2.2. Assessment of the suppliers' sustainability practices: results

In the reporting year, the Company conducted a pilot assessment of selected largest suppliersLargest external suppliers of the Group’s Russian assets in terms of payment amounts in 2022. of goods, works and services. The selection accounting for around 14% of total procurement by the Group's Russian business units including the suppliers of materials and equipment, as well as service suppliers (80% and 20%, respectively). All suppliers filled out the questionnaire.

The supplier selection covers 14% of purchases
Questionnaire section Assessment results
Environmental protection
  • 45% of suppliers measure greenhouse gas (GHG) emissions
  • 55% of suppliers manage waste and apply techniques to save energy and use water resources sustainably
Human rights
  • 91% of suppliers pay salaries in a timely manner
  • 55% of surveyed suppliers have a grievance mechanism in place
  • 64% of suppliers do not discriminate as confirmed by documents
Occupational health and safety (OHS)
  • 100% of suppliers recorded zero workplace fatalities in 2022
  • 91% of suppliers organised employee training in occupational health and safety
  • 100% of suppliers provide employees with personal protective equipment
Corporate governance
  • 64% and 82% of suppliers adopted personal data protection and anti‑corruption policies, respectively
  • 45% of surveyed suppliers have a responsible sourcing policy in place and check their suppliers for compliance with sustainability principles
Overall ESG maturity of suppliers, %
Environment,  %
Human rights,  %
OHS,  %
Corporate governance,  %

As most of the surveyed suppliers are private companies, regulatory requirements and stakeholder expectations with respect to their non‑financial reporting are lower as compared to public companies. Even though there are no mandatory requirements, survey results confirm their fairly high maturity as regards environmental protection, social responsibility, and corporate governance (ESG).

In 2024, after reviewing the pilot survey results, the Company will focus on expanding the pool of surveyed suppliers. Going forward, Nornickel plans to develop the Questionnaire by improving its structure and questions based on the pilot results, regulatory recommendations, and rating agency expectations.