Climate‑related risks and opportunities

Approaches to assessing climate‑related risks and opportunities

TCFD Rb, TCFD Rc, IFRS S2 25a, IFRS S2 25a (ii), IFRS S2 25 (b)

Guided by the TCFD Recommendations, IFRS S2, COSO ERM Framework, and the Environmental and Climate Change Strategy, Nornickel is building procedures for managing climate‑related risks and opportunities.

The Company follows the TCFD and IFRS S2 classification, which identifies two key categories of risks and opportunities:

  • Physical risks, associated with extreme weather events (acute risks) or lasting changes in weather patterns (chronic risks)
  • Transition risks and opportunities, associated with evolving market, regulatory, technological, and political environment as the global economy transitions to a low‑carbon model
IFRS S2 10a, IFRS S2 10b

The Company’s assets are located in regions that have long been affected by climate change, which is reflected in its current technical and production risks. The Company continues to integrate climate‑related risk identification and assessment procedures into the corporate risk management system. This involves improving the rules for managing both operational and longer‑horizon risks, as governed by PJSC MMC Norilsk Nickel’s Procedure Rules for Risk Management.

Within the corporate risk management framework, physical risks, as well as transition risks and opportunities, may be treated either as standalone risks and opportunities or as contributing factors to risks already identified.