FOCUS. COMMITMENT. IMPACT. Analyst and Investor Day ESG presentation 28 April 2020
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 2 TABLE OF CONTENTS Introduction 01 Tracey Kerr, Independent Non-Executive Director Recognition of our efforts 02 Daria Goncharova, Chief Sustainability Officer Safety 03 Vitaly Nesis, Group Chief Executive Officer Climate management 04 Daria Goncharova, Chief Sustainability Officer Water 05 Daria Goncharova, Chief Sustainability Officer Tailings Storage Facilities 06 Daria Goncharova, Chief Sustainability Officer Communities 07 Daria Goncharova, Chief Sustainability Officer
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 01 INTRODUCTION
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 4 A RESPONSIBLE BUSINESS IS A SUCCESSFUL BUSINESS Our strategic objectives within the sustainability pillar 1 2 Reduce ce env nvironmen nmental tal Mainta tain in socia ial l lice cense nse to foot otpr prin int operat ate As temporary stewards of valuable We bring a lasting positive impact to communities through creating land, we have a deep responsibility to conserve it for future jobs and supply chain opportunities, while making generations. substantial tax contributions 3 4 Ensure re inclusi usive growth th Further r deve velop p best st-in in-cla class ss ESG practic ctices As well as keeping more than 11,000 people safe and healthy at Our sustainability governance is work, we also ensure fair and underpinned by a formal inclusive working environments commitment from the top and ESG performance-related pay
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 5 SHARING THE VALUE THAT WE CREATE Our capitals and value distribution Financial capital Business capital Human capital Intellectual capital Natural capital Social and relationship capital $39 397m 7m $35m $35m $1 $15m 5m wages, salaries and other environmental community investments benefits for employees investments $233m 233m $1 $1.2m .2m $1 $155m 55m invested in training sustainability-linked loans taxes paid in the portfolio * All numbers are for the full year 2019
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 6 MATERIAL ISSUES Focusing on topics material to Polymetal and stakeholders Material issues Targets and indicators Performance in 2019 $233m taxes paid Transparent tax disclosure Socio-ec econom omic ic 96% local nationals among employees Ensuring local hiring and va value e creati tion on procurement 56% local purchasing Zero fatalities 2 employee fatalities and 1 contractor fatality Health lth and safet ety LTIFR below 0.2 0.19 LTIFR Good community relationships Zero conflicts Commun unit ities ies Social investment and $15m invested, 588 inquires received and engagement resolved 5.8% voluntary turnover Keeping turnover rate 21% of employees are women People le Improving equality and diversity 39% of female qualified personnel and 22% of female mid-level managers
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 7 MATERIAL ISSUES (CONTINUED) Focusing on topics material to Polymetal and stakeholders Material issues Targets and indicators Performance in 2019 26% y-o-y reduction of fresh water use Gradually decreasing fresh water Water er use 87% of water reused/recycled No major environmental incidents Zero environmental incidents Env nvir iron onment mental Reduce direct impacts on manageme ement nt Environmental programme at each site biodiversity 14% reduction of carbon footprint of ounce of GE Decrease of GHG emissions and Climate management system implemented at 100% energy consumption Clima mate change of operating sites with relevant staff training Improving climate reporting Assessed Scope 3 emissions 15% of dry tailings storage by 2024 10% of tailings dry stacked Waste Reuse of at least 20% of waste rock 14% of waste reused Intensifying engagement with 7,698 suppliers audited Supplier iers stakeholders on responsible supply and partner tners Increased due diligence requirements chain Ensuring full legal compliance $8 thousand in fines for two labour cases Compliance liance Zero penalties for non-compliance $1 thousand in environmental fines
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 8 CONTRIBUTING TO UN SUSTAINABLE DEVELOPMENT GOALS We align our impacts with UN’s 2030 Agenda People Environment, Economy Human rights Land use development health and safety Contribution to Employment and Industry role model Utilization and Improved national and local decent work in indigenous diffusion of infrastructure, income conditions population innovative and telecommunications, engagement and environmentally road network, power Increase in export Employee skill social acceptance sound technologies and water supplies, and GDP development and improved access to further education Multi-regional focal Dissemination of Poverty alleviation health and education point for creation of best practices of equal opportunities monitoring and and non- assessments, discriminatory promoting risks leadership mitigation measures among sector peers and supply chain
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 9 KEY SUSTAINABILITY RISKS We identify and mitigate risks across our material issues Health and safety Environmental Legal compliance Supply chain Political Injuries (severe, Environmental Compliance with Relations with Political instability minor, near-misses) compliance and national and suppliers: failure and civil unrest incidents international to meet Fatalities legislation Polymetal’s Incidents at the requirements, tailings storage breach of tender facility procedures and Incidents at the delays in deliveries water facility Soil or water pollution (spills)
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 10 COVID-19 UPDATE Keeping employees safe at all times Basic measures Ensuring epidemic preparedness Masks, IR thermometers and rapid-response Response plans in case of suspected COVID-19 COVID-19 test kits supply Some living facilities equipped for quarantine Intensive cleaning and disinfection services, Site medical facilities switched to 24/7 operation, hand sanitizers additional equipment and transportation Germicidal lamps, ozone generators and air Stronger cooperation with local hospitals and the recirculators installed in welfare facilities Ministry of Health on epidemic issues Measuring and tracking temperature of all Local medical organizations and hospitals support workers and contractors Office employees switched to remote work Engagement and communication Shifts re-schedule to ensure a 14-day quarantine period and maintain the minimum number of Hotline and COVID-19 coordinators at each site workers in each team Updates via intranet, corporate newspaper, information desks, meetings Isolated facilities for workers arriving for a shift Q&A articles covering shift schedule, payroll and Same monitoring and isolation measures for our financial support issues contractors Mental health online training and engagement Employees volunteering to provide vulnerable groups with essential products
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 02 RECOGNITION OF OUR EFFORTS
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 12 SUSTAINABILITY MILESTONES 2007 Listing and first Sustainability report publication • 2009 Signed the UN Global Compact • GRI standards applied • 2013 Environmental management system certified under ISO 140001 • Safety and Sustainability Committee established • 2015 H&S management system certified by OHSAS (now ISO 45001) • Joined STOXX ESG Leaders index • 2016 Signed the International Cyanide Management Code (ICMC) • 1st in environmental responsibility rating for MM companies by WWF and UNDP • $140m agreement with EBRD including ESAP 2017 • 1st solar plant • Ranked 1st among 55 peers worldwide by Sustainalytics, 100 th percentile • 2018 Included into the Dow Jones Sustainability Index • Sustainability-linked loan with ING • Entered MSCI ESG Leaders index • 2019 Sustainability KPIs linked loan with SG • Sustainability/ESG remuneration KPIs for management • 2020
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 13 SUSTAINABILITY REPORTING AT POLYMETAL Applying international standards to our disclosures STANDARD REPORTING STATUS Annual reporting since 2013 GRI Data assurance by PwC Metals & Mining Sustainability Accounting SASB First time applied in SR 2019 Climate Change annual response since 2015 CDP Score 2019 – D (2018: C) Gap analysis of climate related disclosures TCFD First disclosure of Metrics and Targets, Risk Management, Strategy and Governance in SR 2019
POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 14 ESG LEADERSHIP RECOGNITION OF OUR EFFORTS TO DATE ESG rating A A (improvement from BBB) Firs rst t and only Russian member Member of ESG Le Leader ers s index ex 10% y-o-y score improvement ESG score A- (improvement from B+) st among 55 precious metals 1 st companies 100 percentile 4% % y-o-y score improvement ESG score С + (improvement from C) Score linked to the loan margin
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