Greenhouse gas emissions and carbon footprint of products

Nornickel uses the GHG Protocol methodology to calculate its greenhouse gas emissions (Scope 1 and 2). The calculation covers carbon dioxide (CO₂), nitrous oxide (N₂O), and methane (CH₄). The quantification includes direct and indirect GHG emissions as well as the Company’s estimated prospective emissions related to the implementation of the Sulphur Project at Nadezhda Metallurgical Plant In the reporting year, the Company adjusted the GHG emissions provision for the Sulphur Historically, this value stood at 2.2 mln t of CO₂ equivalent. However, due to changes in plans for the Copper Plant’s Sulphur Project, post‑implementation emissions are now expected to be lower, at 1.2 mln t of CO₂ equivalent (subject to update once the project reaches full capacity). This adjustment, among other factors, was also used to restate Scope 1 and 2 GHG emissions for previous reporting periods..

Across the Nornickel Group, a steady downward trend in GHG emissions has been observed over a four‑year horizon.

In 2024, direct and indirect GHG emissions (Scope 1 and 2) from production and other activities of the Nornickel Group, taking into account the adjustment for the Sulphur Project’s GHG emissions provision, amounted to 8.6 mln t of CO₂ equivalent, including 8.2 mln t of direct emissions Including a GHG emissions provision for the Sulphur Project at Nadezhda Metallurgical Plant and GHG emissions generated from heat and electricity supplies to the public. In 2024, actual direct and indirect (Scope 1 and 2) GHG emissions reached 7.5 mln t of CO₂ equivalent, including Scope 2 GHG emissions at 0.4 mln t of CO₂ equivalent (calculated using the location‑based method) as well as actual emissions from the Sulphur Project at Nadezhda Metallurgical Plant and GHG emissions generated from heat and electricity supplies to the public (the Sulphur Project GHG emissions provision at Nadezhda Metallurgical Plant was determined separately). and 0.4 mln t of indirect emissions.

GHG emissions for the Nornickel Group decreased year‑on‑year in 2024. It should be noted that the Energy Division’s energy enterprise has cut its GHG emissions by more than 2% compared to 2023. The reduction was driven by lower per unit fuel consumption for heat and electricity generation, which resulted from optimised equipment operating modes at CHP plants, as well as favourable weather conditions in the Norilsk Industrial District during the autumn‑winter period. The update of regional CO₂ emission factors for electricity supply within the energy systems of the Murmansk Region and Trans‑Baikal Territory have also contributed to a reduction in Scope 2 GHG emissions. Notably, the Trans‑Baikal Division signed a bilateral power purchase agreement (PPA) with a certified low‑carbon energy supplier (a hydropower plant) for a total of 124.9 mln kWh. This PPA helped reduce Scope 2 GHG emissions by more than 126 kt of CO₂ equivalent in 2024.

Comparison with global metals and mining peers

GHG emissions (downstream and upstream Scope 3)

The Company conducts an annual quantification of Scope 3 emissions that arise outside of Nornickel Group’s operations and are beyond its control. These emissions are categorised as upstream and downstream emissions.

Their quantification follows the recommendations of the GHG Protocol and the IPCC Guidelines for National Greenhouse Gas Inventories.

In 2024, the Company continued to report a quantitative assessment of upstream Scope 3 GHG emissions. Emissions are estimated across all categories of the GHG Protocol. The bulk of upstream Scope 3 emissions was attributable to the purchase of goods and equipment from third‑party suppliers as well as to energy and fuel consumption (to the extent not included in Scope 1 and 2).

Downstream Scope 3 emissions are associated with the transportation of the Company’s products from production assets to consumers and their subsequent processing into finished products.

To improve its Scope 3 emissions quantification methodology, the Company continuously monitors the evolving methodological framework, including international standards developed by ISO and the International Council on Mining and Metals (ICMM), industry associations, and engages with customers to obtain data on emissions released in the processing of sold products.

In 2024, the Company updated its methodology for quantifying other indirect (downstream Scope 3) GHG emissions, incorporating new guidance documents, such as the Scope 3 Emissions Accounting and Reporting Guidance (2023) by the International Council on Mining and Metals (ICMM), ISO 14083:2023, Global Logistics Emissions Council (GLEC) Framework, Scope 3 GHG Emissions in the Nickel Value Chains. A Guide to Determine Nickel‑Specific Scope 3 GHG Emissions by the Nickel Institute, and industry best practices.

The downstream Scope 3 emissions assessment for 2024 covered nickel, copper, palladium, platinum, copper and nickel intermediates, and iron ore concentrate sold outside the Nornickel Group. The bulk of these emissions comes from intermediates sold outside the Group. Emission volumes are influenced by changes in sales volumes, the Group’s product and customer portfolio, and the geographic mix of product sales.

Product carbon footprint

Product carbon footprint assessments for 2024Including the Sulphur Project provision. Group data, including foreign companies of the Polar Division.

The carbon footprints of MMC Norilsk Nickel’s products are calculated in accordance with:

• ISO 14067:2018, ISO 14040:2006, ISO 14044:2006
• GHG Protocol Product Life Cycle Accounting and Reporting Standard methodology
• LME passport guidance – Nickel Institute guidance for nickel producers to calculate their GHG emissions
• the IPA’s guidance: The Carbon Footprint of Platinum Group Metals: A Best Practice Guidance for the Calculation of GHG of Primary Produced PGMs

The scope of the carbon footprint calculation for MMC Norilsk Nickel’s products in 2024 included direct greenhouse gas absorption by tailings.

For more details on this project, please see the Decarbonisation Projects section.