About the Report

The Corporate Social Responsibility Report (hereinafterreferred to as the «CSR Report» or the «Report») is the Company's eleventh public nonfinancial public report. It reflects the results of activities from January 1, 2014, till December 31, 2014. A number of its items contain, the descriptions of mid-term and long-term plans. The Report has been prepared in compliance with GRI G4 Sustainability Reporting Guidelines, the «expanded» version. . The traditional purpose of the Report is informing a wide scope of concerned parties on the Company's strategy and mission, the principles of its sustainable developments, the key events, and practical results of the reporting period, as well as about the impacts of the Norilsk Nickel Group on the interested parties».

Information for the CSR Report was collected both within the framework of the corporate reporting system and upon special information requests that were drawn up for the first time in view of recommendations from the new version of the GRI G4, including the Industry-Specific Appendix for Mining and Metallurgic Enterprises.

In the process of preparing the text of the CSR Report, the coverage of the principal social responsibility areas (themes) provided by Guidance on social responsibility (ISO 26000:2010) was checked.

Special consideration was given to the recommendations of the investment community received on the previous CSR Report.

The 2014 CSR Report does not contain any substantial corrections of indicators and data from the previous periods published in similar reports for the previous periods.

The procedure of rating the importance of the principal themes/aspects of the MMC Norilsk Nickel activities was developed and implemented in compliance with the GRI G4 Guidelines.

A questionnaire survey of internal experts (the Company employees: department directors, administration heads, division heads, managers, and specialists) and external interested parties (the representatives of local authorities, local population, public and environmental organizations, etc.) was performed within the framework of this procedure.

A chart of material subjects/aspects was drawn up on the basis of more than 60 forms with regard to the analysis of media publications about the Group, the results of interaction with interested parties, and the benchmarking of similar foreign companies' reports.

markerEconomic performance indicators
markerEnvironmental performance indicators
markerLabor relations performance indicators
markerPublic relations performance indicators
markerProduct responsibility indicators
markerHuman rights performance indicators

The aspects that got into the top right area (I) were considered material by the working group. (I).

MATERIAL ASPECTS FOR PUBLICATION IN THE REPORT
No. on the Chart Aspect name
1 Economic efficiency
2 Labor markets presence
3 Indirect economic impacts in the regions of operations
6 Energy
7 Water
8 Biodiversity of the territories of operations
9 Emissions
10 Discharge and waste
12 Compliance requirements (compliance with Russian and international law in the field of environmental protection)
13 Environmental impact of the means of transportation used by the Company
14 Environment protection costs and investments
16 Procedures of filing complaints regarding environmental problems
17 Employment and Company staff
19 Workplace health and safety
20 Training and education
24 Procedures of filing complaints regarding labor relations practice
25 Practices of interaction with the local communities
26 Corruption control
29 Statutory compliance
31 Procedures of filing complaints regarding social impact
32 Emergency preparedness
35 Shutdown plans
40 Statutory compliance of the Company products and services
44 Freedom of association and collective bargaining for the staff
48 The rights of indigenous minorities

Pursuant to GRI G4 Guidelines, the Report gave the maximum consideration to publishing information on material aspects.

The boundaries of publishing information on material aspects (see Appendix 2) are so determined that the Report describes all of the most material impacts of the Norilsk Nickel Group. The boundaries of information disclosure did not undergo any substantial changes as compared to the previous reporting period. The indicators of all the companies within the boundaries are totalized in respect of each aspect. In a number of cases, the principle of importance is caused by emphasizing published information on individual companies of the Group. The information disclosure boundaries in the CSR Report and the Consolidated IFRS statements do not differ in a substantial way.

A questionnaire survey of the representatives of the Company and external interested party was also performed to determine the information disclosure boundaries. The complete list of organizations belonging to the MMC Norilsk Nickel circuit was used as the basis. Within the framework of the survey, the respondents were asked to assess the importance of each material aspect:

1) for all the Group enterprises;

2) for some Group facilities/enterprises;

3) for enterprises outside the Group.

The boundaries of material aspects within the Group were described in Appendix 2. The «Workplace Safety and Health» subject was rated as material for the enterprises outside the Group (contractor organizations).

In respect of this subject, information about injury rate among the employees of contractor organizations working at the Group facilities was disclosed in the chapter «Personnel and Social Policy».

With the purpose of improving its quality, the CSR Report has traditionally undergone the procedure of public endorsement by the Nonfinancial Reporting Council of the RUIE. The Statement of its results is presented in Appendix 7.

The 2014 CSR Report underwent the procedure of an external independent audit. A professional audit organization was chosen for this purpose as a contractor as a result of a tender procedure. The audit report is presented in Appendix 7.

Contacts

Svetlana V. Ivchenko, Director, Social Policy Department

Address: 1/15 Krasnogvardeysky Proyezd,
Moscow, 123100, Russia
Telephone: (495) 786-83-20
Fax: (495) 797-86-13
E-mail: social_report@nornik.ru

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