100 people.

Meetings with representatives of stakeholders were organised in order to obtain feedback on the events and facts of 2013, which the dialogue participants considered important in view of the impact it had on activity and the decisions made, as well as with respect to recommendations to be included in the CSR Report for 2013.

Representatives of government authorities and local self-government agencies participating in the dialogue in Monchegorsk expressed an interest not only in private-public partnership projects, but also in ensuring expert support from the Company for more efficient functioning of the urban management system. One of the topics discussed was the new support programme of regional public initiatives called “A World of New Possibilities,” which is common to all the Company’s operations areas, and the possibility of organisations from the Murmansk Region participating in it. The dialogue participants also raised specific cooperation issues with educational institutions that represent mutual interest: raising the quality of special education and creating opportunities for the development and professional realisation of young people at their places of residence. They also gave several examples of cooperation with the Company that, in their opinion, should be reflected in the Report, and proposed increasing the awareness of stakeholders about the next non-financial report.

The discussion in Krasnoyarsk,

which took place at a round table called “Strategy Day—Dialogue with Stakeholders,” focused on the new development strategy of OJSC MMC Norilsk Nickel. The event was attended by ministers of the Krasnoyarsk Territory government, deputies of the Legislative Assembly, civil society representatives, experts, and journalists. The Company, which is a major taxpayer and employer in the Krasnoyarsk Territory, is viewed by its directors as a strategic partner. Therefore the development prospects of Norilsk Nickel are of special interest here. Along with the economic aspects, issues relating to the social development of the Company and territory were discussed, which are important both for the government and the population. The prospects for tax payments, cooperative ties, and increasing the participation of partners and suppliers from the Krasnoyarsk Territory in the Company’s modernisation projects were discussed, including by organising training for local suppliers according to purchase procedures. The Company’s representatives confirmed the consistently high level at which social programmes are implemented and presented new approaches and prospects for social activity, as well as the CSR Report for 2012.

Discussion of what the report should contain and how information should be presented aimed at different categories of readers with different levels of preparation and interests was continued at the dialogues in Norilsk.

The dialogue sparked a growing public interest in projects that are being implemented by NGOs, in the information on their results and efficiency assessment, and in information on best practices. The participants recommended giving broader coverage of these projects in the media, preparing separate publications, and dedicating them to the best practices implemented within Company-supported projects. Each of the dialogue participants with cooperation experience with the Company expressed the desire to have it reflected in the report.

The discussions in Norilsk also became a means of obtaining feedback on the Company’s new Charity Programme. The competitive principle for selecting social projects was positively evaluated by the participants. They discussed the possibility of small businesses participating in the competition, as well as involving mass organisations and citizen associations that do not have the status of a legal person in the competition.

The records of the dialogue and proposals of the participants are presented in Appendix 6 of the interactive version of the Report.