Requirements for suppliers to respect human rights as part of supply chain responsibility commitments

CHRB B.1.4.b, B.1.7, IRMA

The focus on ESG matters, including respecting human rights, is made not only within the Company but at each and every stage of the life cycle: Nornickel makes sure that the sustainability principles are observed in its relations with mineral suppliers and delivers high-quality products promoting innovations in its relations with consumers.

As regards responsible procurement, the Company has developed the Responsible Sourcing Policy, the Supplier Code of Conduct and other by-lawsAll of the Company’s by-laws are available on its official website. and strictly abides by their provisions. If suppliers refuse to comply with the Code or, failing to do so, they do not clearly demonstrate their intention to address the deficiencies, the Company may reconsider its relationship with such suppliers.

In 2022, a provision on ESG compliance, which inter alia includes human rights, was added to 1,313 contracts and master agreements with suppliers.

To monitor suppliers’ compliance with the requirements of the Supplier Code of Conduct and select the best suppliers based on the ESG criteria, Nornickel has introduced a special due diligence management system that helps assess suppliers against the ESG criteria, including those in human rights, and also check the extent of the suppliers’ compliance. No risks were identified as a result of due diligence of mineral suppliers in 2022.

In 2021, Kola MMC became the first company in Russia that underwent an independent external audit for compliance with the RMI’s ESG Standard, which confirmed that the Company’s production is in full compliance with the national laws, health and safety requirements, and industrial, fire and environmental safety standards. In addition, the audit checked the human rights due diligence system. The audit reported no critical negative findings that would require an immediate response, and Kola MMC was reaffirmed as RMI Active in cobalt and nickelValid from 22 June 2022 to 31 January 2023..

In 2023, the Company plans to introduce the Supplier Self-Assessment Questionnaire and the respective training for suppliers in the supply chain.