Why climate change issues are important to the Company
Improving the reliability of facility operations
Global warming issues are of particular relevance to Nornickel, as the Company’s core production and energy assets are located within the Arctic zone. According to the scientific community, the average surface temperatures in the Arctic are rising three to four times faster than the global average, posing additional operational risks. In the Company’s view, the primary threat stems from permafrost thawing in the Arctic, which undermines the stability of building and structure foundations. To assess the impact of permafrost thawing processes, Nornickel has deployed a monitoring system. For more details, please see the Permafrost Monitoring sub‑section.
Supporting global energy transition
A report by the Intergovernmental Panel on Climate Change (IPCC)IPCC, 2023: Climate Change 2023: Synthesis Report. Summary for Policymakers. shows that achieving the Paris Agreement goal will require a drastic reduction in GHG emissions by 2050. The greatest potential for GHG emission reductions has been identified in the energy, transport, and construction sectors.
The International Energy Agency (IEA) has identifiedMineral requirements for clean energy transitions – The Role of Critical Minerals in Clean Energy Transitions – Analysis – IEA the following metals and minerals as critical for the global energy transition.
| Nornickel’s metals | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Copper | Nickel | Cobalt | PGMs | Lithium | REE | Chromium | Zinc | Aluminium | |
| Solar power | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Wind power | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Hydropower | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Concentrated solar power systems | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Bioenergy | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Geothermal power | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Nuclear power | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Power transmission lines | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Electric vehicles and batteries | ● | ● | ● | ● | ● | ● | ● | ● | ● |
| Hydrogen energy | ● | ● | ● | ● | ● | ● | ● | ● | ● |
Relative importance of metals and minerals for various clean energy technologies:
High: ●
Medium: ●
Low: ●
Position in the industryFor palladium and platinum markets – in terms of refined metals production (including tolling arrangements), for the copper market – in terms of mining production (globally). For the nickel market – in terms of metal nickel production.
In addition, Nornickel is expanding its portfolio of innovative products to support the low‑carbon transition. The Company has established the Palladium Centre, which develops new palladium‑based products for hydrogen and solar energy, aviation fuel, and electrified transport. In the long term, more than 100 new palladium‑containing materials are planned to be brought to market.
The Battery Technology Centre was also established to develop nickel‑containing cathode active materials (CAMs) – a key component in modern batteries. The first samples of cathode materials for NCM 811+ chemistry have already been produced, with plans for further product innovation in place. For more details, please see the Product Portfolio Diversification section.