Norilsk Nickel has launched a pilot stage of the ESG survey project for suppliers. This is the next stage of improving the supply chain – the company involves suppliers in the sustainable development agenda, identifies and responds to possible risks in a timely manner, the company's press service reported.
Norilsk Nickel has been informing about its approach to the selection of suppliers and the principles of conducting procurement activities since 2008. The data is contained in the annual report and the Sustainability report. Since 2021, the company has also been fulfilling the requirements for a responsible supply chain of mineral raw materials of the guidelines of the Organization for Economic Cooperation and Development (OECD) and the London Metal Exchange.
These requirements, in particular, provide for the publication of a report on the results of supplier inspections," the company said.
For the first time, such a report – for 2021-2022 – was published in May 2023. The company presented the report on the responsible supply chain first among representatives of large Russian business. The document tells about Norilsk Nickel's approach to building a responsible supply chain, the results of inspections of suppliers of mineral raw materials and audits.
"The report contains information about the established management system for the integrated verification of the supply chain of mineral raw materials, the purpose of which is to ensure a sustainable supply chain. The system establishes the procedure for checking suppliers to identify risks associated with human rights violations, money laundering, fraud and corruption.
Its main goal is to ensure and monitor compliance of suppliers' activities with Norilsk Nickel standards and applicable international standards and initiatives," the Norilsk Nickel press service explained.
In addition, the report presents the results of comprehensive inspections of upstream suppliers, carriers and processors of nickel, cobalt and copper-containing mineral raw materials of the group's Russian assets conducted in 2021-2022. According to the results of inspections, risks in the supply chains were not identified.
This year, Norilsk Nickel continues to develop work with suppliers and assess their ESG maturity: the company has expanded the scope for evaluation, including suppliers of goods, works and services in the perimeter. Norilsk Nickel has started the process of ESG-survey of suppliers. To do this, the relevant self-assessment questionnaires were sent to a sample of counterparties.
The preparation of a separate report on the responsible supply chain and further improvement of work with suppliers confirm Norilsk Nickel's commitment to leading international initiatives in the field of responsible mining of mineral raw materials and ensuring a sustainable supply chain (RMI, IRMA, ICMM, JDDS, OECD & CCCMC Guidelines).
The document ensures that the company complies with the requirements of the policy of the London Metal Exchange regarding a responsible approach to the selection of suppliers, and also provides an opportunity for interested parties – investors, experts and rating agencies – to obtain the most complete information for evaluating the company's activities in this area.
"The publication of specialized reports in the field of responsible supply chain corresponds to the best international practice, but it is still a rare phenomenon in Russia – Norilsk Nickel was one of the first to release it. Building a responsible supply chain allows us to involve suppliers in the sustainable development agenda, encourage them to comply with corporate standards in this area, as well as improve the efficiency of procurement activities," said Vladimir Zhukov, Vice President for Investor Relations and Sustainable Development.
Alex Shishlo for Rough&Polished
