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Russia’s Nornickel earmarks $5.5B to cut carbon emissions

  • April 29, 2021

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(Kitco News) – Russia’s Norilsk Nickel, the world’s largest refined nickel and palladium producer, today announced the results of its sustainability efforts in 2020.

According to the company’s statement, Nornickel has retained leadership in the global metals and mining industry in terms of industrial health and safety. The injury rate has fallen to a record level. The Lost Time Injury Frequency Rate (LTIFR) reduced further to 0.21 per 1,000,000 man-hours in 2020 from 0.32 in 2019. The total number of occupational accidents decreased 32% year-on-year.

As part of its climate change strategy, Nornickel intends to maintain greenhouse gas emissions (Scope 1 and 2) at the 2020 level in absolute terms of less than 10 mt of CO2-equivalent while aiming to increase production volumes by 25–30%.

To implement this strategy, Nornickel said it is planning capex of over USD 5.5 bn, of which USD 3.6 bn is earmarked for the implementation of an unprecedented Sulphur Programme 2.0, which targets a 95% reduction in sulphur dioxide emissions by 2030.

Nornickel added that overall, the company had a significant progress in reducing the intensity of its environmental impact in 2020. The intensity of pollutant emissions decreased by 20.7% from 2019, while the intensity of greenhouse gas emissions reduced by 23.3%.

Nornickel noted that its sustainable development efforts continued to be recognised by international experts and leading ESG rating agencies. For instance, EcoVadis raised the company’s ESG rating to 48 points in 2021 from 33 (out of 100) in 2020.

President Vladimir Potanin commented, “The challenges we faced in 2020 confirmed our strategic adherence to the principles and goals of sustainable development, in particular, the principles of the UN Global Compact.”

“A quick and well-coordinated response to the unprecedented fuel spill in Norilsk helped to prevent a major environmental disaster in the Arctic. The company has learned its lessons, improved its risk management system and set new goals to mitigate its environmental impact,” concluded Potanin.

By Vladimir Basov

For Kitco News

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