CONSOLIDATED
REPORT 2023
Energized
for action
Contents
8–69
70–243
244
332–344
01
Strategic
report
10
14
16
18
20
22
24
28
42
64
Key events and indicators
Our presence and scale
Industry positioning
Statement from the Chairman
of the Board of Directors
Statement from the Chief
Executive Officer
Business model
Strategy
Business review
Financial review
Investment programme
and modernisation
№1
En+ Group is the
largest aluminium
producer in the world
(excluding China)
For more details on the Metals
segment, see
page 30
02
Sustainable
development
76
79
80
86
86
Sustainability management
Materiality assessment
Contribution to Sustainable
Development Goals
Climate and environment
Climate change
100
Energy management
104
Environmental protection
126
People
126
138
153
Occupational health and safety
Employees
Contribution to local communities
168
Governance
168
Corporate governance
196
Information for shareholders
and investors
200
Internal control and risk management
208
Corporate ethics and compliance
214
Stakeholder engagement
226
Responsible business practices
03
Financial
Statement
246
Consolidated Financial
Statement
04
Appendices
330
Additional ESG data
386
Glossary
392
Contacts
Appendices
are provided as a separate document
Appendix 1.
Report on Compliance with the Principles
and Recommendations of the Russian
Corporate Governance Code
Appendix 2.
List of the Company’s Branches
For more details on the
Company, visit our webpage at
enplusgroup.com/en/
№1
independent hydropower
producer globally
For more details on the Power
segment, see
page 38
CONSOLIDATED REPORT 202332 About the Report
GRI: 2-3
En+ Group presents its Consolidated Report (the “Report”), an annual document for
a wide range of stakeholders that reflects the Company’s key financial metrics and
sustainability performance results for the period from 1 January to 31 December 2023
(the “Reporting Period”).
En+ Group regularly reports its sustainability performance, in the
form of Sustainability Reports until 2022 and Consolidated Reports
afterwards.
To ensure credible disclosure, En+ Group prepared its consolidated
financial statements for the year ended 31 December 2023 in
accordance with IFRS, including an auditor’s report, and engaged B1
as an independent practioners to verify the sustainability data.
GRI: 2-5
By publishing this Report, En+ Group reiterates its commitment
to transparency as the document presents the most reliable and
complete information about the Company. The Report contains
information about our business model, strategy, investment
programme, operational and financial performance, consolidated
financial statements, as well as ESG performance. The Report also
describes how the Company contributes to the UN Sustainable
Development Goals (SDGs) and complies with the principles
of the UN Global Compact. The Report includes information
that the Company believes to be material for stakeholders and
the business.
The independent practitioner’s assurance
report on the Sustainable Development section
is available on page 384 of this Report.
GRI 2-14
The Report was preliminarily approved by the Company’s Board
of Directors on 25 April 2024 (Minutes №73).
The Report is aligned with the following requirements and recommendations:
z Federal Law No. 39-FZ On the Securities Market, dated
22 April 1996
z EU Taxonomy for Sustainable Finance metrics
z London Stock Exchange (LSE) requirements and
z Regulations of the Bank of Russia No. 714-P On Information
recommendations
Disclosure by Issuers of Issue-Grade Securities, dated
27 March 2020
z The Corporate Governance Code recommended for use by joint
stock companies by the Bank of Russia’s Letter No. 06-52/2463
dated 10 April 2014 (the “Russian Corporate Governance Code”)
z The requirements of Directive 2014/95/EU implemented through
the UK Companies, Partnerships and Groups (Accounts and Non-
Financial Reporting) Regulations 2016 No. 1245
z The Aluminium Carbon Footprint Technical Support Document
z A Guide for Issuers: How to Comply with Best Sustainability
z The Listing Rules (the “LRs”) published by the UK’s Financial
Practices released by the Moscow Exchange
Conduct Authority (the “FCA”) as a competent authority under
the Financial Services and Markets Act 2000 (the “FSMA”, as
amended and supplemented), and the FCA’s Disclosure and
Transparency Rules (the “DTRs”); the LRs and the DTRs collectively
are referred to as the “Rules” unless otherwise stated
z Global Reporting Initiative (GRI) Standards
z Standards of the Sustainability Accounting Standards Board
(SASB), including standards for the Metals & Mining and
the Electric Utilities & Power Generators industries
z Streamlined Energy and Carbon Reporting (SECR)
z IFRS¹ sustainability disclosure standards
z Technical guidance to comply with the Streamlined Energy and
Carbon Reporting (SECR)
z Guidelines provided by Russia’s Ministry of Economic
Development for preparing sustainability reports
z Voluntary ESG standard for the energy sector devised by the non-
profit partnership Market Council
z Bank of Russia’s recommendations for public joint stock
companies to disclose non-financial information related to their
activities
z Bank of Russia’s recommendations on ESG rating methodology
z Metrics tracked by key ESG ratings
GRI 2-4
To ensure data comparability, the Company’s material
performance metrics are provided for the last three years
(2021–2023). There were no significant changes in the
measurement methodology for the metrics in the Reporting
Period. Nevertheless, the Report contains some restatements
of information from previous years. Comments on the
restatements and updated methodologies are included
in the text.
Due to rounding, some totals in the tables, charts, and
diagrams in this Report may not correspond with the
sum of the separate figures. This Report may also contain
discrepancies in the calculation of shares, percentages, and
total amounts as a result of different rounding methods used.
Reporting boundaries
GRI 2-1, 2-2
In this Consolidated Report, the terms “En+”, “En+ Group”,
“EN+ GROUP”, or the “Company” in various forms mean EN+
GROUP IPJSC and its subsidiaries. Their performance results
are presented in the Company’s consolidated financial
statements prepared in accordance with International
Financial Reporting Standards (IFRS). The Sustainable
Development and Additional ESG Data sections include
performance results of the Company and its subsidiaries that
are included in the Group’s IFRS consolidated financial
statements and have significant ESG impact.
The Report reflects information about the Group’s performance in
two segments, Metals (including BoAZ) and Power. The Queensland
Alumina Limited joint venture (Australia) is excluded from the
reporting boundaries due to the ban on exports of alumina and
bauxite to Russia imposed by the Australian government in
April 2022. Data on Nikolaev alumina production are excluded
from the reporting perimeter due to the suspension of production.
Occupational health and safety data of KraMZ LLC and Strikeforce
Mining and Resources PLC (SMR) were disclosed within the Metals
segment reporting boundaries.
Boundaries of the 2023 Report 2
METALS SEGMENT
56.88
%
shareholding
POWER SEGMENT
100
%
shareholding
100
%
consolidation
in the Report
100
%
consolidation
in the Report
Recognition of the 2022 Consolidated Report
1
place
Secured first place in the Visionary
Leaders in Change Management
awards in three categories: Best
Sustainability Report Under Non-
Financial Reporting Standards, Best
Economic Impact Disclosure, and
Best Social Impact Disclosure.
2
place
Awarded second place in the Best
Annual Report of a Company
with a RUB 200 bn+ Market Cap
category at the 26th Moscow
Exchange Annual Report
Contest 2023.
Certificate of Public Assurance of the
Corporate Non-Financial Report.
1
To review the standards and partially restructure the Report’s thematic sections. Specific IFRS S2 components are disclosed in the Climate and Energy Efficiency
Leadership section.
2 Unless otherwise stated, the Report covers the Group business units listed below.
4
5
CONSOLIDATED REPORT 2023Более подробно ознакомиться с Климатическими отчетами за 2021, 2022 и 2023 годы можно на сайте Компании.
UPDATED
LOGO
OUR NEW
MOTTO
VALUES
OF EN+
In 2023 En+ Group
carried out a rebranding,
the results of which will
now be presented.
We are confident that the rebrand will provide a
powerful impetus for further growth and inspire our
team to rally behind common goals. At the same time,
we hope that it will enable us to strengthen our culture
that is built around the values shared by every member
of our team.
En+ brings together the energy of the elements, the
power of new ideas, and human will to enhance the
impact of positive change. Our ideas are shared by
thousands of committed individuals who are willing
and ready to change the world around them. Together,
we are charting new horizons and opportunities and
bringing the future closer, not in words but in deeds.
Focussing
on results
Looking
to the future
1
2
3
Hybrid perovskites
for solar cell applications
Cryogenic tank containers for
transporting liquid hydrogen
Innovative inert anode
technology with the world’s
lowest carbon footprint
En+ aims all its efforts towards
achieving strong results
85.2
GW
electricity generation
+1.5% y-o-y
3,848
kt
aluminium production
+0.3% y-o-y
En+ continuously improves process
reliability and safety to ensure consistent
operating results
12
5,948
ths Gj
Health and safety audits
carried out
Energy savings through
energy efficiency measures
En+ engages its people
on operational transformation
100
%
of new employees
completed business
system training
86.2
USD
mn
benefit from the
implementation of
employee suggestions
to improve production
processes
6
6
energized
for action
emphasises the practical nature of En+’s activities:
an approach focussed primarily on productivity and
achieving results.
Accelerated
development
Sense of
belonging
High
energy
En+ is consistently implementing
measures to achieve carbon neutrality
by 2050
− 35
%
by 2035 En+’s
updated medium-term
climate target
vs 2018
En+ published its second
Pathway to Net Zero
Progress Report
Developing
the regions of operation
En+ invests in its regions of operation
USD 62.3
mn
social investments
USD 3.9
mn
investments by En+
until 2025 within
public-private partnership
projects
En+ invests in future generations
En+ contributes to regional economies
7
Multilabs built to promote
engineering and IT
education
265
students employed after
graduation from targeted
training programmes
from 2013 to 2023
USD 111.4
mn
spending on employee's
welfare
62
%
share of purchases
from local suppliers
1,171
school students
from >100 schools joined the Energy School project
aimed at promoting careers in power engineering
491
USD
mn
payments to governments
RUB 4.2 billion1
1 Calculated based on the 2023 average USD/RUB exchange rate
of RUB 85.25 per dollar.
7
CONSOLIDATED REPORT 2023
01 04
Strategic
report
10
14
16
18
20
22
24
28
42
64
Key events and indicators
Our presence and scale
Industry positioning
Statement from the Chairman
of the Board of Directors
Statement from the Chief
Executive Officer
Business model
Strategy
Business review
Financial review
Investment programme
and modernisation
STRATEGIC REPORTCONSOLIDATED REPORT 202398 Key figures
Current geopolitical tensions and new economic restrictions are
resulting in volatility in the financial, commodities, and currency
markets, as well as in changes in supply chains and refusal of
certain suppliers to fulfil previously agreed upon obligations.
Nevertheless, the Company has leveraged its effective
management model to quickly restructure raw-material supplies
and logistics operations as well as successfully diversify sales
channels.
USD14,648
mn
En+ Group’s 2023 revenue
Operational performance
POWER SEGMENT
Total electricity production1, TWh
HPPs
CHPs
68.8
69.0
77.7
2023
2022
2021
Heat generation, mn Gcal
2023
2022
2021
16.4
14.9
12.7
85.2
83.9
90.4
27.4
27.6
28.5
2023
2024
z En+ Group presented its second report detailing progress
z En+ Group’s Board of Directors approved
towards carbon neutrality. In response to current
circumstances, the Company announced adjustments
to its medium-term goal, extending the target year
for reducing greenhouse gas emissions by 35% from 2030
to 2035. The report was presented as part of the En+
Group Net Zero Day.
z RUSAL and the Government of the Leningrad Region
signed an agreement at the 26th St. Petersburg
International Economic Forum to jointly implement
a project for the construction and enhancement
of infrastructure for a state-of-the-art alumina refinery.
z On the sidelines of the Eastern Economic Forum, En+
Group signed agreements with the Russian Far East
and Arctic Development Corporation, the Government
of the Amur Region, and China Energy Investment
Corporation to collaborate together on a project
to construct a 1,058 MW wind farm in the region.
z ACRA affirmed IPJSC En+ Group’s credit rating of A-(ru)
and upgraded the outlook to positive.
the appointment of Mikhail Khardikov as CEO
of the Company effective 1 January 2024, succeeding
Vladimir Kiryukhin, who retired from the position
effective 31 December 2023.
z The Expert RA agency assigned En+ Group ESG-II(b)
rating (ESG-A according to the Bank of Russia’s scale).
The rating signifies a very high level of alignment with
sustainability considerations in critical decision-making
processes. The rating outlook remains stable.
z RUSAL’s first plant successfully implemented a pilot
project to produce recycled aluminium.
Operational performance
METALS SEGMENT
Aluminium production and sales, kt
Aluminium production
Aluminium sales
2023
2022
2021
3,848
4,153
3,835
3,896
3,764
3,904
ESG-A
ESG rating from the Expert RA agency
according to the Bank of Russia’s scale
(or ESG-II(b))
For more details, see Business Review
pages 28-41
Financial performance
Power segment
Metals segment
Revenue, USD mn
Net profit, USD mn
Adjusted EBITDA2, USD mn
Capital expenditure, USD mn
Adjusted EBITDA margin, %
3,587
12,213
355
282
1,292
786
For more details, see Financial
Review
pages 42-63
2023
2022
2021
14,648
2023
3,885
13,974
384
1,793
16,549
2022
3,138
11,994
374
3,225
14,126
2021
716
1,846
3,534
2023
2022
2021
1,254
2,028
1,172
2,893
2,157
2023
3,119
2022
394
474
321
1,056
1,239
1,192
1,448
2023
1,711
2022
3,992
2021
1,513
2021
14.7%
18.8%
28.3%
1
Excluding Onda HPP (with the installed capacity of 0.08 GW), located in the European part of Russia, leased to RUSAL since October 2014.
and equipment for the relevant period.
2 Adjusted EBITDA for any period represents the operating results adjusted for amortisation and depreciation, impairment charges, and gain/loss on disposal of property, plant
10
11
CONSOLIDATED REPORT 2023STRATEGIC REPORT Key figures
E SEnvironmental
Social
2.3
t of CO2e/t Al
28.4
%
G
Governance
66
%
ALLOW aluminium’s carbon footprint
Scope 1 and 2
31
%
Share of ALLOW, our low-carbon aluminium.
in the aluminium's total sales volume for 2023
USD 207
mn
Environmental investments
RUB 17.6 bn1
68
%
of total waste reused or recycled
77
%
Share of reused and recycled water
18
ASI-certified plants
of employees are women
of directors are independent as at 31 December 2023
0.76
Lost Time Injury Frequency Rate (LTIFR)
per 1 million hours worked
85
%
of employees covered by collective bargaining
agreements
USD 62.3
mn
social investments
RUB 5.2 bn1
323
employees
have taken advantage of the preferential
mortgage lending programme
↑ 14
%
average salary increase for employees
33
%
female representation on the Board of Directors as at
31 December 2023
> 80
%
of employees trained on anti-corruption
374
employee reports received by the Signal hotline
62
%
share of purchases from local suppliers
USD 86.2
mn
total economic benefit from the implementation of
business system projects and suggestions
RUB 7.3 bn1
ESG RATINGS
ESG RANKINGS AND INDICES
ESG AWARDS
Sustainalytics
as at 31 December 2023
Expert RA ESG rating
ISS ESG’s E&S Quality Disclosure Score
in 2023
38.2
1
100
“High risk”
12
ESG-A
according to the Bank
of Russia’s scale (or
ESG-II(b))
1
2
3
4
5
6
7
8
9
10
SOCIAL RATING
1
2
3
4
5
6
7
8
9
10
“GOOD”
“EXCELLENT”
National Rating Agency
Expert RA
National credit ratings
Third round finalist
One of the leaders in the ESG
ranking of Russian industrial
companies
One of the leaders in the
ESG transparency ranking
among Russian companies
and banks. The Company was an
award winner in the High Level
of ESG Transparency category
High level in the ESG Index of
Russian Business
of the Responsible Business
Leaders national award
ENVIRONMENTAL RATING
1 Calculated based on the 2023 average USD/RUB exchange rate of RUB 85.25 per dollar.
13
CONSOLIDATED REPORT 2023STRATEGIC REPORT Our presence
and scale
№ 1
En+ Group is the largest producer of
low-carbon aluminium globally outside
of China
5.5
%
68.8
TWh
19.5
GW
of the world’s aluminium production
Low-carbon hydropower production
Total installed electrical capacity 6
GRI: 2-1
En+ Group is the world’s largest
producer of low-carbon aluminium.
The Group leverages the opportunities
stemming from its well-established
presence spanning five continents and
a strong operational hub in Siberia,
combining the assets of both its Metals
and Power segments.
The Group’s Metals segment benefits
from well-diversified sales channels,
enabling efficient access and operations
across all key aluminium markets. The
Group’s market research and analytical
capabilities contribute significantly to
its long-term operational and financial
planning.
The Power segment manages Siberia’s
largest and most cost-efficient network
of power plants, providing efficient and
reliable service to its key customers
in the region, including the largest
smelters operated by our Metals
segment.
USD 14,648
mn
En+ Group’s 2023 revenue 5
REVENUE BY REGION
42.6%
CIS
30.1%
Asia
20.1%
Europe
7.2%
Other
Sweden
Russia
Ireland
Germany
Armenia
Italy 4
REVENUE BY PRODUCT
Guinea
Jamaica
67.8%
Primary aluminium and alloys
11.2%
Electricity
5.9%
Semi-finished products and foil
3.5%
Alumina and bauxite
3.2%
Heat
8.4%
Other
Guyana
Nigeria7
METALS SEGMENT ASSETS
POWER SEGMENT ASSETS
11
8
7
aluminium smelters1
alumina refineries2
bauxite mines
5
HPP 6
15
CHP
Abakan solar power plant
Australia9
TOTAL
CAPACITY
4.2 mtpa
9.0 mtpa 3
22.0 mtpa
TOTAL
CAPACITY
15.2 GW6
4.3 GW
5.2 MW
PRODUCTION
LEVEL IN 2023
3.8 mt
5.1 mt
13.4 mt
PRODUCTION
LEVEL IN 2023
68.8 TWh8
16.4 TWh
6.0 GWh
Excluding Boguchany Aluminium Smelter (BoAZ), a joint 50/50 project of RUSAL and strategic partner.
1
2 Eurallumina in Italy is mothballed. Since March 2022, production at Nikolaev (Ukraine) has been suspended. Moreover, the Company owns a 20% interest in Queensland
Alumina Limited, located in Australia. Since April 2022, the Australian government has banned alumina and bauxite exports to Russia.
Including the capacity of Queensland Alumina Ltd attributed to RUSAL.
3
4 Eurallumina in Italy is mothballed.
5
From external customers.
Including Onda HPP with the installed capacity of 0.08 GW (located in the European part of Russia, leased to RUSAL).
6
7 ALSCON in Nigeria is mothballed.
8 Excluding Onda HPP.
9 Since April 2022, the Australian government has banned alumina and bauxite exports to Russia.
14
15
STRATEGIC REPORTCONSOLIDATED REPORT 2023Ukraine9Moscow
Industry
positioning
En+ Group is a market-
leading, vertically integrated
low-carbon aluminium and
hydropower producer.
The Group’s asset mix and operations, coupled with its vast
geographical footprint, offer strategic synergies. Its scale
allows the Company to smartly manage the flows of aluminium
products as well as alumina and other raw materials within
the Company and enables proactive planning of electricity
production and consumption targets. This helps the Group
optimise capacity utilisation rates, maximise efficiency at
smelters and refineries, and drive asset growth.
Based on the current management structure and
internal reporting system, the Group has defined
two business segments:
Metals segment,
comprising RUSAL
and its business assets
Power segment,
comprising mainly
power assets
1
Taking into account the shutdown of alumina production at the Nikolaev
Alumina Refinery and the Australian Government’s ban on exporting
alumina and aluminium ores to Russia.
2 Based on the Company’s internal data and peer companies’ publicly
available results, announcements, reports and other information.
3 Since 2019, Chinalco has been disclosing consolidated production data
on Chalco and Yunnan Aluminium Co. Ltd.
16
METALS SEGMENT
POWER SEGMENT
In 2023, En+ Group’s Metals segment, represented by RUSAL,
produced approximately 5.5% of global aluminium output and
around 3.8% of the world’s alumina production. During the year,
the Company maintained its position as one of the world’s largest
producers of primary aluminium and alloys. RUSAL achieved
approximately 65%1 self-sufficiency in alumina and over 85% in
bauxite and nepheline.
RUSAL’s production chain includes bauxite and nepheline ore mines,
alumina refineries, aluminium smelters and casting houses, foil mills,
packaging and wheel production facilities.
RUSAL boasts a diversified product mix with a strong share of value-
added products (1.55 mt per annum out of 4.15 mt of total sales in
2023) and a diversified sales mix.
The Company supplies aluminium products to the domestic market
and across all key global consuming regions (Europe, CIS, China, and
other Asian countries).
To achieve the Group’s ambitious net zero commitment, RUSAL plans
to introduce a series of innovations throughout the entire production
chain, including projects to switch to pre-baked anode technology.
The planned conversion of certain capacities at Krasnoyarsk, Bratsk,
Irkutsk, and Novokuznetsk aluminium smelters to pre-baked anode
technology is scheduled for 2025–2030. The implementation
of environmental modernsation will not only reduce energy
consumption by 10%-15%, but also completely eliminate benzo(a)
pyrene emissions and reduce fluorine emissions significantly below
standards.
RUSAL is also committed to further develop the groundbreaking
inert anode technology. This technology will enable the substantial
reduction of GHG emissions from primary aluminium production.
Only a minimal portion of Scope 3 emissions will persist, primarily
indirect emissions associated with producing raw materials used to
manufacture inert anodes.
The efficient aluminium production, combined with low-cost
materials and power supply, secures the Company’s global leadership
on the cost curve.
Top aluminium producers globally 2
№
COMPANY
ALUMINIUM, mt
1.
2.
3.
4.
5.
6.
7.
8.
9.
Chinalco 3
Hongqiao Group
Metals segment (RUSAL)
Xinfra Group
Rio Tinto
Emirates Global Alumnium
SPIC
Vedanta
East Hope
10.
Alcoa
7.1
6.3
3.8
3.6
3.3
2.7
2.7
2.3
2.2
2.1
En+ Group’s Power segment is Russia’s largest independent power
producer by installed capacity and the world’s largest independent
hydropower generator.
Russia has a well-established power sector, which is crucial to
supporting the nation’s energy-intensive economy. In 2023, the
Unified Energy System of Russia had a total installed capacity of
248.2 GW, with a total electricity output of 1,134.0 TWh. Thermal
power plants dominate the Russian energy market, accounting for
66% of the total installed capacity. Siberia’s generation capacity mix
is divided almost evenly between hydropower (48.4%) and thermal
(50.8%) plants, with a minor contribution from solar power plants
(SPPs) at 0.8%.
The Group’s generating assets are located in the East Siberian and
Volga regions. The Power segment is engaged in every sector of
Russia’s power industry, including electricity and heat generation,
electricity, capacity and heat sales, heat distribution, retail energy
sales, engineering services, and electricity distribution and
transmission.
Hydropower generation is the core business of the Power segment,
with most of its assets located in Siberia. In 2023, En+ Group
maintained its position as the largest power producer in Siberia,
commanding a 36% share of installed capacity. Furthermore, 78% of
its capacity is represented by hydropower assets, affording the Group
utilisation priority over the regulatory range of thermal power plants.
Coal prices are the key driver of day-ahead market prices, given that
CHPs are marginal producers. The HPP output, driven by weather
conditions, is also relevant, as it affects the production volumes
additionally required from CHPs.
The Power segment’s primary objective is to ensure a low-carbon
hydropower supply, further reducing the Group’s overall carbon
footprint and contributing to its net zero by 2050 goal. As part of
this effort, the Group intends to build new power stations, including
Krapiva HPP, Nizhneboguchany HPP, and Telmamskaya HPP.
En+ Group is also advancing its New Energy programme focused on
HPP upgrades, along with the CHP upgrade programme.
Top power companies by installed hydro
capacity globally 4
№
1.
2.
3.
4.
5.
6.
7.
8.
9.
COMPANY /
OWNERSHIP
CYPC
State 5
Eletrobas
State
HydroQuebec
State
RusHydro
State
Enel
State
EDF
State
SDIC Power
State
En+ Group
Private
Iberdrola
Private
10.
Verbund
State
11.
12.
EDP
State 6
Engie Brasil
State
HYDRO SHARE
100%
95%
99%
81%
35%
18%
56%
78%
35%
95%
34%
77%
POWER,
GW
71.8
42.3
37.5
31.2
28.3
22.1
21.3
15.2
14.0
8.4
7.5
6.4
Competitive landscape in Siberia
by installed capacity7, GW
Thermal
Hydro
36
%
78
%
share of En+ in installed
capacity of Siberia
share of hydro in En+
total capacity
18.9
15.1
3.8
12.3
7.2
3.9
En+ Group 8
SGK
RusHydro
Inter RAO
3.0
BEMO
project9
4 Company filings (latest reported data).
5 A subsidiary of China Three Gorges Corporation.
6 21.08% stake is held by the state-owned China Three Gorges Corporation.
7 Based on the Company’s internal data and peer companies’ publicly available
8
results, announcements, reports and other information.
The Company’s assets capacity provided for Siberia only. The Company’s
aggregate capacity is 19.5 GW, including 15.2 GW of hydropower.
9 BEMO (Boguchanskaya HPP) is a strategic partner-operated 50/50 JV between
UC RUSAL and strategic partner.
17
CONSOLIDATED REPORT 2023STRATEGIC REPORT In our metals business, despite geopolitical pressures, the
aluminium market was, relatively speaking, balanced. With
sustainability always at the top of our agenda, I was pleased to
see the continued increase in demand for low-carbon aluminium,
meaning for us, some 31% sales of our low-carbon ALLOW brand
this year. In 2023 we began to produce primary aluminium with
the lowest carbon footprint in the world—ALLOW INERTA—in the
production of SAYANA foil.
Despite the challenging times we and others face, we remain
determined to be at the cutting edge and very top of low carbon
aluminium and energy production. We also remain focused on
modernizing both our power production facilities as well as our
smelters and refineries. Over the past two years we have spent
more than $3 billion on this effort, and have committed to make
sure all our facilities are the most modern, worldwide, as we
assiduously pursue our zero carbon goal.
Our newest smelter, in Taishet, Russia, is the most modern in the
world.
Already in production, Taishet uses our own proprietary
RA-400 "T" modification electrolysers developed by the company's
Engineering and Technology team. The RA-400 is one of the most
powerful electrolysers in the world capable of producing more
than 3 tons of aluminium per day, with the highest energy efficient
in the industry. The Taishet plant also is being built with a modern
dry gas cleaning system with a capture efficiency of over 98.5%.
Our RA-400T electrolysers are equipped with automatic alumina
supply systems, which will further minimize harmful emissions.
To our valued customers, our shareholders, and our employees
across the world, we are deeply grateful for your loyalty in this
most challenging world environment in a generation. Despite
these challenges, we will continue to heat and power your
homes and businesses, to provide the world with the lowest
carbon aluminium, the purest aluminium essential to all aircraft
manufacturing, the finest quality rolled aluminium with the lowest
carbon footprint to support the burgeoning "EV" industry, while
also helping conventionally manufactured automobiles reach
even higher fuel efficiency standards by lowering the weight of all
vehicles.
Positive energy
We continue to implement activities along the entire value chain;
z To implement energy efficiency measures across the whole
company.
z Prepare all our plants for conversion to pre-baked anode
technology.
z Our inert anode technology has successfully passed
international verification and confirmed its lowest carbon
footprint (0.01 t CO2 per tonne of aluminium, Scope 1 and 2).
z Mingtai Aluminum became the first company in China to test
ALLOW INERTA™ aluminium, produced using RUSAL's
revolutionary inert anode technology, at its plant.
z We continue to advance the circular economy by including
recycling content in the production of billets and slabs at our
smelter in Sweden, and produce primary casting alloys with
the recycling content for the automotive industry.
z Our forest climate project was registered for the first time
in the Carbon Unit Registry. RUSAL’s forest climate project
for aviation forestry protection in the Krasnoyarsk Territory
was registered in the Russian register of carbon units. Earlier,
in November 2023, the project was validated, that is, an
independent check for compliance with standards national
legislation in the field of climate regulation.
z The Group is also implementing a unique project of peatland
watering for Russia in the Leningrad region.
z Scientific work is being carried out to identify the impact
of climate risks on HPPs; work is currently underway to create
plans for adapting HPPs to climate change.
z Global climate change affects biodiversity and ecosystems;
therefore, in 2023, a Corporate Biodiversity Conservation
Program was developed for the Angara Cascade of HPPs
in order to create a sustainable system for managing
the impact on biological diversity during the operation of HPPs.
HON CHRISTOPHER
BANCROFT BURNHAM
Chairman of the Board
Statement from
the Chairman
of the Board
of Directors
Energized for action
The En+ Group is an exceptional global company that continues
to be the largest producer of low carbon aluminium in the world,
and the largest non-government hydropower company in the
world. We are leading the world in the development of inert
anode technology, we produce 5,5% of the world's aluminium, we
produce nearly 70 TWh of power each year including 6 MWh from
solar, and we are one of the largest producers of aluminium alloy
and alumina in the world.
We also lead the world with production of more than 1.3 million
tons of ALLOW, our proprietary low-carbon aluminium product
in the world, and continue to grow ALLOW INERTA product using
the inert anode technology we have developed. ALLOW INERTA is
the world's lowest carbon aluminium with less than 0.01 of CO2e
produced per ton.
The En+ Group has operations across five continents with around
90,000 employees worldwide. This includes tens of thousands of
employees in Ghana, Guyana, Ireland, Germany, Sweden, Armenia,
Jamaica, Italy and Nigeria and hundreds of thousands more
employed in downstream aluminium production around the world.
Millions of consumers, electric car manufacturers, can companies
seeking the lowest carbon aluminium for their customers, let
alone the millions of homes we heat across Siberia and Nizhny
Novgorod, all depend on us a responsibility we take with the
utmost seriousness.
We also continue to certify our plants. There are now eighteen
RUSAL sites certified according to the ASI Performance Standard
and ASI Chain of Custody Standard as we continue our progress
towards carbon neutrality.
In September 2023, we released a report on that progress and
while our commitment to carbon neutrality remains unchanged,
we announced a revision of the medium-term target; the 35%
reduction in greenhouse gas emissions was moved from 2030
to 2035 (based on 2018 emissions). This was caused by the
disruption of supply chains, limited connections with international
organisations, the postponement of gasification of Eastern Siberia,
interruptions in the supply of equipment, and restrictions on us in
the financial markets.
18
18
19
STRATEGIC REPORTCONSOLIDATED REPORT 2023 MIKHAIL
KHARDIKOV
Chief Executive Officer
Statement
from the Chief
Executive Officer
2023 proved to be another important milestone for
our Group as we learned to live and navigate through
international turbulence, which ended up being an
opportunity for us to test our financial and operational
resilience and outline key growth points. Despite all the
headwinds, we remained true to our commitments and
launched a range of new vitally important projects, both
in production segments and in community investments.
Notwithstanding lower overall financial performance of the Group
due to the combination of external economic factors, we remain
resilient and continue adapting to change. Against the backdrop of a
challenging economic environment, the continuous appreciation of
the US dollar, and a global decline in aluminium prices, our Company
remains sharply focussed on reducing external debt, streamlining
internal processes, and upgrading its production facilities. We are
successfully developing the domestic market and continue the
search for new partners. At the same time, we are addressing issues
related to equipment import substitution and redesigning our supply
logistics. I am confident that in the long term this will build a solid
foundation for growth.
In 2023, aluminium sales grew 6.6% amid the sale of inventories
accumulated by 2022-end and due to an increase in aluminium
production at our new Taishet Aluminium Smelter. The growth,
however, was offset by a 16.8% y-o-y decline in aluminium prices on
the London Metal Exchange (LME).
The Power segment’s generation grew 1.5% y-o-y, demonstrating
our continuous drive forward once again. Despite adjustments and
external restrictions, we remain committed to our top priority, to
achieve 100% carbon neutrality by 2050.
Overall, we have succeeded in overcoming the challenges of 2023 and
have a clear vision of where we need to go. Our efforts are centred
around energy efficiency and the smooth operation of our enterprises
with a strong focus on deploying technology innovations within the
Group while driving digitalisation and transformation. We make
sure to heavily invest in building a talent pipeline. This starts with
promoting youth development and encouraging children from school
age to consider vocational training through partnerships with schools
to ensure a stable future for the Company and the wider country.
Energized for action
Energized for the future
En+ Group has recently celebrated its milestone 20th birthday.
It is a time to take a moment to do an in-depth analysis, review the
results, and reflect on our journey. To mark this new milestone,
we have decided to rebrand in 2024 – this effort will include all
businesses of our Power segment. We aim to create a brand that is
valued by both our partners and our employees, a brand that has a
unique identity, is visible, engaging, and inspiring through its own
aspirations and history.
Our new slogan, “Energized for Action”, underlines the key feature of
the En+ Group strategy – having a clear vision of where we need to
go and focussing on delivering tangible results. We believe that this
rebrand effort will help our team rally behind our common aspiration
to reach even greater heights. For great change cannot be achieved
alone but requires strength in numbers.
We bring together the energy of the elements, the power of new
ideas, and human will to enhance the impact of positive change.
Our ideas are shared by thousands of committed individuals, willing
and ready to change the world around them.
Energized for life
The Group has been actively promoting educational programmes and
supports talented youth. This has included providing scholarships
to students, participating in the Professionalitet federal project, and
organising a specialised education programme for IT students under
the IT Academy project.
Other than collaborating with higher education institutions, we build
a talent pipeline of future employees from a very young age. In 2023,
we opened three new Multilab competency building centres for
school students in Bratsk, Angarsk, and Nizhny Novgorod, bringing
the total number of such centres to seven. We also run the Energy
School educational project and Energy Classes, which provide free
preparation for the Unified State Examination for energy-related
programmes in Siberian universities.
Energized for cooperation
2023 saw a 4.9% rise in aluminium consumption in China, while global
growth was 1.7%. This significant increase in demand was driven by
China’s decarbonisation efforts, as this metal forms a key component
in the manufacturing of renewable energy products, from electric
vehicles to solar panels.
En+ Group remains an anchor company and a pivotal partner for
Siberian regions. We are responsible for tens of thousands of our
employees and their families as well as for local residents within our
footprint. As such, we maintain all our commitments as an employer
and continue to expand the scope of our social-impact programmes.
We strive to improve quality of life, develop urban infrastructure,
support educational and cultural projects, and promote sports.
Furthermore, En+ Group remains committed to sustainability
principles and is continuing with its New Energy HPP modernisation
programme to drive not only GHG emissions reduction but also
ensure the reliable operation of Siberian energy systems.
Our Chinese partners, Mingtai Aluminum, were the very first company
to test the ALLOW INERTA™ primary aluminium manufactured using
our groundbreaking inert anode technology. In 2023, it successfully
passed international verification and confirmed its lowest carbon
footprint globally.
On top of this, we signed an agreement with China Energy Investment
Corporation to collaborate on a project to construct a 1,000 MW-plus
wind farm in the Amur region. This initiative will be the largest
investment project in the area, as capital investments are already
estimated to be more than RUB 100 billion.
Our Group is heavily involved in driving change in the quality of life
across our operating regions. In 2023, we launched the Sustainable
Cities Responsibility Index programme and identified our key
development focus areas for cities across our footprint. Our priorities
include improving urban infrastructure and building comfortable
homes; enhancing healthcare; and promoting sports, education, and
culture.
Over the past year, we started constructing modern comfortable
homes for employees and local residents in three operating regions;
completed and launched three martial arts centres currently
attended by hundreds of children; fitted out healthcare centres
with new equipment; and acquired flats across Russian regions for
housing mortgage programmes to address the shortage of doctors
and teachers. The Baikal Energia bandy team, fully sponsored by
us, reached new levels of victory during the year, while our healthy
lifestyle and sports festival, Get on Your Skis, was held across dozens
of cities. Additionally, our New Year street and square decorations
were relished by hundreds of thousands of residents.
We maintain a strong focus on our strategy to achieve net-zero
GHG emissions, demonstrating our responsibility and commitment
to building a sustainable future for the next generations. On top
of this, we are taking extensive measures to minimise and avoid
GHG emissions while also launching carbon offset projects. We
ensure strict compliance with legal requirements, drive research and
development, and contribute to the Clean Air federal project.
Energized for creation
Amid the continuously changing business landscape, we are proving
to be extremely adaptive through promptly developing our strategies
to enter new markets and launch innovative products. In this context,
I would like to point to the high level of professionalism, responsibility,
and creative approach to problem solving as demonstrated by the
Company’s management. I would also like to express my gratitude to
the entire team for their unwavering commitment to achieving our
goals.
I would like to extend a special thank you to shareholders and
partners of our Company and to our employees for their trust
and support in these challenging times. We are confident that our
combined efforts, vast experience, expertise, and our shared vision
for success will enable us to overcome any challenges and keep
moving forward together.
We know that it is the synergy of our skills and capabilities as well
as close collaboration and partnerships that will underpin our joint
success. Thank you for your commitment to our shared goals!
20
20
21
STRATEGIC REPORTCONSOLIDATED REPORT 2023 Business model
Capital
SASB: IF-EU-000.D IF-EU-000.C
Output
Value for stakeholders
NATURAL
INTELLECTUAL
POWER SEGMENT
METALS SEGMENT
68.8
TWh
Hydropower
13.4
mt
Bauxites
4.5
mt
Nephelines
P
R
O
D
U
C
T
I
O
N
N
C TI O
U
D
P R O
27.4
mn Gcal
Heat
16.4
TWh
Thermal energy
56.9
TWh
of electricity
transmitted and
distributed
83.5
TWh
sales of electricity on
the wholesale market
22.0
mtpa
Total bauxite capacity
9.0
mtpa
Total alumina capacity1
710.5
m3
Water consumption
> 100
professional training and
development programmes for
En+ Group employees
"А"
ESG sustainable corporate
governance rating of Russian
companies by Da-Strategia
Group consulting firm
PRODUCTIVE
HUMAN
19.5
GW
Total installed electrical
capacity
~ 90,000
employees on 5 continents
4.2
mtpa
79
%
Aluminium capacity 2
Employee satisfaction
41,999
km
of power lines in our networks
FINANCIAL
USD 26.4
mn
Total assets
USD 1.4
mn
SOCIAL AND
REPUTATIONAL
A–
(RU), "Positive "
Credit rating
ESG-A
, "Stable"
Capital expenditure
ESG rating
5.1
mt
Alumina
3.8
mt
Aluminium
4.2
mt
Aluminium
S
E
L
A
S
23.6
TWh
sales of electricity
on the retail
market
S
A
L
E
S
162.5
GW
sales of capacity
1.5
mt
Value-added
products
EMPLOYEES
USD 289
mn
Pension plan payments
USD 1,566
mn
Employee wages, including
total retirement costs
CUSTOMERS
1.3
mt
4.17
out of 5
of low-carbon ALLOW
aluminium sold
Average customer satisfaction
score
SUPPLIERS
13.7
%
~62
%
Share of purchases from SMEs
Share of purchases from local
suppliers
SHAREHOLDERS AND INVESTORS
USD 3.1
bn
USD 2.2
bn
Market capitalisation
Adjusted EBITDA
LOCAL COMMUNITIES AND NGOS
USD 62.3
mn
Social investments
USD 491
mn
Payments to governments
RUSAL attributable capacity.
1
2 Excluding Boguchany Aluminium Smelter (BoAZ), a joint 50/50 project
of RUSAL and strategic partner. Ten aluminium smelters in operation
(ALSCON in Nigeria is mothballed).
For more details on value creation, see
pages 334-335
For more details on stakeholder engagement, see
page 214
Strategy
22
1
MAXIMISING
EFFICIENCY
2
INCREASING
CAPACITY
3
DRIVING
INNOVATION
4
ENSURING A STABLE
FINANCIAL POSITION
5
COMMITTING TO
SUSTAINABILITY
For more details on key risks, see page 204-207,
on strategy, see pages 24-27
23
CONSOLIDATED REPORT 2023STRATEGIC REPORT23222322 Strategy
GRI 3-3
The Group’s strategy is focused on leading the Company to
become the world’s foremost vertically integrated producer
of high-value-added products made from low-carbon
aluminium by utilising self-produced renewable energy and
raw materials.
We maintain our commitment to the Group’s sustainable
development strategy by enhancing manufacturing technology
and modernising assets, simultaneously aiming to boost the
production of cost-efficient aluminium, which will have a positive
impact on our profit margins, financial stability, and debt burden.
STRATEGIC
PRIORITIES
STRATEGIC
OBJECTIVES
2023
HIGHLIGHTS
REFERENCE
TO UN SDGs
Maximising
efficiency
1
1
Taking into account
the loss of control
over the Nikolaev
Alumina Refinery
and the Australian
Government’s ban
on exporting alumina and
aluminium ores to Russia.
24
Vertical integration to secure a supply
of raw materials
The Company prioritises achieving self-
sufficiency in raw materials. The Metals
segment is therefore committed to the
following objectives:
z Return to at least 100% self-
sufficiency in alumina for aluminium
production
z Achieve 100% self-sufficiency
in anodes for aluminium production
z Attain at least 100% and 80%
self-sufficiency in flux and master
alloys, respectively, for aluminium
production
By using self-generated hydropower
in the aluminium smelting process, we
not only generate income for the Power
segment by providing steady baseload
demand for electricity but also effectively
reduce the carbon footprint of primary
aluminium production as almost 100%
of energy used for smelting is renewable.
Production cost savings
To cut production costs, the Company
aims to achieve independence from
external raw material suppliers and
strategically positions aluminium
smelters near HPPs, capitalising on cost
savings from location synergies.
En+ Group is dedicated to enhancing
operational efficiency through digital
transformation initiatives and robust
business system integrations.
> 90
%
of energy used in
aluminium smelting is
the Company’s own
hydropower supply
> 85
%
Self-sufficiency in
bauxites and nephelines
~ 65
%1
Self-sufficiency in
alumina
USD 11,366
mn
Total cost of sales
86.2
USD
mn
Total economic benefit
from the implementation
of business system
projects at En+ Group
(RUB 7.3 bn) 2
STRATEGIC
PRIORITIES
STRATEGIC
OBJECTIVES
2023
HIGHLIGHTS
REFERENCE
TO UN SDGs
Increasing
capacity
2
Higher profitability
The Metals segment is prioritising the
expansion of high-value-added product
(VAP) capacity. The Aluminium Division
is actively expanding its VAP capacity to
offer more products like foil, powders,
extrusions, and aluminium wheels.
1,547
kt
VAP sales volumes
Aluminium capacity expansions
The Group is consistently growing its
aluminium capacity:
z In 2023 Taishet Aluminium
Smelter was in the process
of being commissioned marking
it as the Group’s most up-to-
date and advanced aluminium
operation, featuring state-of-the-art
electrolysers
z Currently, the Company is planning
for the second stage of Taishet and
Boguchany Aluminium Smelter
projects
Ramp-up of renewable generation
capacity
The Company is actively pursuing the
development of new renewable-energy
facilities, including:
z new HPP projects
z solar capacity additions
z a wind farm project.
The New Energy programme for
upgrading hydro capacity is also
underway, aimed at boosting plant unit
reliability and overall generation levels.
540
ktpa
Planned capacity of the
second stage of the
Taishet project
2.5
GW
Aggregate capacity of
new hydro projects
2.4
billion kWh
additional generation
through the New Energy
programme starting
from 2026
1
GW
Potential capacity of the
proposed wind farm
2 Calculated based
on the 2023 average
USD/RUB exchange
rate of RUB 85.25
per dollar.
25
CONSOLIDATED REPORT 2023STRATEGIC REPORT
Strategy
STRATEGIC
PRIORITIES
STRATEGIC
OBJECTIVES
2023
HIGHLIGHTS
REFERENCE
TO UN SDGs
STRATEGIC
PRIORITIES
STRATEGIC
OBJECTIVES
2023
HIGHLIGHTS
REFERENCE
TO UN SDGs
Ensuring a stable
financial position
En+ Group remains focused on adapting
to evolving circumstances and external
influences, aiming to maintain robust
liquidity and a solid financial standing.
3
Driving
innovation
4
Advancing and scaling aluminium and
alloy production technologies
Key focal points in the Group’s
technology portfolio are refining
our proprietary RA-400 aluminium
production cells, priming our inert
anode technology for commercial use,
and scaling production technology for
aluminium-scandium alloy-based VAPs.
Driving renewable technology
innovation
The Company's Power Segment R&D
projects include research into tandem
perovskite solar panels, energy storage,
green hydrogen transport.
USD 14,648
mn
Revenue
USD 2,157
mn
Adjusted EBITDA
14.7
%
Adjusted EBITDA margin
0.01
t CO2 e
GHG emissions per tonne
of aluminium (Scope 1
and 2) produced with
inert anode technology
85
%
Самообеспеченность
бокситами
и нефелинами
85
%
Самообеспеченность
бокситами
и нефелинами
85
%
Самообеспеченность
бокситами
и нефелинами
Committing
to sustainability
5
Achieving carbon neutrality
The Company has set climate targets
to achieve net-zero emissions by 2050
and to reduce GHG emissions by at least
35% by 2035 (from a 2018 baseline). We
have also unveiled a detailed roadmap to
achieve carbon neutrality.
65.9
mt of CO2 e
Total GHG emissions
(Scope 1, 2, and 3)
Mitigating our environmental impact
To eliminate or mitigate its environmental
footprint across all businesses, En+
Group is strongly focused on driving R&D,
adopting best available technology, and
investing in modernisation.
USD 207
mn
Total environmental
protection spending1
12.8
%
Employee turnover
USD 62.3
mn
Social investments
(RUB 5.3 bn) 1
Human capital development
Our key HR objectives are to recruit
and retain highly skilled talent, boost
employee engagement, and provide a
supportive working environment with
attractive working conditions that foster
professional growth among our people
and promote the well-being of their
families.
Positive contribution to the
development of our operating regions
En+ Group’s social investments are
directed towards enhancing public
health, facilitating opportunities for
physical activity, ensuring equal access
to high-quality and innovative education,
developing accessible infrastructure, and
providing support to individuals facing
challenging circumstances.
26
27
Providing safe work environment
Safety is our absolute priority in
everything we do. En+ Group is
committed to ensuring a safe working
environment for its people, contractors,
and partners.
0.76
Lost Time Injury
Frequency Rate (LTIFR)
per 1 million working
hours
1 Calculated based
on the 2023 average
USD/RUB exchange
rate of RUB 85.25
per dollar.
CONSOLIDATED REPORT 2023STRATEGIC REPORT
Business review
METALS SEGMENT REVIEW
Market overview
GLOBAL ALUMINIUM DEMAND
In 2023, aluminium consumption outlook
remained bleak amid global economic
uncertainty, rampant inflation, and
persistent recession fears. Geopolitical
tensions continue to put pressure on the
global economy, disrupting supply chains
and markets.
In 2023, the London Metal Exchange (LME) average aluminium
price fell by USD 455 per tonne to USD 2,252 per tonne,
hitting the lowest point of USD 2,068.5 per tonne in August
2023 after reaching USD 2,636 per tonne in mid-January
2023.
However, despite all these challenges, aluminium consumption
increased to 70.2 mt in 2023 , up 1.7% year-on-year.
Consumption in China increased to 42.8 mt1, up 4.9% year-
on-year. China’s decarbonisation efforts drove an increase
in demand for aluminium, which is a key component in the
manufacturing of renewable energy products, from electric
vehicles to solar panels. Aluminium consumption in the rest of
the world (excluding China) decreased by 2.8% year-on-year
to 27.4 mt1 in 2023, hitting the 2015–2016 levels. Demand was
primarily supported by sectors specifically linked to the green
transition, namely the automotive and power generation
industries. These two sectors were the only contributors to
consumption growth in 2023.
70.2
mt
Worldwide consumption
of primary aluminium in 2023
+1.7 y-o-y
The largest aluminium end-consumer sector is the automotive
industry. In 2023, it accounted for nearly 25.5% of total
consumption1. The increased focus on sustainability and
environmental awareness around the world is driving the rapid
growth of the electric-vehicle industry, with many countries
setting ambitious targets to phase out internal combustion
engine vehicles and promote the production of electric
vehicles (EVs). According to market research firm Rho Motion,
global sales of fully electric and plug-in hybrid electric vehicles
(PHEVs) increased by 31% in 2023, down from 60% growth in
2022. Sales of fully electric or battery electric vehicles (BEVs)
were 9.5 million units out of the 13.6 million EVs sold globally
in 2023, the rest being hybrid vehicles. In 2024, the share
of electric vehicles in global vehicle sales is expected to hit
around 20% (14% for fully electric vehicles), up from around
17% in 2023 2.
The construction sector remains the second largest aluminium
consumer, accounting for 21.4% of the total 1. The construction
industry continues to be under pressure, with new-build
sales, new construction starts, and construction in progress
all remaining in the negative territory in most countries for
the year to date. High borrowing costs and uncertainty over
monetary policy have affected aluminium demand.
Packaging sector consumption in 2023 accounted for 16.1%
of total global consumption1, which is 5.1% lower year-on-year
due to weaker consumer demand amid high inflation.
The other sector showing aluminium consumption growth this
year was the power generation industry, accounting for 15%
of total consumption in 20231.According to the International
Energy Agency (IEA), the pace of global renewable capacity
expansion in 2023 was the fastest in the past 20 years, which
could accelerate the world’s progress towards its key climate
goals by the end of this decade. According to the IEA data,
global annual renewable capacity additions increased by 50%
to 510 gigawatts (GW) in 2023, making it the 22nd year in a
row that renewable capacity additions set a new record.
GLOBAL ALUMINIUM SUPPLY
The worldwide supply of primary aluminium was up 3.5% year-
on-year to 70.5 mt in 2023. Production in the rest of the world
(excluding China) increased by 0.9% to 29.0 mt, driven by
production restarts and capacity expansions in South America
and India. Annual capacity totalling some 1.1 mt of aluminium
in Europe remains suspended due to high electricity costs in
previous years.
Aluminium production in China increased by 3.4% year-on-
year to 41.5 mt in 2023 and is expected to continue growing in
2024 as new capacity comes online. By end-2023, the Chinese
manufacturing sector posted net capacity additions of about
1.5 mt, taking into account new capacity additions totalling 3.9
mt and the restarts of production suspended earlier, as well
as suspended capacity totalling 2.4 mt amid temporary supply
cuts in certain regions. China’s aluminium production capacity
reached 45.3 mt by the end of 2023.
70.5
mt
Worldwide supply of primary
aluminium in 2023
+3.5 y-o-y
LME aluminium price performance 3, USD/t
Overall, the global aluminium market was roughly balanced in
2023.
Chinese exports of unwrought aluminium and alloys to other
countries was down year-on-year in 2023 due to weak external
demand. In 2023, Chinese exports of unwrought aluminium,
alloys, and semi-finished products decreased by 14.0% year-
on-year to 5.7 mt. At the same time, imports of unwrought
aluminium and alloys to China soared by 37.5% year-on-year
to 2.7 mt in 2023. China plans to increase primary metal
imports in the coming years due to capacity constraints amid
stable aluminium demand.
In 2023, following a rise amid high trading volatility in the first
five months of the year, aluminium inventories at the London
Metal Exchange trended downwards until mid-December
but then jumped by 120 kt to 566 kt towards the end of
the year, bolstered mainly by metal deliveries from Russia,
accounting for 90% of total inventories at the London Metal
Exchange by 2023-end. The volume of metal stored outside
of LME-approved warehouses (reported off-warrant stocks)
fluctuated throughout 2023 and by the end of November
increased by 166 kt to 439 kt.
Overall, regional aluminium premiums were mostly falling
during the first 11 months of 2023 due to higher supply and
weaker global spot market demand. In December 2023, the
US Midwest aluminium premiums stabilised at about 18.80
cents per pound but started rising in Europe due to large price
markups charged by sellers for delayed payments, sanctions
against Russian aluminium, and supply chain risks in the
Middle East. By end-2023, the European P1020 duty unpaid
premium in-warehouse Rotterdam was USD 145 per tonne.
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
Jan.
2022
March
2022
May
2022
July
2022
Sept.
2022
Nov.
2022
Jan.
2023
Feb.
2023
April
2023
June
2023
Aug.
2023
Oct.
2023
Dec.
2023
28
28
29
1 CRU. Long-term forecast for the aluminium market, December 2023, analysis by
UC RUSAL.
2 Global electric car sales rose 31% in 2023 – Rho Motion | Reuters.
3
LME data.
CONSOLIDATED REPORT 2023STRATEGIC REPORT Business review
BAUXITES AND NEPHELINES
DOWNSTREAM PROJECTS
Operational performance
GRI 2-6
SASB EM-MM-000.A
ALUMINIUM
ALUMINA
RUSAL owns 111 aluminium smelters located in three countries:
Russia (nine plants), Sweden (one plant), and Nigeria (one
plant). The Company’s core operating assets are located in
Siberia, Russia, accounting for approximately 94% of the
Company’s total aluminium output in 2023. Among those,
BrAZ and KrAZ collectively represent over half of RUSAL’s
aluminium production. The Company also holds an 85% stake
in a Nigeria-based smelter.
Throughout 2023, RUSAL continued to implement a
comprehensive programme to control costs and streamline
operating processes, reinforcing the Company’s position as
one of the world’s most cost-efficient aluminium producers.
The Group’s primary aluminium production for the year ended
31 December 2023 remained flat year-on-year at 3,848 kt. In
2023, VAP sales were 1,547 kt out of total sales of 4,153 kt.
As of the end of 2023, the Group owned eight2 alumina
refineries. RUSAL’s alumina refineries are located in five
countries: Ireland (one plant), Jamaica (two plants, one legal
entity), Italy (one plant), Russia (four plants), and Guinea (one
plant). In addition, the Company holds a 20% stake in QAL, an
Australia-based alumina refinery.
In 2023, RUSAL’s total alumina production declined by 13.8%
year-on-year to 5,133 kt, due primarily to:
z the shutdown of alumina production at the Nikolaev
Alumina Refinery, prompted by the introduction of martial
law in Ukraine
z the imposition of sanctions by the Australian government,
resulting in the inability for Queensland Alumina Ltd
to supply alumina to Company facilities
z reduced alumina output by the Aughinish Alumina Refinery
caused by increased natural gas prices in Ireland.
Bauxite and nepheline are essential raw materials for
alumina production. In 2023, the Group was more than
85% 4 self-sufficient in both materials.
Bauxites
The Group operates seven bauxite mines. RUSAL’s bauxite
mines are located in four countries: Russia (two mines),
Jamaica (one mine), Guyana (one mine), and Guinea (three
mines). The Company’s robust raw material base helps it
secure sufficient supply for prospective expansion of its
alumina production capacity. In addition, the Group sells
bauxite to third parties.
The Group’s total attributable bauxite output5 was
13,376 kt in 2023, as compared with 12,319 kt in 2022.
The higher output for 2023 was driven primarily by the
resumption of operations at the Compagnie des Bauxites
de Kindia mine thanks to bauxite exports to third parties
and partially to the Aughinish Alumina Refinery.
Nephelines
RUSAL’s total nepheline syenite production was 4,519 kt
in 2023, up from 4,363 kt in 2022. The 3.6% rise in output
was driven by the need to meet the nepheline ore demand
of the consumer plant.
Foil and packaging
In 2023, the Group’s foil production volume was 110.6 kt,
a decrease of 0.7 kt, or 0.6%, from 2022. Domestic supply
of plain foil, converted foil, and tape increased by 12.9 kt,
or 18.5%, driven by a shift in focus towards the domestic
market.
At the same time, the output of plain foil for export dipped
by 13.7 kt, down 33.15% from 2022, amid lower demand for
domestically produced foil.
Wheel business
Wheel output surged by 41% in 2023, propelled by the
recovery of the aluminium wheels market after the 2022
crisis.
In 2023, SCAD took steps to increase its share of the
primary sales channels, boosting its presence in the
OEM 6 channel from 40% to 70% year-on-year and in the
aftermarket segment from 55% to 70% year-on-year.
Aluminium production, kt
Bauxite production 3, kt
Foil production, kt
Russia (Siberia)
Russia (other than Siberia)
Other countries
Russia
Guinea
Jamaica
For domestic market (Russia and the CIS)
For exports
126
119
6,181
5,579
1,616
82.90
27.50
3,602
3,581
134
120
3,507
133
124
2023
2022
2021
Alumina production 3, kt
Russia
Ireland
Jamaica
Ukraine
Guinea
Australia (JV)
2023
2022
2021
3,022
3,080
3,053
1,383
456
273
1,629
422
300
340
182
1,878
448
1 769
414
742
3,848
3,835
3,764
5,133
5,953
8,304
2023
2022
2021
5,780
4,909
1,631
5,679
7,489
1,863
13,376
12,319
15,031
2023
2022
2021
70.10
41.18
66.13
42.71
Nepheline mines (Achinsk), kt, wet
Wheel business, ths pcs.
2023
2022
2021
4,519
4,363
4,390
2023
2022
2021
10 aluminium smelters in operation (Alscon in Nigeria has been mothballed).
1
2 Seven alumina refineries in operation now (Eurallumina in Italy is mothballed).
3 Pro-rata share of production attributable to the Group.
4
Taking into account the shutdown of alumina production at the Nikolaev Alumina Refinery and the Australian government’s ban on exporting alumina
and aluminium ores to Russia.
5 Bauxite output data: 1) were calculated based on a pro-rata share of the Company’s interest in the corresponding bauxite mines and mining complexes;
2) include the total production volume by the Company’s fully consolidated subsidiary, Bauxite Company of Guyana Inc., notwithstanding that minority interests in all similar
subsidiaries are held by third parties; 3) are reported as wet weight (including moisture).
6 Original equipment manufacturer.
30
110.40
111.30
108.83
2,346
1,667
3,034
31
CONSOLIDATED REPORT 2023STRATEGIC REPORT Business review
OTHER BUSINESSES
Secondary alloys
The amount of dross and aluminium-containing waste
recycled into secondary aluminium decreased by 9 kt, or
56%, in 2023 compared to the previous year, which was
attributed to the modified scrap recycling process within
the Group.
Silicon production
Silicon output in 2023 rose by 15.7% to 50.9 kt compared
to 2022.
Other mining assets
RUSAL’s mining portfolio encompasses 15 mines and
mining complexes, which include bauxite operations
(whose resources are detailed above), two quartzite mines,
one fluorite mine, two coal mines, one nepheline syenite
mine, and two limestone mines.
The Company’s long position in alumina capacity is
supported by RUSAL’s bauxite and nepheline syenite
resource base.
RUSAL jointly owns two coal mines with Samruk-Energy,
the energy division of Samruk-Kazyna, through a 50/50
joint venture, Bogatyr Coal LLP.
Bogatyr Coal LLP
Bogatyr Coal LLP, located in Kazakhstan, is a 50/50 joint
venture between RUSAL and Samruk-Energy.
In 2023, the company produced approximately 42.93 mt
of coal. As of 31 December 2023, Bogatyr Coal LLP held
coal reserves across layers 1, 2, and 3, totalling 1.962 billion
tonnes. Bogatyr Coal LLP recorded sales of approximately
USD 247 million in 2022 and USD 286 million in 2023.
Russian and Kazakh customers contributed approximately
24% and 76% of sales, respectively.
RUSAL’S PRODUCTS
CREATED IN 2023
Ligatures for high-tech alloys (production will meet
half of the Company’s demand for ligatures);
PEFA foundry alloys for the automotive industry con-
taining aluminium scrap;
Aluminium pigment pastes with enhanced anti-corro-
sion properties;
High-strength thin foil for batteries (20% higher
strength compared to alloy 1050 foil);
Heat-resistant powder alloy for 3D printing;
High-strength AlZn alloy (up to 15% weight reduction
in wheels and car suspension parts).
Investment in Norilsk Nickel
Norilsk Nickel is the world’s
largest producer of palladium
and high-grade nickel and one
of the leading producers of
platinum, copper, and cobalt.
As of the most recent reporting
date, RUSAL held a 26.39%
shareholding in Norilsk Nickel.
RUSAL’s shareholding in Norilsk Nickel allows for
significant earnings diversification through Norilsk
Nickel’s exposure to platinum group metals
(PGMs) and non-ferrous metals (nickel, copper,
and cobalt) and broadens RUSAL’s strategic
prospects.
26.39
%
RUSAL shareholding in Norilsk Nickel
USD 7,273
million
the market value of RUSAL’s investment
in Norilsk Nickel
Norilsk Nickel’s profile and financial results1
As of 31 December 2021, Norilsk Nickel’s resource base on the Taimyr
Peninsula and Kola Peninsula consisted of 1,293 mt of proved and
probable ore reserves and 1,824 mt of measured and indicated
mineral resources. Its primary assets are situated in the Norilsk
Industrial District, the Kola Peninsula, and the Trans-Baikal Territory
in Russia, as well as in Finland. In 2021, the proven and probable ore
reserves on the Taimyr Peninsula and Kola Peninsula saw a notable
increase, primarily driven by the commencement of mining projects
and the development of design documentation.
In 2023, Norilsk Nickel produced 209 kt of nickel (a 5% decrease year-
on-year), 425 kt of copper (a 2% decrease year-on-year), 2,692 koz of
palladium (a 4% decrease year-on-year), and 664 koz of platinum (a
2% increase year-on-year).
In 2023, production of non-ferrous metals such as nickel and copper
declined due to reduced ore extraction volumes stemming from
testing and commissioning of mining equipment from new suppliers.
Additionally, process adjustments were made to enhance the quality
of copper cathodes to meet the specifications of new customers.
In PGMs, in 2023, palladium production was down, while platinum
production was up. These mixed trends were linked to shifts in the
share of PGMs in the feedstock mix.
Norilsk Nickel maintains diversified metal sales across various regions.
Meanwhile, in 2023, the proportion of sales to Asia and Russia rose
compared to 2022, whereas sales to Europe, North America, and
South America saw a decline.
As of 31 December 2023, the market value of RUSAL’s investment
in Norilsk Nickel stood at USD 7,273 million, representing a decrease
compared to the market value as of 31 December 2022 (USD 8,775
million). Norilsk Nickel’s ongoing market value decline is driven
by escalating geopolitical tensions, the imposition of economic
restrictions against Russia by several countries, lower prices for key
metals, particularly palladium, and an increasing tax burden on the
company.
Ni
28
209
kt
Norilsk Nickel produced
in 2023
1
Production, financial, and operational data in this section are derived from https://nornickel.com/.
32
33
CONSOLIDATED REPORT 2023STRATEGIC REPORT Business review
BEMO project
The project pursued by the Boguchany Energy and Metals
Complex (BEMO) involves the construction of the 3,000-MW
Boguchany HPP (with a projected average annual electricity
output of 17.6 billion kWh) and Boguchany Aluminium Smelter
(BoAZ), capable of producing 600 kt of metal per annum in the
Krasnoyarsk Territory in Siberia.
Boguchany HPP represents the fourth phase of the Angara cascade
HPP, constituting Russia’s largest hydro project ever completed.
Construction of the power plant was suspended in Soviet times due
to the lack of financing but was resumed in May 2006 by RUSAL
and strategic partner, who agreed to join efforts to complete the
project.
BoAZ was constructed in two phases, each designed to
produce 298 kt of aluminium annually. The initial segment of
the first stage, producing 149 kt of aluminium annually with 168
electrolysers, was launched in 2015. Subsequently, the second
segment of the first stage came online in March 2019. In May
2019, the first stage of the smelter reached its design capacity.
In 2023, production of aluminium and alloys reached 300 kt,
marking an increase of 2 kt year-on-year.
The potential construction of the second stage of the BoAZ
plant will be considered jointly with the strategic partner,
contingent upon market conditions and project funding
availability.
The project’s 79-metre-high and 2,587-metre-long composite
gravity rock-fill dam was completed at the end of 2011, and
nine 333-MW hydropower units of Boguchany HPP commenced
operation between 2012 and 2014. The total installed capacity of all
nine operating hydropower units amounts to 2,997 MW.
The hydropower plant started commercial electricity supply to the
wholesale electricity and capacity market on 1 December 2012. In
2023, the hydropower plant produced and supplied 19.924 TWh of
electricity to the wholesale electricity and capacity market, marking
a 0.6% increase of 0.116 TWh compared to 2022.
Assets overview
Aluminium smelters
Alumina refineries
Achinsk
Alumina Refinery
Bogoslovsk
Aluminium Smelter
Urals
Aluminium Smelter
PGLZ
Alumina Refinery
Friguia
Alumina Refinery
Location
Installed
capacity
2022
production
2023
production
Capacity
utilisation rate
(%)
Russia
(Krasnoyarsk Territory)
Russia
(Sverdlovsk Region)
Russia
(Sverdlovsk Region)
Russia
(Leningrad Region)
1,069 ktpa
913 kt
872 kt
85%
1,030 ktpa
994 kt
988 kt
96%
900 ktpa
917 kt
918 kt
102%
265 ktpa
256 kt
244 kt
92%
Guinea
650 ktpa
340 kt
273 kt
42%
Queensland Alumina Ltd.6
Australia
3,950 ktpa
182 kt
1,085 ktpa
–
0 kt
–
0%
0%
1,990 ktpa
1,629 kt
1,383 kt
69%
1,210 ktpa
422 kt
456 kt
1,759 ktpa
300 kt
–
38%
17%
Italy
Ireland
Jamaica
Ukraine
Eurallumina2
Aughinish
Alumina Refinery
Windalco
Nikolaev
Alumina Refinery5
Bauxite mines
Location
Installed
capacity
2022
production
2023
production
Capacity
utilisation rate
(%)
Location
Installed
capacity
2022
production
2023
production
Capacity
utilisation rate
(%)
Bratsk
Aluminium Smelter
Krasnoyarsk
Aluminium Smelter
Sayanogorsk
Aluminium Smelter
Novokuznetsk
Aluminium Smelter
Khakas
Aluminium Smelter
Irkutsk
Aluminium Smelter
Taishet
Aluminium Smelter1
Kandalaksha
Aluminium Smelter
Volgograd
Aluminium Smelter
KUBAL
ALSCON 2
Russia
(Irkutsk Region)
Russia
(Krasnoyarsk Territory)
Russia
(Republic of Khakassia)
Russia
(Kemerovo Region)
Russia
(Republic of Khakassia)
Russia
(Irkutsk Region)
Russia
(Irkutsk Region)
Russia
(Murmansk Region)
Russia
(Volgograd Region)
Sweden
Nigeria
1,009 ktpa
1,005 kt
1,005 kt
100%
1,019 ktpa
1,017 kt
1,014 kt
100%
542 ktpa
539 kt
538 kt
99%
215 ktpa
213 kt
204 kt
99%
297 ktpa
306 kt
304 kt
103%
422 ktpa
424 kt
425 kt
101%
428 ktpa
78 kt
112 kt
76 ktpa
64 kt
57 kt
26%
79%
69 ktpa
70 kt
69 kt
106%
128 ktpa
120 kt
119 kt
–
–
–
93%
0%
Boguchany Aluminium
Smelter 3
Russia
(Krasnoyarsk Territory)
292 ktpa
298 kt
300 kt
100%
Timan Bauxite
North Urals
Bauxite Mine
Russia
(Komi Republic)
Russia
(Sverdlovsk Region)
Compagnie des Bauxites
de Kindia
Guinea
Friguia Bauxite and Alumina
Complex 2
Guinea
Bauxite Company
of Guyana Inc.6
WINDALCO
Bauxite Company
of Dian-Dian
Guyana
Jamaica
Guinea
3,500 ktpa
3,542 kt
3,923 kt
112%
3,000 ktpa
2,238 kt
2,258 kt
75%
3,500 ktpa
831 kt
2,670 kt
76%
2,100 ktpa
1,253 kt
837 kt
40%
1,700 ktpa
–
–
4,000 ktpa
1,631 kt
1,616 kt
4,200 ktpa
2,825 kt
2,072 kt
0%
40%
49%
Pre-commissioning and verification tests began in December 2021.
1
2 Mothballed.
3 A 50/50 joint venture between RUSAL and strategic partner. The capacity and production volumes of the BEMO project
4 Pro-rata share of capacity and production attributable to RUSAL.
5 Since March 2022, production has been terminated.
6 As of February 2020, production was mothballed.
34
35
CONSOLIDATED REPORT 2023STRATEGIC REPORT Business review
POWER SEGMENT
Market overview1
OVERVIEW OF THE RUSSIAN POWER SECTOR
The Russian Federation’s power sector
is among the largest in the world: as of
2023, total installed capacity of power
plants within the United Energy System
of Russia (UES of Russia) was 248.2 GW,
generating a total of 1,134.0 TWh of
electricity in 2023.
The UES of Russia covers the most populated areas of the
country. Grid interconnections between various energy systems
are limited due to vast distances, so the Russian wholesale
electricity and capacity market is divided into two pricing zones
and four non-pricing zones.
The first pricing zone, the Europe-Urals zone,2 encompasses
the European region of Russia and includes integrated energy
systems (IES) such as the North-West, Central, Middle Volga,
Urals, and South.
The second pricing zone, the Siberian IES, encompasses Siberia.
The electricity prices of the two pricing zones are driven by the
differences in capacity and fuel mix in the respective pricing
zones. Network constraints play a significant role in the second
pricing zone.
Non-pricing zones include the Kaliningrad Region, Arkhangelsk
Region, Komi Republic, and Russian Far East regions. These
regions operate under special electricity pricing rules rather
than market conditions.
Most of the Group’s energy assets are located in the second
pricing zone, within the Siberian IES. The Siberian IES has an
operational area of 4,944,300 km2, with a population of more
than 19 million. The Siberian IES comprises 122 power plants
with a total installed capacity of 52.4 GW, including 25.4 GW
of HPPs (48%), 26.6 GW of CHPs (51%), and 400 MW of solar
power plants (1%). The backbone grid of the Siberian IES
consists3 of 110-kV, 220-kV, 500-kV, and 1,150-kV lines, with a
total length of 103,771 km.
A unique feature of the Siberian IES is the significant role of
HPPs in both the installed electrical capacity mix and electricity
output. Thermal power in the Siberian IES communities is
generated mainly through coal-fired power plants, primarily
located near coal-mining regions.
ELECTRICITY DEMAND
Electricity consumption in the UES of Russia rose by 1.4%
year-on-year to 1,121.6 TWh in 2023. Electricity consumption in
the Europe-Urals pricing zone grew by 1.0% to 845.8 TWh and
2.3% to 229.9 TWh in the Siberian IES.
ELECTRICITY GENERATION
As of 1 January 2024, total installed electrical capacity of the
UES of Russia was 248.2 GW, reflecting an increase of 0.6 GW
in 2023. This growth was attributed to the commissioning
of new capacity totalling 0.7 GW, retirement of obsolete
generation with a combined capacity of 0.4 GW, and the
capacity increase of 0.2 GW due to other factors such as
uprating.
In 2023, electricity production in the UES of Russia increased
by 1.1% year-on-year, reaching a total of 1,134.0 TWh.
ELECTRICITY AND CAPACITY PRICES
Within the Siberian IES, electricity spot prices are dictated
by the marginal costs of the least efficient coal-fired power
plants among those in demand, with HPPs operating as price
takers. Over the long term, electricity prices tend to move
with thermal coal prices. A significant proportion of the
power generated by Siberian CHPs is produced using locally
sourced brown coal. Due to seasonality in demand and the
fluctuating availability of hydropower, electricity prices can
exhibit significant fluctuations throughout the year. One of
the primary factors with significant medium-term influence
is the inflow and water reserves in Siberian HPPs’ reservoirs,
driving the availability of low-cost hydropower in the wholesale
market. The capacity market operates somewhat differently
from the electricity market, reflecting the long-term nature
of decision making. The primary method for selling capacity
on the wholesale market is through competitive capacity
auctions (CCAs), enabling the selection of the most suitable
mix of generating capacities to meet projected demand and
establishing a single capacity price within each pricing zone.
Currently, CCA capacity prices are set through to 2026 and
are then adjusted annually using the Consumer Price Index
(CPI) from the previous year minus 0.1%, from 1 January of the
CCA year until 1 January of the delivery year.
Capacity prices
Price determined in capacity auctions (ex. CPI, RUB'000/MW/month)
Second pricing zone
2022
264
2023
267
2024
279
2025
303
2026
299
Capacity prices (including CPI minus 0.1% adjustment), ths RUB/MW/month
First pricing zone
Change y-o-y
Second pricing zone
2023
2022
217.2
+14.1%
338.6
+12.9%
190.4
299.9
The CCA-resulting price for the first pricing zone increased by
14.1% year-on-year, including the CPI minus 0.1% adjustment,
while the capacity price for the second pricing zone rose by
12.9% year-on-year, including the CPI minus 0.1% adjustment.
A key contributor to higher CCA prices in 2023 vs 2022 was
adjustment for actual 2022 inflation rate of 11.94%.
Electricity prices
Electricity spot prices 4, RUB/MWh
First pricing zone
Nizhny Novgorod Region
Second pricing zone
Irkutsk Region
Change y-o-y
Krasnoyarsk Territory
2023
2022
1,591
+10.2%
1,248
+7.4%
1,625
+10.5%
1,159
+17.4%
1,201
+3.8%
1,444
1,162
1,470
987
1,157
In 2023, the average spot price in the day-ahead market for
the second pricing zone reached RUB 1,248 per MWh, a 7.4%
increase from 2022. This upward trend was caused by lower
HPP generation between January and May amid increased
electricity consumption as well as by higher CHP price bid
levels with changes in the bidding mix.
In 2023, the average spot prices in the Irkutsk Region and
Krasnoyarsk Territory stood at RUB 1,159 per MWh and RUB
1,201 per MWh, respectively, marking a 17.4% and 3.8% year-
on-year increase, respectively. The price growth rate in the
Irkutsk Region exceeded that in the Krasnoyarsk Territory
due to several factors: lower generation from the Angara
cascade HPPs between January and May, increased electricity
consumption in the Irkutsk Region, and higher CHP price bids
levels amid ongoing transmission constraints for cross-flows
to the Irkutsk Region.
1,134
TWh
Total generation of UES Russia in 2023
+1.1% y-o-y
1 Unless otherwise stated, data sources in the Market Overview section include TSA, NP Market Council Association, and System Operator of the United Energy System.
2 Comprises the Central, Middle Volga, Urals, North-West, and South energy systems.
3 According to the System Operator of the United Energy System of Russia (www.so-ups.ru).
4
Day-ahead market. NP Market Council Association data.
36
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STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Business review
Operational performance
GRI 2-6
As of 31 December 2023, the Group’s total installed electrical
capacity stood at 19.5 GW1, while the aggregate installed
heat capacity was 14.2 Gcal/h. As of 31 December 2023, HPPs
represented 77.9% of the installed electrical capacity, while
the remaining 22.1% was accounted for by predominantly
coal-fired CHPs and one solar power plant.
In 2023, the Company generated 85.2 TWh2 of electricity,
constituting 37.9% of the Siberian IES’ total electricity
production for the period.
En+ Group’s installed
capacity by generation type 3, %
CHPs
HPPs
Abakan SPP
78 %
HYDROPOWER GENERATION
Hydropower generation is the main focus of the Group’s
Power segment. The Group operates five HPPs 4, including
three of the five largest HPPs in Russia and of the twenty
largest HPPs globally, in each case in terms of installed
electrical capacity. In 2023, the Power segment’s HPPs
produced 68.8 TWh of electricity, or 80.79% of the Group’s
total electricity production.
In 2023, the total output of the Group’s Angara cascade HPPs
(Irkutsk, Bratsk, and Ust-Ilimsk) decreased by 2.0% year-
on-year to 53.1 TWh. This decline can be attributed to the
high water reserves in Lake Baikal and the Bratsk reservoir
in the beginning of 2022 and on average in 2022. In 2023,
water levels in Lake Baikal reached 457.15 m (38 centimetres
above the long-term average), an increase from 456.86 m in
2022. Additionally, the Bratsk reservoir water level in 2023
was 402.01 m (3.2 m higher than the long-term average),
compared to 401.28 m in 2022.
Total generation from Krasnoyarsk HPP rose by 6.8% year-on-
year in 2023, from 14.8 TWh to 15.8 TWh. The increase was the
result of a more intensive state-regulated drawdown in the
Krasnoyarsk reservoir compared to 2022, driven by increased
hydro resources. The maximum level of the Krasnoyarsk
reservoir reached 236.05 m, marking an increase of 2.03 m
compared to the 2022 level and remaining 3.63 m below the
long-term average annual maximum.
CHP ELECTRICITY AND HEAT GENERATION
Power generation by the Group’s CHPs rose by 10.1%
year-on-year to 16.4 TWh in 2023. The increase was driven
primarily by a 4.0% (increase by 295 MW) year-on-year surge
in electricity consumption within the Irkutsk energy system,
along with reduced generation from the Angara cascade HPPs
in the first half of 2023.
Heat generation totalled 27.4 million Gcal and experienced a
0.7% year-on-year decrease, which was attributed to weather
conditions. The average monthly temperature in 2023 was
0.2°C higher than in 2022.
SPP ELECTRICITY GENERATION
Abakan SPP generated 6.0 GWh in 2023, marking a 1.7%
year-on-year increase attributed to more sunny days during
the reporting period.
Total electricity production 5, TWh
Angara cascade HPPs6
Yenisei cascade HPP7
CHPs
RETAIL
53.1
54.2
53.0
2023
2022
2021
15.8
16.4
14.8
14.9
24.7
12.7
Heat generation, mn Gcal
2023
2022
2021
85.2
83.9
90.4
27.4
27.6
28.5
COAL PRODUCTION
The Coal segment provides the Group’s CHPs with a self-
sufficient coal resource base and covers its internal coal
demand. Part of the coal production (18% in 2023) is sold
to third parties.
The Company purchases electricity on the wholesale
market, sourcing it from both the Group’s generating
companies and third-party suppliers through its subsidiaries
Irkutskenergosbyt LLC, Volgaenergosbyt JSC, and MAREM+
LLC, and then resells this electricity on the retail market to
both industrial consumers without access to the wholesale
market and household consumers. The Group directly sells
heat and electricity to end consumers. In 2007, the Group’s
subsidiaries in the Irkutsk and Nizhny Novgorod Regions were
designated as guaranteeing suppliers within their respective
regions.
This status requires the Group to enter into an electricity
supply contract with any consumer within the boundaries of
these operational areas who applies for such a contract.
ELECTRICITY TRANSMISSION
AND DISTRIBUTION
As of 31 December 2023, the Group operated a transmission
and distribution system comprising approximately 42.0
thousand km of high- and low-voltage lines, facilitating an
annual net electricity output of approximately 56.9 TWh.
Through this system, the Group delivers electricity generated
by the Angara cascade HPPs to both wholesale and retail
customers, including aluminium smelters within the Metals
segment. Other generating facilities within the Group, such
as Krasnoyarsk HPP and Avtozavodsk CHP, do not rely on this
transmission network as they do not fall within its service area.
22 %
0.03 %
38
1
Including Ondskaya HPP, with an installed electrical capacity of 80 MW
(located in the European part of Russia, leased to UC RUSAL); excluding
Boguchanskaya HPP, with an installed electrical capacity of 2,997 MW (a
50/50 JV between UC RUSAL and strategic partner).
2 Excluding Ondskaya HPP, with an installed electrical capacity of 80 MW
(located in the European part of Russia, leased to UC RUSAL) and
Boguchanskaya HPP (a 50/50 JV between UC RUSAL and strategic partner).
3 As of 31 December 2023.
4
Including Ondskaya HPP with an installed capacity of 80 MW (located
in the European part of Russia, leased to UC RUSAL).
5 Excluding Ondskaya HPP, with an installed power capacity of 80 MW (located in the European part of Russia, leased to UC RUSAL), and Boguchany HPP, with an installed
power capacity of 2,997 MW (a 50/50 JV between UC RUSAL and strategic partner).
Includes Irkutsk, Bratsk, and Ust-Ilimsk HPPs.
6
7 Krasnoyarskaya HPP.
39
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Business review
Assets overview
GRI EU-1
Hydropower plants
Location
Irkutsk HPP
Russia (Irkutsk Region)
Combined heat and power plants
Location
Installed
capacity
2022
production
2023
production
Avtozavodsk CHP
Russia (Nizhny Novgorod Region)
Installed
capacity
732,5 MW
2022
production
2023
production
4.7 TWh
4.6 TWh
Electricity
Heat generation
Solar power plants
480 MW
1.6 TWh
1.6 TWh
2,172.0 Gcal/h
3.3 mn Gcal
3.1 mn Gcal
Bratsk HPP
Russia (Irkutsk Region)
4,500 MW
25.9 TWh
25.1 TWh
Ust-Ilimsk HPP
Russia (Irkutsk Region)
3,840 MW
23.7 TWh
23.4 TWh
Location
Installed
capacity
2022
production
2023
production
Krasnoyarska HPP
Russia (Irkutsk Region)
6,000 MW
14.8 TWh
15.8 TWh
Abakan SPP
Russia (Republic of Khakassia)
5.2 MW
5.9 mn kWh
6.0 mn kWh
Combined heat and power plants
CHP-10
Electricity
Heat generation
CHP-9
Electricity
Heat generation
Location
Russia (Irkutsk Region)
Russia (Irkutsk Region)
Installed
capacity
2022
production
2023
production
1,110 MW
4.6 TWh
4.9 TWh
574.0 Gcal/h
0.4 mn Gcal
0.3 mn Gcal
540.0 MW
2.0 TWh
2.5 TWh
2,190.5 Gcal/h
5.8 mn Gcal
6.0 mn Gcal
Other assets 1
Electricity
Heat generation
Installed
capacity
136.4 MW
2022
production
2023
production
0.7 TWh
0.6 TWh
2,660.0 Gcal/h
4.5 mn Gcal
4.1 mn Gcal
energized for action
726 MW
2.8 TWh
3.3 TWh
En+ Group’s electric charging stations
Novo-Irkutsk CHP
Russia (Irkutsk Region)
Electricity
Heat generation
Ust-Ilimsk CHP
Russia (Irkutsk Region)
Electricity
Heat generation
CHP-11
Electricity
Heat generation
CHP-6
Electricity
Heat generation
Russia (Irkutsk Region)
Russia (Irkutsk Region)
1,959.2 Gcal/h
5.8 mn Gcal
5.9 mn Gcal
515 MW
0.9 TWh
0.9 TWh
1,015.0 Gcal/h
2.0 mn Gcal
2.1 mn Gcal
320.3 MW
0.8 TWh
0.7 TWh
1,056.9 Gcal/h
1.0 mn Gcal
1.0 mn Gcal
284.9 MW
0.7 TWh
0.9 TWh
1,769.1 Gcal/h
3.5 mn Gcal
3.3 mn Gcal
Novo-Ziminsk CHP
Russia (Irkutsk Region)
Electricity
Heat generation
260 MW
1.2 TWh
1.3 TWh
773.0 Gcal/h
1.5 mn Gcal
1.5 mn Gcal
The En+ Group network of electric charging stations comprises
19 locations, with 18 situated in the Irkutsk Region and one
additional location in Krasnoyarsk. These stations serve all
districts of the regional centre, as well as key routes, including
sections of the federal highways Baikal and Siberia and roads
to the Olkhonsky District and Listvyanka. At the end of 2023,
the number of charging sessions at En+ Group’s electric
charging stations exceeded 100 thousand. Altogether, over
530 thousand kWh of electricity has been consumed since 2020,
when the first stations were opened, with 260 thousand kWh
consumed in 2023 alone, highlighting the growing popularity of
charging stations. Moreover, more than 1,500 people became
new customers.
100
ths
number of charging sessions
at En+ Group’s electric charging
stations as of the end of 2023
1 Other assets include Onda HPP and small-scale generating and heat-producing facilities.
40
41
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Financial review
Key highlights
The following table presents selected data from the Group’s key financial information, USD mn
The results of the Group’s operations are divided into the Power
and Metals segments. The Power segment comprises the power
industry, including power generation, trading, and supply. It also
includes supporting operations engaged in the supply of coal
to the Group. The Metals segment consists of RUSAL, including
RUSAL’s equity investment in Norilsk Nickel.
When making period-to-period comparisons of operating results,
the Group presents consolidated results after intersegmental
eliminations in order to analyse changes, developments, and
trends by reference to the individual segment’s results (the Power
and Metals segments). Amounts attributable to the segments are
presented before intersegmental eliminations.
As at or for the year ended 31 December
REVENUES
Revenue
Gross profit
Gross profit margin
Results from operating activities (EBIT)
Operating profit margin
Pre-tax profit
Profit for the year
Net profit margin1
Adjusted EBITDA2
Adjusted EBITDA margin3
Net debt 4
Net working capital 5
Free cash flow6
Basic earnings per share7
Equity attributable to shareholders of the Company
2023
14,648
3,282
22.4%
1,030
7.0%
876
716
4.9%
2,157
14.7%
8,717
3,417
642
1.186
6,921
2022
16,549
4,493
27.1%
2,006
12.1%
2,453
1,846
11.2%
3,119
18.8%
10,123
4,474
(633)
2.156
7,480
2021
14,126
4,952
35.1%
2,898
20.5%
4,138
3,534
25.0%
3,992
28.3%
8,581
2,753
1,705
4.264
5,775
Change in revenue and adjusted EBITDA, USD mn
Power segment
Metals segment
Change 2022 to 2023 (%)
−11.5%
−30.8%
16,549 8
−12.6%
3,119 8
−61.2%
3,885
(1,761)
−7.7%
(298)
14,648 8
3,587
1,254
(1,242)
+3.0%
38
13,974
12,213
2,028
2022
Revenue
Metals
segment
Power
segment
2023
Revenue
2022
Adjusted
EBITDA
Metals
segment
Power
segment
42
The following table presents the Group’s revenue from sales broken down by core product, for the years indicated:
USD mn
Sales of primary aluminium and alloys
Sales of electricity
Sales of alumina and bauxite
Sales of semi finished products and foil
Sales of heat
Other revenue
Total revenues
Year ended 31 December
2023
9,933
1,646
513
864
476
1,216
14,648
2022
11,384
1,844
557
921
525
1,318
16,549
2021
9,766
1,525
612
767
465
991
14,126
The following table presents the Group’s revenue from sales broken down by core product, USD mn
Sales of primary aluminium and alloys
Sales of electricity
Sales of alumina and bauxite
Sales of semi finished products and foil
Sales of heat
Other revenue
2023
2022
2021
9,933
1,646
513
864
476
1,216
11,384
1,844
557
921
525
1,318
9,766
1,525
612
767
465
991
14,648
16,549
14,126
2,157 8
1,292
786
2023
Adjusted
EBITDA
1 Net profit margin for any period represents net profit or loss for the relevant period divided by total revenues for the relevant period and expressed as a percentage, in each
case attributable to the Group, Power segment, or Metals segment, as the case may be.
2 Adjusted EBITDA for any period represents the results from operating activities adjusted for amortisation and depreciation, impairment of non current assets, and gain/loss
on disposal of property, plant and equipment for the relevant period, in each case attributable to the Group, Power segment, or Metals segment, as the case may be.
3 Adjusted EBITDA margin for any period represents adjusted EBITDA for the relevant period divided by total revenues for the relevant period and expressed as a percentage,
in each case attributable to the Group, Power segment, or Metals segment, as the case may be.
4 Net debt represents the sum of loans, borrowings, and bonds outstanding less total cash and cash equivalents as at the end of the relevant period, in each case attributable
to the Group, Power segment, or Metals segment, as the case may be.
5 Net working capital represents inventories plus short term trade and other receivables (excluding dividends receivable from related parties) less trade and other payables (excluding
dividends payable) as at the end of the relevant period, in each case attributable to the Group, Power segment, or Metals segment, as the case may be.
6 Free cash flow means, for any period, the cash flows generated from operating activities less net interest paid, capital expenditures, restructuring fees, and other payments related
to issuance of shares, adjusted for payments from settlement of derivative instruments, plus dividends from associates and joint ventures.
The earnings per share calculation is based on a weighted average number of shares of 502 million in 2023 and 2022.
7
8 After consolidation adjustments.
43
CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
The following table presents the Group’s revenue by business segment for the years indicated:
USD mn
Metals segment
Power segment
Business segment revenues
Elimination of intersegmental revenues
Total revenues
Year ended 31 December
2023
12,213
3,587
15,800
(1,152)
14,648
2022
13,974
3,885
17,859
(1,310)
16,549
2021
11,994
3,138
15,132
(1,006)
14,126
Group’s revenue by business segment, USD mn
Metals segment
Power segment
Elimination of intersegmental revenues
2023
2022
2021
12,213
11,994
13,974
3,587
(1,152)
3,138
(1,006)
3,885
(1,310)
14,648
16,549
14,126
The Group’s revenue is mainly attributable to the Metals
segment’s operations.
The Group’s revenue decreased by USD 1,901 million, or 11.5%,
from USD 16,549 million in 2022 to USD 14,648 million in 2023.
The decline was primarily driven by lower revenue in the Metals
segment due to a 16.8% drop in the LME aluminium price to
an average of USD 2,252 per tonne in 2023, from USD 2,707
per tonne in 2022. This was partially offset by a 6.6% year-on-year
increase in primary aluminium and alloys sales volume. The Group’s
revenue was also negatively affected by a significantly stronger dollar
during the year, resulting in a 7.7% decline in revenue for the Power
segment.
GROSS PROFIT
DISTRIBUTION, GENERAL
AND ADMINISTRATIVE EXPENSES
The Group’s gross profit for 2023 decreased by USD 1,211 million,
or 27.0%, to USD 3,282 million from USD 4,493 million in 2022.
The Group’s gross profit margin declined from 27.1% in 2022
to 22.4% in 2023.
The Group’s distribution, general and administrative expenses
decreased by USD 146 million, or 7.8%, to USD 1,718 million in
2023 from USD 1,864 million in 2022. The decline was primarily
attributed to a persistent dollar appreciation during the year,
partially offset by the newly imposed export duties.
ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, AND RESULTS FROM OPERATING ACTIVITIES
The Group’s results from operating activities decreased by USD
976 million, or 48.7%, to USD 1,030 million in 2023 from USD
2,006 million in 2022.
results from operating activities from the Power segment
increased by USD 178 million, or 21.0%, from USD 849 million in
2022 to USD 1,027 million in 2023.
Results from operating activities attributable to the Metals
segment decreased by USD 1,395 million, or 106.0%, from USD
1,316 million in 2022 to USD (79) million in 2023. Conversely,
The Group’s operating profit margin decreased from 12.1% in
2022 to 7.0% in 2023.
The following graph reconciles the Group’s adjusted EBITDA to the Group’s results
from operating activities for the periods indicated, USD mn
Results from operating activities
Impairment of non current assets
Amortisation and depreciation
(Profit)/Loss on disposal of property, plant and equipment
2023
2022
2021
1,030
765
366
(4)
2,006
720
370
23
2,898
822
267
5
2,157
3,119
3,992
COST OF SALES
The following table sets forth the Group’s adjusted EBITDA and adjusted EBITDA margin by segment
(before intersegmental elimination) for the years indicated:
The following table presents the Group’s cost of sales by segment for the years indicated:
Year ended 31 December
USD mn
Metals segment
Power segment
Business segment cost of sales
Elimination of intersegmental cost of sales
Total cost of sales
Year ended 31 December
2023
10,445
2,143
12,588
(1,222)
11,366
2022
10,770
2,422
13,192
(1,136)
12,056
2021
8,273
1,821
10,094
(920)
9,174
The cost of sales in the Power and Metals segments reflects
costs directly associated with the sale and production of the
core products and services of both groups of companies. For the
Power segment, the cost of sales primarily includes the costs of
electricity and capacity purchased for resale, raw materials and
fuel, personnel expenses, and depreciation and amortisation.
For the Metals segment, the cost of sales mainly consists of the cost
of energy, alumina, bauxite, other raw materials, personnel expenses,
and depreciation and amortisation.
The Group’s cost of sales decreased by USD 690 million, or 5.7%,
from USD 12,056 million in 2022 to USD 11,366 million in 2023, mainly
due to a weaker rouble.
USD mn, except %
Adjusted EBITDA Metals segment
Adjusted EBITDA Power segment
Adjusted EBITDA
Adjusted EBITDA margin
Metals segment
Adjusted EBITDA margin Power segment
Adjusted EBITDA margin Group
2023
786
1,292
2,157
6.4%
36.0%
14.7%
2022
2,028
1,254
3,119
14.5%
32.3%
18.8%
2021
2,893
1,172
3,992
24.1%
37.3%
28.3%
The Group’s adjusted EBITDA decreased by USD 962 million, or
30.8%, to USD 2,157 million in 2023 from USD 3,119 million in 2022.
The year-on-year decline was mainly due to the same factors that
impacted the Group’s operating results.
44
45
CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
SHARE OF PROFITS OF ASSOCIATES AND JOINT VENTURES
The Group has a number of associates and joint ventures, which are
accounted for in its Financial Statements under the equity method.
The principal associates and joint ventures include Norilsk Nickel,
and the BEMO Project.
The Group’s share of profit of its associates and joint ventures
decreased by USD 801 million, or 51.6%, to USD 752 million in 2023
from USD 1,553 million in 2022.
The change in the share of profit of associates and joint ventures
in 2023 as compared to 2022 can primarily be attributed to lower
profit from the Group’s investment in Norilsk Nickel.
USD mn
Share of profit in Norilsk Nickel
Effective shareholding of En+ Group
Share of profit in the BEMO project
Effective shareholding of En+ Group
Share of profit in other associates / joint ventures
Share of profits of associates and joint ventures
FINANCE INCOME AND COSTS
Year ended 31 December
2023
629
15.01%
93
28.44%
30
752
2022
1,440
15.01%
102
28.44%
11
1,553
2021
1,762
15.01%
58
28.44%
(18)
1,802
The Group’s finance income primarily consists of interest income
and net foreign exchange gains. The Group’s finance costs primarily
consist of interest expense on interest bearing liabilities and net
foreign exchange loss.
The Group’s finance income decreased by USD 64 million, or 34.8%,
to USD 120 million in 2023 from USD 184 million in 2022, mainly as
a result of lower interest income driven by changes in the Central
Bank’s key rate.
The Group’s finance costs decreased by USD 264 million, or 20.5%,
from USD 1,290 million in 2022 to USD 1,026 million in 2023,
as a result of interest expense decline driven by changes in the
Central Bank’s key rate as well as lower net losses from changes in the
fair value of derivative financial instruments between the comparable
periods, which was partially offset by losses from the revaluation
of investments measured at fair value through profit and loss
as compared to a gain in 2022.
USD mn
Finance income
Interest income
Dividend income
Revaluation of financial assets and liabilities
Total finance income
Finance costs
Interest expense
Net foreign exchange loss
Change in fair value of derivative financial instruments
Revaluation of financial assets and liabilities
Year ended 31 December
2023
2022
2021
93
27
–
120
(748)
(85)
(99)
(94)
115
38
31
184
(988)
(111)
(191)
–
65
22
–
87
(709)
(33)
(352)
(47)
(1,141)
Total finance costs
(1,026)
(1,290)
46
PROFIT BEFORE TAXATION
Due to the above factors, the Group recorded a profit before tax
of USD 876 million in 2023 as compared to USD 2,453 million in
2022. In 2023, the Power segment generated a pre-tax profit of
USD 550 million compared to USD 619 million in 2022.
The Metals segment posted a pre-tax profit of USD 244 million
as compared to USD 2,166 million in 2022.
INCOME TAX EXPENSE
PROFIT FOR THE YEAR
For the reasons described above, the Group’s profit for the year
ended 31 December 2023 was USD 716 million, compared to a
profit of USD 1,846 million for the year ended 31 December 2022.
The Group’s income tax expense decreased by USD 447 million,
or 73.6%, to USD 160 million in 2023 from USD 607 million in
2022, as a result of lower pre-tax profit in 2023 as compared to
2022. In 2023, current tax expense decreased by USD 183 million,
or 33.1% year-on-year, mainly due to lower taxable profit.
Deferred taxes increased by USD 264 million, from USD 54 million
in deferred tax liabilities in 2022 to USD 210 million in deferred
tax assets in 2023, primarily due to the tax effect of the accrual of
certain temporary differences related to foreign currency gains.
Analysis of results by segment
METALS SEGMENT
In 2023 and 2022, the Metals segment accounted for 77.3% and 78.2% of the business
segments’ revenues (before adjustments), respectively. As at 31 December 2023 and 31
December 2022, the assets of the Metals segment represented 67.3% and 68.0% of the
Group’s total assets (before adjustments), respectively.
The following table presents selected data of the
Metals segment for the periods indicated
USD mn
Revenue
Gross profit
Gross profit margin
Pre-tax profit
Profit for the period
Net profit margin
Adjusted EBITDA
Adjusted EBITDA margin
Adjusted net profit1
Recurring net profit2
Recurring net profit margin3
Year ended 31 December
2023
12,213
1,768
14.5%
244
282
2.3%
786
6.4%
73
702
5.7%
2022
13,974
3,204
22.9%
2,166
1 793
12.8%
2 028
14.5%
725
2,165
15.5%
2021
11,994
3,721
31.0%
3,641
3,225
26.9%
2,893
24.1%
1,536
3,298
27.5%
1 Adjusted net (loss)/profit for any period represents net (loss)/profit for the relevant period adjusted for the net effect from the share in the results of Norilsk Nickel, the net
effect of embedded derivative financial instruments, and the net effect of non current assets impairment.
2 Recurring net profit represents adjusted net (loss)/profit for the relevant period plus RUSAL’s effective share of Norilsk Nickel’s after-tax profits.
3 Recurring net profit margin represents recurring net profit for the relevant period divided by total revenues and expressed as a percentage for the relevant period.
47
CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
REVENUES
COST OF SALES
The following table presents components of the Metals segment’s sales data (before intersegmental elimination) for the years indicated:
The following table presents components of the Metals segment’s cost of sales (before intersegmental elimination) for the years indicated:
Sales of primary aluminium and alloys
Revenue, USD mn
Sales volumes, kt
Average sales price (USD/t)
Sales of alumina
Revenue, USD mn
Sales volumes, kt
Average sales price (USD/t)
Sales of foil and other aluminium products, USD mn
Other revenue, USD mn
Total revenues
Year ended 31 December
2023
2022
2021
10,129
4,153
2,439
340
759
448
550
1,194
12,213
11,593
3,896
2,976
550
1,169
470
581
1,250
13,974
9,966
3,904
2,553
610
1,677
364
515
903
11,994
USD mn
Cost of alumina
Cost of bauxite
Cost of other raw materials and other costs
Purchases of primary aluminium from joint ventures
Energy costs
Depreciation and amortisation
Personnel expenses
Repair and maintenance
Net change in provisions for inventories
Change in finished goods
Total cost of sales
Year ended 31 December
2023
2,029
235
3,074
656
2,288
513
667
455
(12)
540
10,445
2022
1,847
331
3,835
940
2,658
481
781
532
171
(806)
10,770
2021
741
506
3,387
696
2,070
572
618
407
28
(752)
8,273
The Metals segment’s revenue decreased by USD 1,761 million, or
12.6%, to USD 12,213 million in 2023 from USD 13,974 million in
2022.
Revenue from sales of primary aluminium and alloys was down by
USD 1,464 million, or 12.6%, to USD 10,129 million in 2023 from
USD 11,593 million in 2022. The decline was primarily due to an
18.0% decrease in the weighted-average realised aluminium price
per tonne (to an average of USD 2,439 per tonne in 2023 from
USD 2,976 per tonne in 2022), driven by lower LME aluminium
price (down to an average of USD 2,252 per tonne in 2023 from
USD 2,707 per tonne in 2022), which was partially offset by a 6.6%
increase in sales volumes between the comparable periods.
Revenue from sales of alumina was down by 38.2% to
USD 340 million for the year ended 31 December 2023 from
USD 550 million for the year ended 31 December 2022 due
to a decrease in alumina sales volume by 35.1% and a 4.7% decrease
in the average sales price.
Revenue from sales of foil and other aluminium products declined
by USD 31 million, or 5.3%, to USD 550 million in 2023 compared
to USD 581 million in 2022 due to a 11.9% decrease in revenue from
sales of foil between the comparable periods.
Other revenue, which includes sales of other products, bauxite, and
electricity, decreased by 4.5% to USD 1,194 million for the year ended
31 December 2023 compared to USD 1,250 million for the previous
year. The decline was driven by lower sales of other materials (such
as anode blocks down by 12.1%, aluminium powder by 15.3%, silicon
by 28.0%), which was partially offset by higher revenue from bauxite
sales, and also due to a 27.0% decrease in service revenue (mainly
a 36.8% decline in revenue from sales of energy services).
The Metals segment’s cost of sales decreased by USD 325 million,
or 3.0%, to USD 10,445 million for the year ended 31 December
2023 compared to USD 10,770 million for the year ended
31 December 2022.
The cost of alumina increased by USD 182 million, or 9.9%,
to USD 2,029 million in 2023 compared to USD 1,847 million in
2022, primarily due to an 11.9% increase in alumina purchase
volumes between the periods, partially offset by lower alumina
purchase price.
The cost of raw materials (other than alumina and bauxite) and
other costs decreased by 19.8% for the year ended 31 December
2023 compared to the same period of 2022 due to lower purchase
prices for raw materials (raw pitch coke was down by 38.3%, pitch
by 16.3%, anode blocks by 28.1%, and caustic soda by 28.9%).
Energy costs decreased by USD 370 million, or 13.9%, to
USD 2,288 million for the year ended 31 December 2023
compared to USD 2,658 million for the year ended 31 December
2022. The decline was due to a 13.9% decrease in the average
electricity tariff between the comparable periods (3.18 USD cents
per kWh in 2023 compared to 3.69 USA cents per kWh in 2022),
caused by the weakening of the Russian rouble against the US
dollar during the reporting period.
Finished goods mainly consist of primary aluminium and alloys
(approximately 95%). Changes between reporting periods were
driven by fluctuations in the physical inventories of primary
aluminium and alloys: a 27.7% decrease in 2023 and a 33.3%
increase in 2022.
48
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CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
POWER SEGMENT
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
The Metals segment’s adjusted EBITDA (before intersegmental
elimination) decreased by USD 1,242 million, or 61.2%, to USD 786
million in 2023 from USD 2,028 million in 2022. Adjusted EBITDA
margin was 6.4% in 2023 compared to 14.5% in 2022. The factors
that contributed to lower adjusted EBITDA and adjusted EBITDA
margin were the same as those affecting the operating results.
In 2023 and 2022, the Power segment accounted for 22.7% and 21.8% of the business
segments’ revenues (before adjustments), respectively. As at 31 December 2023 and 31
December 2022, the assets of the Power segment accounted for 32.7% and 32.0% of
the Group’s total assets (before adjustments), respectively.
The following table reconciles the Metals segment’s adjusted EBITDA to its results from operating activities for the periods indicated:
The following table presents selected data of the Power segment
for the periods indicated
Year ended 31 December
USD mn
2023
2022
2021
Year ended 31 December
Adjusted EBITDA reconciliation
Results from operating activities
Adjusted for:
• amortisation and depreciation
•
loss on disposal of property, plant and equipment
•
impairment of non current assets
Adjusted EBITDA
(79)
540
4
321
786
1,316
2,079
503
13
196
596
9
209
2,028
2,893
The following table reconciles the Metals segment’s adjusted net profit and recurring net profit to its net profit for the periods indicated:
USD mn
2023
2022
2021
Adjusted net profit reconciliation
Net profit for the period
282
1,793
3,225
Year ended 31 December
Adjusted for:
• share of profits and other gains and losses attributable to Norilsk
(629)
(1,440)
(1,762)
Nickel, net of tax effect
• change in derivative financial instruments, net of tax (20%)
• gain from partial disposal of investment in associate
•
impairment of non current assets, net of tax
Adjusted net profit
Added back:
• share of profits of Norilsk Nickel, net of tax
Recurring net profit
99
–
321
73
629
702
176
–
196
725
1,440
2,165
356
(492)
209
1,536
1,762
3,298
USD mn
Revenue
Gross profit
Gross profit margin
Results from operating activities (EBIT)
Operating profit margin
Pre-tax profit
Profit for the period
Net profit margin
Adjusted EBITDA
Adjusted EBITDA margin
REVENUES
2023
3,587
1,444
40.3%
1,027
28.6%
550
355
9.9%
1,292
36.0%
2022
3,885
1,463
37.7%
849
21.9%
619
384
9.9%
1,254
32.3%
2021
3,138
1,317
42.0%
889
28.3%
566
374
11.9%
1,172
37.3%
The Power segment’s revenue decreased by USD 298 million,
or 7.7%, to USD 3,587 million in 2023 from USD 3,885 million in
2022. The decline in revenue in dollar terms was mostly driven by a
significant depreciation of the rouble against the US dollar during
the year (the average USD/RUB exchange rate for the reporting
period increased by 24.4%), while the Power segment’s revenue
in rouble equivalent was up amid higher electricity prices and sales
volumes.
For the reasons described above revenue from electricity sales
decreased by 7.6% year-on-year to USD 1,719 million.
Revenue from capacity sales decreased by 5.2% year-on-year to
USD 567 million in 2023, mainly due to a negative effect from a
rouble exchange rate fluctuations, it was partially offsetted by
higher average selling price.
Revenue from heat sales decreased by 9.1% year-on-year to USD
428 million in 2023, reflecting the negative effect of the rouble
exchange rate fluctuations, partially offset by higher heat prices.
The Power segment’s electricity generation increased from 83.9
TWh in 2022 to 85.2 TWh in 2023. In 2022, HPPs produced 69.0
TWh of electricity, or 82.2% of the total electricity generated
by the Power segment, while in 2023 they produced 68.8 TWh
of electricity, or 80.8% of the Power segment’s total electricity
production. The decrease in HPP generation was primarily driven
by high water levels in Lake Baikal and the Bratsk Reservoir in the
beginning of 2022 and on average in 2022 compared to 2023.
50
51
CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
The following table presents components of the Power segment’s sales data (before intersegmental elimination) for the years indicated:
The following table presents the Power segment’s adjusted EBITDA and adjusted EBITDA margin for the years indicated:
Year ended 31 December
Year ended 31 December
USD mn
Adjusted EBITDA (HPP)
Adjusted EBITDA (CHP)
Adjusted EBITDA (Other and unallocated items)
Adjusted EBITDA (Power segment)
Adjusted EBITDA margin (HPP)
Adjusted EBITDA margin (CHP)
Adjusted EBITDA margin (Power segment)
2023
1,142
60
90
1,292
83.9%
7.6%
36.0%
2022
1,257
42
(45)
1,254
84.0%
5.0%
32.3%
2021
1,076
38
58
1,172
86.4%
5.2%
37.3%
In 2023, the Power segment’s adjusted EBITDA (before
intersegmental elimination) increased by USD 38 million, or 3.0%,
to USD 1,292 million from USD 1,254 million in 2022. The change
was largely driven by higher electricity and capacity prices as well
as an increase in electricity sales volumes.
The following table reconciles the Power segment’s adjusted
EBITDA to its results from operating activities for the periods
indicated:
Year ended 31 December
USD mn
2023
2022
2021
Adjusted EBITDA reconciliation
Results from operating activities
1,027
849
889
Adjusted for:
• amortisation and depreciation
• (gain)/loss on disposal of property, plant and equipment
•
impairment of non current assets
228
(8)
45
221
10
174
Adjusted EBITDA
1,292
1,254
229
(4)
58
1,172
Average RUB/USD rate
Sales of electricity
Revenue, USD mn
Sales volumes, TWh
Average sales price (RUB/MWh)
Sales of capacity
Revenue, USD mn
Sales volumes, GW/year
Average sales price (RUB ths/MW)
Sales of heat
Revenue, USD mn
Sales volumes, mn Gcal
Average sales price (RUB/Gcal)
Sales of semi finished products, USD mn
Other revenue, USD mn
Total, USD mn
COST OF SALES
2023
85.25
1,719
107.1
1,368
567
162.5
297
428
24.1
1,452
309
564
3,587
2022
68.55
1,861
105.5
1,209
598
163.3
251
471
24.0
1,322
341
614
3,885
2021
73.65
1,453
108.4
988
500
172.8
213
417
24.5
1,257
268
500
3,138
The following table presents components of the Power segment’s cost of sales (before intersegmental elimination) for the years indicated:
USD mn
Electricity and capacity
Cost of materials
Personnel expenses
Depreciation and amortisation
Electricity transmission costs
Other
Total cost of sales
Year ended 31 December
2023
2022
2021
599
450
416
217
157
304
2,143
642
564
503
211
194
308
428
428
358
216
160
231
2,422
1,821
The Power segment’s cost of sales decreased by USD 279 million,
or 11.5%, to USD 2,143 million for the year ended 31 December
2023 compared to USD 2,422 million for the year ended
31 December 2022.The decrease in the Power segment’s cost of
sales was driven mainly by the depreciation of the rouble against
the US dollar during the year.
52
53
CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
Net assets
In 2023, the Group’s net assets decreased by USD 1,151 million to
USD 11,581 million as at 31 December 2023, down from USD 12,732
million as at 31 December 2022.
In 2023, the Metals segment’s net assets decreased by USD 1,291
million, or 10.5%, to USD 11,016 million as at 31 December 2023
compared to USD 12,307 million as at 31 December 2022. This
was mainly driven by a reduction in total assets, primarily due to
decreases in interests in associates and lower inventories, cash
and cash equivalents, and total liabilities, mainly stemming from
a decrease in outstanding financial debt.
The Power segment’s net assets as at 31 December 2023 increased
by USD 61 million, or 1.1%, to USD 5,824 million from USD 5,763
million as at 31 December 2022. The increase was mainly due to a
decrease in the value of property, plant and equipment (resulting
from the depreciation of the rouble against the US dollar during
the year) and lower total liabilities (primarily due to a decrease in
outstanding financial debt).
Net assets, USD mn
Group
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Metals segment
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Power segment
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Year ended 31 December
2023
2022
2021
18,020
8,368
(10,015)
(4,792)
11,581
13,522
7,942
(6,729)
(3,719)
11,016
9,608
819
(3,297)
(1,306)
5,824
20,176
10,502
(11,479)
(6,467)
12,732
14,516
10,115
(7,733)
(4,591)
12,307
10,770
816
(3,758)
(2,065)
5,763
17,090
8,967
(9,897)
(5,849)
10,311
12,470
8,436
(5,790)
(4,592)
10,524
9,725
824
(4,121)
(1,461)
4,967
Net working capital
Net working capital is defined as inventories plus short-term trade
and other receivables (excluding dividends receivable), less trade
and other payables (excluding dividends payable).
In 2023, net working capital decreased by 23.6% from 2022,
mainly due to sales of inventories, accumulated at the end of the
previous year.
As at 31 December 2023, the Group’s net working capital
was USD 3,417 million compared to USD 4,474 million as at
31 December 2022.
The following table presents the calculation of net working capital
of the Group, Power segment, and Metals segment as at the dates
indicated:
USD mn
Group
Inventories
Short term trade and other receivables
Dividends receivable
Trade and other payables
Dividends payable
Net working capital
Metals segment
Inventories
Short term trade and other receivables
Dividends receivable
Trade and other payables
Dividends payable
Net working capital
Power segment
Inventories
Short term trade and other receivables
Trade and other payables
Net working capital
Year ended 31 December
2023
2022
2021
3,575
2,330
(412)
4,383
2,514
–
3,731
2,655
(827)
(2,081)
(2,423)
(2,806)
5
3,417
3,599
2,112
(412)
(1,639)
5
3,665
164
373
(675)
(138)
–
4,474
4,489
2,263
–
(1,919)
–
4,833
161
363
(693)
(169)
–
2,753
3,692
2,473
(827)
(2,408)
–
2,930
158
306
(602)
(138)
54
55
CONSOLIDATED REPORT 2023STRATEGIC REPORT
Financial review
Liquidity and capital resources
In 2023, the Group’s liquidity requirements primarily related to
funding working capital, capital expenditures, and debt servicing.
The Group used a variety of internal and external sources to
finance its operations. During the periods under review, short and
long term funding sources included mostly rouble and foreign
currency denominated secured and unsecured loans from Russian
and international banks as well as debt instruments issued in both
the Russian and international capital markets.
Liquidity was managed separately in both the Power and Metals
segments.
DIVIDENDS
During the years ended 31 December 2023 and 31 December 2022,
EN+ GROUP IPJSC neither declared nor paid any dividends.
Cash flows
from operating activities
Cash flows (used in) /
generated from investing activities
The Group’s cash flows from operating activities were up year-on-
year to USD 2,721 million, an increase of USD 2,149 million from
USD 572 million in 2022, caused by a decrease in working capital.
The Company’s net cash flows used in investing activities for the
year ended 31 December 2023 were USD 1,419 million compared
to net cash of USD 47 million generated from investing activities
in the previous year. Changes were mainly due to the absence
of dividends received from associates in 2023, compared to
USD 1,639 million received in 2022.
Cash flows (used in) / generated from financing activities
The Group’s cash flows used in financing activities for 2023 were
USD 2,277 million. A decrease of USD 3,019 million (in 2022, cash
flows generated from financing activities were USD 742 million)
was primarily due to net repayment of loans and bonds totalling
USD 1,559 million for the year ended 31 December 2023 compared
to net proceeds from borrowings of USD 2,122 million for the
previous year.
CASH FLOWS
The following table presents the Group’s selected cash flow data for the periods indicated:
En+ Group free cash flow
Free cash flow for 2023, USD mn
Year ended 31 December
USD mn
Cash flows from operating activities
Cash flows (used in) / from investing activities
Cash flows (used in) / from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at the beginning of the period, excluding
restricted cash
2023
2,721
(1,419)
(2,277)
(975)
3,474
Effect of exchange rate changes on cash and cash equivalents
(154)
Cash and cash equivalents at the end of the period,
excluding restricted cash1
Free cash flow
2,345
642
2022
572
47
742
1,361
2,328
(215)
3,474
(633)
2021
2,168
285
(2,691)
(238)
2,549
17
2,328
1,705
2,723 2
1,760
963
Cash flow
from operating
activities
(361)
(237)
(598)
(1,056)
(394)
(1,450) 2, 3
Power segment
Metals segment
(33) 4
642
311
331
Net interest
Capital expenditure
Other financial expenses
Free cash flow
1
Restricted cash of USD 2 million and USD 3 million is included in cash and cash equivalents as at 31 December 2023 and as at 31 December 2022, respectively
56
2 Before consolidation adjustments.
3 Capital expenditure represents cash flow related to investing activities – acquisition of property, plant and equipment and intangible assets, adjusted for one-off acquisition
of assets. The calculation does not include investments in subsidiaries and joint ventures.
4 Restructuring fee and payments from settlement of derivative instruments.
57
CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
The following table reconciles the free cash flow to the cash flows from operating activities for the periods indicated:
USD mn
Year ended 31 December
Free cash flow reconciliation
2023
2022
2021
Group
Cash flows generated from operating activities
2,721
572
2,168
Adjusted for:
Capital expenditures (acquisition of property, plant and equipment
and intangible assets)
(1,448)
(1,711)
(1,513)
Dividends from associates and joint ventures
Proceeds from partial disposal of associates
Interest received
Interest paid
Restructuring fees and expenses related to the issuance of shares
Settlement of derivative financial instruments
Free cash flow
Metals segment
–
–
84
(682)
(31)
(2)
642
1,639
–
104
(987)
(21)
(229)
(633)
620
1,421
63
(703)
(36)
(315)
1,705
Cash flows generated from operating activities
1,760
(412)
1,146
Adjusted for:
Capital expenditures (acquisition of property, plant and equipment
and intangible assets)
(1,056)
(1,239)
(1,192)
Dividends from associates and joint ventures
Proceeds from partial disposal of associates
Interest received
Interest paid
Restructuring fees
Settlement of derivative financial instruments
Free cash flow
Power segment
–
–
61
(422)
(30)
(2)
311
1,639
–
70
(428)
(17)
(229)
(616)
620
1,421
37
(380)
(34)
(315)
1,303
Cash flows generated from operating activities
963
986
1,022
Adjusted for:
Capital expenditures (acquisition of property, plant and equipment
and intangible assets)
Interest received
Interest paid
Restructuring fees and expenses related to the issuance of shares
Free cash flow
(394)
23
(260)
(1)
331
(474)
34
(559)
(4)
(17)
(321)
26
(323)
(2)
402
Capital expenditures
In 2023 and 2022, the Group’s capital expenditures (including
the acquisition of property, plant and equipment as well as the
acquisition of intangible assets) were USD 1,448 million and
USD 1,711 million, respectively. The Group’s subsidiaries financed
their cash requirements through a combination of operating cash
flows and borrowings.
The Metals segment recorded a total capital expenditure of
USD 1,056 million for the year ended 31 December 2023.
The table below presents the capital
expenditures (before adjustments)
of the Metals and Power segments for the
periods indicated, USD mn
Metals segment
Power segment
1,056
1,239
1,192
2023
2022
2021
394
474
321
The Metals segment’s capital expenditure in 2023 was aimed at
maintaining existing production facilities. Maintenance capex
amounted to 63% of total capex for 2023.
In 2023, capital expenditure by the Power segment amounted to
USD 394 million, down 16.9% year-on-year due to the depreciation
of the rouble against the US dollar. Maintenance capex accounted
for 55% of total capital expenditure. The Group’s Power segment
continued to invest in connections to its power supply infrastructure
and improving the efficiency of the Group’s CHPs, further advancing
its New Energy HPP modernisation programme.
Cash
As at 31 December 2023 and 31 December 2022, the Group’s
cash and cash equivalents, excluding restricted cash, were
USD 2,345 million and USD 3,474 million, respectively. As at
31 December 2023 and 31 December 2022, the Power
segment’s cash and cash equivalents were USD 260 million
and USD 281 million, respectively. Meanwhile, the Metals
segment’s cash and cash equivalents were USD 2,085 million
and USD 3,193 million, respectively.
ANNA MALEVINSKAYA
Chief Financial Officer
Appointed: 2 May 2023
Joined the Group: from 2000
Anna Malevinskaya began her career at RUSAL
in 2000, where she worked in various positions
until 2012. In 2013, Anna joined En+ as a financial
controller, and since 2018 she held the position
of Deputy Chief Financial Officer of En+, where
she was responsible for business planning,
financial reporting and business process
automation, participated in major projects and
transactions, including the Company's entry into
IPO in 2017.
Anna Malevinskaya is a Candidate of Economic
Sciences, graduated Lomonosov Moscow State
University, was awarded corporate awards,
and was also awarded with Gratitude and a
Certificate of Honor from the Ministry of Energy
of the Russian Federation.
“I highly appreciate the trust, and
at the same time I understand the
high level of responsibility placed
on me. I have been working with the
Group almost since its founding, and
I believe that En+ has exceptional
potential. I am confident that thanks
to a sustainable business model,
strategic vision and the cohesion of
our team, we will be able to maximise
all opportunities available to the
Company.”
58
5959
CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
Loans and borrowings
The nominal value of the Group’s loans and borrowings was
USD 6,818 million as at 31 December 2023, excluding bonds, which
represented additional USD 4,227 million.
Below is an overview of certain key terms of selected facilities in
the Group’s debt portfolio as at 31 December 2023:
Debt portfolio breakdown as of 31 December 2023
By currency
RUB
CNY
USD
EUR
AED
By interest rate
Floating rate
Fixed rate
3.4%
1.3%
0.4%
5.3%
24.8%
Metals
segment
89.5%
Power
segment 1
75.2%
23.0%
28.1%
Metals
segment
Power
segment 1
Facility/lender
Principal amount
outstanding as at
31 December 2023
Tenor/repayment
schedule
Pricing
METALS SEGMENT
Credit facilities
Pre-export
credit facilities
USD 367 mn
Until November 2024,
equal quarterly repayments
starting from January 2022
3-m SOFR plus credit spread
adjustment plus
1.7%–2.1% p.a.
CNY 10.7 bn
Bullet repayments
at final maturity dates,
the last repayment
on January 2026
3.75%—1Y LPR + 2.75% p.a.
Russian bank
loans
CNY 15.8 bn
December 2027, equal
quarterly repayments
starting from March 2024
4.75% p.a.
RUB 18.7 bn
Quarterly repayments,
the last repayment on
December 2035
Key rate of the Bank of Russia
plus 3.15% p.a.
Bonds
Yuan bonds
POWER SEGMENT
Credit facilities
CNY 23.5 bn
10 tranches, the last
repayment in July 2027,
repayments at final
redemption dates
3.75%–6.7% p.a.
77.0%
71.9%
Russian banks
loans
RUB 211.5 bn
Repayment 2024–2032
3.0–18.75% p.a.
SECURITY
As at 31 December 2023, the Metals segment’s debt (save for
several unsecured loans and bonds) was secured, among others,
by the assignment of receivables under specified contracts,
certain pledges of shares and interest in a number of the Group’s
subsidiaries, designated accounts, and shares in Norilsk Nickel
(representing 25% + 1 share of Norilsk Nickel’s total nominal
issued share capital).
As at 31 December 2023, the Power segment’s debt was secured,
among others, by pledges of shares and interests in certain
operating and non-operating companies and property, plant and
equipment.
Bonds
CNY
bonds
CNY 5.6 bn
4 tranches, the last repayment
is in May 2026, repayments
at final redemption dates
4.45%–5.45% p.a.
1 Nominal debt – USD 3,151 mn. Nominal debt includes USD 460 mn of ruble nominated facilities used to finance operational activities.
60
61
CONSOLIDATED REPORT 2023STRATEGIC REPORT Financial review
Contingencies
The summary of the Group’s principal contingencies is set out
below. For a detailed discussion of the Group’s contingencies
in 2023, including environmental contingencies, risks and
considerations, see Note 22 of the Annual Financial Statements.
LEGAL CONTINGENCIES
The Group’s business activities expose it to a variety of lawsuits
and claims which are monitored, assessed, and contested on an
ongoing basis. Where management believes that a lawsuit or
another claim would result in an outflow of economic benefits
for the Group, a best estimate of such outflow is included in
provisions in the consolidated financial statements. The amount
of claims where management assesses outflow as possible is
disclosed in Note 22 (с) of the Annual Financial Statements.
TAXATION
Russian tax, currency, and customs legislation is subject to
varying interpretations, and changes, which can occur frequently.
Management’s interpretation of such legislation, as applied to
the Group’s transactions and activities, may be challenged by
relevant local, regional, or federal authorities. Notably, recent
developments in the Russian legal landscape suggest that tax
authorities in Russia are increasingly taking a tougher stand when
interpreting or enforcing tax legislation, particularly in relation to
the use of certain commercial and trade transaction structures
which can be used by taxpayers but might be in conflict with the
authorities’ earlier interpretations or practices. Recent events
in the Russian Federation suggest that the tax authorities are
taking a more assertive and substance-based position in their
interpretation and enforcement of tax legislation.
The Group’s tax risks, along with an estimate of the maximum
possible additional amounts which may reasonably become
payable in respect of such risks, are disclosed in Note 22 (a) of the
Annual Financial Statements.
Financial ratios
GEARING
INTEREST COVERAGE RATIO
The Group’s gearing ratio—the ratio of total debt (including both
long-term and short-term borrowings and bonds outstanding) to
total assets—was 41.9% and 44.3% as at 31 December 2023 and
31 December 2022, respectively.
The Group’s interest coverage ratio—the ratio of earnings before
interest and taxes to net interest—was 1.6x and 2.3x for the years
ended 31 December 2023 and 31 December 2022, respectively.
RETURN ON EQUITY
The Group’s return on equity—the amount of net profit as
a percentage of total equity—was 6.2% and 14.5% as at 31
December 2023 and 31 December 2022, respectively.
Going concern
The Group closely monitors and manages its funding position and
liquidity risk throughout the year, including monitoring forecast
results, to ensure that it has access to sufficient funds to meet
forecast cash requirements. Cash forecasts are regularly produced
and sensitivities considered for, but not limited to, changes in
power and aluminium prices, foreign exchange rates, production
rates, and costs. These forecasts and sensitivity analyses allow
management to mitigate liquidity or covenant compliance risks in
a timely manner. The situation with the Australian government and
the situation in Ukraine, as well as volatility in commodity, stock,
and FX markets and interest rates, create material uncertainty
in the Group’s ability to meet its financial obligations on time
and continue as a going concern entity. Management constantly
evaluates the current situation and prepares forecasts taking into
account different scenarios of events.
The Group’s management expects that prices on the world
commodity markets will grow and improve results from our
operating activities. The Group is also redesigning its supply and
sales chains, ensuring an optimal equity and debt ratio, searching
for resolutions to logistics issues, as well as ways to meet its
obligations in order to adapt fast to the current economic changes
to support the Group’s operations. For a detailed discussion of
the Group’s going concern in 2023, see Note 1 (e) of the Annual
Financial Statements.
Report on payments to governments
The table below shows the amounts paid by the Group’s entities to
public authorities (primarily in the form of miscellaneous taxes and
levies) in connection with their extraction activities:
Type of payment in 2023, USD ths
Russia
Kazakhstan
Guinea
Guyana
Jamaica
Total
Production fees
−
−
−
Taxes or levies on corporate sales,
production, or profits
77,214
30,764
3,499
Royalties
Dividends
Signing-on, discovery
and production bonuses
Licence fees, rental charges, entry
fees, and other consideration for
licenses and/or concessions
−
−
−
−
−
−
4,807
1,053
Infrastructure improvement
payments
2,403
299
−
−
−
−
−
−
−
−
−
−
−
−
8,892
120,369
−
−
−
−
−
−
146
149
6,155
−
−
2,702
Total
84,425
32,115
3,499
146
9,041
129,226
62
63
CONSOLIDATED REPORT 2023STRATEGIC REPORT Investment programme
and modernisation
METALS SEGMENT
Modernisation to support transition
to pre-baked anodes technology
GOALS
DESCRIPTION
z Significantly cut power consumption
z Reduce GHG emissions, such as fluoride and
benzo(a)pyrene
z Improve gas removal efficiency
z Reduce the potroom pollutant emissions into
the environment by 30%
The global transformation of aluminium smelters in Siberia entails
the establishment of new production facilities incorporating the
advanced pre-baked anode technology and environmentally
friendly electrolysers designed by RUSAL in-house. The project is
expected to span a decade for completion.
1,380
ktpa
Total capacity to be modernised
10
years
project implementation period
Our investment programme and a push for
modernisation are fully aligned with the Group’s
strategic objectives.
For more details on En+ Group’s
strategy, see the Strategy section on
page 24-27.
Production enterprise expansions
GOALS
z Improve raw-material security
z Increase production capacity
z Cut primary aluminium production costs
z Increase the share of value-added products
DESCRIPTION
z One of RUSAL’s flagship projects is the Taishet Aluminium
Smelter (TAZ) located in the Irkutsk Region. The initial
stage, Stage 1, came online at the close of 2021, boasting
a capacity of 428.5 ktpa. Ramp-up to full capacity is
expected to be completed before the end of 2024.
z To ensure uninterrupted supply of high-quality pre-baked
anodes to Siberian aluminium smelters and reduce primary
aluminium production costs, the Group is progressing
with its key CAPEX project to construct the Taishet Anode
Factory (TAF). This initiative aims to produce approximately
400 kt of pre-baked anodes annually.
428.5
kt
Aluminium production capacity
of the TAZ project’s first stage
RESULTS
TAZ’S KEY SUSTAINABILITY BENEFITS:
RESULTS
In 2023, design documentation of KraZ and BraZ received
positive opinions from the Main Department of State Expertise
(Glavgosexpertiza) and
the State Environmental Review Office.
z Pre-baked anode technology was integrated
z 100% of required power supply will be
covered by hydro to support low-carbon,
green aluminium production
z A closed-loop water recycling system to cut
costs and reduce the environmental impact
z Modern gas cleaning equipment such as dry
alumina scrubbers with a 99.5% purification
efficiency
z In 2023, significant progress was made on the TAF
project, including assembling frames for main process
buildings and structures, ongoing installation of enclosing
and interior structures, as well as the construction
of engineering infrastructure facilities. Furthermore,
the supplies and installation of core process equipment
at all production stages are on track.
z During 2023, the TAZ project continued to achieve further
commissioning milestones, with 85 RA-400 electrolysers
up and running, bringing the total count to 166 by
the year-end.
64
65
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Investment programme and modernisation
POWER SEGMENT
STRATEGIC REPORT
New Energy programme
2023
RESULTS
FROM 2026
PLAN
GOALS
DESCRIPTION
z Modernise the Angara and Yenisei cascade HPPs
z Ramp up generation from the same volume of water
passing through HPP turbines
z Improve safety and reliability of the HPPs, which will
mitigate the risks associated with cavitation and address
the HPP generator wear problem
z Reduce the Company’s environmental footprint by
curbing the GHG emissions from the Company’s coal-
fired power plants
The New Energy Programme targets large-scale overhauls
and upgrades to core equipment at Group’s major Siberian
hydropower plants, i.e. Krasnoyarsk, Bratsk, Irkutsk, and Ust-
Ilimsk HPPs. This initiative involves upgrades to hydraulic units
and the replacement of runners to enhance efficiency. The
upgraded runners, boasting improved blade designs and new
materials, are projected to increase efficiency by up to 8%.
Modernisation CAPEX is expected to total RUB 21 billion by 2026
(USD 234.1 million ), including investments already made (RUB 17
billion2).
2.2
TWh
Increase in electricity production
2.4
TWh
additional generation
RESULTS
2023 highlights include a runner replacement at Bratsk HPP,
with work started to replace another runner. A runner was also
replaced at Krasnoyarsk HPP, with another runner replacement
now underway.
2.515
mt CO2e
2.8
mt of СО2e
per year
Avoided GHG emissions from coal-fired generation
Avoided GHG emissions from coal-fired generation
Bratsk HPP
Ust-Ilimsk HPP
Krasnoyarsk HPP
Irkutsk HPP
18
16
12
8
15
2007–2023
3 by 2026
4
2014–2018
5
2016–2023
3
2019–2023
0
100% of planned
work completed
3 by 2025 году
1 by 2024 году
1,375,580
304,966
294,244
195,454
Hydraulic
units
Runners
replaced
Runners
to be replaced
Total incremental
generation from
hydraulic units with
new runners, 2023
actual, MWh
Energized for action
1 Calculated based on the RUB/USD exchange rate of RUB 89.6883 per dollar as at 31 December 2023.
2 USD 227.5 million at the RUB/USD exchange rate of RUB 89.6883 per dollar as at 31 December 2023.
66
An important achievement of the company in the field of
digitalisation is the creation and implementation of automatic
predictive diagnostic systems
The predictive diagnostic system is based on artificial intelligence
The data-driven, AI-powered solution leverages historical data to
and allows to predict defects and prevent accidents on
predict defects and prevent generating equipment failures. The
generating equipment based on historical data. The programme
solution has been patented and is currently being rolled out at
received a patent and is currently being implemented at the
Bratsk HPP, due for deployment at Ust-Ilimsk HPP this year.
Bratsk HPP. This year it is planned to install it at the station in
Ust-Ilimsk.
67
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Investment programme and modernisation
Small HPP projects
CHP modernisation programme
GOAL
DESCRIPTION
GOALS
DESCRIPTION
z Increase energy generation from small HPPs
8.1
MW
Expected generation capacity of small-scale
Segozerskaya HPP
To advance its strategic goal of boosting hydropower capacity,
En+ Group’ has built a preliminary project portfolio equivalent
to up to 200 MW total installed capacity. Feasibility studies for
these projects will determine their viability and implementation
timelines.
En+ Group is making progress on the small-scale Segozerskaya
HPP project in Karelia, Russia, taking advantage of a state
programme supporting renewable-energy projects through the
Capacity allocation contracts (CACs) mechanism. The project’s
total expected CAPEX is RUB 3 billion (USD 33,4 million1).
RESULTS
The small-scale Segozerskaya HPP construction and installation
works progressed in 2023, including excavations for the HPP
building, tail race channel construction, and pipeline laying for
local treatment facilities.
Plans for 2024 encompass completing construction tasks such as
erecting the HPP base build, installing local treatment facilities,
and assembling core hydraulic equipment.
Wind power project
GOAL
DESCRIPTION
z Promote renewable generation in the Russian
Far East
1
GW
En+ Group and CHN Energy signed a joint letter of intent to
promote collaboration with a focus on developing the low-
carbon energy sector in Russia with support from the Russian
Far East and Arctic Development Corporation and the Amur
Region government. The two companies will explore electricity
export potential to China via existing transmission lines, and
construction of new grid infrastructure.
Potential capacity of wind farm in Amur Region
RESULTS
Currently, En+ Group is assessing wind energy feasibility in
the Amur Region to select the best wind farm configuration
and estimate the capital costs required for the project
implementation. The Company is also considering possible
options for the grid connection design. Collaboration between
En+ Group and CHN Energy focuses on engaging potential
technology partners to support project implementation.
The project timeline encompasses key parameter development
over 6 to 12 months, followed by the implementation phase
involving design, construction, and capacity ramp-up and
spanning up to three years.
z Enhance the reliability and safety of En+
Group’s CHPs equivalent to 1,445 MW total
installed capacity
z Improve local environmental conditions
in the Irkutsk Region
33.6
%
En+ Group participated in the state programme for CHP
modernisation ensuring a guaranteed return on investment. The
programme involves signing CACs with buyers, market regulators
(ATS), and generating companies in the wholesale market, setting
the key criteria for participation in the modernisation programme,
parameters of capacity supply after the modernisation, and
return on investment. En+ Group anticipates a return of up to
14% on its investments into modernisation projects, with a total
expected CAPEX estimated at around RUB 26.4 billion (USD 294.4
million1) by 2026.
Planned upgrade of the total installed CHP capacity
RESULTS
In 2023, TA-1 transformers at CHP-6 (Bratsk), TG-2 turbo
generators and a K-4 boiler unit at CHP-10 (Angarsk) were put
into operation. Full supply of power from TG-3 to Novo-Irkutsk
CHP (Irkutsk) commenced. Core equipment was delivered
to CHP-9 (Angarsk) and Ust-Ilimsk CHP (Ust-Ilimsk). CHP-11
highlights: design activities, core equipment deliveries, and TA-3
certification were completed.
In 2024, there are plans to continue programme
implementation at CHP-6, CHP-9, CHP-10, CHP-11, Novo-
Irkutsk CHP, and Ust-Ilimsk CHP.
DESCRIPTION
En+ Group is evaluating the feasibility of constructing new solar
power plants in its regions of operation, i.e. the Krasnoyarsk
Territory, Irkutsk Region, Republic of Buryatia, and Trans-Baikal
Territory.
Solar energy projects
GOALS
z Increase solar generation
107
million kWh
RESULTS
Additional generation of solar power plant
expansion projects
Through a partnership with Unigreen Energy, Russia’s largest
manufacturer of renewable energy equipment, the Company is
formulating a project to expand the capacity of Abakan SPP in
the Republic of Khakassia from the current 5.2 MW to 25 MW
using domestically produced equipment.
1 Calculated based on the RUB/USD exchange rate of RUB 89.6883 per dollar as at 31 December 2023.
68
69
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 02 04
Sustainable
development
76
79
80
Sustainability management
Materiality assessment
Contribution to Sustainable
Development Goals
86
86
Climate change
100
Energy management
104
Environmental protection
Climate and environment
126
People
168
Governance
126
138
153
Occupational health and safety
168
Corporate governance
Employees
196
Information for shareholders and investors
Contribution to local communities
200
Internal control and risk management
208
Corporate ethics and compliance
214
Stakeholder engagement
226
Responsible business practices
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTCONSOLIDATED REPORT 202370717170 SUSTAINABILITY
IS IN OUR DNA
Why is
sustainability
important
to En+
Group?
Part of our
culture
Long-term
value creation
Meeting the interests
and expectations of
stakeholders
En+ Group complies with standards
and rules for honest business conduct
and ethics, respects human rights,
and implements projects to reduce the
impact on the environment and climate in
the regions of responsibility.
For more details, see the
Corporate Ethics and
Compliance section
En+ Group is highly focused on developing
sustainable products, using advanced
best available technologies to create
long-term value.
En+ Group follows responsible business
practices and takes into account the needs
and interests of all stakeholders.
For more details, see the
Stakeholder Engagement
section
Supporting our
business model
Mitigating
our risks
Sustainability and global best practices are
embedded into everything we do, with a
commitment to sustainable development
core to En+ Group’s ethos. As part of this
commitment, the Metals segment continues
certification according to ASI standards.
En+ Group effectively identifies and manages
ESG risks in alignment with the Company’s
specific business profile. Risk management
procedures follow a precautionary approach
across all business facets.
72
73
For more details, see the
Business Model section
For more details, see the
Internal Control and Risk
Management section
STRATEGIC REPORTCONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Expansion of Low-Carbon Product Line
Expansion of Low-Carbon Product Line
GRI 305-5
The growing consumer demand for products with a lower carbon footprint fuels our
efforts to expand and promote a dedicated line of sustainable products that meet
these demands.
As global demand for low-carbon energy keeps growing every year 1, En+ Group is
riding this trend by expanding its renewable capacity across hydro, wind, and solar.
En+ Group has a large portfolio of renewable capacity expansion projects.
1
LOW-CARBON ALUMINIUM
BRAND ALLOW
2
ALLOW INERTA LOW-CARBON
ALUMINIUM BRAND
ALLOW aluminium is the Company’s flagship brand, offering
customers the opportunity to significantly reduce their carbon
footprint associated with aluminium products. The carbon
footprint of ALLOW aluminium (Scope 1 and 2) is five
times lower than the industry average, which was verified
internationally.
In the reporting year, En+ Group completed the inert anode
technology testing phase. The introduction of the ALLOW
INERTA brand represents a breakthrough in sustainable
aluminium production, as it leverages inert anode technology
to eliminate GHG emissions and cut down production costs.
This technology has undergone comprehensive international
carbon footprint verification process and found its application
in the production of Sayana foil towards the end of 2023.
<2.3
t of СО2 e/t Al
ALLOW aluminium carbon footprint
(Scope 1 and 2)
31
%
the share of ALLOW low-carbon aluminium
in the aluminium total sales volume for 2023
ALLOW sales volume, kt
0.01
t of СО2 e/t Al
carbon footprint of ALLOW INERTA aluminium
(Scope 1 and 2)
4,400
tonnes of
aluminium
produced using inert anode technology since the launch
RENEWABLE ENERGY
Current installed
capacity
15.2
GW
Installed hydro capacity
5.2
MW
Installed solar capacity
Expected installed
capacity
+2.5
GW
Total installed capacity of new HPP projects
+200
MW
Total installed capacity of new small-scale
HPP projects
+1
GW
Potential capacity of the wind farm in the
Amur Region
1 300
3
USE OF RECYCLED
ALUMINIUM
RENEWABLE ENERGY
CERTIFICATES
1 200
955
662
375
196
126
The Company actively incorporates recycled aluminium into its
production processes, expanding the line of recycled products
with a focus on the following areas:
z closed scrap loop
z using recycled metal in billet and slab production at KUBAL
and billets at VgaZ
z producing primary foundry alloys for the automotive
industry from recycled materials.
En+ Group is contributing to the growing demand for
renewable energy by selling green/renewable energy
certificates. These certificates authenticate the generation
of electricity from renewable sources, i.e. energy from water,
aligning with the national voluntary Carbon Zero standard and
unlocking an additional revenue stream for the Company.
Renewable energy certificates help:
z cut Scope 2 GHG emissions and product carbon
footprints
z offer proof of the origin of the consumed low-carbon
electricity.
2017
2018
2019
2020
2021
2022
2023
74
1 According to data from https://www.lowcarbonpower.org.
75
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Sustainability
management
Sustainability governance in the Power and Metals segments
Power segment
Metals segment
For more details on the roles of each
governance body, see the Additional
ESG Data section.
E
z Environmental Policy
z Biodiversity Policy
S
z Policy on Human Rights
z Health, Occupational, Industrial,
and Fire Safety Policy
z Stakeholder Engagement Policy
z Diversity and Equal
Opportunities Policy
G
z Corporate Code of Ethics
z Board of directors Diversity Policy
z Anti-bribery and Corruption Policy
z Quality Policy
z Supplier Standards
BOARD OF DIRECTORS,
EN+
BOARD OF DIRECTORS,
METALS SEGMENT, RUSAL
HEALTH, SAFETY,
AND ENVIRONMENT COMMITTEE
HEALTH, SAFETY,
AND ENVIRONMENTAL COMMITTEE
E
z Biodiversity Policy
CEO, EN+
CEO, RUSAL
PUBLIC EXPERT COUNCIL
ON SUSTAINABLE
DEVELOPMENT
SUSTAINABLE BUSINESS
DEVELOPMENT DEPARTMENT
S
z Communication Policy
z Health, Occupational, Industrial,
and Fire Safety Policy
z Policy on Human Rights
SUSTAINABLE
DEVELOPMENT
DIRECTORATE
SUSTAINABILITY PROJECTS
DEPARTMENT
ENVIRONMENT
DEPARTMENT
CLIMATE RISKS
DEPARTMENT
SUSTAINABLE
DEVELOPMENT
DIRECTORATE
OCCUPATIONAL HEALTH,
INDUSTRIAL AND FIRE SAFETY
DEPARTMENT
DEPARTMENT OF ECOLOGY
AND CLIMATE
FUNCTIONAL VERTICALS
AND ENTERPRISE UNITS
FUNCTIONAL VERTICALS
AND ENTERPRISE UNITS
G
z Internal Audit Policy
z Corporate Code of Ethics
76
77
Appointments/instructions
Review of resolutions, preparation
of recommendations /
implementation of resolutions
Appointments/instructions
Review of resolutions, preparation
of recommendations /
implementation of resolutions
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Sustainability
management
GRI: 3-3
Sustainability management at
En+ Group contributes to inclusive
economic growth, more equitable
social development, environmental
sustainability, and ecosystem safety.
It comprises a range of initiatives and measures that
drive the achievement of our sustainability goals while
incorporating stakeholder views and needs and minimising
negative impacts on the environment and people,
including on human rights and the economy.
GRI: 2-12
GRI: 2-13
GRI: 2-14
Sustainability management is embedded within the
Company’s corporate governance system, enabling a focus
on sustainability issues throughout the organisation: from
the boardroom to the expert units and the shop floor.
Within the Metals segment, sustainability management
responsibilities lie with RUSAL’s Board of Directors.
En+ Group, through its representatives on RUSAL’s
Board of Directors, monitors the Metals segment’s
advancement of the sustainability agenda. Periodically,
the Board committees of En+ Group (Health, Safety, and
Environment Committee) and RUSAL (Health, Safety,
and Environment Committee) hold joint meetings to track
the sustainability strategy status.
For more details on the roles
of each governance body
see p. 76
GRI: 2-25
En+ Group takes a holistic approach to managing the
environmental, social, and economic impacts of its business as
it consistently builds a robust management system based on
international ISO standards and certifies its production facilities to
these standards.
IS0 9001:2015
Quality
management
systems
IS0 14001:2015
Environmental
management
systems
22 enterprises of the
Metals segment1 and all
HPPs and CHPs , included
in LLC "BEK", of the Power
segment are certified to
ISO 14001
25 enterprises of the
Metals segment are
certified to ISO 9001
IS0 45001:2018
Occupational health and
safety management systems
All business units of the Power segment are certified
to ISO 45001
13 business units of the Metals segment are certified
to ISO 45001
ISO 37001:2016
Anti-bribery
management
systems
ISO 50001:2018
Energy
management
systems
In 2023, our
anti-corruption
management system was
independently assessed
for compliance with
ISO 37001:2016
Aughinish Alumina
Refinery holds an
international ISO 50001
certificate
ISO 27001:2005
Information
security
management
systems
ISO 26000:2012
Guidance
on social
responsibility
The Metals segment also maintains certification
to the ASI Performance and Chain of Custody
Standards. 18 sites certified by the end of 2023.
Materiality assessment
GRI 3-1
GRI 3-2
Materiality assessment is an integral part of En+ Group’s
integrated reporting process. When conducting the assessment,
the Company leverages its proprietary methodology to analyse
its context and engage stakeholders into the process.
Based on stakeholder feedback, En+ Group experts generated
a ranked list of impacts and curated a prioritised list of 18 impact
topics divided into three priority groups. In 2023, a new theme
was highlighted—“Just energy transition and low-carbon
products”.
GRI 2-25
The materiality assessment process remained unchanged in
2023: the Company continued to be guided by the GRI
standards. Having analysed its operating environment,
En+ Group revisited the list of impacts on the environment,
economy, and people, including impact on their human rights.
All impacts were grouped into negative and positive across
environmental (E), social (S), and governance (G) pillars.
Stakeholder views were incorporated through a dedicated
survey where the respondents could not only rate our listed
impacts but also could add other impacts they were concerned
about. In 2023, this survey covered 157 representatives from
En+ Group’s diverse stakeholder community.
GRI 2-14
The finalisation of material topics was subject to review and
approval by the Board’s Health, Safety, and Environment
Committee, with the final list thoroughly detailed in the
Consolidated Report 2023.
For more information on the materiality assessment process,
see the Additional ESG Data section
on page 332-333.
Material topics GRI 3-2
I Priority
II Priority
III Priority
z Environmental compliance
and the best available
technologies (BAT)
z Corporate governance
z Economic performance
z Safe waste management
z Human rights
z Social and cultural
diversity and equal
opportunity
z Occupational health and
safety
z Sustainable supply chain
z Just energy transition and
low-carbon products
z Employees management and
engagement
z Air quality
z Local community engagement
z Energy management
z Climate change
z Water and wastewater
management
z Biodiversity
z Innovation management
z Business ethics
78
1
Excluding mothballed capacities.
7979
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT
Sustainability management
En+ Group’s materiality assessment stages GRI 3-1
1
Identification of the
Company’s impacts
2
Assessment of the
significance of impacts
3
Prioritising and grouping
impacts into topics
4
Approval of the list of
material topics
Determination of the method to
incorporate stakeholder views
Setting a threshold to filter out less
significant impacts
Review and approval of the final list of
material topics by En+ Group’s senior
management and Board of Directors
Conducting an online survey of stakehold-
ers to identify the most significant positive
and severe negative impacts
Grouping significant impacts into topics
Prioritising material topics based on their
resulting significance
Testing material topics against internation-
al standards, industry best practices, and
guidelines
Analysis of En+ Group’s context by
internal experts: business model,
Company strategy, business activities
(bauxite mining, alumina refining,
aluminium production, electricity and
heat generation), and business rela-
tionships (relationships with partners
and within the supply chain)
Analysis of feedback from stakehold-
ers, their suggestions and comments,
including through feedback channels
Benchmarking of impacts and mate-
rial topics that were disclosed in the
reports of Russian and international
metallurgical, mining, and energy
companies in previous reporting
period
Analysis of the requirements set
forth in international industry stan-
dards and initiative guidelines
OUTPUT
a list of En+ Group’s actual and potential
positive and negative impacts
OUTPUT
OUTPUT
OUTPUT
a list of impacts ranked by stakeholders
significant impacts grouped into topics
list of approved material topics
Contribution to
Sustainable Development Goals
GRI 2-23
En+ Group embraces the United Nations Sustainable
Development Goals (UN SDGs) and aligns its business activities
with them. Recognising the importance of all 17 UN SDGs,
En+ Group concentrates its efforts on nine goals most pertinent
to its businesses and stakeholders.
In line with the UN SDGs and the global sustainable
development agenda, En+ Group integrates these sustainability
aspirations into its business model, translating them into
measurable targets. The Health, Safety, and Environment (HSE)
Committee is tasked with monitoring progress against these
set targets. The measurable targets in line with the Goals are
detailed in the sections covering relevant sustainability pillars.
For more details on En+ Group’s
contribution to SDGs, see the
SDG Report for 2023.
80
81
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT2/4
Sustainability management
NATIONAL GOAL
EN+ GROUP PROJECT
2023 RESULTS
Contribution to the national development goals
of the Russian Federation
GRI 2-23
En+ Group actively contributes to Russia’s national development goals by
implementing various projects and organising events to engage its stakeholders.
En+ Group’s efforts are focused on supporting strategic initiatives that contribute
to economic development, social welfare, science and technology advances, as well
as on ensuring environmental sustainability and enhancing the quality of life for
people across Russia.
For more details on
En+ Group’s contribution to the
national goals of the Russian
Federation, see the SDG Report.
NATIONAL GOAL
EN+ GROUP PROJECT
2023 RESULTS
Preservation
of the population,
the healthand welfare
of the people
z Setting up corporate
healthcare centre and
facilitating access to medical
care for employees
100
%
Employees got access
to VHI
RUB 424.1
mn
(5.0 USD mn) 1—
investments in
healthcare
z UNIVER training portal
> 100
Number of courses
available for employee
training
z My Career 2.0 programme
30
Employees are to be
promoted following
their participation in the
My Career programme
z World with a Plus Sign and
Helping Is Easy volunteer
support programmes
RUB 77.1
mn
(USD 0.9 mn1)—
investments
in volunteer projects
6,037
people
Number of participants
in Project 360 in 2023 2
z Employment of people
with disabilities
900
People with disabilities
employed by the
Company
z Provision of access
to sports facilities
for employees
z Get on Your Skis project
z Construction of martial
arts centres
RUB 790.2
mn
(9.3 USD mn1)—
investments in sports
facilities
3
Martial arts centres
were built
z Support for cultural
initiatives
Comfortable and safe
environment
z Preferential mortgage
schemes and a housing
programme for employees
RUB 39
mn
(0.5 USD mn1)—
investments in culture
promotion
323
Employees have
purchased housing on
preferential terms
Conditions for
self-fulfilment and
the unlocking of talent
z Knowledge with a Plus Sign
programme
~ RUB 2
bn
(23.2 USD mn1)—
investments in
educational projects
3
Multilabs
Opened in Angarsk,
Bratsk and Nizhny
Novgorod
z Support for infrastructure
projects
RUB 1.2
mn
46
PPP 3
(13.8 USD mn1)—
investments in
infrastructure projects
Projects co-financed
in the Irkutsk Region
1 Hereinafter, calculated based
on the 2023 average USD/RUB
exchange rate of RUB 85.25 per
dollar.
82
82
RUB 400
thsd
(4.69 USD thsd1) — The
amount of grants for the
winners of the Energy
Lab project
z Environmental project
grant competition
21
projects
were supported as part
of the Environmental
project grant
competition
2 Project “360” is one of the largest
environmental volunteer initiatives
in Russia, has been successfully
developing for 13 years and
implements projects to increase
environmental awareness among
local communities.
3 Public-private partnership.
83
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT3/4
Sustainability management
NATIONAL GOAL
EN+ GROUP PROJECT
2023 RESULTS
Contribution to the national development goals
of the Russian Federation
NATIONAL GOAL
EN+ GROUP PROJECT
2023 RESULTS
z Environmental risk
management plan
RUB 17.6
bn
68
%
(USD 207 mn)—
investments in
environmental projects
Share of reused and
recycled waste
z Participation
in the Clean Air
federal project
z Climate Strategy
implementation
350.5
hectares
Land reclaimed
–16.6
%
Reduction of intensity of
air emissions per revenue
(mn RUB) in Power
segment compared to
2021
> 30
mn
Carbon Zero certificates
sold by En+ Group
2.3
t CO2e/t Al
intensity of GHG
emissions (Scope 1
and 2)
5,948
thousand GJ
↓ 12.9
%
Energy saved through
energy-efficiency
measures
intensity of GHG
emissions from
electrolysis operations
for the Metals segment
(compared to 2014)
z Biodiversity conservation
programmes
79
2,830
m
z Lake Baikal protection
programme
Number of identified
fisheries offences
fishing grounds seized by
fisheries protection
12 flag species
26 background
species
Biodiversity indicators
for Angara HPPs
13,190
Number of new
employee hires
26
members of the Baikal
plastic free Association
5
years
of Integrated
Environmental Scientific
Monitoring of Lake Baikal
RUB 9.5
bn
Spending on employee
welfare
79.8
%
Employee satisfaction
Decent and effective
jobs and successful
enterprise
z Setting up workers’
associations in various
forms (youth councils,
work councils, women’s
councils)
z Support
for the Dobroservice
advisory support line
z Meal allowance
for employees
z Pension plans
for employees
z Occupational health
strategy implementation
RUB 5.2
bn
(USD 64 mn)—
OHS investments
–5.9
%
LTIFR reduction
compared to 2021
z Support for Russian
suppliers, small and
medium-sized businesses
62
%
13.7
%
Share of purchases
from local suppliers
Share of purchases
from SMEs
Digital transformation
z Development of an internal
electronic document
management system
z Implementation
of the Digital
Transformation Strategy
z The IT Academy project
700
people
226
Number of participants
in the RoboSib robotics
festival
Number of participants
in the IT Academy
project
84
84
85
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT4/484Comfortable and safe environment Climate and environment
Climate change
INTERNAL REGULATIONS
z Environmental Policy
z Regulations on Risk Management
MATERIAL TOPICS
z Climate change
z Energy management
z Just energy transition and low-
carbon products
by 35
%
Reduction of GHG emissions
by 2035 compared to 2018
Governance
GRI 3-3
En+ Group’s climate change management and climate-related
risks mitigation system ensures effective task resolution and
control.
GRI 2-13
Within the Company’s governance structure, the HSE
Committee assumes a pivotal role in monitoring and reporting
these risks to the Board of Directors for prompt consideration.
Senior management is actively engaged in climate-related
decision-making processes, with a specific Climate Change
Taskforce, led by the Chief Operating Officer, driving initiatives
towards achieving climate goals and reporting to the
HSE Committee.
For more details on climate risks
management efforts of the Company,
see the Risks Management section on
page 94.
In 2023, En+ Group revamped its climate risk management
structure, the Environmental and Climate Risk Management
Department was transformed into the Climate Risks
Department and the Environment Department. The Climate
Risks Department is tasked with evaluating and addressing
climate risks.
Climate-related KPIs are set across management levels, from
top management to line management, with target values
established by En+ Group based on in-depth analyses of
processes and employee contributions towards climate goals.
2.3
t CO2e/ t Al
Intensity of GHG emissions (Scope 1 and 2)
5,948
ths
GJ
of energy saved through energy-efficiency
measures
GRI 2-25
En+ Group’s cornerstone internal document addressing
climate change issues is its Environmental Policy.
It sets guiding principles for climate change mitigation
encompassing:
z Consideration of climate risks
z Setting long-term strategic goals
z Stakeholder engagement
z Participation in global and local climate change
initiatives
The Company’s risk assessment methodology for
environmental and climate risks relevant to it is described
in the Regulations on Risk Management. En+ Group
regularly communicates its key achievements in
combatting climate change through publications on the
website netzero.ru and in its annual Climate Reports.
For more details on the Climate Reports for 2021,
2022, and 2023, visit the Company website.
86
86
87
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENTБолее подробно ознакомиться с Климатическими отчетами за 2021, 2022 и 2023 годы можно на сайте Компании.
Climate and environment
Strategy
Management structure for climate-related topics and climate risks GRI 3-3
En+
RUSAL
BOARD OF DIRECTORS, EN+
oversees the implementation of ESG policies,
monitors the achievement of climate targets
BOARD OF DIRECTORS, METALS SEGMENT
oversees the implementation of ESG policies,
monitors the achievement of climate targets
HEALTH, SAFETY,
AND ENVIRONMENT
COMMITTEE
assists the Board of
Directors in addressing
climate-related issues
AUDIT AND RISK
COMMITTEE
ensures the
effectiveness of the risk
management system,
including climate risks
HEALTH, SAFETY,
AND ENVIRONMENTAL COMMITTEE
assists the Board of
Directors in addressing
climate-related issues
GRI 3-3
SASB EM-MM-110a.2
IF-EU-110a.3
En+ Group is working towards achieving carbon neutrality by following these key
principles:
Net Zero Day
SASB EM-MM-110a.2
IF-EU-110a.3
In September, En+ Group in
collaboration with leading climate
experts held a Net Zero Day.
Company representatives showcased
En+ Group’s key ESG projects and
initiatives aimed at reducing climate
impact. The event culminated with
a presentation of the Pathway to net
zero report prepared by the Company.
As part of Net Zero Day, participants
planted trees.
Reduction
of emissions
Avoidance
of emissions
Impact offsetting
and remediation
It has developed a decarbonisation roadmap which sets the
estimated timeline for planned reductions in GHG emissions
for each segment.
CEO, EN+
CEO, RUSAL
Decarbonisation Roadmap, mt СО2 e
CLIMATE CHANGE
TASKFORCE
CHIEF OPERATING OFFICER
DIRECTOR FOR SUSTAINABLE DEVELOPMENT
HEAD OF THE CLIMATE CHANGE TASKFORCE
DEPUTY HEAD OF THE CLIMATE CHANGE TASKFORCE
DIRECTOR FOR SUSTAINABLE DEVELOPMENT
DEPUTY HEAD OF THE CLIMATE CHANGE TASKFORCE
CHIEF TECHNICAL OFFICER
Power
Metals
Offsetting
Balance
0%
0%
0%
0%
0%
9%
21%
23%
35%
57%
100%
ACHIEVING NET-ZERO
GHG EMISSIONS
67.1
61.1
61.5
65.3
65.5
61.0
42.0
38.6
38.9
40.5
39.4
39.7
41.3
43.2
53.2
51.5
43.6
45.2
41.8
31.7
29.0
CHIEF TECHNICAL OFFICER
DIRECTOR OF ALUMINA BUSINESS
25.1
22.9
23.0
25.2
26.5
23.1
22.7
21.3
18.3
16.2
15.7
DIRECTOR OF CAPITAL MARKETS
AND FINANCIAL PRODUCTS
DIRECTOR FOR SALES AND MARKETING
DIRECTOR FOR INTERNATIONAL COOPERATION
OFFICIAL SPOKESPERSON
0
−0.4
−0.4
−0.4
−0.4
−1.9
−10.8
−13.0
−19.7
−29.0
0
CARBON
NEUTRALITY
−47.4
Appointments/instructions
Review of resolutions, preparation
of recommendations /
implementation of resolutions
88
2018
2020
2021
2022
2023
2025
2030
2032
2035
2040
2050
89
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Climate and environment
Emission reduction measures
Measures to achieve carbon neutrality GRI 305-5
METALS
SEGMENT
Alumina
production
MEASURES
1/2
Increase in
energy efficiency
Projects are carried out on a regular basis
across all enterprises of the Division
33%
Progress
Share in the carbon
footprint
For more details on the
measures, see the Energy
Management section
on page 100.
MEASURES
1/2
Estimation of GHG emissions from reservoirs
From 2020 to 2022, the Company conducted a large-scale campaign to measure
anthropogenic GHG emissions from the reservoirs of the Irkutsk, Brask and Ust-
Ilimsk HPPs according to the international methodology of the International
Energy Agency. Measurements have shown that emissions from reservoirs are
lower than global average levels. In 2023, together with the Institute of Global
Climate and Ecology, average coefficients for the Russian Federation were
calculated for reservoirs in boreal and temperate climatic zones.
Progress
POWER
SEGMENT
Hydro
generation
<1%
Share in the carbon
footprint
Greenhouse gas capture
HPP modernisation
Achinsk Alumina Refinery is actively engaged in a pilot operation employing
pollution control technology utilising sludge wet scrubbers to capture carbon
dioxide, where a curtain of alkali-infused droplets formed in the device reacts
with СО2 to form soda. This project is expected to reduce emissions from
sintering furnaces.
The New Energy programme endeavours to revamp En+ Group’s HPPs with
the objective of boosting hydro generation to replace current generation
volumes from CHPs. In 2023, the growth in annual electricity production
reached 2.2 billion kWh, resulting in a substantial reduction of emissions
by 2.515 mt СО2 e.
Progress
Progress
Aluminium
production
27%
Share in the carbon
footprint
Conversion to Eco-Soderberg
technology
Eco-Soderberg technology,
featuring upgraded electrolysers,
was implemented in 2023, resulting
in reduced energy consumption,
lower GHG emissions as well as lower
pollutant emissions.
Progress
309 new electrolysers were
installed in 2023.
New HPP construction
The project is designed to provide the regions with renewable energy.
Plans are made to put Motyginskaya, Krapiva, Nizhneboguchany,
Telmanskaya, and Segozerskaya HPPs into operation. These projects are
progressing at various stages. The launch of Motyginskaya HPP is geared to
facilitate green hydrogen production.
For more details on the measures,
see the Investment Programme
and Modernisation section
on page 64.
Progress
Switching to inert anodes
CHP conversion to gas
Generation at CHP
Transitioning to inert anodes as a substitution for the traditional carbon technology
is set to almost entirely eliminate GHG emissions.
Progress
The project is not only aimed at curbing GHG emissions, but is also expected
to address and overcome relevant environmental challenges. The government
of the Irkutsk region, together with a gas production company, is developing a
gasification program for the Irkutsk region, within the framework of which the
possibility and conditions of converting the Group’s CHPs to gas fuel are being
considered.
Progress
34%
Share in the carbon
footprint
9191
90
90
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Climate and environment
METALS
SEGMENT
MEASURES
2/2
27%
Share in the carbon
footprint
Switching to pre-baked
anodes
GHG emissions from the electrolysis
process are expected to be reduced by at
least a quarter. Taishet aluminium smelter,
using such technology, has been launched
in commissioning mode. The aluminium
smelters modernisation projects envisaging the
conversion to the pre-baked anode technology
have passed the State Environmental
Expertise.
Progress
Scrap recycling
MEASURES
2/2
Increase in energy
efficiency
Progress
For more details on the
measures, see the Energy
Management section
on page 100.
For more details on the measures,
see the Investment Programme
and Modernisation section
on page 64.
POWER
SEGMENT
34%
Share in the carbon
footprint
Hydrogen
energy
VgaZ uses the scrap to produce billets. KUBAL uses the scrap to produce slabs and
billets.
During the reporting period, the Metals segment launched the production of the
PEFA alloy designed for the automotive industry. The product contains 20% of
aluminium scrap, plans are made to increase this to 30% in the future.
Development of cryogenic tank containers
One of the challenges encountered in the advancement of the hydrogen energy
sector is the need to maintain low temperatures during hydrogen transportation.
The Company is actively engaged in developing cryogenic containers, a specialised
technology designed to avert hydrogen evaporation. En+ Group is currently
conducting R&D activities to refine the design of tank containers.
Progress
Progress
Offsetting
Peatland watering
In the reporting period, an initiative to neutralise GHG emissions through
peat deposit secondary watering in the Leningrad Region was launched by
En+ Group in partnership with the Centre for Sustainable Technologies.
In 2023, specialists selected promising peat deposits for watering in the
Dedovo Pole peatland. The initiative is projected to yield a reduction in
emissions by 9–10 tonnes of СО2e per hectare annually.
Development of the hydrogen transport
infrastructure concept
A project is being implemented to develop infrastructure for passenger
hydrogen transport in pilot regions (Irkutsk, Krasnoyarsk). The Company is
holding negotiations with government officials and other stakeholder.
Progress
Forest aerial protection
Hydrogen production by electrolysers
Since 2019, the Metals segment has been implementing a forest aerial
protection and forest fire prevention initiative. The project was officially
registered within the Register of Carbon Units in 2023. Its implementation
is expected to result in the absorption of GHG emissions of over 5 million
tonnes of СО2e by 2033.
The Company is currently exploring the possibilities of hydrogen transportation
and consumption.
Progress
92
92
CCUS technology
En+ Group is exploring the integration of carbon capture, storage, and utilisation
technologies, collaborating with partners from the oil and gas sector.
Capture
93
93
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENTGeneration at CHPAluminium production Risks are considered over three planning horizons.
The greatest number of risks are deliberated in the long term.
Physical risks factors
Acute
Climate and environment
Risk management
GRI 201-2
In 2021, En+ Group conducted an
assessment of climate-related risks and
opportunities following the Task Force on
Climate-related Financial Disclosures
(TCFD) guidelines 1, encompassing over 50
enterprises across various regions. Every
year the Company updates the list of
climate risks and planning horizons.
In the reporting year, as part of this
initiative, two additional enterprises in
Volgograd and Krasnoturinsk were
included in the risk assessment scope.
For the risk assessment purposes,
the Company uses three Shared
Socioeconomic Pathways (SSP)
climate change scenarios
Climate risk assessment stages
Benchmarking and analysis
of data associated with
climate-related risks and
opportunities
SHORT-TERM
MEDIUM-TERM
LONG-TERM
by 2025
by 2030
by 2050
SSP1-2.6
1.5–2 °C warming
Sustainability
SSP2-4.5
2–4 °C warming
“Middle of the road”
SSP5-8.5
4–7 °C warming
“Increasing use of fossil fuels and accelerating
global warming”
Scenario-based assessment of
the climate risks priority
(to determine it, statutory
regulations, available
technologies, the situation in
product markets are analysed;
the time frame of risks and the
severity of their impacts are
taken into account)
Assessment of risk
compliance with En+ Group’s
overall risk management
principles, encompassing
the planning of mitigation
measures as necessary
1
2
3
Physical risks and opportunities
Transition risks and opportunities
En+ Group incorporates any identified physical climate risks
into its business strategy to proactively address potential
impacts on its operations and financial performance.
Physical risks stemming from diverse factors:
The principal risks of the transition period, if occurred,
may result both in financial losses and reputational damages
to the Company.
z Unusually hot or cold temperatures
z Flooding, road erosion due
to prolonged and heavy rains
and showers
z Floods due to abnormal rainfalls
z Storms
z Drought
z Wildfires
z Strong winds
Chronic
z Gradual increase in average annual
temperatures
z Increased number of zero-
temperature phase transitions
z Increased rainfall volume
Physical climate risks
z Infrastructure disruptions
z Breaching of the integrity
of production facilities
z Supply disruptions
z Reduced productivity
Transition climate risks
Regulatory
z Tightening of ASI main requirements
z Development of the Aluminium Sector
Greenhouse Gas Pathway by IAI
z Development of the Carbon Border
Adjustment Mechanism
z Emergence of new Russian legislation
requirements in the field of GHG
emissions regulation
Reputation
z Reputational costs caused due
to a failure to comply with new legal
requirements in the field of emissions
regulation
Technology
z Costs of introducing new technologies
to reduce the product carbon
footprint
z Unstable operation of new equipment
z Increased volume of emissions
caused due to the use of technology
innovations and new materials
Market
z Loss of consumer interest
in the Company’s products due
to their high carbon footprint,
if compared with products
of competitors
z Lower demand for coal
Opportunities associated with physical climate factors
Opportunities associated with transition climate factors
z Construction of new renewable energy generation facilities
due to a wider use of renewable energy sources
z Saving money and fuel resources to a reduced
heating season
z Use of new modern and effective technology innovations
z Profit growth due to increased volume of sales of low
carbon footprint products
z Penetrating new and evolving markets
z The possibility of obtaining additional profit due
to the emergence of new economic instruments:
renewable energy attribute certificates, carbon units from
the implementation of climate projects.
A complete list of the Company’s physical and
transition climate risks is provided in the Additional
ESG Data section
on page 336.
Prior to any construction or modernisation endeavours,
En+ Group meticulously evaluates the potential negative
impacts of natural factors to minimise the likelihood of their
occurrence. This measure allows the Company to safeguard
enterprise structures against climate related hazards.
The impact of such risks is considered both in the short and
long term perspective. Furthermore, En+ Group integrates
these physical climate risks into emergency response
planning.
In 2023, no new physical or transition
climate risks threatening the Company
were identified. None of the risks
previously identified occurred.
1
TCFD—Financial Stability Board (FSB) Task Force on Climate-Related Financial Disclosures. From 2024, the responsibility for companies’ climate disclosures
monitoring is transferred from the TCFD to the International Sustainability Standards Board (ISSB) of the IFRS Foundation.
94
95
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT
Assessment of the impact
of climate change on the
Angara HPP cascade
GRI 201-2
In 2023, the Company continued
work on its project launched in 2022
focusing on Angara HPP cascade
adaptation to climate change.
The project is implementing in collaboration with the Yu.A.
Izrael Institute of Global Climate and Ecology and the
Water Problems Institute of the Russian Academy of Sciences,
who have provided scientific support and assistance
The approach to climate change adaption of HPPs was adopted
in line with the Hydropower Sector Climate Resilience Guide
(developed by the IHA)1 built on the consistent scenario-based
assessment of climate-related risks, stress testing, and the
development and implementation of climate change adaptation
measures. Historical climate change data was assessed and key
trends that have the potential to magnify risk were identified.
For the selected climate scenarios—the most probable
(SSP2-4.5) and stressful (SSP5-8.5)—the main climate risk
factors (changes in temperature, precipitation and humidity)
were determined over three planning horizons—2030, 2050,
2100. Based on this data, a detailed register of physical climate
risks was compiled. A hydrological model of the river flow in the
Lake Baikal basin and the Angara river to the Ust-Ilimsk HPP
was set. It was used to calculate scenario-based forecasts of the
useful water inflow into the cascade reservoirs for the specified
planning horizons.
In 2024, a number of calculations are going to be conducted
using a model simulation of the Angara river water
management system in its upper and middle courses. This
will help the Company develop scenario-based forecasts in
regard to electricity generation at the HPP, and water levels
in the reservoirs. It will also allow for an assessment of the
sufficiency of water supply to consumers and offer reasonable
recommendations as to which measures should be taken to
ensure adaptation to the predicted changes. These outcomes will
serve not only En+ Group but also government bodies at federal
and regional levels.
The findings from the 2023 evaluations laid the groundwork
for regional adaptation projects in the Irkutsk Region, under
guidance from the Adaptation of Russian Regions to Climate
Change PBL programme initiated by the Agency for Strategic
Initiatives.
1
IHA (International Hydropower Organization) -
International Hydropower Association, the largest
association of hydropower manufacturers,
developer of global industry standards.
96
97
97
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023Climate and environment96 Climate and environment
Metrics and targets
SASB EM-MM-110a.2
IF-EU-110a.3
CLIMATE TARGETS OF EN+ GROUP
GOALS
STATUS
PROGRESS made in 2023
z Reduce GHG emissions by 35%
by 2035 compared with 2018
z On track
z Achieve net zero GHG emissions
z On track
balance by 2050
z GHG emissions in scopes 1, 2 and 3
increased by 0.3% compared
with 2022 due to the low water
supply of the Yenisei, the increase
in energy consumption in the Irkutsk
region and the associated increase
in condensation generation from
CHPs.
z The Path to Carbon Neutrality
report for 2023 specifying in detail
the status of the climate projects
implementation was published
on the Company’s website
on September 29, 2023
GRI 3-3
SASB EM-MM-110a.2
IF-EU-110a.3
GRI 305-1, 305-2, 305-3
SASB EM-MM-110a.1
In order to achieve its targets, En+ Group actively pursues
initiatives to prevent and reduce GHG emissions while
implementing compensatory measures. In 2023, the Board
of Directors of En+ Group approved the decision to extend
the medium-term climate target deadline set for 2030
to 2035. The decision was made based on the compelling
need, and the Company’s commitment, to aligning its
operations with evolving challenges and contemporary
realities.
IF-EU-110a.1, IF-EU-110a.2
The Company accounts for GHG emissions in scopes 1, 2 (market
approach) and 3. The calculated metrics included emissions of
carbon dioxide, methane, perfluorocarbon, and nitrous oxide. The
following guidelines were used to carry out the calculations:
z Greenhouse gas protocol Scope 3 Calculation Guidance
z IPCC Guidelines for National Greenhouse Gas Inventories
z Order No. 371 of the Ministry of Natural Resources and
Environment of the Russian Federation On Approval
of Methodology for Quantitative Determination
of Greenhouse Gas Emissions and Greenhouse Gas
Absorptions, dated 27 May 2022
z Methodology for determining direct GHG emissions during
the production of primary aluminium
z Methodology for determining direct GHG emissions during
the production of alumina
z Methodological guidance on the quantitative assessment
of GHG emissions from the production of electricity supplied
from the energy system of the Russian Federation
In 2023, the Company’s gross GHG emissions across its three
scopes were 65.9 million tonnes CO2e, increasing by 0.3%
compared with 2022. At the same time, emissions from the
Metals segment decreased by 3% and amounted to 39.5 million
tonnes CO2e, while emissions from the Power segment increased
in 5%, reaching 26.5 million tonnes CO2e. This dynamics was
caused by a decrease in output from HPPs by 0.3% and an
increase in output from CHPs by 10.1%, which was due to an
increase in electricity consumption in the Irkutsk energy system
by 4.0% in 2023.
GRI 305-1, 305-2, 305-3
IF-EU-110a.1
IF-EU-110a.2
SASB EM-MM-110a.1
Direct (Scope 1) and indirect (Scope 2 and 3) GHG emissions,
mt CO2e
Scope 1, Metals segment
Scope 1, Power segment
Scope 2, Metals segment
Scope 2, Power segment
Scope 3, Metals segment
Scope 3, Power segment
27.2
28.3
28.6
1.1
11.1
1.2
11.0
25.0
23.7
1.4
8.9
21.6
0.5 0.9
0.5
1.0
0.5
1.0
65.9
65.7
61.9
2023
2022
2021
GRI 305-4
Specific GHG emissions (carbon dioxide, methane,
perfluorocarbon, nitrous oxide) released during the electrolysis
operations that were carried out by the Metals segment
decreased by 12.9% in the reporting period compared with
2014 baseline. At the same time, GHG emissions intensity of
Power segment increased by 5% compared to 2022.
↓ 12.9
%
the intensity of specific GHG
emissions from aluminuim
electrolysis decreased
compared to 2014
GRI 305-4
GRI 305-4
Intensity of GHG emissions from electrolysis
operations for the Metals segment,
t CO2e/ t Al
GHG emissions intensity,
mn t CO2e /billion kWh
METALS SEGMENT
POWER SEGMENT
2023
2022
2021
1.98
2.00
2.02
2023
2022
2021
0.23
0.22
0.19
For more information on climate
impacts, see Additional ESG Data
on page 336.
98
99
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT98
Climate and environment
Energy management
Metrics and targets
EN+ GROUP’S KEY GOALS IN ENERGY EFFICIENCY
Governance
Strategy
GOALS
STATUS
PROGRESS made in 2023
GRI 2-13, 3-3
A more efficient use of energy resource also facilitates GHG
emissions reduction. Reducing energy consumption at all
stages of the production cycle is the basis of the Company's
Technical Policy. Energy efficiency issues are within the Board
of Directors’ scope of responsibility. The HSE Committee,
under the Board of Directors, reviews energy efficiency reports
provided by the CEO and makes decisions regarding
recommendations to the Board of Directors. In the Metals and
Power segments, the Technical Directorate is responsible for
improving energy efficiency. Indicators related to energy
consumption and energy efficiency are incorporated in to KPIs
of Company employees.
The Aughinish alumina refinery holds an ISO 50001 certificate,
which allows the enterprise to follow a systematic approach
in achieving consistent improvement of the energy system,
including energy efficiency, energy security and energy
consumption.
81% of the total volume of energy produced in 2023 is
renewable. En+ Group increases renewable electricity
generation from HPPs through implementation of the New
Energy programme. Other projects aimed at increasing the
volume of energy produced by renewable sources are also being
implemented: the construction project assessment of a wind
power plant in the Amur Region is underway. In addition to
this, En+ Group is considering the possibility of expanding the
Abakan SPP.
For more details, see the
Investment Programme and
Modernisation
on page 64.
GRI 302-4
An equally important area for the Company is ensuring
uninterrupted supplies of electric power and heat energy to
customers, and to reduce losses in the networks of its operating
facilities. Measures are being taken by the Power segment to
reduce the costs related to its own electricity and fuel
consumption. This is done through modernisation and
organisational steps, to cut losses of electricity, steam and
condensate, to ensure optimal loads on equipment at CHPs by
saving energy resources and temperature control. As a result of
the implementation of all energy efficiency projects, the energy
savings of En+ Group’s Power segment amounted to
5,958 thousand GJ. The Metals segment is implementing various
initiatives aimed at modernising equipment and improving
technological processes which would allow the Company to
reduce the consumption of electricity and heat energy. In 2023,
the technologies relating to the use of weak liquid solutions in
furnace charge mix production, preventing ore settling in the
hoppers of wet grinding mills, were developed and applied, as
well as energy-efficient and ultra-energy-efficient electrolysers
being designed.
Risk management
In the reporting year, risks associated with energy
management were not regarded as significant and were not
included in the general list of En+ Group’s risks. In order to
minimise the risks associated with energy consumption and
energy efficiency, En+ Group implements energy efficiency
measures at each of its enterprises.
z Reduce the average carbon
z On track
z In order to achieve the target,
intensity of electricity produced
and consumed
the Company is developing initiatives
focused on bolstering the capacity
of renewable energy production,
executing energy efficiency
schemes, and pursuing research
to identify techniques for optimising
load flexibility within a cluster
of CHPs to leverage the advantages
of combined generation more
effectively.
z Increase the use of alternative
energy sources by 2030
z On track
z En+ Group’s Metals segment has
reached the target.
SASB EM-MM-130a.1
The Metals segment continues
to produce aluminium using carbon-
free energy sources.
The Power segment is increasing
the production of electricity from
renewable sources through improving
the efficiency of existing HPPs,
it is also formulating initiatives aimed
at increasing the volume of renewable
energy production (HPPs, wind power
plants, solar power plants).
z Annual hydroelectricity output surged
by 2.2 TWh, leading to a decrease
in annual emissions by 2.8 mt CO2 e.
This increase in hydroelectric power
production enabled the Company
to partially replace the electricity
generated by CHPs to meet
the demand
z Increase the efficiency
z On track
of HPPs, increase the production
of clean electricity by 2.5 TWh,
prevent emissions of over
2.5 mt CO2 equivalent per year from
coal-fired power plants starting
from 2025
100
101
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT101
Climate and environment
2024
GRI 302-1
SASB EM-MM-130a.1
GRI 302-1
SASB EM-MM-130a.1
In 2023, the Company consumed a total of 353.0 energy, which
is 0.8% more than in the previous year.
Energy consumption, mn GJ2
PLANS FOR 2024
AND BEYOND
2023
2022
2021
GRI 302-3
The energy intensity metrics of the Metals segment for the
period reached 117.4 GJ per ton of aluminium, which is 7% less
than since 2021. Energy intensity of the Power segment for the
period was 2.658 GJ/MWh, increased by 25% compared to
2021 due to reduction of HPP generation and increase in CHP
generation.
GRI 302-3
GRI 302-3
Energy intensity 1, GJ/t of aluminium
Energy intensity, GJ/MWh
METALS SEGMENT
POWER SEGMENT
2023
2022
2021
117.4
119.0
127.2
2023
2022
2021
353.0
349.9
307.1
2.658
2.486
2.132
1
The 2021–2022 indicators differ from those given in the 2022 Sustainability Report due to changes in the calculation methodology. The energy data used in the calculation
includes purchased electricity and heating.
2 Hereinafter energy data does not include Onda HPP. Data for 2021-2022 was changed due to clarification of coefficients.
102
For more information on energy consumption,
see the Additional ESG Data section
on page 332.
Complete the assessment of
the climate change impact
on the Baikal regions and
the operation of the Angara
cascade HPPs. Develop
proposals for adaptation
measures
1
Continue the transition of
aluminium smelters to the
pre-baked anode technology
Introduce and incorporate
energy efficiency measures
Increase low-carbon energy
generation
Develop hydrogen energy
support projects
Implement offsetting
projects (forest aerial
protection, peatlands
watering)
3
6
Identify and initiate new
projects to offset GHG
emissions
4
7
2
5
103
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT103
Climate and environment
Environmental protection
INTERNAL REGULATIONS
z Environmental Policy
z Biodiversity Policy
z Regulations on the Health, Safety,
and Environment Committee
z Supplier Standards
z Corporate Code of Ethics
MATERIAL TOPICS
z Air quality
z Water and wastewater
management
z Safe waste management
z Biodiversity
z Environmental compliance and
the best available technologies
(BAT)
207
USD
mn
investments in environmental protection
77
%
share of recycled and circulating water
68
%
of waste was recycled
350.5
were reclaimed
hectares
Governance
GRI 3-3
GRI 2-25
En+ Group acknowledges its environmental responsibility and is
committed to preventing and mitigating the impact of its
operations on the atmosphere, water bodies, land resources,
and biodiversity. The Company adheres strictly to legal
regulations, engages in R&D activities, actively participates in
the Clean Air federal project, and continuously upgrades its
equipment. Throughout these processes, En+ Group engages
with stakeholders and takes into account their environmental
protection priorities.
In a bid to minimise its environmental impact, the Company
deploys best available technologies at its operating facilities.
BAT technologies are assessed for conformity during the
acquisition of integrated environmental permits for facilities.
All En+ Group structural units, from the boardroom to the
function room, are involved in delivering on the environmental
agenda. Furthermore, environmental performance metrics
are integrated into KPIs set for managers overseeing the
implementation of investment projects and environmental
protection initiatives.
Environmental departments and their functions
Board of Directors
HSE Committee
Sustainable development
Directorate
Environmental protection
teams at enterprises
z Provide environmental
stewardship at the segment
level
z Identifies and evaluates
environmental risks
z Develops environmental
risk management measures
z Exercises control over
the implementation
of measures to eliminate
or minimise environmental
risks
z Oversees the imple men-
tation of the Company’s
environmental protection
policies
z Oversees progress against
environmental protection
targets
z Manages risks, including
environmental risks
z Feeds into the policy
development process
z Makes recommendations
to the Board of Directors
z Oversees the Company’s
compliance with legal
requirements and
standards governing
environmental protection
z Evaluates the Group’s
environmental protection
performance
(The Regulations on the
HSE Committee contain
a detailed description of
its roles)
For more details on the roles of the
Environment Department, see the
Additional ESG Data section
on page 331.
In the reporting year, the following topics were raised at the HSE
Committee meetings:
The development
status of the
environmental and
climate strategy
Environmental risk
management
Urgent information
regarding the
biodiversity strategy
Progress against
the KPIs set for
environmental
protection and climate
104
104
105
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT
Climate and environment
The main corporate documents regulating environmental protection issues at En+ Group
Environmental Policy
En+ Group’s main document governing
environmental protection. Describes the
Company’s principles regarding environmental
stewardship, the environmental agenda key
focus areas, and the respective obligations of
the CEO
Supplier Standards
Contain requirements obliging suppliers
to comply with environmental laws, deploy
environmental tracking systems, and assess
environmental risks
Corporate Code of
Ethics
Establishes the Company’s commitments
to preventing incidents that cause harm
to environmental media, complying with
environmental requirements, and running
educational environmental events for employees.
Agreements that the Company enters
into with contractors and suppliers
stipulate compliance with En+ Group’s
Environmental Policy, encompassing
obligations for both parties.
The Company’s environmental
management system (EMS) is certified
to ISO 14001:2015 and the Russian
GOST R ISO 14001-2016 Environmental
management systems. En+ Group
constantly expands its EMS, notably
extending its coverage to JSC Irkutsk
Grid Company in 2023 with the
development of well-documented
procedures, including for managing
environmental aspects.
Throughout its operations, En+ Group is
guided by the requirements of Russian
law, including the Federal Law On
Environmental Protection №7.
Strategy
GRI 3-3
The operating activities of En+ Group impact air quality, with
emissions primarily originating from aluminium smelters in the
Metals segment and CHPs in the Power segment.
In order to mitigate the emissions of pollutants, En+ Group
ensures compliance with the Federal Law On Protection of
Atmospheric Air, and the Order of the Ministry of Natural
Resources and Environment On Approval of Requirements
for Measures to Reduce Emissions of Pollutants into the
Atmospheric Air in National Emergencies. The Company strives
to reduce pollutant emissions. Environmental operational
control (EOC) at the Company encompasses instrumental
measurements of pollutant concentrations at all operations to
ensure compliance with established limits and standards.
En+ Group’s facilities situated within city limits in Krasnoyarsk,
Bratsk, and Novokuznetsk actively participate in the Clean
Air federal project, targeting a 20% reduction in emissions
across 12 cities by 2026. Efforts to reduce emissions include
modernising aluminium smelters at the Metals segment and
installing dust collection equipment at the Power segment,
alongside the Company’s ongoing initiatives to boost energy
production efficiency.
Throughout the reporting period, Company facilities implemented measures to minimise air pollution,
embedding actions within the Clean Air project:
APPLICATION OF
BEST AVAILABLE
TECHNOLOGIES
INSTALLATION AND UPGRADE
OF GAS CLEANING UNITS AND
ELECTROSTATIC PRECIPITATORS
R&D ACTIVITIES
FITTING OUT FIXED SOURCES
WITH AUTOMATIC EMISSION CONTROL
AND ACCOUNTING SYSTEMS
The Company is consistent in its efforts to action the conversion to Eco-Soderberg and pre-baked anodes
MODERNISATION OF ALUMINIUM SMELTERS
MODERNISATION OF GAS PURIFICATION SYSTEMS AT COAL-FIRED CHPS
GRI 3-3, 303-1, 303-2
The Company’s operational demands necessitate significant
water resources. Consequently, the Company continually
improves water management efficiency by boosting the share
of reused and recyclable water and consistently enhancing
wastewater treatment processes. Regular assessments monitor
the Company’s impact on water resources, ensuring continuous
monitoring of industrial wastewater quality. These measures are
taken, inter alia, as part of environmental operational control
efforts.
When doing so, the Company is guided by legislative,
sanitary, and epidemiological requirements applicable to the
discharge and quality of wastewater, as well as by the following
documents:
z Decision to grant the right to use water bodies
z Permission to discharge pollutants and microorganisms into
water bodies
z Integrated environmental permit
z Environmental impact statement
z Standards for permissible discharges of pollutants into
water bodies
106
107
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT
Climate and environment
SASB IF-EU-140a.3
GRI 3-3
SASB EM-MM-150a.1
GRI 3-3
SASB EM-MM-160a.2
The Power segment, while managing the water use of HPP
reservoirs, adheres to the requirements stipulated by the
Federal Water Resources Agency of the Russian Federation.
Accredited laboratory specialists conduct sampling of
wastewater and reservoir water to monitor the concentrations
of priority pollutants such as petroleum products and
suspended particles. In order to prevent pollutants from
entering water bodies, Company specialists inspect, on a
regular basis, the integrity of power generating and auxiliary
equipment.
In 2023, the Metals segment published
its first voluntary Water Resources
Management Report.
GRI 3-3, 306-1, 306-2
SASB EM-MM-150a.1
The operational activities of En+ Group’s Power segment
produce waste materials such as overburden rock, ash, and
slag, while the Metals segment generates overburden rock,
red and nepheline slime, and spent carbon lining. Processes
associated with waste generation include coal combustion at
Power segment CHPs and the refining of bauxite and nepheline
ores at the Metals segment. The primary environmental impact
of waste arises from the Company’s disposal practices at
designated facilities. To mitigate this impact, the Company
enhances the environmental safety of its waste storage and
disposal facilities, conducts regular monitoring of disposal
site safety, implements separate waste collection initiatives at
production sites and offices, and facilitates waste transfer for
recycling and utilisation to enable further consumer use.
GRI 3-3
SASB EM-MM-150a.10
SASB EM-MM-150a.9
Waste management operations at the Power segment
are guided by the internal Waste Management Standard,
governing the collection, treatment, recycling, reuse,
disposal, and landfilling of waste products. Compliance with
this standard at Company facilities was audited in 2023,
with the Power segment devising a long-term ash and slag
waste management programme in the same year. The
Power segment places a particular focus on ash and slag
utilisation. Potential applications for waste products include
road construction, waste site remediation, mine workings
and quarry applications, as well as land infilling, grading, and
levelling. Taking into account global trends in the disposal of
ash and slag, specialists are also exploring avenues for selling
ash and slag to construction material manufacturers and
extracting iron-containing concentrate from these materials.
Ash dry-stacking initiatives are implemented as scheduled, as
well as initiatives focused on bolstering the residual capacity of
existing coal ash disposal sites.
The Metals segment aligns its activities with its own
industrial Waste Management Strategy to 2030, guided by
the Zero Waste to Landfill principle. In 2023, inventories of
generated and stored waste stock were tallied across the
Group’s enterprises, safe waste management programmes
for 2024–2029 were approved, and relevant performance
targets were set.
SASB EM-MM-540a.1, EM-MM-540a.2, EM-MM-540a.3
The Metals segment is committed to preventing emergencies
(leaks and spills) at hydraulic structures (HS) where sludge
is stored. Emergency containment and management plans
are in place for all hydraulic structures, describing the most
likely emergency scenarios, providing action procedures
in emergencies, and estimating the resources required for
accident containment. In 2023, comprehensive inspections
were undertaken for all hydraulic structures, finding the
facilities in good operating condition. The segment ensured
structures were ready for the flood season and conducted
relevant trainings and briefings for relevant responsible
persons involved. In 2024, the segment is planning to approve
the Safe Sludge Dumps Management Policy it previously
developed.
Sludge reuse
In 2023, the Company put 1,860,000 tonnes
of sludge back to economic use. The waste was
used by the segment’s enterprises and sold
to other companies. The industries in which
generated sludge can be used include ferrous
metallurgy, production of building materials,
and road construction.
Energized for action
Green Office
Since 2022, En+ Group has been progressively
introducing the Green Office initiative to
establish a comfortable and healthy work
environment, thus minimising environmental
impact and promoting a prudent use of natural
resources. A pivotal element of the programme
is to ensure efficient separate waste collection
and optimal utilisation practices. Company
employees attend training sessions to better
understand the importance of sorting waste
and proper handling procedures. Separate
waste collection bins (for glass, metal, plastic,
and mixed waste) have been installed in
offices at various locations, such as Moscow
and Irkutsk, Irkutsk, Bratsk, Krasnoyarsk and
Ust-Ilimsk HPPs, and multiple CHPs. In 2023,
the initiative expanded to include battery and
clothes collection, with gathered waste being
subsequently transported to waste processing
facilities for further treatment.
An important area of En+ Group’s
efforts to minimise its environmental
impact is remediation, as prescribed
by internal subsoil use documents.
Land rehabilitation also plays a key role
in preserving biodiversity across our
footprint.
The Company prevents acid waste generation across its
facilities to avoid changes in soil chemical compositions and
adverse impact on plant life. Due to the absence of sulphide-rich
rocks in the Metals segment’s bauxite and nepheline deposits,
acidic effluents do not arise from these sources.
350.5
ha
recultivated in 2023
LAND RECLAMATION ENCOMPASSES
SEVERAL STAGES
Completion of open-pit mining and
decommissioning of waste disposal
sites
Development and approval of
remediation projects
Restoration of disturbed terrain
and soil upon completion of
open-pit mining, waste disposal site
remediation, and reclamation of
disturbed and contaminated lands
Monitoring vegetation cover of
reclaimed land
Land rehabilitation and reclamation
at our Guinea operation
Green Wave
GRI 304-3, MM1
GRI 304-3
At the Metals segment, disturbed land reclamation
efforts launched at COBAD’s mining site in
2021. In the reporting period, 26 hectares were
rehabilitated. Specialists restored the ground
surface by reinserting overburden into excavated
bauxite mines. Subsequently, the soil cover was
reinstated, vegetation was planted, and the site’s
status was observed for a duration of five years.
Should any plants die, replacements will be planted.
Furthermore, a two-year ban on livestock grazing
and equipment passage is in place at the site.
As a mining business, En+ Group places significant
emphasis on reforestation efforts. In 2023, the Metals
segment continued its forest restoration efforts,
with the recurring Green Wave campaign being a
highlight for the Company. In 2023, volunteers from
Yerevan and Boksitogorsk, as well as En+ Group
employees based in Divnogorsk and Irkutsk, joined this
campaign for the first time. Throughout the reporting
period, a total of 1,240 volunteers planted over
2,200 seedlings across 18 cities as part of the initiative.
Concurrently, a project aimed at safeguarding
forests from fires using aerial equipment made
good progress.
108
109
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT
Climate and environment
En+ Group consistently organises
training sessions for its employees
and runs specialised programmes
for environmental safety specialists
within the Company.
Ecological Dictation
The annual national Ecological Dictation was
held across En+ Group entities for the fifth year.
In 2023, the event attracted over 250 Company
employees. They answered questions related
to geology, biology, energy, and sustainable
development. The event serves to promote
environmental awareness and foster interest in
nature conservation efforts.
Lectures on eco-conscious behaviours
for HPP employees
During the reporting year, a lecture on eco-conscious
behaviours was delivered to employees from Irkutsk,
Bratska, and Ust-Ilimsk HPPs, focusing on promoting
responsible consumption practices, guidelines for
sorting waste, Green Office standards, and sustainable
procurement methods. Participants were also taught
the significance of conserving energy and water.
Trainings and workshops for ecologists
In 2023, a business game workshop convened over
30 ecologists from enterprises categorised as having
a Class I significant environmental impact. The event
dived into the processes surrounding the acquisition of
integrated environmental permits and the intricacies
of developing programmes to improve environmental
performance. In March 2023, employees of Irkutsk,
Bratsk, and Ust-Ilimsk HPPs joined forces with staff
from the management office to participate in training
sessions focusing on biodiversity conservation
practices at a corporate level.
Risk management
GRI 3-3
En+ Group conducts regular environmental risk assessments for
each operational site. In 2023, the risk assessment conducted
revealed no new risks, and previously identified risks did not
materialise.
The Power segment developed its own environmental risk
management plan and is systematically implementing relevant
measures. The plan outlines specific measures to manage
identified risks and lays out a timeline for achieving the set
targets related to risk mitigation.
Strategic Plan for Environmental Risk Management at the Power segment
GRI 3-3
Event
Implementation period Progress made in 2023
Environmental risk assessment
2021–2032
The remedial action plan is being updated. As of 2023,
no new environmental risks were identified, and the
assessment continues
Continuous improvement of the
environmental management system
2022–2026
As of 2023, all Company HPPs and CHPs have been
certified
Minimisation of sulphur emissions into the
atmosphere
Active participation in environmental
stewardship initiatives
Increased involvement of management and
employees in environmental protection
and climate change mitigation activities
and promotion of environmental awareness
at work
Increased involvement of suppliers and
consumers in environmental protection and
climate change mitigation activities
Development and implementation of
a long-term programme to reduce discharge
of untreated wastewater and minimise
non-production water losses
Implementation of projects focused on
achieving BAT targets at Vostsibugol’s
operational sites
Improvement of wastewater treatment
processes at HPPs
Implementation of measures to increase
the share of recycled and reused waste
and ensure its safe disposal, accumulation,
and utilisation
2023–2032
Sulphur emissions decreased by 1% compared with 2020
2022–2032
2022–2032
2022–2032
2021–2031
The Company continues to participate in the Baikal without
Plastic initiative
Educational events were held for Company employees,
including environmental protection specialists
En+ Group monitors compliance with waste disposal
requirements by its suppliers and contractors
Design documentation for local treatment facilities at
Bratsk and Ust-Ilimsk HPPs is being finalised
2021–2031
BAT targets will be achieved in 2024 upon receipt of the
integrated environmental permit
Construction and installation activities commenced
at Irkutsk HPP (wastewater treatment facilities design
documentation was completed last year)
In 2023, the Roadmap for Large-Scale Use of Ash and
Slag Waste was developed. 63% of waste was recycled or
reused in 2023
GRI 3-3, 303-1, 303-2
According to the Aqueduct Water Risk Atlas compiled by the
World Resources Institute (WRI), some En+ Group enterprises,
including RUSAL Armenal (Yerevan, Armenia), operate and
withdraw water in regions with high water stress risk. To minimise
the impact on water resources within these high-risk areas,
the Company deploys recycled water supply systems.
In 2023, RUSAL Armenal continued to roll out this system,
addressing and rectifying any shortcomings. Required
equipment was supplied and installed, with the scheduled
completion of this effort set for 2024.
110
111
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT
Climate and environment
Metrics and targets
GRI 2-27
SASB EM-MM-140a.2
IF-EU-140a.2
GRI 3-3
Throughout the reporting period, no incidents occurred
that would have resulted in significant1 environmental
harm. Following supervisory inspections, any warnings and
remediation orders received were duly acknowledged,
and corrective action plans were formulated.
RUB 17.6 bn (USD 207 mn) was earmarked for environmental
initiatives for the period. Most of the funds were allocated to
atmospheric air emission protection. Overall, the cost ratio
remained consistent with the previous year. Fees for negative
environmental impact totalled RUB 1,065.5 mn.
Total environmental protection costs2, %
Air protection
Land rehabilitation
Waste management
Environmental equipment maintenance
Water protection
Other expenditures
3.1
8.7
2.1
20.3
USD 207 mn
3.0
62.9
GRI 305-7
SASB EM-MM-120a.1
IF-EU-120a.1
In 2023, pollutant emissions totalled 691.6 kt which is
4.4% higher than in 2022. This dynamics was caused by a
decrease in output from HPPs by 0.3% and an increase in
output from CHPs by 10.1%, which was due to an increase
in electricity consumption in the Irkutsk energy system
by 4.0% in 2023. At the Metals segment, emissions were
mainly caused by carbon monoxide (66.7%), and by sulphur
oxides (59%) at the Power segment.
Notes: Data for the Friguia Bauxite and Alumina Complex,
which may be relevant for consolidated indicators, are
excluded due to the lack of measurement systems and
relevant requirements in national legislation.
Atmospheric emission intensity indicators
Total air emissions
(excluding GHG emissions), kt
Power segment
Metals segment
2023
2022
2021
371.7
362.6
368.9
319.9
299.6
274.4
691.6
662.2
643.3
Pollutant
Metals segment.
kt/kt
Power segment.
kt/TWh
2021
2022
2023
2021
2022
2023
Nitric oxides (NOx)
0.006
0.052
0.006
0.3701
0.4476
0.4310
Sulphur oxides (SOx)
0.0120
0.012
0.010
1.2992
1.4809
1.6065
Particulate matter
0.01
0.01
0.01
0.4720
0.5787
0.64
Volatile organic compounds (VOCs)
0.0003
0.0002
0.003
0.0032
0.0025
0.0032
Notes: To track the results of measures to reduce the negative impact on environmental components, the Company calculates emission intensity
indicators tied to the volume of aluminium produced (for the Metals segment) and the volume of thermal and electrical energy produced
(for the Power segment). The denominator values are indicated in the appendices and are common to all specific environmental indicators of the
segments in the “Climate and Environmental protection” section.
THE COMPANY SETS TARGETS FOR ENSURING LEGALLY
COMPLIANT AIR QUALITY IN ITS REGIONS OF OPERATION
GRI 3-3
THE COMPANY’S ENTERPRISES ARE MAKING PROGRESS WITH EFFORTS TO
ACHIEVE THE TARGETS TO MINIMISE NEGATIVE IMPACT ON WATER RESOURCES
GRI 3-3
GOALS
STATUS
PROGRESS made in 2023
GOALS
STATUS
PROGRESS made in 2023
By 2027:
z On track
z Reduce above-limit air emissions by
100%.
By 2035:
z Provide a significant reduction
in emissions of pollutants per tonne
of aluminium, including total fluorides
by 25%.
z On track
z Modernisation of aluminium plants,
installation of new gas treatment
facilities, use of air pollution
monitoring systems continue.
z Push the share of recirculating water
supply in the production of alumina,
aluminium, and finished products
to 100% by 2027
z On track
z Eliminate the discharge of untreated
wastewater generated by the Power
segment by 2030
z On track
z Retrofit ash collectors at Novo-Irkutsk
z On track
z Installation operations
CHP, Ust-Ilimsk CHP, and CHP-6
for the electrostatic precipitators
of boiler units Nos. 3 and 5 at CHP-6
are complete, as is the development
of design documentation and delivery
of core equipment for boiler unit No. 7
at CHP-6
Impacts resulting in fines exceeding 1 USD mn are regarded as significant.
1
2 Some subtotals may not add up to totals due to rounding. Calculated based on the 2023 average RUB/USD exchange rate of RUB 85.25 per dollar.
112
z Streamline technological systems
to minimise non-production water
losses at the Power segment by 2030
z On track
z The share of recirculating water
in the total amount of water used
for production was 91.9% in 2023
z Projects related to the modernisation
and construction of new treatment
facilities for HPP generation, coal
mining, and municipal wastewater
treatment sites are at various stages
of implementation. Ongoing efforts
are also directed towards mitigating
the risk of untreated wastewater
discharges from heat generation
facilities.
z In 2024, the Company plans
to conduct an inventory of other
facilities and determine waste
treatment plans
z Analysis is underway to explore
avenues for optimising fresh water
usage and minimising discharges
113
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Climate and environment
GRI 303-3, 303-4, 303-5
SASB EM-MM-140a.1
IF-EU-140a.1
The water usage procedures at En+ Group encompass water
withdrawal, consumption, and discharge processes.
Water withdrawal 1
Water consumption
Water discharge2
1,035 million m3
710.5 million m3
587.5 million m3
Sources
Sea water
2.1%
Third-party
organisations
20.8%
Surface water
bodies
70.9%
Other
water
1.4%
Withdrawn water
consumption
Water outflows
Ground
water
0%
Surface water
bodies
91.2%
Public utilities
5%
Water used in recirculating
water systems
Ground water
4.8%
Sea water
3.8%
Water-related intensity metrics
Metric
Metals segment ,
mn m3/kt
Power segment,
mn m3/TWh
Total water withdrawal
Total water discharge
2021
0.047
0.013
2022
2023
0.045
0.042
0.012
0.012
2021
5.88
3.60
2022
7.05
4.37
2023
7.45
4.66
GRI 303-3
SASB EM-MM-140a.1
IF-EU-140a.1
GRI 303-5
SASB EM-MM-140a.1
IF-EU-140a.1
En+ Group withdraws water from surface, underground,
and sea water bodies; third-party organisations also supply
water to the Company. In 2023, water was withdrawn from
the surface. In the reporting period, Company enterprises
withdrew 1,035.3 of water, which is 4% more than in 2022.
Water withdrawal increased due to an increase in CHP
generation, due to an increase in energy consumption in the
Irkutsk region by 4%. The Power segment, due to the specifics
of its operating processes, accounts for the majority of water
withdrawal (84.2%). Fresh water withdrawal amounted to
1,006.3 million m3, which is 4.4% more than in 2022.
The share of water withdrawal in the regions with water stress
was 1% for the Metals segment. The metrics remained flat on
the previous year.
During the reporting period, the Company’s facilities
consumed 2 710.5 million m3 of water, up by 6% from the
previous year. The majority of this water (87%) was consumed
by the Power segment. 77% was reused, reusable, or recycled
water.
GRI 303-4
In the reporting period, 587.5 million m3 of water was
discharged, up by 5% from the previous year. The greatest
amount of water was discharged by the Power segment (93%).
The fresh water discharge rate was up by 5% year-on-year to
564.9 million m3 in 2023. 97% of fresh water was discharged
by the Power segment.
GRI 303-3
SASB EM-MM-140a.1
IF-EU-140a.1
Total water withdrawal, million m3
Fresh water. Metals segment
Sea water. Metals segment
Fresh water. Power segment
Other water. Power segment
GRI 303-5
SASB EM-MM-140a.1
IF-EU-140a.1
Total consumption of water 3, million m3
Amount of water consumed in regions with water stress.
Metals segment
Amount of water consumed in other regions.
Metals segment
Amount of water consumed in other regions.
Power segment
Amount of water consumed in regions with water stress.
Power segment
GRI 303-4
Total water discharge 4, million m3
Fresh water. Metals segment
Sea water. Metals segment
Fresh water. Power segment
140.9 22.6
865.4
6.5
149.9
22.8
813.3
6.9
155.4
23.0
720.2
6.8
2023
2022
2021
1 035.3
992.8
905.4
1.7
89.8 0
2023
1.5
97.4
2.0
2022
619.0
565.4
1.0
106.5
1.9
478.4
2021
19.0 22.6
545.9
23.0
22.8
509.7
25.9
22.7
446.3
2023
2022
2021
710.5
665.3
585.9
587.5
557.0
494.9
En+ Group data for 2023.
1
2 Water used in operating processes.
114
Industrial water.
3
4 Data for the Metals segment for 2021 were recalculated and include only industrial water.
115
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Climate and environment
GRI 3-3
EN+ GROUP CONSISTENTLY MEETS ITS WASTE MANAGEMENT TARGETS
GOALS
STATUS
PROGRESS made in 2023
z Ensure a progressive reduction
z On track
of non-recyclable and non-reusable
waste generation intensity by
at least 10% per tonne of metal, and
safe disposal of 100% of such waste
by 2030 in the Metals segment
z Put back to economic use or utilise
at least 15% of alumina production
waste and at least 95% of aluminium
and silicon production waste by
2035
z On track
z Implement large-scale projects
z On track
related to the use of ash and slag
waste under BEC LLC’s plan
z To ensure the safety of waste
disposal, a comprehensive inspection
of hydraulic structures, sludge
collectors and ash dumps was
conducted
z The Metals segment reused 1,516 kt
of red and nepheline slime and
transferred another 344 kt to external
consumers. Advancements are being
made in developing technology
for producing scandium oxide
from red slime
z The Power segment managed to reuse
63% of ash and slag waste
GRI 306-3
SASB EM-MM-150a.4, EM-MM-150a.5, EM-MM-150a.7
GRI 306-4
SASB EM-MM-150a.8
In 2023, En+ Group facilities generated a total of 225 mt of waste,
which is 12.5% more than in the previous year. This was due to
increase in CHP generation in Power segment. The vast majority of
said waste was non-hazardous waste.
In 2023, En+ Group utilised 1 152.7 mt of waste (68% of the total
amount of waste), which is more than in the previous year. The
majority of such waste was utilised by the Power segment (96%).
– 5
%
decrease in the amount of waste
from the Metals segment
compared to 2022
68
%
total share of all waste
recycled by En+
GRI 306-3
Total volume of waste broken down by hazardous and non-hazardous waste, mt
Hazardous waste. Metals segment
Non-hazardous waste. Metals segment
Hazardous waste. Power segment
Non-hazardous waste. Power segment
GRI 306-4, 306-5
SASB EM-MM-150a.8
0.8
59.7
0.002
164.6
2023
2022
2021
0.8
62.8
0.012
137.1
0.7
83.5
0.003
131.1
225.0
199.9
215.3
Total volume of reused, reusable, and recycled waste broken down by hazardous and non-hazardous waste, mt
Hazardous waste. Metals segment
Non-hazardous waste. Metals segmentт
Hazardous waste Power segment
Non-hazardous waste. Power segment
0.7 3.6 0.002
0.8 2.6 0.011
0.7 2.4 0.02
118.6
148.4
122.9
152.7
126.3
121.7
2023
2022
2021
GRI 306-5
Total volume of disposed waste broken down by hazardous and non-hazardous waste, mt
Hazardous waste. Metals segment
Non-hazardous waste. Metals segment
Hazardous waste. Power segment
Non-hazardous waste. Power segment
Waste intensity metrics
Metric
0.024
56.4
0.001
18.5
0.024
59.1
0.011 15.4
0.036
81.2
0.002
13.5
2023
2022
2021
74.8
74.5
94.8
Metals segment,
kt/kt
Power segment,
kt/TWh
Total waste generation intensity
2021
0.022
2022
0.016
2023
0.016
2021
1.06
2022
1.18
2023
1.17
GRI MM3
SASB IF-EU-150a.1
In the reporting period, En+ Group generated 12.1 mt of red
and nepheline slimes (1.1% was recycled) as well as 148.6 of ash
and slag, which fall under the non-hazardous waste category.
63% of all ash and slag waste generated by En+ Group facilities
was recycled.
1 According to the requirements of Russian legislation, waste utilisation involves the recycling and reuse of waste products
116
117
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Climate and environment
GRI 304-3
GRI MM1
As of the beginning of the reporting period, the area of
disturbed but yet not reclaimed land at the Company amounted
to 23,223 ha; as of the end of the period it was 23,390 ha.
In 2023, 390 ha of land was disturbed. The Company managed
to rehabilitate 350 ha, which is 273 ha more than in the
previous year.
Total area of land disturbed and reclaimed, hectares
METALS SEGMENT
Total area of disturbed land
Total area of reclaimed land
POWER SEGMENT
Total area of disturbed land
Total area of reclaimed land
245
107
2021
77
45
2022
290
164
214
60
227
226
2023
2021
2022
60
2023
GRI 304-3
291
hectares
of forest were restored in 2023, as a result of
reforestation efforts
For more details on the Group’s land rehabilitation
efforts, see the Additional ESG Data section
on page 348.
For more details on quantitative environmental
protection metrics, see the Additional ESG Data section
on page 324.
PLANS FOR 2024
AND BEYOND
118
Introduce and deploy an
automated data collection
system for environmental
protection
Complete the water recycling
system deployment at
RUSAL Armenal
Complete a scientific study
regarding the possible
impact of air holes in the ice
on air quality in Krasnoyarsk
and publish key findings
1
2
3
2024
119
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Climate and environment
Biodiversity conservation
Governance
GRI 3-3, 304-1, 304-2
SASB EM-MM-160a.1
En+ Group does not operate in protected areas or areas of high
biodiversity value.
Baikal Plastic Free Alliance
One of En+ Group’s standout initiatives
is the establishment of the in 2022. The
Alliance comprises over 25 companies,
including educational institutions,
government bodies, and non-profits.
The goal of this Alliance is to change the attitude of society
towards the problem of pollution of Lake Baikal. The Alliance
advocates for the immediate development of a range of
measures to curb microplastic pollution in the lake. Its members
support legislation banning disposable plastic utensils and bags
in the Baikal natural territory. In addition, the Alliance assists
the regional government in developing infrastructure for the
collection, sorting and recycling of plastic waste. An equally
urgent task is to increase the environmental literacy of the
population. The Alliance organises events, including educational
programmes, to engage both the business community and the
public, considering it as one of its core pillars.
The Company has a clear division of responsibilities for
managing biodiversity conservation and ecosystem services:
In its biodiversity conservation efforts, the Company is guided
by the following internal and external documents:
SELECTED EVENTS FOR THE PERIOD INCLUDE:
Board of Directors
z Oversees issues related to the implementation
of the Company’s Biodiversity Policy
z Oversees progress against biodiversity-related targets
HSE Committee
z Manages biodiversity conservation-related risks
z Contributes to the development of policies
z Makes recommendations to the Board of Directors
z Oversees the Company’s compliance with legal
requirements and standards governing biodiversity
conservation
z Evaluates the Company biodiversity performance
Sustainability Projects Department
z Develops a strategy and evaluates compliance with
the Biodiversity Policy
z Initiates biodiversity conservation programmes,
oversees and monitors their implementation
For more details on the roles of the Sustainability Projects
Department, see the Additional ESG Data section
on page 332.
Russian Federal
Law No. 16-FZ On
the Ratification of
the Convention on
Biological Diversity,
dated 17 February 1995
International
Finance Corporation
Performance
Standard 6: Biodiversity
Conservation
and Sustainable
Management of Living
Natural Resources
Hydropower
Sustainability Standard
Environmental
Policy
Biodiversity
Policy
Corporate Biodiversity
Conservation
Programme
SASB EM-MM-160a.1
En+ Group’s Biodiversity Policy incorporates the Company’s
fundamental operating principles, namely a commitment to
apply a modern and effective approach to the conservation of
biological diversity, to promote biodiversity conservation across
its footprint, and to foster awareness among partners regarding
this crucial area.
GRI 2-28
En+ Group is a member of the Working Group on
Entrepreneurship and Biodiversity Conservation Issues under
the Ministry of Natural Resources and Environment of the
Russian Federation and contributes to the ASI Biodiversity and
Ecosystem Services Working Group in collaboration with the
International Union for Conservation of Nature and Natural
Resources (IUCN), Fauna & Flora International (FFI), and the
Chimbo Foundation.
The Ballet on Baikal. Buryatia performance
The event was arranged in partnership with the Buryat
State Academic Opera and Ballet Theatre. The dancers
performed excerpts from famous masterpieces on
the shores of Lake Baikal. The event was aimed at
spotlighting the conservation issues around the lake.
A scientific and educational conference at
the Chemistry of the Future science school
It was organised in partnership with Irkutsk National
Research Technical University (IRNTU). The target
audience of the project included students,
postgraduate students, and young research chemists.
The conference discussed plastic recycling, creating
biodegradable plastic materials, and promoting
alternative packaging solutions.
The Modern Trends and Challenges in the
Tourism Sector of the Baikal Area
Eco-lessons at children’s camps
and schools
Participants discussed green initiatives implemented
in the tourism industry around the world, pointing
out that unorganised tourism is a critical contributor
to pollution in the area. They emphasised the need to
encourage conscious behaviour among tourists. The
agenda also included the issue of banning single-use
plastic tableware and bags in the environmental areas
of the Baikal natural territory. The conference became
a platform for developing and discussing practical
solutions for preserving the natural ecosystems, as
well as attracting tourists.
The Alliance planned and delivered eco-lessons
at 21 children’s camps in the Irkutsk, Angarsk,
and Olkhonsky Districts, as well as in educational
institutions of the Irkutsk region. At the events,
children learned about the fauna of Lake Baikal and the
problem of environmental pollution of the reservoir,
in particular, plastic.
Meetings and round tables with locals
from Baikal protected areas
Meetings and round tables were held with the main
topic being the build-up of plastic in various parts
of the Baikal ecosystem. Participants delivered
presentations highlighting the shortcomings of
legislative regulation regarding environmental
monitoring of the lake’s nearby areas.
120
121
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT120120
Climate and environment
Strategy
GRI 3-3, MM2
One of the highlights of the reporting period was the initiation
of a Corporate Biodiversity Conservation Programme for
Irkutsk, Bratsk, and Ust-Ilimsk HPPs by the Power segment.
During the project’s development phase, En+ Group engaged
with experts and stakeholders to discuss biodiversity
conservation activities, their scopes, and associated timelines.
A holistic, three-year Biodiversity Conservation Action Plan for
the Angara HPPs was also devised. This plan contains in-depth
information concerning scheduled tasks, resource allocations,
and specific indicator species requiring observation and
support. These species encompass a diverse array of animals
and plants, including ospreys, grey ducks, harlequin ducks,
steppes rat snake, whitefish, tugun, and others.
En+ Group intends to run field studies within the areas of
potential impact of HPPs when the programme enters its
active phase. Given their vast geographical scope, these
studies are slated to take place between 2024 and 2026.
In 2022, the Company developed instructions for handling
wild animals. All employees are familiar with the instructions,
which are posted on information stands on the territory of En+
enterprises. Also in 2022, the Company installed 1.5 thousand
bird protection devices on power line supports in the ecological
zones of the Baikal natural territory.
Biodiversity impact of Irkutsk, Bratsk, and Ust-Ilimsk HPPs
Map of potential impact areas
Direct potential impact area
Indirect potential impact area
Area of potential indirect impact on Lake Baikal
HPP
Ust-Ilimsk HPP
Bratsk HPP
Irkutsk HPP
Monitoring in Baikal protected areas
Scientific monitoring of Lake Baikal
In 2023, a fifth expedition took place to monitor
the condition of the coastal waters of Lake Baikal
and its drainage basin. As in previous years, the
expedition was conducted with backing from the
Severtsov Institute of Ecology and Evolution, Russian
Academy of Sciences, and was staffed by scientists
from Lomonosov Moscow State University and the
Moscow Institute of Physics and Technology (MIPT).
The experts placed special attention on waterborne
microplastics. According to the researchers’ findings,
the level of microplastics in the waters of Baikal is
comparable to levels seen in European and American
lakes; however, pollutants started to enter into Lake
Baikal later, which indicates a rapid pace of pollution.
Also within the framework of the research, the
problems of endemic organisms such as sponges and
amphipoda were studied.
Biodiversity risks are assessed
as part of the Strategic
Plan for Environmental Risk
Management of the Power
segment.
GRI 304-1, 304-2
In 2023, in collaboration with the Strana
Zapovednaya (Protected Land) Foundation, the
Company initiated a project aimed at monitoring
the ecological status of nature reserves and national
parks bordering the lake. As part of this endeavour,
a single holistic programme was crafted to monitor
shoreline ecosystems in the protected areas of Lake
Baikal. This initiative enabled a uniform approach
to evaluating the state of ecosystems, broke down
the silos between protected areas, and helped
orchestrate strategies to mitigate human impact on
the areas while safeguarding environmental media.
As part of monitoring efforts, the following measures
are proposed:
z biodiversity assessment of areas
z monitoring the impact of water level fluctuations
on shoreline ecosystems
z assessment of pollutant concentrations in pine
needles and snow
z establishment of the permissible levels
of human-tourism impact on ecosystems.
These measures will be applied to the following
protected areas of federal significance: the Federal
State Budgetary Institution Zapovednoye Pribaikalye
(Irkutsk Region), the Federal State Budgetary
Institution Zapovednoye Podlemorye (Republic of
Buryatia), and the Federal State Budgetary Institution
Baikal State Nature Biosphere Reserve (Republic of
Buryatia).
Risk management
GRI 3-3
En+ Group prioritises biodiversity conservation and adheres to
the precautionary principle. The Company assesses potential
risks that could lead to material impacts on the flora and
fauna within the local areas. Upon identifying such risks, steps
are taken to address them in accordance with the mitigation
hierarchy:
Offset
Rehabilitation/restoration
Minimisation
Avoidance
122
123
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Climate and environment
GRI 304-4
The areas in which the Company operates have protected and
endangered species, among which the following were selected
as indicator species:
To minimise biodiversity risk, the Company works hand-in-
hand with key stakeholders, including government officials,
research institutions, and non-profit organisations.
POWER SEGMENT
z Lenok
z Taimen
z Tugun
z Steppes rat snake
z Harlequin duck
z Osprey
z Horned pondweed
(Zannichellia palustris
ssp. repens)
z Fringed water lily
(Nymphoides peltata)
z Dwarf yellow water lily
(Nuphar pumila)
z Whitefish
z Gray duck
z Quadrangular water lily
The company also delivered environmental education for the
public, developed biodiversity conservation programmes,
conducted environmental monitoring in the area of HPP's
impact.
Metrics and targets
EN+ GROUP IS COMMITTED TO AVOIDING AND MINIMISING THE IMPACT OF ITS ACTIVITIES ON BIODIVERSITY
GOALS
STATUS
PROGRESS made in 2023
z By 2024, develop biodiversity
z On track
conservation programmes and
action plans for pilot facilities
(three operating facilities in each
segment)
z By 2030, develop biodiversity
conservation programmes and
action plans for En+ Group’s
facilities, with identified biodiversity
risks
z On track
124
z The Metals segment is 30%
complete (one of three stages
completed for each facility).
The Power segment has developed
a biodiversity conservation
programme and action plan
z The Metals segment is assessing
potential biodiversity impacts and
reviewing ecosystem services for its
ASI-certified facilities. Currently, this
effort is nearing completion at three
of the 18 certified enterprises.
z In the Power segment, the Company
has kicked off work to preserve
aquatic biological resources: an
initiative supporting public fish
conservation efforts in the Bratsk
Reservoir is on track. The installation
of artificial spawning grounds and
measures to protect the patterned
snake are planned for 2024.
More than 700 thousand juvenile valuable fish species have
been released into the Bratsk Reservoir. Artificial spawning
grounds are also planned to be established in the reservoir,
and their impact will be monitored. In 2024, the Company will
continue its efforts in these areas.
In 2023, fish protection structures were installed at CHP-10 to
prevent juvenile fish from entering water intakes. By doing so,
the Company will minimise impact on populations of 12 fish
species. The cost of purchasing and installing such structures
and devices amounted to RUB 30 million (USD 351,9 thousand).
They have an expected service life of more than 50 years.
It was not only aquatic biological resources that were covered
by the biodiversity protection projects run by the segment.
In 2023, a protective fence was installed at the Tulunugol
open pit mine to prevent wild animals from entering the
site. Animals are repelled by electrical impulses that are not
dangerous but unpleasant to them. RUB 3.4 million was
spent on the construction of the fence (USD 39,8 thousand).
Support for community
fishery inspectors
The first voluntary Biodiversity
Conservation Report
In 2023, as part of a project to protect aquatic
biological resources in the area affected by Bratsk
HPP, fishery inspectors from the Federal Agency
for Fishery (Rosrybolovstvo) were supported by
community inspectors and the Strana Zapovednaya
(Protected Land) Foundation to identify 79 fishing
violations and seize more than 2,830 m of illegally
used fishing nets. The Company actively supports
community inspectors, who assist state fishery
inspectors: provides the necessary equipment and
supplies. In 2024, it is planned to extend this practice
to the Irkutsk and Krasnoyarsk reservoirs.
Energized for action
PLANS FOR 2024 AND BEYOND
In 2023, the Metals segment released its first
voluntary Biodiversity Conservation Report
encompassing the period from 2015 to 2022.
The report extensively outlines the projects
implemented by the Company around the
monitoring and restoration of biological resources.
It also details our land reclamation efforts
and collaborations with research institutions.
Furthermore, the report discloses information on a
pilot assessment of ecosystem services conducted at
segment enterprises. The report is aligned with both
international standards and national regulations,
which the segment voluntarily upholds.
Approve the previously
developed internal
documents of the Metals
segment
Implement biodiversity conservation projects in the Irkutsk Region,
including a programme for mounting bird protection devices on electricity
pylons, the rollout of successful public fish conservation practices, the
establishment of artificial spawning grounds, etc.
1
2
Conduct field verification of
the biodiversity conservation
programme for the Angara
HPPs (scientific monitoring)
Continue environmental
monitoring of Lake Baikal
and its drainage basin with
tributaries
3
4
2024
125
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT People
Occupational health and safety
INTERNAL REGULATIONS
z Health, Occupational, Industrial,
and Fire Safety Policy
z Regulations on the Health, Safety,
and Environment Committee
MATERIAL TOPICS
z Occupational health and safety
1.05
total recordable work-related injury rate (TRIR)2
compared with 1.33 in 2022
Governance
GRI 3-3, 403-1, 403-2, 403-4, 403-8
The Company prizes its people as its core asset and places
paramount importance on the safety of its workforce.
En+ Group is dedicated to achieving zero fatalities and injuries
among its employees.
In order to meet this goal, the Group focuses on boosting
staff competencies in occupational health and safety
(OHS), fostering a robust safety culture, and implementing
preventative measures to safeguard against emergencies while
minimising the impact of occupational hazards.
En+ Group has established a comprehensive OHS management
system that encompasses all enterprises, employees,
and contractors. The OHS system is aligned with national
regulations, international standards, and best practices.
Regular assessments are conducted to ensure corporate
documents align with current OHS requirements.
En+ Group’s core occupational health and safety management
document is the Health, Occupational, Industrial, and Fire
Safety Policy. It outlines the Company’s baseline OHS principles
and responsibilities, including the right of employees to decline
work that poses a threat to their life and health. Additionally,
it stipulates the CEO’s obligation to role model a personal
commitment to the Policy’s objectives and principles, and to
actively support and promote its implementation.
In 2022, all units of the Power segment were certified to the
international standard ISO 45001:2018. In the Metals segment,
13 enterprises have been successfully certified, 3 of which
received a certificate in 2023.
0.76
Lost time injury frequency rate (LTIFR)1
compared with 0.81 in 2022
5.3
RUB bn
(64 USD mn)—OHS costs
at the Group
7
%
decrease in lost-time injuries
1
2
LTIFR is calculated per 1 million person-hours worked and includes cases
of fatal, severe, and minor injuries causing temporary incapacity for work,
recorded by the Company for the specified period.
TRIR is calculated per 1 million person-hours worked and includes work-
related fatal severe and minor injuires, injuries causing temporary and
permanent incapacity for work, injuries requiring professional medical
care, and/or transfer to another job.
126
127
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
People
OHS Management structure GRI 2-13
En+
RUSAL
BOARD OF DIRECTORS,
EN+
BOARD OF DIRECTORS,
METALS SEGMENT, RUSAL
HEALTH, SAFETY,
AND ENVIRONMENT COMMITTEE
HEALTH, SAFETY,
AND ENVIRONMENTAL COMMITTEE
The Company is pushing ahead with its digital transformation
of occupational health processes using the 1C platform.
This initiative enables continuous monitoring of OHS progress
and accelerates decision making. Within the Power segment,
additional management reports were developed for each
module of the system in 2023, significantly enhancing
previously established modules such as Special Assessment of
Working Conditions (SAWC), Health Protection, Training and
Knowledge Testing, Audits and Inspections, Personal Protective
Equipment (PPE), and Cleaners and/or Disinfectants (C&D).
In the Metals segment, the Occupational Safety automated
information system was developed by adding modules such
as Contractor Management; Risk Identification, Assessment,
and Management; Occupational Health Operational Control;
and Dashboards, while other auxiliary platforms were also
successfully integrated.
For more details on digital transformation
at En+ Group, see the Digitisation and
Responsible business practices section
on page 232.
CEO, EN+
HEALTH AND SAFETY
DIRECTORATE
HEALTH AND SAFETY
DIRECTORATE
CEO, RUSAL
Contractor management
Appointments/instructions
Review of resolutions, preparation of
recommendations / implementation of resolutions
The OHS governance structure remained unchanged in 2023.
The Health, Safety, and Environment Committee holds its
meetings at least once a quarter to consider strategic issues
related to the operation of the OHS management system and
make recommendations to the Board of Directors concerning
the approval of OHS goals, policies, and strategies.
For more details on EN+ Group’s Health,
Safety, and Environment Committee,
see the Corporate governance section
on page 191.
The coordination of the OHS management system is overseen
by the OHS Department, which holds a range of primary
responsibilities such as:
z managing local OHS teams
z conducting internal audits of facilities to evaluate
the performance of the OHS management system and
foster interaction with employees
z providing trainings to employees and conducting
behavioural safety audits (BSAs).
In the reporting year, the OHS Department undertook
12 on-site inspections, and routinely conducted one-day
on-site audit visits to enterprises located in a close proximity.
Conducting behavioural safety audits during these on-site
inspections assists the OHS Department in establishing direct
communication channels with employees.
Group En+ spoke about its occupational
health best practices
In April 2023, Irkutsk HPP hosted an on-site meeting
of the HSE Committee of the Chamber of Commerce
and Industry of Eastern Siberia. The meeting brought
together large industrial enterprises and small and
medium-size businesses. Participants also took a
guided tour around the plant and discussed pressing
occupational health-related matters.
En+ Group specialists were excited to share their
experiences and accomplishments in developing
the OHS management system and enhancing safety
culture. They shared their experience in arranging
five-minute safety briefings with colleagues,
highlighting the significance of the Golden and Basic
safety rules and providing real-world examples where
employees have the right to refuse work that poses
an injury risk or jeopardises their life.
Attendees acknowledged that such on-site
gatherings play a vital role in enabling entrepreneurs
to swiftly and effectively adopt occupational health
best practices.
Regular audits and inspections are conducted on contractors
to ensure compliance with OHS requirements. Most common
violations, including failure to use PPE, are identified during
the execution of tasks, such as working at height, excavation
activities, with tools and equipment.
GRI 403-1, 403-2, 403-5
En+ Group recognises the critical importance of ensuring
contractor safety in parallel with the protection of its own
employees.
Contractual agreements and the Agreement for Occupational
Health, Industrial, and Fire Safety govern the OHS obligations
and responsibilities of contractors. Prior to commencing work
and during the work process, En+ Group evaluates contractors’
compliance with regulatory and corporate safety standards to
ascertain their suitability for the job.
In 2023, En+ Group took significant efforts to enhance
the contractor management process. The Group revised
procedures for approving work execution plans, schedules,
and process sheets. Reporting procedures and the assignment
of approver roles were refined, while a consolidated list of
ongoing projects was drafted.
Each contractor employee takes mandatory induction briefings
conducted by the OHS team, focusing on corporate safety
requirements, proper PPE usage, and potential risks at the
Company’s production sites.
Leveraging a risk-based approach commensurate with the
nature of the contractor’s work, En+ Group runs additional
face-to-face meetings and conversations. The Metals segment
introduced a segment-wide practice of collective responsibility,
ensuring that if one contractor employee breaches OHS
regulations, the entire team faces suspension, disciplinary
discussions, briefings, and retraining.
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STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT129
People
Strategy
In 2023, the Power segment commissioned an independent
contractor for an external safety culture audit, which informed
the development of Strategic Action Plans for 2024–2026.
The Metals segment continues to implement the 2023 OHS
Strategy, targeting a 50% reduction in work-related injury
rates and serious occupational accidents, with the ultimate goal
of zero fatal injuries. Enterprises within the segment actively
promote safety culture and health initiatives, delivering relevant
health and safety training to support these objectives.
Safety culture
GRI 403-2, 403-5
En+ Group continued to use its supervisory practices to manage
employees’ workplace behaviour in line with its single
Behavioural Safety Audit (BSA) procedure, with the ultimate
goal of fostering safe habits and reducing the human factor to
reduce work-related injury rates. In 2023, the Group introduced
its Train the Trainer programme, which is focused on spreading
awareness about behavioural safety audits and saw over
600 employees successfully completing training.
In the same year, the Company developed a comprehensive
training course on BSA issues, and a BSA registration
information system was piloted at the Aluminium Division of the
Metals segment.
Safe behaviour
Within the Metals segment, enterprises are
running a project to foster safe behavioural skills
among employees. This initiative commits focus to
developing both soft skills (such as memory, critical
thinking, communication, openness, and friendliness)
and hard skills (including education, knowledge of
corporate requirements, operational procedures, and
step-by-step operation guidelines and sheets).
En+ Group’s specialists analyse individual employee
traits and evaluate safety processes across all levels
of the organisation, from top management to
employees. Employee interviews and surveys are
leveraged to tailor individual development plans.
Health protection
GRI 2-25, 403-3, 403-6, 403-10
En+ Group applies proactive medicinal approaches, including
routine healthcare and preventive medical support to reduce
occupational risk impacts:
z Additional medical insurance
z Free medical care at corporate healthcare centres and
medical aid posts located at industrial sites
z Reimbursement of medical procedures and surgical
interventions that cannot be provided at the Company’s
healthcare centres
z Pre-trip and pre-shift medical examinations
z Screening and regular medical examinations
z Health resort treatment
z Vaccination against influenza and tick-borne encephalitis
z Drug and alcohol testing
z Psychological support.
Medical staff take regular advanced training to enhance their
skills and expertise in delivering quality medical services.
Employee health data is securely maintained and stored at
medical aid posts following prescribed data security standards.
The Company ensures secure communication channels are
used to transfer personal health information anonymously to
other healthcare services. En+ Group is expanding its healthcare
services by opening new healthcare centres and establishing
new departments at existing healthcare centres.
For example, in 2023, a new healthcare centre with a day-care
unit was opened in Krasnoyarsk, and another day-care unit in
Kamensk-Uralsky; outpatient clinics were renovated in Achinsk,
Sayanogorsk, Krasnoturinsk, and Shelekhov; and equipment
was purchased and physiotherapy service offerings were
expanded across multiple departments.
This expansion aims to provide rapid medical assistance to
a greater number of employees, aiding in the early detection
of occupational diseases, initiating prompt treatment, and
preventing health deterioration.
En+ Group consistently monitors the epidemiological landscape
in its operating regions, enforcing mask mandates and reducing
business travel as necessary to curb the spread of seasonal
infectious diseases.
In its mission to promote healthy lifestyle among employees,
the Company organises various sporting events.
For more details on En+ Group’s sporting events,
see the Contribution to Local Communities section
on page 162.
Lockout and tagout at power facilities
Preventing cardiovascular diseases
Healthy eating
The Group is progressively implementing lockout and
tagout systems at the power facilities of its Alumina
Division. In 2023, these systems were introduced
at Achinsk Alumina Refinery and Boksitogorsk
Alumina Refinery to enhance employee safety
during equipment maintenance and repairs at
industrial sites.
The Company has initiated cardiovascular disease
(CVD) prevention programmes within its healthcare
units. By identifying CVD risk groups based on
medical examinations and test results, employees
at risk can receive additional tailored health
studies and treatment and preventive healthcare
recommendations and ongoing monitoring to track
their health status effectively.
En+ Group has also launched a healthy eating
project at its canteens to match the physical and
mental stress employees face at the workplace.
The project encompasses four stages, from analysing
the physical condition of employees to monitoring
health indicators and dynamically evaluating the
effectiveness of implemented measures. A large-
scale study was conducted to identify workers with
gastrointestinal ailments, excess weight, unhealthy
habits, and other health issues, leading to the
development of multiple job-specific menus by the
Company’s experts that account for the impact of
harmful workplace factors, inter alia.
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People
Emergency preparedness
GRI 403-2, 403-7
GRI 413-1
Given the fact we operate hazardous production facilities and
are situated in locations prone to natural disasters such as
earthquakes, floods, and wildfires, En+ Group recognises the
heightened risk of natural and man-made emergencies.
To ensure rapid and efficient emergency response,
the Company undertakes a series of proactive measures:
z Developing and coordinating Emergency Response Plans
with emergency rescue teams for hazardous production
facilities, outlining effective emergency risks and response
strategies
z Collaborating with local authorities to establish Civil Defence
Emergency Action Plans, emergency prevention and
response strategies, and fire safety plans, including for water
bodies
z Providing theoretical and practical training for employees,
governance bodies, emergency rescue teams, and workforce
to implement civil defence measures
z Maintaining operational local warning systems
z Establishing financial and material reserves to tackle
emergencies.
For facilities at risk of petroleum product spills, En+ Group
formulates and approves Spill Prevention, Control, and
Countermeasure (SPCC) Plans following established protocols.
All employees are required to familiarise themselves with
both the Emergency Response Plans and SPCC to ensure
preparedness.
Emergency management theory is taught to employees
through civil defence and emergency management instructions
and training sessions. Employees refine their emergency
management and first-aid skills through practical scenarios
during emergency and fire drills. Fire-rescue and emergency
response teams actively participate in these training sessions.
Large-scale exercises and drills involve state supervisory bodies
such as the Russian Ministry of Energy, EMERCOM, and the
Federal Environmental, Industrial, and Nuclear Supervision
Service of Russia (Rostechnadzor).
To promote collaboration and information sharing in
addressing challenges related to forecasting, preventing, and
responding to emergencies, the Group has signed emergency-
related information exchange agreements with the Ministry
of Emergency Situations of Russia and city administrations
spanning all En+ Group enterprises.
En+ Group has established an emergency-related data
exchange system to facilitate seamless data sharing, particularly
during the emergency forecasting phase. A dedicated hotline
serves as a channel for employees and external parties to report
threats and violations linked to En+ Group’s operations as well
as current or impending emergencies. To alert residents in
our operating regions, the Company leverages local warning
systems integrated with municipal alert mechanisms.
Commensurate with its commitment to averting equipment-
related accidents and incidents, En+ Group prioritises timely
maintenance, industrial safety reviews, upgrades, and overhauls
encompassing equipment, structures, and facilities. The Group’s
local documents set industrial safety standards for hazardous
production facilities and establish protocols for safety reviews
and subsequent corrective actions based on review outcomes.
To mitigate machinery risks,
the following measures are
implemented
An emergency stock of spare parts is
maintained
Initiatives to transition the procurement
of equipment and components to reliable
Russian manufacturers and companies
from friendly countries are implemented
Emphasis is being placed on adopting
modern approaches and management
techniques within the Company
Cutting-edge technologies are integrated
into operating, maintenance, and repair
processes
OHS training
GRI 403-5
En+ Group is committed to fostering a robust safety
culture and conducts training and competency
enhancement programmes for employees, emphasising
compliance with Basic and Golden Safety Rules for both
employees and contractors.
Mandatory training covers a wide spectrum of topics,
including occupational health and safety, safe equipment
operation at hazardous production facilities, fire safety,
civil defence, emergency prevention and response, and
industrial safety standard assessments. The cadence
and content of training sessions for specific workforce
categories are driven by legal requirements, with HR
specialists monitoring schedule compliance to ensure
timely provision of training. Trainees undergo knowledge
assessments and provide feedback through post-training
satisfaction surveys, enabling the Company to evaluate
training effectiveness.
Electrical safety training
In 2023, the Company delivered training sessions
for power grid operational staff, with equipment
suppliers enlisted as trainers. These sessions targeted
installation and maintenance staff dealing with
high-voltage bushings, microprocessor terminals,
microprocessor relay protection units, and emergency
control systems.
Train the trainer
In 2023, the Power segment prioritised the training
of internal trainers specifically designated to deliver
OHS programmes to employees through various
corporate initiatives. A total of 330 internal trainers sat
specialised training sessions.
The Company has developed and refined several
programmes and courses, including:
z a corporate course focused on internal incident
investigation
z a training programme tailored to line managers
to enhance safety manager skills
z a Safety Awareness programme dedicated
to fostering a risk-based approach and
understanding individual psychological traits.
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CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT
People
Risk management
GRI 3-3, 403-2, 403-4
En+ Group’s OHS management system emphasises
a risk-based approach, allowing for proactive risk management
strategies. The Company conducts thorough safety risk
analyses, takes proactive steps to mitigate identified risks,
and implements corrective measures based on incident
investigation outcomes.
The evaluation of safety risks forms an integral part of the
corporate risk assessment process.
Besides routine risk assessment practices, employees are
expected to identify and report unsafe conditions and activities
before and during work. There are various communication
channels (including anonymous ones) for employees to report
unsafe or hazardous conditions and practices:
z Telephone and e-mail
z Labour dispute commissions, OHS commissions, and ad-hoc
commissions
z Monthly meetings on OHS issues
z The Signal hotline
z Speak-up boxes
z An incident warning system for managers
Hazardous operations have an increased injury potential.
Each Group enterprise has drafted a list of hazardous
operations. Each operation in this category is accompanied by
risk assessment processes and corresponding risk management
measures by relevant responsible staff.
To mitigate the risks associated with drug or alcohol impairment
in the workplace, the Company carries out drug testing for all
employees.
Furthermore, En+ Group conducts special assessment of
working conditions at least once every five years 1. The most
prevalent harmful workplace factors, as noted in the Power
segment’s assessment, include occupational noise, heightened
dust levels in working areas, and general vibrations. In the
Metals segment, nearly half of job roles are categorised as
having hazardous working conditions, often attributed to the
severity of the tasks involved.
OHS-related risks, process risks, and force majeure risks
(natural disasters, large-scale accidents, epidemics, etc.)
are included in the overall list of sustainability risks at En+
Group. These risks are subject to comprehensive analysis by
the Group’s top management.
For more details on OHS risk mitigation activities,
see the Strategy subsection
on page 130.
Metrics and targets
OHS targets are set by En+ Group on an annual basis.
KEY 2023 GOALS
GOALS
STATUS
PROGRESS made in 2023
z Decrease LTIFR by 10%
z Not achieved
z Zero fatal accidents at the workplace
z Not achieved
z External safety culture audit and
z On track
review of the Strategic Action Plan
for 2024–2026
z LTIFR decreased by 7%
from 0.81 to 0.76
z One fatal accident occurred
at the Power segment and one
at the Metals segment
z An external safety culture audit was
conducted at the Power segment
z A Strategic Action Plan was
developed
z Certification audits of OHS
z On track
z The project is on track
management systems across all
enterprises
z Development of an additional
z On track
company-wide OHS training system
for all employee groups, including
a revision of existing training
programmes and the development
of additional ones
z The Corporate University is on track
to develop and revise existing
training programmes
1
In accordance with the classification provided in the Federal Law On Special Assessment of Working Conditions.
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People
GRI 3-3, GRI 403-1
Assessment of OHS management effectiveness is a continuous
process at En+ Group, involving the review of internal and
external audit results as well as tracking OHS key performance
indicators (KPIs) for managers.
Monitoring procedures follow the Regulations on Ongoing OHS
Status Monitoring, where managers across all levels conduct
monthly assessments of the prevalent OHS situation according
to the prescribed protocol. Subsequent reporting of these
data to the OHS team enables the identification of areas for
improvement in OHS.
GRI 403-2, 403-9
SASB EM-MM-320a.1, IF-EU-320a.1
En+ Group meticulously maintains records of work-related
injuries, accidents, and occupational diseases among both
employees and contractors. Incidents are rigorously investigated
in compliance with local legislation and corporate standards,
following which corrective measures, unscheduled safety
instructions, and training interventions for the workforce are
planned and actioned.
In 2023, two fatal accidents were reported at En+ Group.
There was group accident in Metals segment: one employee lost
his life and the other was injured during a group accident while
performing repairs on an electrolyser. The accident resulted
from a breach of critical safety rules, specifically the use of water
to cool the trunk line. As a preventive measure, the Company
decided to design and deploy a mobile disconnect kit to prevent
staff from descending to the trunk line during electrolyser
shutdown operations.
There was fatal accident in Power segment: a fatal accident
occurred during shutdown work on a boiler unit due to
inadequate work management, deficient malfunction detection
and monitoring procedures, improper delegation of authority,
and failure to follow operational staff communication protocols.
Following this incident, En+ Group conducted a comprehensive
inspection of all drains, revised the operational protocols for
high-pressure steam valves, issued detailed regulations on
operational staff communication procedures, and revised job
descriptions to improve the allocation of responsibilities.
In 2023, the Company recorded 113 workplace accidents
involving employees and 28 workplace accidents involving
contractors. Root cause analysis suggests that accidents at
En+ Group can be related to:
z slips, trips, and falls
z improperly handling hot melts
z improperly maintaining and servicing equipment and tools
z a failure to observe precautions while working at height
z staying or moving in a fenced hazardous area.
GRI 403-9
SASB EM-MM-320a.1, IF-EU-320a.1
Injury rates for En+ Group employees and contractors in 2023
At the Power segment, the most common injuries included extremity injuries, chemical and thermal
skin burns, and head injuries. At the Metals segment, the majority of injuries resulted from slips, trips,
and falls.
Employees
Contractors
2
16
95
Fatal injuries
Severe injuries
Minor injuries
2
10
16
136
GRI 403-9
GRI 403-9
SASB IF-EU-320a.1
Lost Time Injury Frequency (LTIFR)
for Company employees,
per 1 million man-hours worked
Total Reportable Injury Rate (TRIR)
for Company employees,
per 1 million man-hours worked
Power segment
Metals segment
2023
2022
2021
0.9
0.89
0.87
Power segment
Metals segment
0.52
0.67
0.68
0.76
2023
0.81
2022
0.81
2021
1.2
1.15
1.35
0.77
1.66
1.125
In 2023, En+ Group documented 255 cases of occupational
disease. At the Power segment, the prevalent occupational
diseases include hand-arm vibration syndrome, sensorineural
hearing loss, bronchitis, bronchial asthma, polyneuropathy,
and osteoarthritis. The Metals segment reports common
diseases like arthrosis, periarthrosis, chronic fluorine
intoxication, hand-arm vibration syndrome, sensorineural
hearing loss, chronic obstructive pulmonary disease, bronchitis,
and oncological diseases.
Throughout 2023, the Power segment recorded no natural or
man-made emergencies. The Metals segment reported 57 fires,
primarily stemming from violations of electric installation
operation regulations and process non-conformance, including
failure to follow hot work procedures.
For more details on injury metrics and rates,
see the Additional ESG Data section
on page 348.
GRI 403-10
Recorded occupational diseases suffered
by Company employees1
Power segment
Metals segment
142
113
123
114
65
91
2023
2022
2021
1.05
1.33
1.26
255
188
205
PLANS FOR 2024
AND BEYOND
Reduce LTIFR by 10% and
strive for zero fatalities
Spearhead OHS digitisation
and automation projects
1
2
Increase share of enterprises
whose occupational safety
and health management
system complies ISO 45001
standard
3
Develop new OHS training
courses
Improve the Company’s
emergency responses and
fire safety measures
4
5
1
Statistics on occupational diseases include only registered cases suffered by
existing employees. Figures exclude cases of occupational disease that were first
detected within the post-contact period.
2024
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People
28.4
%
of the workforce represented by women
compared with 27.6% in 2022
People
Employees
INTERNAL REGULATIONS
z Diversity and Equal
Opportunities Policy
z Policy on Human Rights
z Corporate Code of Ethics
MATERIAL TOPICS
z Employees management and
engagement
z Human rights
z Social and cultural diversity and
equal opportunities
85
%
of employees covered by collective bargaining
agreements
compared with 86.3% in 2022
90,064
employees
at the end of 2023
Management
GRI 3-3
HR management structure GRI 2-13
En+
RUSAL
BOARD OF DIRECTORS,
EN+
BOARD OF DIRECTORS,
METALS SEGMENT
REMUNERATION
COMMITTEE
NOMINATIONS
COMMITTEE
REMUNERATION
COMMITTEE
• Conducts the first-
• Runs the Board of
• Develops and
stage review of matters
related to establishing
effective and transparent
remuneration practices
• Oversees the
implementation of the
remuneration policy and
incentive programmes
• Supervises disclosures
on remuneration of the
members of the Board of
Directors and the CEO
Directors' self-evaluation
process
• Arranges for an external
performance evaluation
of the Board of Directors
• Determines the
individual responsibilities
of the Management
Board members
regularly reviews the
remuneration policy
• Reviews matters related
to the establishment of
effective and transparent
remuneration practices
CORPORATE
GOVERNANCE
AND NOMINATION
COMMITTEE
• Sets the Company's
priority business areas
• Runs a detailed
formalised procedure
for the self-evaluation
or external performance
evaluation of the Board
of Directors and its
committees
• Plans appointments
CEO
CEO
HR DIRECTORATE OF THE POWER SEGMENT
Coordinates the implementation of the HR policy across the
Company
HR DIRECTORATE OF THE METALS SEGMENT
Carries out strategic HR management in the Metals segment
HR UNITS AT INDIVIDUAL PRODUCTION FACILITIES
HR UNITS AT INDIVIDUAL PRODUCTION FACILITIES
Carry out day-to-day HR management at the enterprise level
Carry out day-to-day HR management at the enterprise level
Appointments/instructions
Review of resolutions, preparation of
recommendations / implementation of resolutions
GRI 2-27
In its relationships with employees, En+ Group strictly adheres
to the prevailing labour laws applicable in the countries where it
operates. In 2023, no significant violations of labour laws or the
Group’s regulations were recorded.
To evaluate its HR management, the Company routinely reviews
progress against KPIs and the results of annual employee
satisfaction and engagement surveys. Performance on all
metrics, including labour productivity gains, minimal employee
turnover, and consistently positive engagement survey results,
demonstrates strong HR management across the Company.
Achieving En+ Group’s strategic goals and objectives is
impossible without human capital, which is why the Company
makes every effort to support and develop its people.
En+ Group’s HR policy is driven by a desire to create equal
conditions and opportunities for all employees.
The Group’s core business principles are geared towards
supporting the Company’s sustainability goals as outlined in
its Diversity and Equal Opportunities Policy. Its oversight lies
with the HSE Committee, which annually reports on workforce
diversity to the Board of Directors.
Our HR management approach is further formalised in the
Policy on Human Rights and the Corporate Code of Ethics,
which apply throughout the organisation, from the boardroom
to the shop floor. Moreover, En+ Group expects similar
compliance from its counterparties.
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Bonuses are paid to employees based on the achievement of
target KPIs. Through UNIVER, the Company’s intranet portal,
employees can check their KPIs and report progress against
them. For better performance evaluation, the Company conducts
monthly preliminary reviews of progress against targets,
with employees preparing quarterly reports detailing their work
progress.
En+ Group uses the 32 parameters of SHL methodology to
assess its employees’ competencies. The metric scores are
grouped into the Talent Management, Task Management,
and Self-Management pillars, reflecting every aspect of job
performance. In the reporting year, employees were also
evaluated using the 9-box model, which helps identify talents
and growth vectors for each employee group. The assessment
was completed by 100% of managers, specialists, and
office-based staff, as well as approximately 9,932 blue-collar
employees.
People
Strategy
En+ Group’s HR management strategy
seeks to provide opportunities for the
professional development and social
well-being of its employees.
Incentives and remuneration
En+ Group offers its employees competitive pay above the
market average, thereby boosting their motivation and overall
job performance. Employees’ compensation comprises
a basic salary and additional payments contingent upon their
performance evaluation. Additional payments include:
z bonuses awarded to heads of subsidiaries from a dedicated
bonus pool
z annual performance bonuses, as well as quarterly and
monthly bonuses to provide additional incentives
z payments to employees actively contributing
to the Company’s social projects
z payments to recipients of corporate, national, or agency
awards.
Social support to employees
GRI 401-2
En+ Group offers its employees a wide range of social
programmes beyond those required by law and also provides
equal benefits regardless of the type of their employment
contract.
Social support to employees and their families GRI 403-6
SUPPORT PROGRAMME
DESCRIPTION
2023 RESULTS
Preferential mortgage
programme
z The Company’s preferential mortgage programme for the Power
segment was launched in 2020. Employees have the opportunity
to purchase a new-build or second-hand housing on preferential
terms or use the option to refinance existing mortgages.
A total of 323 employees
within the Group have taken
advantage of the preferential
mortgage programme
z The partner bank offers housing loans at an annual interest rate
of 9.5% for 10, 15, or 20 years, with no down payment required.
z The Company covers 50% of the monthly payment.
The programme is available to employees who have worked
at the Group’s facilities for a minimum of three years, as well as
to young specialists employed by the Group for at least a year.
SUPPORT PROGRAMME
DESCRIPTION
2023 RESULTS
Supplementary health
insurance
z The Company strives to ensure that every employee has access
to quality healthcare and allocates funds for supplementary medical
insurance programmes to achieve this goal.
100% of employees are
covered by VHI programmes
Health resort
treatment
z Every year, the Company sponsors employee health improvement
programmes at recreational medical facilities and resorts or
through weekend getaways, as well as offers vouchers for holiday
centres and hotels, and organises vacations for employees’
children. Employees can enjoy a stay at a health resort once every
two or three years by paying just 10% to 20% of the voucher
cost. The remaining costs are covered by the Company. Moreover,
En+ Group reimburses up to 70% of the expenses for family
members’ vacations.
About 1,500 employees’
children benefitted from
vouchers for children’s
camps, with approximately
5,000 employees receiving
vouchers for health resort
treatment
Supporting employed
parents
z Assistance is provided to large families and schoolchildren’s parents
through financial support, along with the distribution of school
supplies during the annual Get a Child Ready for School campaign
and New Year gifts for employees’ children.
57.9% Retention rate
of employees that took
parental leave
z Furthermore, parents of children with special needs are entitled
to a monthly allowance of RUB 10,000 per child until the child
reaches the age of 18, along with reimbursement of preschool costs.
Meal allowance
z The Company provides subsidised meals to all employees
of its Power and Metals segments.
Promotion of sports
and healthy lifestyle
z The Company promotes a healthy lifestyle among its employees
and encourages them to take part in various sports activities.
More than 10 thousand
people from 23 cities
participated in the
"Get on Your Skis” festival
Retiree support
z Retired employees of En+ Group entities are entitled to partial
compensation of health resort treatment costs.
The Group has distributed
approximately 500 vouchers
Dobroservice advisory
support line
z Since 2022, the Company has been collaborating with
the Dobroservice employee support centre. The hotline is available
for psychological and legal support as well as personal finance
advice. Upon receiving a support request, the customer service
manager schedules a convenient time for a consultation or
facilitates an immediate connection with an expert if the issue is
urgent. The service is available 24/7. All information and advice are
confidential.
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People
Involvement of work, women’s, and youth councils GRI 413-1
Human rights GRI 3-3
Signal hotline
GRI 2-30, 401-2
SASB EM-MM-310a.1
Council
Involvement
To ensure effective social support for its
employees, the Company listens to their
wishes and needs, guided by the principle
of social partnership. En+ Group fosters
positive dialogue with employee
representatives from trade union
committees and negotiates collective
bargaining agreements with them.
Moreover, representative bodies formed
from among employees, including
work, women’s, and youth councils,
help facilitate effective communication
with employees.
Women’s councils
Work councils
Active at the Metals segment facilities and at Krasnoyarsk HPP.
Women’s councils conduct workshops, speaker sessions, and
career guidance meetings. They also initiate public-private
partnership projects for community improvement and
coordinate monthly family cultural and sporting events.
Responsible for facilitating communication between employees
and the employer regarding labour and living conditions,
production development, compensation, and other related
matters. Additionally, they hold volunteer, leisure, and sporting
events for employees.
Youth councils
Their efforts are directed towards involving young specialists at
the Company in the decision-making process.
Rights and freedoms of En+ Group employees and suppliers GRI 2-23
En+ Group does not tolerate discrimination on any grounds and
provides employees and candidates with equal opportunities in
hiring, compensation, performance evaluation, and training. The
Diversity and Equal Opportunities Policy is the key document
formalising this principle.
En+ Group respects human rights, works to prevent human
rights violations at its facilities, and expects the same from its
counterparties. The HR Department is responsible for ensuring
human rights compliance across the Group. Human rights risks
are incorporated into the Company’s overall risk management
system. En+ Group conducts regular assessments of these risks.
Workforce diversity metrics
z Age
z Disability
z Sex or gender identity
z Sexual orientation
z Ethnic or national identity
z Religion and beliefs
z Marital status
z Pregnancy and motherhood
z Other characteristics protected by the law
To ensure human rights protection, the Company
strongly relies on feedback mechanisms.
Complaints about violations of labour rights or
discriminatory behaviour, as well as any concerns
that may arise for employees, partners, and other
stakeholders, can be reported via the 24/7 Signal
hotline.
by phone
by email
8 (800) 234-56-40
signal@enplus.ru
No complaints of labour rights violations
were recorded in 2023.
HUMAN RIGHTS
COMPANY APPROACH
2023 KEY FIGURES
VIOLATIONS RECORDED IN 2023 1
UN SDGS
Right to work and favourable working
conditions
The Company operates in strict compliance with the labour laws of the regions where it
operates, ensuring favourable and decent working conditions as well as adequate leisure
time for its employees.
z Social expenses for personnel
amounted to RUB 9.5 billion
z 40% employees have taken training
No violations have been recorded
Right to health
En+ Group respects the rights of its employees and local communities in the regions where
it operates to healthcare and takes measures to mitigate adverse impacts from operations.
At its facilities, the Company ensures compliance with occupational health and safety
standards and implements measures to prevent occupational diseases. Employees are
offered VHI policies. The Company invests in healthcare infrastructure in its host cities and
promotes healthy lifestyle among local communities.
z 100% of employees are eligible to take
No violations have been recorded
part in our VHI programmes
GRI 406-1
Gender equality and non-discrimination
The Company does not tolerate any form of discrimination in its relationships with
employees, safeguarding their rights to equal opportunities for professional development,
training, and career advancement. We are also committed to equal pay for equal work.
z 33% women representation on the Board
No violations have been recorded
of Directors of EN+ GROUP IPJSC
z 0.95 the female-to-male basic salary ratio
in Power segment
GRI 408-1, 409-1
No child, forced, or compulsory labour
En+ Group does not tolerate child, forced, or compulsory labour at its own facilities or
among its counterparties.
z The Company and its counterparties
are not exposed to child, forced,
or compulsory labour risks
No violations have been recorded
The right to safe environment
En+ Group respects the rights of its employees and local communities to a safe
environment and acknowledges the extent of its impact on the environment in the regions
where it operates. En+ Group takes all necessary measures to mitigate its impact and
conducts the relevant assessments when planning and conducting its activities.
z RUB 17.6 mn (207 USD mn)2
was allocated to environmental
protection
No violations have been recorded
The right to privacy
En+ Group respects the privacy of its employees and other stakeholders and takes all
necessary measures to protect personal data.
No violations have been recorded
142
143
Including violations recorded at En+ Group facilities as well as among suppliers.
1
2 Calculated based on the average USD/RUR exchange rate of 85.25 for 2023
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
People
Employee training and development
En+ Group provides its employees with ample opportunities
for development and training. The Company allocated
244.8 RUB mn (2.8 USD mn)1 in 2023 (excluding travel
expenses) for these purposes. Additionally, the Group spent
RUB 485.4 mn (5.66 USD mn) on training its succession pool
(including employer-sponsored education for students of
secondary vocational and higher education institutions).
GRI 404-2
Training opportunities for employees include:
z programmes and courses offered through the corporate
learning portal UNIVER
z professional training (including professional education
programmes for blue-collar jobs, professional
development programmes for managers and specialists,
and simulation training for CHP staff across boiler,
turbine, and boiler-turbine shops)
z subsidised higher education programmes at universities
in the Group’s regions of operation, with the employee
covering the tuition fees for the first semester only
z corporate development programmes and other options.
Within the Professional Training pillar, the Company
employs the Web Expert programme to train and assess
En+ Group managers and specialists on technical standards
and laws and regulations before and during examinations.
Such training and assessment serve as the first step
preceding the knowledge assessment by the facility’s
certification committee, conducted annually to confirm
job fit in accordance with the HR Policies and Procedures.
Upon completing the Web Expert test, the employee is
issued a protocol, which they present to the certification
committee. 1,708 people took the Web Expert tests in 2023.
En+ Group is strongly focused on getting young people into
engineering and manufacturing starting as early as their
schooling and university years. Additionally, the Company
runs a range of programmes to train and employ young
talent.
2023 performance highlights of the Corporate University:
Eleven remote learning courses were developed,
including courses on identifying and documenting
instances of electricity usage for cryptocurrency
mining, compliance with international sanctions,
business correspondence, safe ways of working,
and mentoring
Six remote learning courses and webinars were
updated, including those on leadership, time
management, and teaching
Initiatives implemented in 2023 as part of young talent support
PROGRAMME
DESCRIPTION
RESULTS
Attracting students
Partnerships with
higher and specialised
secondary education
institutions
During the reporting year, the Company entered into
two new cooperation agreements: one with the Balakhna
branch of the Lobachevsky State University of Nizhny
Novgorod, and the other with the Ivanovo Energy College.
Several project agreements have been signed with Moscow
Power Engineering Institute and Lomonosov Moscow State
University. The IT cluster of the Professionalitet programme
maintains partnership relations with the Ust-Labinsk Social
Pedagogical College.
z There are currently 17 contracts
in effect in 2023: five with
secondary vocational education
institutions and 12 with higher
education institutions.
Employer-sponsored
education
Employer-sponsored education for students of secondary
vocational education institutions, such as the Irkutsk
Energy College and the Divnogorsk Hydropower Technical
College, focuses on providing secondary vocational
education and blue-collar training, ensuring subsequent
guaranteed employment at En+ Group.
Scholarship
programme
The scholarship programme was designed as a system
to incentivise talented and promising students studying
energy, metallurgy, medicine, and pedagogy subjects.
En+ Group also enters into employer-sponsored education
contracts with students from Russian higher education
institutions, granting additional monthly scholarships
sponsored by the Company.
Corporate training
and research centres
(CTRCs)
CTRCs offer employer-sponsored training hosted by the
INRTU and Bratsk State University (BrSU) training centres.
In 2023, one of the CTRCs launched a procurement training
programme for EuroSibEnergo Trading House.
IT Academy
The IT Academy is an additional training programme
designed for IT and communication students in higher
education institutions. Its purpose is to build unique
competencies and enhance opportunities for employment
at En+ Group and RUSAL. Students from four Siberian
universities (INRTU, ISU, BrSU, and SibFU) take a 2.5-
or 3-year training programme encompassing a core
curriculum and specialised tracks. These tracks include
information security, web programming and software
development, industrial automation and digitisation,
network and server infrastructure, telecommunication
systems, and ERP platforms.
In the reporting year, the IT Academy was nominated for
a WOW!HR award, a major international HR award.
z Between 2013 and 2023,
265 individuals completed
employer-sponsored training and
were subsequently employed
by En+ Group. Dedicated
investments amounted
to 14.6 RUB mn (171 USD thsd).
z In 2023, the Company offered
scholarships to 177 future
steelworkers, energy workers,
educators, and doctors.
z Over the course of three years,
422 students have received
scholarships. Dedicated
investments amounted
to 29.34 RUB mn (344 USD thsd).
z Over the span of 15 years
(2008–2023), En+ Group
has trained and employed
727 graduates with degrees
in energy.
z In 2023, 62 students completed
their training CTRC-based
programmes.
z Between 2021 and 2023,
550 individuals participated
in the programme, with
226 individuals joining in 2023
alone. Upon finishing their
studies, students are offered
positions at En+ Group facilities:
in spring 2023, 22 graduates
of the first cohort were
welcomed by the Group.
Dedicated investments
amounted to 105.7 RUB mn
(1.2 USD mn).
1 Calculated based on the average USD/RUR exchange rate of 85.25 for 2023
144
145
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT People
PROGRAMME
DESCRIPTION
RESULTS
Initiatives implemented in 2023 as part of young talent support
Young talent training
PROGRAMME
DESCRIPTION
RESULTS
Attracting students
Professionals
As part of the Moscow Urban Forum, En+ Group and
the Federal Institute for the Development of Vocational
Education and Training (FIDVET) forged a partnership
agreement to advance the All-Russian Championship
Movement Professionals.
Energy Lab
The annual grant programme inviting students to take part
in production-related case studies was designed to search
for innovative solutions for further implementation at
En+ Group energy facilities.
The project operates in the accelerator format,
where students’ innovative solutions are curated
and implemented by business experts and academic
supervisors. The project is open to students from all over
Russia. The winners receive grants of up to 400 RUB thsd
(4.6 USD thsd)1 to implement ideas that help address real
production challenges faced by En+ Group. The total grant
fund for 2023 was 1,050 RUB thsd (12.3 USD thsd).
z We plan joint projects
to promote advanced workforce
training standards, facilitate
youth employment, foster a new
operational culture, and enhance
the significance of blue-collar
jobs in Russia.
z Over the course
of six years, the programme
has trained 1,101 students,
with 321 participating in 2023.
By that year, the programme had
expanded nationwide, involving
students from all federal districts
of the country.
DHTC-based Energy
Lab scientific and
experimental
complex
In 2023, the Divnogorsk Hydropower Technical College
(DHTC) inaugurated its new scientific and experimental
complex, the Energy Lab. It comprises two specialised
classrooms equipped with state-of-the-art scale models
of hydraulic turbine and generator units, complemented
by training simulators designed to develop assembly skills.
The virtual laboratory solutions installed on desktop PCs
create an immersive experience, allowing students to feel
like they are running tests in actual laboratory settings.
z The project has been allocated
over RUB 20 mn (USD 234.6 thsd)1
to support its implementation.
Young talent training
The reporting period saw the completion of the application
process for the My Career 2.0 programme. Four out of
the programme’s five stages have been successfully
completed, and in the final stage, 30 individuals with the
highest scores will be selected to join the Company’s talent
pool. They will be provided with internship opportunities
for their new positions and receive support in preparing
for their target roles. Each year, programme finalists are
rotated into vacant positions.
1 Calculated based on the average USD/RUR exchange rate of 85.25 for 2023
My Career 2.0
corporate
development
programme
146
146
En+ Group Leaders
(Future Leaders)
The En+ Group Leaders programme is a company-
wide initiative focused on implementing key projects to
unlock additional business benefits for the Company.
The programme involves employees from the talent pool
who have been selected through internal competitions
and assessment processes and are willing to take on extra
responsibilities and advance professionally and in their
careers.
As part of the programme, participants take training,
implement strategic and local projects, and speak at
conferences.
z At the end of 2023, the number
of participants was 100.
Mentoring
En+ Group is developing a single mentoring system,
which will be supported by a draft company-wide
regulation governing the shop-floor mentoring process.
Mentors will take a remote dedicated course themed
En+ Group Mentorship.
z In 2023, a deep-dive into
the existing mentorship system,
including a benchmarking
exercise, was used to inform
a series of proposals to improve
the current situation.
Employee training
Professional training
The Company runs professional training programmes
across 54 blue-collar professions, alongside various
professional development programmes for managers and
specialists. Additionally, simulation training is provided
for CHP operational staff across boiler, turbine, and
boiler-turbine shops.
Subsidised higher
education
A subsidised higher education programme for En+ Group
employees was launched in 2020. The programme covers
the employee’s tuition costs from the second semester
onwards, with the employee covering the expenses for
the first semester themselves. The programme involves
partner universities in all regions where En+ Group
operates.
z In 2023, 9,640 individuals
received training in various areas2.
z A total 303 employees from
En+ Group’s eight CHPs
completed simulation training.
z A total 28 professional training
programmes for blue-collar
jobs were run, with 749 people
completing the training.
z In 2023, 19 En+ Group employees
participated in the programme,
bringing the total number
of participants between 2020
and 2023 to 68 individuals.
The programme was financed
for a total of RUB 2.27 mn
(USD 26.6 thsd).
z In 2023, 20 students successfully
completed the entire course,
comprising four in-person
modules and a final business
game, with the programme
hitting 100% of its scope target.
2
Including safe equipment operation in hazardous settings, occupational health, civil defence, Russia’s nationwide disaster management
system, fire safety, traffic safety, blue-collar jobs, and professional development and retraining for engineers and technicians.
147
z Following the review process,
209 individuals were selected
from a pool of 477 applications
filed by En+ Group employees.
Kommersant
corporate
development
programme
Dedicated talent pool development programme for
employees of EuroSibEnergo Trading House. Duration of
the programme is one year.
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT People
Energized for action
Professionalitet
Professionalitet Federal Programme was launched by the
Russian Ministry of Education in 2022 across 42 regions.
Its key purpose is to implement an industry-driven workforce
training model by integrating colleges and industrial
enterprises (anchor employers) into clusters focused on the
key sectors of the economy.
The Group’s Power and Metals
segments are actively involved in the
programme as anchor employers
across three clusters.
cluster
METALLURGY
cluster
ENERGY
cluster
IT
1,655
students
were enrolled in the programme in 2022 and 2023
Specifically, in 2023:
250
people
667
people
100
people
in the Metallurgy
cluster
in the Energy
cluster
in the IT cluster
As part of the programme, the Company allocated RUB 279.2 mn (USD 3.2 mn)1 for the renovation of classrooms and
laboratories and the construction of an additional academic building for students based in the Krasnodar Territory.
Krasnodar Territory Digital Excellence Centre
In September 2023, the Krasnodar Territory Digital
Excellence Centre, an education and industrial hub focused
on information technology (IT cluster), was established
in Ust-Labinsk. It will focus on workforce training in the
following areas:
z computer systems and networks, training computer
systems specialists
z information systems and programming,
training software engineers.
The IT cluster is hosted by the Ust-Labinsk Social
Pedagogical College, a state-budget education institution
located in the Krasnodar Territory.
In 2023, students were invited to enrol in the Information
Systems and Programming tracks within the IT cluster.
There were 910 applications for the 50 available
government-funded places and 163 applications for the
50 places available through self-funding.
Due the involvement in the federal project and the support
offered by En+ Group’s partner company as part of the
Proffesionalitet Federal Programme, the participating
education institutions have received the following assistance:
renovation of premises
construction of a new academic building and overhaul of
the dormitory and the existing academic building at the
host college campus
upgrades to education institutions’ facilities
building and fitting-out specialised areas tailored to
different types of tasks (such as laboratories, testing
facilities, and production sections)
development and alignment of the core education
programmes’ structure for various specialties, including
defining graduate competency models
providing training through the professional development
programme for regional management teams of
education and production centres (clusters), faculty,
and company employees
Risk management
HR management risks were deemed insignificant during
the reporting year and, therefore, were not included in
the En+ Group’s overall list of risks. In order to mitigate
HR-related risks, the Group arranges employee training
Metrics and targets
Each year, the Group sets HR management targets.
and development, in addition to offering a variety of social
programmes for its people.
For more details on risks, see the Internal
Control and Risk Management section
on page 200.
GOALS
STATUS
PROGRESS made in 2023
z Conduct employee appraisals
z Completed
z Ensure high levels of qualification
z On track
among existing employees to match
the specific hazardous production
settings and raise requirements
for mandatory knowledge and skills
z In 2023, a total of 1,708 employees
took the Web Expert tests. Power
segment completed the goal.
z The Company remains committed
to advancing the skills and
qualifications of its people
z Hold events to bring high-potential
employees into the Future Leaders
programme
z Completed
z The programme was joined more than
280 employees
z Develop a company-wide mentoring
z On track
system
z A draft company-wide regulation
governing the shop-floor mentoring
process has been developed, and
the dedicated remote learning course
themed En+ Group Mentorship has
been published on the UNIVER portal
z Improve data collection on internal
training by automating UNIVER
portal processes
z Completed
z Training-related data collection
through UNIVER has been automated
z Increase the number of scholarship
z Completed
recipients employed or wishing to be
employed by the Company
z The number of scholarship recipients
majoring in energy-related fields
and employed by the Company has
increased. In 2023, there were a total
of 177 scholarship recipients
1 Calculated based on the average USD/RUR exchange rate of 85.25 for 2023
148
149
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENTA joint project between the Power and Metals segments.
People
GRI 2-7, 401-1
SASB EM-MM-000
At the end of 2023, En+ Group’s headcount was 90,064, down
by 6,553 year-on-year. The majority of employees are employed
under full-time (98.9%) permanent (93.8%) employment
contracts.
The Company is also focused on promoting gender equality and
is committed to achieving a gender-balanced workforce. Women
account for 28.4 of the total workforce. During the reporting
year, 13,190 employees were hired, 32.7% of whom were women,
consistent with industry averages. The proportion of women on
the Board of Directors of EN+ GROUP IPJSC stood at 33% in 2023.
When recruiting for its facilities and units, the Company
prioritises local hiring1.The proportion of locally hired managers
stood at 98.2% in Russia and 60.7% in other countries in 2023.
GRI 2-7
SASB EM-MM-OOO.B
Total headcount as at the year-end5
En+ Group provides employment and professional development
opportunities to people with special needs 2. In 2023, the average
headcount of disabled employees was 900, comprising 1% of the
total workforce.
GRI 2-8
Workers who are not employees include contractors and
subcontractors engaged under civil law contracts. They
participate in construction and repair operations and contribute
to technological developments, employee training, and
marketing campaign planning.
Employee turnover 3 during the reporting period was 12.8%, up
2.3 p.p.
In 2023, labour costs totalled RUB 133.5 billion
(USD 1,566 million)4. Expenses for social security of
personnel amounted to 9.5 billion rubles (USD 111.4 mn).
En+ Group contributes to improving the quality of life
for its people and promotes their financial well-being. In
November 2023, salaries for employees saw an average
increase of 14%.
The average salary in the Power segment was 84,728
rubles, in the Metals segment—103,491 rubles. In 2023,
the female-to-male salary ratio in the Power segment was
0.95, compared to 1.3 in the Metals segment. The average
basic salary of men at the Company is higher than that
of women. This is because statutory restrictions prevent
women from working in hazardous setting, where higher
pay rates are offered.
Average pay of En+ Group employees
in Russia in 2023, RUB
Metals segment
Power segment
GRI 405-2
Female-to-male basic salary ratio at Russian entities, 20237
Metals segment
Power segment
On average, across the segment
Blue-collar employees
Specialists
Middle-level management
Senior management
1.3
1.4
1.4
1.1
1.3
103,491
84,728
0.95
1.06
1.34
1.19
1.32
Metals segment
Power segment
GRI 405-1
57,100
59,463
57,933
2023
2022
2021
32,964
37,154
35,256
90,064
96,617
93,189
Gender diversity, 2023, %
Employee breakdown by age, 2023, %
Women
Men
Below 30
30–50
Over 50
Total workforce
Blue-collar employees
Specialists
Middle-level management
Senior management6
Board of Directors8
28.4
21.7
57.0
23.8
22.3
33
71.6
78.3
43.0
76.2
77.7
67
Total workforce
Blue-collar employees
Specialists
Middle-level management
Senior management
Board of Directors
13.0
14.6
12.6
3.1
1.2
61.6
25.4
59.6
25.8
66.6
20.8
67.0
29.9
60.2
38.7
0
33
67
For more details on En+ Group employees, broken down
by age groups, see the Additional ESG Data section
on page 351.
The geography-based definition of a local community includes the country of operation.
1
2 Pursuant to Federal Law On Social Protection of Disabled Persons in the Russian Federation and to fill quota-based positions with the required number of disabled employees,
the Company enters into agreements with local branches of the All-Russian Society of Disabled People in its regions of operation. This allows Group facilities to meet their
quota obligations through such agreements.
In the Power segment, employee turnover is calculated as the number of employees who left during the reporting period (under Art. 77(1)(3) of the Labour Code of the Russian
Federation) divided by the total headcount as of 31 December. In the Metals segment, employee turnover is calculated as the number of employees who left during
the reporting period (irrespective of the reason or the article of the Labour Code of the Russian Federation) divided by the total headcount as of 31 December.
3
The total number of employees at the end of the year does not include external secondary job employees. The data was collected using the HR data collection system.
4 Calculated based on the average USD/RUR exchange rate of 85.25 for 2023
5
6 Senior managers include a president, vice-presidents, directors of enterprises, production units and other functions, as well as their deputies.
7
8 Board of directiors of En+ Group without RUSAL
The basic salary excludes any additional remuneration, such as payments for overtime or bonuses.
150
85
%
9.5
RUB
bn
The percentage of total employees
covered by collective bargaining
agreements remains stable
En+ Group spent on employee welfare
in 2023
USD 111.4 mn
151
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT People
Contribution to local communities
In order to gauge team morale and tension, the Company
conducted an annual survey using online questionnaire
forms. This helped establish employee engagement and job
satisfaction levels.
2023 satisfaction and engagement
survey results
58,654
Group employees participated in the survey
75.6
75.6
%
79.8
%
Employee
engagement level
9% higher than in 2019
Employee
satisfaction level
9,1% higher than in 2019
67.8
67.8
Ensure the implementation
of the Scholarship
programme, facilitating
employment at the Company
or the conclusion of
employer-sponsored training
contracts with a minimum of
55% of scholarship recipients
Continue the IT Academy
educational programme
through partnerships with
IRNITU, ISU, BrSU, and SibFU
to ensure that our needs for
IT talent are covered
1
2
Run the Energy Lab
acceleration project
engaging at least 15 higher
and secondary vocational
education institutions
Grow the En+ Group Leaders
programme in accordance with
the action plan
Employee engagement
and satisfaction levels, %
Satisfaction
Engagement
79.8
73.8
71.5
2023
2022
2021
PLANS FOR 2024
AND BEYOND
As part of the
Professionalitet project,
ensure the implementation
of the approved action
plan, commence dedicated
training programmes at
the Irkutsk Energy College
and the Ust-Labinsk Social
Pedagogical College, and
apply for the registration of
a new Coal cluster for review
3
4
5
152
2024
INTERNAL REGULATIONS
z Stakeholder Engagement Policy
MATERIAL TOPICS
z Community engagement
z Social and cultural diversity
and equal opportunities
>5,000
employees participating
in volunteer programmes
Management
RUB bn
GRI 3-3
5.3
total social investments by En+ Group
62.3 USD mn
En+ Group cares about the well-being of people living
in the regions where it operates, contributing to
addressing the social and economic challenges they
may face.
GRI 2-29
The primary document governing the Group’s efforts
within its areas of responsibility is the Stakeholder
Engagement Policy. The document formalises the
core principles and procedures for liaising with
government bodies, local communities, non-profit
organisations (NPOs), and Company employees, who
are also part of local communities.
GRI 413-1
SASB EM-MM-210a.3
The Company’s social investment initiatives
encompass developing social and urban
infrastructure, providing accessible and high-quality
education and healthcare, and promoting culture and
sports. The Company identifies the focus areas for its
social initiatives at the local level, aligning them with
the voices and interests of the residents within its
areas of responsibility. The Group conducts an annual
social survey to identify local issues for subsequent
development of programmes to address them.
En+ Group also routinely hosts forums and meetings
with local community members and actively engages
local communities on the Company’s volunteer
initiatives.
153
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
People
Sustainable Cities
Responsibility Index
En+ Group’s Power and Metals segments
evaluate the performance of social projects
using the Sustainable Cities Responsibility
Index analytical tool. It provides a framework
for a comprehensive assessment of the appeal
our regions of operation have as a place to
work and live, enables the identification of
pressing issues, and helps set objectives for the
development of local communities and robust
engagement with municipal authorities.
In 2023, the Index covered 42 cities and
municipalities, with the respondent base
exceeding 5,000 individuals from the regions
where the Metals segment operates and over
2,500 people from the cities and municipalities
within the Power segment’s footprint. Based
on the survey findings, the Sharypovsky District
of the Krasnoyarsk Territory, Nizhny Novgorod,
and Krasnoyarsk emerged as Index leaders
owing to their balanced development. These
regions boast the highest quality of life and area
improvements, including dimensions such as
the availability of affordable housing, decent
levels of income, diverse job opportunities in
the labour market, and robust healthcare and
education systems.
The Index also facilitated the identification
of areas for improvement specific to the
surveyed locations. Specifically, the following
issues were identified in the lagging cities and
municipalities: unemployment stemming from
limited career prospects; low accessibility
and quality of medical services, education,
and transportation; polluted air and water;
frustration with municipal solid waste
management; elevated public safety concerns;
lack of infrastructure for leisure and recreation;
and population outflow. Through identification
of problem areas, En+ Group is able to better
allocate community investments to improve
living standards in its operating regions.
By 2025, the Group intends to allocate 100%
of its social investments in the regions of
operation based on measurable metrics derived
from the Sustainable Cities Responsibility Index
methodology.
GRI 203-2
En+ Group respects the rights of local
communities and is committed to promoting
their social and economic well-being.
Thus, during the hiring process, local hiring is
prioritised. Candidates from other regions are
only considered if the skills and competencies
matching the En+ Group’s requirements and
standards are not available locally.
Settlement
Region
Sharypovsky District
Krasnoyarsk Territory
Nizhny Novgorod
Nizhny Novgorod Region
Krasnoyarsk
Krasnoyarsk Territory
Sayansk
Irkutsk
Volgograd
Irkutsk Region
Irkutsk Region
Volgograd Region
Krasnoturyinsk
Sverdlov Region
Kandalaksha
Sayanogorsk
Murmansk Region
Republic of Khakassia
Boguchansk District
Krasnoyarsk Territory
Novokuznetsk
Kemerovo Region
Angarsk
Ust-Ilimsk
Irkutsk Region
Irkutsk Region
Kamensk-Uralsky
Sverdlov Region
Irbeyskoye Village
Krasnoyarsk Territory
Bratsk
Shelekhov
Irkutsk Region
Irkutsk Region
Tayozhny Settlement
Krasnoyarsk Territory
Divnogorsk
Achinsk
Cheremkhovo
Severouralsk
Chita
Krasnoyarsk Territory
Krasnoyarsk Territory
Irkutsk Region
Sverdlov Region
Trans-Baikal Territory
Cheremkhovsky District
Irkutsk Region
Tulun
Irkutsk Region
Zheleznogorsk-Ilimsky
Irkutsk Region
Kyzyl
Baikalsk
Ulan-Ude
Tyva Republic
Irkutsk Region
Republic of Buryatia
Nizhneudinsk
Irkutsk Region
Sorsk
Taishet
Belogorsk
Algatuy
Usolye-Sibirskoye
Ziminsky district
Nadvoitsy
Krasny Chikoy
Republic of Khakassia
Irkutsk Region
Kemerovo Region
Irkutsk Region
Irkutsk Region
Irkutsk Region
Republic of Karelia
Trans-Baikal Territory
ENVIRONMENT
POTENTIAL
VALUES
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26
33
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20
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n/a
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23
22
23
7
36
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0
17
75
57
65
66
60
47
59
52
59
53
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77
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73
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25
31
57
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65
68
70
74
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63
79
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56
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67
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56
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40
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57
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63
43
53
36
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53
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57
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57
51
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37
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43
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61
50
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27
52
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74
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59
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37
77
61
69
74
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74
66
64
59
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54
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71
54
59
52
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51
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87
59
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79
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61
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12
48
51
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41
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66
50
53
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59
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64
62
58
55
54
53
53
52
52
52
51
50
50
50
49
49
48
48
48
48
47
47
47
47
46
46
46
45
44
44
44
43
43
42
40
40
40
39
154
Note: the score is from 0 to 100, where 0 is the lowest score, 100 is the highest score.
155
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
People
Strategy
En+ Group social investment and project management structure
GRI 2-13
Development of infrastructure and urban environment
BOARD OF DIRECTORS,
EN+
CEO
GRI 203-1
En+ Group is focused on improving and developing the regions
and cities where it operates. The Company is working on
improving electricity supply and invests in projects to develop
and improve urban areas, including through public-private
partnerships (PPP) initiatives. In 2023, En+ Group, the Irkutsk
Region government, and the Irkutsk Region Development
Corporation signed an agreement to roll out the Regional
Investment Standard.
Infrastructure projects implemented in 2023
Project
Objective
Investments
Outcomes
DEPUTY CEO FOR PUBLIC RELATIONS
COMMITTEES ON SOCIAL INVESTMENTS
PUBLIC RELATIONS DIRECTORATE
DEPARTMENT OF COMMUNICATION
AND SOCIAL PROJECTS
COMMITTEES ON SOCIAL PROJECTS AT ENTERPRISES
- Directly engage with host communities; review queries and assistance requests
- Develop recommendations on the social policy for committees
- Approve social investments at the enterprise level
Power segment
Improving electricity
supply
Ensuring local residents
have access to reliable and
high-quality energy supply
PPP projects
Improving the Irkutsk Region
infrastructure through project
co-financing
PUBLIC EXPERT COUNCIL
ON SUSTAINABLE DEVELOPMENT
BOARD OF DIRECTORS,
METALS SEGMENT
CEO
Metals segment
Public parks
Improving public park areas
RUB 482 mn
(USD 5.6 mn)
En+ Group delivered on its promise to open
five new substations in Irkutsk and the Irkutsk
and Shelekhov Districts. In 2023, thousands of
customers benefitted from improved electricity
supply
En+ Group co-financed 46 PPP projects. A skate
park was opened in Bratsk. Investments will
help start the construction of over 25 public
transport stops and improve 20 public spaces.
Additionally, road sections, including pedestrian
areas and lighting systems, will be repaired, and
equipment for social infrastructure facilities will
be provided
The Troitsky Park renovation project was
completed in Achinsk, with progress made on
the renovation projects for the Central Park in
Krasnoyarsk and the public park in Taishet
SUSTAINABLE DEVELOPMENT
DIRECTORATE
Develops social investment strategy
and priorities under the Sustainable
Development Strategy
SOCIAL POLICY COMMITTEE
Approves the social investment strategy,
priorities, and budget, as well as the
content and scope of funding for social
programmes and projects in each region
of operation
CENTRE FOR SOCIAL PROGRAMMES CORPORATE CHARITABLE FOUNDATION
Carries out day-to-day
management of charitable
activities and social
investments in the regions of
operation
Monitors and evaluates
social projects
Prepares proposals
to improve existing
programmes and develop
new ones
REGIONAL COMMITTEES ON SOCIAL
INVESTMENTS
COMMITTEES ON SOCIAL PROJECTS
AT ENTERPRISES
- Review charitable assistance requests
received by enterprises
- Make proposals on social investments in
respective regions
Environmental project grant competition
In 2023, the competition was held for the fourth time.
Bratsk joined the participating regions, and a new category,
Baikal without Plastic, was added. A record 211 applications
were received, with 21 projects eventually approved for
support. A combined total of 21 offline and online events
were delivered, including four training webinars attended
by 355 people.
The competition’s primary objectives include promoting
the En+ Group brand as a socially oriented business,
fostering loyalty among local residents across the
Company’s footprint, and building local sustainable
communities. Local communities cite the strong
educational thrust of the competition and the dedicated,
in-depth advisory support provided at every step of the
competition.
In 2023, a record nine eco-trail improvement projects
were completed, five of which involved the construction of
scenic and comfortable picnic areas.
Appointments/instructions
Review of resolutions, preparation of recommendations / implementation of resolutions
156
156
157
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT People
Support for environmental projects
GRI 203-2, 413-1
En+ Group strives to both mitigate the environmental impact
of its operations and implement environmental protection
initiatives through volunteer engagement and partnerships with
non-profits and national parks. Initiative participants contribute
to maintaining the natural state of nature reserves, restoring eco-
trails, collecting and sorting waste, and planting trees. En+ Group
engages with NPOs, activists, and local communities to organise
annual environmental, scientific, and educational events.
In partnership with Pribaykalsky National Park and Krasnoyarsk
Pillars National Park, the Company facilitates educational
programmes focused on environmental conservation.
Environmental projects implemented in 2023
Project
Objective
Investments
Outcomes
Power segment
Environmental project
grant competition
Preserving aquatic ecosystems
and biodiversity and maintaining
the ecological balance of natural
areas within En+ Group’s areas of
responsibility
Ecological and
educational volunteer
camps
Promoting a sense of
environmental responsibility
among employees and their
children
RUB 1 mn
(USD 11.7 thsd)
Winners were selected across the
competition’s six categories, including
Local Initiatives, Pooling Resources,
Sharing Expertise, Science and Practice,
and Sustainability Commitment. Grants of up
to 600 RUB thsd (7 USD thsd)1 were awarded
to 21 projects out of a record 211 applications
received.
In collaboration with the Krasnoyarsk Pillars
National Park, En+ Group held various events
for Krasnoyarsk HPP employees and their
children, including children’s environmental
and educational trips, children’s environmental
holidays, and family environmental and
educational outings. A total of 55 people
participated in the programme.
Metals segment
River Day Marathon
annual environmental
initiative
Cleaning the banks of rivers and
other water bodies within areas
of responsibility
A total of 37 tonnes of waste were collected,
sorted, and properly disposed of.
Green Wave traditional
environmental initiative
Running urban greening
initiatives selected based on the
findings of the Sustainable Cities
Responsibility Index study
Over 1,240 individuals from 18 cities
participated in the event.
Project 360 environmental
volunteer initiative
Energized for action
Project 360 environmental volunteer initiative is an integral part
of En+ Group’s comprehensive programme World with a Plus
Sign focused on protecting Lake Baikal and protected areas from
negative environmental impacts. The Project’s history dates back
to 2011 when 100 employee volunteers gathered together to
clean up the shores of Lake Baikal.
The project’s reach
and geographical
coverage have
expanded
significantly since
launch.
OVER THE PAST 13 YEARS:
> 158
thsd people
4,669
t of waste
became environmental
volunteers
was collected and
properly disposed of in
various regions of Russia
thousands of volunteers,
hundreds of organisations, and
dozens of municipalities joined
the movement
Aside from annual large-scale clean-ups, Project 360
volunteers are engaged in installing eco-trails, planting
trees, improving tourist infrastructure, and maintaining
protected areas.
THE PROJECT IS RUN IN THREE DIFFERENT FORMATS
1
2
3
Environmental campaigns in host cities – Irkutsk,
Bratsk, Ust-Ilimsk, Divnogorsk, Miass, and Nizhny
Novgorod. In 2022 and 2023, the campaign was also
run in Severobaykalsk, Ulan-Ude, and Krasnyj Chikoj
In the reporting year, it took place for the first time
in Tulun and Cheremkhovo
An online marathon for those seeking to adopt
eco-friendly lifestyle.
The traditional clean-up at Lake Baikal, supported
by En+ Group, involves municipalities situated in
close vicinity to the lake in the Irkutsk Region and the
Republic of Buryatia.
PROJECT 360 RESULTS IN 2023
6,037
participants
2,080
participants
1,713
residents
100,746
kg
including 2,244 participants
across 11 En+ Group host
cities (Irkutsk, Bratsk, Ust-
Ilimsk, Divnogorsk, Miass,
Nizhny Novgorod, Ulan-Ude,
Severobaykalsk, Krasnyj Chikoj,
Tulun, and Cheremkhovo)
joined the online marathon
designed for individuals
seeking to adopt eco-friendly
lifestyle
the traditional clean-up event
at Baikal brought together
in the Irkutsk Region and the
Republic of Buryatia
The total amount of litter
collected and sorted stood
1 Calculated based on the average USD/RUR exchange rate of 85.25 for 2023
158
159159
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
People
Support for education
GRI 203-2
One of En+ Group’s social policy priorities is promoting education
in its operating regions as well as ensuring its accessibility
and quality. The Company strives to enhance the skills and
competencies of both its employees and future young talent,
including students from schools, secondary specialised colleges,
and universities. En+ Group’s investments in education are
made through various projects, including the Energy Lab and
IT Academy for additional professional training as well as through
olympiads and scholarships awarded to talented school and
university students. In addition, the Company offers targeted
support to educational institutions and actively participates in
forums and career fairs.
Energy in Every Drop
As part of an umbrella programme to promote
education across En+ Group’s operating regions,
the Company developed an educational and
methodological course themed Energy in Every Drop.
It uses robotics kits to introduce students from grades
5 to 9 to the basic principles of hydropower plant
operation. The project aims to present the job of
a power engineer in an engaging educational format,
highlighting its significance for the operation of
production and social infrastructure facilities and thus
spark an interest in students to pursue careers in this
field.
The programme participants are invited to take part
in training sessions, workshops, educational games,
project-based courses, and robotics competitions.
At the end of 2023, the programme had over
180 registered participants, including educational
institutions from 38 regions across Russia and cities
such as Irkutsk, Bratsk, Ust-Ilimsk, Divnogorsk,
Krasnoyarsk, Nizhny Novgorod, and Miass.
2023 HIGHLIGHTS
60 teachers and school students from
18 cities across Russia received training
as part of the project’s second education
camp held on the shores of Lake Baikal
Each participating teacher received
a state-approved certificate of profession-
al development confirming completion of
the programme developed specifically for
the camp
A special hybrid webinar was organised to
train teachers who could not attend
Educational projects implemented in 2023
Project
Objective
Investments
Outcomes
Power segment
Energy School and
Energy Classes
The Company offers career
guidance for school students
and free tutoring for the
Unified State Examinations
for admission to Siberian
universities, focusing mainly
on specialties required in the
energy sector
RUB 6.727 mn
(USD 78.9 thsd)1
A total of 1,293 individuals (1,171 students,
63 teachers, and 59 parents) have registered
on the Energy School’s portal.
Multilabs
Establishing state-of-the-art
centres for building and
enhancing competencies
in robotics, electronics,
engineering design, and
multimedia
Over RUB 83.9 mn
(USD 984 thsd)
over 2022–2023
RoboSib robotics
festival
Promoting robotics among
young inventors aged
4 to 18 nationwide
RUB 23.2 mn
(USD 272 thsd)
Retiree course
Assisting older people with
navigating online services
Metals segment
RUSAL
FestivAL#Science 2023
Unlocking the potential of
school students in En+ Group’s
operating regions
Over 100 schools in the Irkutsk Region are
participating in the project.
Between 2015 and 2023, a total of
379 people graduated from the Energy
Classes programme, with 40 school students
participating in the programme in 2023.
En+ Group continued to implement its
Multilab En+ project, hosting its second
competition in 2023 and opening
competency building centres in Bratsk,
Angarsk, and Nizhny Novgorod. In total
the Company has unveiled seven multimedia
classrooms.
Scale:
z 700 participants
z 86 teams, with 52 achieving success as
winners or runners-up across various
categories
z 4,000 attendees over the two days
of the festival
Ten teams received vouchers totalling
100,000 RUB thsd (1,200 USD) for purchasing
robotics equipment, while seven teams were
awarded with trips to the All-Russian finals
of the FIRST ROBOTICS CHAMPIONSHIP—
Yekaterinburg 4.0. As part of the event,
130 teachers from the Irkutsk Region attended
workshops on new AVRORA Robotics
solutions.
A record number of retirees in the Irkutsk
Region enrolled in the Granny Online course
offered by Irkutskenergosbyt as part of
the city’s Active Ageing project, with nearly
700 participants.
Platforms were set up for assembling
quadcopters, testing augmented reality
technologies, and other activities.
Participants: school students from 13 cities.
160
161
1 Calculated based on the average USD/RUR exchange rate of 85.25 for 2023
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT People
Support for sports and healthy lifestyle
En+ Group strongly promotes healthy lifestyles
among its employees, their families, and local
communities. The Company invests in both amateur
and professional sports development, provides
financial support to professional sports teams, and
implements sports infrastructure projects.
Get on Your Skis
In 2023, our large-scale sports project
Get on Your Skis celebrated its 7th birthday.
Since 2016, En+ Group, with the support
of the Russian Ski Racing Federation, has
been developing and promoting ski racing
as one of the most accessible sports.
In terms of geography, the project covers the Komi and
Khakassia Republics, Krasnoyarsk Territory, and the Irkutsk and
Kemerovo Regions. Local residents from the Nizhny Novgorod,
Sverdlovsk, Chelyabinsk, Sakhalin, and Novosibirsk Regions,
Perm and Primorye Territories, as well as the Republic of
Sakha (Yakutia).
Sports and healthy lifestyle promotion projects implemented in 2023
Project
Objective
Outcomes
Sokol martial
arts centres
Supporting the development
of martial arts in the operating
regions, enhancing the quality
of life in small towns by
providing beneficial recreational
opportunities to children and
young adults
Investments were directed towards constructing and expanding martial arts
centres (MAC).
At the end of 2023, there were three centres in operation, there are plans to
open an additional 7 MAC.
THE PROJECT IS RUN ACROSS FIVE MAIN AREAS
1
2
3
GET ON YOUR SKIS
CHAMPIONSHIP
The annual cross-country ski
championships are open to
athletes aged between 13 and 16.
The championship is divided into
three stages—two preliminary
rounds followed by the final—and
attracts over 1,500 participants
annually.
In 2023, the championship final
took place in Krasnoyarsk.
350
athletes
from 14 regions
> 500
thsd people
viewers tuned in to watch the live
broadcasts of the competitions
GET ON YOUR SKIS
FESTIVAL
The festival is held annually in
different cities of Russia and is
open to all individuals.
During the 2022–2023 ski season,
over 10,000 people from 23 cities
participated in the festival. They
were offered contests, mass
ski races, and entertainment
programmes for children and
adults.
thsd people
> 10
from 23 cities participated
in the festival
SCHOOL PROJECT
SKIING AT SCHOOL
The initiative was launched in
2022 in Angarsk, Irkutsk Region,
and Divnogorsk, Krasnoyarsk
Region. In line with its purpose,
local schools have integrated
compulsory physical education
ski classes into their curricula.
These lessons are hosted by
certified coaches on prepared ski
tracks, with bus transportation
provided to school students.
Between 2022 and 2023, 625 ski
sets, two snowmobiles, and
six drying units were acquired.
Over 5,500 school students are
participating in the project.
4
5
BEST SKI COACH OF THE
YEAR COMPETITION
DEVELOPMENT OF SKI
INFRASTRUCTURE
Since 2019, the competition has
been held annually to recognise
the top children’s and youth
cross-country ski coaches.
The winners receive a monthly
stipend for the season, ski
equipment, and access to career
enhancement courses.
In 2022–2023, the competition
expanded nationwide, covering
25 regions of the country selected
based on performance in the
previous season.
To create comfortable conditions
for ski racing, En+ Group
constructs and renovates
ski tracks and facilities and
supplies equipment for
their maintenance. In recent
years, the ski facilities at the
Divnogorsk Technical College of
Forest Technologies have been
revamped.
RUB 35
mn
the total investment reached
410.5 USD thsd
162
163163
HEALTHY LIFESTYLESTRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENTA joint project between the Power and Metals segments People
Promoting culture
To promote culture across its footprint, En+ Group supports
external cultural events, runs its own initiatives, and allocates
funds towards the development of cultural and artistic
institutions.
In 2023, the Group continued its support for the Baikal Dance
Festival by acting as a partner of the event. Guests and
participants of the festival were treated to the exclusive Ballet on
Baikal: Buryatia programme that took place in the Peski special
economic zone in the Pribaykalsky District. Aside from its cultural
dimension, the event’s key goal is to raise public awareness about
the imperative need to conserve and safeguard Lake Baikal’s
unique natural treasures.
Volunteering
Integral to En+ Group’s social policy and community engagement
is the active involvement of volunteers, including both employees
and non-employees, in social and environmental initiatives.
With this in mind, En+ Group is strongly focused on fostering
a culture of volunteering and engaging people on addressing
the social challenges our regions face. The Metals segment runs
volunteer initiatives as part of the Helping is Easy programme,
which introduces technologies to involve local communities in
social-impact activities.
Volunteer projects implemented in 2023
Project
Objective
Outcomes
Power segment
World With a Plus Sign
Protecting Lake Baikal and
protected areas from negative
environmental impacts
Key outcomes of the World with a Plus Sign programme so far include:
z as part of the environmental project grant competition,
the programme successfully implemented 81 initiatives, providing
training to 1,700 activists. Additionally, over 100 environmental events
and 13 scientific expeditions were organised
z a remarkable 158,000 volunteers participated in the Project 360
initiative
z in collaboration with NPOs, we installed 12 km of eco-trails and
collected over three tonnes of clothes for those in need
Metals segment
Helping is Easy
programme
Promoting corporate and
community volunteer initiatives
A sociological survey was conducted to determine employee attitudes
towards volunteering and the recognisability of the Company's social
projects. 691 people took part in the survey.
Charity
The Company supports local communities in its operating
regions through targeted assistance to those in need.
En+ Group’s charitable efforts target the most vulnerable
segments of the population, including adults and children with
special needs, orphaned children, and low-income families.
The Metals segment provides charitable assistance across all
countries where it operates. As an illustration, in 2023, the
Company offered aid to victims of the explosion at an oil terminal
in Conakry, Guinea. Medical supplies and personal protective
equipment for healthcare workers were supplied to local
hospitals.
The World with a Plus
Sign programme won
the People Are Key
award
In 2023, En+ Group’s efforts were
recognised with an award at the People
Are Key All-Russian Corporate Projects
Competition. The judging panel praised
the World with a Plus Sign initiative as
one of the best ESG and CSR projects,
awarding it the Natural Heritage
Conservation Award.
164
165
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT People
Risk management
En+ Group’s current list of key risks does not include
risks associated with the impact of its operations on local
communities. Potential risks may involve violations of the rights
of local communities resulting from the Company’s operations.
To mitigate these risks, En+ Group regularly organises forums
and meetings with local communities to discuss its projects and
works to develop feedback mechanisms.
Metrics and targets
For more details on risks, see
the Internal Control and Risk
Management section
on page 200.
EVERY YEAR, EN+ GROUP SETS OBJECTIVES FOR COMMUNITY INVESTMENTS AND ENGAGEMENT
GOALS
STATUS
PROGRESS made in 2023
z Expand social initiatives and
z Achieved
z The Group implemented
Social investments in 2023
Educational projects
Culture
Development of infrastructure
and urban environment
Volunteering
Sports
Healthcare
Developmant of NGOs and local
communities
Social support
Environment and animal
protection
Other
3.9%
0.1%
4.1%
37.2%
USD 62.3 mn
7.5%
8%
14.9%
1.5%
0.7%
22.1%
When implementing projects to support local communities,
En+ Group prioritises those that promote and support
social initiatives and programmes contributing to long-term
goals. Project funding is allocated by the Company through
a transparent and competitive process, ensuring equal
opportunities for all participants and beneficiaries of the
programmes.
engagement with stakeholders,
including fostering robust dialogue
with youth and work councils and
partnering with NGOs and national
parks
z Develop innovative tools to engage
local community members through
workshops, task-based activities,
games, etc.
infrastructure projects through
partnerships with local authorities,
environmental projects in partnership
with national parks, and social
initiatives through partnerships
with NPOs
PLANS FOR 2024
AND BEYOND
z Achieved
z The Group implemented
environmental volunteer projects,
engaging communities in its operating
regions through interactive events and
innovative communication channels,
including chatbots
z The Metals segment opened several
new martial arts centres in host cities
z A new skate park was opened
z Commission several sports
z Achieved
infrastructure facilities, including
a football pitch and a multi-use
track for bicycles, kickscooters,
and skateboards
z Expand the volunteer movement
z Achieved
z Over 5,000 volunteers participated
in our initiatives
z Align 100% of community
z On track
z The methodology
investments with the Sustainable
Cities Responsibility Index
methodology as part of the Metals
segment’s transformational project
of the Local Community Life Quality
and Sustainable Development
Index has been incorporated into
the Company’s system for assessing,
planning, and implementing social
investments
166
Implement projects
in accordance with
the Sustainable Cities
Responsibility Index
1
Continue with the Energy
School and Energy Classes
projects while expanding the
participant base
Develop digital technology
programmes tailored for school
and university student
Continue holding the Energy
Lab competition to source
promising innovations for
integration into En+ Group’s
operations and to ensure the
implementation of at least
three finalist solutions
2
3
4
2024
167
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Governance
Corporate governance
INTERNAL REGULATIONS
z Regulations on the Board of
Directors
z Corporate Code of Ethics
z Board of Directors Diversity Policy
MATERIAL TOPIC
z Corporate governance
8
out of 12 directors
are independent and non-executive
12
directiors on the Board1
6
Board committees
All Board committees are chaired
by independent non-executive directors
GOALS
STATUS
PROGRESS made in 2023
z To conduct self-evaluation and
z On track
independent evaluation of the Board
of Directors, its members, and
committees in order to assess
the Board’s performance
z To arrange for professional advanced
training of Board members, which
was cancelled or postponed due
to the COVID-19 pandemic and
the geopolitical situation
z On track
z Independent evaluation of the Board’s
performance in 2023 was conducted
z The planned training session
on sanctions compliance was
conducted in October 2023 as part
of an off-site strategy session
GRI 3-3
The Company is committed to high standards of corporate
governance. The Group intends to further improve its
performance in this area and to adhere to internationally
recognised standards of corporate governance, transparency,
disclosure, and accountability applicable to listed companies.
The Company overhauled its corporate governance practices
after OFAC imposed sanctions on the Company and its
subsidiaries on 6 April 2018 and subsequently lifted them on
27 January 2019. With these amendments, the Company has
proven its commitment to stringent international standards of
corporate governance.
In accordance with the Barker Plan 2 and the conditions for
removing the Company from OFAC’s Specially Designated
Nationals List (SDN List), on 28 January 2019, the Company
announced the immediate appointment of seven new
independent non-executive directors.
On 8 February 2019, Lord Barker was appointed Executive
Chairman of the Board and Christopher Burnham was appointed
Senior Independent Director.
Lord Barker’s appointment came with additional powers and
responsibilities designed to enhance the control exercised by the
Board over the corporate governance systems and procedures
in place at the Company. The appointment was meant to further
increase collaboration between the Board and management to
drive the Company’s continued success.
As an international company 3, En+ Group aims to comply with
the recommendations of the Russian Corporate Governance
Code insofar as appropriate and practicable in the Group’s
context. In corporate governance, the Company is also guided by
the Listing Rules of Moscow Exchange.
As a company incorporated in Russia, with GDRs listed on
the Official List of the UK Financial Conduct Authority and
admitted to trading on the Main Market of the London Stock
Exchange 4,the Company is not required to comply with the
provisions of the UK Corporate Governance Code. The Company
has nonetheless chosen to comply with the UK Corporate
Governance Code insofar as appropriate and practicable in the
Group’s context.
We consider the following corporate governance
principles to be fundamental to our operations:
Compliance with the recommendations and
principles of the Bank of Russia’s Corporate
Governance Code
Transparency
Open and clear
decision making
Fully complied with
Not complied with
Partially complied with
Not applicable
Legal compliance,
including clear and
robust compliance with
requirements for the
Company to be and
remain clear from
OFAC’s sanctions
Ongoing growth in
the Company’s value
for the benefit of all
stakeholders
2023
2022
2021
56
53
18
14
20
5
1
47
22
9
1
For more details on compliance with
the recommendations and principles
of the Corporate Governance Code,
see Appendix No. 1.
1 As at the date of this Report.
168
2
Lord Barker’s plan for lifting OFAC’s sanctions from the Company was announced on 27 April 2018 and subsequently approved by the Board of Directors on 18 May 2018.
The plan envisaged reducing Mr. Deripaska’s shareholding to below 50% and appointing a number of new Directors so that the majority of new directors on the Board
were independent. Further details of the Barker Plan were disclosed, in particular, in the Company’s Annual Report 2018, available on the Company’s website
at https://enplusgroup.com/en/investors/results-and-disclosure/annual-reports/.
3 As defined by Federal Law No. 290-FZ On International Companies and International Funds dated 3 August 2018.
4
Trading in the Company’s global depository receipts on the Main Market of the London Stock Exchange was suspended on 3 March 2022.
169
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023
GOVERNANCE CHANGES IN 2023
3 April 2023
James Schwab was elected to the
Board.
29 June 2023
The Annual General Shareholders
Meeting re-elected all Board members
except for Elena Nesvetaeva and
Timur Valiev and elected Anastasia
Gorbatova and Andrey Plugar.
Governance
Maintaining high standards of corporate governance
is key to attracting new investment, strengthening the
Group’s competitive position, and boosting shareholder
value. Good governance is based on the clarity of roles and
responsibilities, and the Company aims to ensure that its
governance procedures are applied at all levels of decision
making across the Group.
The Company’s corporate governance system outlines the
relationship between the Company’s shareholders, the Board,
and the CEO, as well as the roles and responsibilities of the
Board committees.
The Company’s Board of Directors is responsible to all of the
Group’s stakeholders for the strategic management of the
Company. The day-to-day management of the Company
falls within the remit of the CEO1. However, the Board retains
responsibility for the approval of certain matters which affect the
nature and profile of the Company’s risks (see details below).
In 2023, the Company did not record any:
GRI 2-27
z instances of unethical behaviour of Board members or
the CEO
GRI 2-15
z conflicts of interest involving Board members or the CEO
Corporate governance structure
GRI 2-9, 2-13
The Company’s corporate governance structure
includes the following key elements:
1. General
2. Board of Directors
3. CEO—sole
Shareholders
Meeting
executive body
Auditor’s report on the
Company’s financial
statements
RAS EXTERNAL AUDITOR
GENERAL SHAREHOLDERS MEETING
CORPORATE SECRETARY
Approval
Support for activities
Authorisation of
appointment
Reliable, unbiased,
and complete information
on the Company’s activities
Election
BOARD OF DIRECTORS
DIRECTOR OF THE INTERNAL
AUDIT DIRECTORATE
Accountability
Appointment
Implementation
of resolutions
Appointment
CEO
t
n
e
m
t
n
o
p
p
A
i
BOARD COMMITTEES
AUDIT AND RISK COMMITTEE
CORPORATE GOVERNANCE COMMITTEE
REMUNERATION COMMITTEE
NOMINATIONS COMMITTEE
COMPLIANCE COMMITTEE
HEALTH, SAFETY, AND ENVIRONMENT
COMMITTEE
s
n
o
i
t
a
d
n
e
m
m
o
c
e
r
d
n
a
s
r
e
t
t
a
m
i
f
o
w
e
v
e
r
y
r
a
n
m
e
r
P
i
l
i
1
The Charter contains the term “General Director”, which is used interchangeably with the term “CEO” in public disclosures made by the Company.
170
171
Appointments/instructions
Review of resolutions, preparation of
recommendations / implementation of resolutions
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023
Governance
General Shareholders Meeting
Report on meetings held during the year
The General Shareholders Meeting (the “GSM”) is the highest
governance body of the Company. The Charter details the
matters that fall within the remit of the GSM.
Resolutions of the GSM may be adopted either by holding
a meeting in person or by absentee voting.
In 2023, the Annual GSM of the Company was held on
29 June by absentee voting, attended by shareholders
holding 84.4105% of votes between them.
If the agenda of a GSM includes matters relating to the election
of the Board of Directors, approval of the Company’s auditor for
the accounting (financial) statements prepared in accordance
with Russian Accounting Standards (RAS), or approval of the
Company’s Annual Report and annual accounting (financial)
statements, it may only be held in person. However, due to
the COVID-19 pandemic, from 2021 to 2024, Russian joint
stock companies were allowed 1 to hold GSMs with the above-
mentioned agenda items by absentee voting.
An Extraordinary GSM may be held based on a resolution of
the Board either adopted on its own initiative or at the request
of a shareholder (shareholders) holding no less than 10% of
voting shares in the Company as at the date of the request.
An Extraordinary GSM convened at the request of a shareholder
(shareholders) holding no less than 10% of voting shares in the
Company shall be held within 50 days of the date of the request
to convene the extraordinary GSM.
Information (materials) to be provided to persons entitled to
attend the GSM should be made available no later than 20 days
before the GSM, and if the GSM agenda includes a proposed
reorganisation of the Company, no later than 30 days before
the GSM.
The Company’s shareholders holding in aggregate at least 2% of
voting shares in the Company may no later than 30 days from the
end of the reporting year propose items for the agenda of the
Annual GSM and candidates for election to the Board.
Voting at a GSM is conducted on the basis of the “one share,
one vote” principle. Resolutions are generally passed by
a simple majority of shareholders voting in favour of a motion
at the meeting, save for a number of matters which, under the
Charter, require a special resolution (i.e. voting by a 2/3 majority),
including:
z amendments and additions to the Charter or approval
of the restated Charter
z change in the Company’s status to non-public or obtaining
public status
z reorganisation of the Company by way of merger,
consolidation, spin-off, or transformation
z liquidation of the Company
z split, conversion, or consolidation of Company shares
z acquisition by the Company of outstanding shares
z increase or reduction in the Company’s share capital.
The GSM is quorate if attended by shareholders holding in
aggregate more than 50% of outstanding voting shares in the
Company.
If a quorum required for holding an Annual GSM is not met,
the GSM shall be reconvened at a later date with the same
agenda. If a quorum required for holding an Extraordinary GSM
is not met, the GSM may be reconvened at a later date with
the same agenda. A reconvened GSM is quorate if attended
by shareholders holding in aggregate no less than 30% of
outstanding voting shares in the Company.
Annual GSM
The Annual GSM must be convened by the Board of Directors
between 1 March and 30 June of each year, with the following
agenda items:
z The election of Board members
z The approval of the Company’s auditor for the accounting
(financial) statements prepared in accordance with RAS
z The approval of the Company’s Annual Report
z The approval of the Company’s annual accounting (financial)
statements
z The distribution of profits, including the payment
(declaration) of dividends, except for the payment
(announcement) of interim dividends
The Annual GSM considered and passed the following resolutions:
1. To approve the Company’s
4. To elect the Company’s
5. To approve Centre for Audit
Consolidated Annual Report 2022
2. To approve the Company’s
annual accounting (financial)
statements for 2022
3. Not to distribute
the Company’s net profit
for 2022 and not to pay
dividends on shares for 2022
Board of Directors, consisting
of 12 members, from the list
of candidates approved by the
Board:
Technologies and Solutions—Audit
Services as the Company’s auditor
for the accounting (financial)
statements prepared in accordance
with Russian accounting legislation.
Christopher Burnham
Lyudmila Galenskaya
Vadim Geraskin
Anastasia Gorbatova
Thurgood Marshall Jr.
Andrey Plugar
J. W. Rayder
Olga Filina
Zhanna Fokina
Andrey Sharonov
James Schwab
Andrey Yanovsky
1
In accordance with Federal Law No. 17-FZ dated 24 February 2021, Federal Law No. 25-FZ dated 25 February 2022, Federal Law No. 519-FZ dated 19 December 2022, and
Federal Law No. 625-FZ dated 25 December 2023.
172
173
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
Board of Directors
The Board adheres to the consistent approach that it aims to create a long-term value for
the Company by supporting the balance between short and long-term objectives.
BOARD RESPONSIBILITIES
BOARD COMPOSITION AND ATTENDANCE
AT MEETINGS
The matters specifically reserved for the Board under the
Charter include, inter alia, the following:
1. Determination of the priority areas for the Company’s
activities
2. Approval of the Company’s long-term strategy and
objectives, as well as its overall management mechanism
3. Day-to-day control over the implementation
of the Company’s long-term strategy and objectives
4. Approval of consolidated annual budgets and material
amendments thereto
5. Control over the Company’s core business, regular
evaluation of the Company’s performance in the context
of its long-term strategy and objectives, and discharge
of obligations contemplated by law and the Charter
6. Convening of Annual and Extraordinary GSMs
7. Establishment and termination of committees,
commissions, councils, and other structural units
of the Board of Directors, approval of their personnel
composition and regulations governing their activities
8. Approval of the Company’s internal documents (or making
amendments or additions thereto) on environmental
protection, insurance, and risk management
for the Company
9. Approval of the Company’s dividend policy
10. Approval of certain transactions with a value exceeding
75 USD mn
11. Approval of share incentive plans and schemes
for Company employees, as well as annual KPIs for the CEO
12. Approval of the Company’s auditors (for financial
statements prepared in accordance with IFRS or other
internationally recognised rules)
13. Approval of the Company’s register holder
14. Appointment of the Company’s sole executive body
(the CEO)
The Board of Directors has taken steps to ensure that Board
members (in particular, non-executive directors) develop a better
understanding of major shareholders’ views on the Company.
Directors, including the Chairman, have direct face-to-face
contact with shareholders at regular investor meetings.
As at 31 December 2023, the Board consisted of 12 directors,
including eight independent non-executive directors, one of
them being the Chairman of the Board, and four non-executive
directors. As at the date of this Report, the composition of the
Board remains the same.
The high level of professionalism and solid track record of
the Directors, coupled with a balanced Board composition,
are intended to enhance the Board’s performance.
GRI 2-10
The Nominations Committee proposes candidates to the Board
of Directors based on various factors, such as independence,
cultural and individual diversity, age, impeccable reputation, skills,
qualifications, personal experience, knowledge of the Company’s
core businesses and business specifics, and willingness to devote
sufficient time to discharging their duties as a Board member,
with account of the existing composition, succession planning,
and the needs of the Board and its committees. The directors’
job descriptions are drafted based on these criteria.
Independent directors help put together an objective view of
the Company’s business and the strength of its strategy, provide
constructive challenge, and bring to the Board and management
an unbiased perspective on the state of risk management and
internal controls, management’s performance, as well as the
strength of the Company’s financial model and policies.
SUSTAINABILITY
BIOGRAPHICAL DETAILS OF THE DIRECTORS
AS AT THE DATE OF THIS REPORT
Full biographies are available
on the Company’s website at
enplusgroup.com/en/company/
corporate-governance/
board-of-directors/
Committee
chair
A Audit and Risk
Committee
C Compliance
Committee
G Corporate
Governance
Committee
R Remuneration
Committee
H Health, Safety,
and Environment
Committee
N Nominations
Committee
A
THE HON.
CHRISTOPHER BURNHAM
GRI 2-11
Chairman of the Board,
Independent Non-Executive Director
Appointed: 27 January 2019
Appointed as Chairman of the Board:
25 March 2022
Christopher has a distinguished career
in government, diplomacy, banking, and
private equity. He is a globally recognised
expert on reporting and transparency,
having served as UN Under-Secretary-
General for Management, Under
Secretary of State for Management
(acting), Assistant Secretary of State for
Resource Management, and CFO of the
US Department of State.
Christopher serves as Chairman of
the Board of Directors and CEO at
Cambridge Global Capital, which he
co-founded. He is the former Vice
Chairman and Managing Director of
Deutsche Asset Management.
He completed Georgetown’s National
Security Studies Programme and
graduated from Washington and Lee
University and Harvard University,
where he earned an MPA in 1990.
C
R
OLGA
FILINA
Non-Executive Director
Appointed: 15 December 2021
H
G
N
ZHANNA
FOKINA
Independent
Non-Executive Director
Appointed: 26 May 2021
Olga has over 15 years of experience
in internal control and compliance
(including senior positions at Deloitte and
KPMG).
Her primary areas of focus include
complex fraud investigations, corruption
investigations (including financial
investigations and audits for compliance
with the US Foreign Corrupt Practices
Act (FCPA)), setting up and testing
compliance functions, hotline
outsourcing and support, and managing
internal audit and internal control
projects.
Before joining RUSAL, she worked at
Rosprirodnadzor (Federal Service for
Supervision of Natural Resources) and in
the pharmaceutical industry.
In 2009, she graduated from Siberian
Federal University.
Zhanna has an extensive track record in
environmental regulatory and supervisory
authorities.
Currently, she leads the environment
department at RUSAL Krasnoyarsk.
Zhanna is in charge of preparing
and approving environmental
reports, arranging for environmental
monitoring, overseeing the execution
of environmental initiatives, as well as
supporting and conducting government
environmental supervision activities.
174
175
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
H
N
C
LYUDMILA
GALENSKAYA
Independent
Non-Executive Director
Appointed: 18 May 2022
H
R
VADIM
GERASKIN
Non-Executive Director
Appointed: 8 February 2019
C
G
ANASTASIA
GORBATOVA
Non-Executive Director
Appointed: 29 June 2023
C
R
H
THURGOOD
MARSHALL JR.
Independent
Non-Executive Director
Appointed: 26 May 2021
Lyudmila started her career at Angarsk
Polymer Plant, leading a team of
150 people. After she moved from
Angarsk to Irkutsk, she secured
a new job at Irkutskenergo. Currently,
Lyudmila is responsible for ecology and
environmental protection as the Head of
the Environmental Safety and Rational
Use of Natural Resources Service at
Baikal Energy Company. She supports
all of the company’s environmental
activities, engages with government
authorities, and communicates with the
entire company and all its branches.
She ensures that the public is informed
about the company’s environmental
efforts and participates in environmental
events and discussions. She engages with
the media on environmental matters
and actively shares experience with all
environmental safety teams within the
Group. She is open to new ideas and
participates in developing new projects
and bringing them to life.
Vadim has extensive experience in
government relations at the national as
well as regional level.
Since September 2012, as the Deputy
CEO for Government Relations at Basic
Element, he has been heavily involved in
promoting the company’s socioeconomic
development programmes in the regions
where it operates.
Vadim led RUSAL’s Natural Monopolies
Administration for eight years before
joining Basic Element, and prior to that
he headed up RUSAL’s Transport and
Logistics Administration and Transport
Department. From 1997 to 2000,
he served as CEO of Zarubezhcontract,
a company focused on the non-ferrous
metals market. From 1993 to 1997,
he worked for AluminProduct.
Vadim graduated from Lomonosov
Moscow State University with a degree
in Physics.
She graduated with honours from the
International Law School of the Moscow
State Institute of International Relations
(MGIMO University).
Anastasia has a remarkable track record
with leading law firms, having acted
as an adviser to major Russian and
international companies on multi-billion-
dollar M&A, EPC, and corporate
finance deals, as well as capital markets
transactions.
Anastasia served on the Board of
Directors of EN+ GROUP IPJSC as a
non-executive director from 2019 to 2021
and is currently engaged in private legal
practice.
Тhurgood has extensive experience at the
intersection of law, business and politics.
Throughout his career, Thurgood has
served as a partner at an international
law firm, was a member of boards of
listed companies, and held a wide range
of positions in the US Government,
including Staff Director and Chief
Counsel to Senator Al Gore, Director of
Legislative Affairs and Deputy Counsel to
Vice President Al Gore.
Thurgood also practiced law in
Washington, DC, where he completed his
judicial clerkship.
He earned his Bachelor of Arts (BA)
in 1978 and a Juris Doctor (JD) degree
in 1981 from the University of Virginia.
C
ANDREY
PLUGAR
Non-Executive Director
Appointed: 29 June 2023
A
C
R
J. W. RAYDER
Independent
Non-Executive Director
Appointed: 25 May 2022
N
G
A
JAMES
SCHWAB
Independent
Non-Executive Director
Appointed: 3 April 2023
G
A
N
ANDREY
SHARONOV
Independent
Non-Executive Director
Appointed: 27 January 2019
Andrey has extensive experience in
international law and providing legal
advice on M&A transactions. He has led
investment (M&A) and legal departments
at major Russian companies with
diversified asset portfolios.
Andrey graduated from the International
Law School of the Moscow State
Institute of International Relations
(MGIMO University). He has a diploma of
international lawyer with knowledge of
foreign languages (English, French).
He currently heads the investment
department at Impulse Group, where
he manages investment projects and is
responsible for M&A transactions.
He graduated from University of
Arkansas (BSBA in Accounting, JD)
and Georgetown University Law Center
(LL. M).
J. W. Rayder has been involved in or
led significant corporate restructuring
projects, financings and M&A deals; he
also has a solid track record in negotiating
numerous power and natural gas supply
contracts on behalf of his clients.
He also advises clients on a myriad of
legislative, regulatory and transactional
matters related to energy markets and
federal taxation.
James has 30 years of general
management and private equity
experience across a variety of industries,
including logistics, the paper and
forest industry, telecommunications,
government, etc. He has held board
positions at CrimStone portfolio
companies, Western Marketing, Cimcon
Finishing, Waples Manufacturing and
Greenscape Landscaping.
James holds a Bachelor’s degree (with
distinction) in Mathematics from the
United States Naval Academy and a
Master of Business Administration (MBA)
from Harvard Business School.
Andrey is the CEO of the National ESG
Alliance, Chairman of the Board of
Directors of NefteTransService, and
member of the Board of Directors at the
Skolkovo Foundation and several other
organisations.
of the Board of Directors at Troika Dialog,
Deputy Mayor of Moscow for Economic
Policy, Chairman of the Regional Energy
Commission, and headed the Executive
Committees of the Moscow Urban Forum
and the Open Innovations Forum.
He was a People’s Deputy of the USSR,
Chairman of the State Committee for
Youth Affairs of Russia, a key figure at the
Ministry of Economic Development and
Trade, a Managing Director and Chairman
He graduated from Ufa State Aviation
Technical University and the Russian
Presidential Academy of Public
Administration and holds a PhD in
Sociology.
176
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STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
R
A
H
ANDREY
YANOVSKY
Independent
Non-Executive Director
Appointed: 25 September 2020
Andrey has been the CEO of the
European Medical Center and member of
its Board of Directors since 2014.
and Personnel at TNK-BP (2009–
2013), and Director for Strategy
and Organisational Development at
NefteTransService (2013–2014).
During his career, Andrey was the
CEO of the Coca-Cola Company
franchise in Russia, CEO of Nidan
Juices (2003–2009), Vice President
for Organisational Development
Andrey graduated from the Riga Higher
Military Political School and received
an MBA in Strategic Management from
Kingston University.
BIOGRAPHICAL DETAILS OF THE DIRECTORS WHO SERVED ON THE BOARD IN 2023 AND RESIGNED IN 2023
ELENA NESVETAEVA
Non-Executive Director
Appointed: 8 February 2019
Resigned: 29 June 2023
TIMUR VALIEV
Non-Executive Director
Appointed: 26 May 2021
Resigned: 29 June 2023
Elena has extensive experience working in
the investment and banking sectors.
She worked in the banking sector and for
a timber-processing holding company.
She currently heads the Investment
Department at Basic Element, which
she joined in 2009. At Basic Element,
she manages the company’s investment
projects and portfolio and is responsible
for driving the group’s investment
strategy, asset valuation, acquisition
projects and M&A transactions.
Elena graduated with distinction from
the Faculty of Economics of Syktyvkar
State University, the Academy of National
Economy under the Government of the
Russian Federation, and the Institute
of Business Studies with a degree in
Management.
Timur has extensive professional
experience in legal proceedings and
contract management, legal support of
M&A projects, and the creation of joint
ventures.
From 2013 to 2019, he held the position
of General Counsel of En+ Group.
Prior to his career at En+ Group, Timur
Valiev served as Director for International
Projects and M&A at Basic Element.
Prior to joining Basic Element, Timur
worked at the international law firm
Dewey & LeBoeuf, the legal department
of TNK-BP, and at a number of Russian
consulting firms.
Vadim graduated from Lomonosov
Moscow State University with a degree
in Law.
THE BOARD’S COLLECTIVE ESG KNOWLEDGE AND EXPERIENCE
Power
industry
Strategic
management
Occupational
health and
safety
Environmental
management
Legal and
corporate
governance
Ethics and
compliance
Risk
management
and audit
Christopher Burnham
Olga Filina
Zhanna Fokina
Lyudmila Galenskaya
Vadim Geraskin
Anastasia Gorbatova
Thurgood Marshall Jr.
Andrey Plugar
J. W. Rayder
James Schwab
Andrey Sharonov
Andrey Yanovsky
Distribution of members of the Board of Directors by key characteristics
33%
24%
17%
8%
34%
Gender
diversity 1
Age
diversity 1
17%
Board
independence1
67%
Male
Female
42%
35–45
46–55
56–65
65+
58%
Chairman
Independent directors
Non-executive directors
178
179
1 As at 31 December 2023.
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
THE BOARD’S FOCUS DURING THE YEAR
BOARD ATTENDANCE AND NUMBER OF MEETINGS IN 2023
AREA OF FOCUS
MATTERS CONSIDERED AND DECISIONS ADOPTED
Appointed on
Resigned on
Attendance 1
27.01.2019
15.12.2021
08.02.2019
29.06.2023
−
−
−
−
08.02.2019
29.06.2023
29.06.2023
−
11/11
11/11
11/11
6/6
5/5
26.05.2021
29.06.2023
5/5
26.05.2021
18.05.2022
26.05.2021
25.05.2022
03.04.2023
27.01.2019
25.09.2020
−
−
−
−
−
−
−
11/11
11/11
11/11
11/11
8/8
11/11
11/11
11
During 2023, the Board held 11 meetings, all by absentee voting.
Prior to the COVID-19 pandemic and the aggravated geopolitical
situation, the Board primarily discussed important sustainability
matters in person. Given the current circumstances, the Board
has reviewed such matters remotely via videoconference, where
each director could give comments, followed by absentee voting.
Chairman of the Board
Christopher Burnham
Non-executive directors
Olga Filina
Vadim Geraskin
Anastasia Gorbatova
Elena Nesvetaeva
Andrey Plugar
Timur Valiev
Independent non-executive directors
Zhanna Fokina
Lyudmila Galenskaya
Thurgood Marshall Jr.
J. W. Rayder
James Schwab
Andrey Sharonov
Andrey Yanovsky
Total number of meetings
100
%
Attendance at all meetings
of all Board of directors
GRI 2-16
Nature and number of critical issues brought escalated to the Board of Directors, %
Economic and financial matters
Approval of transactions
Social and environmental matters
Other
Corporate governance
12
12
10
2023
2022
2021
34
34
47
47
7
7
30
40
10
10
Strategy and risk
z The Board
z The Board approved
z The Board approved
preliminarily approved
theConsolidated Annual
Report 2023.
the Company’s
Development Strategy
2023.
the Company’s Business
Plan for 2024.
Sustainable
development
z The Board considered
the latest updates
on health and safety
matters and COVID-19.
z The Board took note
z The Board updated
the Company’s climate
ambitions.
z At its strategy session
in October 2023,
the Board reviewed
environmental
upgrades, infrastructure
projects, and digital
initiatives.
of the reports
of management and
committee chairs
covering, among other
things, performance
in occupational health,
industrial safety,
and environmental
protection;
the Company’s climate
goals; the status
of the environmental
and climate strategy
(including progress
towards net zero);
and the implementation
of the biodiversity
strategy.
Succession
and leadership
Corporate
governance
z The Board elected
z The Board updated
z The Board appointed
James Schwab as a new
Board member.
the composition and
appointed chairpersons
of all Board committees
after the Annual GSM.
a new CEO
of the Company.
z The Board approved
overall levels of D&O
(Directors and Officers)
liability insurance.
z The Board approved
z The Board approved
the results
of the assessment
of the 2022 KPI
achievement by
the CEO.
the CEO’s KPIs for 2024.
z The Board approved
the Board Chairman’s
KPIs for 2024.
Financial
performance
z The Board approved
the consolidated
interim condensed
financial statement
for the six months
ended 30 June 2023.
z The Board preliminarily
z The Board approved
approved
the Company’s annual
accounting (financial)
statements for 2022.
the IFRS consolidated
financial statements
for the year ended
31 December 2022.
1
The number of meetings attended / maximum number of meetings the Director could attend.
180
181
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023
Governance
RESPONSIBILITY STATEMENT
The members of the Board confirm that, to the best of their
knowledge:
z The consolidated financial statements, prepared
in accordance with IFRS as issued by the International
Accounting Standards Board and as adopted by the European
Union, give a true and fair view of the assets, liabilities,
financial position, and profit or loss of the Company and its
subsidiaries, taken as a whole.
z This Annual Report includes a fair review of the development
and performance of the business and the position
of the Company and its subsidiaries, taken as a whole,
together with a description of the principal risks and
uncertainties that they face.
DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE
The liability of all Board members related to the discharge of their
duties at the Company is insured under a D&O liability insurance
policy that covers any damage caused during the Directors’
tenure.
COMPARATIVE RESULTS
OF A SELF-ASSESSMENT SURVEY OF THE
MEMBERS OF THE BOARD IN 2021–2023
Section
Mandate
Strategy
Agenda
Leadership
Succession
Support
ESG
Total
Committee
Audit and Risk
Corporate governance
Nominations
Remuneration
Health, Safety and Environment
Compliance
BOARD PERFORMANCE EVALUATION
GRI 2-17
In 2023, the Company decided to engage an independent
consultancy to evaluate the Board’s performance.
TRAINING AND PROFESSIONAL DEVELOPMENT
OF BOARD MEMBERS
GRI 2-17
The Corporate Secretary runs the induction training programme
for new members of the Board of Directors and coordinates all
involved parties with the assistance of the Corporate Governance
Committee and the Nominations Committee.
As part of the training and professional development of its
members, the Board also conducts regular training sessions
on various matters, often led by external advisors. In October
2023, a planned training session on sanctions compliance was
delivered.
New Directors take induction training upon their appointment.
The key elements of the programme include, inter alia:
GRI 2-18
As at the date of this Report, the Company has adopted
a procedure for evaluating the performance of Board members,
the Board of Directors, and its committees.
z meetings, in person or remotely, with the CEO, the Chairman
of the Board of Directors, the Corporate Secretary,
management team, and/or heads of corporate business units
z familiarisation with operations, including site visits
to the Group’s production facilities with operational and
management briefings and meetings with local management
teams
z provision of Board information packages, including internal
reporting documents for previous periods
z provision of internal documents and Q&As with
the management team
z attending meetings of all Board committees as invitees
z mandatory training, including by external advisors, on matters
relating to insider trading, disclosures, and compliance with
sanctions.
Energized for action
2021–2022
2022–2023
Δ
Value (5-max) 1
SCALE
4.69
4.58
4.61
4.93
4.25
4.82
4.62
4.64
4.80
4.45
4.50
4.78
5.00
4.65
4.66
4.70
4.83
4.98
4.50
4.91
4.78
4.77
4.85
4.70
4.90
4.64
4.96
4.82
−0.03
0.12
0.22
0.05
0.25
0.09
0.16
0.13
0.05
0.25
0.40
−0.14
−0.04
0.17
If the overall component score
is ≥4,6 – excellent/effective.
The component corresponds to the
best practice in most of the estimated
parameters.
If the overall component score
is ≥4,3 <4,6 good/effective.
The component is generally consistent
with good practices. Some aspects
require adjustments and can be
inproved.
If the overall component score is
≥3,9 <4,3 – satisfactory/ineffective.
Most aspects of the component do not
comply with good practices and require
adjustments.
If the overall component score is
<3,9 – critical. Urgent intervention and
significant changes are required.
The assessment was carried out by an independent
consultant RosExpert, a Russian consulting company that
specializes in the assessment, formation and development
of management teams, and has been operating in
the market of Russia, Turkey and the CIS countries
for more than 20 years. The evaluation methodology
included individual interviews, processing of self-
assessment questionnaires for members of the Board and
benchmarking with relevant international companies.
All 12 members of the Board took part in the self-
assessment and interviews with representatives of the
independent consultant.
Consultants note the high level of organization of the
work of the Board and its committees, the high quality
and timeliness of the materials presented, the active
participation of members of the Board in all meetings,
the organizing role of the Chairman of the Board and the
professional work of the corporate secretary’s office.
The composition of the Board is sufficient in number
to ensure work on the committees of the Board, and is
balanced in terms of the set of professional competencies.
The agenda for the meetings of the Board is balanced and
corresponds to the role of the Board as a strategic and
supervisory body for the management of the company 1.
Analysis of the results of self-assessment of members
of the Board demonstrated stable and improving
performance of the Board and its committees compared
to the previous year.
The results of the Board evaluation showed the following
positive aspects:
z the Company’s commitment to high standards
of corporate governance;
z attention to the analysis of production and
financial results of the company’s activities and
risk management, including compliance with
the requirements of regulators and exchanges;
z active interaction of the Board with executive
management.
Based on the results of the evaluation, the Board
identified a number of areas for further improvement,
including increasing attention to new technologies,
succession planning and professional development of
members of the Board, strengthening the role of the
Board in matters of sustainable development and social
responsibility.
1
Taking into account the topics of meetings of committees of the Board of directors, discussions at the in-person strategic session and discussion of the regular
report of management at each meeting of the Board of directors.
182
183
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
SHARE DEALING CODE
Upon admission to the Main Market of the London Stock
Exchange in November 2017, the Company adopted a code for
dealing in securities regulating the trading of its GDRs, ordinary
shares, and any other securities of the Company, which is
based on the requirements of EU Market Abuse Regulation
No. 596/2014. This code applies to the directors and other
relevant employees of the Group (to the extent it does not
contradict the Charter and applicable UK and Russian law
provisions).
SHAREHOLDINGS OF DIRECTORS
As at the date of this Report, none of the Directors directly
or indirectly hold shares in the Company or concluded any
transactions with Company shares.
SHAREHOLDINGS OF THE CEO
AND MANAGEMENT TEAM
As at the date of this Report, neither the CEO nor members of
the management team directly or indirectly hold any shares in
the Company. In 2023, neither the CEO nor members of the
management team concluded any transactions with Company
shares.
CONFLICTS OF INTEREST AND LOANS ISSUED
TO MEMBERS OF THE BOARD AND THE CEO
In 2023 and up to the date of this Report, the Company
has not been aware of any conflicts of interest affecting any
member of the Board or the CEO (including in connection with
their participation in governance bodies of the Company’s
competitors).
In 2023, no loans were issued by the Company (or any Group
company) to members of the Board or the CEO.
Sole executive body—CEO
Under the Charter, the CEO acts as the sole
executive body of the Company.
The CEO is appointed by the Board for a period of five years
unless another term of office is established by the Board.
The CEO is responsible for overseeing the Company’s day-to-day operations and holds all powers falling outside the exclusive
competence of the GSM and the Board of Directors, including, inter alia:
acting on behalf
of the Company without
a power of attorney
(including representing
the Company and entering
into transactions on its
behalf)
1
passing resolutions
to establish branches and
representative offices
of the Company
issuing powers of attorney,
authorising their holders
to represent the Company
2
3
Currently, the CEO position is held by Mikhail Khardikov
MIKHAIL
KHARDIKOV
CEO
On 20 December 2023, the Board of
Directors resolved to appoint Mikhail
Khardikov as the Company CEO for
a period of three years starting from
1 January 2024.
CEO as at 31 December 2023
VLADIMIR
KIRYUKHIN
CEO
Appointed: 1 November 2018
Joined the Group: January 2000
Mikhail graduated from the Academy of
National Economy under the Government
of the Russian Federation and the
Russian Presidential Academy of Public
Administration and holds a postgraduate
degree in Economics.
He has a Letter of Gratitude from the
President of Russia and a Certificate
of Merit from the Russian Ministry of
Energy.
Mikhail joined EuroSibEnergo (part
of En+ Group) in 2010 as Director for
Investor Relations, then held the position
of Director for Corporate Finance
from December 2012 to June 2014.
In July 2014, Mikhail was appointed as
CFO of the Company, and in 2018, he
became the CEO of EuroSibEnergo.
In 2019, he stepped up to the position
of Deputy CEO, CFO of En+ Group, and
in December 2022, he was appointed as
Group’s COO.
Prior to joining the Company, Mikhail held
various positions at Russian metals and
energy companies, including OGK-3, HC
Metalloinvest, and Bashkirenergo.
Vladimir oversaw the Company’s long-
term strategy, business development,
and engagement with key partners
and external stakeholders, including
regulators.
Vladimir’s long track record at En+ Group
includes roles such as the CEO of
EuroSibEnergo, senior positions at
Russian Aluminium and MAREM+,
Chairman of the Boards of Directors at
Irkutskenergo and Krasnoyarsk HPP,
and member of the Board at RUSAL.
He graduated from the All-Union
Institute of Interindustrial Information
with a PhD in Engineering.
184
185
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
Corporate Secretary
Pursuant to the Regulations on the Corporate Secretary, the Corporate Secretary of the
Company is responsible for ensuring the Company’s efficient ongoing communication with
shareholders, coordinating the Company’s activities to protect the rights and interests of
shareholders, and supporting the effective operation of the Board and Board Committees.
The functions of the Corporate
Secretary include:
participating in preparation
and holding of GSMs
supporting the activities of
the Board and the Board
Committees
Board committees
OVERVIEW
As at the date of this
Report, the Board
has established six
Committees to assist it in
exercising its functions:
1. Audit and Risk Committee
2. Remuneration Committee
3. Compliance Committee
4. Corporate Governance Committee
5. Nominations Committee
6. Health, Safety, and Environment
Committee
All the Committees are advisory bodies,
whose primary function is to make
recommendations to the Board on the
matters within their remit.
On 29 June 2023, the compositions
of the Committees were reshuffled.
Information on each Committee is
detailed below.
All Board members attended at
least 95% of meetings of the Board
Committees.
1
2
Committees attendance and number of meetings in 2023 1
implementing the Company’s
disclosure policy and
ensuring the storage of
the Company’s corporate
documents
liaising between the
Company and its
shareholders and preventing
corporate conflicts
improving the Company’s
corporate governance system
and practices
3
4
5
SERGEY MAKARCHUK
Corporate Secretary
Appointed as Secretary
of the Board of Directors:
10 April 2019
Appointed as Corporate Secretary
of En+ Group:
14 November 2019
The Corporate Secretary can be
contacted by e-mail
CS@enplus.ru
Following stints at various law firms,
Sergey worked for RUSAL Group in
2007–2010 at the Corporate Governance
Department of RUSAL Global
Management B.V., managing corporate
legal proceedings at Group entities and
providing support to the RUSAL Board
of Directors and Board Committees.
He was also involved in RUSAL’s IPO
on the Stock Exchange of Hong Kong
and NYSE Euronext. From 2011 to 2013,
Sergey was Deputy Director of the
Corporate Governance Department at
TNK-BP Management.
After the acquisition of TNK-BP by
Rosneft, he stayed on as Deputy Head
of the Foreign Assets Department
and Project Director of the Corporate
Governance Department.
Sergey graduated from Lomonosov
Moscow State University with a degree in
Law in 2004.
Audit and Risk
Committee
Compliance
Committee
Corporate
Governance
Committee
Health,
Safety, and
Environment
Committee
Nominations
Committee
Remuneration
Committee
Chairman of the Board
Christopher Burnham
6/6
Non-Executive Directors
Olga Filina
Vadim Geraskin
Anastasia Gorbatova
Elena Nesvetaeva
Andrey Plugar
Timur Valiev
Independent Non-Executive Directors
Zhanna Fokina
Lyudmila Galenskaya
Thurgood Marshall Jr.
J. W. Rayder
James Schwab
Andrey Sharonov
Andrey Yanovsky
6/6
3/3
6/6
6/6
1/1
2/2
1/1
1/1
1/1
2/2
2/2
Total number of meetings
6
2
3/3
5/5
5/5
2/2
5/5
5
1/1
1/1
2/3
2/3
4/4
4/4
4/4
4
1/1
1/1
1/1
1/1
1/1
1
5/5
5/5
5/5
5/5
5/5
5
186
1
The number of meetings attended / maximum number of meetings the Director could attend.
187
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
Audit and Risk Committee
COMPOSITION
Pursuant to the revised Regulations on the Audit and Risk
Committee, approved by the Board on 23 June 2022,
the Committee consists of members considered by the Board
to be independent, as defined in the Listing Rules of Moscow
Exchange. The Committee meets at least once per quarter of
the Company’s financial year.
THE CURRENT COMPOSITION OF THE
AUDIT AND RISK COMMITTEE IS AS
FOLLOWS:
1. J. W. Rayder, as Chairman
2. Christopher Burnham
3. James Schwab
4. Andrey Sharonov
5. Andrey Yanovsky
The responsibilities of the Audit and Risk Committee include, inter alia, the following:
1. Overseeing the integrity, completeness, accuracy,
7. Monitoring and assessing any important new systems
and reliability of the Company’s financial statements and
the Group’s consolidated financial statements
(including IT systems) and ensuring that related controls are
adequate, reliable, and effective
2. Reviewing material aspects of the accounting policies
8. Ensuring that the internal audit function is independent
at the Company and its subsidiaries to ensure that they are
fit for purpose and consistently applied
and unbiased
3. Reviewing the Company’s Annual Report (including
the annual consolidated financial statements) and making
recommendations to the Board on its contents
9. Evaluating the performance of the internal audit function
10. Monitoring the performance of the whistleblowing system
for reporting potential wrongdoing by Group employees or
third parties and other irregularities within the Group
4. Reviewing material matters and judgments (including
significant financial reporting estimates and judgements)
regarding the Company and its consolidated financial
statements
GRI 2-5
5. Monitoring the adequacy, reliability, and effectiveness
of operation of the Group’s risk management and internal
control systems
6. Reviewing and assessing the implementation of risk
management and internal control policies to ensure that risk
management and internal control systems are adequate and
operating effectively
The Audit and Risk Committee is also responsible for reviewing
the effectiveness of the external audit process, in conjunction
with other Board committees.
In 2023, the Committee held six meetings. The agenda included
financial statements, internal audit reports, work plan for 2024,
external audit reports, and internal control and risk management
reports.
AUDITOR’S REMUNERATION FOR AUDIT
AND NON-AUDIT SERVICES
For the year ended 31 December 2023, the accured fees
for audit and non-audit services provided by the Group’s
external auditor, B1, totalled as follows:
Power segment
Metals segment
En+ Group
USD mn1
RUB mn %
USD mn
RUB mn1 %
USD mn
RUB mn %
0.5
0.2
0.7
65
35
39.3
21.0
60.3
4.1
1.1
5.2
78
22
345.5
96.3
441.8
4.6
1.3
5.9
78
22
384.8
117.3
502.1
Audit services
Non-audit services
Total fees paid to the
audit firm1
Corporate Governance Committee
COMPOSITION
Pursuant to the Regulations on the Corporate Governance
Committee, approved by the Board on 1 December 2020,
the majority of Committee members are independent
directors as defined in the Listing Rules of Moscow Exchange.
The Committee meets at least three times a year.
The Committee’s primary role is to oversee the Company’s and
the Group’s corporate governance matters.
THE CURRENT COMPOSITION OF THE
CORPORATE GOVERNANCE COMMITTEE
IS AS FOLLOWS:
1. Andrey Sharonov, as Chairman
2. Zhanna Fokina
3. Anastasia Gorbatova
4. Andrey Plugar
5. James Schwab
The Corporate Governance Committee is responsible for the following:
1. Setting the Group’s priorities in corporate governance
2. Assessing the Company’s corporate governance system
and values for alignment with its goals and objectives,
the scale of its business, and risk profile
In 2023, the Corporate Governance Committee held one meeting
to approve the Company’s D&O liability insurance.
188
1 Calculated based on the average USD/RUB exchange rate of RUB 85.25 per USD in 2023.
189
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
Nominations Committee
COMPOSITION
Pursuant to the Regulations on the Nominations Committee,
approved by the Board on 1 December 2020, Committee
members are independent directors as defined in the Listing
Rules of Moscow Exchange. The Committee meets at least three
times a year.
The Committee’s primary role is to develop recommendations
to the Board of Directors on Board performance evaluation and
planning internal appointments.
THE CURRENT COMPOSITION OF THE
NOMINATIONS COMMITTEE IS AS
FOLLOWS:
1. James Schwab, as Chairman
2. Zhanna Fokina
3. Lyudmila Galenskaya
4. Andrey Sharonov
The primary responsibilities of the Nominations Committee include, inter alia, the following:
1. Running a detailed formal process to conduct an annual
self-evaluation and external performance evaluation
of the Board, its members, and the Board Сommittees,
and determining priority areas to strengthen the Board
5. Determining the independence of Board members
6. Taking part in the regular advanced professional training
of Board members
2. Commissioning external performance evaluations
7. Reviewing the Company’s current and expected needs
of the Board, its members, and the Board Сommittees
3. Engaging with shareholders (including minority
shareholders) to develop recommendations to shareholders
regarding voting in Board elections
4. Planning appointments, including to ensure CEO succession,
making recommendations to the Board regarding
candidates for the Corporate Secretary role (or the unit head
acting as the Corporate Secretary) and recommendations
regarding candidates for the roles of the head of the Internal
Audit Service and the CEO of the Company
in terms of professional qualifications of the Company’s CEO
to support the Company’s continued competitiveness and
future growth, and ensuring succession planning for this role
The Nominations Committee met five times during 2023 to
consider the proposed appointment of James Schwab to the
Board, the appointment of Mikhail Khardikov as the Company’s
CEO, and the Company’s Regulations on Performance Evaluation
of the Board of Directors.
Compliance Committee
COMPOSITION
GRI 2-15
The Compliance Committee was set up after the Company was
removed from OFAC’s SDN List. The Committee holds meetings
at least once per quarter of the Company’s financial year.
THE CURRENT COMPOSITION OF
THE COMPLIANCE COMMITTEE IS AS
FOLLOWS:
1. Thurgood Marshall Jr., as Chairman
2. Olga Filina
3. Lyudmila Galenskaya
4. Anastasia Gorbatova
5. J. W. Rayder
The primary responsibilities of the Compliance Committee include, inter alia, the following:
1. Driving the build-out of the Group’s compliance
management system
2. Contributing to the development of the Company’s policies
and other internal regulations concerning compliance,
and consistently identifying compliance requirements
3. Ensuring adequate compliance controls are in place
at the Group
4. Conducting due diligence in the event of any reasonable
doubt regarding the observance of compliance
requirements and the provisions of compliance documents
Health, Safety, and Environment Committee
COMPOSITION
The Health, Safety, and Environment Committee meets at least
once per quarter of the Company’s financial year.
The Compliance Committee reviews its own performance and
reassesses the adequacy of regulatory compliance procedures
and guidelines.
In 2023, the Committee held two meetings and reviewed regular
Company compliance reports, as well as compliance with the
terms of removal from OFAC’s SDN List given the current
geopolitical situation.
THE CURRENT COMPOSITION OF THE
COMMITTEE IS AS FOLLOWS:
1. Zhanna Fokina, as Chairwoman
2. Lyudmila Galenskaya
3. Vadim Geraskin
4. Thurgood Marshall Jr.
5. Andrey Yanovsky
The primary responsibilities of the Health, Safety, and Environment Committee include, inter alia, the following:
1. Exploring leading international research studies and
5. Monitoring the Company’s compliance with international
best practices in health, safety, and environment, and,
if necessary, assessing their impact and preparing respective
strategy recommendations to the Board in relation
to the Group
2. Preparing recommendations to the Board on formulating
Group strategies, policies, and instructions on health, safety,
and environment
3. Contributing to the development of the Company’s
policies and other internal documents on health, safety,
and environment
4. Preparing recommendations to the Board on possible
discussions, cooperation, and consultations on health,
safety, and environmental matters with government
authorities, NGOs, and other companies or associations
standards, applicable laws, and the Company’s internal
documents on health, safety and environment
6. Benchmarking the Group’s occupational safety and
environmental performance against global best practices,
and reviewing the results of such benchmarking exercises
In 2023, the Health, Safety, and Environment Committee
held five meetings and reviewed regular HSE reports, the
environmental and climate strategy development updates,
the Company’s environmental risk management status,
performance against HSE KPIs in 2023 and target KPIs for
2024, the biodiversity strategy update, and En+ Group’s HSE
roadmap for 2024.
190
191
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Governance
Remuneration Committee
COMPOSITION
The majority of the Remuneration Committee’s members are
independent directors. The Committee meets at least three
times during the Company’s financial year.
THE CURRENT COMPOSITION OF THE
REMUNERATION COMMITTEE IS AS
FOLLOWS:
1. Andrey Yanovsky, as Chairman
2. Olga Filina
3. Vadim Geraskin
4. Thurgood Marshall Jr.
5. J. W. Rayder
The responsibilities of the Remuneration Committee include, inter alia, the following:
1. Developing and intermittently revising the Company’s
remuneration policy for Board members, the CEO,
the Corporate Secretary, and the Head of the Internal Audit
Service, as well as setting the parameters of short-term
incentive programmes
2. Supervising the adoption and implementation
of the remuneration policy and various incentive
programmes at the Company, and revising the policy
and programmes as and when necessary
3. Conducting preliminary year-end performance evaluation
of the CEO against established remuneration criteria,
and a preliminary review of the CEO’s progress against
the targets of the long-term incentive programme
4. Developing recommendations to the Board on the amount
of remuneration and the bonus eligibility criteria
for the Company’s Corporate Secretary, conducting
a preliminary year-end performance evaluation
of the Company’s Corporate Secretary, and submitting
proposals for bonus payments to the Company’s Corporate
Secretary
5. Supervising the disclosure of remuneration policies and
procedures and the ownership of Company shares by
Board members and the person acting as the CEO both
in the annual report and on the Company’s website.
GRI 2-20
In 2023, the Remuneration Committee met four times to
review the CEO’s KPIs and the remuneration arrangements for
the CEO appointed from 1 January 2024.
Remuneration report
Remuneration policy objectives
GRI 2-19
Our remuneration policy is based on the following principles:
Attract, remunerate,
and retain skilled talent
supporting the achievement
of the Company’s strategic
goals
Maintain the right balance
between the Company’s
short-term operating results
and long-term goals
Create value for our
shareholders, given the risks
that may impact the variable
component of remuneration
1
2
3
Stakeholders are not involved in determining remuneration.
The Company’s remuneration system is driven by its internal
regulations. The Remuneration Committee, which is majority
comprised of independent directors, oversees the remuneration
policy for the Board and the CEO in line with stakeholders’
interests. The Remuneration Committee may engage external
independent advisers when reviewing certain remuneration
aspects within its remit.
REMUNERATION STRUCTURE
The Group’s remuneration structure is designed to ensure
a balance between attracting and retaining high-calibre
leaders and the interests of our shareholders. The established
remuneration system comprises fixed and variable components.
The fixed component consists of base salary, which is set in
line with the market to retain key executives, and reflects the
qualifications, experience, scope of responsibility, personal
achievements, and other characteristics of each manager.
The variable component consists of annual bonuses and may also
include one-off payments, bonuses for meeting KPIs, and other
payments linked to KPI achievement.
REMUNERATION OF KEY EXECUTIVES 1
In 2023, the remuneration of key executives, including the CEO,
amounted to USD 11.7 million, including a base salary of
USD 6.0 million and bonuses of USD 5.7 million.
Remuneration of key executives
Total remuneration of key executives,
including the CEO
Base salary
Bonuses
2021
USD mn
15.4
8.2
7.2
2022
USD mn
11.6
6.2
5.4
2023
USD mn
11.7
6.0
5.7
192
193
1 Accrual basis.
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023
Governance
Remuneration structure for key executives
Remuneration component
Approach
Links to metrics
Base salary
Base salary is determined
by the employment
contract concluded with
each member of the
Group’s management team
and is aimed at attracting
and retaining high-calibre
professionals
Not applicable
The salary level is set to ensure
competitive pay vs Russian and global
industry peers. The fixed remuneration
component reflects the qualifications,
scope of responsibility, personal
achievements, and professional
experience of the respective manager
Benefits
Provided to encourage
strong job performance
by reimbursing additional
job-related expenses
The Company ensures a competitive,
comprehensive benefits package for its
employees, covering their meal costs
and health insurance and providing addi-
tional payments
Pension
Pension contributions
We do not pay any other pension
contributions or retirement benefits,
except for the mandatory contributions
to the Pension Fund of the Russian
Federation as required by Russian law,
which entitles retiring employees to a
fixed monthly pension for life from the
state pension fund
Annual bonus
z The bonus is paid for meeting
individual KPIs
Not applicable
No changes
during the year
Not applicable
No changes
during the year
Examples:
z Financial performance: adjusted EBITDA,
No changes
during the year
Encourages focus on the
Group’s strategic goals
Additional payments and
benefits
Optional bonus payments
for achieving targets other
than KPIs for the relevant
year
Remuneration of other risk
takers
Attracts and retains
high-calibre professionals
z KPIs for the CEO are set by
free cash flow
the Remuneration Committee and
approved by the Board
z KPIs are set at the beginning of each
financial (calendar) year
z HSE and sustainability: lost time
injury frequency rate (LTIFR), zero
environmental incidents, accidents,
or violations
z KPIs are regularly reviewed and
z Strategy: achievement of strategic
updated to ensure that they align
with the Group’s goals
goals and successful implementation
of development projects
z Other objectives: in accordance with
the manager’s area of responsibility
Paid for achieving results that are
important for the Company but not
included in KPIs
Task-specific
No changes
during the year
z Top managers of En+ Group
z Aligned with the Group’s executive
subsidiaries are considered risk takers
remuneration structure
No changes
during the year
z The Group’s executive remuneration
policy applies
REMUNERATION OF BOARD MEMBERS
In 2019, the Board considered and approved the base levels of
compensation for Board members.
z EUR 26,000 (about USD 28,000)1 gross per annum
for chairing a committee or other structural unit of the Board
All members of the Board, except for the Chairman, are entitled
to a remuneration of EUR 215,000 (about USD 249,000)1 gross
per annum, paid monthly.
z EUR 18,000 (about USD 19,000)1 gross per annum
for membership in each committee or other structural unit
of the Board
All members of the Board of Directors are entitled to additional
remuneration for serving on a committee or other structural unit
of the Board 2:
The aggregate remuneration of Board members in 2023
amounted to USD 10.0 million, excluding social insurance
contributions 3.
Key changes
during the year
No changes
during the year
Remuneration of the Board of Directors
Total remuneration of the Board of Directors,
excluding social insurance contributions4
2021
USD mn
10.3
2022
USD mn
6.1
2023
USD mn
10.0
Remuneration structure for the Board of Directors
Remuneration component
Approach
Links to metrics
Compensation for Board membership
Remuneration of Board members (excluding
the Chairman of the Board) is determined so
as to ensure competitive pay vs other listed
peers
Not applicable
Key changes during
the year
No changes during
the year
Additional remuneration of Board
members (excluding the Chairman
of the Board)
For serving on / chairing Board
committees in addition to remuneration
paid to Board members
Pension
Pension contributions
Members of the Board receive fixed pay for
serving on / chairing a Board committee
Not applicable
No changes during
the year
We do not pay any other pension contributions
or retirement benefits, except for the
mandatory contributions to the Pension Fund
of the Russian Federation as required by
Russian law, which entitles retiring employees
to a fixed monthly pension for life from the
state pension fund
Not applicable
No changes during
the year
194
195
1 Calculated based on the EUR/USD exchange rate of 1.09 as at 30 December 2023.
2 Members of the Corporate Governance Committee (including the Chairman) are not remunerated for membership (chairmanship) in the Committee if they sit
on the Nominations Committee of the Board and receive relevant remuneration for serving on (chairing) the Nominations Committee of the Board at the same time.
3 Mandatory payments (pension contributions, compulsory health insurance, etc.) as required by Russian law.
4 Calculated based on the EUR/USD exchange rates of 1.16 in 2021, and 1.06 in 2022, 1.09 in 2023..
5 Mandatory payments (pension contributions, compulsory health insurance, etc.) as required by Russian law.
STRATEGIC REPORTSUSTAINABLE DEVELOPMENTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023
Information for shareholders and investors
Ordinary shares and global depositary receipts
As at 31 December 2023, En+ Group’s share capital was
divided into 638,848,896 ordinary shares with a par value of
USD 0.00007 each.
The Company’s ordinary shares are traded on the Moscow
Exchange’s Level One Quotation List under the ticker ENPG.
En+ Group’s GDRs, each representing one ordinary share,
are listed on the London Stock Exchange (LSE) under the ticker
ENPL. Since 3 March 2022, the London Stock Exchange has
suspended trading in securities of most Russian companies,
including En+ Group.
On 16 April 2022, Federal Law No. 114-FZ On Amendments
to the Federal Law On Joint Stock Companies and Certain
Legislative Acts of the Russian Federation came into force,
requiring Russian companies to initiate the termination of
deposit agreements for their GDR programmes. In May
2022, En+ Group applied to the Government of the Russian
Federation for permission to continue trading its GDRs
outside Russia. On 19 May 2022, the Company received such
permission, which is effective until 7 November 2024, inclusive.
On 14 July 2022, Federal Law No. 319-FZ On Amendments to
Certain Legislative Acts of the Russian Federation came into
effect. The law provides for two mechanisms for converting
Russian companies’ GDRs into shares: automatic conversion
upon the issuer’s request and forced conversion upon the GDR
holder’s request.
On 18 August 2022, En+ Group initiated the automatic
conversion process by notifying its depositary, AO Citibank.
The automatic conversion covered only the GDRs recorded
with Russian depositaries. With respect to the GDRs recorded
with foreign depositaries, the law provided for forced
conversion at requests submitted by GDR holders to the
depositary.
GRI 2-1
The Company’s management is not aware of any shareholders
owning more than 5% of the Company’s share capital, apart
from those listed below.
RUB 281
Market capitalisation of En+
at the end of 2023
bn
Depositary bank
Registrar
The Company’s depositary bank is Citibank N.A., with the
registered office at 388 Greenwich Street, New York,
New York 10013, United States of America.
The Company’s registrar is Joint Stock Company
Interregional Registration Center (the “IRC”).
Citibank N.A. contact details:
Citibank, N.A.
+1 (212) 723-54-35
CitiADR@Citi.com
IRC contact details:
JSC IRCs
+7 (495) 234-44-70
info@mrz.ru
www.mrz.ru
En+ Group’s international securities identification numbers
London Stock Exchange
Moscow Exchange
Rule 144A GDRs
Regulation S GDRs
Ordinary shares
Ticker
ISIN 4
ENPL
ENPL
US29355E1091
US29355E2081
Ticker
ISIN 4
ENPL
RU000A100K72
Common Code5
171560667
170465199
CUSIP6
29355E109
29355E208
Instrument
Trading platform
Bloomberg code
GDRs
London Stock
Exchange
ENPL LI
Ordinary shares
Moscow Exchange
ENPG RM
En+ Group shareholding structure and voting rights, as at 31 December 2023
21.37 %
44.95 %
9.95 %
7.04 %
14.33 %
35.00 %
1
196
2
13.95 %
13.95 %
10.55 %
3.42 %
3.22 %
2.53 %
10.55 %
6.64 %
2.53 %
1
2
SHAREHOLDINGS
VOTING RIGHTS
Mr Deripaska3
SFO 2
Public float
Glencore
Other shareholders
Volnoye Delo
Mr Deripaska3
Independent trustees1
Chairman of the Board
Independent trustee1
Public float
Glencore
Former family members
Independent trustee1
Former family members
Note:
Percentages may not total 100
due to rounding.
1
Independent trustees exercising voting rights
over certain Company shares.
2 Shares initially purchased from VTB by
an En+ Group subsidiary, as reported
by the Company on 6 February and
12 February 2020, and later (on 26 October
2023) acquired from the En+ Group subsidiary by
a Special Financial Organisation (SFO), an orphan
entity registered in Russia and not affiliated with
En+ Group. Voting rights in respect of the 14.33%
shareholding are held by an independent trustee,
while the remaining voting rights in respect
of 7.04% of shares are exercised by the Chairman
of the Board at the Board’s direction.
3 Directly or indirectly. According to the agreement
between the Company and OFAC, the major
shareholder’s equity cannot exceed 44.95%,
and its voting rights cannot exceed 35%.
4 An International Securities Identification Number
(ISIN) is a code that uniquely identifies a specific
security.
5 A Common Code is a nine-digit identification code
issued jointly by CEDEL and Euroclear.
6 A Committee on Uniform Security Identification
Procedures (CUSIP) number is an identification
number assigned to the issue of shares
to facilitate clearing.
197
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENTGovernance
Governance
En+ Group share performance and trading volumes
Dividend payments
Moscow Exchange
Trading volume, ths shares (RHS)
Share price, RUB per share (LHS)
RUB per share
600
500
400
300
200
100
0
In 2023, the Company’s GSM did not approve any dividend
distributions. The Company anticipates that dividend payments
will resume once market conditions permit.
Ths shares
3000
Disclosure
2500
2000
1500
1000
500
0
The Company places a particular emphasis on making relevant
information readily available to both shareholders and analysts
simultaneously, in accordance with applicable provisions
of Russian law and disclosure requirements of the Moscow
Exchange, UK Market Abuse Regulation (UK MAR)3, and the
FCA’s Disclosure Guidance and Transparency Rules (DTRs).
Information is distributed through the following channels:
z The Moscow Exchange and LSE Regulatory News Service
(RNS): the Company’s price-sensitive information is disclosed
through disclosure systems
Diversity
The Board of Directors Diversity Policy can
be downloaded from our website
z The Company’s website: the Company publishes releases
on key events as well as operating and financial results
z The Company’s webpage on the Russian regulatory newsfeed
(Interfax Corporate Information Disclosure Centre).
https://enplusgroup.com/en/
sustainability/esg-policies/
The Company is strongly committed to promoting a diverse and
inclusive workforce and recognises and embraces the benefits of
having a diverse Board to enhance the quality of its performance.
In 2020, En+ Group approved the Board of Directors Diversity
Policy, which aims to set out the Company’s approach to
promoting and maintaining Board diversity.
January
2023
February
2023
March
2023
April
2023
May
2023
June
2023
July
2023
August
2023
September
2023
October
2023
November
2023
December
2023
Source: Moscow Exchange
The Board recognises the desire of stakeholders to have greater
diversity in senior management and on boards across the Group.
In 2023, En+ Group’s ordinary share price on the Moscow
Exchange increased from RUB 380.5 as at 3 January 2023 to
RUB 440.2 as at 29 December 2023.
En+ Group’s market capitalisation rose from RUB 243 billion
at the beginning of the year to RUB 281 billion at the end of
2023. The average daily trading volume during the year was
312,000 ordinary shares.
Share repurchases
During the reporting period, the Company did not, either itself or
through a person acting in their own name but on the Company’s
behalf, repurchase any of the Company’s own shares, and did
not, either itself or through a person acting in their own name but
on the Company’s behalf, hold any shares in treasury.
Inclusion
En+ Group aims to create an environment of inclusion where
everyone is treated without discrimination.
We are working to ensure equal opportunity in recruitment,
promotion, training, and reward for all employees, regardless of
ethnicity, national origin, religion, gender, age, sexual orientation,
marital status, disability, or any other characteristic protected by
applicable laws.
In the unfortunate event that existing employees should become
disabled, our ambition is to provide continued employment,
training, and occupational assistance where needed.
Dividend policy
The Regulations on Dividend Policy can be
downloaded from our website
https://enplusgroup.com/en/
investors/corporate-documents/
The Investor Relations Department can be contacted
with any queries at ir@enplus.ru.
Email
On 14 November 2019, the Board of Directors approved the
Regulations on Dividend Policy, providing that when determining
the amount of dividend recommended to the GSM, the Board of
Directors should calculate the dividend amount as follows:
z one hundred per cent (100%) of dividends received
from RUSAL (as long as the Company remains a RUSAL
shareholder), and
z seventy-five per cent (75%) of free cash flow 1 in the En+ Group
Power segment 3, but in any event, at least USD 250 million
per year.
1
Free cash flow, for any period, means the cash flows generated from operating activities less net interest paid, capital expenditures, restructuring fees, and other costs related
to share issuance, adjusted for settlement payments under derivative financial instruments, plus dividends from associates and joint ventures.
The En+ Group Power Segment is a segment defined in the Group’s IFRS consolidated statements.
2
3 Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse, as retained in the domestic law of the United Kingdom by virtue
198
199
of the European Union (Withdrawal) Act 2018.
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Governance
Internal control and risk management structure
The Board of Directors has responsibility for overseeing the
efficiency of the Group’s financial and business operations,
including reviewing and maintaining effective and adequate
internal control and risk management systems.
GRI 2-13
The Board of Directors has established the Audit and Risk
Committee, which is tasked with aiding the Board in reviewing
the Group’s financial statements, ensuring the adequacy and
efficiency of internal control and risk management systems,
supervising both internal and external audit processes, and
discharging other functions as mandated by the Board of
Directors.
The Internal Audit Directorate (IAD), operating independently
from management and reporting directly to the Audit and Risk
Committee of the Board of Directors, assists in supervising the
Group’s financial and business operations and its internal control
and risk management systems.
The Internal Audit Directorate consistently updates the Audit and
Risk Committee on the outcomes of both planned and ad-hoc
audits, highlighting any gaps identified in the internal control
system, recommending corrective actions to management,
specifying identified risks and their financial impacts, and
presenting developed mitigation measures.
Internal control system
The Group has established a comprehensive internal control
system (ICS) to safeguard its assets, improve business processes,
and ensure compliance with applicable laws and local regulations
throughout its operations.
The IAD seeks to ensure that a robust system of internal controls
is in place in the Group through:
z operational and financial control
z compliance control
z business process institutionalisation
z implementation of ICS enhancement projects.
The IAD conducts comprehensive audits and verifications in
accordance with the annual audit plan approved by the Audit
and Risk Committee. Furthermore, acting on management’s
instructions, the IAD arranges unscheduled inspections
employing a risk-based approach, including providing an
independent opinion.
During compliance control procedures, the IAD assesses the
Group’s adherence to the requirements of state supervisory
bodies and the Company’s internal regulations.
To mitigate the risks of losses and violations of standardised
processes and ensure unified control over business processes,
the IAD actively monitors the existing internal control system
regulating the development of regulatory documents and
initiates updates to uniform standards for commercial
operations.
Refining the negotiation process and broadening the competitive
landscape have fostered a more robust commercial environment
as part of the procurement oversight exercised by the IAD.
Internal control and risk management
INTERNAL REGULATIONS
z Corporate Code of Ethics
z Anti-bribery and Corruption Policy
z Regulations on Risk Management
z Policy on Conflict of Interest
z Sanctions Policy
MATERIAL TOPICS
z Corporate governance
In a bid to improve the Group-wide
risk management system,
heads of companies / business
units have been tasked with
ensuring comprehensive risk
reporting and maintaining timely
oversight over the development
and implementation of risk
mitigation measures.
GOALS
STATUS
PROGRESS made in 2023
z Deploy an automated risk
z Achieved
z ARMS implemented
management system (ARMS) across
En+ Group companies
z Implement commercial
z Achieved
efficiency measures to drive out
the risk of overcharging as part
of procurement risk management
z Assess the risk identification
z Ongoing
completeness
z Assess procedures for monitoring
the execution of risk mitigation
measures
z Ongoing
z Cost reduction for procuring
services, construction and
installation works, and essential
goods and materials was achieved
by refining the negotiation process
and broadening the competitive
landscape as part of the procurement
function oversight
z Identifying risks omitted from
the Risk Map during the audit
of Group companies and ensuring
the development of relevant
mitigation measures
z Assessing the effectiveness
of controls in place to execute
measures for minimising or
eliminating risks (as part of Group
companies’ audit)
200
201
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT TRAINING IN RISK MANAGEMENT
To foster a robust risk management culture, employees and
managers take training and courses that equip them with the
requisite knowledge and practical skills to analyse, assess,
and manage various types of risks.
EN+ GROUP’S KEY BUSINESS RISKS
The Group’s primary risks encompass those that could hinder
the Company’s objectives and shareholder value creation or
potentially lead to significant reputational harm. To prevent
or minimise potential damage, the Company is enhancing
response measures tailored to the nature and magnitude of each
identified risk.
The impact of a risk is determined by evaluating both its
likelihood and the financial damage from its realisation. A higher
probability corresponds to a more significant potential impact.
The most critical risks are those with a high likelihood and
significant potential financial damage.
The Company takes risk management very seriously, including
for sustainability risks, and continuously analyses market
trends, economic developments, and regulatory requirements
to promptly identify and effectively manage potential risks.
In managing risks, the Company endeavours to consider
stakeholder needs and concerns when evaluating the Group’s
economic, environmental, and social impacts.
Sustainability risks significantly impact the Company’s business
model, operations, and key financial metrics. The Company
acknowledges these risks and implements corrective measures,
demonstrating a responsible approach to the environment,
people, and the economy. This approach enables the Company
to enhance its competitiveness in the market and foster
a favourable perception of the Group among stakeholders.
Governance
Approach to risk management
The Company maintains a risk
management system (RMS) integrated
into its internal control system (ICS)
and corporate governance framework.
This system helps reduce the likelihood of
non-compliance with corporate governance
standards and drives the steady and
sustainable growth of the Group’s
business.
GRI 3-3
The Company’s risk management processes are driven by the
precautionary principle applied across all facets of the Group’s
operations. The risk management system provides for the
identification, assessment, and ongoing monitoring of risks and
their status. It also includes the analysis of internal and external
risk drivers.
The Company’s risk management process is governed by the
Regulations on Risk Management. This document sets forth
uniform standards and fosters effective collaboration among all
stakeholders involved, including to reduce the Group’s impacts
on the environment, people, and the economy.
RISK MANAGEMENT PROCESS
GRI 2-12, 2-13, 2-16
The Audit and Risk Committee reports to the Board of Directors
and ensures the effective operation of the RMS. It monitors
the integration of risk management objectives into the Group’s
overall goals, evaluates progress against them, and participates
in reviewing and approving the risk map and risk mitigation
measures. The Audit and Risk Committee conducts quarterly
reviews of materials detailing the status of risk management,
provides general oversight of the RMS operation, and supervises
both external and internal audits.
The IAD continuously consolidates the Group’s risks and
evaluates the effectiveness of the RMS as part of its audit
efforts. Risk owners are responsible for identifying risks,
overseeing the development and execution of risk mitigation
measures, and monitoring their implementation. Risk supervisors
compile information from individual business units and furnish
a consolidated risk map to the IAD.
GRI 2-12, 2-13
The Group adheres to a practice of routinely reporting on risk
monitoring measures.
To enhance risk management’s effectiveness, objectives in this
area are integrated into the key performance indicators (KPIs)
of both management and relevant employees.
1
2
3
4
RISK
IDENTIFICATION
RISK
ASSESSMENT
Defining and
describing a risk
Analysing a risk, its
impacts, and how
it may affect the
Group’s operations
DEVELOPING, IMPLEMENTING,
AND OVERSEEING RISK
MANAGEMENT MEASURES
Developing, implementing, and
overseeing risk management
measures to mitigate their
impacts on the environment,
people, and the economy
MONITORING
Supervising the
process of identifying,
assessing, and
monitoring risk
management
measures
The risk management process commences with setting the
Company’s business objectives. The Company manages
risks vertically, with risks to business processes identified at
the individual facility level and subsequently aggregated at
the Company level. The procedures and responsibilities of
the process stakeholders are outlined in the Regulations on
Risk Management and other internal documents.
GRI 2-25
Through continuous risk identification, the Company can
proactively identify potential threats to its operations and
promptly develop measures to mitigate the negative impacts
of risk realisation.
The Company routinely analyses significant factors and
monitors regulatory changes at both international and national
levels. During strategic planning, business planning, and risk
management, the Company evaluates how external and internal
factors impact its key risks.
The IAD conducts quarterly monitoring of risk status, including
analysing changes during the reporting period, reviewing the
ongoing relevance of financial risk assessments, the likelihood of
their materialisation, and the progress of mitigation measures,
as well as assessing whether the new risks that emerged during
the quarter were promptly identified.
202
203
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT203 Governance
Key risks of the Company
HIGH
1
2
3
Environment risks ↗
Laws and regulations risks ↗
Market risks ↗
MEDIUM
4
6
Geopolitical risks ↗
Maintance risks ~
Force-majeure risks ~
10
IT security& resilience risks ~
Legal risks ~
11
Financial risks ↗
Commercial and project risks ↗
5
7
8
LOW
9
Health and safety risks ~
12
Climate-related risks ~
Description
Change in
2023
Mitigation measures
EXTERNAL AND MARKET RISKS
1 Environment
Risk of negative impacts stemming from legislative
initiatives and law enforcement practices on the
Company’s day-to-day operations. Extension of new legal
requirements to existing facilities. Tougher sanctions for
regulatory non-compliance and delayed acquisition of
permits
Risk of sanctions or fines resulting from soil, water, or air
pollution due to equipment failure or human error
↗
Robust operation of the environmental management
system
Consistent application of Environmental Policy provisions
Environmental auditing and monitoring of operating
processes
Engagement with national and local governments on
developments in environmental laws
Board approval of the updated Climate Strategy to 2035
with a Vision until 2050
Continued implementation of the strategy to achieve
net-zero GHG emissions
Risk impact on the Company’s operations
High
Medium
Low
Change in 2023
↗
Higher impact
~
No change
Description
Change in
2023
Mitigation measures
2 Laws and regulations
Impact of legislative changes or their enforcement,
both domestically in Russia and internationally,
encompassing antimonopoly and tariff regulations,
licensing and permits, and environmental and HSE
regulation
↗ Monitoring changes in the regulatory frameworks
Engagement with the regulatory authorities
Monitoring risks and conducting market research, business
planning, and scenario analysis
Using derivative financial instruments for partial hedging of
market risks
Expanding customer portfolio, expanding product range to
diversify sales, and boosting sales in alternative markets
Promoting highly competitive low-carbon metal and
electricity
Monitoring geopolitical situation and relevant risks
Developing and implementing risk mitigation measures,
which include elaborating various scenarios, implementing
counterparty KYC procedures, identifying alternative
suppliers, buyers, and carriers, exploring possible
replacements for imported equipment, seeking alternative
sources of financing, etc.
Protecting the Company’s interests through legal means
3 Market: supply, demand, and commodity price volatility
Business impact of fluctuations in supply, demand, and/or
commodity prices critical to the Group’s operations:
METALS SEGMENT
aluminium, alumina, bauxite, energy (primarily natural gas)
POWER SEGMENT
electricity prices (long-term contracts, day-ahead market)
USA/EU and global recession risk
↗
4 Geopolitical
Risks of an adverse business impact in the event of new
economic restrictions imposed by foreign governments,
affecting:
↗
z сompany share price
z equipment deliveries, leading to the postponement
of investment projects and/or increased capital
expenditures
z capital flows and the Group’s ability to secure
currency-denominated credit facilities
z sales mix and volumes, leading to delayed customer
payments
z tougher export controls for certain types of goods,
works and services, including high-tech
z ability to have unlimited access to software and
hardware
Risks of negative impacts on the operations of the Metals
segment across multiple countries (such as Guinea,
Australia, Sweden, Germany, and others), including raw
material security and supply chain risks
5 Force-majeure: natural disasters, large-scale accidents, epidemics, etc.
Risks of substantial damage to operating facilities and
suspension or shutdown of operations at the Company’s
enterprises due to natural disasters, epidemics, and
terrorist attacks
~
Scenario planning and developing early-response measures
encompassing a range of organisational and practical
actions to ensure asset safety
204
205
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Timely maintenance and repairs/overhauls of equipment;
upgrades to operating facilities
Financial implications resulting from market volatility in
foreign exchange rates and interest rates
Searching for alternative suppliers of imported equipment
Tax risks
Governance
Key risks of the Company
Description
Change in
2023
Mitigation measures
BUSINESS AND OPERATIONAL RISKS
6 Maintenance
Equipment operation risks involve potential equipment
failures leading to financial losses, lower productivity,
or the halt of operating facilities, including situations where
repair plans are not fulfilled due to failures or longer lead
times for imported equipment and materials
7 Legal
Risks of potential losses arising from the enforcement of
judgments on claims
8 Commercial and project
Risks of disruptions in supply chains for goods and
raw materials: sale of products from metallurgical and
coal businesses relies on railway infrastructure with its
uncertain availability pattern
Pricing risks: monopolistic pricing in the transportation
market and regulatory pricing in the electricity market
Risks of time or budget overruns for projects
~
~
↗
Legal defence against claims
Negotiating with claimants
Negotiating with suppliers and broadening the pool of
potential suppliers
Monitoring lead time and investment contract
performance
Entering into long-term contracts with formula pricing
mechanisms
Making spot purchases subject to economic viability
Continuous monitoring of alternative markets
9 Health and safety
Workforce or contractor injury due to human error,
equipment failure, or workplace configuration, given the
endemic risks within the Power and Metals segments
relating to major accident hazards and asset integrity
~
Managing dedicated units tasked with developing
regulatory documentation, conducting staff training,
and overseeing compliance with requirements for complex
and hazardous works
OHS compliance checks by regulatory authorities such
as Rostechnadzor, Rospotrebnadzor, etc. during both
scheduled and unscheduled inspections
Risk impact on the Company’s operations
High
Medium
Low
Change in 2023
↗
Higher impact
~
No change
Description
FINANCIAL RISKS
11 Financial
Change in
2023
Mitigation measures
↗
Ongoing monitoring of the Company’s financial position
Ensuring compliance with the terms of loan agreements
with banks, including regular monitoring of financial
covenant compliance
Coordination of tax planning and oversight of tax
assessments and payments
Implementing partial hedging of currency risks,
continuously monitoring and adjusting cash flow, and
diversifying the debt portfolio and foreign-currency
deposits
CLIMATE-RELATED RISKS
12 Transition risks
Financial or reputational impact due to policy, legal,
technology, and market changes
12 Physical risks
Negative impacts on operations stemming from climate
change, including fluctuations in water supply and
temperature variations
~
~
Constant monitoring of policy, legal, technology,
and market changes
Business and scenario planning; climate research and
analysis
Incorporating climate-related risks and regional
considerations into R&D and investment projects
For more details on climate-related risks, see the
Climate Change and Energy management section
on page 94-95.
10
IT security and resilience
Risks of data loss or IT infrastructure damage stemming
from hacker attacks or malware intrusion
Risks of malfunctions in automated information control
and management systems at major industrial facilities
(HPPs, CHPs, etc.)
206
~
Testing the IT infrastructure for security vulnerabilities
Using uniform policies and procedures to ensure safety
PLANS FOR 2024
AND BEYOND
The Company continues to evaluate potential risks and
analyse the impact of various micro- and macroeconomic
conditions on its future financial position and operating
results in 2024 and beyond.
2024
207207
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT GRI 2-23
En+ Group fosters a cohesive corporate
culture embraced by all employees and
creating an environment of mutual respect,
trust, and transparency.
At the heart of our business lies a strong commitment to the
highest legal and ethical standards, as formalised in our Code of
Corporate Ethics. The Company upholds a zero-tolerance policy
for any form of harassment or discrimination in the workplace.
We expect all Company representatives to uphold our values and
ethical standards in everything they do.
The Code of Corporate Ethics outlines the fundamental values,
principles, and standards of business conduct expected from
both employees and members of the Board of Directors. It
addresses various issues arising in relationships with employees,
third parties, customers, and government authorities.
Additionally, it encompasses principles related to occupational
health, safety, environmental protection, effective ways of
working, confidentiality, control and reporting procedures,
and conflict of interest management. The Code of Corporate
Ethics is available in both Russian and English on the Company’s
corporate website.
Governance
Corporate ethics and compliance
INTERNAL REGULATIONS
z Corporate Code of Ethics
z Anti-bribery and Corruption Policy
z Policy on Human Rights
z Diversity and Equal Opportunities Policy
z Sanctions Policy
MATERIAL TOPICS
z Business ethics
> 80
%
of employees trained on anti-corruption
374
оmployee reports received
by the Signal hotline in 2023
GOALS
STATUS
PROGRESS made in 2023
z Have the Company listed
z Achieved
in the consolidated register
of signatories to the Anti-Corruption
Charter of Russian Business and
conduct an independent assessment
of the anti-corruption management
system to verify compliance with
the ISO 37001:2016 criteria
z The Company has been included
in the register of signatories
to the Anti-Corruption Charter
of Russian Business. The assessment
yielded an AA+ class rating, indicating
a robust level of anti-corruption
z Ensure that at least 80% of Group
employees take remote learning
courses on corporate ethics and
anti-corruption
z Achieved
z At the end of 2023, over 90%
of Group employees have completed
corporate ethics and anti-corruption
training
z Develop a training course tailored
z Achieved
for ethics officers across the Group’s
subsidiaries
z The course has been developed and
uploaded onto a unified learning
platform, ready for future launch
208
209
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Governance
Corporate compliance system
GRI 2-13, 2-24
En+ Group remains committed to enhancing its corporate compliance system by
incorporating current legal requirements, recommendations from regulatory bodies,
specific industry requirements, and best practices. The Group is focused on driving
the continuous improvement of existing processes and implementing new ones.
The Compliance Committee of the Board of Directors ensures control and continuous
improvement of the Group’s compliance management system.
Anti-corruption and corporate ethics compliance
STATEMENT FROM CHRISTOPHER BURNHAM,
CHAIRMAN OF THE BOARD OF DIRECTORS
SASB EM-MM-510a.1
The Company maintains a zero tolerance policy for any
form of corruption. The Company continuously strives
to foster a culture of zero tolerance for corruption based
on high ethical standards and implements measures to
maintain an environment of trust, mutual respect, and
integrity.
The Board of Directors is responsible for ensuring
compliance with the Policy on Human Rights. Twice
a year, the Compliance Committee of the Board of
Directors meets in person to review the report on
implemented and planned measures, analyse the
effectiveness of compliance system management
in general and the anti-corruption programme in
particular, thus ensuring the alignment between the
Company’s strategy, risk management principles, and
anti-corruption policy.
SASB EM-MM-510a.1
En+ Group implements all necessary measures to adopt best
practices in combating corruption and consistently upholds
high standards of responsible and ethical conduct. We strictly
comply with the legal requirements of the countries where we
operate, including Federal Law of the Russian Federation
No. 273-FZ dated 25 December 2008 On Combating
Corruption, the UK Bribery Act of 2010, and the US Foreign
Corrupt Practices Act (FCPA).
GRI 205-1
As part of its comprehensive risk management system,
the Company assesses and manages corruption risks.
The Group seeks to eliminate any compliance risks within the
Company and in its dealings with counterparties.
GRI 2-24
The Company has approved the Anti-bribery and Corruption
Policy and the Policy on Conflict of Interest both at the Group
and subsidiary levels and implemented regulations outlining
the tasks, roles, responsibilities, and authority of ethics
officers across the Group’s entities.
In 2023, the Company became a signatory to the
Anti-Corruption Charter of Russian Business and was included
in the annual Anti-Corruption Ranking of Russian Business,
confirming its compliance with the Charter’s rigorous
standards and principles. Independent experts assessed
our anti-corruption management system for compliance
with ISO 37001:2016 and the principles outlined in the
Anti-Corruption Charter. The assessment yielded an AA+ class
rating, indicating a robust level of anti-corruption.
En+ Group consistently improves current and introduces new
measures to combat corruption. Particular focus is directed
towards conflicts of interest, as they can increasingly become
a catalyst for corruption offences. En+ Group employs an
electronic system for the annual collection of conflict-of-
interest declarations. This solution assists ethics officers in
identifying potential conflicts of interest within the Group’s
subsidiaries and generating reports based on the declarations
received. As an additional precaution, we conduct quarterly
public-source reviews of all new hires to identify potential
conflicts of interest. The Company has established protocols
for identifying and investigating business ethics violations,
with the findings used to inform corrective measures.
Compliance with insider trading laws
As a company whose financial instruments are traded
on securities markets in Russia and the UK, En+ Group
is subject to regulations on the unlawful use of insider
information and market manipulation. The Board of
Directors has approved the Regulation on the Information
Policy and the Regulation on Insider Information.
These Regulations, as well as a number of additional
internal documents, define the procedure for using
insider information, rules for protecting its confidentiality,
and control over compliance with the requirements of
applicable laws. They aim to ensure fair pricing of financial
instruments and protect the rights and property interests
of all En+ Group stakeholders. The Group has approved the
list of insider information and maintains the insiders’ roster.
It has also configured timely disclosure procedures and
established appropriate internal controls.
Sanctions compliance
En+ Group seeks to minimise the risk of international
sanctions as far as possible by putting in place and
continuously enhancing an appropriate compliance
programme. The Board of Directors has approved the
Sanctions Policy to ensure compliance with relevant
provisions and minimise sanctions risks for En+ Group,
its officers, directors, and employees.
Employee education
and training
GRI 2-24
In 2023, we continued to use all available communication
channels to educate employees on the Company’s ethical
standards and strategies for combating corruption and
conflicts of interest. Upon employment, the Company
educates employees on its internal documents relating to
business ethics. In addition to educating employees on its
policies and Code of Corporate Ethics, En+ Group offers
training sessions covering various aspects of business
ethics.
LIST OF DOCUMENTS
FOR REVIEW
Corporate Code
of Ethics
1
Anti-bribery and
Corruption Policy
Policy on Conflict
of Interest
2
3
MANDATORY
COURSES
Corporate ethics
course
673
instances of potential
conflicts of interest
were examined by
The Ethics Committee
Anti-corruption and prevention of
conflict of interest course
1
2
27
of which, based on the results
of risk assessment, were resolved
>80
%
of employees trained on anti-corruption
210
211
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
Governance
Counterparty engagement
GRI 2-23
GRI 415-1
Maintaining business reputation is integral to our sustainability
agenda. Therefore, in addition to fostering responsible business
practices, we seek to partner with companies committed to
a high level of transparency and possessing a solid business
reputation. As part of its commitment to ethical business
conduct, En+ Group has established Supplier Standards,
which formalise the Group’s expectations for responsible
business conduct, quality assurance, and sustainability.
The Company has in place a KYC procedure whereby data for
each counterparty are assessed for compliance risks, leading to
the assignment of a risk label to counterparties. Following the
assessment, En+ Group develops and implements measures to
mitigate the identified risks.
The Company abstains from providing financial support to
political parties, their candidates, or representatives both
in Russia and abroad and avoids exerting direct or indirect
influence on political figures.
GRI 206-1
In the reporting period, no lawsuits were filed or pending
against the Company for obstruction of competition or
violation of antitrust laws.
In the reporting period, no violations of the Code of Corporate
Ethics by Board members were recorded.
En+ Group includes an anti-corruption clause and details about
the Signal hotline into all its contracts with counterparties.
GRI 205-3
100
%
of security staff were briefed on the Policy on
Human Rights.
In the reporting period, no contracts with business partners
were terminated following the identification of corruption
violations.
No violations of the rights of Russia’s indigenous minorities
were recorded during the reporting period.
The Signal hotline
GRI 2-25, 2-26
En+ Group operates the 24/7 Signal hotline for employees
and other stakeholders to report incidents related to
ethics violations, corruption, and other unfair practices.
Any stakeholder may contact the hotline confidentially
and anonymously. The Company has approved the Hotline
Regulation governing the procedures for recording,
processing, and storing report-related data.
For each report received, steps are taken to ascertain
facts. This involves conducting interviews with employees
or witnesses, analysing internal documents, and reviewing
procurement documents with the assistance of the security
and internal audit teams.
The Group’s ongoing awareness campaign aims to promote
this communication channel and engage all stakeholders
in the continuous improvement process to build a uniform
culture.
The decline in reports to the Signal hotline is attributed to our
ongoing awareness drive to communicate its purpose and
promote the hotline as a complementary tool within a wider
strategy of raising awareness of issues. The decrease can also
be explained by a larger number of communication channels
now available to employees.
Actions taken by the Company in response to reports include:
z analysing verification findings and developing
recommendations to correct malfunctioning processes/
regulations, followed by monitoring implementation
z organising a refresher training course on corporate ethics
and conducting face-to-face meetings with ethics officers
to clarify the Company’s stance on corporate ethics
in interactions with colleagues/counterparties
z disciplinary sanctions
z other measures consistent with applicable laws.
Employee reports received via Signal, quantity
Specific reports. Metals
Non-specific reports. Metals
Specific reports. Power
Non-specific reports. Power
Subjects of specific reports received via Signal, 2023, %
Labour relations
Asset safety
Counterparty engagement
HSE issues
Other
2023
2022
2021
21%
8%
273
96
5
303
92
3
420
192
127
52
374
398
791
9%
14%
47%
212
213
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT GRI 2-29
En+ Group is committed to transparent engagement
with its stakeholders. To achieve this, the Company
employs a mix of communication channels to take
into account stakeholder interests and expectations,
placing a particular emphasis on feedback. We also
monitor actual and potential negative impacts of our
operations, striving to minimise them.
En+ Group’s stakeholder engagement is governed
by its Stakeholder Engagement Policy, designed
to achieve three main objectives: pursuing every
opportunity to build mutually beneficial partnerships,
maintaining respect for all stakeholders, and
proactively preventing or resolving conflicts through
a collaborative effort. The Policy sets forth procedures
and mechanisms for engaging with stakeholders,
and the Company’s responsibilities in this area.
En+ Group’s methodology for identifying stakeholder
groups includes the following criteria:
z En+ Group’s significance for stakeholders
z stakeholders’ significance for En+ Group
z engagement frequency
z the impact of the Company’s operations
on stakeholders
z the stakeholders’ impact on the Company’s
operations.
Governance
Stakeholder engagement
INTERNAL REGULATIONS
z Stakeholder Engagement Policy
MATERIAL TOPICS
z Corporate governance
18
facilities
within the Company’s Metals segment have successfully
obtained certification to ASI standards
GRI 3-3
GOAL
STATUS
PROGRESS made in 2023
z Ensuring an adequate level
z Achieved
of disclosure
z The Company has delivered an
adequate level of disclosure
En+ Group publishes the annual
Communication on Progress
report under the UNGCP initiative
ESG II-b
(or ESG-A on the Bank of Russia’s scale)
ESG rating was assigned to En+ Group
by the Expert RA rating agency
214214
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT215215215 Governance
GRI 2-13, 2-25, 2-26, 2-29, 3-3
Stakeholder engagement
On a regular basis
Scheduled calendar meetings
Upon request
Stakeholder interests
and expectations
Engagement methods
Responsible unit
and engagement
frequency
Value created for
stakeholders in 2023
Stakeholder interests
and expectations
Engagement methods
Responsible unit
and engagement
frequency
Value created for
stakeholders in 2023
Associations and initiatives
z Improving the transparency of aluminium
production processes
z Transitioning to the production
of low-carbon aluminium
z Raising demand for low-carbon
aluminium
z Developing and rolling out standards
to mitigate negative environmental
impact, and foster responsible and
transparent business practices
Customers and suppliers
z Participation in meetings
z Facilitating discussions and
collaborative decision-making process
within En+ Group through various
communication channels
z Preparation of annual reports
z Participation in working groups and
committees
z Information events
z Joint events
Directorate for
International
Cooperation
Sustainable
Development
Directorate
A separate category,
Baikal Without Plastic,
has been approved as
part of En+ Group’s grant
competition
For more details,
see page 219.
z Transparency and openness in reporting
and strategy, environmental and social
responsibility
z Regular meetings
z En+ Group’s participation
in dedicated forums and conferences
Customers
Sales and Marketing
Office
62%
share of purchases from
local suppliers
z Distributing information about
z Verifying the financial, tax, and
the Company’s product range, pricing,
and product markets
z Contract support and prompt decisions
reputational status of suppliers,
accompanied by mandatory technical
audits
Suppliers
Commercial
Department
1.3 million tonnes of
ALLOW low-carbon
aluminium sold
For more details,
see page 224.
on new contracts
En+ Group employees
z Safe working conditions and fair
remuneration
z Compliance with labour laws
z Achieving equality and diversity
z Supporting labour rights
z Voluntary ESG accreditation
z Providing information as and when
required
z Joint events
z Intranet portal for employees
z Employee satisfaction surveys
z Signal corporate hotline
z Liaising with work councils and ethics
officers
z Regular open discussions involving
the Company’s management
z Provision of social benefits and
medical care
z Housing support (private housing
projects, mortgage)
HR Administration
Corporate
Communications
Department
85% employees covered
by collective bargaining
agreements
79.8% employee
satisfaction
For more details,
see page 151.
Government authorities
z Strong operational, environmental and
z Facilitating access and providing
social performance
z Regulatory compliance
necessary information to supervisory
bodies as outlined in the Barker Plan
z Email communication, official
correspondence
z Participation in workshops, round
tables and ministerial, interagency,
and regional meetings
Government
Relations
Department; heads
of regional units
42 RUB bn
(491 USD mn)
of mandatory payments
made
For more details,
see page 330.
Non-profit organisations (NPOs) and local communities
z Effective sustainable development
z Participation in dedicated forums and
programmes
conferences
z Increasing the number and transparency
of environmental projects by providing
detailed information, including
quantitative data, for all project stages
z Increasing the number of jobs available
to local communities
z Providing information as and when
required
z Mandatory disclosures through
the Company’s reports
z Annual community surveys
z Holding public events
z Grant competitions to support local
NPO initiatives
z Annual public consultation to discuss
the reports related sustainable
development topics
z Consideration of applications through
public receptions
5.3 RUB bn
(USD 62.3 mn)
invested in social
development
21 projects
approved for
support in
Environmental project
grant competition
For more details,
see page 153.
NPO
Corporate
Communications
Department
Sustainable
Development
Department
Local communities
Corporate
Communications
Department
Committees on
Social Investments
Metal and stock exchanges
z Raising demand for low-carbon
z Participation in meetings and joint
aluminium
discussions
z Preparing financial statements and
z Participation in conferences and
Strategy and
Capital Markets
Department
corporate governance information in line
with stock exchange requirements
z Transparency and openness in ESG
reporting, strategy, and information
forums
z Providing information as and when
required
z Submitting regular reports detailing
the Company’s performance
Financial and non-financial
disclosures to increase
transparency and ensure
compliance with stock
exchange requirements
For more details,
see page 214.
Rating agencies (including ESG rating agencies)
z Increasing the transparency
z Providing information as and when
of environmental, social and governance
disclosures
required
z Mandatory disclosures through
z Development of corporate policy and
the Company’s reports
procedures
z Publishing official press releases
on the Company’s website
Shareholders, investors, and financial analysts
z Strong and sustainable financial
performance
z Share price performance
z Short-term and long-term Company
z Regular electronic communications
z Publication of mandatory periodic
reports
z Official press releases on various
development strategy
events
z Compliance with disclosure and
z Mandatory issuer disclosures
corporate governance requirements
Strategy and
Capital Markets
Department
ESG II-b or ESG-A—
ESG rating assigned by the
Expert RA rating agency
Strategy and
Capital Markets
Department
14.7%
adjusted EBITDA margin
216
217
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
Governance
GRI: 2-28
Promoting the
sustainability agenda
Partnerships and
collaborations
En+ Group strives to set an example for other market participants and promote diverse
sustainability aspects both domestically and internationally. The Company believes that by
fostering collaboration and partnerships, even the most ambitious global challenges can be
successfully solved.
ORGANISATION
EN+ GROUP ROLE
Promoting the
sustainability agenda
En+ Group actively contributes to the advancement of both national and
international sustainability agendas.
ORGANISATION
EN+ GROUP ROLE
National ESG Alliance
United Nations Global
Compact (UNGC)
Business 20, B20
En+ Group is one of the founding members of the National ESG Alliance, a business
association dedicated to driving ESG transformation. En+ Group Director for Sustainable
Development serves as the head of the ESG-Alliance Climate Working Group.
At En+ Group’s initiative, the ESG-Alliance organised a Business Contribution to Climate
Projects session on the sidelines of the 28th Climate Conference of the Parties to
the UNFCCC (COP-28). Climate verifiers from India and Qatar took part in the panel
discussion.
The United Nations Global Compact (UNGC) is the largest international initiative for
businesses committed to sustainable development. Starting from 2019, En+ Group has
been publishing an annual Communication on Progress report detailing its efforts within
the United Nations Global Compact Principles (UNGC). Additionally, En+ Group specialists
actively participate in events hosted by the UNGC.
En+ Group is also involved in the activities of the UNGC Network Russia, with the
Company’s Director for Sustainable Development serving on its governing council.
En+ Group and RUSAL are among companies preparing policy recommendations on
climate change, carbon pricing, sustainable development and the green energy transition
through B20 for the leaders of the Group of Twenty (G20), an international forum for
19 leading world economies, the European Union and starting from 2023, the African
Union. In 2023, En+ Group actively contributed to the work of the Task Force on Energy,
Climate Change, and Resource Efficiency, and the Action Council on ESG in Business.
Among the B20 recommendations was En+ Group’s proposal to harmonise standards
for monitoring and reporting emissions, driving cross-border recognition of national
disclosures at the international markets. This includes tracking the production and
consumption of renewable energy through appropriate market-based instruments such
as energy attribute certificates (e.g. green certificates).
Since 2020, En+ Group has consistently advocated for cross-border recognition of green
certificates within the B20 framework. En+ Group supported the concept of linking carbon
markets. Thus, linking carbon markets can increase the cost-effectiveness of emissions
reductions, support investment into lower income countries and support international
cooperation.
BRICS Business Council
En+ Group chairs the Russian Chapter of the Energy and Green Economy Working
Group at BRICS Business Council.In 2023, the key recommendations of the Working
Group, developed in cooperation with international partners, included the creation of
BRICS Energy Skills Roadmap, the establishment of BRICS Clean Energy Fund, and the
advancement of the BRICS Energy Cooperation Forum, established in 2022 under the
Chinese presidency with support from En+ Group. En+ Group presented “New Energy”
modernization programme at the second BRICS Energy Cooperation Forum.
Baikal Plastic Free Alliance
In 2023, En+ Group provided financial support to the Baikal Plastic Free Alliance,
facilitating various initiatives aimed at curbing microplastic pollution in Lake Baikal.
Among these efforts was an expedition that successfully retrieved more than 2 tonnes
of sunken fishing nets from the lake’s depths. More information about the activities of the
Association on page 121.
International Chamber of
Commerce (ICC)
In the reporting period, the International Chamber of Commerce (ICC), an organisation
bringing together global companies to foster business dynamism, hosted a roundtable
discussion dedicated to Climate Projects, with En+ Group’s Metals segment acting as the
moderator for this event.
Transparency
and certification
En+ Group demonstrates its commitment to sustainability principles and responsible practices
through extensive disclosure and certification processes, fostering industry-wide transparency.
ORGANISATION
EN+ GROUP ROLE
Aluminium Stewardship
Initiative (ASI)
ASI is an international standards development and certification body focused on
advancing responsible practices across the aluminium value chain. The En+ Group’s Metals
segment assists ASI in developing certification systems and promoting the widespread
adoption of standards. By the end of 2023, 18 entities were certified under ASI standards.
International Aluminium
Institute (IAI)
The International Aluminium Institute brings together the global aluminium community
to advocate for responsible production, sustainable use, and recycling of aluminium.
Since 2002, representatives from the En+ Group’s Metals segment have been actively
involved in the Environment and Energy Committee, the Health Committee, and various
other initiatives within the Institute.
Carbon Disclosure Project (CDP)
CDP is a non-profit charity that runs the global disclosure system for investors, companies,
and regions. In 2023, En+ Group and RUSAL submitted their respective climate change
reports to the CDP.
International Organization for
Standardisation (ISO)
The International Organization for Standardization (ISO) brings together global experts
to establish standards for responsible business practices. En+ Group’s enterprises
periodically obtain certification for management systems across various domains.
218
218
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STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Governance
Energy transition
En+ Group actively promotes the standardisation of both new and existing hydropower
facilities to facilitate the energy transition. It also maintains a portfolio of projects
focused on boosting renewable generation.
Governance
Supply chain
management
ORGANISATION
EN+ GROUP ROLE
UN Energy Compact
Hydropower of Russia
Association
En+ Group was the first Russian company to join the UN Energy Compact, a United
Nations initiative in sustainable energy to advance the achievement of SDG 7 (Affordable
and Clean Energy). Since 2021, the Company has consistently provided updates to the
UN Energy Compact Secretariat regarding the progress made in implementing the New
Energy modernization programme and the En+ Group’s Renewable Energy Certificates
project.
The Hydropower of Russia Association brings together Russian companies with the aim of
advancing the hydropower sector and enhancing its performance and reliability through
collaboration and joint problem-solving efforts. In 2023, Rosstandart approved GOST R,
a standard developed by the Association that outlines methodologies for evaluating the
technical condition of generators and hydraulic turbines. En+ Group has been an active
participant in the working groups developing these methodologies.
Climate and biodiversity
En+ Group acknowledges the climate impact of its operations and is actively pursuing
measures to mitigate GHG emissions, with the goal of achieving net zero by 2050.
Moreover, En+ Group is actively involved in global efforts to mitigate climate change.
ORGANISATION
EN+ GROUP ROLE
Carbon Pricing Leadership
Coalition (CPLC)
En+ Group and RUSAL are the only Russian members of CPLC a voluntary partnership
under the auspices of the World Bank to advance global carbon pricing. En+ Group and
RUSAL regularly contribute language to CPLC annual reports. In the latest CPLC Carbon
Pricing Leadership Report 2022/23 En+ Group highlighted its commitment to achieve
net-zero GHG emissions by 2050, as well as its initiative to measure GHG emissions from
HPPs reservoirs instrumentally.
Climate Partnership of Russia
Climate Partnership of Russia is a coalition of Russian companies dedicated to advancing
the climate agenda in Russia by facilitating dialogue among businesses, government
bodies, the scientific community, and the general public. In 2023, the partnership
organised events focusing on carbon regulation, Russia’s climate agenda trends, and
various events in the run-up to and following the COP-28.
Conference of the Parties
to the UN Framework
Convention on Climate
Change (UNFCCC)
En+ Group and RUSAL regularly participate in the UNFCCC COP meetings. In 2023,
under the auspices of the UN Global Compact Network Russia, En+ Group hosted two
sessions focused on market-based mechanisms for achieving net zero and the significance
of waste management in mitigating climate change. Representatives of various business
associations and research institutes from India, China, South Africa, and Brazil presented
their projects and case studies at the sessions.
Race to Zero
Race to Zero is a global initiative launched by the Climate Champions dedicated to
achieving net zero. En+ Group is a member of the initiative as a signatory to the Business
Ambition for 1.5 °C initiative.
INTERNAL REGULATIONS
z Supplier Standards
z Procurement Regulations
z Customer Liaison Regulations
MATERIAL TOPICS
z Sustainable supply chain
62
%
share of purchases from local suppliers
100
%
of suppliers operate with no actual or potential negative
social impact
GOALS
STATUS
PROGRESS made in 2023
z On track
z First stage completed
z Streamlining supplier assessment
and supplier claims processes
in the Power segment through
automation
z Expanding the Advanced Product
Quality Planning (APQP) process
to include other Company
business units in order to enhance
the certification process
z On track
z Developing and testing a pilot module
z On track
for the counterparty assessment
system based on quality and
expanding the scope of system
application to cover supplier audit
planning and monitoring schemes
within the Metals segment
z The Regulations on Qualification
of Raw Materials and Supplies
Producers were revised. An
extension of the APQP process
to the Directorate for New Projects
of the Metallurgical Industry has been
prepared
z The automation of modules involved
in rating assessment and data
collection used in calculations has
been completed, including Raw-
Material Suppliers Database, Supplier
Audits, Raw-Material Producers
Certification, and Raw and Other
Materials Non-Conformity Register
220
221
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Governance
Management approach
GRI 3-3
Supply chain sustainability is crucial to the Company’s
stability, which is why En+ Group places a strong emphasis
on supplier selection.
GRI 2-13
Inventory procurement and coordination of the
procurement process for works and services for the Power
segment internal customers are centralised within the
EuroSibEnergo Trading House, the commercial expertise
hub of the Group.
The Metals segment uses purchasing centres that supply
products and services to divisions and facilities.
The Company consistently monitors developments in
Russian and international laws. This enables the timely
updating or development of new internal documents
aimed at regulating and streamlining supply chain
management and engaging with suppliers of goods, works,
and services.
For more details on key operating
processes,
see pages 334-335.
En+ Group has adopted a systematic approach to identify
and evaluate supply chain risks. Identified risks include:
z risks of disruptions in supply chains for goods and raw
materials
z risks of monopolistic pricing in the transportation
market
z risks of time or budget overruns for projects.
In 2023, there were no changes to the supply chain
arrangements or structure.
The Power segment maintains partnerships with
equipment suppliers from Russia, Kazakhstan, and China
as part of its import substitution efforts for critical goods
and to ensure stable supplies from overseas.
The Metals segment is predominantly sourcing from
Russia, China, as well as Kazakhstan, the Caribbean,
Europe, and Africa.
In 2023, the Power segment expanded the Supplier Online
Account’s functionality; it now helps interact with suppliers,
enhancing communication efficiency through process
automation.
222
Key products procured by entities:
METALS SEGMENT
Energy supply services
Alumina
Raw materials used in the production of primary
aluminium and alloys
Fuel
Production plant maintenance and repair services
POWER SEGMENT
Goods
Electrical primary and auxiliary equipment and spare
parts
Heating primary and auxiliary equipment and spare
parts, chemical water treatment equipment
Petroleum products, fuels, and lubricants including fuel
oil, diesel fuel, and petrol
Cable products
Requirements for suppliers and contractors
When selecting suppliers and contractors, En+ Group assesses
their operations for compliance with sustainability principles.
In accordance with the Supplier Standards approved in 2021,
the Company requires suppliers to comply with laws, maintain
product or service quality control, conduct business ethically,
and ensure human rights observance.
GRI 2-24, 407-1, 408-1, 409-1
Running a responsible supply chain helps the Company avoid
human rights risks throughout the value creation process.
En+ Group does not engage suppliers whose operations:
z violate the rights to freedom of association and collective
bargaining
z involve a high risk of child or forced labour.
For more details on human rights,
see pages 142-143.
Supplier Standards are available on
the Company’s website
GRI 308-1, 308-2, 414-1, 414-2
By conducting internal and independent external supplier audits
and assessments at various stages of engagement, En+ Group
endeavours to prevent negative impacts on people and the
environment within its supply chain. Should the Company
identify any negative impact during its audits, it retains the right
to terminate its business relationship with such suppliers.
100% of contractors have been screened for social compliance.
The Metals segment has screened 30 new suppliers for
environmental compliance. Moreover, En+ Group routinely
monitors the conformity of suppliers’ and contractors’
certifications to international standards such as ISO 14001,
ISO 45001, and others. The Company also certifies its suppliers
against the requirements of IATF 16949 и GOST R 58139 and
applies the advanced product quality planning approach
(component manufacturing approval process).
METHODS TO VERIFY SUPPLIERS WITHIN THE METALS AND POWER SEGMENTS
METALS SEGMENT
POWER SEGMENT
Personal protective equipment and workwear
Potential and new suppliers
z Certification assessment
Rolled metal and pipes
Computer equipment and associated spare parts
Works and services
Electrical primary and auxiliary equipment repair and
maintenance services
Development of project and design engineering
documents
Conducting engineering surveys and land surveying
works
Conducting construction and installation and pre-
commissioning operations
Overhead line repairs
Hydraulic structure repairs
z Reviewing documentation, transactions,
and publicly available materials on potential
counterparties
z Voluntary ESG accreditation
z Vendor and contractor audits, incorporating
economic security measures and due
diligence reviews
z Participation in industry exhibitions
showcasing manufacturers and developers
z Assessment of compliance with
the requirements of Federal Law 223-FZ On
Procurement of Goods, Works and Services
by Certain Types of Legal Entities
z Assessment of compliance with
the experience and qualification
requirements set forth in the Power
segment’s internal regulations
z Assessment of business ethics and
reputation of suppliers and contractors
z Technical audits
z "Know Your Customer" procedure to assess
compliance risks
Current suppliers
z Routine inspections and audits to check
compliance with relevant requirements,
including occupational health and safety
standards (included in contracts).
z Supplier rating assessment
z Vendor and contractor audits, incorporating
economic security measures and due
diligence reviews
z Analysis of performance indicators
z Audits to check compliance with
z Use of penalties for non-compliance
occupational health and safety standards
z Verification of compliance with waste
disposal requirements
223
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
Governance
The Metals segment is actively pursuing initiatives to establish a
sustainable supply chain as part of its Sustainable Development
Strategy until 2030. The Strategy seeks to include 80% of
suppliers in a sustainable and ethical supply chain for raw
materials, finished products, goods, and services by 2025
(and achieve full coverage by 2035). This will be achieved by
implementing an in-house accreditation, assessment, and
verification system for ESG compliance.
In 2023, the Metals Segment developed and launched Supplier
Online Account, an information and analytical system enabling
suppliers to undergo ESG accreditation. The Metals segment’s
procurement service uses the Online Account feature to collect
supplier data and review accreditation results.
Along with launching the Online Account feature, the Metals
segment published the user training course for procurement
services and prospective suppliers planning to undergo
ESG accreditation. Based on the results of the certification
assessment and ESG accreditation, the Metals segment offers
guidance to suppliers and rolls out development programmes to
ensure suppliers’ compliance with the segment’s requirements.
Local supplier support
GRI 2-6, 203-2, 204-1
Hotline for reporting violations
En+ Group continues to maintain the Signal hotline,
a single dedicated speak-up hotline that receives
reports from suppliers and other stakeholders.
The hotline serves as a confidential platform
for reporting violations, including the option for
anonymous reporting, and for seeking guidance on
standards application. Two communication channels
are available to report violations:
z Call 8 800 234-56-40
(toll free)
z Write an e-mail to:
signal@enplus.ru
In an effort to bolster economic development within its regions
of operation, En+ Group actively procures from local suppliers.
In 2023, En+ Group’s procurement from local suppliers
accounted for 62% of its total purchases, up by 23 p.p. from the
previous year due to the change in Metals segment's approach to
identifying local suppliers.
In 2023, the Company maintained its support for small- and
medium-sized enterprises by offering various benefits, such
as extending the grace period (up to seven days) for payments
and simplifying the bidding process for tenders and auctions.
Small- and medium-sized enterprises accounted for 40.7% of
the total procurement spend in Power segment.
PLANS FOR 2024
AND BEYOND
Extend the supplier
certification procedure to the
Directorate for New Projects
of the Metals segment
Proportion of spending on local suppliers in 2023, %
Power segment
Metals segment
En+ Group
76
57
68
62
50
34
32
39
35
Local supplier definition
Metals segment
Local suppliers are companies that are registered in the
country of operation of the Metals segment enterprise,
that makes the purchase
Power segment
Local suppliers are companies registered within the regions
where the segment operates, including the Irkutsk Region,
Krasnoyarsk Territory, Nizhny Novgorod Region, Republic
of Tyva, and Republic of Khakassia
Automate specific business
processes and streamline and
enhance the transparency of
procurement procedures
Expand the roster of
potential contractors
and suppliers to drive
competition using SEO
promotion tools
4
2
5
Complete the revision of the
Business Partner Code and
have it approved
1
Implement a number of pilot
projects such as:
z umbrella purchases,
category-based
procurement, long-term
contracts featuring
formula-based pricing, etc.
z consolidating procurements
with an extended planning
horizon, facilitating joint
procurement among
customers, ESG surveys
of contractors, and
automating feedback
collection
3
Ensure effective engagement
with customers by
enhancing procurement
literacy and establishing
local competency centres,
contributing to customer
projects, particularly those
focused on digitisation and
sustainability
6
2021
2022
2023
224
225
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT2024 Governance
Responsible business practices
QUALITY MANAGEMENT
INTERNAL REGULATIONS
z Quality Policy
MATERIAL TOPICS
z Economic performance
96
%
share of responding customers who gave RUSAL
the highest rate
GOAL
STATUS
PROGRESS made in 2023
z Develop online services for customers
z On track
z Add new functionality
to the Company’s online services
Management Approach
GRI 3-3
En+ Group constantly improves
the quality of its services and
products throughout the life cycle.
This commitment is demonstrated
through compliance with the relevant
standards, fostering trust-based
relationships with customers, providing
regular training for employees, and
actively engaging them in quality
management procedures. The Group
strives to prioritise customer
satisfaction and deliver top-notch
products by adopting innovative
solutions and continuously improving
operating processes.
En+ Group actively collaborates with stakeholders to
address quality concerns. The Company receives feedback
from customers through various channels, including
webinars, trade shows, conferences, and seminars.
Furthermore, consumers have the opportunity to review
product specifications and address quality-related inquiries
through the Customer Online Account on the Group’s
information portal. Consumers may also conduct their
own audits by visiting the Metals segment’s facilities.
No concerns were identified as part of the 2023 audit.
The Company believes that employee engagement and
ownership of these issues are key to enhancing product
quality. To boost engagement, En+ Group is building
the required employee competencies and rolls out an
effective incentive system and various tools to elevate its
specialists’ professional level. Specifically, the Company
has established the Quality Academy, providing employees
with the essential skills for the efficient operation of the
quality management system (QMS). Training is structured
in a hybrid format, encompassing self-training, in-person
theoretical and practical sessions, video and audio
consultations, and participants’ presentations of personal
projects. The course involves two weeks of on-site training
at one of the Company’s facilities, followed by six weeks
dedicated to project implementation at the employee’s
home facility.
In the reporting year, the Company focused its QMS
improvement efforts on the Power Segment. This
involved proactive upgrades of essential equipment
for uninterrupted power supply and the integration of
supplementary features into En+ Group’s customer
applications.
Key principles guiding the
operation and enhancement of the
quality management system
Consumer focus
Adopting a customer-centric approach when dealing
with consumers
Best and reliable suppliers
Cultivating long-term relationships with partners that
support a culture of continuous improvement
Cultural values
Creating an environment conducive to developing
employee competencies
Business excellence model
Following sustainability principles
Continuous improvement and value creation
Incorporating cutting-edge innovations and
state-of-the-art technical solutions into the production
process
Accountability
Accountability for compliance with the Quality Policy
expected from both management and every employee
Built-in quality
Quality control throughout the entire
manufacturing process
226226
227
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Governance
ENHANCEMENT OF
CUSTOMER MOBILE
SERVICES
IMPROVING QUALITY
THROUGH THE DEPLOYMENT
OF MODERN TECHNOLOGIES
IMPROVING THE QUALITY
AND RELIABILITY OF
ELECTRICITY SUPPLY
GRI 3-3
En+ Group is continuously enhancing its products, ensuring they
meet the highest global standards. To achieve this objective, all
finished products within the Metals segment undergo mandatory
labelling in accordance with product data sheets, specifications,
and state standards. The facilities also undergo independent
annual assessments to ensure compliance with quality standards.
Facility certification
Thus, in 2023, certification was carried out to validate compliance
with international standards ISO 9001 and IATF 16949 as well as
the national standard GOST R 58139.
In 2023, participants of the Energy
Lab accelerator programme
incorporated a Report an Outage
feature into customer information
services. Local consumers will have
access to this feature through their
online accounts, the app, and the
Company’s website.
In the reporting year, the Group
increased its contact centre
capacity by hiring more operators
and redistributing daily workload.
Additional communication channels
are readily accessible to customers:
they can submit requests through
an application, the Company’s
social media accounts, or request
a callback.
The OOO Irkutskenergosbyt call
centre has introduced a voice
assistant capable of receiving meter
readings from retail customers and
entering them into the database.
The Company is also exploring
the possibility of directing calls
and inquiries from legal entities
to a voice assistant. Furthermore,
specialists are also considering
entrusting artificial intelligence
with the task of notifying customers
about emergency outages.
Customers will be invited to
submit requests detailing incident
locations, with robotic assistants
handling and then forwarding them
to human operators for response.
Customers, particularly the elderly,
having difficulties installing and
using En+ Group’s applications can
seek assistance from employee
volunteers. With the aid of digital
services and volunteer support,
more customers will now have
the option to send documents to
the Company, submit their meter
readings, or pay utility bills from
the comfort of their homes.
228
En+ Group started to roll out remote
control systems for heat pumping
stations at its facilities in Irkutsk.
The innovation enables the dispatcher
to not only monitor parameters and
equipment at the pumping station but
also remotely control them from the
central control room. This reduces the
response time to emergency situations
and facilitates rapid switching to backup
equipment when necessary.
The adoption of this new control
format markedly improves the quality
of En+ Group’s heat supply services.
In the future, the Group intends to roll
out remote control systems across all
pumping stations within the city.
5
new substations
launched by the Company in Irkutsk,
Irkutsk and Shelekhovsky districts within
the framework of the Teplovoy Luch
project in the reporting year
The En+ Group’s Teplovoy Luch project
in these regions encompasses the
construction of the largest heat pipeline
in the past 50 years.
Introducing the new heat pipeline will
enable the disconnection of coal and
fuel oil-fired boilers while connecting
residential buildings and social facilities
to the network. In doing so, the Company
actively contributes to the improvement
of environmental conditions in the
region.
> 5.5
km
of the heat pipeline expected
to span by 2026
Energized
for action
IS0 9001
QMS principal
standard
GOST R 58139
Standard for the
automotive industry
IATF 16949
Standard for the
automotive industry
25 facilities (Alumina Division,
Aluminium Division, Downstream
Division, and New Projects
Directorate)
7 aluminium smelters
2 aluminium smelters
GRI 3-3
The Group also gauges customer satisfaction levels
and the Company’s ratings as a supplier and runs
focus programmes seeking to enhance the quality of
manufactured products. The Company’s Zero Defects
strategy applies to all procurements impacting product
quality: every shipment of raw and other materials must
meet contractual and regulatory requirements. In the
reporting period, the Company received 95 consumer
complaints about substandard product quality.
Investigations have been conducted into each report,
leading to necessary and appropriate actions in response
to each specific case.
Number of customers’
quality-related reports
2023
2022
2021
95
46
55
PLANS FOR 2024 AND BEYOND
Continue to develop online customer services.
2024
229
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Governance
DIGITAL TRANSFORMATION
INTERNAL REGULATIONS
z Digital transformation strategy
MATERIAL TOPICS
z Economic performance
A new automated predictive
diagnostic system was launched
at Bratsk HPP
GOALS
STATUS
PROGRESS made in 2023
z Execute end-to-end automation
z On track
projects in accordance
with the established plans
z Develop and implement
z On track
a comprehensive Power Segment
Digital Transformation project
z Launch the Digital Project Office
z On track
project and open Artificial Intelligence
and Big Data, Industry 4.0, and Digital
Logistics laboratories
z On track
z To establish a consolidated digital ESG
data loop within the Metals Segment
by 2025, followed by the integration
of 100% of ESG metrics into a single
information platform. This platform
will enable big data-driven decision
making on environmental, social,
and corporate governance aspects
z Measures are being taken
in accordance with the schedule
z Measures are being taken
in accordance with the schedule.
z The Artificial Intelligence and Big Data
and Industry 4.0 laboratories were
opened, with the remaining projects
thoroughly developed and primed
for competitive procedures
z An ESG data collection and calculation
system has been developed,
commissioned, and seamlessly
integrated with various data sources
z ESG data sources are being analysed
to assess their viability for generating
ESG metrics
Management Approach
GRI 2-13, 3-3
En+ Group consistently enhances operating processes,
ensuring effective management and timely oversight.
This is primarily facilitated by the Group’s implementation
of digital products, services, and solutions for business
units and employees, alongside the automation of business
processes. Furthermore, the Group systematically gathers
and analyses big data sets, leveraging them to train
artificial intelligence models to perform operational tasks.
The Group has a Digital Transformation Directorate whose
main task is to implement the digital transformation
strategy, introduce innovative digital solutions to achieve
maximum operational efficiency.
In 2023, En+ Group revamped the digitisation and
automation management structure by consolidating the
automation and digitisation management entities into a
unified automation and digitisation management company.
Moreover, in Power segment it was established Industry
4.0 laboratory, which accumulates the world’s best
practices for implementing digital solutions in production,
and also launches the “Digital Project Office” project with
the functions of business analysis, generation of digital
initiatives and life cycle management of digital solutions for
production.
Within the Metals segment, the Information Technology
Directorate (ITD) oversees automation and digitisation
aspects. Moreover, cross-functional teams with specialised
expertise are being established within the segment to drive
the development and rollout of new digital products.
The Digital Transformation Strategy is the core document
formalising En+ Group’s objectives for digitisation and
automation, along with the necessary tools and actions to
achieve them.
In the reporting year, the Metals segment adopted its
own strategy for 2023–2030 named Digital Company.
To attain the objectives outlined in the strategy,
the segment is presently executing an end-to-end
automation programme, with plans to commence
a digitisation programme upon its completion. The strategy
incorporates a wide range of digitisation and automation
initiatives, ranging from upgrading digital infrastructure
and refining automated process control systems (APCS)
to deploying MES and corporate systems. Furthermore,
it involves piloting digital projects such as computer vision,
machine learning, and process robotisation across existing,
upgraded, and newly commissioned facilities.
For more details on the Digital
Transformation Strategy and the
Company’s approach to managing
automation and digitisation, see the
En+ Group Сonsolidated Report 2022,
pages 184–185
Automation
z Routine task automation for all Company services
z Development of analytical tools and automated
reporting systems
z Creation of a single enterprise-wide data
warehouse
z Deployment of disruptive digital technologies
z Deployment of management enterprise systems
(MES) to streamline operations automation
z Standardisation and centralisation of processes,
expertise, competencies, and automation tools
z Protection of IT data and supporting
infrastructure against accidental or intentional
interference
z Incorporation of ESG considerations into
automation and digitisation projects
Digitisation
z Introduction of a product-based approach
to digital solution development
Elements of the product-based approach have been
implemented: digitisation initiatives and requests are
now aligned with a regularly updated catalogue of
digital industrial solutions. This enables the selection
of off-the-shelf solutions or the commencement of
software development with a scope for subsequent
scalability across the Group
z Development of a digital skills training and
advancement system for all Company employees
Within the En+ Group Leaders programme, employees
from the Company’s laboratories devised and held
training courses on Modern Digital Products in the
Energy Sector. The content generated will serve as the
foundation for subsequent training targeting broader
audiences
z Implementation of business-specific digital
solutions
230
231
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Governance
Automation and Digitisation Projects
Automation and Digitisation Training and Partnerships
En+ Group is implementing automation and digitisation projects
across various domains. The digital solutions we develop and
implement serve a dual purpose: they enhance the efficiency
and reliability of operating processes while ensuring the
Company’s sustainable development. They encompass reducing
environmental impact, securing occupational health and safety
controls, developing educational platforms, simplifying supplier
management, streamlining supply chains, and other aspects.
For more details on the Company’s
key automation and digitisation
projects and their feed into
sustainability, see En+ Group
Consolidated Report 2022,
pages 186–187
DEVELOPMENT
OF PREDICTIVE
ANALYTICS SYSTEMS
FOR GENERATING
FACILITIES
(CHPS AND HPPS)
A new automated predictive
analytics system (APAS)
was launched at Bratsk HPP.
MOBILE
WALKAROUND
INSPECTOR
Ust-Ilimsk HPP has held a trial
run of the Mobile Walkaround
Inspector.
Through machine learning algorithms, APAS systematically
gathers and analyses comprehensive data on the parameters
and operational conditions of hydraulic units. It predicts
equipment malfunctions in advance and promptly alerts plant
staff. The technology helps determine the most suitable timing
for maintenance, thereby enhancing operational safety and
efficiency.
The APAS is based on a Russian-built platform equipped
with a specialised module for creating mathematical models,
which makes it unique in Russia.
Ust-Ilimsk HPP has held a trial run of the Mobile Walkaround
Inspector, a dedicated application that enables plant staff to
livestream data and supporting photo and video materials of
identified defects.
The application facilitates improved coordination of
walkaround inspections, leading to expedited elimination of
identified defects.
En+ Group routinely holds educational events on automation
and digitisation, providing a platform for employees to share
their experience and insights within the Group.
The Group is also interested in recruiting skilled young
talent to bolster its specialist teams. The Company has been
conducting an extensive outreach programme among school
and university students interested in the field:
z Holds competitions and festivals devoted to robotics and
information technology
z Opens and maintains the operation of En+ Group Multilab
competency building centres
z Implements partnership programmes with Russia’s leading
universities, offers in-house training programmes for niche
specialists (such as IT Academy and Energy Lab, etc.) and
rewards top-performing students
The training programmes for young talent are centred around
En+ Group’s real-world research tasks and case studies,
which are particularly valuable for nurturing future IT talent
for the national power and metals industries. 2023 saw the
IT Academy project’s first graduate stream to commence
employment at En+ Group.
Digital Aluminium Platform
Employees within the Metals Segment have the
opportunity to acquire digital skills through the
in-house platform as part of the Digital Aluminium
course, which has accumulated a wealth of training
materials. The course is open to all employees and
may be accessed online via mobile devices and
desktop computers.
The course comprises four thematic modules
encompassing the following topics:
z Artificial intelligence technologies, including
machine vision and machine learning
z Robotised systems
z Cybersecurity at work and at home
z Internal corporate systems and rules of operation
Participants may submit ideas for addressing
workplace challenges using Industry 4.0 technologies
as part of the course. These ideas will be further
developed by dedicated units.
PLANS FOR 2024
AND BEYOND
Establish a digital project
committee and a number of
new offices within the Digital
Transformation Directorate
1
Develop the Digital Project
Office project, establish the
Digital Logistics laboratory,
build Data Platform
and organize the “Data
Management Center”
2
CONTINUOUS
THERMAL
MONITORING
SYSTEM
A unique continuous thermal
monitoring system was
installed at the outdoor
switchgear of Irkutsk HPP.
The development was based on
a Russian-built platform and is
unmatched in the country.
The system enables sending timely alerts to plant staff
regarding temperature anomalies at the switchgear and
equipment switching to critical temperature modes, which,
among other things, may result in an emergency (such as a
fire). Now, HPP employees no longer need to conduct regular
inspections of switchgear contact connections with thermal
imaging cameras; the system performs this task independently
online.
Continue the implementation
of end-to-end automation
initiatives
Continue the implementation
of initiatives within the
Power Segment Digital
Transformation project
Finalise key tasks within the
Metals segment under the
End-to-End Automation
programme
3
4
5
Energized
for action
232
232
Moreover, the system offers self-learning capabilities
and continually aggregates datasets, leading to gradual
enhancements in the accuracy of its forecast models.
The project is scheduled for incremental expansion starting
in 2024 to encompass all outdoor switchgears across the
Company’s HPPs.
Assess the effectiveness and, in case of success, kick off the rollout of the following
technologies and projects in the Metals segment:
z Industry 4.0 technologies for detecting deviations and serving as
decision advisors
z 3D1 projects to replace human labour with robotised intelligent
systems
z Augmented reality solutions
6
2024
1 Dust, Dull, Dangerous, a term for dirty, dangerous, and heavy work
at operating facilities.
233
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Governance
CYBERSECURITY
INTERNAL REGULATIONS
z Information Security Policy
MATERIAL TOPICS
z Business ethics
300
cybersecurity vulnerabilities identified
and eliminated
Cybersecurity measures
GRI 418-1
A notable achievement of En+ Group’s cybersecurity
efforts in the reporting year was the absence of any
instances of confidentiality breaches, unauthorised
transfer of personal data, or complaints from
customers and partners regarding data leakage
or breaches of confidentiality and privacy.
Given the increasing frequency of cyberattacks
targeting corporate IT infrastructure, continuous
enhancement and refinement of the Company’s
cybersecurity management system are imperative.
GOAL
STATUS
PROGRESS made in 2023
Web application firewall
(WAF)
A web application firewall designed to detect and block network
attacks
z Implementation of the Sandbox
z Achieved
z System implemented
secure testing environment
Cybersecurity operations
centre (SOC)
Cybersecurity command centre tasked with monitoring, detecting,
analysing, and responding to cyber incidents in information
systems
Cybersecurity tools/methods
Brief description and key features
Implementation status
at En+ Group
Pilots have been run to
test protection tools
and methods, with
plans to procure and
roll out them across the
entire Group
In 2023, the following projects were implemented to assess and deploy novel approaches and tactics
for defending against cyberattacks:
Management Approach
Deception, a network decoy
management system
A system designed to mimic IT infrastructure and protect it from
cyberattacks. The system operates by generating deceptive
elements within the IT infrastructure (commonly known as
network traps), altering hackers’ perceptions of the corporate
information networks. Upon engaging with the network traps,
intruders infiltrating the information network promptly reveal
themselves, with cybersecurity specialists alerted accordingly.
Thus, the system enables the early detection and prevention
of cyberattacks on information systems while also redirecting
hackers’ focus away from the genuine critical components of the IT
infrastructure
Sandbox secure testing
environment
A zero-day attack protection system1 capable of simulating the
execution of suspicious files within an isolated environment to
identify and analyse malicious files and code
The system was rolled
out across the Group
GRI 2-13, 3-3
Cybersecurity is crucial for maintaining the seamless operation
of all Company business processes. The Group’s efforts aim
to enhance IT infrastructure security across all enterprises and
ensure prompt detection and responses to threats and incidents
in this area. All Company’s efforts in this area are aligned with its
Information Security Policy and internal regulations. En+ Group
consistently updates documents and brings its business
processes in line with the requirements of applicable laws.
En+ Group successfully applies its current cybersecurity
management system to ensure the confidentiality, safety,
and availability of data. The cybersecurity incident response team
is tasked with managing all aspects of the system’s operation and
driving its continuous improvement. Team members promptly
detect and address threats and risks, including external scanning
attempts, exploitation of perimeter vulnerabilities, malicious
software intrusion attempts, and unauthorised user activities.
They also oversee the prompt identification and elimination of
vulnerabilities on the Company’s external perimeter.
The response team additionally compiles monthly reports
detailing the results of its operations, which are subsequently
submitted to the Company’s management for review.
The reports include data on the Company’s current IT
infrastructure security status and the trends in the number of
identified and resolved threats and cybersecurity incidents over
recent periods.
Annually, auditors conduct reviews of En+ Group’s cybersecurity
management processes. Following these audits, detailed reports
are prepared as needed, highlighting identified vulnerabilities
and threats, along with recommendations and corrective action
plans. In 2023, several Group entities underwent scheduled
audits in this area. Furthermore, tests were conducted on various
information systems and services within the Company. Based on
the outcomes of their efforts, the Group’s experts identified
and systematically addressed over 300 vulnerabilities during the
reporting period, marking a 2.2-fold increase compared to 2021.
234
1
Zero-day attacks are cyberattacks resulting from attackers exploiting vulnerabilities before they are identified and addressed by information system developers.
These attacks become public knowledge before information system developers release vulnerability patches.
235
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Governance
Employee Involvement
En+ Group acknowledges that preventing cybersecurity
incidents largely depends on employees’ willingness
to comply with established rules and regulations. The
Company conducts regular internal training sessions
for employees, using En+ Group’s Corporate University
internet portal, to educate them on the rules of operating
electronic computing tools. Additionally, throughout the
year, all employees receive training materials via corporate
email, which contain informative fact sheets and examples
of phishing emails.
SASB IF-EU-550a.1
The Group promptly addresses and mitigates the effect of
employee breaches of cybersecurity standards. En+ Group
investigates all detected violations in accordance with the
procedure for planning and implementing appropriate
measures. During these investigations, designated
individuals document the facts and causes of the violations
and enforce technical and disciplinary measures to prevent
similar situations in the future.
In 2023, the Company implemented several initiatives
to enhance employee awareness of cybersecurity issues,
including:
Internships for employees
of the Group’s regional cybersecurity
services.
The most common types of breaches were as follows:
Sending work-related
information to personal
e-mail addresses
Unauthorised copying
of information to
removable media or
cloud services
A practical conference organised jointly
with a major IT and cybersecurity integrator
to facilitate discussions among Group
employees on current hot topics, challenges,
and practical strategies for addressing
them. The conference was attended by
representatives from top developers in
the cybersecurity solutions market.
Using the Internet for
personal purposes
Unauthorised
installation of
unapproved software
Violations of personal computer operation policies
(such as failing to lock the device promptly, or storing
personal information)
PLANS FOR 2024 AND BEYOND
Deploy and operationalise
several additional
cybersecurity systems
Conduct a pilot project
to test a master data
management system
Finalise employee training
courses to align them with
the current cybersecurity
standards and requirements
1
2
3
236
2024
INNOVATION MANAGEMENT
GRI 3-3
By continuously developing and sourcing new technologies, En+ Group maintains its
leadership position in the global market while constantly improving its environmental,
social, and economic performance.
R&D management
INTERNAL REGULATIONS
z R&D Policy
z Patent Policy
MATERIAL TOPICS
z Innovation management
z Economic performance
z Air quality
z Climate change
z Energy management
z Just energy transition and low-carbon
products
1.9
RUB
allocated to R&D projects
22.5 USD mn1
bn
R&D management prioritises the advancement of clean
energy and other strategic areas for En+ Group, while
the business system fosters employee engagement in
improving the Company’s operational efficiency.
GOALS
STATUS
PROGRESS made in 2023
z Broaden the scope of partnerships
z On track
and engage new scientific
collaborators in R&D projects
of particular interest to the Company
z Continue to explore new areas
for the Company, including CO2
capture and storage (CCS), energy
storage, hydrogen economy, and
the development and production
of cathode materials for batteries
z On track
z The Company has gathered data
regarding cutting-edge scientific
and technical advances by
leading scientific and educational
organisations and major
manufacturers
z The company builds partnerships
with major National Research
Universities, research institutes
of the Russian Academy of Sciences,
and the Novosibirsk Ыcientific Сluster.
z The Group is exploring the industrial
methodologies employed by Chinese
companies for CO2 capture and
storage alongside innovation-driven
developments from researchers
at Novosibirsk State University (NSU)
and St Petersburg State University
(SPbSU)
z En+ Group is expanding partnerships
in hydrogen economy and
energy storage, working closely
with the Competence Centre
of the National Technology Initiative
(NTI), Hydrogen as the Cornerstone
of a Low-Carbon Economy
1
Based on the 2023 average USD/RUB exchange rate of RUB 85.25 per dollar.
237
CONSOLIDATED REPORT 2023STRATEGIC REPORTSUSTAINABLE DEVELOPMENT Governance
GRI 3-3
The Science and Technical Council and the Innovation
Committee oversee R&D projects in the Power segment.
In 2023, En+ Group started finalising the R&D Procedures
to accelerate and better manage scientific projects.
GRI 2-13
The Technical Directorate is responsible for overseeing
innovative projects within the Metals segment. Operations
within this segment are governed by the Technical Policy,
which is annually revisited by the Scientific and Technical
Council. This council, a collective body, is also responsible
for decisions around innovation development and
deployment. In addition, the Metals segment boasts its
own R&D expertise, with the following research centres and
institutes handling most developments: Institute of Light
Materials and Technologies (ILM&T), Russian Aluminium
and Magnesium Institute (VAMI), the Siberian Scientific
Research and Design Institute of Aluminium and Electrode
Industry (SibVAMI), and the Engineering and Technology
Centre (RUSAL ETC).
In the reporting year, En+ Group’s R&D expenditures
totalled RUB 1.9 billion (USD 22.5 million1). Out of these,
RUB 1.8 billion was allocated to the Metals segment and
RUB 90 million to the Power segment. R&D expenses
within the Power Segment decreased by 41% year-on-year
in the 2023, primarily due to the extension of deadlines
for most ongoing projects. In 2023, 49% of the Power
Segment’s R&D investments were directed towards
renewable initiatives.
GRI 3-3
In research and development, En+ Group leverages its
internal expertise while also partnering with leading
scientific and educational organisations and major
manufacturers.
1
Based on the 2023 average USD/RUB exchange rate of RUB 85.25 per dollar.
Software development
The Digital Transformation Directorate and the
Development Department are collaborating to
explore the scope for developing proprietary
software for monitoring, diagnosing, and
streamlining the operation of process
equipment. Experts are exploring various
options for implementing different classes of
artificial intelligence algorithms.
Perovskite solar cells
This project is being implemented through
joint efforts with Lomonosov Moscow State
University (MSU). Current challenges include
enhancing the stability of laboratory samples,
advancing EuroSibEnergo’s patented vacuum
layer deposition technology, and scaling up cell
manufacturing methods.
18
%
The current efficiency of perovskite-silicon
tandem prototypes
238
Collaboration between En+ Group
and top Russian R&D universities
Development of heavy-duty
resource-saving electrolysers
Heavy-duty electrolysers have been developed and
are currently in operation at the pilot facility of the
Sayanogorsk Aluminium Smelter. The innovative
electrolysers offer high performance and energy
efficiency and contribute to reducing environmental
impact. In 2023, the Metals segment team
focused on designing solutions aimed at reducing
construction costs.
Energized for action
In 2023, En+ Group expanded its collaboration with
leading research universities and other organisations
focused on R&D.
Thus, in the reporting year, the National Research
University Moscow Power Engineering Institute
(NRU MPEI) and En+ Group signed a partnership
agreement to pursue major projects under the
comprehensive full innovation cycle scientific and
technical programme Next-Generation High-Capacity
Energy Sector. This collaboration aims to establish
the technological foundation for the future energy
sector.
Furthermore, in 2023, En+ Group experts held
meetings with representatives from top scientific
and educational institutions in Novosibirsk, including
NSU (Novosibirsk State University) and NSTU
(Novosibirsk State Technical University), as well as
several research institutes affiliated with the Siberian
Branch of the Russian Academy of Sciences (SB RAS).
These meetings resulted in a collaboration plan for
implementing scientific and technical projects.
PLANS FOR 2024
AND BEYOND
Continue to advance
research projects in clean
energy, including hydrogen
and solar energy, energy
storage and other
Foster ties with existing
partners and engage new
ones on collaborative
R&D initiatives
Draft a new R&D Process
Regulation to drive R&D
excellence
Approve the Company’s
updated Science and
Technical Policy aligned
with the emerging trends
in strategic development
3
1
4
2024
2
239
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT Governance
Business system
INTERNAL REGULATIONS
z Regulation on Operational
Development Project Management
z Regulation on Kaizen Suggestion
Submission and Implementation
MATERIAL TOPICS
z Innovation management
z Economic performance
z Employee management and
engagement
MANAGEMENT APPROACH
GRI 3-3
En+ Group strives to involve its employees in driving the
Company’s continued growth. Any En+ employee can
submit proposals to improve processes. The most useful
and effective of them are introduced into production.
In 2023, the overall economic impact from business
system projects reached RUB 7.3 billion(USD 86.2 mn),
RUB 6.5 bn (USD 76.38 mn) in Metals segment and RUB
843 mn (USD 9.8 mn)1 in the Power segment.
7.3
RUB
bn
Total economic benefit from the implementation of
the business system projects and suggestions
86.2 USD mn1
Total number of suggestions
received from employees
17,596
Kaizen suggestions were submitted in 2023
Power segment
Metals segment
2023
2022
2021
13,035
12,596
4,561
3,978
12,396
3,579
17,596
16,574
15,975
Employee suggestions
implemented
Power segment
Metals segment
2023
2022
2021
11,855
4,126
11,430
3,677
11,607
3,108
15,981
15,107
14,715
GOALS
STATUS
PROGRESS made in 2023
z Roll out a mobile application
z Achieved
for submitting Kaizen suggestions
z Prepare and hold the Kaizen
of the Year 2023 and Project
of the Year 2023 competitions
z Achieved
z The app was tested and launched
in October 2023
z By the year-end, over 2,700 Kaizen
suggestions had been submitted
through the system
z Both competitions were held,
and the best projects were selected
z Continue with the business system
z Achieved
z 739 people trained (100%)
training programme for new
employees with the aim of achieving
100% of trained workforce
z Introduce a mandatory business
system training programme
at the operational site tailored
for engineers and technical staff
of various proficiency levels
z On track
1
Based on the 2023 average USD/RUB exchange rate of RUB 85.25 per dollar.
240
z A training programme for engineers
and technical staff consisting of six
modules was developed
In 2023, En+ Group developed a new Regulation on Kaizen
Suggestion Submission and Implementation, containing
guidelines for making submissions via a mobile application.
To better motivate employees submitting Kaizen
suggestions, En+ Group has rolled out an incentive scheme.
En+ Group launched the Kaizen Digital
mobile app and website
In collaboration with the Business System
Development Directorate, En+ Digital experts
created the Kaizen Digital website and mobile
application, which were integrated into operating
processes during 2023.
A mobile app is a convenient and straightforward way
to submit ideas. Through new the app, employees
can now monitor review and implementation
timelines for their ideas. Furthermore, employees
can rate their colleagues’ suggestions and provide
feedback. These initiatives enable En+ Group
to involve as many employees as possible in the
continuous improvement engine for the Company’s
processes. After the application was implemented,
the number of kaizens increased by 11%.
En+ Group has taken the following steps to enhance
the availability of both the website and mobile app:
z Developed user instructions for the mobile app
and website, which were published on the self-
service portal
z Delivered training sessions for all business system
experts to proficiently use the Kaizen Digital
solutions
z Designed a course titled Kaizen Digital Mobile App
to brief employees on the app’s key features and
increase their involvement in Kaizen activities
In October 2023, the app was made available to
all Company employees. By the end of the year,
over 6,000 employees were registered in the app,
with over 2,700 Kaizen suggestions submitted.
In the reporting year, En+ Group continued to
implement the 5S principles: sort, set in order,
shine, standardise, and sustain. These principles
serve as guidelines for En+ Group employees in
their workplace practices.
241
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT
Governance
Project of the Year Competition
IN 2023, EN+ GROUP HELD
ITS SECOND PROJECT OF
THE YEAR COMPETITION.
Project of the Year winning projects
1
2
3
4.92
out of 5
Satisfaction score achieved through
a project to enhance the efficiency of
HR administration business processes
↓ 73
%
Decrease in the overall operation time
achieved through a project to install
a new transformer
↓ 1.14
%
Reduction of coal ash content achieved
through a project to introduce coal sampling
control and prompt adjustment of the
shipment route
270
participants
from the Power Segment participated in competition
63
projects were assessed
RUB 79.6
mn
total economic benefit from projects
of the competition
USD 933.72 thsd 1
242
242
BUSINESS SYSTEM TRAINING
To maximise employee awareness of the business system’s
capabilities and tools, the Business System Development
Directorate provides regular training to our staff. The Company
is in need of business system couches to facilitate training
sessions. In 2023, a ten-month training programme was
specifically designed for them, intended to help specialists from
the Business System Development Directorate train 32 couches.
These trainers will possess in-depth knowledge of individual tools
within the business system as well as practical skills to organise
and conduct training sessions independently.
A dedicated business system
development training programme was
crafted for engineers and technical staff
In 2023, specialists within the directorate put
together a training programme on business system
development tailored for engineers and technical
staff of various proficiency levels. The programme
consists of six modules, each focusing on a distinct
business system tool. After completing each module,
trainees are given homework assignments and
assessed at the end of training. En+ Group expects
this approach to improve the quality of training for
this employee category and encourage adoption of
relevant business system tools.
For more details on business system
training structure, see the
2022 Consolidated Report, page 195
PLANS FOR 2024
AND BEYOND
Continue staff training on the
Transformation programme
Continue the implementation
of training programmes
for newly hired employees
and provide training for
coaches on business system
development
1
Implement a training
programme tailored for
engineers and technical staff
across different proficiency
levels
Transition to fully electronic
document management
within the business system
facilitated by the Kaizen
Digital application
Implement key efficiency
projects
3
4
2024
2
5
243
STRATEGIC REPORTЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023SUSTAINABLE DEVELOPMENT1 Based on the 2023 average USD/RUB exchange rate of RUB 85.25 per dollar. 03 04
Financial
Statement
248
Consolidated Financial
Statement
FINANCIAL STATEMENTCONSOLIDATED REPORT 2023245245244245 Consolidated
Financial
Statement
EN+ GROUP IPJSC
Consolidated Financial Statements
for the year ended 31 December 2023
Contents
Statement of Management’s Responsibilities
Independent Auditor’s Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
247
3
248
4
253
9
255
11
256
12
258
14
259
15
246
247
247
2
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
248
249
249
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT 250
251
251
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT EN+ GROUP IPJSC
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2023
Year ended 31 December
2023
USD million
2022
USD million
Revenues
Cost of sales
Gross profit
Distribution expenses
General and administrative expenses
Impairment of non-current assets
Other operating expenses, net
Results from operating activities
Share of profits of associates and joint ventures
Finance income
Finance costs
Profit before tax
Income tax expense
Profit for the year
Attributable to:
Shareholders of the Parent Company
Non-controlling interests
Profit for the year
Note
5
6
13
8
8
10
16(f)
14,648
(11,366)
3,282
(844)
(874)
(366)
(168)
1,030
752
120
(1,026)
876
(160)
716
596
120
716
Earnings per share
Basic and diluted earnings per share (USD)
9
1.186
16,549
(12,056)
4,493
(793)
(1,071)
(370)
(253)
2,006
1,553
184
(1,290)
2,453
(607)
1,846
1,083
763
1,846
2.156
252
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the notes
to, and forming part of, the consolidated financial statements set out on pages 259 to 326.
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the notes
to, and forming part of, the consolidated financial statements set out on pages 15 to 83.
9
253
253
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2023 (continued)
Year ended 31 December
Note
2023
USD million
2022
USD million
Profit for the year
716
1,846
Other comprehensive (loss)/income
Items that will never be reclassified subsequently to
profit or loss
Actuarial gain on post-retirement benefit plans
Revaluation of hydro assets
Тахation
Items that are or may be reclassified subsequently to
profit or loss
Foreign currency translation differences on foreign
subsidiaries
Foreign currency translation differences for equity-accounted
investees
Change in fair value of cash flow hedge
Other comprehensive (loss)/income for the year, net of tax
Total comprehensive (loss)/income for the year
Attributable to:
Shareholders of the Parent Company
Non-controlling interests
Total comprehensive (loss)/income for the year
18(b)
11(e)
10(c)
13
19
16(f)
8
−
−
8
(861)
(1,011)
−
(1,872)
(1,864)
(1,148)
(555)
(593)
(1,148)
11
650
(132)
529
(47)
369
(131)
191
720
2,566
1,669
897
2,566
Assets
Non-current assets
Property, plant and equipment
Goodwill and intangible assets
Interests in associates and joint ventures
Deferred tax assets
Investments in equity securities measured at fair value
through profit and loss
Derivative financial assets
Other non-current assets
Total non-current assets
Current assets
Inventories
Trade and other receivables
Prepayments and VAT recoverable
Income tax receivable
Short-term investments
Derivative financial assets
Cash and cash equivalents
Total current assets
Total assets
Equity and liabilities
Equity
Share capital
Share premium
Additional paid-in capital
Revaluation reserve
Other reserves
Foreign currency translation reserve
Retained earnings
Total equity attributable to shareholders of
the Parent Company
Non-controlling interests
Total equity
Non-current liabilities
Loans and borrowings
Deferred tax liabilities
Provisions – non-current portion
Other non-current liabilities
Total non-current liabilities
Current liabilities
Loans and borrowings
Provisions – current portion
Trade and other payables
Advances received
Other taxes payable
Total current liabilities
Total equity and liabilities
Note
11
12
13
10(b)
15(h)
19
15(g)
14
15(b)
15(c)
10(e)
19
15(f)
16
16(f)
17
10(b)
18
17
18
15(d)
15(e)
EN+ GROUP IPJSC
Consolidated Statement of Financial Position
as at 31 December 2023
31 December
2023
USD million
2022
USD million
10,472
2,086
4,542
264
340
13
303
18,020
3,575
1,696
620
14
97
19
2,347
8,368
26,388
−
1,516
9,193
3,480
(1,492)
(6,578)
802
6,921
4,660
11,581
8,477
991
351
196
10,015
2,587
124
1,369
339
373
4,792
26,388
11,607
2,417
5,194
98
459
90
311
20,176
4,383
1,477
820
217
50
78
3,477
10,502
30,678
−
1,516
9,193
3,480
(1,497)
(5,422)
210
7,480
5,252
12,732
9,702
1,222
380
175
11,479
3,898
146
1,687
309
427
6,467
30,678
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the notes
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the
to, and forming part of, the consolidated financial statements set out on pages 15 to 83.
notes to, and forming part of, the consolidated financial statements set out on pages 259 to 326.
10
254
The consolidated statement of financial position is to be read in conjunction with the notes to, and forming part of,
The consolidated statement of financial position is to be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 15 to 83.
the consolidated financial statements set out on pages 259 to 326.
11
255
255
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Consolidated Statement of Cash Flows
for the year ended 31 December 2023
Year ended 31 December
Note
2023
USD million
2022
USD million
Operating activities
Profit for the year
Adjustments for:
Depreciation and amortisation
Impairment of non-current assets
Net foreign exchange loss
(Gain)/loss on disposal of property, plant and equipment
Share of profits of associates and joint ventures
Interest expense
Interest income
Dividend income
Income tax expense
(Partial reversal of provision) / write-down of inventories to
net realisable value
Impairment of trade and other receivables
Provision for legal claims
Change in fair value of derivative financial instruments
Change in fair value of financial assets and liabilities
Operating profit before changes in working capital
Decrease/(increase) in inventories
Decrease/(increase) in trade and other receivables and
advances paid
Decrease in trade and other payables and advances received
Cash flows from operations before income tax
Income taxes paid
Cash flows from operating activities
11,12
8
6
13
8
8
8
10
6
8
8
10(e)
716
765
366
85
(4)
(752)
748
(93)
(27)
160
(14)
16
3
99
94
2,162
843
340
(259)
3,086
(365)
2,721
1,846
720
370
111
23
(1,553)
988
(115)
(38)
607
172
169
10
191
(31)
3,470
(1,098)
(418)
(783)
1,171
(599)
572
EN+ GROUP IPJSC
Consolidated Statement of Cash Flows
for the year ended 31 December 2023 (continued)
Year ended 31 December
Note
2023
USD million
2022
USD million
Investing activities
Proceeds from disposal of property, plant and equipment
Acquisition of property, plant and equipment
Acquisition of intangible assets
Cash paid for investment in equity securities measured at
fair value through profit and loss
Cash (paid for) / received from other investments
Interest received
Dividends from associates and joint ventures
Dividends from financial assets
Prepayment for acquisition of associate
Contribution to associates and joint ventures
Cash outflow from disposal of subsidiary
Change in restricted cash
Cash flows (used in) / from investing activities
Financing activities
Proceeds from borrowings
Repayment of borrowings
Acquisition of non-controlling interest
Interest paid
Restructuring fees
Settlement of derivative financial instruments
Dividends to non-controlling shareholders
Cash flows (used in) / from financing activities
15(h)
13
16(a)
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year,
excluding restricted cash
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of the year,
excluding restricted cash
15(f)
13
(1,413)
(35)
(5)
(69)
84
−
23
(13)
(5)
−
1
(1,419)
6,103
(7,662)
(3)
(682)
(31)
(2)
−
(2,277)
(975)
3,474
(154)
2,345
8
(1,674)
(37)
(113)
111
104
1,639
34
−
(8)
(16)
(1)
47
9,129
(7,007)
(14)
(987)
(21)
(229)
(129)
742
1,361
2,328
(215)
3,474
Restricted cash amounted to USD 2 million and USD 3 million at 31 December 2023 and 31 December 2022,
respectively.
The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming part of,
The consolidated statement of cash flows is be read in conjunction with the notes to, and forming part of, the
the consolidated financial statements set out on pages 15 to 83.
consolidated financial statements set out on pages 259 to 326.
12
256
The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming part of,
The consolidated statement of cash flows is be read in conjunction with the notes to, and forming part of, the
the consolidated financial statements set out on pages 15 to 83.
consolidated financial statements set out on pages 259 to 326.
13
257
257
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
Attributable to shareholders of the Parent Company
EN+ GROUP IPJSC
EN+ GROUP IPJSC
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
for the year ended 31 December 2023
for the year ended 31 December 2023
Attributable to shareholders of the Parent Company
Share
premium
Additional
paid-in
capital
1,516
9,193
Other
reserves
−
(1,426)
−
(71)
−
−
(71)
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
Reva-
Foreign
luation
reserve
currency
2,945
translation
reserve
−
(5,561)
518
650
(132)
−
−
518
139
17
−
−
−
139
17
−
(71)
−
−
(71)
(71)
−
−
−
Foreign
currency
translation
reserve
(5,561)
Other
reserves
Retained
earnings/
(accumula-
ted losses)
(1,426)
(892)
1,083
−
139
−
−
139
Retained
earnings/
(accumula-
ted losses)
(892)
Total
1,083
5,775
−
−
−
1,083
−
Non-
controlling
interests
Total
Non-
5,775
controlling
interests
1,083
4,536
586
650
(132)
68
763
4,536
763
134
−
−
134
897
−
139
1,083
586
1,669
134
−
−
−
−
−
−
650
19
(132)
−
68
19
210
1,669
210
36
−
36
7,480
7,480
−
−
134
897
(50)
(131)
(181)
5,252
5,252
3,480
139
3,480
(1,497)
(5,422)
1,083
(1,497)
(5,422)
−
−
−
−
5
−
(1,156)
19
596
36
−
596
(1,151)
120
(713)
(50)
Total
equity
10,311
Total
equity
1,846
10,311
720
650
(132)
1,846
202
2,566
720
650
(14)
(132)
(131)
202
(145)
12,732
2,566
12,732
716
(14)
(1,864)
Share
premium
USD million
Additional
Balance at 1 January 2022
paid-in
capital
Comprehensive income
Profit for the year
Reva-
luation
reserve
1,516
9,193
Other comprehensive income/(loss)
2,945
Revaluation of hydro assets
Taxation
Other comprehensive (loss)/income
Total comprehensive income/(loss)
−
for the year
−
−
518
(note 16(a))
Transactions with owners
Change in effective interest in subsidiaries
−
−
Dividends to non-controlling shareholders
−
(note 16(d))
Total transactions with owners
650
(132)
−
Balance 31 December 2022
−
Balance at 1 January 2023
Comprehensive income
Profit for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss)
−
518
17
1,516
1,516
−
−
9,193
(71)
9,193
−
−
−
−
−
(note 16(a))
for the year
−
17
Total transactions with owners
−
Transactions with owners
−
Change in effective interest in subsidiaries
(1,148)
(131)
(145)
(3)
(3)
12,732
11,581
12,732
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 15 to 83.
−
36
(4)
(4)
7,480
802
7,480
−
−
(5,422)
3,480
(5,422)
(1,156)
−
19
Balance 31 December 2023
(131)
(181)
(1,497)
(1,497)
5,252
5,252
9,193
9,193
3,480
3,480
−
−
−
−
210
210
(6,578)
(1,492)
(4)
(4)
1,516
9,193
6,921
4,660
(555)
(593)
−
−
−
−
−
−
−
−
596
1
1
−
5
−
−
−
−
−
−
−
−
−
−
−
5
5
−
−
−
(1,156)
(1,156)
−
−
596
−
596
(4)
(4)
802
596
(1,151)
(555)
(4)
(4)
120
(713)
(593)
1
1
14
716
(1,864)
(1,148)
(3)
(3)
6,921
4,660
11,581
−
−
−
−
−
−
−
−
−
1,516
1,516
−
−
−
−
−
Balance 31 December 2023
1,516
9,193
3,480
(1,492)
(6,578)
USD million
Balance at 1 January 2022
Comprehensive income
Profit for the year
Other comprehensive income/(loss)
Revaluation of hydro assets
Taxation
Other comprehensive (loss)/income
Total comprehensive income/(loss)
for the year
Transactions with owners
Change in effective interest in subsidiaries
Dividends to non-controlling shareholders
(note 16(a))
(note 16(d))
Total transactions with owners
Balance 31 December 2022
Balance at 1 January 2023
Comprehensive income
Profit for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss)
for the year
Transactions with owners
Change in effective interest in subsidiaries
(note 16(a))
Total transactions with owners
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 15 to 83.
14
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
1.
Background
(a) Organisation
EN+ GROUP IPJSC (the “Parent Company” or EN+) was established as a limited liability company according
to the legislation of the British Virgin Islands on 30 April 2002 under the name of Baufinanz Limited. On
18 March 2004, the Parent Company registered a change of its legal name to Eagle Capital Group Limited. On
25 August 2005, the Parent Company changed its domicile to Jersey and was renamed to En+ Group Limited.
On 1 June 2017, the Parent Company changed its status to a public company and was renamed to
EN+ GROUP PLC. On 9 July 2019, the Parent Company changed its domicile to the Russian Federation with
a registration as EN+ GROUP International public joint-stock company (EN+ GROUP IPJSC). The Parent
Company’s registered office is Oktyabrskaya st. 8, office 34, Kaliningrad, Kaliningrad Region, 236006,
Russian Federation.
On 8 November 2017, the Parent Company successfully completed an initial public offering of global
depositary receipts on the London Stock Exchange. On 17 February 2020, the Parent Company’s ordinary
shares were included into the “Level 1” part of the list of securities admitted to trading on Moscow Exchange.
EN+ GROUP IPJSC is the parent company for the vertically integrated aluminium and power group, engaged
in aluminium production and energy generation (together with the Parent Company referred to as
“the Group”).
As at 31 December 2023 and 31 December 2022 Mr. Oleg Deripaska beneficially controls and exercises
voting rights in respect of 35% of the voting shares of the Parent Company and his direct or indirect
shareholding cannot exceed 44.95% of the shares of the Parent Company.
The other significant holders as at 31 December 2023 and 31 December 2022 were as follows:
Special financial organisation
Parent Company’s subsidiary
Glencore Group Funding Limited
Other shareholders
31 December
2023
31 December
2022
21.37%
–
10.55%
23.13%
–
21.37%
10.55%
23.13%
Glencore Group Funding Limited is a subsidiary of Glencore Plc.
In 2023 21.37% of Parent Company’s shares held by its indirect subsidiary were sold to the special financial
organisation, orphan special purpose vehicle (refer to note 16(b)).
Based on the information at the Group’s disposal at the reporting date, there is no individual that has an
indirect prevailing ownership interest in the Parent Company exceeding 50%, who could exercise voting
rights in respect of more than 35% of the Parent Company’s issued share capital or has an opportunity to
exercise control over the Parent Company.
Related party transactions are detailed in note 23.
(b) Operations
The Group is a leading vertically integrated aluminium and power producer, which combines the assets and
results of its Metals and Power segments.
The Metals segment operates in the aluminium industry primarily in the Russian Federation, Guinea,
Jamaica, Ireland, Italy and Sweden and is principally engaged in the mining and refining of bauxite and
nepheline ore into alumina, the smelting of primary aluminium from alumina and the fabrication of
aluminium and aluminium alloys into semi-fabricated and finished products.
The Power segment engages in all major areas of the power industry, including electric power generation,
power trading and supply. It also includes supporting operations engaged in the supply of coal resources to
the Group. The Group’s principal power plants are located in East Siberia and Volga Region, the Russian
Federation.
The consolidated statement of changes in equity is be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 259 to 326.
258
15
259
259
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(c) Business environment in emerging economies
The Russian Federation, Jamaica and Guinea have been experiencing political and economic changes that
have affected, and may continue to affect, the activities of enterprises operating in these environments.
Consequently, operations in these countries involve risks that typically do not exist in other markets,
including reconsideration of privatisation terms in certain countries where the Group operates following
changes in governing political powers.
The imposition of economic sanctions on Russian individuals and legal entities by the European Union, the
United States of America, Japan, Canada, Australia and others, as well as counter sanctions imposed by the
Russian government, has resulted in increased economic uncertainty including more volatile equity,
commodity and currency markets. The longer term effects of implemented sanctions, as well as the threat of
additional future sanctions, are difficult to determine.
The consolidated financial statements reflect management’s assessment of the impact of the Russian,
Jamaican and Guinean business environments on the operations and the financial position of the Group.
The future business environment may differ from management’s assessment.
(d) OFAC sanctions
On 6 April 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated,
amongst others, the Parent Company, JSC “EuroSibEnergo” (“EuroSibEnergo”) and UC RUSAL Plc (from
25 September 2020 UC RUSAL IPJSC, “UC RUSAL”) as Specially Designated Nationals (“SDN”)
(the “OFAC Sanctions”).
As a result, all property or interests in property of the Parent Company and its subsidiaries located in the
United States or in the possession of U.S. Persons were blocked, frozen, and could not have been transferred,
paid, exported, withdrawn, or otherwise dealt in. Several general licenses were issued at the time of the
designation and subsequently certain transactions were authorised with the Parent Company, EuroSibEnergo
and UC RUSAL, and with their respective debt and equity.
On 27 January 2019, OFAC announced the removal of the Parent Company and its subsidiaries, including
UC RUSAL and EuroSibEnergo, from OFAC’s SDN list and Blocked Persons with immediate effect.
The removal was subject to and conditional upon the satisfaction of a number of conditions including, but
not limited to:
Ending Mr. Oleg Deripaska’s control of the Group, through the reduction of his direct and indirect
ownership interest in the Parent Company to below 50%;
Establishing independent voting arrangements for the Parent Company’s shares held by certain
shareholders;
Corporate governance changes, including, inter alia, overhauling the composition of the EN+ Board
to ensure that independent directors constitute the majority of the Board, and ongoing reporting and
certifications by the Parent Company and UC RUSAL to OFAC concerning compliance with the
conditions for sanctions’ removal.
(e) Going concern
These consolidated financial statements have been prepared assuming that the Group will continue as a going
concern. Accordingly, these financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts, the amounts and classification of liabilities or any other
adjustments that might result from the Group being unable to continue as a going concern.
Ban of Australian government for the export of alumina and bauxite to Russia introduced in March 2022 and
temporary suspension of production at Mykolaiv Alumina Refinery Company Ltd due to developments in
Ukraine starting from 1 March 2022 influenced the availability of alumina and bauxite or increase the purchase
prices for the Group. Difficulties with logistics caused the Group to rebuild the supply and sales chains and lead
to additional logistics costs. If the situation in Ukraine and overall geopolitical tension persists or continues
to develop significantly, including the loss of significant parts of foreign markets, which cannot be reallocated
to new markets, it may affect the Group’s business, financial condition, prospects and results of operations.
Potentially the Group may have difficulties with equipment deliveries that may postpone realization of some
investment projects and modernization programs for existing production facilities.
The facts described above, as well as the volatility of commodity markets, stock, currency markets and
interest rates, create material uncertainty in the Group’s ability to meet its financial obligations on time and
continue as a going concern entity. Management constantly evaluates the current situation and prepares
forecasts taking into account different scenarios of the events and conditions development. The Group’s
management expects that prices on the world commodity markets will grow and improve the results of
operating activities. The Group is also revising its supply and sales chains, ensuring an optimal equity and
debt ratio, searching for resolutions of logistic difficulties, as well as the ways to survive its obligations in
order to adapt the current economic changes to maintain the continuance of the Group’s operations.
2.
Basis of preparation
(a)
Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRSs”), which collective term includes all International Accounting Standards and
related interpretations promulgated by the International Accounting Standards Board (“IASB”).
Preparation of these consolidated financial statements is also regulated by Russian Federal Law 208-FZ dated
27 July 2010 On Consolidated Financial Statements in all aspects, except for language and functional and
presentation currencies, which are regulated by Russian Federal Law 290-FZ dated 3 August 2018
On International Companies and International Funds.
The Group applied for the first-time certain standards and amendments, which are effective for annual periods
beginning on or after 1 January 2023.
IFRS 17 Insurance Contracts;
Definition of Accounting Estimates – Amendments to IAS 8;
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2;
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to
IAS 12;
International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12.
These amendments had no material impact on the consolidated financial statements of the Group.
(b) Standards issued but not effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of
issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these new and
amended standards and interpretations, if applicable, when they become effective.
Classification of Liabilities as Current or Non-current – Amendments to IAS 1;
Non-current Liabilities with Covenants – Amendments to IAS 1;
Lease Liability in a Sale and Leaseback – Amendments to IFRS 16;
Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7;
Lack of exchangeability – Amendments to IAS 21.
The Group is currently assessing the impact the amendments will have on current practice, when they become
effective.
(c) Basis of measurement
The consolidated financial statements have been prepared in accordance with the historical cost basis except
as set out in the significant accounting policies in notes 11 and 19.
260
16
17
261
261
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(d) Functional and presentation currency
The functional currencies of the Parent Company and Group’s significant subsidiaries are the currencies of
the primary economic environment and key business processes of these subsidiaries and include United States
Dollar (“USD”), Russian Rouble (“RUB”), Chinese Yuan (“CNY”) and Euro (“EUR”). The consolidated
financial statements are presented in USD, rounded to the nearest million, except as otherwise stated herein.
The functional currencies of investments in associates and joint ventures are RUB, Kazakhstani Tenge and
Australian Dollar.
(e) Use of judgements, estimates and assumptions
The preparation of consolidated financial statements in conformity with IFRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and reported
amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the consolidated
financial statements, and the reported revenue and costs during the relevant period.
Management bases its judgements and estimates on historical experience and various other factors that are
believed to be appropriate and reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions and conditions.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of IFRSs that have a significant effect on the
consolidated financial statements and estimates with a significant risk of material adjustment in the next year
are discussed in note 25.
3.
Significant accounting policies
Significant accounting policies are described in the related notes to the consolidated financial statements
captions and in this note.
The accounting policies and judgements applied by the Group in these consolidated financial statements are
consistent with those applied by the Group in its consolidated financial statements as at and for the year
ended 31 December 2022, except for the adoption of new standards effective from 1 January 2023.
(a) Basis of consolidation
(i)
Subsidiaries and non-controlling interests
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity. When assessing control substantive potential voting rights are taken into account.
The financial information of subsidiaries is included in the consolidated financial statements from the date
that control commences until the date that control ceases. The accounting policies of subsidiaries have been
changed when necessary to align them with the policies adopted by the Group.
Non-controlling interests represent the portion of the net assets of subsidiaries attributable to interests that are
not owned by the equity shareholders of the Parent Company, whether directly or indirectly through
subsidiaries.
Non-controlling interests are presented in the consolidated statement of financial position within equity,
separately from equity attributable to the equity shareholders of the Parent Company. Non-controlling
interests in the results of the Group are presented on the face of the consolidated statement of profit or loss
and other comprehensive income as an allocation of the total profit or loss and total comprehensive income
for the year between non-controlling interests and the equity shareholders of the Parent Company.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests
even if doing so causes the non-controlling interests to have a deficit balance.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling-
interests within consolidated equity to reflect the change in relative interests, but no adjustments are made to
goodwill and no gain or loss is recognised.
When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that
subsidiary, with a resulting gain or loss being recognised in profit or loss. Any interest retained in that former
subsidiary at the date when control is lost is recognised at fair value and this amount is regarded as the fair
value on initial recognition of a financial asset (refer to note 15) or, when appropriate, the cost on initial
recognition of an investment in an associate or joint venture (refer to note 13).
(ii) Acquisitions of non-controlling interests
The acquisition of an additional non-controlling interest in an existing subsidiary after control has been obtained
is accounted for as an equity transaction with any difference between the cost of the additional investment and
the carrying amount of the net assets acquired at the date of exchange recognised directly in equity.
The issue of a put option (a mandatory offer) to acquire a non-controlling interest in subsidiary, after control
has been obtained and is accounted for by the Group as an equity transaction, results in the recognition of a
liability for the present value of the expected exercise price and the derecognition of non-controlling interests
within consolidated equity. Subsequent to initial recognition, changes in the carrying amount of the put
liability are recognised within equity. If the put option expires unexercised then the put liability is
derecognised and non-controlling interests are recognised.
For a written put or forward option with the non-controlling shareholders in an existing subsidiary on their
equity interest in that subsidiary, if the non-controlling shareholders do not have present access to the returns
associated with the underlying ownership interest, the contract is accounted for as an anticipated acquisition
of the underlying non-controlling interests, as if the put option had been exercised already or the forward had
been satisfied by the non-controlling shareholders.
(iii) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from
transactions with equity accounted investees are eliminated against the investment to the extent of the
Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but
only to the extent that there is no evidence of impairment.
(b) Foreign currencies
(i)
Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Group entities at
the exchange rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in
foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that
date. The foreign currency gain or loss on monetary items is the difference between the amortised cost in the
functional currency at the beginning of the period, adjusted for effective interest and payments during the
period, and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting
period. Non-monetary items in a foreign currency are measured based on historical cost and are translated
using the exchange rate at the date of transaction. Foreign currency differences arising on retranslation are
recognised in profit or loss, except for differences arising on the retranslation of qualifying cash flow hedges
to the extent the hedge is effective, which is recognised in other comprehensive income.
262
18
19
263
263
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
(ii) Foreign operations
(b) Segment results, assets and liabilities
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
For the purposes of assessing segment performance and allocating resources between segments, the Group’s
senior executive management monitor the results, assets and liabilities and cash flows attributable to each
reportable segment on the following bases:
Total segment assets include all non-current tangible, intangible assets and current assets.
Total segment liabilities include all current and non-current liabilities.
Revenue and expenses are allocated to the reportable segments with reference to sales generated by
those segments and the expenses incurred by those segments or which otherwise arise from the
depreciation or amortisation of assets attributable to those segments.
The measures used for reporting segment results are the net profit and Adjusted EBITDA (key
non-IFRS financial measure used by the Group as reference for assessing operating effectiveness).
Segment profit or loss and Adjusted EBITDA are used to measure performance as management
believes that such information is the most relevant in evaluating the results of certain segments relative
to other entities that operate within these industries.
Adjusted EBITDA represents the results from operating activities adjusted for amortisation and
depreciation, impairment charges and gain/(losses) on disposal of property, plant and equipment for
the relevant period.
In addition to receiving segment information concerning segment results, management is provided with
segment information concerning revenue (including inter-segment revenue), the carrying value of
investments and share of profits/(losses) of associates and joint ventures, depreciation, amortisation, interest
income and expenses, other finance income and costs, income tax, gains/(losses) on disposal of property,
plant and equipment, impairment of non-current assets and additions of non-current segment assets used by
the segments in their operations. Inter-segment pricing is determined primarily on a consistent basis using
market benchmarks.
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated from their functional currencies to USD at the exchange rates ruling at the reporting
date. The income and expenses of foreign operations are translated to USD at exchange rates approximating
exchange rates at the dates of the transactions.
Foreign currency differences arising on translation are recognised in other comprehensive income and
presented in the currency translation reserve in equity. For the purposes of foreign currency translation, the
net investment in a foreign operation includes foreign currency intra-group balances for which settlement is
neither planned nor likely in the foreseeable future and foreign currency differences arising from such a
monetary item are recognised as part of other comprehensive income in the statement of profit or loss and
other comprehensive income.
When a foreign operation is disposed of, such that control, significant influence or joint control is lost, the
cumulative amount of the currency translation reserve is transferred to profit or loss as part of the gain or loss
on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign
operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-
controlling interests. When the Group disposes of only part of its investment in an associate or joint venture
that includes a foreign operation while retaining significant influence or joint control, the relevant proportion
of the cumulative amount is reclassified to profit or loss.
4.
Segment reporting
(a) Reportable segments
An operating segment is a component of the Group that engages in business activities from which it may
earn revenue and incur expenses, including revenue and expenses that relate to transactions with any of the
Group’s other components. All operating segments’ operating results are reviewed regularly by the Group’s
key executive management personnel and Board of Directors to make decisions about resources to be
allocated to the segment and assess its performance and for which discrete financial statements are available.
Individually material operating segments are not aggregated for financial reporting purposes unless the
segments have similar economic characteristics and are similar in respect of the nature of products and
services, the nature of production processes, the type or class of customers, the methods used to distribute
the products or provide the services and the nature of the regulatory environment. Operating segments which
are not individually material may be aggregated if they share a majority of these criteria.
Based on the current management structure and internal reporting the Group has identified two operating
segments:
a) Metals. The Metals segment comprises UC RUSAL with disclosures being based on the public
financial statements of UC RUSAL. All adjustments made to UC RUSAL, including any adjustments
arising from different timing of IFRS first time adoption, are included in “Adjustments” column.
The Power assets of UC RUSAL are included within the Metals segment.
b)
Power. The Power segment mainly comprises the power assets, as described in note 1(b).
These business units are managed separately and the results of their operations are reviewed by the key
executive management personnel and Board of Directors on a regular basis.
264
20
21
265
265
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
for the year ended 31 December 2023
EN+ GROUP IPJSC
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
for the year ended 31 December 2023
USD million
Metals
Power
Adjustments
Total
Year ended 31 December 2023
(ii) Foreign operations
Total
Power
USD million
Adjustments
property, plant and equipment)
Inter-segment revenue
Total segment revenue
Operating expenses (excluding depreciation and gain/loss on disposal of
12,008
9,933
513
550
128
55
829
205
12,213
Consolidated statement of profit or loss and other comprehensive income
Revenue from external customers
Primary aluminium and alloys
Alumina and bauxite
Semi-finished products and foil
Electricity
Heat
Other
Metals
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
14,648
acquisition, are translated from their functional currencies to USD at the exchange rates ruling at the reporting
9,933
date. The income and expenses of foreign operations are translated to USD at exchange rates approximating
513
864
exchange rates at the dates of the transactions.
1,646
476
Foreign currency differences arising on translation are recognised in other comprehensive income and
1,216
presented in the currency translation reserve in equity. For the purposes of foreign currency translation, the
−
14,648
net investment in a foreign operation includes foreign currency intra-group balances for which settlement is
neither planned nor likely in the foreseeable future and foreign currency differences arising from such a
(12,491)
monetary item are recognised as part of other comprehensive income in the statement of profit or loss and
2,157
other comprehensive income.
(765)
4
When a foreign operation is disposed of, such that control, significant influence or joint control is lost, the
(366)
1,030
cumulative amount of the currency translation reserve is transferred to profit or loss as part of the gain or loss
752
on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign
(655)
operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-
(251)
876
controlling interests. When the Group disposes of only part of its investment in an associate or joint venture
(160)
that includes a foreign operation while retaining significant influence or joint control, the relevant proportion
716
of the cumulative amount is reclassified to profit or loss.
Share of profits and impairment of associates and joint ventures
Interest expense, net
Other finance costs, net
Profit before tax
Depreciation and amortisation
(Loss)/gain on disposal of property, plant and equipment
Impairment of non-current assets
Results from operating activities
−
−
−
−
−
−
−
(1,152)
(1,152)
2,640
−
−
314
1,518
421
387
947
3,587
(228)
8
(45)
1,027
−
(343)
(134)
550
(540)
(4)
(321)
(79)
752
(312)
(117)
244
(11,427)
786
Income tax expense
Adjusted EBITDA
Profit for the year
(2,295)
1,292
−
−
−
82
3
−
−
82
1,231
79
(195)
282
355
(3)
38
79
Additions to non-current segment assets during the year (note 11(b))
(1,121)
(443)
7
(1,557)
4.
Segment reporting
(a) Reportable segments
An operating segment is a component of the Group that engages in business activities from which it may
earn revenue and incur expenses, including revenue and expenses that relate to transactions with any of the
22
Group’s other components. All operating segments’ operating results are reviewed regularly by the Group’s
key executive management personnel and Board of Directors to make decisions about resources to be
allocated to the segment and assess its performance and for which discrete financial statements are available.
Individually material operating segments are not aggregated for financial reporting purposes unless the
segments have similar economic characteristics and are similar in respect of the nature of products and
services, the nature of production processes, the type or class of customers, the methods used to distribute
the products or provide the services and the nature of the regulatory environment. Operating segments which
are not individually material may be aggregated if they share a majority of these criteria.
Based on the current management structure and internal reporting the Group has identified two operating
segments:
a) Metals. The Metals segment comprises UC RUSAL with disclosures being based on the public
financial statements of UC RUSAL. All adjustments made to UC RUSAL, including any adjustments
arising from different timing of IFRS first time adoption, are included in “Adjustments” column.
The Power assets of UC RUSAL are included within the Metals segment.
b)
Power. The Power segment mainly comprises the power assets, as described in note 1(b).
These business units are managed separately and the results of their operations are reviewed by the key
executive management personnel and Board of Directors on a regular basis.
(b) Segment results, assets and liabilities
Consolidated statement of financial position
Segment assets, excluding cash and cash equivalents and interests in associates
and joint ventures
Investment in Metals segment
Cash and cash equivalents
Interests in associates and joint ventures
Total segment assets
For the purposes of assessing segment performance and allocating resources between segments, the Group’s
senior executive management monitor the results, assets and liabilities and cash flows attributable to each
reportable segment on the following bases:
Total segment assets include all non-current tangible, intangible assets and current assets.
Segment liabilities, excluding loans, borrowings and bonds payable
Loans, borrowings and bonds payable
Total segment liabilities
Total segment liabilities include all current and non-current liabilities.
(908)
(4,595)
−
−
(5,503)
(244)
−
(244)
5,551
4,595
260
21
10,427
1,405
3,198
4,603
14,856
−
2,087
4,521
21,464
2,582
7,866
10,448
19,499
−
2,347
4,542
26,388
3,743
11,064
14,807
Total segment equity
Total segment equity and liabilities
Consolidated statement of cash flows
Cash flows from / (used in) operating activities
Cash flows (used in) / from investing activities
5,824
11,016
Revenue and expenses are allocated to the reportable segments with reference to sales generated by
21,464
those segments and the expenses incurred by those segments or which otherwise arise from the
depreciation or amortisation of assets attributable to those segments.
963
1,760
The measures used for reporting segment results are the net profit and Adjusted EBITDA (key
(1,030)
(1,056)
non-IFRS financial measure used by the Group as reference for assessing operating effectiveness).
Segment profit or loss and Adjusted EBITDA are used to measure performance as management
(5)
(49)
believes that such information is the most relevant in evaluating the results of certain segments relative
61
to other entities that operate within these industries.
19
−
(20)
23
−
(5)
(69)
84
19
−
−
−
−
(5,503)
(1,419)
(1,448)
(5,259)
26,388
11,581
10,427
2,721
(391)
(394)
(2)
2
2
Acquisition of property, plant and equipment, intangible assets
Cash paid for investment in equity securities measured at fair value through
profit and loss
Cash paid for other investments
Interest received
Other investing activities
Cash flows used in financing activities
Interest paid
Restructuring fees
Settlements of derivative financial instruments
Other financing activities
(1,747)
Adjusted EBITDA represents the results from operating activities adjusted for amortisation and
(422)
depreciation, impairment charges and gain/(losses) on disposal of property, plant and equipment for
(30)
the relevant period.
(2)
(1,293)
(682)
(31)
(2)
(1,562)
(260)
(1)
−
(269)
−
−
−
−
(2,277)
(530)
−
Net change in cash and cash equivalents
In addition to receiving segment information concerning segment results, management is provided with
segment information concerning revenue (including inter-segment revenue), the carrying value of
investments and share of profits/(losses) of associates and joint ventures, depreciation, amortisation, interest
income and expenses, other finance income and costs, income tax, gains/(losses) on disposal of property,
plant and equipment, impairment of non-current assets and additions of non-current segment assets used by
23
EN+ GROUP IPJSC
the segments in their operations. Inter-segment pricing is determined primarily on a consistent basis using
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
market benchmarks.
for the year ended 31 December 2023
for the year ended 31 December 2023
(1,017)
(975)
42
−
Year ended 31 December 2022
(b) Segment results, assets and liabilities
USD million
Total
Power
Adjustments
Adjusted EBITDA
property, plant and equipment)
2,794
−
−
340
1,611
463
380
1,091
3,885
Operating expenses (excluding depreciation and loss on disposal of
Inter-segment revenue
Total segment revenue
Total segment liabilities include all current and non-current liabilities.
Total segment assets include all non-current tangible, intangible assets and current assets.
Consolidated statement of profit or loss and other comprehensive income
Revenue from external customers
Primary aluminium and alloys
Alumina and bauxite
Semi-finished products and foil
Electricity
Heat
Other
Metals
For the purposes of assessing segment performance and allocating resources between segments, the Group’s
senior executive management monitor the results, assets and liabilities and cash flows attributable to each
reportable segment on the following bases:
13,755
11,384
557
581
233
62
938
219
13,974
Revenue and expenses are allocated to the reportable segments with reference to sales generated by
(11,946)
(2,631)
those segments and the expenses incurred by those segments or which otherwise arise from the
2,028
1,254
depreciation or amortisation of assets attributable to those segments.
(221)
(10)
(174)
849
(503)
(13)
The measures used for reporting segment results are the net profit and Adjusted EBITDA (key
(196)
1,316
non-IFRS financial measure used by the Group as reference for assessing operating effectiveness).
1,555
Segment profit or loss and Adjusted EBITDA are used to measure performance as management
(349)
believes that such information is the most relevant in evaluating the results of certain segments relative
(356)
2,166
to other entities that operate within these industries.
(373)
Adjusted EBITDA represents the results from operating activities adjusted for amortisation and
1,793
depreciation, impairment charges and gain/(losses) on disposal of property, plant and equipment for
(1,242)
the relevant period.
Depreciation and amortisation
Loss on disposal of property, plant and equipment
Impairment of non-current assets
Results from operating activities
Share of profits of associates and joint ventures
Interest expense, net
Other finance costs, net
Profit before tax
−
−
−
−
−
−
−
(1,310)
(1,310)
16,549
11,384
557
921
1,844
525
1,318
−
16,549
Additions to non-current segment assets during the year (note 11(b))
Income tax expense
Profit for the year
1,553
(873)
(233)
2,453
(720)
(23)
(370)
2,006
−
−
(173)
(332)
(2)
(524)
296
619
4
−
−
(159)
(13,430)
3,119
1,147
(163)
(1,765)
1,846
(331)
(235)
(523)
(607)
384
−
1
266
20
In addition to receiving segment information concerning segment results, management is provided with
segment information concerning revenue (including inter-segment revenue), the carrying value of
investments and share of profits/(losses) of associates and joint ventures, depreciation, amortisation, interest
income and expenses, other finance income and costs, income tax, gains/(losses) on disposal of property,
plant and equipment, impairment of non-current assets and additions of non-current segment assets used by
24
the segments in their operations. Inter-segment pricing is determined primarily on a consistent basis using
21
market benchmarks.
267
267
21
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
for the year ended 31 December 2023
Metals
Power
Adjustments
Total
USD million
(ii) Foreign operations
Consolidated statement of financial position
Segment assets, excluding cash and cash equivalents and interests in
associates and joint ventures
Investment in Metals segment
Cash and cash equivalents
Interests in associates and joint ventures
Total segment assets
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
22,007
−
acquisition, are translated from their functional currencies to USD at the exchange rates ruling at the reporting
3,477
date. The income and expenses of foreign operations are translated to USD at exchange rates approximating
5,194
30,678
exchange rates at the dates of the transactions.
Segment liabilities, excluding loans and borrowings and bonds payable
Loans, borrowings and bonds payable
Total segment liabilities
4,346
13,600
Foreign currency differences arising on translation are recognised in other comprehensive income and
17,946
presented in the currency translation reserve in equity. For the purposes of foreign currency translation, the
12,732
net investment in a foreign operation includes foreign currency intra-group balances for which settlement is
30,678
neither planned nor likely in the foreseeable future and foreign currency differences arising from such a
monetary item are recognised as part of other comprehensive income in the statement of profit or loss and
572
47
other comprehensive income.
Consolidated statement of cash flows
Cash flows (used in) / from operating activities
Cash flows from / (used in) investing activities
(944)
(4,595)
−
−
(5,539)
16,261
−
3,196
5,174
24,631
6,690
4,595
281
20
11,586
Total segment equity and liabilities
2,867
9,457
12,324
Total segment equity
1,680
4,143
5,823
(201)
−
(201)
(5,539)
(5,338)
24,631
12,307
11,586
5,763
(171)
(412)
(254)
986
472
(2)
(474)
(1,239)
through profit and loss
Acquisition of property, plant and equipment, intangible assets
Cash paid for investment in equity securities measured at fair value
Cash received from other investments
Dividends from associates and joint ventures
Dividends from Metals segment
Interest received
Other investing activities
(1,711)
When a foreign operation is disposed of, such that control, significant influence or joint control is lost, the
(113)
cumulative amount of the currency translation reserve is transferred to profit or loss as part of the gain or loss
111
on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign
1,639
−
operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-
104
17
controlling interests. When the Group disposes of only part of its investment in an associate or joint venture
742
that includes a foreign operation while retaining significant influence or joint control, the relevant proportion
(987)
of the cumulative amount is reclassified to profit or loss.
(21)
(229)
−
(129)
2,108
Cash flows from / (used in) financing activities
(428)
(17)
(229)
(173)
(129)
2,391
(113)
97
1,639
−
70
18
(559)
(4)
−
−
−
(283)
−
−
−
(173)
−
−
−
−
−
173
−
−
−
14
−
173
34
(1)
Interest paid
Restructuring fees
Settlements of derivative financial instruments
Dividends to Power segment
Segment reporting
4.
Dividends to non-controlling shareholders
Other financing activities
(a) Reportable segments
Net change in cash and cash equivalents
1,475
(114)
−
1,361
1,415
(846)
173
2
An operating segment is a component of the Group that engages in business activities from which it may
earn revenue and incur expenses, including revenue and expenses that relate to transactions with any of the
25
Group’s other components. All operating segments’ operating results are reviewed regularly by the Group’s
key executive management personnel and Board of Directors to make decisions about resources to be
allocated to the segment and assess its performance and for which discrete financial statements are available.
Individually material operating segments are not aggregated for financial reporting purposes unless the
segments have similar economic characteristics and are similar in respect of the nature of products and
services, the nature of production processes, the type or class of customers, the methods used to distribute
the products or provide the services and the nature of the regulatory environment. Operating segments which
are not individually material may be aggregated if they share a majority of these criteria.
Based on the current management structure and internal reporting the Group has identified two operating
segments:
a) Metals. The Metals segment comprises UC RUSAL with disclosures being based on the public
financial statements of UC RUSAL. All adjustments made to UC RUSAL, including any adjustments
arising from different timing of IFRS first time adoption, are included in “Adjustments” column.
The Power assets of UC RUSAL are included within the Metals segment.
b)
Power. The Power segment mainly comprises the power assets, as described in note 1(b).
These business units are managed separately and the results of their operations are reviewed by the key
executive management personnel and Board of Directors on a regular basis.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(i) Geographic information
The Group’s operating segments are managed on a worldwide basis, but operate in four principal
geographical areas: the CIS, Europe, Africa and the Americas. In the CIS, production facilities operate in
Russia. In Europe, production facilities are located in Italy, Ireland and Sweden. African production facilities
are represented by the bauxite mines and an alumina refinery in Guinea. In the Americas the Group operates
one production facility in Jamaica.
The following table sets out information about the geographical location of the Group’s revenue from
external customers and the Group’s property, plant and equipment, intangible assets and interests in
associates and joint ventures (“specified non-current assets”). The geographical location of customers is
based on the location at which the services were provided or the goods delivered. The geographical location
of the specified non-current assets is based on the physical location of the asset. Unallocated specified
non-current assets comprise mainly goodwill and interests in associates and joint ventures.
Revenue from external customers
Year ended 31 December
2023
USD million
2022
USD million
Russia
China
South Korea
Turkey
Greece
Germany
Netherlands
Spain
Japan
Poland
Byelorussia
Italy
India
France
Uzbekistan
Ireland
Other countries
Specified non-current assets
Russia
Ireland
Guinea
Sweden
Unallocated
5,897
2,855
1,191
1,182
341
268
256
237
229
222
211
198
133
129
128
115
1,056
6,267
1,122
1,184
1,011
339
441
884
104
963
385
133
303
54
223
94
221
2,821
14,648
16,549
31 December
2023
USD million
2022
USD million
14,198
89
234
−
3,499
18,020
16,006
94
237
53
3,786
20,176
268
20
26
269
269
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
5.
Revenues
6. Other operating expenses, net
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is
recognised. The details of significant accounting policies in relation to the Group’s various goods and
services are set out below:
Sales of goods: comprise sale of primary aluminium, alloys, alumina, bauxite and other products. Customers
obtain control of the goods supplied when the goods are delivered to the point when risks are transferred
based on Incoterms delivery terms stated in the contract, legal title to the asset and physical possession of the
asset is transferred. Invoices are generated and revenue is recognised at that point in time. Invoices are usually
payable within 60 days or in advance. Under certain Group sale contracts, the final price for the goods shipped
is determined a few months later than the delivery took place. Under current requirements the Group
determines the amount of revenue at the moment of recognition based on estimated selling price at the date
of the invoice issued. At price finalisation the difference between estimated price and actual one is recognised
as other revenue.
Rendering of transportation services: as part of sales of goods the Group also performs transportation to
the customer under contract terms. In certain cases, the control of goods delivered is transferred to customers
prior to transportation being completed. In these cases rendering of transportation services from when the
control of goods has been transferred is considered as a separate performance obligation.
Rendering of electricity supply services: The Group is involved in sales of energy to third and related
parties. Invoices are issued once a month at the end of month and paid within 30 days. Revenue is recognised
over time during the month of energy supply.
Year ended 31 December
2023
USD million
2022
USD million
Sales of primary aluminium and alloys
Third parties
Related parties – companies capable of exerting significant influence
Related parties – associates and joint ventures
Related parties – other
Sales of alumina and bauxite
Third parties
Related parties – associates and joint ventures
Sales of semi-finished products and foil
Third parties
Sales of electricity
Third parties
Related parties – associates and joint ventures
Related parties – other
Sales of heat
Third parties
Related parties – companies capable of exerting significant influence
Related parties – other
Other revenues
Third parties
Related parties – companies capable of exerting significant influence
Related parties – associates and joint ventures
Related parties – other
9,933
9,689
241
3
−
513
248
265
864
864
1,646
1,607
39
−
476
474
2
−
1,216
977
35
204
−
14,648
All revenue of the Group relates to revenue from contracts with customers.
270
11,384
11,164
211
3
6
557
251
306
921
921
1,844
1,803
39
2
525
513
3
9
1,318
1,055
21
238
4
16,549
27
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Year ended 31 December
2022
USD million
2023
USD million
(38)
(16)
4
(118)
(168)
(53)
(169)
(23)
(8)
(253)
Charity
Impairment of trade and other receivables
Gain/(loss) on disposal of property, plant and equipment
Other operating expenses, net
7.
Personnel costs
Personnel costs comprise salaries, annual bonuses, annual leave, cost of non-monetary benefits and social
contributions. Salaries, annual bonuses, paid annual leave and cost of non-monetary benefits are accrued in
the year in which the associated services are rendered by employees. Where payment or settlement is deferred
and the effect would be material, these amounts are stated at their present values.
The employees of the Group are also members of retirement schemes operated by local authorities.
The Group is required to contribute a certain percentage of their payroll to these schemes to fund the benefits.
The Group’s total contribution to those schemes charged to profit or loss during the years presented is shown
below.
The Group’s net obligation in respect of defined benefit pension and other post-retirement plans is calculated
separately for each plan by estimating the amount of future benefit that employees have earned in return for
their service in the current and prior periods. That benefit is discounted to determine its present value and the
fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on government
bonds that have maturity dates approximating the terms of the Group’s obligations. The calculation is
performed using the projected unit credit method. When the calculation results in a benefit to the Group, the
recognised asset is limited to the present value of any future refunds from the plan or reductions in future
contributions to the plan.
Where there is a change in actuarial assumptions, the resulting actuarial gains and losses are recognised
directly in other comprehensive income.
When the benefits of a plan are improved, the portion of the increased benefit relating to past service by
employees is recognised in profit or loss immediately.
The Group recognises gains and losses on the curtailment or settlement of a defined benefit plan when the
curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair
value of plan assets, any change in the present value of the defined benefit obligation, any related actuarial
gains and losses.
Contributions to defined contribution retirement plans
Contributions to defined benefit retirement plans
Total retirement costs
Wages and salaries
Year ended 31 December
2023
USD million
2022
USD million
(288)
(1)
(289)
(1,277)
(1,566)
(348)
(3)
(351)
(1,547)
(1,898)
8.
Finance income and costs
Finance income comprises interest income on funds invested, dividend income and foreign currency gains.
Interest income is recognised as it accrues, using the effective interest method.
Finance costs comprise interest expense on loans and bonds, foreign currency losses and changes in the fair
value of financial assets at fair value through profit or loss. All borrowing costs are recognised in profit or
loss using the effective interest method, except for borrowing costs related to the acquisition, construction
and production of qualifying assets which are recognised as part of the cost of such assets.
28
271
271
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Foreign currency gains and losses are reported on a net basis. Foreign exchange loss on loans and borrowing
for the year ended 31 December 2023 amounted to USD 162 million (2022: loss of USD 164 million).
Finance income
Interest income
Dividend income
Change in fair value of financial assets and liabilities
Finance costs
Interest expense
Change in fair value of derivative financial instruments (note 19)
Net foreign exchange loss
Change in fair value of financial assets and liabilities
Year ended 31 December
2023
USD million
2022
USD million
93
27
−
120
(748)
(99)
(85)
(94)
(1,026)
115
38
31
184
(988)
(191)
(111)
−
(1,290)
9.
Earnings per share
The calculation of basic earnings per share is based on the profit attributable to ordinary equity shareholders
for the years ended 31 December 2023 and 31 December 2022.
Weighted average number of shares
Profit for the year attributable to the shareholders of the Parent
Company, USD million
Basic and diluted earnings per share, USD
Year ended 31 December
2023
2022
502,337,774
502,337,774
596
1.186
1,083
2.156
There were no outstanding dilutive instruments during the years ended 31 December 2023 and
31 December 2022.
10.
Income tax expense
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the statement
of profit or loss and other comprehensive income except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax liability is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax
liability is not recognised for the following temporary differences: the initial recognition of goodwill, the
initial recognition of assets or liabilities in a transaction that a) is not a business combination, b) affects
neither accounting nor taxable profit, c) at the time of the transaction, does not give rise to equal taxable and
deductible temporary differences; and for taxable differences relating to investments in subsidiaries, branches
and associates, and interests in joint arrangements to the extent that they are controllable by the Group and
probably will not reverse in the foreseeable future. New information may become available that causes the
Group to change its judgement regarding the adequacy of existing tax liability. Such changes to tax liabilities
will impact tax expenses in the period that such a determination is made. Deferred tax is measured at the tax
rates that are expected to be applied to the temporary differences when they reverse, based on the laws that
have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset
when they relate to income taxes levied by the same taxation authority and the Group has both the right and
the intention to settle its current tax assets and liabilities on a net or simultaneous basis.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which temporary differences can be utilised. Deferred tax asset is not recognised for the following
temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit and does not give rise to equal taxable and
deductible temporary differences, and for deductible differences relating to investments in subsidiaries,
branches and associates, and interests in joint arrangements to the extent that they probably will reverse in
the foreseeable future and taxable profit will be available against which the temporary difference can be
utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realised.
Withholding taxes that arise from the distribution of dividends are recognised at the same time as the liability
to pay the related dividends is recognised.
(a)
Income tax expense
Current tax expense
Current tax for the year
Deferred tax expense
Origination and reversal of temporary differences
Year ended 31 December
2023
USD million
2022
USD million
(370)
210
(160)
(553)
(54)
(607)
The Parent Company is a tax resident of the Russian SAR (special administrative region). Companies which
register in the SAR as part of the continuance out of a foreign jurisdiction (such as the Parent Company) may
have a number of tax benefits, subject to certain conditions.
The Parent Company and subsidiaries pay income taxes in accordance with the legislative requirements of
their respective tax jurisdictions. For companies domiciled in Russia the applicable tax rate is 20%;
Guinea is 0%; China is 25%; Kazakhstan is 20%; Australia is 30%; Jamaica is 25%; Ireland is 12.5%;
Sweden is 20.6%, Italy is 27.9%, Switzerland of 9.07% and 11.82%, United Arab Emirates is 0% and 9%.
For the UC RUSAL’s significant trading companies, the applicable tax rate range from 0% to 25%.
The applicable tax rates for the year ended 31 December 2023 were the same as for the year ended
31 December 2022 except for tax rates for subsidiaries domiciled in Switzerland which amounted to 9.06%
and 11.8%.
Reconciliation of effective tax rate
Profit before taxation
Income tax at tax rate applicable
for the Parent Company
Other non-deductible/taxable items, net
Effect of changes in investment in
Norilsk Nickel
Change in unrecognised deferred tax
assets
Effect of reversal of impairment /
(impairment)
Effect of windfall tax
Effect of different income tax rates
Income tax
Year ended 31 December
2023
2022
USD million
%
USD million
%
876
(175)
(5)
126
(213)
(43)
(58)
208
(160)
(100)
20
–
(14)
24
5
7
(24)
18
2,453
(491)
54
288
(269)
(18)
–
(171)
(607)
(100)
20
(2)
(12)
11
1
–
7
25
272
29
30
273
273
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(b) Recognised deferred tax assets and liabilities
(ii) Foreign operations
Deferred tax assets and liabilities are attributable to the following items:
USD million
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated from their functional currencies to USD at the exchange rates ruling at the reporting
date. The income and expenses of foreign operations are translated to USD at exchange rates approximating
(1,305)
21
exchange rates at the dates of the transactions.
28
(1,123)
25
26
(1,423)
(29)
(55)
(1,243)
(44)
(62)
120
69
88
118
50
83
2022
2022
2023
2022
2023
2023
Liabilities
31 December
Net
31 December
Assets
31 December
Property, plant and equipment
Inventories
Trade and other receivables
Trade and other payables and advances
received
Tax loss carry-forward
Others
Tax assets/(liabilities)
Foreign currency differences arising on translation are recognised in other comprehensive income and
26
143
presented in the currency translation reserve in equity. For the purposes of foreign currency translation, the
(37)
net investment in a foreign operation includes foreign currency intra-group balances for which settlement is
(1,124)
neither planned nor likely in the foreseeable future and foreign currency differences arising from such a
−
(1,124)
monetary item are recognised as part of other comprehensive income in the statement of profit or loss and
other comprehensive income.
−
−
(157)
(1,664)
–
–
(123)
(1,472)
33
72
240
(727)
Net deferred tax assets/(liabilities)
33
72
363
745
26
143
120
540
Set off of tax
(1,222)
(727)
(991)
(442)
(481)
264
442
481
98
–
When a foreign operation is disposed of, such that control, significant influence or joint control is lost, the
cumulative amount of the currency translation reserve is transferred to profit or loss as part of the gain or loss
on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign
operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-
controlling interests. When the Group disposes of only part of its investment in an associate or joint venture
that includes a foreign operation while retaining significant influence or joint control, the relevant proportion
of the cumulative amount is reclassified to profit or loss.
4.
Segment reporting
(a) Reportable segments
An operating segment is a component of the Group that engages in business activities from which it may
earn revenue and incur expenses, including revenue and expenses that relate to transactions with any of the
Group’s other components. All operating segments’ operating results are reviewed regularly by the Group’s
key executive management personnel and Board of Directors to make decisions about resources to be
allocated to the segment and assess its performance and for which discrete financial statements are available.
31
Individually material operating segments are not aggregated for financial reporting purposes unless the
segments have similar economic characteristics and are similar in respect of the nature of products and
services, the nature of production processes, the type or class of customers, the methods used to distribute
the products or provide the services and the nature of the regulatory environment. Operating segments which
are not individually material may be aggregated if they share a majority of these criteria.
Based on the current management structure and internal reporting the Group has identified two operating
segments:
a) Metals. The Metals segment comprises UC RUSAL with disclosures being based on the public
financial statements of UC RUSAL. All adjustments made to UC RUSAL, including any adjustments
arising from different timing of IFRS first time adoption, are included in “Adjustments” column.
The Power assets of UC RUSAL are included within the Metals segment.
b)
Power. The Power segment mainly comprises the power assets, as described in note 1(b).
These business units are managed separately and the results of their operations are reviewed by the key
executive management personnel and Board of Directors on a regular basis.
274
20
(c) Movement in temporary differences during the year
USD million
Property, plant and equipment
Inventories
Trade and other receivables
Trade and other payables and
advances received
Tax loss carry-forwards
Others
1 January
2023
(1,305)
21
28
26
143
(37)
(1,124)
Recognised
in profit
or loss
Recognised
in other
comprehen-
sive income
Currency
translation
31 December
2023
(17)
5
(1)
9
(68)
282
210
−
−
−
−
−
−
−
199
(1)
(1)
(2)
(3)
(5)
187
(1,123)
25
26
33
72
240
(727)
Others comprise mostly deferred tax assets/(liabilities) arising on foreign exchange differences attributable
to various financial instruments.
Recognised
in profit
or loss
Recognised
in other
comprehen-
sive income
USD million
Property, plant and equipment
Inventories
Trade and other receivables
Trade and other payables and
advances received
Tax loss carry-forwards
Others
1 January
2022
(1,153)
58
29
23
90
39
(914)
14
(37)
(1)
3
48
(81)
(54)
Recognised tax losses expire in the following years:
Year of expiry
Without expiry
(d) Unrecognised deferred taxes
Currency
translation
31 December
2022
(34)
−
−
−
5
5
(1,305)
21
28
26
143
(37)
(132)
−
−
−
−
−
(132)
(24)
(1,124)
31 December
2023
USD million
31 December
2022
USD million
72
72
143
143
At 31 December 2023 and 2022 the Group has not recognized deferred tax in respect to temporary differences
associated with investments in subsidiaries as the Group is able to control the timing of reversal of those
investments and does not intend to reverse them in the foreseeable future.
At 31 December 2023 and 2022 the Group has not recognized deferred tax in respect to temporary differences
associated with investments in associates and joint ventures as both distribution of dividends and profit on
sales are non-taxable.
Deferred tax assets have not been recognised in respect of the following items:
Deductible temporary differences
Tax loss carry-forwards
31 December
2023
USD million
31 December
2022
USD million
1,086
841
1,927
1,040
748
1,788
275
275
32
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Deferred tax assets have not been recognised in respect of these items because it is not probable that future
taxable profits will be available against which the Group can utilise the benefits therefrom. Tax losses expire
in the following years:
Year of expiry
Without expiry
From 6 to 10 years
31 December
2023
USD million
31 December
2022
USD million
841
−
841
745
3
748
(e) Current taxation in the consolidated statement of financial position represents
Net income tax (receivable)/payable at the beginning of the year
Income tax for the year (including windfall tax)
Income tax paid (including windfall tax)
Translation difference
Represented by:
Income tax payable (note 15(d))
Income tax receivable
Net income tax payable/(receivable)
(f) Windfall tax
31 December
2023
USD million
31 December
2022
USD million
(18)
370
(365)
47
34
48
(14)
34
44
553
(599)
(16)
(18)
199
(217)
(18)
On 4 August 2023, Federal Law No. 414-FZ On Windfall Tax was adopted. The Law establishes the
procedure for determining and paying a one-off tax on excess (windfall) profits.
The tax base for windfall tax is determined as the amount by which the arithmetic mean of profits for
2021-2022 exceeds that for 2018-2019. The tax rate is 10%. The tax is payable before 28 January 2024.
The Law also provides for the option of an early security payment to be made between 1 October and
30 November 2023. The security payment will form a tax credit that the taxpayer can use to reduce the tax.
The amount of such tax credit cannot exceed ½ of the amount of tax payable. The tax credit is assumed to be
zero if the advance payment is refunded (in full or in part) upon the taxpayer’s claim. This effectively allows
reducing the tax rate to 5%.
The Group has applied the option of reducing the tax amount by making an early security payment. Therefore,
in these consolidated financial statements, the Group recognized a windfall tax liability in the amount of
USD 58 million within both current income tax expense and current tax liability, which has been settled with
the security payment advance at the reporting date.
11. Property, plant and equipment
(a) Accounting policy
(i)
Recognition and measurement
Until 1 January 2016 all items of property, plant and equipment were measured at cost less accumulated
depreciation and impairment losses. The cost of property, plant and equipment at 1 January 2004, the date of
transition to IFRSs, was determined by reference to its fair value at that date. Since 1 January 2016 the
Group’s hydro assets are measured at a revalued amount.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the
asset to a working condition for its intended use, the costs of dismantling and removing the items and
restoring the site on which they are located and capitalised borrowing costs. Purchased software that is
integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
The cost of periodic relining of electrolysers is capitalised and depreciated over the expected production period.
Gains or losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised net
within gain/(loss) on disposal of property, plant and equipment in profit or loss.
Hydro assets are a class of property, plant and equipment with unique nature and use in their hydropower
plants. The Group’s hydro assets are measured at a revalued amount, being their fair value at the date of the
revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made based on periodic valuation by an external independent valuer.
A class of assets may be revalued on a rolling basis provided that revaluations of the class of assets are
completed within a short period and provided the revaluations are kept up to date.
A revaluation increase on hydro assets is recognised directly under the heading of revaluation surplus in other
comprehensive income. However, the increase is recognised in profit or loss to the extent that it reverses a
revaluation decrease of the same asset previously recognised in profit or loss. A revaluation decrease on
hydro assets is recognised in profit or loss. However, the decrease is recognised in other comprehensive
income to the extent of any credit balance existing in the revaluation surplus.
(ii) Subsequent costs
The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount
of the item if it is probable that the future economic benefits embodied within the part will flow to the Group
and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of
the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
(iii) Exploration and evaluation assets
Exploration and evaluation activities involve the search for mineral resources, the determination of technical
feasibility and the assessment of commercial viability of an identified resource. Exploration and evaluation
activities include:
Researching and analysing historical exploration data;
Gathering exploration data through topographical, geochemical and geophysical studies;
Exploratory drilling, trenching and sampling;
Determining and examining the volume and grade of the resource;
Surveying transportation and infrastructure requirements; and
Conducting market and finance studies.
Administration costs that are not directly attributable to a specific exploration area are charged to profit or loss.
License costs paid in connection with a right to explore in an existing exploration area are capitalised and
amortised over the term of the permit.
276
33
34
277
277
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(b) Disclosure
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Exploration and evaluation expenditure is capitalised as exploration and evaluation assets when it is expected
that expenditure related to an area of interest will be recouped by future exploitation, sale, or, at the reporting
date, the exploration and evaluation activities have not reached a stage that permits a reasonable assessment of
the existence of commercially recoverable ore reserves. Capitalised exploration and evaluation expenditure is
recorded as a component of property, plant and equipment at cost less impairment losses. As the asset is not
available for use, it is not depreciated. All capitalised exploration and evaluation expenditure is monitored for
indications of impairment. Where there are indicators of potential impairment, an assessment is performed for
each area of interest in conjunction with the group of operating assets (representing a cash-generating unit,
CGU) to which the exploration is attributed. Exploration areas at which reserves have been discovered but
which require major capital expenditure before production can begin are continually evaluated to ensure that
commercial quantities of reserves exist or to ensure that additional exploration work is underway or planned.
To the extent that capitalised expenditure is not expected to be recovered it is charged to profit or loss.
Exploration and evaluation assets are transferred to mining property, plant and equipment or intangible assets
when development is sanctioned.
(iv) Stripping costs
Expenditure relating to the stripping of overburden layers of ore, including estimated site restoration costs,
is included in the cost of production in the period in which it is incurred.
However, to the extent the benefit is improved access to ore, the Group recognises these costs as a non-current
asset, if only: (a) it is probable that the future economic benefit (improved access to the ore body) associated
with the stripping activity will flow to the entity; (b) the entity can identify the component of the ore body
for which access has been improved; and (c) the costs relating to the stripping activity associated with that
component can be measured reliably.
(v) Mining assets
Mining assets are recorded as construction in progress and transferred to mining property, plant and
equipment when a new mine reaches commercial production.
Mining assets include expenditure incurred for acquiring mineral and development rights and developing
new mining operations.
Mining assets include interest capitalised during the construction period, when financed by borrowings.
(vi) Depreciation
The carrying amounts of property, plant and equipment (including initial and any subsequent capital
expenditure) are depreciated to their estimated residual value over the estimated useful lives of the specific
assets concerned, or the estimated life of the associated mine or mineral lease, if shorter. Estimates of residual
values and useful lives are reassessed annually and any change in estimate is taken into account in the
determination of remaining depreciation charges. Leased assets are depreciated over the shorter of the lease
term and their useful lives. Land is not depreciated.
Any accumulated depreciation at the date of the revaluation is eliminated against the gross amount of the
assets, and the net amount is restated to the revalued amount of the asset.
The property, plant and equipment is depreciated on a straight-line or units of production basis over the
respective estimated useful lives as follows:
Hydro assets
Buildings and constructions
Machinery and equipment
Electrolysers
Mining assets
Other
278
predominantly 38 to 100 years;
10 to 50 years;
5 to 40 years;
4 to 15 years;
Units of production on proved and probable reserves;
1 to 30 years.
35
Disposals
Transfers
Revaluation of hydro assets
as at 31 December 2022
USD million
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the
Total
asset to a working condition for its intended use, the costs of dismantling and removing the items and
restoring the site on which they are located and capitalised borrowing costs. Purchased software that is
24,087
1,765
integral to the functionality of the related equipment is capitalised as part of that equipment.
Cost
1 January 2022
Additions
Acquired through business
Machinery
and
equipment
Construction
in progress
Land and
buildings
Mining
assets
Hydro
assets
Electrolysers
5,151
32
8,227
61
3,032
−
3,460
−
3,206
1,650
672
22
339
−
Other
combinations
33
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
(325)
−
separate items (major components) of property, plant and equipment.
19
(109)
400
−
(132)
9
−
(26)
(978)
9
(10)
27
5
(32)
202
−
(16)
295
−
−
45
25
combinations
Translation difference
At 31 December 2022
Additions
Acquired through business
−
(13)
3,298
464
197
4,166
−
90
8,688
−
83
5,441
464
The cost of periodic relining of electrolysers is capitalised and depreciated over the expected production period.
418
26,442
Gains or losses on disposal of an item of property, plant and equipment are determined by comparing the
1,557
proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised net
5
5
within gain/(loss) on disposal of property, plant and equipment in profit or loss.
(374)
(2,679)
496
−
Hydro assets are a class of property, plant and equipment with unique nature and use in their hydropower
(448)
(2,324)
23,001
8,435
plants. The Group’s hydro assets are measured at a revalued amount, being their fair value at the date of the
revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made based on periodic valuation by an external independent valuer.
−
(88)
(1,156)
(347)
3,702
−
(1,938)
179
(31)
1,508
−
(231)
416
(458)
5,193
−
−
15
(900)
3,281
−
(6)
31
(42)
372
−
(42)
19
(98)
510
−
38
3,890
−
11
582
−
12
377
Disposals
Transfers
Translation difference
At 31 December 2023
1,403
49
12
68
−
−
A class of assets may be revalued on a rolling basis provided that revaluations of the class of assets are
completed within a short period and provided the revaluations are kept up to date.
A revaluation increase on hydro assets is recognised directly under the heading of revaluation surplus in other
comprehensive income. However, the increase is recognised in profit or loss to the extent that it reverses a
revaluation decrease of the same asset previously recognised in profit or loss. A revaluation decrease on
hydro assets is recognised in profit or loss. However, the decrease is recognised in other comprehensive
income to the extent of any credit balance existing in the revaluation surplus.
36
(ii) Subsequent costs
The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount
of the item if it is probable that the future economic benefits embodied within the part will flow to the Group
and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of
the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
(iii) Exploration and evaluation assets
Exploration and evaluation activities involve the search for mineral resources, the determination of technical
feasibility and the assessment of commercial viability of an identified resource. Exploration and evaluation
activities include:
Researching and analysing historical exploration data;
Gathering exploration data through topographical, geochemical and geophysical studies;
Exploratory drilling, trenching and sampling;
Determining and examining the volume and grade of the resource;
Surveying transportation and infrastructure requirements; and
Conducting market and finance studies.
Administration costs that are not directly attributable to a specific exploration area are charged to profit or loss.
License costs paid in connection with a right to explore in an existing exploration area are capitalised and
amortised over the term of the permit.
34
279
279
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(764)
(c)
Impairment
10,117
11,607
10,472
37
Machinery
and
equipment
Mining
assets
Land and
buildings
Construction
in progress
Other
(42)
16
USD million
Hydro assets
(2,672)
(169)
(2,965)
(157)
(6,536)
(297)
Electrolysers
Depreciation and impairment
1 January 2022
Depreciation charge
(Impairment losses) / reversal of
Exploration and evaluation expenditure is capitalised as exploration and evaluation assets when it is expected
that expenditure related to an area of interest will be recouped by future exploitation, sale, or, at the reporting
date, the exploration and evaluation activities have not reached a stage that permits a reasonable assessment of
losses
the existence of commercially recoverable ore reserves. Capitalised exploration and evaluation expenditure is
recorded as a component of property, plant and equipment at cost less impairment losses. As the asset is not
4
impairment
available for use, it is not depreciated. All capitalised exploration and evaluation expenditure is monitored for
Disposals
12
indications of impairment. Where there are indicators of potential impairment, an assessment is performed for
Revaluation of hydro assets
−
as at 31 December 2022
each area of interest in conjunction with the group of operating assets (representing a cash-generating unit,
11
CGU) to which the exploration is attributed. Exploration areas at which reserves have been discovered but
(2,814)
which require major capital expenditure before production can begin are continually evaluated to ensure that
commercial quantities of reserves exist or to ensure that additional exploration work is underway or planned.
impairment
To the extent that capitalised expenditure is not expected to be recovered it is charged to profit or loss.
(22)
1,938
−
26
Exploration and evaluation assets are transferred to mining property, plant and equipment or intangible assets
(1,047)
when development is sanctioned.
Disposals
Transfers and reclassifications
Translation difference
At 31 December 2023
Depreciation charge
(Impairment losses) / reversal of
Translation difference
At 31 December 2022
(74)
350
−
300
(6,682)
(2)
221
(91)
234
(2,977)
(4)
4
(1)
28
(286)
(25)
6
−
91
(476)
(177)
46
92
125
(975)
−
−
−
5
(86)
−
(34)
(3,182)
−
(47)
(6,944)
−
(16)
(1,061)
−
(8)
(296)
−
(8)
(538)
186
(3)
−
(150)
86
(240)
−
(280)
(10)
(619)
(8)
(805)
−
(93)
(90)
(6)
8
87
10
(314)
(157)
(175)
(91)
(10)
(17)
−
−
−
Total
(13,970)
(731)
(347)
132
186
(105)
(14,835)
(304)
2,565
−
809
(12,529)
2,186
2,259
1,691
1,744
360
484
3,367
4,166
53
44
2,401
2,829
59
81
Net book value
At 1 January 2022
(iv) Stripping costs
At 31 December 2022
At 31 December 2023
Expenditure relating to the stripping of overburden layers of ore, including estimated site restoration costs,
is included in the cost of production in the period in which it is incurred.
2,216
1,753
461
3,195
34
2,727
86
However, to the extent the benefit is improved access to ore, the Group recognises these costs as a non-current
asset, if only: (a) it is probable that the future economic benefit (improved access to the ore body) associated
with the stripping activity will flow to the entity; (b) the entity can identify the component of the ore body
for which access has been improved; and (c) the costs relating to the stripping activity associated with that
component can be measured reliably.
(v) Mining assets
Mining assets are recorded as construction in progress and transferred to mining property, plant and
equipment when a new mine reaches commercial production.
Mining assets include expenditure incurred for acquiring mineral and development rights and developing
new mining operations.
Mining assets include interest capitalised during the construction period, when financed by borrowings.
(vi) Depreciation
The carrying amounts of property, plant and equipment (including initial and any subsequent capital
expenditure) are depreciated to their estimated residual value over the estimated useful lives of the specific
assets concerned, or the estimated life of the associated mine or mineral lease, if shorter. Estimates of residual
values and useful lives are reassessed annually and any change in estimate is taken into account in the
determination of remaining depreciation charges. Leased assets are depreciated over the shorter of the lease
term and their useful lives. Land is not depreciated.
Any accumulated depreciation at the date of the revaluation is eliminated against the gross amount of the
assets, and the net amount is restated to the revalued amount of the asset.
The property, plant and equipment is depreciated on a straight-line or units of production basis over the
respective estimated useful lives as follows:
Hydro assets
Buildings and constructions
Machinery and equipment
Electrolysers
Mining assets
Other
280
predominantly 38 to 100 years;
10 to 50 years;
5 to 40 years;
4 to 15 years;
Units of production on proved and probable reserves;
1 to 30 years.
35
Depreciation expense of USD 707 million (2022: USD 670 million) has been charged to cost of goods sold,
USD 6 million (2022: USD 7 million) to distribution expenses and USD 30 million (2022: USD 23 million)
to administrative expenses.
Interest capitalised for the years ended 31 December 2023 and 31 December 2022 was USD 60 million and
USD 39 million, respectively. The average capitalisation rate was 7.49% (2022: 6.67%).
Included in construction in progress at 31 December 2023 and 31 December 2022 are advances to suppliers
of property, plant and equipment of USD 249 million and USD 164 million, respectively.
Management reviewed the carrying amount of the Group’s non-financial assets at the reporting date to
determine whether there were any indicators of impairment or reversal of impairment.
Management identified that due to fluctuations of aluminium prices, increase of oil and gas prices,
fluctuations of coal sale prices and additional volumes of electricity transmission set in further periods and
overall market instability impairment loss may be recognised for a number of cash-generating units as well
as previously recognised impairment loss may require reversal. For alumina cash generating units, major
influence was from unfavourable dynamics in prices of energy resources being a significant part of cash cost.
For the purposes of impairment testing, value in use of each cash generating unit was determined by
discounting expected future net cash flows of the cash generating unit. Values assigned to key assumptions
and estimates used to measure the units’ recoverable amount was based on external sources of information
and historical data. Management believes that the values assigned to the key assumptions and estimates
represented the most realistic assessment of future trends.
Metals
At 31 December 2023 and 31 December 2022 management identified several indicators that a number of the
Group’s CGUs may be impaired or that previously recognised impairment losses may need to be reversed.
Based on results of impairment testing as at 31 December 2023, management has concluded that a reversal
of previously recognised impairment loss relating to property, plant and equipment should be recognised in
these consolidated financial statements in respect of RUSAL Sayanal, Kremny and Rusal Silicon Ural in the
amount of USD 117 million. Additionally management concluded that at the same date an impairment loss
relating to property, plant and equipment of Kubikenborg Aluminium (Kubal) and Taishet aluminium smelter
in the amount of USD 270 million should be recognised in these consolidated financial statements.
Based on results of impairment testing as at 31 December 2022, management has concluded that an
impairment loss relating to property, plant and equipment of RUSAL Sayanal and PGLZ in the amount of
USD 85 million should be recognised in these consolidated financial statements.
Assumptions used to determine the recoverable amount of the cash generating units are the same as disclosed
in note 12(d). The pre-tax discount rates applied to the above mentioned cash generating units, estimated in
nominal terms based on an industry weighted average cost of capital, are presented in the table below.
Taishet aluminium smelter
RUSAL Sayanal
PGLZ
Kremny
RUSAL Silicon Ural
Kubal
Year ended 31 December
2023
2022
18.7%
21.9%
16.6%
19.7%
19.8%
14.5%
16.0%
14.3%
14.3%
14.3%
14.3%
13.1%
The recoverable amounts of a number of the cash generating units tested for impairment are particularly
sensitive to changes in forecast aluminium and alumina prices, foreign exchange rates and applicable
discount rates.
38
281
281
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
The results of impairment testing of Taishet aluminium smelter are particularly sensitive to the following key
assumptions:
The recoverable amount of Coal CHP CGU is particularly sensitive to changes in forecast electricity and coal
sales prices, forecast of sales volumes as well as applicable discount rates.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Five percent reduction in the projected aluminium price level will result in a decrease in the
recoverable amount of Taishet aluminium smelter and will lead to an additional impairment in the total
amount of USD 566 million;
One percent increase in the discount rate applied will result in a decrease in the recoverable amount of
Taishet aluminium smelter and will lead to an additional impairment in the total amount of
USD 327 million.
Additionally, management identified specific items of property, plant and equipment that are no longer in
use and therefore are not considered to be recoverable amounting to USD 111 million at 31 December 2023
(2022: USD 99 million). These assets have been impaired in full. No further impairments of property, plant
and equipment or reversal of previously recorded impairment were identified.
Power
At 31 December 2023 and 2022 management identified several indicators that property, plant and equipment
of the Coal CHPs and Irkutsk GridCo CGUs may be impaired.
Based on results of impairment testing as at 31 December 2023, management concluded that no impairment
losses should be recognised. Based on results of impairment testing as at 31 December 2022, management
concluded that impairment losses of USD 23 million and USD 29 million regarding Irkutsk GridCo and Coal
CHPs CGUs, respectively, should be recognized.
The following key assumptions were used to determine the recoverable amount of the Irkutsk GridCo CGU:
Sales volumes of electricity transmission in 2024/2023
Expected growth of sales volumes till 2033/2032
Tariffs for electricity transmission in 2024/2023
Tariffs growth till 2033/2032
Pre-tax discount rate
Year ended 31 December
2023
55 mln MWh
19%
USD 5-8
(RUB 471-748)
49%
15%-19.8%
2022
54 mln MWh
11%
USD 6-10
(RUB 442-726)
50%
15%-15.6%
The anticipated price/tariffs growth included in the cash flow projections for the years from 2024 to 2033 have
been based on the publicly available forecasts of Ministry of Economic Development of the Russian Federation.
The recoverable amounts estimated at 31 December 2023 and 31 December 2022 include cash flows from
sales of electricity transmission to Taishet aluminium smelter.
The recoverable amount of the Irkutsk GridCo CGU is also particularly sensitive to changes in forecast
electricity transmission volumes and tariffs, as well as applicable discount rates.
The following key assumptions were used to determine the recoverable amount of the Coal CHPs CGU:
Electricity sales volumes in 2024/2023
Electricity sales volumes growth till 2033/2032
Electricity sales prices in 2024/2023
Electricity sales prices growth till 2033/2032
Sales volumes of heat in 2024-2033/2023-2032
Heat tariffs in 2024/2023
Tariffs growth till 2033/2032
Sales volumes of coal in 2024/2023
Expected growth of sales volumes of coal till 2033/2032
Weighted average price for coal in 2024/2023
Weighted average price growth after 2024/2023
Pre-tax discount rate
282
Year ended 31 December
2023
2022
36 mln MWh
15%
USD 8-27
(RUB 690-2,420)
42%-50%
20 mln Gcal
USD 16 (RUB 1,453)
48%
15,907 ths tonnes
8%
USD 14 (RUB 1,225)
3%-8%
15.6%-20.4%
34 mln MWh
6%
USD 10-31
(RUB 684-2,204)
48%-52%
20 mln Gcal
USD 20 (RUB 1,375)
63%
15,846 ths tonnes
(3)%
USD 17 (RUB 1,177)
1%-9%
15.7%
39
Additionally, management identified specific items of property, plant and equipment that are not considered
to be recoverable amounting to USD 41 million (2022: USD 122 million). No further impairment of property,
plant and equipment or reversal of previously recorded impairments was identified.
(d) Security
The carrying value of property, plant and equipment pledged under the loan agreements was USD 125 million
at 31 December 2023 (31 December 2022: USD 53 million) (note 17).
(e) Hydro assets
As disclosed in note 11(a)(i), the Group regularly performs an independent valuation of its hydro assets. As at
31 December 2023 the valuation by external independent appraiser was not performed because based on
management’s analysis, the fair value of hydro assets approximated their carrying amount at that date. As at
31 December 2022 the independent appraiser estimated the fair value of hydro assets at USD 4,166 million
with an equity effect of USD 650 million and revaluation loss of USD nil million recognised in profit or loss.
The valuation analysis as at 31 December 2022 was primarily based on the cost approach to determine
depreciated replacement cost as it is the most reliable method to estimate value for assets that do not have an
active market and do not generate an identifiable revenue stream by asset. This method considers the cost to
reproduce or replace the property, plant and equipment, adjusted for physical depreciation, functional and
economic obsolescence.
Depreciated replacement cost was estimated based on internal sources and, where available, analysis of the
Russian and international markets for similar property, plant and equipment. Various market data were
collected from published information, catalogues, statistical data etc.
In addition, cash flow testing was conducted to identify if there is any economic obsolescence of the hydro
assets. Forecasts of net cash flows were determined based on the actual results for the preceding years and
approved budgets. Based on the analysis results as at 31 December 2022 economic obsolescence of
Onda HPP was recognised and included into results of valuation analysis. As at 31 December 2023 there was
no economic obsolescence.
The fair value measurement for hydro assets have been categorised as Level 3 fair values based on the inputs
to the valuation techniques used.
If the cost model is applied, net book value of hydro assets as at 31 December 2023 would be USD 328
million (31 December 2022: USD 409 million).
(f) Leases
The Group assesses whether a contract is or contains a lease based on whether the contract conveys a right
to control the use of an identified asset for a period of time in exchange for consideration. At inception or on
reassessment or modification of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone
prices. However, for the leases of properties in which Group acts as a lessee, the Group does not separate
non-lease components and account for the lease and non-lease components as a single lease component.
The Group applies judgement to determine the lease term for some lease contracts in which it is a lessee that
include renewal options, the assessment of whether the Group is reasonably certain to exercise such options
impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets
recognised.
In determining the enforceable period (i.e. the maximum lease term), the Group considers whether both it
and the lessor has a right to terminate the lease without permission from the other party and, if so, whether
that termination would result in more than an insignificant penalty. If a more than insignificant penalty exists,
then the enforceable period extends until the point at which a no more than an insignificant penalty exists.
40
283
283
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
The Group leases many assets, including land, properties and production equipment. The Group recognises
a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially
measured at cost and subsequently measured at cost less any accumulated depreciation and impairment losses
and adjusted for certain remeasurements of the lease liability as required by IFRS 16.
The cost comprises the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by
the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase
option. In that case the right-of-use asset is depreciated over the useful life of the underlying asset, which is
determined on the same basis as those of property and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The Group presents right-of-use assets as part of property plant and equipment in the same line item as it
presents underlying assets of the same nature that it owns. Additions to right-of-use assets were in the amount
of USD 28 million during the year ended 31 December 2023 (31 December 2022: USD 45 million).
The carrying amounts of right-of-use assets are presented below.
USD million
Balance at 1 January 2023
Balance at 31 December 2023
Land and
buildings
Property, plant and equipment
Machinery and
equipment
Total
42
43
23
13
65
56
Total depreciation charges related to the right-of-use assets for the year ended 31 December 2023 amount to
USD 19 million (31 December 2022: USD 17 million).
USD 3 million of right-of-use assets has been impaired during the year ended 31 December 2023
(31 December 2022: USD 2 million reversed). The Group’s total cash outflow for leases was in the amount
of USD 24 million for the year ended 31 December 2023 (31 December 2022: USD 25 million).
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing
rate as the discount rate.
In accordance with IFRS 16 variable payments which do not depend on index or rate, e.g. which do not
reflect changes in market rental rates, should not be included in the measurement of lease liability. In respect
of municipal or federal land leases where lease payments are based on cadastral value of the land plot and do
not change until the next revision of that value or the applicable rates (or both) by the authorities, the Group
has determined that, under the current revision mechanism, the land lease payments cannot be considered as
either variable that depend on index or rate or in-substance fixed, and therefore these payments are not
included in the measurement of the lease liability. Future cash outflows to which the Group is potentially
exposed that are not recognised in right-to-use assets and are not reflected in the measurement of lease
liabilities and which arise from variable lease payments not linked to index or rate are in the amount of
USD 136 million as at 31 December 2023 (31 December 2022: USD 218 million).
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease
payment made. It is remeasured when there is a change in future lease payments arising from a change in an
index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee,
or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain
to be exercised or a termination option is reasonably certain not to be exercised.
The Group presents lease liabilities as part of other payables and other non-current liabilities in the statement
of financial position depending on the period to which future lease payments relate. The total non-current part
of lease liabilities as at 31 December 2023 amounted to USD 49 million (31 December 2022: USD 49 million).
Total interest costs on leases recognised for the year ended 31 December 2023 amount to USD 6 million
(31 December 2022: USD 7 million).
The Group does not recognise right-of-use assets and lease liabilities for some leases of low-value assets
and short-term leases. The Group recognises the lease payments associated with these leases as an expense
on a straight-line basis over the lease term. The expense relating to short-term and low-value leases in the
amount of USD 21 million is included in cost of sales or administrative expenses depending on type of
underlying asset for the year ended 31 December 2023 (31 December 2022: USD 28 million).
When the Group is an intermediate lessor the sub-leases are classified with reference to the right-of the use
asset arising from the head lease, not with reference to the underlying asset.
12. Goodwill and intangible assets
(a) Accounting policy
(i) Goodwill
On the acquisition of a subsidiary that comprises a business, the identifiable assets, liabilities and contingent
liabilities of the acquired business (or interest in a business) are recognised at their fair values unless the fair
values cannot be measured reliably. Where the fair values of assumed contingent liabilities cannot be
measured reliably, no liability is recognised but the contingent liability is disclosed in the same manner as
for other contingent liabilities.
The Group accounts for business combinations using the acquisition method when the acquired set of
activities and assets meets the definition of a business and control is transferred to the Group. In determining
whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and
activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has
the ability to produce outputs.
The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an
acquired set of activities and assets is not a business. The optional concentration test is met if substantially
all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar
identifiable assets. If concentration test is met the acquired set of activities and assets is not a business.
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the
date on which control is transferred to the Group.
Goodwill arises when the cost of acquisition exceeds the fair value of the Group’s interest in the net fair
value of identifiable net assets acquired. The Group measures goodwill at the acquisition date as the fair
value of the consideration transferred; plus the recognised amount of any non-controlling interests in the
acquiree less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities
assumed. The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts are generally recognised in profit or loss. Transaction costs, other than those
associated with the issue of debt or equity securities, that the Group incurs in connection with a business
combination are expensed as incurred.
Goodwill is not amortised but is tested for impairment annually. For this purpose, goodwill arising on a
business combination is allocated to the cash-generating units expected to benefit from the acquisition and
any impairment loss recognised is not reversed even where circumstances indicate a recovery in value.
In respect of associates or joint ventures, the carrying amount of goodwill is included in the carrying amount
of the interest in the associate and joint venture and the investment as a whole is tested for impairment
whenever there is objective evidence of impairment. Any impairment loss is allocated to the carrying amount
of the interest in the associate and joint venture.
When the fair value of the Group’s share of identifiable net assets acquired exceeds the cost of acquisition,
the difference is recognised immediately in profit or loss.
284
41
42
285
285
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
(ii) Research and development
(b) Disclosure
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical
knowledge and understanding, is recognised in profit or loss when incurred.
Development activities involve a plan or design for the production of new or substantially improved products
and processes. Development expenditure is capitalised only if development costs can be measured reliably,
the product or process is technically and commercially feasible, future economic benefits are probable and
the Group intends to and has sufficient resources to complete development and to use or sell the asset. The
expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directly
attributable to preparing the asset for its intended use and capitalised borrowing costs. Other development
expenditure is recognised in profit or loss when incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated
impairment losses (refer to note 11(c)).
(iii) Other intangible assets
Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost
less accumulated amortisation and accumulated impairment losses (refer to note 11(c)).
(iv) Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure, including expenditure on internally generated
goodwill and brands, is recognised in profit or loss when incurred.
(v) Amortisation
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible
assets, other than goodwill, from the date that they are available for use. The estimated useful lives are as
follows:
Software
Other intangible assets
5 years;
2-8 years.
The amortisation method, useful lives and residual values are reviewed at each financial year end and
adjusted if appropriate.
USD million
Cost
Balance at 1 January 2022
Additions
Disposals
Foreign currency translation
Balance at 31 December 2022
Additions
Disposals
Foreign currency translation
Balance at 31 December 2023
Amortisation and impairment losses
Balance at 1 January 2022
Amortisation charge
Disposals
Foreign currency translation
Balance at 31 December 2022
Amortisation charge
Impairment
Disposals
Foreign currency translation
Balance at 31 December 2023
Net book value
At 1 January 2022
At 31 December 2022
At 31 December 2023
(c) Amortisation charge
Goodwill
Other intangible
assets
Total
2,490
135
−
44
2,669
6
−
(292)
2,383
(449)
−
−
−
(449)
−
(48)
−
−
(497)
2,041
2,220
1,886
645
51
(56)
13
653
37
(8)
(33)
649
(487)
(20)
54
(3)
(456)
(22)
3
7
19
(449)
158
197
200
3,135
186
(56)
57
3,322
43
(8)
(325)
3,032
(936)
(20)
54
(3)
(905)
(22)
(45)
7
19
(946)
2,199
2,417
2,086
The amortisation charge is included in cost of sales and administrative expenses in consolidated statement of
profit or loss and other comprehensive income.
(d)
Impairment testing of goodwill and other intangible assets
For the purposes of impairment testing, goodwill is allocated to following CGUs listed below. These units
represent the lowest level within the Group at which the goodwill is monitored for internal management purposes.
The aggregate carrying amounts of goodwill allocated to each business, and the related impairment losses
recognised, are as follows:
USD million
Aluminium Group of CGUs (Metals)
Angara HPPs (Power)
Allocated
goodwill
2023
2,156
227
2,383
Accumulated
impairment
loss
2023
(497)
−
(497)
Allocated
goodwill
2022
2,434
235
2,669
Accumulated
impairment
loss
2022
(449)
−
(449)
286
43
44
287
287
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Metals
The Aluminium Group of CGUs represents the lowest level within Metals segment at which goodwill is
monitored for internal management purposes. The recoverable amount represents value in use as determined
by discounting the future cash flows generated from the continuing use of the plants within UC RUSAL’s
aluminium segment.
Similar considerations to those described above in respect of assessing the recoverable amount of property,
plant and equipment apply to goodwill.
At 31 December 2023, management analysed changes in the economic environment and developments in the
aluminium industry and the Group’s operations since 31 December 2022 and performed an impairment test
for goodwill at 31 December 2023 using the following assumptions to determine the recoverable amount of
the Aluminium Group of CGUs :
Total production was estimated based on average sustainable production levels of 4.0 million metric
tonnes of primary aluminium, of 5.6 million metric tonnes of alumina and of 16.2 million metric tonnes
of bauxite. Bauxite and alumina will be used primarily internally for production of primary aluminium;
The aluminium and alumina prices were based on the long-term aluminium and alumina price outlook
derived from available industry and market sources and were as follows:
Aluminium sales prices, based on the long-term
aluminium price outlook, USD per tonne
Alumina sales prices, based on the long-term
alumina price outlook, USD per tonne
Nominal foreign currency exchange rates,
RUB per 1 USD
Inflation in RUB
Inflation in USD
2024
2025
2026
2027
2028
2,283
2,434
2,538
2,575
2,529
343
345
353
364
370
91.12
7.0%
2.8%
92.36
5.3%
2.3%
93.98
4.7%
2.3%
94.56
4.2%
2.0%
95.14
4.0%
2.0%
Operating costs were projected based on the historical performance adjusted for inflation. Nominal
foreign currency exchange rates applied to convert operating costs of the Group denominated in RUB
into USD and inflation in RUB and USD assumed in determining recoverable amounts were as above;
The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital
basis and was 20.28%;
A terminal value was derived following the forecast period assuming a 2.0% annual growth rate.
Values assigned to key assumptions and estimates used to measure the units’ recoverable amount were based
on external sources of information and historic data. Management believes that the values assigned to the
key assumptions and estimates represented the most realistic assessment of future trends. The results were
particularly sensitive to the following key assumptions:
A 5% reduction in the projected aluminium and alumina price levels would result in a decrease in the
recoverable amount by 18% but would not lead to an impairment;
A 5% increase in the projected level of electricity costs in the aluminium production would have
resulted in a 8% decrease in the recoverable amount but would not lead to an impairment;
Power
A 1% increase in the discount rate would have resulted in a 8% decrease in the recoverable amount
but would not lead to an impairment.
Based on results of impairment testing of goodwill, management concluded that no impairment regarding
Aluminium Group of CGUs should be recorded in the consolidated financial statements as at 31 December
2023.
At 31 December 2022, management analysed changes in the economic environment and developments in the
aluminium industry and the Group’s operations since 31 December 2021 and performed an impairment test
for goodwill at 31 December 2022 using the following assumptions to determine the recoverable amount of
the Aluminium Group of CGUs:
Total production was estimated based on average sustainable production levels of 3.8 million metric
tonnes of primary aluminium, of 5.4 million metric tonnes of alumina and of 16.5 million metric tonnes
of bauxite. Bauxite and alumina will be used primarily internally for production of primary aluminium;
The aluminium and alumina prices were based on the long-term aluminium and alumina price outlook
derived from available industry and market sources and were as follows:
Aluminium sales prices, based on the long-term
aluminium price outlook, USD per tonne
Alumina sales prices, based on the long-term
alumina price outlook, USD per tonne
Nominal foreign currency exchange rates,
RUB per 1USD
Inflation in RUB
Inflation in USD
2023
2024
2025
2026
2027
2,422
2,512
2,588
2,606
2,571
324
331
341
349
360
70.5
7.0%
4.3%
71.9
7.0%
2.2%
73.3
6.0%
1.9%
75.4
5.0%
2.0%
76.9
4.0%
2.0%
Operating costs were projected based on the historical performance adjusted for inflation. Nominal
foreign currency exchange rates applied to convert operating costs of the Group denominated in RUB
into USD and inflation in RUB and USD assumed in determining recoverable amounts were as above;
The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital
basis and was 17.5%;
A terminal value was derived following the forecast period assuming a 2.0% annual growth rate.
Values assigned to key assumptions and estimates used to measure the units’ recoverable amount were based
on external sources of information and historic data. Management believes that the values assigned to the
key assumptions and estimates represented the most realistic assessment of future trends. The results were
particularly sensitive to the following key assumptions:
A 5% reduction in the projected aluminium and alumina price levels would result in a decrease in the
recoverable amount by 13% but would not lead to an impairment;
A 5% increase in the projected level of electricity and alumina costs in the aluminium production
would have resulted in a 6% decrease in the recoverable amount but would not lead to an impairment;
A 1% increase in the discount rate would have resulted in a 8% decrease in the recoverable amount
but would not lead to an impairment.
Based on results of impairment testing of goodwill, management concluded that no impairment regarding
Aluminium Group of CGUs should be recorded in the consolidated financial statements as at 31 December
2022.
At Power segment goodwill primarily resulted from the acquisition of Angara HPPs. For the purposes of
impairment testing, goodwill is allocated to the Angara HPPs CGU. It represents the lowest level within the
Group at which goodwill is monitored for internal management purposes.
Management performs impairment testing of goodwill annually at 31 December of the respective calendar year.
The recoverable amount of Angara HPPs in 2023 and 2022 was determined by reference to its value in use
derived by discounting of the future cash flows generated from continuing use of production facilities.
288
45
46
289
289
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
The following key assumptions were used to determine the recoverable amount of the Angara HPPs
cash-generating unit at 31 December 2023:
The sales volumes were projected based on the approved budgets for 2024. In particular, the sales volumes
of electricity in 2024 were planned at the level of 58 million MWh with a decline by 15% till 2033;
Sales prices were based on the long-term price outlook derived from the available industry and market
sources. The prices for electricity were estimated at the levels of USD 0.6-12.0 (RUB 57-1,078) per
MWh depending on market segment in 2024 and increased by 43-56% respectively till 2033. Operating
costs were projected based on the historical performance and the anticipated increase during the
projected period was in line with inflation;
The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital
amounted to 15.6%-20.4%;
A terminal value was derived following the forecast period assuming a 4% annual growth rate.
The following key assumptions were used to determine the recoverable amount of the Angara HPPs
cash-generating unit at 31 December 2022:
The sales volumes were projected based on the approved budgets for 2023. In particular, the sales volumes
of electricity in 2023 were planned at the level of 55 million MWh with a decline by 10% till 2032;
Sales prices were based on the long-term price outlook derived from the available industry and market
sources. The prices for electricity were estimated at the levels of USD 0.7-12.4 (RUB 49-875)
per MWh depending on market segment in 2023 and increased by 48-62% respectively till 2032.
Operating costs were projected based on the historical performance and the anticipated increase during
the projected period was in line with inflation;
The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital
amounted to 15.7%;
A terminal value was derived following the forecast period assuming a 4% annual growth rate.
Reasonable possible changes in key assumptions did not lead to an impairment in either 2023 or 2022.
13.
Interests in associates and joint ventures
An associate is an entity in which the Group has significant influence, but not control or joint control, over
its management, including participation in the financial and operating policy decisions.
A joint venture is an arrangement whereby the Group and other parties contractually agree to share control
of the arrangement and have rights to the net assets of the arrangement.
An investment in an associate or a joint venture is accounted for in the consolidated financial statements
under the equity method, unless it is classified as held for sale (or included in a disposal group that is classified
as held for sale). Under the equity method, the investment is initially recorded at cost, adjusted for any excess
of the Group’s share of the acquisition-date fair values of the investee’s identifiable net assets over the cost
of the investment (if any). Thereafter, the investment is adjusted for the post acquisition change in the
Group’s share of the investee’s net assets and any impairment losses relating to the investment. Any
acquisition-date excess over cost, the Group’s share of the post-acquisition, post-tax results of the investees
and any impairment losses for the year are recognised in the consolidated statement of profit or loss and other
comprehensive income within profit or loss, whereas the Group’s share of the post-acquisition post-tax items
of the investees’ other comprehensive income is recognised in the other comprehensive income, the Group’s
share of the post-acquisition results recorded directly in the statement of changes in equity is recognized in
the consolidated statement of changes in equity as the share of other changes in equity of associate.
When the Group’s share of losses exceeds its interest in the associate or the joint venture, the Group’s interest
is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the investee.
Unrealised profits and losses resulting from transactions between the Group and its associates and joint
venture are eliminated to the extent of the Group’s interest in the investee, except where unrealised losses
provide evidence of an impairment of the asset transferred, in which case they are recognised immediately
in profit or loss.
If an investment in an associate becomes an investment in a joint venture or vice versa, retained interest is
not remeasured. Instead, the investment continues to be accounted for under the equity method.
In all other cases, when the Group ceases to have significant influence over an associate or joint control over
a joint venture, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or
loss being recognised in profit or loss. Any interest retained in that former investee at the date when
significant influence or joint control is lost is recognised at fair value and this amount is regarded as the fair
value on initial recognition of a financial asset.
An impairment loss in respect of an investment in an associate or joint venture is calculated as the difference
between its carrying amount after application of the equity method of accounting and its recoverable amount.
The recoverable amount of such investment is the greater of its value in use and its fair value less cost to sell.
In determining the value in use of the investment the Group estimates: (a) its share of the present value of
the estimated future cash flows expected to be generated by the investee, including the cash flows from the
operations of the investee and the proceeds on the ultimate disposal of the investment; or (b) the present value
of the estimated future cash flows expected to arise from the dividends to be received from the investee and
from its ultimate disposal depending on which available information with respect to each investee is more
reliable. An impairment loss is reversed to the extent that the recoverable amount of the investment subsequently
increases and the resulting carrying amount does not exceed the carrying amount that would have been
determined, after application of the equity method, had no impairment loss previously been recognised.
Balance at the beginning of the year
Group’s share of profits
Contribution
Dividends
Foreign currency translation
Balance at the end of the year
Goodwill included in interests in associates
31 December
2023
USD million
2022
USD million
5,194
752
5
(398)
(1,011)
4,542
1,982
4,028
1,553
8
(764)
369
5,194
2,404
The following list contains only the particulars of associates and joint ventures, all of which are corporate
entities, which principally affected the results or assets of the Group.
Name of associate /
joint venture
PJSC MMC
Norilsk Nickel
Queensland
Alumina Limited
BEMO project
Place of
incorporation
and operation
Particulars of issued
and paid up capital
Russian
Federation
Australia
Cyprus,
Russian
Federation
152,863,397 shares,
RUB 1 par value
2,212,000 shares,
AUD 2 par value
BOGES Limited and
BALP Limited –
10,000 shares EUR 1.71 each
* Interest attributable to the shareholders of the Parent Company.
Proportion of
ownership interest
Group’s
Group’s
nominal
effective
interest
interest*
15.01%
26.39%
11.38%
20%
28.44%
50%
Principal
activity
Nickel and other
metals production
Production of alumina
under a tolling agreement
Power /
aluminium production
290
47
48
291
291
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
The summary of the consolidated financial statements of associates and joint ventures for the year ended
31 December 2023 is presented below:
PJSC MMC
Norilsk Nickel
Queensland
Alumina Limited
BEMO project
Group
share
USD
million
Non-current assets
Current assets
Non-current liabilities
Current liabilities
5,952
1,938
(1,888)
(2,331)
100%
USD
million
16,238
7,342
(7,154)
(8,831)
Net assets
3,671
7,595
Group
share
USD
million
189
29
(80)
(138)
−
100%
USD
million
971
146
(388)
(693)
36
Group
share
USD
million
1,228
158
(676)
(50)
100%
USD
million
2,287
304
(1,352)
(101)
660
1,138
PJSC MMC
Norilsk Nickel
Queensland
Alumina Limited
BEMO project
Group
share
USD
million
100%
USD
million
Group
share
USD
million
3,803
14,409
118
629
2,870
Revenue
Profit/(loss) from
continuing operations
Other comprehensive
(loss)/income
(846)
(1,856)
Total comprehensive
(loss)/income
(217)
1,014
100%
USD
million
592
(20)
Group
share
USD
million
516
93
100%
USD
million
193
−
(162)
(324)
(20)
(69)
(131)
−
−
−
Other associates
and joint ventures
Group
share
USD
million
100%
USD
million
256
141
(100)
(86)
211
597
328
(202)
(175)
548
Other associates
and joint ventures
Group
share
USD
million
100%
USD
million
30
(3)
27
82
(3)
79
1,031
292
836
The summary of the consolidated financial statements of associates and joint ventures for the year ended
31 December 2022 is presented below:
PJSC MMC
Norilsk Nickel
Queensland
Alumina Limited
BEMO project
Group
share
USD
million
Non-current assets
Current assets
Non-current liabilities
Current liabilities
6,614
2,218
(2,517)
(2,029)
100%
USD
million
17,392
8,403
(9,539)
(7,689)
Net assets
4,286
8,567
Group
share
USD
million
182
27
(92)
(117)
−
100%
USD
million
1,053
163
(495)
(653)
68
Group
share
USD
million
1,367
201
(808)
(33)
100%
USD
million
2,559
391
(1,616)
(66)
727
1,268
PJSC MMC
Norilsk Nickel
Queensland
Alumina Limited
Group
share
USD
million
100%
USD
million
Group
share
USD
million
100%
USD
million
BEMO project
Group
share
USD
million
100%
USD
million
Other associates
and joint ventures
Group
share
USD
million
100%
USD
million
244
121
(110)
(74)
181
593
265
(220)
(133)
505
Other associates
and joint ventures
Group
share
USD
million
100%
USD
million
(a) PJSC MMC Norilsk Nickel
The Group’s investment in Norilsk Nickel is accounted for using equity method and the carrying value as at
31 December 2023 and 31 December 2022 amounted USD 3,671 million and USD 4,286 million, respectively.
The Group’s share of profit of Norilsk Nickel was USD 629 million, the foreign currency translation loss
was USD 846 million for the year ended 31 December 2023.
The Group’s share of profit of Norilsk Nickel was USD 1,440 million, the foreign currency translation gain
was USD 336 million for the year ended 31 December 2022.
The fair value of the investment amounted USD 7,273 million and USD 8,775 million as at
31 December 2023 and 31 December 2022, respectively, and is determined by multiplying the quoted bid
price per share on the Moscow Exchange on the year-end date by the number of shares held by the Group.
(b) Queensland Alumina Limited
The carrying value of the Group’s investment in Queensland Alumina Limited as at both 31 December 2023
and 31 December 2022 amounted to USD nil million. At 31 December 2023 management has not identified
any impairment reversal indicators relating to the Group’s investment in QAL and as a result no detailed
impairment testing was performed in relation to this investment.
(c) BEMO project
The carrying value of the Group’s investment in BEMO project as at 31 December 2023 and 31 December
2022 amounted USD 660 million and USD 727 million, respectively.
For the purposes of impairment testing, the BEMO project was separated into two cash generating units –
the Boguchansky Aluminium Smelter (“BoAZ’) and the Boguchansky Hydro Power Plant (“BoGES”). The
recoverable amount was determined by discounting the expected future net cash flows of each cash
generating unit.
At 31 December 2023 management has not identified any impairment indicators relating to the Group’s
investment in BoGES as well as any impairment reversal indicators relating to investments in BoAZ and as
a result no detailed impairment testing was performed in relation to this investment.
At 31 December 2023, accumulated losses of USD 57 million (2022: USD 73 million) related to BoAZ have
not been recognised because the Group’s investment has already been fully written down to USD nil million.
Additional financial information of the Group’s effective interest in BEMO project for the year ended
31 December 2023 and 31 December 2022 is presented below:
Cash and cash equivalents
Current financial liabilities
Non-current financial liabilities
Depreciation and amortisation
Interest income
Interest expense
Income tax expense
31 December
2023
USD million
31 December
2022
USD million
43
(1)
(548)
(54)
3
−
(29)
78
(1)
(633)
(66)
3
(6)
(25)
Revenue
Profit/(loss) from
continuing operations
Other comprehensive
income/(loss)
Total comprehensive
income/(loss)
4,454
16,876
110
1,440
5,854
336
920
1,776
6,774
−
−
−
550
(20)
(25)
(45)
678
102
29
131
1,356
285
821
14.
Inventories
210
56
266
11
4
15
51
11
62
49
Inventories are measured at the lower of cost and net realisable value.
The cost of inventories is determined under the weighted average cost method, and includes expenditure
incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing
them to their existing location and condition. In the case of manufactured inventories and work in progress,
cost includes an appropriate share of production overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost
of completion and selling expenses.
50
293
293
292
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
Production costs include mining and concentrating costs, smelting, treatment and refining costs, other cash
costs and depreciation and amortisation of operating assets.
increased significantly since initial recognition. The Group measures loss allowances for trade receivables at
an amount equal to lifetime ECLs.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Raw materials and consumables
Work in progress
Finished goods and goods for resale
31 December
2023
USD million
2022
USD million
1,404
779
1,392
3,575
1,634
887
1,862
4,383
Inventories at 31 December 2023 and 31 December 2022 are stated at the lower of cost and net realizable
value.
There were no inventory pledges as at 31 December 2023 and 31 December 2022.
15. Non-derivative financial instruments
Non-derivative financial instruments comprise investments in securities, trade and other receivables
(excluding prepayments and tax assets), cash and cash equivalents, loans and borrowings and trade and other
payables (excluding advances received and tax liabilities).
Non-derivative financial instruments, except for trade and other receivables, are recognised initially at fair value
plus any directly attributable transaction costs. Trade and other receivables are recognised at transaction price.
A financial instrument is recognised when the Group becomes a party to the contractual provisions of the
instrument. Financial assets are derecognised if the Group’s contractual rights to the cash flows from the
financial assets expire or if the Group transfers the financial asset to another party without retaining control
or substantially all risks and rewards of the asset. Financial liabilities are derecognised if the Group’s
obligations specified in the contract expire or are discharged or cancelled.
IFRS 9 Financial Instruments sets out requirements for recognising and measuring financial assets, financial
liabilities and some contracts to buy or sell non-financial items. The details of significant accounting policies
are set out below.
Classification and measurement of financial assets and financial liabilities
IFRS 9 specifies three principal classification categories for financial assets: measured at amortised cost, fair
value through other comprehensive income (“FVOCI”) and fair value through profit or loss (“FVTPL”). The
classification of financial assets under IFRS 9 is generally based on the business model in which a financial
asset is managed and its contractual cash flow characteristics. Under IFRS 9, derivatives embedded in
contracts where the host is a financial asset in the scope of the standard are never bifurcated. Instead, the
hybrid financial instrument as a whole is assessed for classification.
The Group’s financial assets mostly fall within the category of financial assets measured at amortised cost.
The only exception is derivative financial assets measured at fair value through profit or loss and cash flow
hedges accounted through other comprehensive income (note 19) and other investments measured at fair
value through profit or loss (note 15(h)). The Group’s financial liabilities fall within category of financial
liabilities measured at amortised cost
(a)
Impairment of trade receivables
Under IFRS 9, loss allowances (expected credit losses – “ECL”) are measured on either of the following bases:
12-month ECLs: these are ECLs that result from possible default events within the 12 months after
the reporting date; and
lifetime ECLs: these are ECLs that result from all possible default events over the expected life of
a financial instrument.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for bank balances for which
credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not
When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating ECLs, the Group considers reasonable and supportable information that is
relevant and available without undue cost or effort. This includes both quantitative and qualitative
information and analysis, based on the Group’s historical experience and informed credit assessment and
including forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than
30 days past due for Metals segment and more than 90 days past due for Power segment.
The Group considers a financial asset to be in default when:
The borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the
Group to actions such as realising security (if any is held); or
The financial asset is more than 90 days past due for Metals segment and more than 180 days past due
for Power segment, but additional analysis is conducted for each such receivable and assessment is
updated accordingly.
The maximum period considered when estimating ECLs is the maximum contractual period over which the
Group is exposed to credit risk.
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of
all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract
and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of
the financial asset in case of long-term assets.
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-
impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on
the estimated future cash flows of the financial asset have occurred.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount
of the assets. Impairment losses related to trade and other receivables are presented as part of net other
operating expenses.
The following analysis provides further detail about the calculation of ECLs related to trade receivables.
The Group uses an allowance matrix to measure the ECLs of trade receivables from the customers. Loss rates
are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through
successive stages of delinquency to write-off. The ECLs were calculated based on actual credit loss
experience over the past two years. The Group performed the calculation of ECL rates separately for the
customers of each key trading company of the Group. Exposures within each trading company were not
further segmented except for individually significant customers which bear specific credit risk depending on
the repayment history of the customer and relationship with the Group.
Metals
The following table provides information about determined ECLs rates for trade receivables both as at
1 January 2023 and 31 December 2023.
Current (not past due)
1-30 days past due
31-60 days past due
61-90 days past due
More than 90 days past due
Weighted-average loss rate
31 December
2023
1 January
2023
1%
21%
73%
93%
47%
1%
10%
50%
48%
38%
Credit-
impaired
No
No
No
No
Yes
294
51
52
295
295
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Power
The following table provides information about determined ECLs rates for trade receivables both as at
1 January 2023 and 31 December 2023.
Current (not past due)
1-90 days past due
90-180 days past due
More than 180 days past due
Weighted-average loss rate
31 December
2023
1 January
2023
1%
1%
30%
100%
1%
1%
30%
100%
Credit-
impaired
No
No
No
Yes
Fluctuations reflect differences between economic conditions during the period over which the historical data
has been collected, current conditions and the Group’s view of economic conditions over the expected lives
of the receivables.
Impairment losses in respect of trade receivables are recorded using an allowance account unless the Group
is satisfied that recovery of the amount is remote, in which case the impairment loss is written off against
trade receivables directly.
Power
Current
Past due 1-30 days
Past due 31-60 days
Past due 61-90 days
Past due 91-180 days
Past due over 180 days
Amounts past due
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
31 December
2023
USD million
2022
USD million
175
12
5
2
5
1
25
200
197
12
6
4
8
1
31
228
Trade receivables are on average due within 60 days from the date of billing. The receivables that are neither
past due nor impaired (i.e. current) relate to a wide range of customers for whom there was no recent history
of default.
Further details of the Group’s credit policy are set out in note 20(e).
(b) Trade and other receivables
(c) Prepayments and VAT recoverable
Trade receivables from third parties
Trade receivables from related parties, including
Related parties – companies capable of exerting significant influence
Related parties – associates and joint ventures
Other receivables from third parties
Dividends receivable from related parties
Related parties – associates and joint ventures
Impairment of receivables
(i)
Ageing analysis
31 December
2023
USD million
2022
USD million
1,127
45
33
12
192
412
412
1,776
(80)
1,696
1,295
50
45
5
235
−
−
1,580
(103)
1,477
Included in trade and other receivables are trade receivables (net of allowance for doubtful debts) with the
following ageing analysis as of the statement of financial position dates:
Metals
Current
Past due 1-30 days
Past due 31-60 days
Past due 61-90 days
Past due over 90 days
Amounts past due
296
31 December
2023
USD million
2022
USD million
804
29
1
−
65
95
899
842
122
42
1
31
196
1,038
53
VAT recoverable
Advances paid to third parties
Advances paid to related parties, including
Related parties – associates and joint ventures
Other taxes receivable
Other current assets
Impairment of prepayments and VAT recoverable
(d) Trade and other payables
Accounts payable to third parties
Accounts payable to related parties, including
Related parties – companies capable of exerting significant influence
Related parties – associates and joint ventures
Other payables and accrued liabilities
Dividends payable
Income tax payable
31 December
2023
USD million
2022
USD million
397
214
87
87
30
27
755
(135)
620
552
311
88
88
18
7
976
(156)
820
31 December
2023
USD million
2022
USD million
867
161
7
154
288
5
48
1,369
1,047
115
6
109
326
−
199
1,687
All of the trade and other payables are expected to be settled within one year or are repayable on demand.
54
297
297
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
(e) Advances received
(h)
Investments in equity securities measured at fair value through profit and loss
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Advances received from third parties
Advances received from related parties, including
Related parties – associates and joint ventures
31 December
2023
USD million
2022
USD million
339
−
−
339
296
13
13
309
Advances received represent contract liabilities to perform obligations under contracts with customers.
Advances received are short-term and revenue in respect of the contract liabilities recognized as at the
reporting date is fully recognized during next twelve months.
(f) Cash and cash equivalents
Bank balances, USD
Bank balances, RUB
Bank balances, EUR
Bank balances, CNY
Bank balances, other currencies
Cash in transit
Short-term bank deposits, USD
Short-term bank deposits, RUB
Short-term bank deposits, EUR
Short-term bank deposits, CNY
Other cash equivalents
Cash and cash equivalents in the consolidated statement
of cash flows
Restricted cash
Cash and cash equivalents in the consolidated statement
of financial position
(g) Other non-current assets
Long-term deposits
Prepayment for associate acquisition
Other non-current assets
31 December
2023
USD million
2022
USD million
166
617
163
792
30
−
349
106
103
13
6
2,345
2
2,347
120
1,544
81
112
22
17
700
133
89
626
30
3,474
3
3,477
31 December
2023
USD million
31 December
2022
USD million
124
13
166
303
125
−
186
311
Prepayment for acquisition of associate relates to the UC RUSAL’s arrangement to acquire 30% of share
capital of the alumina plant, located in China. In October 2023 UC RUSAL entered into a share-purchase
agreement to acquire the share in equity of Hebei Wenfeng New Materials Co., Ltd. All rights attached to
the interest acquired will be transferred to UC RUSAL subject to fulfilment of certain conditions, which are
expected to occur in 2024. The amount of prepayment comprises 5% of the estimated total consideration for
30% share in equity of Hebei Wenfeng New Materials Co., Ltd.
During the year 2023 Metals segment continued to acquire equity securities of RusHydro, 434,666,000 shares
were bought for a total consideration of USD 5 million. As at 31 December 2023 the Group’s nominal interest
in RusHydro shares was 9.73%. Investment is treated as equity securities measured at fair value through
profit and loss.
Fair value is estimated in accordance with Level 1 of the fair value hierarchy. The market value was
determined by multiplying the quoted bid price per share on the Moscow Exchange on reporting date by the
number of shares held by the Group.
16. Equity
(a)
Share capital, additional paid-in capital and transactions with shareholders
As at 31 December 2023 the Parent Company’s share capital is divided into 638,848,896 ordinary shares with
a nominal value of USD 0.00007 each. The Parent Company may also issue 75,436,818.286 ordinary shares.
As at 31 December 2023 and 31 December 2022 all issued ordinary shares were fully paid.
Change in effective interest in subsidiaries
In 2023 the Group acquired part of the non-controlling interest in certain Group subsidiaries for the total
consideration of USD 3 million.
In 2022, following consolidation of more than 95% of Irkutskenergo shares, the Group submitted a buyout
notice. As at 31 December 2022 the effective and nominal interest in Irkutskenergo held by the Group is
100.00%. Total consideration paid to non-controlling shareholders during 2022 amounted to USD 14 million.
(b) Other reserves
Other reserves represents the cost of Parent Company’s shares transferred by the Group to special financial
organisation, the cumulative unrealised actuarial gains and losses on the Group’s defined post-retirement
benefit plans, the effective portion of the accumulated net change in fair value of cash flow hedges and the
Group’s share of other comprehensive income of associates.
As at 31 December 2022 the Group held 21.37% of its own shares. In 2023, these shares were sold from the
Parent Company’s indirect subsidiary to special financial organisation. Under IFRS due to specific provisions
of the contracts disposed shares were not derecognised by the Group.
(c) Currency translation reserve
The currency translation reserve comprises all foreign exchange differences arising from the translation of
the consolidated financial statements of foreign subsidiaries, associates and joint ventures. The reserve is
dealt with in accordance with the accounting policies set out in note 3(b).
(d) Dividends
During the years ended 31 December 2023 and 31 December 2022 the Parent Company did not declare and
pay dividends.
In 2022 Metals segment declared dividends. In November 2022 dividends of USD 131 million were paid to
Group’s non-controlling shareholders.
The Parent Company may distribute dividends from retained earnings and profit for the reporting period in
compliance with the current legislation of the Russian Federation and the provisions of its Charter.
(e) Revaluation reserve
The revaluation reserve comprises the cumulative net change in the fair value of hydro assets at the reporting
date and is dealt with in accordance with the accounting policies set out in note 11(a)(i).
298
55
56
299
299
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
An independent valuation analysis of hydro assets was carried out as at 31 December 2022, the fair value of
hydro assets was estimated at USD 4,166 million (note 11(e)). As a result of this fair value valuation,
the Group recognised an additional revaluation reserve in the amount of USD 518 million net of tax.
(f) Non-controlling interests
USD million
UC RUSAL
2023
Other
subsidiaries
2023
Total
2023
UC RUSAL
2022
Other
subsidiaries
2022
Total
2022
Carrying amount of NCI
Profit/(loss) attributable to NCI
Other comprehensive (loss)/income
attributable to NCI
Total comprehensive (loss)/income
4,541
122
(679)
(557)
119
(2)
(34)
(36)
4,660
120
(713)
(593)
5,098
777
127
904
154
(14)
7
(7)
5,252
763
134
897
Current liabilities
Current portion of secured bank loans
Current portion of unsecured bank loans
Secured bank loans
Unsecured bank loans
Accrued interest
Bonds
The following table summarises the information relating to the UC RUSAL which has material non-
controlling interest:
(a) Loans and borrowings
USD million
NCI percentage
Assets
Liabilities
Net assets
Carrying amount of NCI
Revenue
Profit
Other comprehensive (loss)/income
Total comprehensive (loss)/income
Profit attributable to NCI
Other comprehensive (loss)/income attributable to NCI
Cash flows from/(used in) operating activities
Cash flows (used in)/from investing activities
Cash flows (used in)/from financing activities
Net (decrease)/increase in cash and cash equivalents
17. Loans and borrowings
UC RUSAL
2023
UC RUSAL
2022
43.1%
20,980
(10,448)
10,532
4,541
12,213
282
(1,575)
(1,293)
122
(679)
1,760
(1,030)
(1,747)
(1,017)
43.1%
24,147
(12,324)
11,823
5,098
13,974
1,793
294
2,087
777
127
(412)
472
1,415
1,475
This note provides information about the contractual terms of the Group’s loans and borrowings.
For more information about the Group’s exposure to interest rate and foreign currency risk refer to
notes 20(c)(ii) and 20(c)(iii), respectively.
Non-current liabilities
Secured bank loans
Unsecured bank loans
Bonds
300
31 December
2023
USD million
2022
USD million
3,366
1,499
3,612
8,477
5,333
858
3,511
9,702
57
Non-current liabilities
Secured bank loans
Variable
RUB – CBR + 1.50%
RUB – CBR + 1.90%
RUB – CBR + 2.00%
RUB – CBR + 3.15%
USD – 3M Libor + 1.70%
USD – 3M Libor + 2.10%
USD – 3M Libor + 3.00%
Fixed
CNY – fixed at 4.75%
RUB – fixed at 3.00%
Unsecured bank loans
Variable
RUB – CBR + 1.80-1.85%%
RUB – CBR + 1.95%-2.25%
RUB – CBR + 3.00%
CNY – LPR1Y +1.60%
EUR – 6M Euribor + 0.45%-0.67%
Fixed
RUB – fixed at 3.00%
CNY – fixed at 3.75%
CNY – fixed at 4.70%
Bonds
Current liabilities
Current portion of secured bank loans
Variable
RUB – CBR + 1.50%
RUB – CBR + 2.00%
RUB – CBR + 3.15%
USD – 3M Libor + 2.10%
USD – 3M Libor + 1.70%
Fixed
CNY – fixed at 4.75%
RUB – fixed at 3.00%
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
31 December
2023
USD million
2022
USD million
957
8
965
367
500
140
615
1,622
2,587
928
9
937
284
1,251
78
1,348
2,961
3,898
31 December
2023
USD million
2022
USD million
1,235
−
280
148
−
−
−
1,662
41
3,366
155
79
48
354
28
11
774
50
1,499
3,612
8,477
381
−
16
−
−
553
7
957
2,105
254
331
137
25
359
2,100
−
22
5,333
13
24
−
−
34
10
777
−
858
3,511
9,702
297
168
3
359
100
−
1
928
58
301
301
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
Current portion of unsecured bank loans
Variable
EUR – 6M Euribor + 0.45-0.67%
Fixed
RUB – other
Secured bank loans
Variable
USD – Term SOFR + Spread + 2.10%
USD – Term SOFR + Spread + 1.70%
Fixed
RUB – fixed at 3.00%
RUB – fixed at 11.00%
Unsecured bank loans
Variable
RUB – CBR + 1.10%-1.35%
RUB – CBR + 1.50%-1.98%
RUB – CBR + 2.00%-2.50%
CNY – LPR1Y +2.75%
Fixed
RUB – fixed at 18.75%
CNY – fixed at 4.20%
Accrued interest
Bonds
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
31 December
2023
USD million
2022
USD million
7
1
8
339
25
3
−
367
−
69
53
374
4
−
500
140
615
1,622
2,587
6
3
9
−
−
−
284
284
752
62
62
−
−
375
1,251
78
1,348
2,961
3,898
The bank loans are secured as at 31 December 2023 and 31 December 2022 by the following:
Rights, including all monies and claims, arising out of certain sales contracts between the Group’s
trading subsidiaries and its ultimate customers, were assigned to secure the syndicated Pre-Export
Finance Term Facility Agreement (PXF) dated 28 January 2021;
Properties, plant and equipment – refer to note 11(d);
Inventories – refer to note 14;
Shares of the Group companies as described below.
Metals
The nominal value of UC RUSAL’s loans and borrowings was USD 4,447 million at 31 December 2023
(31 December 2022: USD 4,883 million).
As at 31 December 2023 and 31 December 2022 the secured bank loans are secured by certain pledges of
shares of a number of UC RUSAL’s subsidiaries and 25% +1 share of Norilsk Nickel (Group’s associate).
Power
The nominal value of Power loans and borrowings was USD 2,371 million at 31 December 2023
(31 December 2022: USD 3,881 million).
As at 31 December 2023 and 31 December 2022 the secured bank loans are secured by certain pledges of
shares of a number of Parent Company’s subsidiaries, including LLC ESE–Hydrogeneration – 100%
(2022: 100%), JSC Irkutskenergo – 77.42% (2022: 77.42%) and JSC EuroSibEnergo – 50% + 1 share
(2022: 50% + 1 share). Additionally as at 31 December 2022 21.37% shares of the Parent Company and
100% shares of JSC Krasnoyarsk Hydro-Power Plant were pledged.
59
302
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(b) Bonds
As at 31 December 2023, the Group had outstanding (traded in the market) bonds denominated in RUB,
CNY, United Arab Emirates Dirhams and eurobonds denominated in USD:
Metals
Type
Series
Bond
Bond
Eurobond
Eurobond
Bond
Bond
Bond
Bond
Bond
Bond
Bond
Bond
Bond
Bond
BО-01
BО-001P-04
–
–
BО-05
BО-06
BО-001P-01
BО-001P-02
BО-001P-03
001PC-01
001PC-02
001PC-03
001PC-04
BО-001P-05
The number of
bonds traded in
the market
Nominal
value,
USD million
Nominal
interest rate
Put-option
date
Maturity
date
30,263
370,000
27,400
26,869
2,000,000
2,000,000
6,000,000
1,000,000
3,000,000
2,379,660
2,352,869
2,367,763
1,778,060
600,000
0.01%
–
5.95%
101
5.30%
28
4.85%
27
3.90%
280
3.90%
280
3.75%
841
140
3.95%
421 LPR1Y + 0.20%
3.75%
334
3.75%
330
3.75%
332
3.75%
249
6.70%
84
–
–
–
–
05.08.2024
05.08.2024
–
–
–
–
–
–
–
–
07.04.2026
05.09.2025
03.05.2023
01.02.2023
28.07.2027
28.07.2027
24.04.2025
23.12.2025
24.12.2025
07.03.2025
07.03.2025
07.03.2025
07.03.2025
08.05.2026
On 23 January 2023 the exchange-traded non-convertible interest-bearing RUB denominated bonds of
RUSAL Bratsk series BO-001P-02 were fully repaid.
On 8 February 2023 pursuant to the Extraordinary resolution of the noteholders UC RUSAL redeemed the
Eurobond with a coupon 4.85% to noteholders who hold Eurobond through National Settlement Depository
(“NSD”) and other Russian custodians being the NSD direct participants in the amount of USD 418 million.
The redemption to noteholders who hold Eurobond through foreign clearing and settlement systems will be
made in accordance with terms of the Extraordinary resolution of the noteholders.
On 16 May 2023 pursuant to the Extraordinary resolution of the noteholders UC RUSAL redeemed the
Eurobond with a coupon 5.3% to noteholders who hold Eurobond through NSD and other Russian custodians
being the NSD direct participants in the amount of USD 419 million. The redemption to noteholders who
hold Eurobond through foreign clearing and settlement systems will be made in accordance with terms of the
Extraordinary resolution of the noteholders.
On 6 June 2023 the exchange-traded non-convertible interest-bearing RUB denominated bonds of RUSAL
Bratsk series BO-002P-01 were fully repaid.
On 8 September 2023 UC RUSAL placed on the Moscow Stock Exchange exchange-traded non-documentary
interest-bearing non-convertible bonds series BO-001P-04 in the total amount of AED 370 million with
a coupon – 5.95%. The maturity of the bonds is 2 years.
On 23 October 2023 the exchange-traded non-convertible interest-bearing RUB denominated bonds of
RUSAL Bratsk series BO-001P-01 were fully repaid.
On 10 November 2023 the Company placed on the Moscow Stock Exchange exchange-traded non-documentary
interest-bearing non-convertible bonds series BO-001P-05 in the total amount of CNY 600 million with
a coupon – 6.70%. The maturity of the bonds is 2.5 years.
60
303
303
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Power
Type
Bond
Bond
Bond
Bond
The number of
bonds traded
in the market
Nominal value,
USD million
2,075,377
1,792,146
1,026,910
670,000
291
251
144
94
Nominal
interest
rate
4.45%
5.45%
5.45%
5.40%
Put-option
date
Maturity
date
−
−
−
−
22.12.2025
27.03.2026
22.05.2025
06.05.2026
Series
001PC-01
001PC-02
001PC-03
001PC-01
On 31 March 2023 the Power segment placed its second commercial non-convertible interest-bearing yuan
bonds series 001PC-02 in the total amount CNY 1,792,146,000 with a coupon rate fixed at 5.45% p.a.
Maturity of the bonds is March 2026.
On 10 May 2023 the Power segment placed the exchange-traded non-convertible interest-bearing yuan bonds
series 001PC-01 in the total amount CNY 670,000,000 with a coupon rate fixed at 5.40% p.a. Maturity of
the bonds is May 2026.
On 25 May 2023 the Power segment placed its third commercial non-convertible interest-bearing yuan bonds
series 001PC-03 in the total amount CNY 1,026,910,000 with a coupon rate fixed at 5.45% p.a. Maturity of
the bonds is May 2025.
As at 31 December 2023, the amount of accrued interest on bonds was USD 25 million (31 December 2022:
USD 48 million).
Total foreign exchange gain on bonds for the year ended 31 December 2022 accounted in other
comprehensive income as part of cash flow hedge result amounted to USD 96 million. In 2022 all existing
cash-flow relationships were ended and none were started in 2023.
18. Provisions
(a) Accounting policy
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The unwinding of the discount is recognised as finance costs.
(i)
Site restoration
The mining, refining and smelting activities of the Group can give rise to obligations for site restoration and
rehabilitation. Restoration and rehabilitation works can include facility decommissioning and dismantling,
removal or treatment of waste materials, land rehabilitation, and site restoration. The extent of work required
and the associated costs are dependent on the requirements of law and the interpretations of the relevant
authorities.
Provisions for the cost of each restoration and rehabilitation program are recognised at the time that
environmental disturbance occurs. When the extent of disturbance increases over the life of an operation, the
provision is increased accordingly. Costs included in the provision encompass obligated and reasonably
estimable restoration and rehabilitation activities expected to occur progressively over the life of the
operation and at the time of closure in connection with disturbances at the reporting date.
Routine operating costs that may impact the ultimate restoration and rehabilitation activities, such as waste
material handling conducted as an integral part of a mining or production process, are not included in the
provision. Costs arising from unforeseen circumstances, such as the contamination caused by unplanned
discharges, are recognised as an expense and liability when the event gives rise to an obligation which is
probable and capable of reliable estimation.
Restoration and rehabilitation provisions are measured at the expected value of future cash flows, discounted
to their present value and determined according to the probability of alternative estimates of cash flows
occurring for each operation. Discount rates used are specific to the country in which the operation is located.
Significant judgements and estimates are involved in forming expectations of future activities and the amount
and timing of the associated cash flows. Those expectations are formed based on existing environmental and
regulatory requirements.
When provisions for restoration and rehabilitation are initially recognised, the corresponding cost is
capitalised as an asset, representing part of the cost of acquiring the future economic benefits of the operation.
The capitalised cost of restoration and rehabilitation activities is amortised over the estimated economic life
of the operation on a units of production or straight-line basis. The value of the provision is progressively
increased over time as the effect of discounting unwinds, creating an expense recognised as part of finance
expenses.
Restoration and rehabilitation provisions are also adjusted for changes in estimates. Those adjustments are
accounted for as a change in the corresponding capitalised cost, except where a reduction in the provision is
greater than the unamortised capitalised cost, in which case the capitalised cost is reduced to nil and the
remaining adjustment is recognised in profit or loss. Changes to the capitalised cost result in an adjustment
to future amortisation charges. Adjustments to the estimated amount and timing of future restoration and
rehabilitation cash flows are a normal occurrence in light of the significant judgements and estimates
involved. Factors influencing those changes include revisions to estimated reserves, resources and lives of
operations; developments in technology; regulatory requirements and environmental management strategies;
changes in the estimated costs of anticipated activities, including the effects of inflation and movements in
foreign exchange rates; and movements in general interest rates affecting the discount rate applied.
(ii) Legal claim
In the normal course of business, the Group may be involved in legal proceedings. Where management
considers that it is more likely than not that proceedings will result in the Group compensating third parties,
a provision is recognised for the best estimate of the amount expected to be paid. Where management
considers that it is more likely than not that proceedings will not result in the Group compensating third
parties or where, in rare circumstances, it is not considered possible to provide a sufficiently reliable estimate
of the amount expected to be paid, no provision is made for any potential liability under the litigation but the
circumstances and uncertainties involved are disclosed as contingent liabilities. The assessment of the likely
outcome of legal proceedings and the amount of any potential liability involves significant judgement. As law
and regulations in many of the countries in which the Group operates are continuing to evolve, particularly
in the areas of taxation, sub-soil rights and protection of the environment, uncertainties regarding litigation
and regulation are greater than those typically found in countries with more developed legal and regulatory
frameworks.
304
61
62
305
305
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
(b) Disclosure
USD million
Pension
liabilities
Site
restoration
Provisions for
legal claims
Total
Actuarial valuation of pension liabilities
Metals
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Balance at 1 January 2022
Provisions made during the year
Provisions reversed during the year
Actuarial gain
Provisions used during the year
Effect of the passage of time
Change in estimates
Translation difference
Balance at 31 December 2022
Non-current
Current
Provisions made during the year
Provisions reversed during the year
Actuarial gain
Provisions used during the year
Effect of the passage of time
Change in estimates
Translation difference
Balance at 31 December 2023
Non-current
Current
(c) Pension liabilities
106
15
−
(11)
(8)
−
−
(1)
101
93
8
11
(5)
(8)
(6)
−
−
(17)
76
69
7
76
518
−
−
−
−
(1)
(112)
(6)
399
287
112
−
−
−
−
14
(3)
(26)
384
282
102
384
22
14
(4)
−
(6)
−
−
−
26
–
26
3
−
−
(11)
−
−
(3)
15
−
15
15
646
29
(4)
(11)
(14)
(1)
(112)
(7)
526
380
146
14
(5)
(8)
(17)
14
(3)
(46)
475
351
124
475
As at 31 December 2023, the pension liability is represented by UC RUSAL of USD 47 million
(31 December 2022: USD 60 million) and Power of USD 29 million (31 December 2022: USD 41 million).
The provision for pensions mainly comprises lump sum payments at retirement by aluminium plants located
in Russia, and by electricity generating companies. The Group also provides pension benefits to eligible
participants at facilities located outside of the Russian Federation.
Group subsidiaries in the Russian Federation
The Group voluntarily provides long-term and post-employment benefits to its former and existing
employees including death-in-service, jubilee, lump sum upon retirement, material support for pensioners
and death-in-pension benefits. Furthermore, the Group provides regular social support payments to some of
its veterans of World War II.
The above employee benefit programs are of a defined benefit nature. The Group finances these programs
on a pay-as-you-go basis, so plan assets are equal to zero.
Group subsidiaries outside the Russian Federation
At its Guinean entities the Group provides a death-in-service benefit and lump-sum benefits upon disability
and old-age retirement.
At its Guyana subsidiary, the Group provides a death-in-service benefit.
At its Italian subsidiary (Eurallumina) the Group only provides lump sum benefits upon retirement, which
relate to service up to 1 January 2007.
In Sweden (Kubikenborg Aluminium AB), the Group provides defined benefit lifelong and temporary
pension benefits. The lifelong benefits are dependent on the past service and average salary level of the
employee, with an accrual rate that depends on the salary bracket the employee is in. The liability relates
only to benefits accrued before 1 January 2004.
63
306
The key actuarial assumptions (weighted average, weighted by DBO) are as follows:
Discount rate
Future salary increases
Future pension increases
Staff turnover
Mortality
Disability
Power
31 December 2023
% per annum
11.4
8.5
1.7
4.9
USSR population table
for 1985
70% Munich Re
for Russia
31 December 2022
% per annum
9.5
8.6
5.0
4.7
USSR population table
for 1985, Ukrainian population
table for 2000
70% Munich Re
for Russia; 40% of death
probability for Ukraine
The principal assumptions used in determining pension obligations for the pension plans are shown below:
31 December 2023
% per annum
31 December 2022
% per annum
Discount rate
Future salary increases
Pension and inflation rate increases
11.8
7.0
5.5
10.1
6.2
4.7
As at 31 December 2023 and 31 December 2022 the Group’s obligations were fully uncovered as the Group
has only wholly unfunded plans.
(d) Site restoration and environmental provisions
The Group provides for site restoration obligations when there is a specific legal or constructive obligation
for mine reclamation, landfill closure (primarily comprising red mud basin disposal sites) or specific lease
restoration requirements. The Group does not record any obligations with respect to decommissioning of its
refining or smelting facilities and restoration and rehabilitation of the surrounding areas unless there is a
specific plan to discontinue operations at a facility. This is because any significant costs in connection with
decommissioning of refining or smelting facilities and restoration and rehabilitation of the surrounding areas
would be incurred no earlier than when the facility is closed and the facilities are currently expected to operate
over a term in excess of 50-100 years due to the perpetual nature of the refineries and smelters and continuous
maintenance and upgrade programs resulting in the carrying values of any such liabilities being negligible.
The site restoration provision relates primarily to mine reclamation and red mud basin disposal sites at
alumina refineries and ash dumps removal at coal burning electricity and heat generation stations.
The principal assumptions used in determining site restoration provision are:
Timing of cash outflows
31 December 2023
31 December 2022
2024: USD 102 million
2025-2029: USD 81 million
2030-2039: USD 116 million
after 2039: USD 418 million
2023: USD 111 million
2024-2028: USD 46 million
2029-2038: USD 156 million
after 2038: USD 456 million
Years required to fill the ash dumps
Discount rate for Coal CHPs CGU assets
after adjusting for inflation
Risk free discount rate for UC RUSAL
after adjusting for inflation
23.8
7.42%
3.55%
26.8
6.71%
3.63%
64
307
307
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
The risk free rate for the year 2022-2023 represents an effective rate, which comprises rates differentiated by
years of obligation settlement and by currencies in which the provisions were calculated.
Changes in the fair value of separated embedded derivatives and derivative financial instruments not
designated for hedge accounting are recognised immediately in profit or loss.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
At each reporting date management have assessed the provisions for site restoration and concluded that the
provisions and disclosures are adequate.
Disclosures
(e) Provisions for legal claims
The Group’s subsidiaries are subject to a variety of lawsuits and claims in the ordinary course of its business.
As at 31 December 2023, there were several claims filed against the Group’s subsidiaries contesting breaches
of contract terms and non-payment of existing obligations. Management has reviewed the circumstances and
estimated that the amount of probable outflow related to these claims should not exceed USD 15 million
(31 December 2022: USD 26 million).
At each reporting date management has assessed the provisions for litigation and claims and concluded that
the provisions and disclosures are adequate.
19. Derivative financial assets and liabilities
Accounting policies
The Group enters, from time to time, into various derivative financial instruments to manage its exposure to
commodity price risk, foreign currency risk and interest rate risk.
Embedded derivatives are separated from the host contract and accounted for separately if the economic
characteristics and risks of the host contract and the embedded derivative are not closely related, a separate
instrument with the same terms as the embedded derivative would meet the definition of a derivative and the
combined instrument is not measured at fair value through profit or loss.
On initial designation of the derivative as a hedging instrument, the Group formally documents the
relationship between the hedging instrument and hedged item, including the risk management objectives and
strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used
to assess the effectiveness of the hedging relationship. The Group makes an assessment, both at the inception
of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to
be highly effective in offsetting the changes in the fair value or cash flows of the respective hedged items
attributable to the hedged risk, and whether the actual results of each hedge are within a range of 80%-125%.
For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should
present an exposure to variation in cash flows that ultimately could affect reported profit or loss.
Derivatives are recognised initially at fair value; attributable transaction costs are recognised in profit or loss
when incurred. Subsequent to initial recognition, derivatives are measured at fair value.
The measurement of fair value of derivative financial instruments, including embedded derivatives, is based
on quoted market prices. Where no price information is available from a quoted market source, alternative
market mechanisms or recent comparable transactions, fair value is estimated based on the Group’s views on
relevant future prices, net of valuation allowances to accommodate liquidity, modelling and other risks
implicit in such estimates. Changes in the fair value therein are accounted for as described below.
When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows
attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast
transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative
is recognised in other comprehensive income and presented in the hedging reserve in equity. Any ineffective
portion of changes in the fair value of a derivative is recognised in profit or loss.
When the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying
amount of the asset when the asset is recognised. In other cases, the amount accumulated in equity is
reclassified to profit or loss in the same period that the hedged item affects profit or loss. If the hedging
instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, or
the designation is revoked, then hedge accounting is discontinued prospectively. If the forecast transaction is
no longer expected to occur, then the balance in equity is reclassified to profit or loss.
Forward contracts for aluminium and other instruments
Non-current
Current
31 December
2023
USD million
31 December
2022
USD million
32
32
13
19
168
168
90
78
Derivative financial instruments are recorded at their fair value at each reporting date. Fair value is estimated
in accordance with Level 3 of the fair value hierarchy based on management estimates and consensus
economic forecasts of relevant future prices, net of valuation allowances to accommodate liquidity,
modelling and other risks implicit in such estimates. The Group’s policy is to recognise transfers between
levels of fair value hierarchy as at the date of the event or change in circumstances that caused the transfer.
The movement in the balance of Level 3 fair value measurements of derivatives is as follows:
Balance at the beginning of the year
Unrealised changes in fair value recognised in statement of profit
or loss (finance expense) during the year
Unrealised changes in fair value recognised in other comprehensive
income (cash flow hedge) during the year
Realised portion of electricity, coke and raw material contracts and
cross currency swap
Balance at the end of the year
31 December
2023
USD million
2022
USD million
168
(99)
−
(37)
32
(64)
(191)
(131)
554
168
During the year 2023 there have been no changes in valuation techniques used to calculate the derivative
financial instruments compared to prior year.
Management believes that the values assigned to the key assumptions and estimates represented the most
realistic assessment of future trends. The results for the derivative instruments are not particularly sensitive
to any factors other than the assumptions disclosed above.
UC RUSAL sells products to various third parties at prices that are influenced by changes in London Metal
Exchange aluminium prices and Shanghai Futures Exchange (SHFE) aluminium prices. From time to time
UC RUSAL enters into forward sales and purchase contracts for a portion of its anticipated primary
aluminium sales and purchases to reduce the risk of prices fluctuations on these sales and purchases. The
results are accounted for as profit or loss from derivative financial instruments, and do not adjust with revenue
or purchases.
During the year ended 31 December 2023 the Group recognised a total net loss of USD 99 million in relation
to the above contracts (31 December 2022: USD 191 million). Unrealised changes in fair value recognised
in other comprehensive income (cash flow hedge) during 2022 were fully attributable to cross currency swaps
(note 17(b)).
308
65
66
309
309
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
20. Financial risk management and fair values
(a) Fair values
The methods used to estimate the fair values of the financial instruments are as follows:
Trade and other receivables, short-term investments, cash and cash equivalents, current loans and
borrowings and trade and other payables: the carrying amounts approximate fair value because of the
short maturity period of the instruments.
Investments in equity securities: measured at fair value through profit and loss, so, its carrying amount is
equal its fair value.
Long-term loans and borrowings, other non-current liabilities: the fair values of Eurobonds, RUSAL
Bratsk bonds, UC RUSAL bonds and Power bonds issued are approximate their carrying value. The fair
value of the loans and borrowings with fixed and floating interest rate as at 31 December 2023 and
31 December 2022 was calculated based on the present value of future principal and interest cash flows,
using discount interest rate that take into account the currency of the debt, expected maturity dates and credit
risks associated with the Group that existed at the reporting date.
Derivatives: the fair value of derivative financial instruments, including embedded derivatives, is based on
quoted market prices. Where no price information is available from a quoted market source, alternative
market mechanisms or recent comparable transactions, fair value is estimated based on the Group’s views on
relevant future prices, net of valuation allowances to accommodate liquidity, modelling and other risks
implicit in such estimates. The derivative financial instruments are recorded at their fair value at each
reporting date.
The following table presents the fair value of Group’s financial instruments measured at the end of the
reporting period on a recurring basis, as well as for instruments for which fair value is disclosed, categorised
into the three-level fair value hierarchy as defined by IFRS 13, Fair Value Measurement. The level into
which a fair value measurement is classified is determined with reference to the observability and
significance of the inputs used in the valuation technique as follows:
Level 1 valuations: fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in
active markets for identical assets or liabilities at the measurement date.
Level 2 valuations: fair value measured using Level 2 inputs i.e. observable inputs which fail to meet
Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which
market data are not available.
Level 3 valuations: fair value measured using significant unobservable inputs.
As at 31 December 2023
Changes in the fair value of separated embedded derivatives and derivative financial instruments not
designated for hedge accounting are recognised immediately in profit or loss.
Carrying amount
Fair value
Disclosures
Financial assets measured
at fair value
Forward contracts for aluminium
Derivatives
Note USD million
Loans and
receivables
USD million
Forward contracts for aluminium and other instruments
32
−
Other
financial
assets/
(liabilities)
USD million
−
32
−
−
340
340
and other instruments
Investments in equity securities
measured at fair value through
profit and loss
at fair value*
Non-current
Financial assets not measured
Current
Trade and other receivables
Short-term investments
Cash and cash equivalents
19
15
15
Total
USD million
32
340
372
1,732
97
2,347
4,176
−
−
−
−
−
Level 2
USD million
Level 1
31 December
USD million
2023
USD million
−
Level 3
31 December
USD million
2022
USD million
32
Total
USD million
32
32
13
19
−
−
−
1,732
97
2,347
4,176
340
340
−
−
−
−
168
168
90
78
32
340
372
1,732
97
2,347
4,176
−
32
−
−
−
−
15
Derivative financial instruments are recorded at their fair value at each reporting date. Fair value is estimated
in accordance with Level 3 of the fair value hierarchy based on management estimates and consensus
economic forecasts of relevant future prices, net of valuation allowances to accommodate liquidity,
modelling and other risks implicit in such estimates. The Group’s policy is to recognise transfers between
levels of fair value hierarchy as at the date of the event or change in circumstances that caused the transfer.
The movement in the balance of Level 3 fair value measurements of derivatives is as follows:
(6,697)
(2,450)
(1,321)
(6,812)
(4,252)
(1,321)
(6,812)
(4,252)
(1,321)
−
(1,698)
−
17
17
15
−
−
−
−
−
−
−
−
−
Financial liabilities not
measured at fair value*
Loans and borrowings
Unsecured bond issue
Trade and other payables
(6,697)
(4,148)
(1,321)
−
(12,385)
(12,385)
(1,698)
(10,468)
−
(12,166)
1,732
97
2,347
4,176
−
−
−
−
−
* The Group considers that the carrying amounts of short-term trade receivables and payables are a reasonable approximation of fair values.
2023
USD million
31 December
2022
USD million
(64)
(191)
(131)
554
168
68
Balance at the beginning of the year
Unrealised changes in fair value recognised in statement of profit
or loss (finance expense) during the year
Unrealised changes in fair value recognised in other comprehensive
income (cash flow hedge) during the year
Realised portion of electricity, coke and raw material contracts and
cross currency swap
Balance at the end of the year
168
(99)
−
(37)
32
During the year 2023 there have been no changes in valuation techniques used to calculate the derivative
financial instruments compared to prior year.
Management believes that the values assigned to the key assumptions and estimates represented the most
realistic assessment of future trends. The results for the derivative instruments are not particularly sensitive
to any factors other than the assumptions disclosed above.
UC RUSAL sells products to various third parties at prices that are influenced by changes in London Metal
Exchange aluminium prices and Shanghai Futures Exchange (SHFE) aluminium prices. From time to time
UC RUSAL enters into forward sales and purchase contracts for a portion of its anticipated primary
aluminium sales and purchases to reduce the risk of prices fluctuations on these sales and purchases. The
results are accounted for as profit or loss from derivative financial instruments, and do not adjust with revenue
or purchases.
During the year ended 31 December 2023 the Group recognised a total net loss of USD 99 million in relation
to the above contracts (31 December 2022: USD 191 million). Unrealised changes in fair value recognised
in other comprehensive income (cash flow hedge) during 2022 were fully attributable to cross currency swaps
(note 17(b)).
310
67
66
311
311
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
As at 31 December 2022
20. Financial risk management and fair values
Carrying amount
Fair value
(b) Financial risk management objectives and policies
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Loans and
receivables
USD million
Other
financial
assets/
(liabilities)
USD million
(a) Fair values
Financial assets measured
at fair value
Forward contracts for aluminium
and other instruments
Investments in equity securities
measured at fair value through
profit and loss
Level 2
The methods used to estimate the fair values of the financial instruments are as follows:
USD million
Derivatives
Note USD million
Level 1
USD million
Total
USD million
Level 3
USD million
Total
USD million
Trade and other receivables, short-term investments, cash and cash equivalents, current loans and
borrowings and trade and other payables: the carrying amounts approximate fair value because of the
−
168
short maturity period of the instruments.
168
168
168
19
−
−
−
459
Investments in equity securities: measured at fair value through profit and loss, so, its carrying amount is
627
equal its fair value.
459
627
−
168
459
459
459
459
−
168
−
−
15
−
Financial assets not measured
at fair value*
Trade and other receivables
Short-term investments
Cash and cash equivalents
15
15(b)
Long-term loans and borrowings, other non-current liabilities: the fair values of Eurobonds, RUSAL
1,492
50
Bratsk bonds, UC RUSAL bonds and Power bonds issued are approximate their carrying value. The fair
3,477
value of the loans and borrowings with fixed and floating interest rate as at 31 December 2023 and
5,019
31 December 2022 was calculated based on the present value of future principal and interest cash flows,
using discount interest rate that take into account the currency of the debt, expected maturity dates and credit
(8,809)
(4,842)
risks associated with the Group that existed at the reporting date.
(1,488)
1,492
50
3,477
5,019
1,492
50
3,477
5,019
1,492
50
3,477
5,019
−
(1,935)
−
(8,696)
(4,904)
(1,488)
(8,696)
(4,904)
(1,488)
(8,809)
(2,907)
(1,488)
17
17
15
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
Financial liabilities not
measured at fair value*
Loans and borrowings
Unsecured bond issue
Trade and other payables
−
−
* The Group considers that the carrying amounts of short-term trade receivables and payables are a reasonable approximation of fair values.
(15,088)
(15,139)
Derivatives: the fair value of derivative financial instruments, including embedded derivatives, is based on
quoted market prices. Where no price information is available from a quoted market source, alternative
market mechanisms or recent comparable transactions, fair value is estimated based on the Group’s views on
relevant future prices, net of valuation allowances to accommodate liquidity, modelling and other risks
implicit in such estimates. The derivative financial instruments are recorded at their fair value at each
reporting date.
(15,088)
(13,204)
(1,935)
−
The following table presents the fair value of Group’s financial instruments measured at the end of the
reporting period on a recurring basis, as well as for instruments for which fair value is disclosed, categorised
into the three-level fair value hierarchy as defined by IFRS 13, Fair Value Measurement. The level into
which a fair value measurement is classified is determined with reference to the observability and
significance of the inputs used in the valuation technique as follows:
69
Level 1 valuations: fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in
active markets for identical assets or liabilities at the measurement date.
Level 2 valuations: fair value measured using Level 2 inputs i.e. observable inputs which fail to meet
Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which
market data are not available.
Level 3 valuations: fair value measured using significant unobservable inputs.
The Group’s principal financial instruments comprise bank loans, bonds and trade payables. The main
purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various
financial assets such as trade receivables and cash and short-term deposits, which arise directly from its
operations.
The main risks arising from the Group’s financial instruments are cash flow interest rate risk, liquidity risk,
foreign currency risk and credit risk. Management reviews and agrees policies for managing each of these
risks which are summarised below.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group,
to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.
The Group, through its training and management standards and procedures, aims to develop a disciplined
and constructive control environment in which all employees understand their roles and obligations.
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising returns.
(i)
Tariffs and commodity price risk
The tariffs for electricity, heat and transmission services applied by the Group’s significant subsidiaries are
currently partially determined by government bodies. The Group cannot directly influence or mitigate the
risks in relation to the change in tariffs.
During the years ended 31 December 2023 and 31 December 2022, UC RUSAL has entered into certain
commodity derivatives contracts in order to manage its exposure of commodity price risks.
(ii)
Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-
term debt obligations with floating interest rates (note 17). The Group’s policy is to manage its interest costs
by monitoring changes in interest rates with respect to its borrowings.
The following table details the interest rate profile of the Group’s and the Company’s borrowings at the
reporting date.
31 December 2023
31 December 2022
Effective
interest rate
%
USD
million
Fixed rate loans and borrowings
Loans and bonds (note 17(a))
0.01%-18.75%
Variable rate loans and
borrowings
Loans and bonds (note 17(a))
3.65%-18.40%
6,909
6,909
4,015
4,015
10,924
Effective
interest rate
%
0.01%-11.0%
2.86%-10.0%
USD
million
5,904
5,904
7,618
7,618
13,522
312
67
70
313
313
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
The following table demonstrates the sensitivity to cash flows from interest rate risk arising from floating
rate non-derivative instruments held by the Group at the reporting date in respect of a reasonably possible
change in interest rates, with all other variables held constant. The impact on the Group’s profit before
taxation and equity and retained profits / accumulated losses is estimated as an annualized input on interest
expense or income of such a change in interest rates. The analysis has been performed on the same basis for
all years presented.
As at 31 December 2023
Basis percentage points
Basis percentage points
As at 31 December 2022
Basis percentage points
Basis percentage points
(iii) Foreign currency risk
Increase/
decrease in
basis points
Effect on profit
before taxation
for the year
USD million
Effect on equity
for the year
USD million
+100
-100
+100
-100
(40)
40
(76)
76
(32)
32
(61)
61
The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency
other than the respective functional currencies of group entities, primarily USD but also the RUB and EUR.
The currencies in which these transactions primarily are denominated are RUB, USD and EUR.
Borrowings are primarily denominated in currencies that match the cash flows generated by the underlying
operations of the Group, primarily USD but also RUB, EUR and CNY. This provides an economic hedge.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that
its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when
necessary to address short-term imbalances or entering into currency swap arrangements.
The Group’s exposure at the reporting date to foreign currency risk arising from recognised assets and
liabilities denominated in a currency other than the functional currency of the entity to which they relate is
set out in the table below. Differences resulting from the translation of the financial statements of foreign
operations into the Group’s presentation currency are ignored.
Denominated in
Changes in the fair value of separated embedded derivatives and derivative financial instruments not
other currencies
vs. USD functional
designated for hedge accounting are recognised immediately in profit or loss.
currency
31 December
USD-denominated
vs. RUB functional
currency
31 December
EUR-denominated
vs. USD functional
currency
31 December
RUB-denominated
vs. USD functional
currency
31 December
CNY-denominated
vs. RUR functional
currency
31 December
CNY-denominated
vs. USD functional
currency
31 December
USD million
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
19
−
168
−
253
−
(22)
−
(2)
−
−
−
Forward contracts for aluminium and other instruments
(53)
(1)
86
296
1,378
(684)
(46)
(405)
(372)
57
296
465
(193)
(51)
(1)
(364)
−
50
1
−
−
−
(1)
21
217
148
−
(3)
−
(94)
13
4
712
(3,768)
−
(3,292)
(36)
−
31 December
−
2023
666
(1,152)
USD million
−
(3,218)
−
−
1
1
−
−
(780)
32
−
−
−
31 December
−
20
2022
2
30
−
−
USD million
−
(1)
(292)
(101)
−
(62)
168
−
48
18
−
(2)
−
(58)
Disclosures
Non-current assets
Trade and other receivables
Cash and cash equivalents
Loans and borrowings
Non-current liabilities
Bonds
Trade and other payables
Net exposure arising from
recognised assets and
liabilities
Non-current
Current
50
(1)
209
253
363
289
(6,367)
(3,704)
32
(778)
13
19
(290)
(114)
168
90
78
6
Derivative financial instruments are recorded at their fair value at each reporting date. Fair value is estimated
in accordance with Level 3 of the fair value hierarchy based on management estimates and consensus
economic forecasts of relevant future prices, net of valuation allowances to accommodate liquidity,
modelling and other risks implicit in such estimates. The Group’s policy is to recognise transfers between
levels of fair value hierarchy as at the date of the event or change in circumstances that caused the transfer.
The movement in the balance of Level 3 fair value measurements of derivatives is as follows:
Balance at the beginning of the year
Unrealised changes in fair value recognised in statement of profit
or loss (finance expense) during the year
Unrealised changes in fair value recognised in other comprehensive
income (cash flow hedge) during the year
Realised portion of electricity, coke and raw material contracts and
cross currency swap
Balance at the end of the year
31 December
2023
USD million
2022
USD million
168
(99)
−
(37)
32
(64)
(191)
(131)
72
554
168
During the year 2023 there have been no changes in valuation techniques used to calculate the derivative
financial instruments compared to prior year.
Management believes that the values assigned to the key assumptions and estimates represented the most
realistic assessment of future trends. The results for the derivative instruments are not particularly sensitive
to any factors other than the assumptions disclosed above.
UC RUSAL sells products to various third parties at prices that are influenced by changes in London Metal
Exchange aluminium prices and Shanghai Futures Exchange (SHFE) aluminium prices. From time to time
UC RUSAL enters into forward sales and purchase contracts for a portion of its anticipated primary
aluminium sales and purchases to reduce the risk of prices fluctuations on these sales and purchases. The
results are accounted for as profit or loss from derivative financial instruments, and do not adjust with revenue
or purchases.
During the year ended 31 December 2023 the Group recognised a total net loss of USD 99 million in relation
to the above contracts (31 December 2022: USD 191 million). Unrealised changes in fair value recognised
in other comprehensive income (cash flow hedge) during 2022 were fully attributable to cross currency swaps
(note 17(b)).
314
71
66
315
315
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(iv) Foreign currency sensitivity analysis
The following tables indicate the change in the Group’s profit before taxation (and accumulated losses) and
other comprehensive income that could arise if foreign exchange rates to which the Group has significant
exposure at the reporting date had changed at that date, assuming all other risk variables remained constant.
Year ended 31 December 2023
USD million
Effect on profit
before taxation
for the year
USD million
Effect on equity
for the year
Change in
exchange rates
Depreciation of USD vs. RUB
Depreciation of USD vs. EUR
Depreciation of USD vs. CNY
Depreciation of USD vs. other currencies
Depreciation of CNY vs. RUB
15%
10%
5%
5%
15%
24
36
(318)
(6)
(117)
24
36
(318)
(6)
(93)
Depreciation of USD vs. RUB
Depreciation of USD vs. EUR
Depreciation of USD vs. CNY
Depreciation of USD vs. other currencies
Depreciation of CNY vs. RUB
Year ended 31 December 2022
USD million
Effect on profit
before taxation
for the year
USD million
Effect on equity
for the year
Change in
exchange rates
15%
10%
5%
5%
15%
38
29
(185)
−
(44)
38
29
(185)
−
(35)
Results of the analysis as presented in the above tables represent an aggregation of the effects on the Group
entities’ profit before taxation and other comprehensive income measured in the respective functional
currencies, translated into USD at the exchange rates ruling at the reporting date for presentation purposes.
The sensitivity analysis assumes that the change in foreign exchange rates had been applied to re-measure
those financial instruments held by the Group which expose the Group to foreign currency risk at the
reporting date. The analysis excludes differences that would result from the translation of financial statements
of foreign operations into the Group’s presentation currency. The analysis has been performed on the same
basis for all years presented.
(d) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s policy is to maintain sufficient cash and cash equivalents or have available funding through an
adequate amount of committed credit facilities to meet its operating and financial commitments.
The following tables show the remaining contractual maturities at the reporting date of the Group’s
non-derivative financial liabilities, which are based on contractual undiscounted cash flows (including
interest payment computed using contractual rates, or if floating, based on rates current at the reporting date)
and the earliest the Group can be required to pay:
31 December 2023
Contractual undiscounted cash outflow
More than
More than
2 years but
1 year but
less than
less than
5 years
2 years
USD
USD
million
million
More than
5 years
USD
million
Within
1 year or on
demand
USD
million
Total
USD
million
Carrying
amount
USD
million
1,156
161
768
2,424
36
4,545
4
−
3,280
2,962
58
6,304
−
−
437
3,337
−
3,774
−
−
−
360
−
360
1,160
161
4,485
9,083
94
14,983
1,160
161
4,227
6,837
−
12,385
31 December 2022
Contractual undiscounted cash outflow
More than
More than
2 years but
1 year but
less than
less than
5 years
2 years
USD
USD
million
million
More than
5 years
USD
million
Within
1 year or on
demand
USD
million
Total
USD
million
Carrying
amount
USD
million
1,372
115
1,156
2,928
40
5,611
1
−
698
1,465
79
2,243
−
−
3,014
5,942
−
8,956
−
−
−
271
−
271
1,373
115
4,868
10,606
119
17,081
1,373
115
4,859
8,741
−
15,088
Trade and other payables to
third parties
Trade and other payables to
related parties
Bonds
Loans and borrowings,
including interest payable
Other contractual obligations
Trade and other payables to
third parties
Trade and other payables to
related parties
Bonds
Loans and borrowings,
including interest payable
Other contractual obligations
At 31 December 2023 and 31 December 2022 the Group’s contractual undertaking to provide loans under
the loan agreement between Metals segment, PJSC RusHydro and BoAZ is included at maximum exposure
for the Group in the liquidity risk disclosure above.
(e) Credit risk
The Group trades only with recognised, creditworthy third parties. It is the Group’s policy that all customers
who wish to trade on credit terms are subject to credit verification procedures. The majority of the Group’s
third party trade receivables represent balances with the world’s leading international corporations operating
in the metals industry. In addition, receivable balances are monitored on an ongoing basis with the result that
the Group’s exposure to credit loss is not significant. Goods are normally sold subject to retention of title
clauses, so that in the event of non-payment the Group may have a secured claim. The Group does not require
collateral in respect of trade and other receivables. The details of impairment of trade and other receivables
are disclosed in note 15. Cash balances are held with high credit quality financial institutions. The extent of
the Group’s credit exposure is represented by the aggregate balance of financial assets and financial
guarantees and loan commitments given.
316
73
74
317
317
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
At 31 December 2023 and 31 December 2022, the Group has no concentration of credit risk within any single
largest customer but 9.3% and 27.0% of the total trade receivables were due from the Group’s five largest
customers.
21. Commitments
(a) Capital commitments
(f) Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. To maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. The Board of Directors monitors the return on capital,
which the Group defines as net operating income divided by total shareholders’ equity, excluding non-
controlling interests. The Board of Directors also monitors the level of dividends to ordinary shareholders.
The Board seeks to maintain a balance between higher returns that might be possible with higher levels of
borrowings and the advantages and security afforded by a sound capital position.
There were no changes in the Group’s approach to capital management during the year.
The Parent Company and its subsidiaries were subject to externally imposed capital requirements in the
both years presented in these consolidated financial statements.
(g) Master netting or similar agreements
The Group may enter into sales and purchase agreements with the same counterparty in the normal course of
business. The related amounts receivable and payable do not always meet the criteria for offsetting in the
statement of financial position.
The following table sets out the carrying amounts of recognised financial instruments that are subject to the
above agreements.
Year ended 31 December 2023
USD million
Trade receivables
USD million
Trade payables
Gross amounts
Net amounts presented in the statement of financial position
Amounts related to recognised financial instruments that do not meet
some or all of the offsetting criteria
Net amount
111
111
(37)
74
(107)
(107)
37
(70)
Year ended 31 December 2022
USD million
Trade receivables
USD million
Trade payables
Gross amounts
Net amounts presented in the statement of financial position
Amounts related to recognised financial instruments that do not meet
some or all of the offsetting criteria
Net amount
95
95
(47)
48
(112)
(112)
47
(65)
75
318
The Group had outstanding capital commitments which had been contracted for at 31 December 2023 and
31 December 2022 in the amount of USD 944 million and USD 787 million, including VAT, respectively.
These commitments are due over a number of years.
(b) Purchase commitments
Commitments with third parties for purchases of alumina, bauxite, other raw materials and other purchases
in 2024-2034 under supply agreements are estimated from USD 3,552 million to USD 4,480 million at
31 December 2023 (31 December 2022: USD 3,450 million to USD 5,169) depending on the actual purchase
volumes and applicable prices.
Commitments with related parties for purchases of primary aluminium, alloys and other purchases in
2024-2030 under supply agreements are estimated from USD 4,469 million to USD 6,029 million at
31 December 2023 (31 December 2022: USD 4,824 million to USD 7,283 million) depending on the actual
purchase volumes and applicable prices.
(c)
Sale commitments
Commitments with third parties for sales of alumina and other raw materials in 2024-2034 are estimated
to USD 691 million at 31 December 2023 (31 December 2022: from
from USD 560 million
USD 852 million to USD 1,275 million) and will be settled at market prices at the date of delivery. There are
no commitments with related parties for sales of alumina as at 31 December 2023 and 31 December 2022.
Commitments with related parties for sales of primary aluminium and alloys in 2023 are estimated from
USD 215 million to USD 262 million at 31 December 2023 (31 December 2022: from USD 149 million to
USD 182 million). Commitments with third parties for sales of primary aluminium and alloys in 2024-2028
are estimated to range from USD 5,269 million to USD 5,901 million at 31 December 2023 (31 December
2022: from USD 5,505 million to USD 8,386 million).
(d) Social commitments
The Group contributes to the maintenance and upkeep of the local infrastructure and the welfare of its
employees, including contributions toward the development and maintenance of housing, hospitals, transport
services, recreation and other social needs of the regions of the Russian Federation where the Group’s
production entities are located. The funding of such assistance is periodically determined by management
and is appropriately capitalised or expensed as incurred.
22. Contingencies
(a) Taxation
Russian tax, currency and customs legislation is subject to varying interpretations, and changes, which can
occur frequently. Management’s interpretation of such legislation as applied to the transactions and activities
of the Group may be challenged by the relevant local, regional and federal authorities. Recent developments
in the Russian environment suggest that the authorities in this country are becoming more active in seeking
to enforce, through the Russian court system, interpretations of the tax legislation, in particular in relation to
the use of certain commercial trading structures, which may be selective for particular tax payers and different
from the authorities’ previous interpretations or practices. Recent events within the Russian Federation
suggest that the tax authorities are taking a more assertive and substance-based position in their interpretation
and enforcement of tax legislation.
In addition to the amounts of income tax the Group has provided, there are certain tax positions taken by the
Group where it is reasonably possible (though less than 50% likely) that additional tax may be payable upon
examination by the tax authorities or in connection with ongoing disputes with tax authorities. The Group’s
best estimate of the aggregate maximum of additional amounts that it is reasonably possible (though less than
50% likely) may become payable if these tax positions were not sustained at 31 December 2023 is
USD 22 million (31 December 2022: USD 61 million).
76
319
319
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
(b) Environmental contingencies
The Group and its predecessor entities have operated in the Russian Federation, Jamaica, Guyana, the
Republic of Guinea and the European Union for many years and certain environmental problems have
developed. Governmental authorities are continually considering environmental regulations and their
enforcement and the Group periodically evaluates its obligations related thereto. As obligations are
determined, they are recognised immediately. The outcome of environmental liabilities under proposed or
any future legislation, or as a result of stricter enforcement of existing legislation, cannot reasonably be
estimated. Under current levels of enforcement of existing legislation, management believes there are no
possible liabilities, which will have a material adverse effect on the financial position or the operating results
of the Group. However, the Group anticipates undertaking significant capital projects to improve its future
environmental performance.
(c) Legal contingencies
The Group’s business activities expose it to a variety of lawsuits and claims which are monitored, assessed and
contested on an ongoing basis. Where management believes that a lawsuit or another claim would result in the
outflow of the economic benefits for the Group, a best estimate of such outflow is included in provisions in the
consolidated financial statements (note 18(e)). As at 31 December 2023, the amount of claims, where
management assesses outflow as possible approximates USD 25 million (31 December 2022: USD 33 million).
(d) Other contingent liabilities
In September 2013, UC RUSAL and PJSC RusHydro entered into an agreement with BoAZ to provide loans,
if the latter is unable to fulfil its obligations under its credit facilities. The aggregate exposure under the
agreement is limited to RUB 16.8 billion (31 December 2023 and 31 December 2022: USD 188 million and
USD 239 million, respectively) and is split between the Group and PJSC RusHydro in equal proportion.
Based on management’s estimates, the arising financial guarantees related to this arrangement are not
significant to the consolidated financial statements.
23. Related party transactions
(a) Accounting policy
(a) A person, or a close member of that person’s family, is related to the Group if that person:
(i) Has control or joint control over the Group;
(ii) Has significant influence over the Group; or
(iii)
Is a member of the key management personnel of the Group or the Group’s parent.
(b) An entity is related to the Group if any of the following conditions applies:
(i)
The entity and the Group are members of the same group (which means that each parent,
subsidiary and fellow subsidiary is related to the others);
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of
a member of a group of which the other entity is a member);
(iii) Both entities are joint ventures of the same third party;
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity;
(v) The entity is a post-employment benefit plan for the benefit of employees of either the Group
or an entity related to the Group;
(vi) The entity is controlled or jointly controlled by a person identified in (a);
(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity);
(viii) The entity, or any member of a group of which it is a part, provides key management personnel
services to the group or to the group’s parent.
Close members of the family of a person are those family members who may be expected to influence, or be
influenced by, that person in their dealings with the entity.
(b) Transactions with related parties
The Group transacts with related parties, the majority of which are capable of exerting significant influence
on the Metals segment, associates and joint ventures and other related parties.
Sales to related parties for the year are disclosed in note 5, receivables from and payables to related parties
are disclosed in note 15.
Purchases of raw materials and services from related parties for the period were as follows:
Purchase of raw materials
Companies capable of exerting significant influence
Associates and joint ventures
Energy costs
Companies capable of exerting significant influence
Associates and joint ventures
Other services
Associates and joint ventures
Year ended 31 December
2023
USD million
2022
USD million
(711)
(50)
(661)
(93)
(45)
(48)
−
−
(804)
(988)
(30)
(958)
(104)
(48)
(56)
(30)
(30)
(1,122)
(c) Related parties balances
At 31 December 2023, included in non-current liabilities are balances of related parties – associates and joint
ventures of USD 17 million (31 December 2022: USD 16 million).
(d) Remuneration to key management
For the year ended 31 December 2023 remuneration to key management personnel comprised short-term
benefits and amounted to USD 22 million from which Board members received USD 10 million (year ended
31 December 2022: USD 18 million from which Board members received USD 6 million).
24. Events subsequent to the reporting date
On 7 February 2024 UC RUSAL placed on the Moscow Stock Exchange exchange-traded non-documentary
interest-bearing non-convertible bonds series BO-001P-06 in the total amount of CNY 1.000 million with a
coupon – 7.20%. The maturity of the bonds is 2.5 years.
25. Accounting estimates and judgements
The Group has identified the following critical accounting policies under which significant judgements,
estimates and assumptions are made and where actual results may differ from these estimates under different
assumptions and conditions and may materially affect financial results of the financial position reported in
future periods.
320
77
78
321
321
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Property, plant and equipment – recoverable amount
In accordance with the Group’s accounting policy, each asset or cash generating unit is evaluated every
reporting period to determine whether there are any indications of impairment. If any such indication exists,
a formal estimate of recoverable amount is performed and an impairment loss is recognised to the extent that
carrying amount exceeds recoverable amount. The recoverable amount of an asset or cash generating group
of assets is measured at the higher of fair value less costs to sell and value in use.
Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length
transaction between knowledgeable and willing parties, and is generally determined as the present value of
the estimated future cash flows expected to arise from the continued use of the asset, including any expansion
prospects, and its eventual disposal.
Value in use is also generally determined as the present value of the estimated future cash flows, but only
those expected to arise from the continued use of the asset in its present form and its eventual disposal.
Present values are determined using a risk-adjusted pre-tax discount rate appropriate to the risks inherent in
the asset. Future cash flow estimates are based on expected production and sales volumes, commodity prices
(considering current and historical prices, price trends and related factors), reserves (refer “Reserve
estimates” below), operating costs, restoration and rehabilitation costs and future capital expenditure. This
policy requires management to make these estimates and assumptions which are subject to risk and
uncertainty; hence there is a possibility that changes in circumstances will alter these projections, which may
impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the
assets may be impaired and the impairment would be charged against the profit or loss.
Property, plant and equipment – hydro assets – fair value
In accordance with the Group’s accounting policy, hydro assets are carried at a revalued amount, being their fair
value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated
impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amount does not
differ materially from that which would be determined using fair value at the end of the reporting period.
The valuation analysis is primarily based on the cost approach to determine depreciated replacement cost.
This method considers the cost to reproduce or replace the property, plant and equipment, adjusted for
physical depreciation, functional and economic obsolescence.
This policy requires management to make estimates and assumptions regarding both costs, as there is no
active market for used assets of that type, and macroeconomic indicators to assess economic obsolescence
which are subject to risk and uncertainty; hence there is a possibility that changes in circumstances will alter
these estimates, which may impact the fair value of hydro assets. In such circumstances, the fair value of
hydro assets may be lower with any consequential decrease in revaluation reserve recognised through other
comprehensive income.
Inventories – net realisable value
The Group recognises write-downs of inventories based on an assessment of the net realisable value of the
inventories. A write-down is applied to the inventories where events or changes in circumstances indicate
that the net realisable value is less than cost. The determination of net realisable value requires the use of
judgement and estimates. Where the expectation is different from the original estimates, such a difference
will impact the carrying value of the inventories and the write-down of inventories charged to the profit or
loss in the periods in which such estimate has been changed.
Investments in associates and joint ventures – recoverable amount
In accordance with the Group’s accounting policies, each investment in an associate or joint venture is
evaluated every reporting period to determine whether there are any indications of impairment after
application of the equity method of accounting. If any such indication exists, a formal estimate of recoverable
amount is performed and an impairment loss recognised to the extent that the carrying amount exceeds the
recoverable amount. The recoverable amount of an investment in an associate or joint venture is measured
at the higher of fair value less costs to sell and value in use.
Similar considerations to those described above in respect of assessing the recoverable amount of property,
plant and equipment apply to investments in associates or joint ventures. In addition to the considerations
described above the Group may also assess the estimated future cash flows expected to arise from dividends
to be received from the investment, if such information is available and considered reliable.
Legal proceedings
In the normal course of business, the Group may be involved in legal proceedings. Where management
considers that it more likely than not that proceedings will result in the Group compensating third parties a
provision is recognised for the best estimate of the amount expected to be paid. Where management considers
that it is more likely than not that proceedings will not result in the Group compensating third parties or
where, in rare circumstances, it is not considered possible to provide a sufficiently reliable estimate of the
amount expected to be paid, no provision is made for any potential liability under the litigation but the
circumstances and uncertainties involved are disclosed as contingent liabilities.
The assessment of the likely outcome of legal proceedings and the amount of any potential liability involves
significant judgement. As law and regulations in many of the countries in which the Group operates are
continuing to evolve, particularly in the areas of taxation, sub-soil rights and protection of the environment,
uncertainties regarding litigation and regulation are greater than those typically found in countries with more
developed legal and regulatory frameworks.
Provision for restoration and rehabilitation
The Group’s accounting policy requires the recognition of provisions for the restoration and rehabilitation of
each site when a legal or constructive obligation exists to dismantle the assets and restore the site. The
provision recognised represents management’s best estimate of the present value of the future costs required.
Significant estimates and assumptions are made in determining the amount of restoration and rehabilitation
provisions. Those estimates and assumptions deal with uncertainties such as: changes to the relevant legal
and regulatory framework; the magnitude of possible contamination and the timing, extent and costs of
required restoration and rehabilitation activity. These uncertainties may result in future actual expenditure
differing from the amounts currently provided.
The provision recognised for each site is periodically reviewed and updated based on the facts and
circumstances available at the time. Changes to the estimated future costs for operating sites are recognised
in the statement of financial position by adjusting both the restoration and rehabilitation asset and provision.
Such changes give rise to a change in future depreciation and interest charges. For closed sites, changes to
estimated costs are recognised immediately in profit or loss.
Taxation
The Group’s accounting policy for taxation requires management’s judgement in assessing whether deferred
tax assets and certain deferred tax liabilities are recognised on the statement of financial position. Deferred
tax assets, including those arising from carried forward tax losses, capital losses and temporary differences,
are recognised only where it is considered more likely than not that they will be recovered, which is dependent
on the generation of sufficient future taxable profits. Deferred tax liabilities arising from temporary
differences related to investments, caused principally by retained earnings held in foreign tax jurisdictions,
are recognised unless repatriation of retained earnings can be controlled and is not expected to occur in the
foreseeable future.
Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on
management’s estimates of future cash flows. These depend on estimates of future production and sales
volumes, commodity prices, reserves, operating costs, restoration and rehabilitation costs, capital
expenditure, dividends and other capital management transactions. Assumptions are also required about the
application of income tax legislation. These estimates and assumptions are subject to risk and uncertainty,
hence there is a possibility that changes in circumstances will alter expectations, which may impact the
amount of deferred tax assets and deferred tax liabilities recognised on the statement of financial position
and the amount of other tax losses and temporary differences not yet recognised. In such circumstances, some
or all of the carrying amount of recognised deferred tax assets and liabilities may require adjustment, resulting
in a corresponding credit or charge to profit or loss.
322
79
80
323
323
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
The Group generally provides for current tax based on positions taken (or expected to be taken) in its tax
returns. Where it is more likely than not that upon examination by the tax authorities of the positions taken
by the Group additional tax will be payable, the Group provides for its best estimate of the amount expected
to be paid (including any interest and/or penalties) as part of the tax charge.
Reserve estimates
Reserves are estimates of the amount of product that can be economically and legally extracted from the
Group’s properties. In order to calculate reserves, estimates and assumptions are required about a range of
geological, technical and economic factors, including quantities, grades, production techniques, recovery
rates, production costs, transport costs, commodity demand, commodity prices and exchange rates.
The Group determines ore reserves under the Australasian Code for Reporting of Mineral Resources and
Ore Reserves September 1999, known as the JORC Code. The JORC Code requires the use of reasonable
investment assumptions to calculate reserves.
Estimating the quantity and/or grade of reserves requires the size, shape and depth of ore bodies or fields to
be determined by analysing geological data such as drilling samples. This process may require complex and
difficult geological judgements and calculations to interpret the data.
Since economic assumptions used to estimate reserves change from period to period, and since additional
geological data is generated during the course of operations, estimates of reserves may change from period
to period.
Changes in reported reserves may affect the Group’s financial results and financial position in a number of
ways, including the following:
Asset carrying values may be affected due to changes in estimated future cash flows;
Depletion charged in profit or loss may change where such charges are determined by the units of
production basis, or where the useful economic lives of assets change;
Decommissioning, site restoration and environmental provisions may change where changes in
estimated reserves affect expectations about the timing or cost of these activities.
Exploration and evaluation expenditure
The Group’s accounting policy for exploration and evaluation expenditure results in certain items of
expenditure being capitalised for an area of interest where it is considered likely to be recoverable by future
exploitation or sale or where the activities have not reached a stage which permits a reasonable assessment
of the existence of reserves. This policy requires management to make certain estimates and assumptions as
to future events and circumstances, in particular whether an economically viable extraction operation can be
established. Any such estimates and assumptions may change as new information becomes available. If, after
having capitalised the expenditure under the policy, a judgement is made that recovery of the expenditure is
unlikely, the relevant capitalised amount will be impaired.
Development expenditure
Development activities commence after project sanctioning by the appropriate level of management.
Judgement is applied by management in determining when a project has reached a stage at which
economically recoverable reserves exist such that development may be sanctioned. In exercising this
judgement, management is required to make certain estimates and assumptions similar to those described
above for capitalised exploration and evaluation expenditure. Any such estimates and assumptions may
change as new information becomes available. If, after having commenced the development activity, a
judgement is made that a development asset is impaired, the appropriate amount will be written off to profit
or loss.
Defined benefit retirement and other post retirement schemes
For defined benefit pension schemes, the cost of benefits charged to the profit or loss includes current and
past service costs, interest costs on defined benefit obligations and the effect of any curtailments or
settlements, net of expected returns on plan assets. An asset or liability is consequently recognised in the
statement of financial position based on the present value of defined obligations, less any unrecognised past
service costs and the fair value of plan assets.
The accounting policy requires management to make judgements as to the nature of benefits provided by
each scheme and thereby determine the classification of each scheme. For defined benefit pension schemes,
management is required to make annual estimates and assumptions about future returns on classes of scheme
assets, future remuneration changes, employee attrition rates, administration costs, changes in benefits,
inflation rates, exchange rates, life expectancy and expected remaining periods of service of employees.
In making these estimates and assumptions, management considers advice provided by external advisers,
such as actuaries. Where actual experience differs to these estimates, actuarial gains and losses are recognised
directly in the statement of profit or loss and other comprehensive income.
Impairment of assets
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are
reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists then the asset’s recoverable amount is estimated. For goodwill and intangible assets that are
not yet available for use, the recoverable amount is estimated at each reporting date.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows
that are largely independent from other asset groups. Impairment losses are recognised in profit or loss.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying
amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in
the unit (group of units) on a pro rata basis.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased
or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
Goodwill that forms part of the carrying amount of an investment in an associate or a joint venture is not
recognised separately and, therefore, is not tested for impairment separately. Instead, the entire amount of
the investment is tested for impairment as a single asset when there is objective evidence that the investment
in an associate or a joint venture may be impaired.
324
81
82
325
325
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
26. Significant subsidiaries
The significant entities of the Group, included in these consolidated financial statements, are as follows:
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2023
Name
UC RUSAL
IPJSC United Company RUSAL
Compagnie Des Bauxites De Kindia S.A.
Friguia SA
JSC RUSAL Achinsk
JSC RUSAL Boxitogorsk Alumina
Eurallumina SpA
PJSC RUSAL Bratsk
JSC RUSAL Krasnoyarsk
JSC RUSAL Novokuznetsk
JSC RUSAL Sayanogorsk
LLC RUSAL RESAL
JSC RUSAL SAYANAL
CJSC RUSAL ARMENAL
LLC RUS-Engineering
JSC Russian Aluminium
Rusal Global Management B.V.
JSC United Company RUSAL Trading House
RS International GmbH
Rusal Marketing GmbH
RTI Limited
Alumina & Bauxite Company Limited
JSC Bauxite-Timana
JSC Severo-Uralsky Bauxite Mine
JSC RUSAL URAL
LLC SUAL-PM
JSC Kremniy
LLC RUSAL-Kremniy-Ural
UC RUSAL Alumina Jamaica Limited
Kubikenborg Aluminium AB
RFCL Limited (formerly RFCL S.ar.l)
ILLC AKTIVIUM
Aughinish Alumina Ltd
LLC RUSAL Energo
Limerick Alumina Refining Ltd.
JSC RUSAL Management
LLC RUSAL Taishet
LLC UC RUSAL Anode Plant
RUSAL Products GmbH
Casting and mechanical plant “SKAD” Ltd.
LLC PGLZ
Power
ILLC EN+ HOLDING
JSC EuroSibEnergo
JSC Krasnoyarsk Hydro-Power Plant
(merged with JSC EuroSibEnergo)
LLC MAREM +
JSC Irkutskenergo
LLC EuroSibEnergo – Hydrogeneration
LLC Avtozavodskaya TEC
LLC EuroSibEnergo-engineering
LLC Kompaniya VostSibUgol
LLC Razrez Cheremkhovugol
Place of
incorporation
and operation
Russian Federation
Guinea
Guinea
Russian Federation
Russian Federation
Italy
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Armenia
Principal
activities
Holding company
Bauxite mining
Alumina
Alumina
Alumina
Alumina
Smelting
Smelting
Smelting
Smelting
Processing
Foil
Foil
Russian Federation
Russian Federation
Repairs and maintenance
Holding company
Netherlands
Management company
Russian Federation
Switzerland
Switzerland
Jersey
British Virgin Islands
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Jamaica
Sweden
Cyprus
Russian Federation
Ireland
Russian Federation
Ireland
Trading
Trading
Trading
Trading
Trading
Bauxite mining
Bauxite mining
Primary aluminium and
alumina production
Aluminium powders
production
Silicon production
Silicon production
Alumina
Smelting
Finance services
Holding and investment
company
Alumina
Electric power
Alumina
Russian Federation
Russian Federation
Russian Federation
Switzerland
Russian Federation
Russian Federation
Management company
Smelting
Anodes
Trading
Other aluminum production
Alumina
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Russian Federation
Holding company
Power generation /
Management company
Power generation
Power trading
Power generation
Power generation
Power generation
Engineering services
Coal production
Coal production
Ownership and
equity interest
31 December
2023
2022
56.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
56.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
99.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
99.9%
100.0%
100.0%
100.0%
100.0%
0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
The nominal ownerships indicated in the table above are the effective holdings, except for UC RUSAL
shareholdings where 56.88% is held by the Parent Company.
83
326
327
327
CONSOLIDATED REPORT 2023FINANCIAL STATEMENT
04 04
Appendices
330
Additional ESG data
383
Glossary
390
Contacts
APPENDICESCONSOLIDATED REPORT 2023329328328329 Additional ESG data
Financial review
GRI 201-1 Direct economic value generated and distributed, USD mn 1
Metals segment
Power segment
2021
2022
2023
2021
2022
2023
2021
En+
2022
2023
Direct economic value generated
13,844
15,608
13,033
Revenues
11,994
13,974
12,213
3,155
3,138
3,919
3,885
3,612
15,993
18,217
15,493
3,587
14,126
16,549
14,648
Share of profits of associates and
joint ventures
1,807
1,555
Interest income on loans
43
79
752
68
(5)
22
(2)
36
-
1,802
1,553,
25
65
115
752
93
Economic value distributed
(10,496)
(13,626)
(11,385)
(2,444)
(3,480)
(2,616)
(12,080)
(15,645)
(13,123)
Operating costs
(9,502)
(12,251)
(10,602)
(1,705)
(2,467)
(1,846)
(10,340)
(13,427)
(11,557)
including employee wages
Retirement costs
Community investments
Payments to providers of capital
including dividends paid
including financial expenses
Payments to government
including income tax 2
Economic value retained: ‘direct
economic value generated’ less
‘economic value distributed’
(723)
(196)
(45)
(364)
-
(364)
(389)
(339)
(938)
(248)
(34)
(727)
(302)
(425)
(366)
(310)
(750)
(206)
(33)
(447)
(609)
(527)
(1,170)
(1,547)
(1,277)
(80)
(10)
(103)
(19)
(83)
(5)
(276)
(55)
(351)
(53)
(289)
(38)
(367)
(338)
(560)
(368)
(709)
(1,117)
(748)
-
-
-
(367)
(338)
(560)
(177)
(132)
(311)
(230)
(331)
(243)
-
(368)
(314)
(238)
-
(709)
(700)
(569)
(129)
(988)
(697)
(553)
-
(748)
(491)
(370)
3,348
1,982
1,648
711
439
996
3,913
2,572
2,370
GRI 201-4 Financial assistance received from government, mn
Metals segment
Power segment
En+
Economic indicators, RUB mn
2021
2022
2023
RUB
USD
RUB
USD
RUB
USD
0
378
378
0
5
5
0
1,023
1,023
0
15
15
0
2,974
2,974
0
35
35
Metals segment
Power segment
2021
2022
2023
2021
2022
2023
2021
En+
2022
2023
Revenue
Value added
883,407
957,909
1,041,117
231,127
266,314
305,780
1,040,438
1,134,424
1,248,692
361,715
306,142
251,307
138,938
148,872
177,079
494,319
443,086
434,353
Net value added
274,067
219,632
150,716
97,002
100,288
123,096
364,735
307,992
279,779
Labor productivity
Amount of assessed
payments
Amount of mandatory pay-
ments paid
5
4
3
3
3
4
4
4
4
81,925
106,136
86,955
14,952
17,069
18,499
96,877
123,205
105,464
81,925
106,136
86,955
15,627
15,848
19,622
97,552
121,984
106,577
Sustainable investments
13,241
17,176
19,504
7,131
9,028
6,953
20,372
26,204
26,457
Investments in projects
related to achieving
technological sovereignty
and structural adaptation
of the Russian economy
773
340
0
569
826
1,624
1,343
1,110
1,624
Sustainability management
Management body
Power segment
Board of Directors
of En+
Health, Safety, and
Environment Com-
mittee of En+
General Director of
En+
Sustainable Devel-
opment Direc-
torate of En+
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Functions
Approval of general corporate sustainability policies and general sustainability management
principles and control over their implementation;
Strategic management of sustainable development;
Consideration of issues and identification of material topics related to the environmental
impact, social policy, and corporate governance of the Company;
Approval of the Company’s sustainability reporting.
Participation in the formulation of sustainable development strategies and policies and
identification of the relevant objectives;
Preparation of recommendations related to sustainable development for the Board of Directors;
Control over the Company’s compliance with international sustainability standards and leg-
islation;
Assessment of the Group’s sustainability performance.
General management of sustainable development;
Improvement of the business model based on sustainability principles;
Identification and implementation of measures to improve the Company’s long-term com-
petitiveness in line with global sustainable development trends.
Development of strategic sustainability documents for the Company and the Group and plans to
implement them;
Development of constructive relationships with the Group’s stakeholders;
Integration of the criterion of compliance with the UN sustainable development goals, inter-
national best practices, and national development goals into the Group’s decision-making
system;
Improvement of the Company’s performance in accordance with generally accepted sus-
tainability methodologies;
Environment De-
partment
Climate Risk De-
partment
Department of
Sustainable Devel-
opment Projects
Functional units
and divisions of en-
terprises
Board of Directors
of the Metals seg-
ment
•
Identification of the most significant environmental and social risks, organisation of the de-
velopment of measures and/or initiation of projects to prevent, eliminate, and minimise impacts;
• Organisation of accession to leading associations and/or initiation of new ones to develop a joint
SDG implementation plan;
•
•
•
•
•
•
•
Positioning of the Company as a leader in sustainable development among industry sectors.
Arrangement of work to identify and assess environmental risks;
Initiation and organisation of the Company’s environmental strategic initiatives and projects
Control over their implementation and achieved results.
Support for implementation of the Company’s climate strategy;
Identification and assessment of climate risks;
Development of climate risk management measures;
Control over the implementation of measures to eliminate or minimise climate risks.
• Management of biodiversity conservation and green office projects, including project initiation
and monitoring;
•
•
Participation in the development of sustainability training programmes for the Group’s em-
ployees.
Participation in the development and implementation of ESG initiatives as part of their primary
production activities.
Metals segment
Control over the achievement of goals and objectives to solve sustainable development issues;
Identification and assessment of climate-related risks and opportunities for the Company;
Approval of the sustainability strategy and goals;
•
•
•
• Quarterly and annual analysis of the risk profile and achieved results;
•
Supervision over the implementation of corporate ESG policies and determination of the need
for and feasibility of certain changes.
1 Hereinafter, calculated on the basis of the average exchange rate of the US dollar to the ruble for 2021 of 73.65 rubles for 1 US dollar, for 2022
of 86.55 rubles for 1 US dollar, for 2023 of 85.25 rubles for 1 US dollar.
2 Excluding deferred income tax and its effect on the reporting period.
330
330
Health, Safety, and
Environment Com-
mittee of the Met-
als segment
•
•
•
•
Control over compliance with the environmental policy, the occupational safety and envi-
ronmental and climate risk management policy;
Assessment of the implementation of occupational health and safety programmes, including
across the supply chain;
Control over the achievement of the Company’s environmental and occupational safety goals;
Assessment of compliance with regulatory requirements and assumed obligations.
331
331
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATA
Functions
GRI 2-25 List of expectations expressed by stakeholders
Management body
Corporate Govern-
ance and Nomina-
tions Committee
of the Metals seg-
ment
General Director of
the Metals seg-
ment
Public Expert
Council on Sustain-
ability
Sustainability Di-
rectorate
Functional units
and divisions of en-
terprises
•
•
•
•
•
•
•
•
•
Preparation of recommendations related to corporate governance, annual review of corporate
governance principles, policies, and procedures of the Company and its subsidiaries;
Regulation of corporate governance issues, control over training and continuous professional
development of directors and senior management;
Control over the Company’s compliance with the requirements of the Russian Corporate
Governance Code and the Corporate Governance Code of the Hong Kong Stock Exchange;
Preparation of recommendations about candidates for the Board of Directors.
Implementation of the sustainability strategy;
Control over the implementation of the climate policy formulated by the Board of Directors;
Evaluation of the progress in achieving strategic goals, analysis of the achievement of goals;
Initiation and monitoring of key projects to reduce greenhouse gas emissions;
Preparation of recommendations to the Board of Directors concerning climate-related issues.
• Organisation of effective interaction with a wide range of external stakeholders at the federal,
regional, and local levels.
•
•
Control over the implementation of the Sustainability Strategy across the Company’s divisions,
including its provisions related to environmental responsibility.
Participation in the development and implementation of ESG initiatives as part of their primary
production activities.
Materiality assessment and Stakeholder engagement
GRI 2-25, 3-1 In 2023, En+ analysed its activities to identify the actual and potential impacts on the economy, environment and
people, including impacts on their human rights. This information was used to compile a list of impacts for stakeholder assessment.
This section provides detailed information about the stakeholder groups that participated in the materiality survey and their
expressed expectations.
Overview of stakeholder groups involved in the survey, %
2%1%
1%
1%
6%
Employees and trade unions
Shareholders, investors, banks, and rating
agencies
Customers and suppliers
Non-profit organisations
Local communities
89%
Other
Stakeholders expectations
En+ response
Allocation of responsibility for sustainable development
management between En+ and Metals segment
More detailed disclosure on product quality issues and
quality assurance, including by segment
More detailed information on energy consumption and en-
ergy efficiency, information about the strategy and man-
agement system in this area, key activities in each segment
Disclosure of the results of surveys of residents of the re-
gions of presence, conducted to determine their real needs
and expectations, as well as information on the use of these
results by the Company in the process of planning charitable
activities
Expanded analysis of the Company’s contribution to the
implementation of national projects, more detailed coverage
of activities within the framework of the Clean Air federal
project, implemented projects and achieved results
See the allocation of responsibility for sustainable develop-
ment management between En+ and Metals segment
structure on p. 76-77
Read about product quality management on p. 226-229
Read about energy management, including the strategy on
p. 100-101
Read about the results of the Sustainable Cities Index
research and their use in the social investments planning on
p. 154-155
Read about the Company’s contribution to achieving the
Russian national goals on p. 82-85
Disclosure of following indicators:
See the labour productivity on p. 330
•
•
•
•
Labour productivity
share of purchases from small and medium-sized
businesses;
costs of personnel training;
breakdown of personnel by category
See the share of purchases from small and medium-sized
businesses in 2023 on p. 224
See the costs of personnel training on p. 358
See the breakdown of personnel by category on p. 353-354
Comparison of average wages at individual enterprises of
the Company with wage levels in the corresponding regions
See the information on the standard entry-level wage rate
for employees and the established minimum wage in the
regions of presence by segment on p. 357
Description of Company’s goals to increase consumption or
production of low-carbon energy
Read about increasing renewable energy production at HPPs
and low-carbon energy use on p. 101
Disclosure of Company’s approach to verifying suppliers'
compliance with established requirements to create a re-
sponsible supply chain, including requirements for environ-
mental protection, labour protection and industrial safety,
social responsibility
Read about supplier audit and verification on p. 223
Health and Safety KPIs for managers
Read about Health and Safety KPIs for managers on p. 136
Activities based on feedback received on the hotline and
their results
Read about actions based on the results of checking griev-
ances and requests made via Signal hotline on p. 212
Disclosure of information on Board or Directors and per-
sonnel training
Read about Board or Directors training on p. 182-183
Read about personnel training on p. 144
Employment of pensioners and people of pre-retirement
age
See the number of employed people of retirement
age on p. 355
332
332
333
333
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Value creation model
KEY PRODUCTION PROCESS
GRI 2-6, 3-3, 203-2
BAUXITE
MINING
ALUMINA
REFINING
Key input
z Bauxite reserves
z Land surface
z Water
Key output
z Bauxite
z Rehabilitated land
z Waste
z Bauxite
z Caustic Soda
z Calcine
z Water
z Fuel
z Alumina
z Air emissions
z GHG emissions
z Waste
ENERGY AND HEAT
PRODUCTION
Energy and
heat production (CHP)
z Land surface
z Coal
z Water
Energy
production (HPP)
z Water
z Land surface
ALUMINIUM
PRODUCTION
FOR THE GROUP
z Alumina
z Energy
z Aluminium scrap
z Water
z Fuel
z Labour
z Production and distribution
infrastructure
z Financial resources
z Governance system
z Royalties
z Energy and heat
z Air emissions
z Rehabilitated land
z Energy
z Noise
z Aluminium and its products
z Financial results
z Air emissions
z Taxes
z Water level fluctuations and
z GHG emissions
z Payments to suppliers
flood protection
z Waste
z Wastewater
z Salaries and social benefits
for employees
z Skilled employees
z Social investments
z Affordable energy and heat
for consumers
Key effect
z Biodiversity impact
z Contribution to climate
z Effect on the landscape
z Biodiversity impact
z Contribution to climate
z Value for shareholders
z Effect on the landscape
change
z Biodiversity impact
z Biodiversity impact
change
z Biodiversity impact
z Potential reduction of water
reserves and water pollution
z National and local economic
development
z Employment stability
z Regional development
z Professional development
of employees
z Product development
z Innovation development
MEASURES TO MITIGATE EFFECT
Climate change
strategy
Modernisation of
equipment
Engagement with
local communities
Environmental
monitoring
The biodiversity
conservation
programme
Collaboration with scientific
community
Transparency in
sustainability indicators
through the disclosure of
annual reporting
334
335
APPENDICESЕДИНЫЙ ГОДОВОЙ ОТЧЕТ 2023CONSOLIDATED REPORT 2023 Climate change
GRI 305-1 GHG emissions of the Power segment by substance
2021
2022
2023
Methane (СH4)
Nitrous oxide (N2O)
Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)
СO2
total
%
total
%
total
%
4,896.03
0.02
5,460.74
0.02
16,918.40
0.07
86,003.36
0.37
96,100.24
0.38
44,188.33
0.18
-
-
-
-
107.88
0.00
120.09
0.00
104.83
0.00
939.63
0.00
1,586.09
0.01
1,269.44
0.01
22,918,368.78
99.60
25,029,081.80
99.59
24,922,967.16
99.74
Total for Scope 1,2 and 3
23,010,315.68
25,132,348.96
26,443,629.6
GRI 305-4 Specific GHG emissions
Specific GHG emissions per revenue,
t CO2e/USD mn
Specific GHG emissions per revenue,
t CO2e/RUB mn
Specific GHG emissions per generated
electricity and heat, mt CO2e/bn kWh
GRI 201-2 Physical risks
Power segment
Metals segment
2021
2022
2023
2021
2022
2023
2021
En+
2022
2023
7,332.80 6,469.07 7,372.07
3,243
2,903
3,232 4,382.12 3,970.56 4,172.10
99.56
94.37
86.48
38.04
34.05
37.91
53.28
48.27
48.94
0.19
0.22
0.23
-
-
-
0.19
0.22
0.23
Risk
category
Physical risk
Risk factor
Scenario
Impact over the time horizon
Region of
exposure
Short-term
2024
Medium-
term 2024–
2025
Long-
term
2025–
2050
Probability*
Acute
Underflooding
of quarries
Acute
Infrastructure
disruption
extreme
precipitation
Acute
Supply
disruptions
extreme
precipitation
336
Komi
Republic
Republic of
Guinea
Komi
Republic
Republic of
Guinea
Republic of
Guinea
Komi
Republic
Krasnoyarsk
Territory
Republic of
Guinea
Nizhny
Novgorod
Region
Irkutsk
Region
Republic of
Guinea
Nizhny
Novgorod
Region
Irkutsk
Region
Krasnoyarsk
Territory
Armenia
•
•
•
•
•
•
•
•
•
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
●
●
●
●
●
●
●
●
Low
Medium
Low
High
High
Low
Low
Low
○
○
●
Low
○
○
○
○
○
○
○
○
●
●
●
●
Medium
Low
Low
Low
Impact over the time horizon
Risk
category
Physical risk
Risk factor
Scenario
Region of
exposure
Short-term
2024
Medium-
term 2024–
2025
strong wind
Acute
Reduced
productivity
extreme
heat
Acute
Equipment
damage/loss
extreme
cold
Chronic Halt in
production
Damage to
production
facilities
Acute
Acute
extreme
precipitation
deficit
extreme
precipitation
Collapse of
the main
building roof
extreme
snowfall
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Jamaica
Krasnoyarsk
Territory
Republic of
Guinea
Krasnoyarsk
Territory
Republic of
Guinea
Krasnoyarsk
Territory
Republic of
Guinea
Irkutsk
Region
Irkutsk
Region
Irkutsk
Region
Irkutsk
Region
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
Long-
term
2025–
2050
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
Probability*
Low
Low
Low
Medium
Medium
High
Medium
High
Low
Low
Low
Low
Low
Low
Low
Medium
Low
Low
Low
Low
SSP126 - •
SSP245 - •
SSP585 - •
○ – insignificant impact,
● – significant impact (based on a quantitative risk assessment)
* – Based on the quantitative risk assessment scale: low (less than 20%), medium (20–60%), high (60–100%) probability
Transition risks
Risk
category
Risk
Risk factor
Scenario
Policy and
legal
Expenses to
purchase
offsets
Expenses
related to the
introduction of
CBAM
Introduction of
a national
carbon price
and
development of
a regional GHG
emissions
inventory
Introduction of
CBAM
•
•
•
•
•
•
•
Exposed assets
Impact over the time
horizon
Metals
segment
Power
segment
Short-
term
2022
Medium-
term
2022–
2025
Long-
term
2025–
2050
Probability
within the
scenario
analysis*
Applicable to En+
○
○
○
○
○
○
○
●
●
●
○
○
○
○
●
●
●
●
●
●
●
High
Medium
Low
High
High
High
Medium
335
336
337
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Risk
category
Risk
Risk factor
Scenario
Exposed assets
Impact over the time
horizon
Metals
segment
Power
segment
Short-
term
2022
Medium-
term
2022–
2025
Long-
term
2025–
2050
Probability
within the
scenario
analysis*
Expenses to
take measures
to adapt to and
minimise
climate change
impacts
Reduced
demand for
green electricity
due to the
introduction of
CBAM
Technology Expenses to
switch to
energy-efficient
and energy-
saving solutions
in production
processes
Reduced
demand for the
Company’s
products in
European
markets
Reduced or no
public
investment in
GHG emissions
reduction
Failure to
achieve the
declared
performance of
hydroelectric
unit impellers
under the New
Energy
programme
More carbon-
intensive
production
through the use
of SF6 insulated
switchgear
Reputation Reduced
investment
appeal of the
Company
Sludge spillage
entailing costs
to recover from
the accident
and pay the fine
Approval of the
national action
plan for
adaptation to
climate change
Introduction of
CBAM
High carbon
intensity of
production
processes
Reorientation
of aluminium
exports to
Asian markets
Limitation of
investment in
hydropower
facilities
Implementation
of the New
Energy
programme
Replacement of
switchgear
Negative
perception of
the Company
by investors,
independent
shareholders,
local
communities
Overflow of
sludge at
sludge disposal
sites
Market
Reduced
product
margins and
Lower demand
for high-carbon
generation
338
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
+
+
+
Applicable to En+
+
+
+
+
+
+
+
+
+
+
+
+
Applicable to En+
+
+
+
Applicable to En+
○
○
○
○
○
○
○
○
●
●
●
○
○
○
●
●
●
○
○
○
○
○
○
●
●
●
○
○
○
○
○
●
●
●
●
●
●
●
●
●
●
●
●
●
●
○
○
○
○
○
○
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
High
High
High
Medium
Low
High
Medium
Low
High
Medium
Low
Medium
Medium
Low
Low
Low
Low
Low
Low
Low
High
Medium
Low
High
Medium
Medium
High
Medium
337
Exposed assets
Impact over the time
horizon
Metals
segment
Power
segment
Short-
term
2022
Medium-
term
2022–
2025
Long-
term
2025–
2050
Probability
within the
scenario
analysis*
○
○
○
○
●
●
●
●
+
+
+
Low
High
Medium
Low
●
●
●
●
Risk
category
Risk
Risk factor
Scenario
competitiveness
due to a high
carbon
footprint
Lower demand
for coal
products
Transition to
low-carbon
economic
development
•
•
•
SSP126 - •
SSP245 - •
SSP585 - •
○ – insignificant impact,
● – significant impact (based on a quantitative risk assessment)
* – Based on the quantitative risk assessment scale: low (less than 20%), medium (20–60%), high (60–100%) probability
Energy management
GRI 302-4 Reduction of energy consumption in the Power segment, GJ
Reduction of energy
consumption
2021
2022
2023
8,365,779.225
3,126,243.31
5,948,299.47
GRI EU2 Net energy output of the Power segment, GJ3
Electricity
Heat
2021
316,499,624
119,772,801
2022
292,766,726 3
116,429,914
2023
296,643,840
115,001,675
GRI EU2 Net energy output of the Power segment by source
Non-renewable
Renewable
Coal
Natural gas
Petroleum
products
Nuclear power
Biomass
Solar power
Wind power
Geothermal
Hydropower
Electricity, GWh
Heat, Gcal
2021
2022
2023
2021
2022
2023
8,798
1,694
10,984
12,370
23,501
1,512
1,406
5,253
23,169
4,771
13
0
0
6
0
0
16
0
0
6
0
0
16
0
0
6
0
0
77,408
68,816
68,602
27
0
12
0
0
0
0
28
0
11
0
0
0
0
23,185
4,269
27
0
5
0
0
0
0
GRI EU1 Installed capacity with breakdown by primary energy sources and regulation mode, MWh
Non-renewable
Renewable
Coal
Natural gas
Solar power
Hydropower
Электричество
Тепловая энергия
2021
2022
2023
2021
2022
2023
3,783.3
3,783.3
3 786,2
14,137.3
14,031.7
13,362.9
513.9
5.2
514.9
5.2
491,4
5,2
15,099.0
15,125.7
15,152.5
3,691.0
3,695.7
3,026.9
0.0
0.0
0.0
0.0
0.0
0.0
3 The value has been adjusted due to the recalculation of indicators for LLC "BEK" and LLC "ESE-Kuban".
338
339
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
GRI 302-1 b, EU Taxonomy, SASB EM-MM 130 a.1, SASB IF-EU-000.E Energy consumption, GJ 4
2022
2021
2023
Energy consumption from non-renewable sources by
fuel type
466,046,656
477,450,850
476,176,024
•
•
•
•
•
•
•
•
Natural gas
Heavy oil
Coal
Petrol
Kerosene
Propane and butane
Diesel fuel
Coke
Energy consumption from renewable sources by fuel type
•
Charcoal
• Waste wood
•
Bark waste
Consumption of energy purchased or obtained by any
means other than self-generation from non-renewable
and renewable fuels
•
•
Electricity consumption
Heating consumption
Energy losses during transportation
•
•
Electricity losses
Heating losses
Energy sales
•
•
Electricity sales
Heating sales
Total energy consumption within the organisation
Specific energy consumption indicators
156,742,661
27,110,413
275,023,875
260,035
6,313
456,379
5,947,975
499,004
797,722
456,002
175,910
165,810
141,029,714
24,082,306
126,473,984
23,623,279
305,076,445
318,484,246
191,771
5,936
482,090
5,877,301
705,286
1,414,746
954,284
339,822
120,640
165,271
6,113
496,043
6,218,333
708,755
1,983,684
1,135,481
786,527
61,676
251,429,586
253,156,436
255,632,013
246,716,543
248,164,413
251,335,545
4,713,043
25,412,555
12,383,899
13,028,656
436,566,105
316,499,624
120,066,481
307,120,414
4,992,024
27,436,758
14,501,417
12,935,341
4,296,468
28,455,989
15,230,520
13,225,469
409,462,962
409,160,593
292,766,726
296,515,079
116,696,237
112,645,514
349,995,828
353,087,117
Energy intensity ratio per electricity
and heat generation, GJ/MWh
Energy intensity ratio per tonne of
aluminium, GJ/t
Energy intensity ratio per revenue,
GJ/RUB mn
Energy intensity ratio per revenue,
GJ/USD mn
Energy consumption per unit of net
value added
Power segment
Metals segment
2021
2022
2023
2021
2022
2023
2021
En+
2022
2023
2.1
2.5
2.7
-
-
-
2.1
2.5
2.7
-
-
-
127.2
119.0
117.4
127.2
119.0
117.4
1,099.3
1,047.0
949.9
278.3
258.4
240.5
690.4
645.3
587.6
80,964.8 71,774.9 80,974.0
38,703.2
32,430.0
36,300.5
50,847.7
44,233.6
50,095.0
2,619.2
2,780.4
2,359.6
897.0
1,127.2
1,661.0
1,969.3
2,376.8
2,622.8
Denominator used to calculate intensity metrics
Power segment
Metals segment
Amount of electricity and heat generation, bn kWh
Volume of aluminium produced, kt
2021
123,574
2022
116,375
2023
117,375
2021
3,764
2022
3,835
2023
3,848
Use of non-renewable energy, %
Percentage of non-renewable energy con-
sumption
Percentage of renewable energy consump-
tion
Percentage of supplied energy from non-re-
newable sources
Percentage of supplied energy from
renewable sources
Percentage of renewable and low-carbon
generating facilities in the installed capacity
of generating facilities
Power segment
Metals segment
En+
Unit
2021
2022
2023
2021
2022
2023
2021
2022
2023
%
%
%
%
%
97.74
97.95
98.16
0.07
0.04
0.02
11.95
15.37
16.71
88.05
84.63
83.29
77
78
78
52.03
53.91
56.00
99.83 99.70 99.59
47.97
46.09
44.00
0.17
0.30
0.41
-
-
-
-
-
-
-
-
-
11.95
15.37
16.71
88.05
84.63
83.29
77
78
78
SASB IF-EU-240a.1 Average retail electric rate for (1) residential, (2) commercial, and (3) industrial customers, RUB/kWh 5
Residential
Commercial
Industrial
2021
0.93
2.99
2.85
2022
0.98
3.14
2.98
2023
1.08
3.47
3.28
SASB IF-EU-240a.2 Typical monthly electric bill for residential customers for (1) 500 kWh and (2) 1,000 kWh of electricity
delivered per month, RUB 6
500 kWh
1,000 kWh
22002211
564.08
1,125.43
22002222
596.15
1,189.69
22002233
616.85
1,229.24
SASB IF-EU-240a.3 Number of residential customer electric disconnections for non-payment, percentage reconnected
within 30 days7
Number of residential customer
electric disconnections for non-
payment
Percentage reconnected within 30
days, %
2021
81,823
0.5
2022
90,774
0.7
2023
73,577
0.3
SASB IF-EU-420a.2 Percentage of electric load served by smart grid technology,8 %
2021
49
2022
52
2023
51
SASB of IF-EU-550a.2 System Average Interruption Duration Index (SAIDI), System Average Interruption Frequency Index
(SAIFI), and Customer Average Interruption Duration Index (CAIDI)
SAIDI
SAIFI
CAIDI
2021
87.27
0.66
133.26
2022
66.57
0.48
137.3
2023
60.54
0.50
120.43
4 Data for 2021-2022 was changed due to clarification of coefficients.
5 The average USD/RUB exchange rate was RUB 73.65 per USD in 2021, RUB 68.55 per USD in 2022, RUB 85.25 per USD in 2023.
6 The average USD/RUB exchange rate was RUB 73.65 per USD in 2021, RUB 68.55 per USD in 2022, RUB 85.25 per USD in 2023.
7 The data is given for Volgaenergo Group of Companies only.
8 According to the U.S. Energy Independence and Security Act of 2007, smart grid technologies of the Power segment include smart measurement
technologies which provide customers with timely information and control options.
340
340
339
341
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Environmental protection
Total environmental protection costs, mn
Metals
segment
2021
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
2022
2023
USD
RUB
USD
RUB
USD
RUB
USD
RUB USD RUB USD
RUB USD RUB
USD
RUB USD
RUB
Percentage of funds used to implement environmental projects, %
Percentage of net profit used to
implement environmental projects
Power segment
Metals segment
En+
2021 2022 2023 2021 2022 2023 2021 2022 2023
4.6
6.8
10.4
4.3
12.1
62.9
4.4
13.1
28.9
PCB manage-
ment
Other envi-
ronmental
protection costs
Waste man-
agement
Environmental
equipment
maintenance
Land rehabil-
itation
Water pro-
tection
Atmospheric air
protection
Preventing
climate change
Protection of
the
environment
from noise,
vibration and
other types of
physical impact
Conservation of
biodiversity and
protection of
natural areas
Ensuring
radiation safety
of the
environment
Research and
development
activities to
reduce negative
anthropogenic
impacts on the
environment
TToottaall
0.2
14.7
0.0
0.0
0.2
14.73
0.2
10.4 0.0
0.0
0.2
10.4 0.01
0.85
0.0
0.0 0.01
0.85
Total payments for the negative environmental impact, mn 9
1.8
132.6
0.7
51.5
2.9
213.6
3.2
216.4
1.5
104.6
4.7
321.0
1.2
102.3
0.4
36.5
1.6
138.8
50.6 3 726.6
0.7
51.5
51.3
3 778.2
89.4 6 131.2
1.4
94.8 90.8
6 226 40.6 3461.0
1.5
127.9
42.1 3588.9
3.9
287.2
3.6 246.7
7.4
545
3.9
265.3 6.3 431.6
10.2
696.9
4.3 366.6
0.0
0.0
4.3
366.6
1.3
95.7
0.6
44.1
1.9
139.9
1.0
68.4 0.9
63.4
1.9
131.8
4.7 400.7
0.6
54.6
5.3
455.3
10.5
773.3
7.7
567.1
18.2
1 340.4
5.0
339.6 10.7 732.9
15.7
1 072.5
5.0 426.2
13.1 1116.3
18.1
1 542.5
69.6 5 126.0
3.1 228.3
73.0
5 376.4
114.0 7 813.9
5.5 337.6
119.5 8 151.5 116.6 9939.8
13.7 1169.4 130.3 11 109.2
-
-
-
-
-
-
-
-
-
-
-
0.03
2.2
0.03
2.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 0.002
0.1 0.002
0.1
-
0.02
2.3 0.02
2.3
- 0.009
0.8 0.009
0.8
-
-
-
-
-
- 4.5- 383.6 0.1052
8.9
4.6
392.5
- 0.0004
0.03 0.0004
0.03
-
-
-
-
-
-
-
- 0.005
0.4 0.005
0.4
-
0.3
22.6
0.3
22.6
-
-
-
-
-
-
-
-
0.2
17.1
0.2
17.1
2021
2022
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
2023
Power
segment
En+
USD
RUB
USD RUB
USD
RUB
USD
RUB
USD RUB USD
RUB
USD
RUB
USD
RUB
USD
RUB
11.87
874.2
0.9
66.3
12.77
913.4
12.5
854.5
1.5
98.3
14.0
952.8
11.4 974.93
1.1
93.78
12.5
1,065.5
Payments
for the
negative
environ-
mental
impact
(NEI)
GRI 2-27 Non-compliance with environmental laws and regulations
2021
2022
2023
Metals
segment
Power
segment
En+ Metals
segment
Power
segment
En+ Metals
segment
Power
segment
En+
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total number of significant instances of non-
compliance with environmental laws and
regulations
Total number of instances for which non-
monetary sanctions were incurred
Total number of cases initiated to resolve
disputes related to non-compliance with
environmental laws and regulations
Air quality
113377..99 1100 115566..11
1166..77 11 221144..88
115555..22
1111 443333..99 221166..77 1144 884455..22 2266..33 11 776644..99 224433..00 1166 661100..11 117777..33 1155111144..22
2299..77 22553377..77
220077 1177,,664477..77
Particulate matter (PM) (excl. Fsolid, tarry substances, benzo(a)pyrene
(B(a)P))
Sulphur dioxide (SO2)
Sum of nitric oxides as nitrogen dioxide (NO2)
Total fluoride (gaseous and solid fluoride)
Other emissions 11
Volatile organic compounds (VOCs)
Benzo(a)pyrene
Mercury (Hg)
Lead (Pb)
Total
35.9
45.2
22.7
6.0
10.0
1.2
36.1
44.3
19.9
5.5
10.5
0.9
0.0038
0.0036
0.00
0.00
366.3
0.00
0.00
362.6
GRI 305-7, SASB EM-MM-120a.1 Emissions of the Metals segment,10,kt
Pollutant
2021
2022
2023
Carbon monoxide (CO)
245.3
245.4
GRI 305-7 Emissions of the Power segment, kt
Pollutant
2021
2022
2023
Nitrogen oxides (NOx)
Sulphur oxides (SOx)
Persistent organic pollutants (POPs)
Volatile organic compounds (VOCs)
45.7
160.5
0.0
0.4
52.1
172.3
0.0
0.3
248.0
40.4
42.3
22.9
5.2
9.4
1.2
0.0033
0.00
0.00
371.7
50.5
188.1
0.0
0.4
342
341
343
9 Calculated on the basis of the USD/RUB average exchange rate of RUB 73.65 per USD for 2021, RUB 68.55 per USD for 2022.
10 The data for the Friguia Bauxite and Alumina Complex, that may be material for consolidated indicators, is excluded due to the lack of metering
systems and relevant requirements in national legislation.
11 This category includes all pollutants specified by Russian legislation, with the exception of CO and pollutants already presented in this table.
342
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Particulate matter (PM) (excl. Fsolid, B(a)P, Pb, Hg)
Other standard categories of air emissions identified in relevant
regulations 12
Total
58.3
9.3
67.3
7.5
274.4
299.6
SASB IF-EU-120a.1 Percentage of air emissions of the Power segment in or near areas of dense population, %
Pollutant
2021
2022
2023
Nitrogen oxides (NOx)
Sulphur oxides (SOX)
Particulate matter (PM)
Lead (Pb) 13
Mercury (Hg)14
Total
Specific emissions of pollutants
93.2
97.8
87.8
0.0
0.0
93.6
95.3
98.4
91.8
0.0
0.0
95.4
74.9
6.0
319.9
94.9
98.5
89.4
0.0
0.0
94.9
2021
2022
2023
Unit
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
kt/kt
0.09
2.22
-
0.10
2.57
-
0.09
2.73
-
kt/USD
mn
kt/RUB
mn
0.03
0.09
0.05
0.03
0.08
0.04
0.03
0.09
0.04
0.0042
0.0012 0.0009 0.00038
0.0011
0.0006 0.00036
0.0010
0.0005
kt/kt
0.006
0.3701
kt/kt
0.012
1.2992
-
-
0.005
0.4476
0.012
1.4809
kt/kt
0.010
0.4720
-
0.009
0.5787
-
-
-
0.006
0.4310
0.011
1.6065
0.010
0.6400
kt/kt
0.00031
0.0035
- 0.00023
0.0025
-
0.00032
0.0032
-
-
-
-
Total air
emissions per
unit of output
Total air
emissions per
revenue
Total air
emissions per
revenue
NOx emissions
per unit of
output
SOx emissions
per unit of
output
Particulate
matter
emissions per
unit of output
VOCs emissions
per unit of
output
Water resources
GRI 303-3, SASB IF-EU-140a.1, SASB EM-MM-140a.1 Water withdrawal,15,16 mn m3
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
178.4
727.0
905.4
172.7
820.2
992.9
163.5
871.8
121.2
4.0
14.3
23.0
15.9
546.1
39.9
141.0
0.0
0.0
667.3
43.9
155.3
23.0
15.9
109.1
615.2
724.3
12.6
12.5
22.8
15.7
40.5
53.1
164.5
177.0
0.0
0.0
22.8
15.7
98.8
14.4
12.8
22.6
14.8
635.0
33.4
203.4
0.0
0.0
En+
1,035.3
733.9
47.8
216.2
22.6
14.8
155.4
720.2
875.6
149.9
813.2
963.1
140.9
865.4
1,006.3
121.2
4.0
14.3
15.9
546.1
33.1
141.0
0.0
667.3
37.1
155.3
15.9
109.1
12.6
12.5
15.7
615.2
33.6
164.5
0.0
724.3
46.2
177.0
15.7
98.8
14.4
12.8
22.6
635.1
26.9
203.4
0.0
733.9
41.3
216.2
22.6
Total water
withdrawal, including:
Surface water
Groundwater
Public networks
Seawater
Other
Freshwater
withdrawal, including:
Surface water
Groundwater
Public networks
Other
12 This category includes all pollutants specified by Russian legislation, with the exception of CO and pollutants already presented in this table.
13 Lead emissions are not typical of the Company’s main production facilities.
14 Mercury emissions are not typical of the Company’s main production facilities.
15 Water withdrawal includes quarry, mine, drainage, storm, and other water that is not used in the production process.
16 Total indicators may differ from the sums of the components due to rounding.
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
1.1
4.4
5.5
1.6
4.6
6.2
1.7
0.0
1.7
1.0
0.0
0.1
0.0
0.0
0.7
0.0
3.6
0.0
0.0
1.7
0.0
3.7
0.0
0.0
1.5
0.0
0.1
0.0
0.0
0.8
0.0
3.8
0.0
0.0
2.3
0.0
3.9
0.0
0.0
1.6
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.1
4.4
5.5
1.6
4.6
6.2
1.7
0.0
1.0
0.0
0.1
0.0
0.0
0.7
0.0
3.6
0.0
0.0
1.7
0.0
3.7
0.0
0.0
1.5
0.0
0.1
0.0
0.0
0.8
0.0
3.8
0.0
0.0
2.3
0.0
3.9
0.0
0.0
1.6
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.6
0.6
0.6
0.9
0.6
0.6
1
0.0
1.6
0.0
0.1
0.0
0.0
1.7
1.6
0.0
0.1
0.0
0.0
0.2
91.5
83.6
-
91.5
71.9
-
91.9
74.7
-
Total water
withdrawal from all
areas with water
stress
Surface water
Groundwater
Public networks
Seawater
Other
Total freshwater
withdrawal from all
areas with water
stress
Surface water
Groundwater
Public networks
Seawater
Other
Percentage of water
withdrawal from all
areas with water
stress, %
Percentage of reused
or recycled water, %
GRI 303-5, SASB IF-EU-140a.1, SASB EM-MM-140a.1 Water consumption,17 mn m3
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
107.5
478.4
585.9
99.9
565.4
664.4
91.6
619.0
710.6
1.0
1.9
2.9
1.5
2.0
3.5
1.0
0.0
1.0
-
0.0
0.0
-
0.0
0.0
-
0.0
0.0
1.0
0.4
0.5
1.5
0.3
0.5
1.0
0.0
0.2
Total water
consumption
Total water
consumption in all
areas with water
stress
Change in water
storage
Percentage of
water consumption
in areas with water
stress, %
GRI 303-4 Water discharge, 18, 19 mn m3
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Total water discharge
Surface water
Groundwater
Public networks
Seawater
Freshwater discharge
Total water discharge in areas
with water stress
Freshwater discharge in areas
with water stress
48.6
25.9
0.0
11.3
22.7
25.9
1.15
446.3 494.9
498.9 524.8
0.0
0.0
10.5
21.8
0.0
22.7
446.3 488.1
47.3
23.0
0.0
13.4
22.8
23.0
509.7
560.0
0.0
557
583
0.0
11.0
24.4
0.0
22.8
509.7 532.7
0.8
1.95
0.03
0.8
0.83
1.15
0.8
1.95
0.03
0.8
0.83
Total volume of wastewater
48.6
499.1 547.7
47.3
560.3 607.6
41.6
41.6
0.0
10.1
22.6
41.6
27.4
27.4
41.6
545.9
592
594.8 636.4
0.0
0.0
18.9
29.0
0.0
22.6
545.9 587.5
0.0
27.4
0.0
27.4
594.2 635.8
17 Water for production needs. The dynamics of water consumption in the Metals segment is due to a change in the accounting approach: in 2021
and 2022, water consumption is calculated using Form 2-TP (water management) as the sum of the following water use codes: “102” (production
needs), “8” (other needs). In the reporting period, when calculating the indicator, only code “102” (production needs) was taken into account.
18 Water discharge excludes any quarry, mine, drainage, storm, and other water that is not used in the production process.
19 Total indicators may differ from the sums of the components due to rounding. The significant dynamics in the Metals segment indicator in the
reporting period was due to a change in the data calculation methodology and the complete exclusion of the “transferred to others” category
indicator from the calculation.
344
344
343
345
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
discharged to surface water
bodies by dissolved solids content
Polluted
Treated
Normally clean
81.08
18.15
0.77
1.56
8.62
80.09
1.43
7.55
1.32
2.81
97.12 88.57
19.48
0.43
1.27
2.69
97.3 89.76
86.54
12.98
0.48
1.3
6.88
1.16
1.93
97.5
91.19
Specific indicators for water resources
Unit
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
2021
2022
2023
Total water
withdrawal
per unit of
output
Total water
withdrawal
per revenue
Total water
withdrawal
per revenue
Total water
discharge
per unit of
output
Total water
discharge
per revenue
Total water
discharge
per revenue
Total water
consumption
per
unit of
output
Total water
consumption
per revenue
Total water
consumption
per revenue
m3/ bn kWh
(Power segment);
m3/kt (Metals
segment)
47.4
5.88
-
45.0
7.05
-
42.5
7.45
-
mn m3/ RUB mn
0.0002
0.003 0.0008
0.0002
0.003 0.0009
0,00016
0.0029 0.00083
mn m3/ USD mn
0.0149
0.23
0.06
0.0124
0.21
0.06
0,013
0.24
0.07
m3/ bn kWh (for
the Power
segment); m3/kt
(for the Metals
segment)
3.1
3.60
-
3.88
4.37
-
8.98
4.66
-
mn m3/ RUB mn
0.00019
0.00193 0.0006
0.00019
0.00191 0.0006
0.00004
0.00179 0.00047
mn m3/USD mn
0.014
0.142
0.044
0.013
0.131
0.042
0.0038
0.1522
0.0404
m3/ bn kWh (for
the Power
segment); m3/kt
(for the Metals
segment)
0.0308
3.872
-
0.0292
4.859
-
0.024
5
-
mn m3/ RUB mn
0.0001
0.0021 0.0006
0.0001
0.0021 0.0006
0.039
0.002
0.0006
mn m3/ USD mn
0.0097
0.1525
0.042
0.0080
0.1455
0.041
0.0075
0.1725
0.0485
Waste and tailings
GRI 306-3 Waste generated, mt
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Waste generated, mt 20
84.2
131.1 215.3
62.8
137.1
199.1
60.4
164.6 225.0
GRI 306-3 Non-hazardous waste generated 21, mt
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Non-hazardous waste
generated (excl.
overburden), including:
Class IV
Class V
14.9
6.1
21.0
13.8
8.6
22.4
13.0
15.9
28.9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.01
15.9
-
-
20 The indicator includes hazardous and non-hazardous waste, overburden and rock, tailings and sludge.
21 According to Russian environmental legislation, waste is divided into 5 hazard classes.
GRI 306-3, SASB EM-MM-150a.7 Hazardous waste generated, kt
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Hazardous waste
generated,
including:
Class I
Class II
Class III
695.8
2.7
698.6
834.6
12
846.6
767.7
2.4
770.1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.02
0.04
2.36
-
-
-
GRI 306-4, GRI 306-5, SASB EM-MM-150a.8 Total weight of hazardous waste generated by management method, kt
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Reused and
recycled
Offsite disposal
Onsite landfilling
Onsite storage
660.4
7.3
15.9
13.0
2.0
0.0
0.0
0.6
662.4
807.6
10.8
818.4
745.2
7.3
15.9
13.6
4.3
8.5
11.4
0.0
0.0
0.9
4.3
8.5
12.3
2.4
10.5
10.8
2.0
1.9
0.0
1.0
747.2
4.3
10.5
11.8
SASB EM-MM-150a.4 Total weight of non-mineral waste generated, mt22
2022
2021
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Non-mineral waste
generated
1.5
1.6
3.1
1.8
2.1
3.9
2.0
2.1
4.1
GRI 306-4, GRI 306-5 EM-MM-150a.6 Total weight of non-hazardous waste, including overburden, by management
method, 23, 24 mt
2021
Metals
segment
Power
segment
En+
Metals
segment
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
Reuse and recycling
Offsite disposal
Onsite landfilling
Onsite storage
2.4
0.08
49.1
32.0
118.6
121.0
0.5
0.8
12.6
0.58
49.9
44.6
2.6
0.0
22.7
36.4
122.9
125.5
0.4
0.7
14.6
0.4
23.4
51.0
3.6
0.2
56.4
32.0
148.4
152.0
0.3
0.5
17.0
0.5
56.9
49.0
SASB IF-EU-150a.1, SASB EM-MM-150a.5 Waste generation and management
2022
2021
2023
Tailings waste, 25 kt
Percentage of tailings
waste recycled,26 %
Total weight of mineral
processing waste, kt
Percentage of mineral
processing waste recy-
cled, %
Metals
segment
Power
segment
14 101.1
3983.6
En+
18
3084,6
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
11 988.4
5997.6
17 986.0
11 792,9
5,806.7
17,924.3
6.7
61.7
19.7
7.7
67.4
27.6
7,4
69.61
27.4
15 617.5
4.0
15 621.5
12 267.2
2.7
12 269.9
11,943.8
2.4
11,723.1
2.2
0.0
2.2
9.4
0.0
9.4
8,3
0
8.3
22 Tailings waste is not generated in the production processes of the Metals segment enterprises, therefore, tailings waste is presented in the
form of data on red and nepheline sludge from alumina enterprises generated in the reporting period.
23 Hereinafter in the Additional ESG data section, the data for Bauxite Company of Guyana, Bauxite Company of Kindia (Guinea), and the Dian-
Dian (Guinea) project that may be material for consolidated indicators of overburden and rock waste is excluded due to the lack of metering
systems and relevant requirements in national legislation.
24 The indicator includes overburden waste that may be used for rehabilitation of abandoned land or reprocessed to make new materials.
25 Tailings waste is not generated in the production processes of the Metals segment enterprises, therefore, tailings waste is presented in the
form of data on red and nepheline sludge from alumina enterprises generated in the reporting period.
26 Used as a constructive and anti-filtration element of hydraulic structures in the Power segment.
346
346
345
347
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
-
-
1,502.6
1,412.9
68.0
80.0
-
-
1,946.1
1,946.1
-
2,092.7
2,092.7
78
78
-
63
63
Amount of coal combus-
tion residuals (CCR)
generated, kt
Percentage of coal com-
bustion residuals recy-
cled, %
G4 MM3, SASB EM-MM-150a.6 Overburden, rock, tailings, and sludge generation and accumulation, mt
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Total amount of
land disturbed
because of open-pit
mining but not yet
rehabilitated as at
31 December of the
reporting year
10,433
11,915.7
22,347
12,072.3
12,221.3
24,293.6
10,891
12,372.36 23,263.36
Generated
Overburden
68.6
Rock
Tailings
Sludge
0.0
0.0
14.1
114.8
10.3
4.3
0.2
183.4
10.3
4.3
14.3
Accumulated Overburden
488.0
284.6
772.6
Rock
Tailings
Sludge
0.0
0.0
969.3
969.3
114.5
114.5
494.2
0.6
494.8
437.5
49.0
0.0
0.0
12.0
516.1
0.0
0.0
117.2
166.2
46.7
136.3
183.0
11.3
6.3
0.2
284.6
980.5
116.3
0.6
11.3
6.3
12.2
800.7
980.5
116.3
438.1
0.0
0.0
11.8
542.9
0.0
0.0
396.7
12.4
6.1
0.3
285.7
992.7
117.9
0.6
12.4
6.1
12.1
828.6
992.7
117.9
397.3
SASB IF-EU-150a.2 Total number of tailings storage facilities broken down by hazard potential classification and structural
integrity assessment in the Power segment
2021
2022
2023
Total number of coal combustion residual (CCR)
impoundments
16
1
13
2
16
2
12
2
16
2
12
2
High hazard potential
Significant hazard potential
Low hazard potential
Specific waste indicators
Unit
mt/mt
mt/
USD mn
mt/RUB
mn
Total generated
waste/unit of out-
put
Total generated
waste/revenue in
USD mn
Total generated
waste/revenue in
RUB mn
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
0.022
1.06073
-
0.016
1.12635
-
0.016
1.17112
-
0.007 0.041772
0.015
0.004
0.03530
0.012
0.005
0.04588
0.015
0.000095
0.00057 0.00021 0.000066
0.00051 0.00018 0.004946
0.00054 0.00018
Land rehabilitation and reclamation
G4 MM1 Amount of land disturbed because of open-pit mining and rehabilitated, ha
2021
Metals
segment
Power
segment
En+
Metals
segment
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
Total amount of
land disturbed
because of open-pit
mining but not yet
rehabilitated as at 1
January of the
reporting year
Total amount of
land disturbed
because of open-pit
mining
Total amount of
rehabilitated land
for which a permit
for use has been
obtained
10,295
11,761.7
22,054.9
12,104.25
11,994.6
22,428
11,017
12,206
23,223
245
214
459
45
227
272
164
226
390
107
60
167
77
0
77
290
60
350
348
347
348
349
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Indicator
Number of
fatalities as a re-
sult of work-
related injuries
(employees)
Number of
fatalities as a re-
sult of work-
related injuries
(contractors)
Number of high-
consequence
work-related
injuries
(employees)
Number of high-
consequence
work-related
injuries
(contractors)
Number of work-
related incidents
(employees)
Number of work-
related incidents
(contractors)
Number of
recordable work-
related injuries27
(employees)
Number of
recordable work-
related injuries
(contractors)
Rate of fatalities
(employees), per
200,000
hours//1,000,000
hours
Rate of high-
consequence
work-related
injuries (em-
ployees), per
200,000
hours//1,000,000
hours
Rate of high-
consequence
work-related
injuries (con-
tractors), per
200,000
hours//1,000,000
hours
Total Recordable
Incident Rate
(TRIR)28
(employees), per
200,000 hours//
1,000,000 hours
Lost Time Injury
Frequency Rate
Occupational health and safety
GRI 403-9, GRI 403-10, SASB EM-MM-320a.1, SASB IF-EU-320a.1, HKEX KPI B2.1 Indicators related to injuries and
occupational diseases
Metals
segment
2021
Power
segment
2022
En+
Metals
segment
Power
segment
En+
Metals
segment
2023
Power
segment
En+
7
5
1
8
0
5
4
1
1
1
5
2
1
2
16
7
23
18
9
27
11
11
0
11
6
1
7
9
1
0
5
1
2
2
16
10
82
35
-
-
0.015//,0.075
35
117
0
35
-
-
-
-
-
85
22
-
-
36
121
2
24
84
26
29
113
2
28
-
-
-
-
-
115
43
158
31
-
-
- 0.002//0.01 0.004//0.018 0.003//0.015
- 0.008//0.04
-
-
-
-
-
-
- 0.043//0.214
-
0.27//1.35 0.225//1.125
-
0.23//1.15 0.332//1.66
-
0.24//1.2
0.15//0.77
0.21//1.05
0.17//0.87
0.14//0.68 0.16//0.81
0.18//0.89
0.13//0.67 0.16//0.81
0.18//0.9
0.1//0.52
0.15//0.76
27 Hereinafter in the Additional ESG data section, the number of recordable work-related injuries covers fatalities as a result of work-related
injuries, work-related injuries with temporary or permanent disability, and minor injuries requiring medical treatment and/or transfer to another
job.
28 Hereinafter in the Additional ESG data section, the TRIR indicator covers fatalities as a result of work-related injuries, work-related injuries with
temporary or permanent disability, and minor injuries requiring medical treatment and/or transfer to another job.
Indicator
(LTIFR)29
(employees), per
200,000 hours//
1,000,000 hours
Lost Time Injury
Frequency Rate
(LTIFR)
(contractors), per
200,000 hours//
1,000,000 hours
Work-related
injury rate 30
Number of cases
of occupational
diseases31
(employees)
Number of unsafe
condi-
tions/actions
identified
Total number of
man-hours
worked
(employees),
thousand
Total number of
man-hours
worked
(contractors),
thousand
Number of days
lost due to work-
related injuries
(employees)
NMFR
(employees), per
200,000 hours
NMFR
(contractors), per
200,000 hours
LTISR 32
(employees)
Metals
segment
2021
Power
segment
2022
En+
Metals
segment
Power
segment
En+
Metals
segment
2023
Power
segment
En+
-
-
-
-
-
-
-
-
-
-
-
-
-
0.09//0.43
-
1.5
0.9
1.2
114
91
205
123
65
188
142
113
255
270,023
56,551
326,574
350,366
49,955
400,321
351,645
37,967
389,612
90,909
51,845
149 029
95,639
53,574
149,213
97,111
55,994
153,105
-
3,546
5,847
-
-
-
-
0.166
0.28
-
-
-
-
-
-
-
-
-
-
4,147
5,157
-
0.258
0.05
-
-
-
-
-
-
-
-
0.05
0.25
-
-
-
13.00
-
-
4,675
-
6,107
2,199
8,306
Indicator
2021
2022
2023
RUB
USD
RUB
USD
RUB
USD
Total health and safety expenses, RUB ‘000
Health and safety expenses per employee, 34
RUB ‘000
Amount of fines for health and safety violations,
RUB ‘000
Metals segment
-
-
-
-
-
-
-
-
-
-
-
-
4,026,000
48,948
70.5
0.9
2,832
34.4
Power segment
Total health and safety expenses, RUB ‘000
1,085,800
14,747
1,317,600
19,221
1,182,587
15,169
Health and safety expenses per employee,
RUB ‘000
30.8
0.5
35.5
0.5
38.1
0.5
29 Hereinafter in the Additional ESG data section, the LTIFR figure covers all injuries with temporary disability recorded by the Company over the
given period.
30 To be calculated as the ratio of injuries over the reporting period to the average headcount for the same period multiplied by 1,000.
31 Hereinafter in the Additional ESG data section, the details of work-related ill health cover only recorded cases for existing employees and
contractors. The statistics do not include cases of newly diagnosed work-related ill-health in the post-exposure period.
32 Hereinafter in the Additional ESG data section, the LTISR indicator is calculated per 200 thousand man-hours worked and takes into account
the number of days of disability due to occupational injuries for the specified period.
33 Hereinafter in the Additional ESG data section, expenditures are calculated on the basis of the USD/RUB average exchange rate of RUB 73.63
per USD for 2021, RUB 68.55 per USD for 2022, RUB 85.24 per USD for 2023.
34 Hereinafter in the Additional ESG data section, calculated as the ratio of actual health and safety expenses for the reporting period to the
average headcount in the same period.
350
0.04//0.2
-
-
0.04//0.2
-
-
0.02//0.1 0.018//0.089
0.02//0.1
Health and safety expenditures33
350
349
351
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Total health and safety expenses, RUB ‘000
Health and safety expenses per employee, RUB
‘000
Health and safety training
En+
-
-
-
-
-
-
-
-
5,273,680
64,117
58.2
0.7
Employees
GRI 2-7 Headcount, people
Indicator
Metals
segment
Power
segment
En+
Metals
segment
2021
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
Average amount of
health and safety
training (employ-
ees), hours/person
Average amount of
health and safety
training (contrac-
tors), hours/person
37.2
33
36
24.8
38
30
27.5
40
32
57,933//
35,256//
93,189//
59,463//
37,154//
97,583//
57,100//
32,755//
90,542//
100%
100%
100%
100%
100%
100%
100%
100%
100%
GRI 403-8 Employees covered by the occupational health and safety management system
Metals
segment
2021
Power
segment
En+
Metals
segment
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
Indicator
Number and
percentage of
people covered by
the occupational
health and safety
management
system, people//%
Metals
segment
2021
Power
segment
En+
Metals
segment
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
Headcount at
Russian and
international
facilities, including
Russia
Other countries
Percentage of full-
time employees, %,
including
Female
Male
Percentage of
permanent
employees, %,
including
Female
Male
57,933
35,256
93,189
59,463
37,154
96,617
57,100
32,964
90,064
47,873
10,060
35,247
83,120
9
10,069
49,313
10,150
37,146
86,459
49,702
32,956
82,658
8
10,158
7,398
8
7,406
98.9
99.1
99.0
97.1
99.1
97.9
98.7
99.3
98.9
98.7
99.0
98.6
99.3
98.7
99.2
97.5
97.0
98.5
99.4
97.9
97.8
98.3
98.9
98.8
99.6
98.5
99.1
92.3
96.1
94.2
92.4
95.5
93.6
92.3
96.4
93.8
89.4
93.2
94.6
96.8
92.0
95.0
90.0
93.2
93.7
96.2
91.6
94.3
90.1
93.1
94.5
97.4
92.0
94.5
57,933//
35,256//
93,189//
59,463//
37,154//
97,583//
57,100//
32,755//
90,542//
100%
100%
100%
100%
100%
100%
100%
100%
100%
GRI 405-1 Diversity of employees, %
Metals segment
Power segment
2021
2022
2023
2021
2022
2023
2021
En+
2022
2023
Workforce gender diversity
24.9
25.1
25.2
10.5
10.1
9.8
31.1
11.2
31.6
34.1
28.0
27.6
28.4
10.9
11.3
10.9
10.4
10.4
62.5
62.4
62.6
62.4
62.9
62.8
62.5
62.6
62.7
26.9
27.6
27.6
26.4
26.2
25.9
26.7
27.0
26.9
75.1
15.9
74.9
74.8
68.9
68.4
65.9
72.0
72.4
71.6
14.6
14.1
13.6
13.8
13.9
14.8
14.3
14.0
63.0
63.1
63.1
57.3
57.3
57.5
60.2
61.0
61.2
21.1
22.4
22.8
29.1
28.8
28.6
25.1
24.7
24.8
17.4
18.0
18.9
22.6
24.4
29.7
20.0
19.9
22.3
Gender diversity of senior management
0.0
71.9
28.1
0.0
0.0
1.2
2.8
5.3
0.6
1.0
2.2
74.2
67.4
79.0
65.3
69.5
75.5
70.9
68.3
25.8
32.6
19.8
31.9
25.3
24.0
28.1
29.5
82.6
82.0
81.1
77.4
75.6
70.3
80.0
80.1
77.7
0.2
0.2
1.1
0.7
0.4
0.4
0.5
0.3
0.9
57.7
58.7
55.7
69.8
64.6
63.1
63.8
60.3
57.8
42.1
41.2
43.2
29.5
35.0
36.4
35.8
39.4
41.3
21.2
21.7
22.2
22.4
23.2
25.5
21.8
22.4
23.8
Gender diversity of middle-level management
1.6
2.1
10.6
3.1
3.4
4.1
2.4
2.7
3.2
Female,
including
under 30
years old
30–50 years
old
over 50 years
old
Male,
including
under 30
years old
30–50 years
old
over 50 years
old
Female,
including
under 30
years old
30–50 years
old
over 50 years
old
Male,
including
under 30
years old
30–50 years
old
over 50 years
old
Female,
including
under 30
352
352
351
353
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Metals segment
Power segment
2021
2022
2023
2021
2022
2023
2021
En+
2022
2023
66.2
65.3
66.2
67.6
68.0
66.6
66.9
66.7
66.4
32.2
32.7
23.2
29.3
28.6
29.3
30.8
30.6
30.3
78.8
78.3
77.8
77.6
76.8
74.5
78.2
77.6
76.2
3.2
2.7
2.4
3.4
3.9
4.0
3.3
3.3
3.1
68.9
67.6
66.9
67.0
67.3
67.4
68.0
67.5
67.2
27.9
29.7
30.7
29.5
28.8
28.6
28.7
29.2
29.7
54.5
55.6
55.2
58.8
58.8
58.8
56.7
57.2
57.0
Gender diversity of specialists
14.1
14.3
13.2
12.4
12.0
12.5
13.3
13.0
12.8
67.0
66.8
67.7
67.6
68.6
68.8
67.3
67.7
68.3
18.9
18.9
19.1
20.1
19.5
18.7
19.5
19.2
18.9
45.5
44.4
44.8
12.9
11.4
10.7
41.2
13.2
41.2
12.8
41.2
43.4
42.8
43.0
14.0
13.1
12.1
12.3
66.3
65.7
65.3
62.9
63.6
63.6
64.6
64.6
64.5
20.8
23.0
24.0
23.9
23.6
22.4
22.4
23.3
23.2
20.2
20.1
20.1
22.6
22.9
25.4
21.4
Gender diversity of blue-collar employees
9.9
9.0
9.0
11.8
11.4
11.7
10.9
21.1
9.9
21.7
10.0
59.9
59.7
59.5
56.2
56.3
56.0
58.1
58.5
58.2
30.2
31.3
31.5
32.0
32.4
32.3
31.1
31.7
31.8
79.8
79.9
79.9
77.4
77.1
74.6
78.6
78.9
78.3
Percentage of
employees with
disabilities, %
0.6
0.9
0.6
1.1
0.8
0.7
1.5
1.0
Employees of retirement age
Metals
segment
2021
Power
segment
2022
En+
Metals
segment
Power
segment
En+
Metals
segment
2023
Power
segment
En+
Number of
employees of
retirement age,
people
Percentage of
employees of
retirement age, %
--
--
--
-
--
--
-
-
-
-
-
-
1,774
3,715
5,489
3.1
11.3
6
GRI 401-1 New employee hires, people
Metals
segment
2021
Power
segment
2022
2023
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Total, including
Russia
Other countries
8,154
7,327
827
6,893
15,047
6,892
14,219
1
828
6,480
5,747
733
7,226
7,226
0
13,706
12,973
733
6,429
5,848
581
6,761
13,190
6,761
12,609
0
581
GRI 401-1 New employee hires by gender, %
Male
Female
2021
30.5
69.5
GRI 401-1 New employee hires by age, %
Under 30 years old
30–50 years old
Over 50 years old
2021
33.7
55.3
11.0
2022
30.8
69.2
2022
33.7
55.0
11.3
2023
32.7
67.3
2023
37.3
50.5
12.2
17.7
16.3
15.8
62.1
62.4
62.6
15.8
54.1
16.2
16.1
16.8
16.3
15.9
54.0
53.9
58.1
59.7
60.0
GRI 401-1 Employee turnover, 36 %
years old
30–50 years
old
over 50 years
old
Male,
including
under 30
years old
30–50 years
old
over 50 years
old
Female,
including
under 30
years old
30–50 years
old
over 50 years
old
Male,
including
under 30
years old
30–50 years
old
over 50 years
old
Female,
including
under 30
years old
30–50 years
old
over 50 years
old
Male,
including
under 30
years old
30–50 years
old
over 50 years
old
20.2
21.3
21.6
30.1
29.8
30.0
25.2
24.1
24.1
Number of employees with three or more children
Metals
segment
2021
Power
segment
2022
2023
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Number of
employees with
three or more
children
2,720
-
-
2,869
-
-
2,854
1,947
4,801
Employees with disabilities
Metals
segment
2021
Power
segment
2022
2023
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
345
333
372 35
413
785
397
503
900
Number of
employees with
disabilities, people
2021
Metals
segment
Power
segment
Employee turnover
Female
under 30 years old
30–50 years old
over 50 years old
Male
under 30 years old
30–50 years old
over 50 years old
10.6
10.3
20.7
8.6
10.3
10.7
18.9
8.2
12.0
13.6
15.5
27.9
13.5
14.8
12.8
20.7
11.5
11.7
En+
12.1
12.9
24.3
11.1
12.6
11.8
19.8
9.9
11.9
2022
Metals
segment
Power
segment
9.5
9.8
21.5
7.9
9.9
9.4
17.7
6.8
11.3
12.2
14.0
26.5
12.0
13.6
11.4
18.7
10.1
10.6
En+
10.5
11.6
23.8
9.7
11.5
10.1
18.0
7.9
11.0
Metals
segment
2023
Power
segment
11.3
11.4
23.4
9.7
11.1
11.2
21.5
8.6
12.1
15.4
18.6
43.5
16.3
13.3
13.8
31.9
11.6
9.5
En+
12.8
14.6
32.9
12.6
12.0
12.1
25.0
9.5
11.1
GRI 401-1 Employee turnover by region, %
2021
2022
2023
35 The value was adjusted as a result of data refinement
354
353
36 The values have been recalculated due to improvements in the methodology. The calculation is based on the headcount as at the end of the
year. The high employee turnover in 2019 was caused by layoffs as a result of the reorganisation of the Engineering and Construction Division.
354
355
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Metals
segment
Power
segment
Russia
Other countries
11.0
8.7
13.6
77.8
En+
12.3
43.3
Metals
segment
Power
segment
9.7
8.7
12.2
12.5
En+
11.0
10.8
Metals
segment
Power
segment
11.7
8.2
15.4
0
En+
13.2
8.2
GRI 202-2 Proportion of senior management hired from the local community in Russia and other countries, % 37
2021
Metals
segment
Power
segment
Russia
Other countries
99.8
60.8
100
100
En+
99.9
80.4
Metals
segment
99.8
91.9
2022
Power
segment
100
100
En+
99.9
82.3
Metals
segment
99.8
60.7
2023
Power
segment
100
100
En+
98.2
60.7
GRI 401-3 Parental leave
Total number of employees that
were entitled to parental leave
Female
Male
Total number of employees that
took parental leave
Female
Male
Total number of employees that
returned to work in the reporting
period after parental leave ended
Female
Male
Total number of employees that
returned to work after parental
leave ended that were still
employed 12 months after their
return to work
Female
Male
Retention rate of employees that
took parental leave 38, %
2021
2022
2023
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
Metals
segment
Power
segment
En+
7,186
1,221
8,407
5,924
1,750
7,674
6,539
1592
8,131
1,536
5,650
312
291
21
630
2,166
591
6,241
1,275
4,649
810
2,085
940
5,589
1,634
4,905
568
880
535
33
826
54
333
320
13
579
912
547
32
867
45
352
309
43
960
2,594
632
5,537
487
839
467
20
776
63
280
218
498
317
287
604
270
219
489
267
13
208
10
475
23
300
17
272
15
572
32
237
33
210
9
447
42
215
126
341
227
149
376
222
121
343
203
12
119
7
322
19
80.8
52.5
66.7
221
6
81.1
142
363
7
13
213
9
118
3
331
12
68.3
75.5
83.6
44.0
57.9
GRI 2-30, SASB EM-MM-310a.1 Employees covered by collective bargaining agreements, %
GRI 202-1 Standard entry level wage for employees and established minimum wage in the key countries of the Metals
segment’s operation 39
Region
2021
2022
2023
2021
2022
2023
RUB
USD
RUB
USD
RUB
USD
RUB
USD
RUB
USD
RUB
USD
Standard entry level wage
Established minimum wage in the region
Russia
18,100
22,000
321
23,785
279
12,792
177
15,279
223
16,242
191
Republic
of
Armenia
Ukraine
Jamaica
Guinea
32,360
17,563
23,043
5,054
Guyana
40,949
Nigeria
10,540
246
439
238
313
69
556
143
37,851
564
53,963
626
13,824
188
14,570
213
22,318
262
14,203
207
-
-
17,563
23,624
345 32 742
5,284
77
6 705
384
79
14,815
3,319
37,958
554 47 656
560
15,565
8,955
131
8504
42
5,533
238
201
45
211
75
14,203
207
-
-
17,338
253
30,956
363
4,338
63
5,504
65
19,640
286
24,396
286
4,852
71
3,977
47
GRI 202-1 Standard entry level wage for employees and established minimum wage in Russia and the CIS for the Power
segment 40
Region
2021
2022
2023
2021
2022
2023
RUB
USD
RUB
USD
RUB
USD
RUB
USD
RUB
USD
RUB
USD
Standard entry level wage 41
Established minimum wage in the region 42
Russia
15,316
208
17,600
257
18,000
211
12,792
174
15,279
223
16,242
Volgograd Region
16,000
217
17,600
257 22,880
269
12,792
174
15,279
223
17,519
Moscow
28,752
390
31,680
462
38,736
456 20,589
280 23,508
343
29,389
St. Petersburg
37,950
515
41,745
609 46,260
543
19,650
267 23,500
343 25,000
Trans-Baikal Territory
19,188
261
19,863
290 24,363
286
19,188
261
19,863
290
24,363
Irkutsk Region
20,467
278
22,423
327
22,801
268 20,467
278 23,508
343
16,242
Krasnodar Territory
30,256
411
18,000
263
18,000
211
12,792
174
16,043
234
17,054
Krasnoyarsk Territory
22,226
302
24,446
357
25,987
305 20,467
278 24,446
357
25,987
Moscow Region
27,590
375
22,989
335
28,736
337
12,792
174
15,279
223
19,000
Nizhny Novgorod Region
15,316
208
18,908
276 24,593
289
12,792
174
15,279
223
16,242
Republic of Karelia
31,375
426
34,513
503 39,680
466 23,026
313 27,502
401
29,236
Republic of Tyva
25,452
346 29,030
423 30,860
362 24,305
330 29,030
423 30,860
Republic of Khakassia
20,467
278
24,446
357
25,987
305 20,467
278 24,446
357
25,987
Chelyabinsk Region
21,011
285
23,178
338
14,711
200
17,571
256
Yaroslavl Region
46,665
634
63,201
922 59,880
703
12,792
174
15,279
223
16,242
Armenia
16,000
217
17,975
262 25,049
294
12,792
174
14,352
209 20,000
Primorsky Territory
28,752
390 40,000
584
47,123
553 20,589
280
22,919
334
25,987
Sakhalin Region
37,950
515
29,794
435 29,279
344
19,650
267 29,794
435
29,279
191
206
345
294
286
191
200
305
223
191
343
362
305
191
235
305
344
2021
Metals
segment
Power
segment
En+
Metals
segment
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
GRI 405-2 Ratio of basic salary and remuneration of men to women
Employees covered
by collective
bargaining
agreements,
including
Russia
Other countries
-
-
86.0
-
-
86.3
85.5
83.6
84.8
85.7
79.5
88.3
-
-
-
87.9
78.4
86.5
-
-
-
87.7
70.8
83.6
-
86.1
70.7
2021
2022
2023
Metals segment
Power segment Metals segment
Power segment Metals segment
Power segment
1.33
1.7
1.15
1.48
1.41
1.18
1.46
1.09
1.22
1.4
1.16
1.19
1.06
1.19
1.53
1.13
1.26
1.02
1.22
1.34
1.29
1.32
1.09
1.44
1.41
0.95
1.32
1.06
1.19
1.34
Average salary
Senior management
Middle-level
management
Specialists
Blue-collar
employees
37 The geographical definition of “local” includes a country. Senior management includes the president, vice-presidents, directors of enterprises
and production units and other functions, as well as their deputies.
38 Retention rate of employees that took parental leave:
356
Retention rate of employees that took parental leave =
Total number of employees retained 12 months after returning to work following a period of parental leave
Total number of employees returning from parental leave in the prior reporting period(s)
× 100%
355
39 Calculated on the basis of the average USD/RUB exchange rate of RUB 73.58 for 2021, RUB 68.55 for 2022, RUB 85.25 for 2023.
40 Calculated on the basis of the average USD/RUB exchange rate of RUB 73.63 for 2021, RUB 68.55 for 2022, RUB 85.25 for 2023.
41 Average values.
42 Average values; includes the regional coefficient and Northern index.
356
357
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
200,735
200,735
320,233
257,465
577,698
Daily food subsidy
666,839
666,839
1,566,193
602,404 2,168,597
Preferential mortgage program
Compensation of 80% of the cost of children's vouchers to the "Sun City" DOLK
GRI 404-1 Total hours of training, hours
2021
Metals
segment
Power
segment
En+
Metals
segment
Hours of training
Female
Male
Hours of training
(senior
management)
Hours of training
(middle-level
management)
Hours of training
(specialists)
Hours of training
(blue-collar
employees)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
GRI 404-1 Average hours of training per year, hours
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
1,145,959
1,145,959
2,158,473
1,260,239
3,418,712
185,349
185,349
11,461
196,999
208,460
960,610
960,610
1,747,012
1,063,240 2,810,252
21,804
21,804
37,012
31,396
68,408
256,581
256,581
235,036
368,974
604,010
Metals
segment
2021
Power
segment
En+
Metals
segment
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
Hours of training
Female
Male
Hours of training
(senior
management)
Hours of training
(middle-level
management)
Hours of training
(specialists)
Hours of training
(blue-collar
employees)
Training costs, thousands
4
2
1
8
11
0.1
-
-
-
-
-
-
-
-
-
-
-
-
16
21
11
23
23
3
16
38
74
56
22
29
16
30
43
40
22
16
29
41
53
51
40
34
18
49
98
24
45
76
88
70
30
30
35
32
2021
2022
2023
RUB
USD
RUB
USD
RUB
USD
Metals segment
Employee training costs
352,600
6.1
-
-
-
-
Training costs per employee
Costs to build the talent
pool
Employee training costs
Training costs per employee
Costs to build the talent
pool
Employee training costs
Training costs per employee
Costs to build the talent
pool
4,136
0.07
-
-
-
-
435,112
5,104.0
530,417
6,221.9
-
-
-
-
9.3
-
0.11
-
Power segment
408,100
4,787.1
730,353
8,567.2
7.3
0.1
22.3
0.3
204,200
2,395.3
485,458
5,694.5
En+
843,212
9,891.05
1,260,770
14,789.09
14
0.16
204,200
2,395.3
485,458
5,694.5
GRI 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees in Power
segment
Type of benefits
Power segment
Employees who used the provided benefits,
%
Life insurance
Medical services
Health resort treatment and vacations
Disability payments (over and above those stipulated by law)
Child care leave
Pension programs
Dismissal payments (in excess of those provided for by law)
Material assistance of all types
One-time incentive payments for employee anniversaries (from 50 years onwards)
Reimbursement of 50% of the cost of fitness club subscriptions
33
54
7
0
3
5
0
57
5
1
71
2
1
EExxppeennddiittuurreess oonn ssoocciiaall pprrooggrraammss ffoorr eemmppllooyyeeeess,, RRUUBB tthhoouussaannddss
22,,118800,,332288
GRI 2-27 Compliance with laws and regulations, pcs
Total amount of significant fines
Total number of cases of application of non-financial
sanctions
Total number of cases using dispute resolution
mechanisms
2021
2022
2023
Power segment
0
0
0
0
0
0
Number of employees in Power segment belonging to associations, people.
Показатель
2023
Power segment
Number of employees who are members of Youth Councils
Number of employees who are members of Working Councils
Number of employees who are members of Women's Councils
0
0
0
874
383
195
Contribution to local communities
GRI 413-1 Social investments
Power
segment
Metals
segment
En+
Power
segment
Metals
segment
En+
Power
segment
Metals
segment
En+
RUB
USD
RUB USD
RUB
USD
RUB
USD
RUB
USD
RUB
USD
RUB
USD
RUB USD
RUB
USD
Volunteering
24.8
0.3
0.0
0.0 24.8
0.3
26.8
0.4
0.0
0.0
26.8
0.4
71.2
0.8
5.0
0.1
77.1
0.9
Social
assistance
and support
65.8
0.9
28.5
0.4 94.3
Sports
128.1
1.7
56.5
0.8
184.7
1.3
2.5
122.8
1.8
36.9
0.5
159.7
2.3
174.9
810.8
11.8
46.2
0.7
857.0
12.5
738.2
Healthcare
1,079.2
14.7 2.2
0.0
1,081.4
14.7
91.9
Culture
97.2
1.3
69.8
0.9
167.0
2.3
82.7
1.3
1.2
1.9
0.0
93.8
47.4
0.7
130.1
1.4
1.9
411.4
11.0
2.1
8.7
4.8
0.1
40.6
0.5 217.6
43.4
0.5 790.2
7.9
0.1
424.1
27.8
0.3 39.0
2.6
9.3
5.0
0.5
Environmental
and animal
protection
Educational
projects
Social
infrastructure
358
164.6
2.2
37.4
0.5 202.0
2.7
177.9
2.6
74.7
1.1
252.6
3.7
146.6
1.7
57.4
0.7 205.8
2.4
892.9
12.1
355.6 4.8
1,248.5
17.0
725.1
10.6 937.0
13.7
1,662.1
24.2
1,645.3
19.3
311.2
3.7
1,975.8 23.2
620.2
8.4
121.9
1.7
742.2
10.1
142.0
2.1
116.2
1.7
258.2
3.8
1,138.0
13.3
25.3
0.3
1,176.7
13.8
358
357
359
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
and urban
environment
Development
of NPOs and
local
communities
Other
TToottaall
250.3
3.4
9.0
0.1
259.3
0.0
56.3
0.8 56.3
3.5
0.8
-
-
0.0
10.2
0.1
10.2
0.0
50.9
0.7
50.9
0.1
0.7
392.0
4.6
0.0
4.7
4.7
0.1
401.3
0.1
4.7
4.7
0.1
33,,332233..22 4455..11 668811..00 99..22
44,,000044..11 5544..44 22,,118800..00 3311..88
11,,227700..55
1188..55 33,,445500..55 5500..33 44,,772288..66 5555..4477 552288..00 66..11
55,,331122..11 6622..33
Corporate governance
Diversity of the Board of Directors, %
Tenure
1–3 years
4–9 years
10+ years
2021
92
8
0
2022 43
64
36
0
2023
75
25
0
GRI 2-9, 405-1 Composition and diversity of committees as at 31 December 2023, %
Audit and Risk
Committee
Compliance
Committee
Corporate
Governance
Committee
Health, Safety, and
Environment
Committee
Nominations
Committee
Remuneration
Committee
Executiveness
Executive
Non-executive
Independence
Independent
Non-
independent
Tenure
1–3 years
4–9 years
10+ years
Gender
Male
Female
0
100
100
0
60
40
0
100
0
0
100
60
40
100
0
0
40
60
0
100
60
40
80
20
0
60
40
0
100
80
20
80
20
0
60
40
0
100
100
0
75
25
0
50
50
43 As at 31 December 2022.
360
0
100
60
40
80
20
0
80
20
359
Corporate ethics and compliance
Categories of relevant messages to the Signal hotline, %
Labour relations
Relations with counterparties
Occupational health and safety
Asset protection
Other
2022
38
31
11
10
10
Supply chain management44
GRI 204-1 Procurement practices
2023
47
21
9
8
14
Metals
segment
2021
Power
segment
En+
Metals
segment
2022
Power
segment
En+
Metals
segment
2023
Power
segment
En+
8,574.1
445.4
9,019.5
7,802.3
1,846.78
9,649.15
3,874
1,996.9
5,840.9
631.5
32.8
664.3
534.8
126.6
661.4
330.2
167.7
497.9
32
76
34
35
57
39
68
50
62
-
-
-
-
-
-
-
-
-
-
-
-
0.9
63.7
68.2
0.3
40.2
13.7
Total purchases
from local suppliers,
USD mn
Total purchases
from local suppliers,
RUB bn
Percentage of
purchases from local
suppliers, %
Total purchases
from small and
medium-sized
suppliers, RUB bn
Percentage of
purchases from
small and medium-
sized suppliers, %
Innovation management45
2021
2022
Power
segment
Metals
segment
En+
Power
segment
Metals
segment
En+
Power
segment
2023
Metals
segment
En+
1.4
99.8,
-
-
-
-
2.2
152
0.8
3
54.7
206.7
1.1
90
21.4
22.5
1,824
1,914
4.7
43.2
47.9
9.3
41.3
50.6
9.8
76.38
86.2
346.1
3,181.7
3,527.8
643
2,833
3,476
843
6,500
7,300
Investment in
R&D, USD mn
Investment in
R&D, RUB mn
Total economic
effect of
business
system
projects and
proposals, USD
mn
Total economic
effect of
business
system
projects and
proposals, RUB
mn
44 Indicators 'Total purchases from small and medium-sized suppliers, RUB bn' and 'Percentage of purchases from small and medium-sized
suppliers, %' are presented only for 2023, since previously there was no corresponding information recording system.
45 Data on investment in R&D by Power segment in 2022 and in total for En+ have been adjusted.
360
361
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
GRI content index
Topic
GRI
indicator
Reference/response
GRI 1 Foundation
GRI 2 General disclosures
1. THE ORGANIZATION AND ITS REPORTING PRACTICES
Organizational details
GRI 2-1
About the report, p. 5
Our presence and scale, p.14
Limitation of liability, p. 391
Topic
GRI
indicator
Reference/response
Collective knowledge of the
highest governance body
Evaluation of the performance
of the highest governance body
GRI 2-17
Corporate governance, p. 182
GRI 2-18
Corporate governance, p. 182
Remuneration policies
GRI 2-19
Corporate governance, p. 193
Process to determine
remuneration
GRI 2-20
Corporate governance, p. 192
Annual total compensation ratio
GRI 2-21
The data cannot be disclosed as the annual total compensation ratio is
confidential.
Information for shareholders and investors, p. 196
4. STRATEGY, POLICIES AND PRACTICES
Entities included in the
organization’s sustainability
reporting
Reporting period, frequency
and contact point
GRI 2-2
About the report, p. 5
Limitation of liability, p. 391
GRI 2-3
About the report, p. 4
Restatements of information
GRI 2-4
About the report, p. 5
External assurance
GRI 2-5
About the report, p. 4
2. ACTIVITIES AND WORKERS
Activities, value chain and other
business relationships
Corporate governance, p. 188
Additional ESG Data, p. 384
GRI 2-6
Business review, p. 30, 38
Stakeholder engagement, p. 224
Additional ESG Data, p. 334
Employees
GRI 2-7
Employees, p.150
Additional ESG Data, p. 353
External personnel
GRI 2-8
Employees, p. 150
The number of non-employees, changes in this indicator and calculation
methods were not collected.
3. GOVERNANCE
Governance structure and
composition
Nomination and selection of the
highest governance body
Chair of the highest governance
body
Role of the highest governance
body in overseeing the
management of impacts
Delegation of responsibility for
managing impacts
GRI 2-9
Corporate governance, p. 171
Additional ESG Data, p. 360
GRI 2-10
Corporate governance, p. 174
GRI 2-11
Corporate governance, p. 175
GRI 2-12
Sustainability management, p. 78
Internal control and risk management, p. 202
GRI 2-13
Sustainability management, p. 78
Climate change, p. 87
Energy management, p. 100
Occupational health and safety, p.128
Employees, p. 139
Contribution to local communities, p. 156
Corporate governance, p. 171
Internal control and risk management, p. 201-202
Corporate ethics and compliance, p. 210
Stakeholder engagement, p. 216, 222
Responsible business practices, p. 231, 234, 238
Role of the highest governance
body in sustainability reporting
GRI 2-14
About the report, p. 4
Materiality assessment, p. 78-79
Conflicts of interest
GRI 2-15
Corporate governance, p. 170, 190
Communication of critical
concerns
GRI 2-16
Corporate governance, p. 180
Internal control and risk management, p. 202
Statement of sustainable
development strategy
GRI 2-22
Statement from the Chief Executive Officer, p. 20
Policy commitments
GRI 2-23
Contribution to Sustainable Development Goals, p. 80, 82
Embedding policy
commitments
Processes to remediate
negative impacts
Employees, p. 142
Corporate ethics and compliance, p. 209, 212
GRI 2-24
Corporate ethics and compliance, p. 210-211
Stakeholder engagement, p. 223
GRI 2-25 Materiality assessment, p. 78-79
Climate change, p. 87
Environmental protection, p. 105
Occupational health and safety, p. 131
Internal control and risk management, p. 202
Corporate ethics and compliance, p. 212
Stakeholder engagement, p. 216
Additional ESG Data, p. 332-333
Mechanisms for seeking advice
and raising concerns
Compliance with laws and
regulations
GRI 2-26
Corporate ethics and compliance, p. 212
Stakeholder engagement, p. 216
GRI 2-27
Environmental protection, p. 112
Employees, p. 139
Corporate governance, p. 170
Additional ESG Data, p. 343, 359
Membership associations
GRI 2-28
Environmental protection, p. 120
Stakeholder engagement, p. 218
5. STAKEHOLDER ENGAGEMENT
Approach to stakeholder
engagement
Collective bargaining
agreements
GRI 3 Material topics
GRI 2-29
Contribution to local communities, p. 153
Stakeholder engagement, p. 215, 216
GRI 2-30
Employees, p. 142
Additional ESG Data, p. 356
Process to determine material
topics
GRI 3-1
Materiality assessment, p. 79, 80
Additional ESG Data, p. 332
List of material topics
GRI 3-2 Materiality assessment, p. 79
Management of material topics
GRI 3-3
Strategy, p. 24
Sustainability management, p. 78
Climate change, p. 87-89, 98
Energy management, p. 100
Environmental protection, p. 105, 107, 108, 109, 111, 112, 113, 116, 120, 122,
123
Occupational health and safety, p.127
Employees, p. 138, 143
Contribution to local communities, p. 153
Stakeholder engagement, p.214, 216, 222
Responsible business practices, p. 227, 229, 231, 234, 237-238, 241
362
363
361
GRI 200 ECONOMIC
GRI 201 ECONOMIC PERFORMANCE
Direct economic value
GRI 201-1 Additional ESG Data, p. 330
362
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Topic
GRI
indicator
Reference/response
Topic
GRI
indicator
Reference/response
generated and distributed
Financial implications and other
risks and opportunities due to
climate change
Defined benefit plan obligations
and other retirement plans
Financial assistance received
from government
GRI 202 MARKET PRESENCE
Ratios of standard entry level
wage by gender compared to
local minimum wage
Proportion of senior
management hired from the
local community
GRI 201-2 Additional ESG Data, p. 336
Climate change, p. 94, 96
GRI 201-3 Consolidated Financial Statement, p. 246
GRI 201-4 Additional ESG Data, p. 330
GRI 202-1 Additional ESG Data, p. 357
In the Metals segment, the amount of the standard entry level wage is
disclosed without a breakdown by gender due to the specifics of data
collection.
GRI 202-2 Additional ESG Data, p. 356
Significant locations of En+ operations are the regions where production
facilities and key personnel of its enterprises are located.
GRI 203 INDIRECT ECONOMIC IMPACTS
Infrastructure investments and
services supported
Significant indirect economic
impacts
GRI 203-1 Contribution to local communities, p. 157
GRI 203-2 Contribution to local communities, p. 154, 158, 160
Stakeholder engagement, p. 224
Additional ESG Data, p. 334
GRI 204 PROCUREMENT PRACTICES
Proportion of spending on local
suppliers
GRI 204-1 Stakeholder engagement, p. 224
Additional ESG Data, p. 361
GRI 205 ANTI-CORRUPTION
Operations assessed for risks
related to corruption
Communication and training
about anti-corruption policies
and procedures
Confirmed incidents of
corruption and actions taken
GRI 205-1 Corporate ethics and compliance, p. 210
GRI 205-2
Information on the total number and percentage of employees who have
been informed about the Company's anti-corruption policies and
procedures, as well as information on the total number and percentage of
employees who have received the relevant training has been excluded due
to existing reporting processes.
GRI 205-3
In 2023, the Company recorded three cases of corruption and fraud.
GRI 206 ANTI-COMPETITIVE BEHAVIOR
Legal actions for anti-
competitive behavior, anti-
trust, and monopoly practices
GRI 207 TAX
Approach to tax
GRI 206-1 Corporate ethics and compliance, p. 212
GRI 207-1
En+ is a responsible and reliable taxpayer. The basis for the preparation of
accounting policies for tax purposes in subsidiaries and affiliates is the
general accounting principles, which are reviewed annually by En+. En+ also
has a policy describing its approach to taxation.
Most of our tax expenses are related to income tax. The methodology for
calculating income tax expense is set out on p. 273.
En+ is a tax resident of the Russian Federation. It is also registered as a
resident of the SAR (Special Administrative Region) of Russia, which,
subject to certain conditions, provides a number of tax benefits.
The tax rate for the parent company and subsidiaries registered in Russia is
20%. In addition, subsidiaries are registered in 10 other countries where
the tax rate varies from 0% to 30%. The tax rates in other countries can be
found on p. 273.
We regularly publish tax information using various types of accounts:
Condensed consolidated interim financial information is published several
times a year (once every three or six months) and represents interim
information on tax expenses and tax liabilities for a given period.
Consolidated financial statements are published once a year and contain
Tax governance, control, and
risk management
Stakeholder engagement and
management of concerns
related to tax
financial information for a year ended 31 December.
The Consolidated Report is published annually and provides a review of the
financial results, including financial ratios and contingent liabilities.
The country-by-country report provides information for each tax
jurisdiction for all legal entities included in the Company’s audited
consolidated financial statements that are tax residents of a respective
country.
GRI 207-2 Systematic and rational tax risk management is key to the Company’s
investment attractiveness and financial stability. Thus, we take a
responsible approach to tax risk management, which includes
identification and monitoring of tax risks.
The Audit and Risk Committee is responsible for reviewing material
aspects of the accounting policies of the Company and its subsidiaries to
ensure their proper and consistent application. Further responsibilities of
the Audit and Risk Committee are described on p. 188, Corporate
Governance.
The departments responsible for tax issues within the Company develop
measures to eliminate or minimise the risks and work to avoid them in
compliance with tax legislation. Tax compliance is included in the KPIs of
the key divisions responsible for the Company's tax management. The
Accounting Department is in charge of tax policy compliance of the
Company. The Tax Policy Department is authorised to consider and
approve the Company's projects and transactions.
The Company performs regular internal and external audits of financial
statements.
GRI 207-3 We closely monitor the risks associated with the possibility of varying
interpretations and frequent changes in applicable tax, currency and
customs legislation. For example, as tax authorities take an increasingly
assertive stance in interpreting and enforcing tax laws, the Company may
need to challenge their interpretations of legal provisions that differ from
previous interpretations, which may involve dealing with local, state, and
federal authorities.
In planning our tax-related expenses, we estimate the maximum
cumulative additional amounts that could be paid if tax positions were not
sustained, as it is probable (although less than 50%) that additional taxes
may be due as a result of tax audits or disputes with tax authorities.
Country-by-country reporting
GRI 207-4
The data is partially presented in the financial review.
Consolidated Financial Statement, p. 246
GRI 300 ENVIRONMENTAL
GRI 302 ENERGY
Energy consumption within the
organization
GRI 302-1
Energy management, p. 102
Additional ESG Data, p. 340
Energy intensity
GRI 302-3 Energy management, p. 102
Reduction of energy
consumption
GRI 302-4 Energy management, p. 100
Additional ESG Data, p. 339.
GRI 303 WATER AND EFFLUENTS
Interactions with water as a
shared resource
Management of water
discharge-related impacts
Sources of conversion factors for calculation:
1. IPCC (2006) Guidelines for National Greenhouse Gas Inventories, Volume
2 Energy, Chapter 1 (Introduction), pp.1.19-1.20, tab. 1.2
2. Energy converter, available at http://convert-
to.com/conversion/energy/convert-kwh-to-gj.html
GRI 303-1
Environmental protection, p. 107, 111
GRI 303-2 Environmental protection, p. 107, 111
The water withdrawal and wastewater discharges are carried out by the
Company’s enterprises in accordance with project design solutions and
established legal requirements. Interaction with water bodies is regulated
taking into account their properties and the chemical composition of
discharges affecting water bodies.
364
363
364
365
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Water withdrawal
GRI 303-3 Environmental protection, p. 114, 115
Additional ESG Data, p. 344
Water discharge
GRI 303-4 Environmental protection, p. 114, 115
Additional ESG Data, p. 345
Water consumption
GRI 303-5 Environmental protection, p. 114, 115
Additional ESG Data, p. 345
GRI 304 BIODIVERSITY
Operational sites owned,
leased, managed in, or adjacent
to, protected areas and areas of
high biodiversity value outside
protected areas
Significant impacts of activities,
products, and services on
biodiversity
GRI 304-1
Environmental protection, p. 120, 123
GRI 304-2 Environmental protection, p. 120, 123
Habitats protected or restored
GRI 304-3 Environmental protection, p. 109, 118-119
GRI 304-4 Environmental protection, p. 124
IUCN Red List species and
national conservation list
species with habitats in areas
affected by operations
GRI 305 EMISSIONS
Direct (Scope 1) GHG emissions
GRI 305-1 Climate change, p.98-99
Energy indirect (Scope 2) GHG
emissions
Energy indirect (Scope 3) GHG
emissions
Additional ESG Data, p. 336
GRI 305-2 Climate change, p.98-99
GRI 305-3 Climate change, p.98-99
GHG emissions intensity
GRI 305-4 Climate change, p.99
Additional ESG Data, p. 336
Indirect energy emissions of scope 3 include emissions from fuels and raw
materials purchased by the Company
Reduction of GHG emissions
GRI 305-5 Sustainable development, p.74
Emissions of ozone-depleting
substances (ODS)
Nitrogen oxides (NOx), sulfur
oxides (SOx), and other
significant air emissions
GRI 306 WASTE
Waste generation and
significant waste-related
impacts
Management of significant
waste-related impacts
Climate change, p.90
GRI 305-6
There are no emissions of ODS
GRI 305-7 Environmental protection, p. 113
Additional ESG Data, p. 343
GRI 306-1
Environmental protection, p. 108
GRI 306-2 Environmental protection, p. 108
Waste generated
GRI 306-3 Environmental protection, p. 116-117
Additional ESG Data, p. 346
Waste diverted from disposal
GRI 306-4 Environmental protection, p. 116-117
Additional ESG Data, p. 346-347
Waste directed to disposal
GRI 306-5 Environmental protection, p. 117
Additional ESG Data, p. 347
GRI 308 SUPPLIER ENVIRONMENTAL ASSESSMENT
New suppliers that were
screened using environmental
criteria
Negative environmental
impacts in the supply chain and
actions taken
GRI 400 SOCIAL
GRI 308-1 Stakeholder engagement, p.223
GRI 308-2 Stakeholder engagement, p.223
GRI 401 EMPLOYMENT
New employee hires and
employee turnover
Benefits provided to full-time
employees that are not
provided to temporary or part-
time employees
GRI 401-1
Employees, p. 150
Additional ESG Data, p. 355
GRI 401-2
Employees, p. 142
Additional ESG Data, p. 358
Parental leave
GRI 401-3 Additional ESG Data, p. 356
GRI 402 LABOR/MANAGEMENT RELATIONS
Minimum notice periods
regarding operational changes
GRI 402-1
For Group companies located in the Russian Federation: “the minimum
period shall be two months pursuant to the current Labour Code of the
Russian Federation, federal laws and other regulatory legal acts containing
labor law norms, agreements and employment contracts, according to part
2 of Art. 74 of the Labour Code of the Russian Federation”.
GRI 403 OCCUPATIONAL HEALTH AND SAFETY
Occupational health and safety
management system
Hazard identification, risk
assessment, and incident
investigation
GRI 403-1 Occupational health and safety, p.127, 129, 136
GRI 403-2 Occupational health and safety, p. 127, 129, 130, 132, 134, 136
Occupational health services
GRI 403-3 Occupational health and safety, p. 131
Worker participation,
consultation, and
communication on occupational
health and safety
Worker training on occupational
health and safety
GRI 403-4 Occupational health and safety, p. 127, 134
GRI 403-5 Occupational health and safety, p. 129, 130, 133
Promotion of worker health
GRI 403-6 Occupational health and safety, p.131
Additional ESG Data, p. 352
Prevention and mitigation of
occupational health and safety
impacts directly linked by
business relationships
Workers covered by an
occupational health and safety
management system
Employees, p. 140
GRI 403-7 Occupational health and safety, p.132
GRI 403-8 Occupational health and safety, p.127
Additional ESG Data, p. 352
Work-related injuries
GRI 403-9 Occupational health and safety, p. 136, 137
Additional ESG Data, p. 350-351
Work-related ill health
GRI 403-10 Occupational health and safety, p. 131, 137
Additional ESG Data, p. 351
GRI 404 TRAINING AND EDUCATION
Average hours of training per
year per employee
Programs for upgrading
employee skills and transition
assistance programs
GRI 404-1 Additional ESG Data, p. 357
GRI 404-2 Employees, p. 144
GRI 405 DIVERSITY AND EQUAL OPPORTUNITY
Diversity of governance bodies
and employees
GRI 405-1
Employees, p. 150
Additional ESG Data, p. 353
Ratio of basic salary and
remuneration of women to men
GRI 406 NON-DISCRIMINATION
Incidents of discrimination and
corrective actions taken
GRI 405-2 Employees, p. 151
Additional ESG Data, p. 356
GRI 406-1
Employees, p. 142
GRI 407 FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
GRI 407-1
Stakeholder engagement, p.223
Operations and suppliers in
which the right to freedom of
association and collective
bargaining may be at risk
366
366
365
367
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
GRI 408: CHILD LABOR
Operations and suppliers at
significant risk of incidents of
the use of child labor
GRI 408-1
Employees, p. 142
Stakeholder engagement, p.223
GRI 409: FORCED AND COMPULSORY LABOR
Operations and suppliers at
significant risk for incidents of
forced or compulsory labor
GRI 409-1
Employees, p. 142
Stakeholder engagement, p.223
GRI 411 RIGHTS OF INDIGENOUS PEOPLES
Incidents of violations involving
rights of indigenous peoples
GRI 411-1
In 2023, the Company did not record any conflicts related to lands or
objects that present historical or cultural value for indigenous
communities.
GRI 413 LOCAL COMMUNITIES
Operations with local
community engagement,
impact assessments, and
development programs
GRI 413-1 Occupational health and safety, p.132
Employees, p. 142
Contribution to local communities, p. 153
GRI 414 SUPPLIER SOCIAL ASSESSMENT
New suppliers that were
screened using social criteria
Negative social impacts in the
supply chain and actions taken
GRI 415 PUBLIC POLICY
GRI 414-1
Stakeholder engagement, p.223
GRI 414-2
Stakeholder engagement, p.223
Political contributions
GRI 415-1 Corporate ethics and compliance, p. 212
GRI 417 MARKETING AND LABELING
Requirements for product and
service information and labeling
GRI 417-1
Finished goods manufactured by the Company’s enterprises are
automatically labelled in accordance with legal requirements. The label
contains information about the trademark and name of the manufacturer,
the grade of aluminium or alloy, the heat number, and other information.
Incidents of non-compliance
concerning product and service
information and labeling
GRI 417-2
In 2023, the Company complied with the relevant legislation affecting
RUSAL in terms of product labelling, no significant labelling violations were
identified.
GRI EU
Installed capacity by primary
energy source
Net energy output by energy
source and regulatory regime
GRI MM
Amount of land disturbed
because of open-pit mining and
amount of reclaimed land
The number and percentage of
total sites identified as
requiring biodiversity
management plans according
to stated criteria, and the
number (percentage) of those
sites plans in place
Total volume of overburden,
rock, tailings and sludge and
associated risks
EU1
EU2
Additional ESG Data, p. 340
All energy-generating assets are subject to the legal and regulatory
framework adopted in the Russian Federation.
Additional ESG Data, p. 339
All energy-generating assets are subject to the legal and regulatory
framework adopted in the Russian Federation.
MM1
Additional ESG Data, p. 348
Environmental protection, р. 109, 118
MM2
Environmental protection, p. 122
MM3
Environmental protection, p. 117
Additional ESG Data, p. 348
SASB content index
Metals segment
Topic
Code
Accounting metric
Reference/response
Greenhouse Gas
Emissions
EM-MM-
110a.1
Gross global Scope 1 emissions,
percentage covered under emissions-
limiting regulations
EM-MM-
110a.2
Air Quality
EM-MM-
120a.1
Discussion of long-term and short-
term strategy or plan to manage
Scope 1 emissions, emissions
reduction targets, and an analysis of
performance against those targets
Air emissions of the following
pollutants: (1) CO, (2) NOx (excluding
N2O), (3) SOx, (4) particulate matter
(PM10), (5) mercury (Hg), (6) lead (Pb),
and (7) volatile organic compounds
(VOCs)
Energy
Management
EM-MM-
130a.1
(1) Total energy consumed, (2)
percentage grid electricity, (3)
percentage renewable
Water
Management
EM-MM-
140a.1
(1) Total fresh water withdrawn, (2)
total fresh water consumed,
percentage of each in regions with
High or Extremely High Baseline Water
Stress
Climate change, p.98-99
According to regulations, European assets of the
Company in Ireland and Sweden are subject to
European requirements.
Climate change, p.89, 98
Environmental protection, p. 113
Additional ESG Data, p. 344
The Company keeps records in accordance with
the requirements of the national legislation of the
regions where the Company operates and does not
collect data on lead and mercury emissions.
Besides, these substances are not specific to the
Company's main production units.
Energy management, p. 101-102
The share of renewable fuels is insignificant.
Additional ESG Data, p. 341
Environmental protection, p. 114-115
Additional ESG Data, p. 344-345
Waste &
Hazardous
Materials
Management
EM-MM-
140a.2
Number of incidents of non-
compliance associated with water
quality permits, standards, and
regulations
Environmental protection, p. 112
EM-MM-
150a.4
Total weight of non-mineral waste
generated
Environmental protection, p. 116
Additional ESG Data, p. 347
EM-MM-
150a.5
EM-MM-
150a.6
EM-MM-
150a.7
Total weight of tailings produced
Environmental protection, p. 116
Additional ESG Data, p. 347
Total weight of waste rock generated
Additional ESG Data, p. 347
Total weight of hazardous waste
generated
Environmental protection, p. 116-117
Additional ESG Data, p. 347
EM-MM-
150a.8
Total weight of hazardous waste
recycled
Environmental protection, p. 116
Additional ESG Data, p. 347
EM-MM-
150a.9
Number of significant incidents
associated with hazardous materials
and waste management
EM-MM-
150a.10
Description of waste and hazardous
materials management policies and
procedures for active and inactive
operations
Biodiversity
Impacts
EM-MM-
160a.1
EM-MM-
160a.2
Description of environmental
management policies and practices for
active sites
Percentage of mine sites where acid
rock drainage is: (1) predicted to occur,
(2) actively mitigated, and (3) under
treatment or remediation
There are no critical risks associated with waste
management and hazardous materials. In 2023,
neither of the Power and Metals segments
recorded any significant incidents.
Environmental protection, p. 108
Environmental protection, p. 108
Environmental protection, p. 120
Environmental protection, p. 109
Production facilities of both Metals and Power
segments do not have any acid effluents. Acidic
waters are not typical for nepheline and bauxite
fields, since these fields do not contain sulphide-
containing rocks.
EM-MM-
Percentage of (1) proved and (2)
probable reserves in or near sites with
In its biodiversity activities, the Metals and Power
segments are governed by the requirements of the
368
367
368
369
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Topic
Code
160a.3
Accounting metric
protected conservation status or
endangered species habitat
Security, Human
Rights & Rights
of Indigenous
Peoples
EM-MM-
210a.1
Percentage of (1) proved and (2)
probable reserves in or near areas of
conflict
EM-MM-
210a.2
EM-MM-
210a.3
Community
Relations
EM-MM-
210b.1
Percentage of (1) proved and (2)
probable reserves in or near
indigenous land
Discussion of engagement processes
and due diligence practices with
respect to human rights, indigenous
rights, and operation in areas of
conflict
Discussion of process to manage risks
and opportunities associated with
community rights and interests
EM-MM-
210b.2
Number and duration of non-technical
delays
Labour Relations EM-MM-
310a.1
Percentage of active workforce
covered under collective bargaining
agreements, broken down by U.S. and
foreign employees
EM-MM-
310a.2
Number and duration of strikes and
lockouts
Reference/response
legislation of the countries of the Company’s
presence, the provisions of the Company’s
Environmental Policy, the Regulations on the initial
assessment of risks and materiality of impacts on
biodiversity for existing enterprises and other
regulations and documents.
The Metals and Power segments implement a
comprehensive approach based on an assessment
of the risks of potential impacts on biodiversity in
the Company’s regions of presence, which makes it
possible to identify focus areas, minimize and
mitigate such impacts as a result of own
production activity, and manage biodiversity
conservation issues in a rational manner.
Additional information: there are no restrictions
related to SPNAs and habitat zones of endangered
species (not established) for the mineral deposits
being developed by the Company’s enterprises.
To help our clients meet the Dodd-Frank Act
obligations, we affirm that, in accordance with the
Declaration of DRC Conflict Minerals Free
manufacturer, none of the Conflict Minerals from
the Democratic Republic of the Congo or
neighbouring countries (Angola, Republic of
Congo, Burundi, Central African Republic, Rwanda,
South Sudan, Tanzania, Uganda or Zambia) are
used in the production and products of En+. Also,
En+ does not in any way contribute to armed
conflicts or violations of human rights in the
Conflict Areas and in the High-Risk Areas.
The Company does not operate in areas located on
or near indigenous lands.
Contribution to local communities, p.153
No human rights violations, including violations of
the rights of indigenous peoples and minorities,
were recorded in the reporting year.
The environmental conditions affected by the work
of enterprises and the regional economic situation
are of huge concern to local communities. The
Company pays considerable attention to such
issues as the amount of tax payments to budgets,
the availability of jobs and decent salaries, social
guarantees, opportunities for children to receive a
decent education and the prospects for their
employment in the future. The Company strives to
create favourable living conditions for local
communities, to ensure a good social climate and
increase the Company’s trust and loyalty to the
population.
No non-technical delays were recorded in respect
of the Metals and Power segments in the reporting
year.
Employees, p. 142
Additional ESG Data, p. 356
Workforce
Health & Safety
EM-MM-
320a.1
Business Ethics
& Transparency
EM-MM-
510a.1
Tailings Storage
Facilities
Management
EM-MM-
540a.1
(1) MSHA all-incidence rate, disclosed
in accordance with national law (2)
fatality rate, (3) near miss frequency
rate (NMFR) and (4) average hours of
health, safety, and emergency
response training for (a) full-time
employees and (b) contract employees
Description of the management
system for prevention of corruption
and bribery throughout the value chain
Tailings storage facility inventory table:
(1) facility name, (2) location, (3)
ownership status, (4) operational
status, (5) construction method, (6)
maximum permitted storage capacity,
(7) current amount of tailings stored,
(8) consequence classification, (9) date
of most recent independent technical
review, (10) material findings, (11)
mitigation measures, (12) site-specific
EPRP
EM-MM-
540a.2
Summary of tailings management
systems and governance structure
used to monitor and maintain the
stability of tailings storage facilities
Additional ESG Data, p. 350-352
Data is disclosed under the requirements of the
legislation of the Russian Federation.
Corporate ethics and compliance, p. 210
Environmental protection, p. 108
Tailings waste is not generated in the production
processes of the Metals segment enterprises,
therefore, the Metals segment has no tailings
storage facilities.
As for the Power segment, this information cannot
be disclosed in the current reporting period due to
the peculiarities of data collection.
Tailings waste is not generated in the production
processes of the Metals segment enterprises,
therefore, the Metals segment has no tailings
storage facilities.
As for the Power segment, a tailings management
system has been developed to monitor and
maintain the condition of tailings storage facilities.
This includes internal production and
environmental control and control by state
supervisory bodies and independent organisations.
The Company has a multi-level structure that
ensures transparency in all tailings management
processes and maintains a high level of control
over them. Tailings storage facilities are managed
as part of the environmental management system.
EM-MM-
540a.3
Approach to development of
Emergency Preparedness and
Response Plans (EPRPs) for tailings
storage facilities
Tailings waste is not generated in the production
processes of the Metals segment enterprises,
therefore, the Metals segment has no tailings
storage facilities.
As for the Power segment, Emergency
Preparedness and Response Plans have been
developed for all tailings storage facilities. EPRPs,
in particular, provide for measures to eliminate
accidents, operational actions of personnel in case
of preemergency and emergency situations, and a
list of persons responsible for the implementation
of such measures. The plans also include probable
scenarios of emergencies at tailings storage
facilities.
Activity Metrics
EM-MM-
000.A
Production of (1) metal ores and (2)
finished metal products
Business review, p. 370
EM-MM-
000.B
Total number of employees,
percentage of contractors
Employees, p. 150
The Company collects data only on the number of
full-time employees and the share of permanent
contracts.
The disclosure includes data on all employees.
Power segment
In the reporting year, no risks of violations of
employees' rights to freedom of association or
collective bargaining were identified in respect of
the Metals and Power segments' production
facilities and suppliers. There were also no strikes
or mass layoffs.
Topic
Code
Accounting metric
Reference
Greenhouse
Gas Emissions
& Energy
Resource
Planning
370
IF-EU-
110a.1
1) Gross global Scope 1 emissions,
percentage covered under (2)
emissions-limiting regulations and (3)
emission inventory standards
Climate change, p.98-99
Decree of the President of the Russian Federation
No. 666 of 04.11.2020 “On Reducing GHG
Emissions” establishes the national contribution
of the Russian Federation as part of the
implementation of the Paris Agreement.
370
369
371
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Topic
Code
Accounting metric
Reference
IF-EU-
110a.2
IF-EU-
110a.3
IF-EU-
110a.4
IF-EU-
120a.1
Air Quality
Water
Management
IF-EU-
140a.1
IF-EU-
140a.2
IF-EU-
140a.3
IF-EU-
150a.1
IF-EU-
150a.2
Coal
combustion
residuals
disposal
Energy
affordability
IF-EU-
240a.1
Greenhouse gas (GHG) emissions
associated with power deliveries
Discussion of long-term and short-
term strategy or plan to manage
Scope 1 emissions, emissions
reduction targets, and an analysis of
performance against those targets
(1) Number of customers served in
markets subject to renewable
portfolio standards (RPS) and (2)
percentage fulfilment of RPS target
by market
Air emissions of the following
pollutants: (1) NOx (excluding N2O),
(2) SOx, (3) particulate matter (PM10),
(4) lead (Pb), and (5) mercury (Hg);
percentage of each in or near areas of
dense population
(1) Total water withdrawn, (2) total
water consumed, percentage of each
in regions with High or Extremely High
Baseline Water Stress
Number of incidents of non-
compliance associated with water
quality permits, standards, and
regulations
Description of water management
risks and discussion of strategies and
practices to mitigate those risks
Climate change, p.98-99
Climate change, p. 89, 98
There are no requirements in Russia for the
minimal share of renewable energy in the portfolio
of generating companies.
Environmental protection, p. 113
Additional ESG Data, p. 344
This category includes all pollutants specified by
Russian legislation.
Environmental protection, p. 114-115
Additional ESG Data, p. 344-345
Environmental protection, p.112
Environmental protection, p.108
Amount of coal combustion residuals
(CCR) generated, percentage recycled
Environmental protection, p.117
Additional ESG Data, p. 347
Total number of coal combustion
residual (CCR) impoundments, broken
down by hazard potential
classification and structural integrity
assessment
Average retail electric rate for (1)
residential, (2) commercial, and (3)
industrial customers
IF-EU-
240a.2
Typical monthly electric bill for
residential customers (breakdown by
users of differentiated tariffs)
IF-EU-
240a.3
Number of residential customer
electric disconnections for
nonpayment, percentage
reconnected within 30 days
Additional ESG Data, p. 347
Additional ESG Data, p. 341
The maximum electric rate for the residential
customers is set in accordance with the directive
of the Federal Antimonopoly Service of Russia.
Additional ESG Data, p. 341
The maximum electric rate for the residential
customers is set in accordance with the directive
of the Federal Antimonopoly Service of Russia.
Additional ESG Data, p. 341
The regulatory framework for disconnecting
electricity is provided by Russian Federation
Government Resolutions No. 354 and No. 442,
which state that the contractor (organisation
providing housing and utilities services), if there
are legal grounds, terminates or suspends the
provision of unpaid services.
End-Use
Efficiency &
Demand
IF-EU-
420a.1
IF-EU-
420a.2
IF-EU-
420a.3
IF-EU-
540a.1
IF-EU-
540a.2
Emergency
Preparedness
and Response
in the Field of
Nuclear Safety
Stability of
Power Grids
IF-EU-
550a.1
Activity Metrics
IF-EU-
550a.2
IF-EU-
000.A
IF-EU-
000.B
IF-EU-
000.C
IF-EU-
000.D
IF-EU-
000.E
Percentage of electric utility revenues
from rate structures that (1) are
decoupled and (2) contain a lost
revenue adjustment mechanism
(LRAM)
Percentage of electric load served by
smart grid technology
Customer electricity savings from
efficiency measures
Not applicable
Additional ESG Data, p. 341
The Company does not implement efficiency
measures for electricity savings on the customer’s
side.
Total number of nuclear power units
Not applicable
Description of efforts to manage
nuclear safety and emergency
preparedness
Number of incidents of
noncompliance with physical and/or
cybersecurity standards or
regulations
(1) System Average Interruption
Duration Index (SAIDI), (2) System
Average Interruption Frequency Index
(SAIFI), and (3) Customer Average
Interruption Duration Index (CAIDI)
Number of: (1) residential, (2)
commercial, and (3) industrial
customers served
Total electricity delivered to: (1)
residential, (2) commercial, (3)
industrial, (4) all other retail
customers, and (5) wholesale
customers
Length of transmission and
distribution lines
Total electricity generated,
percentage by major energy source,
percentage in regulated markets
Not applicable
Responsible business practices, p.236
Additional ESG Data, p. 341
According to the legislation of the Russian
Federation, utilities must provide electricity
without interruption. The Company has
redundancy infrastructure and backup plans to
ensure 24/7/365 availability.
The regulatory framework for disconnecting
electricity is provided by Russian Federation
Government Resolutions No. 354 and No. 442.
Commercially sensitive information that may not
be disclosed.
Commercially sensitive information that may not
be disclosed.
Business model, p.22
Business model, p.22
Total wholesale electricity purchased
Additional ESG Data, p. 340
IF-EU-
240a.4
IF-EU-
320a.1
Discussion of impact of external
factors on affordability of electricity
for customers, including the economic
conditions of the service territory
Energy affordability is mainly determined by
regional factors and maximum federal rates
stipulated and controlled by the Federal
Antimonopoly Service of Russia.
1) Total recordable incident rate
(TRIR), (2) fatality rate, and (3) near
miss frequency rate (NMFR)
Additional ESG Data, p. 350-351
Workforce
Health and
Safety
372
371
372
373
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Compliance of En+ results with the required thresholds under the EU taxonomy
Disclosure of the SECR requirements in the Report
As part of the Green Deal programme setting energy and climate targets, the European Commission has
developed the EU Taxonomy, a classification system establishing a list of sustainable economic activities. The
EU Taxonomy provides stakeholders with science-based evidence on the sustainability of economic sectors,
which makes it possible to improve interaction, redirecting resources and investments towards climate change
mitigation to make societies more resilient to environmental challenges. The EU Taxonomy is based on the
Taxonomy pack for feedback published in August 2021.
The UK government’s Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1 April
2019, when the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report)
Regulations 2018 came into force. SECR extends the reporting requirements for quoted companies and
mandates new annual disclosures for large partnerships and limited liability partnerships (LLPs) whose shares
are not quoted on the market.
Topic
Requirement
Reference/response
Currently, the average value of all En+ smelters by a margin meets the updated criteria for checking technical
parameters.
GHG emissions
Name
Specific GHG emissions from electrolysis
(Scope 1+2), t CO2eq/t Al
En+ Metals segment, average
EU Taxonomy mitigation benchmark 46
EU Taxonomy adaptation benchmark 47
<3
<3
6
Topic
Aluminium
production 48
Production of
electricity
from
hydropower
Metric and Required threshold
Reference/response
Direct GHG emissions per tonne in electrolysis
operations are 1,99 t CO2e/t Al. The calculation
was performed in accordance with an internally
approved methodology of determination of direct
GHGs from primary aluminium production.
Average electricity consumption at aluminium
smelters of En+ Group is 14.71.
Average indicator for KUBAL (Sweden), Alscon
(Nigeria), Boguchansky Aluminium Smelter, Bratsk
Aluminium Smelter, Volgograd Aluminium
Smelter, Irkutsk Aluminium Smelter, Kandalaksha
Aluminium Smelter, Novokuznetsk Aluminium
Smelter, Sayanogorsk Aluminium Smelter,
Nadvoitsy Aluminium Smelter, Krasnoyarsk
Aluminium Smelter.
The Company does not conduct evaluation of GHG
emissions for electricity produced from
hydropower
in accordance with the standards referenced in
the EU Taxonomy. The Company performed
calculations based on actual measurements and
calculations carried out in accordance with the IHA
(International Hydropower Association)
methodologies.
Criterion 1. Direct emissions for primary aluminium production is at
or below the value of the related EU-ETS benchmark of 1.514
tCO2e/t.
Criterion 2. Electricity consumption for electrolysis is at or below
15.29 MWh/t (European average emission factor according to
International Aluminium Institute, 2017).
The activity complies with all of the following criteria:
Emissions of pollutants contributing to acidification are lower than
0.05/0.15/0.10 kg SO2 aeq per 1 MWh of electricity output to the
power grid or to directly connected customers.
The life-cycle emissions of pollutants contributing to the
photochemical ozone creation potential are lower than 0.05 kg
C2H2 aeq per 1 MWh of electricity output to the power grid or to
directly connected customers.
The life-cycle emissions of pollutants contributing to the
photochemical ozone creation are lower than 0.05 kg PO43 aeq per
1 MWh of electricity output to the power grid or to directly
connected customers.
The life-cycle emissions of PM10 are lower than 0.05 kg/per 1 MWh
of electricity output to the power grid
or to directly connected customers.
The life-cycle emissions of PM10 are lower than 0.02 kg/per 1 MWh
of electricity output to the power grid or to directly connected
customers.
Annual global GHG emissions (global
Scope 1 and 2 GHG emissions in
tonnes of carbon dioxide equivalent
including all seven gases included
under the Kyoto Protocol) from
activities for which the Company is
responsible, including combustion of
fuel and operation of any facility, and
the annual emissions from the
purchase of electricity, heat, steam or
cooling by the Company for its own
use
Energy use and GHG emissions figures
for the previous year (not included in
the 1st year)
The greenhouse gases included in the
calculations are listed in the Climate
leadership section of the Report.
Climate leadership, p. 99
Energy management, p. 102
Intensity measurement
At least one emissions intensity ratio
Climate leadership, p. 99
Energy use
Underlying global energy use
Energy management, p. 102
Measures taken to improve energy
efficiency
Narrative on energy efficiency
measures
Quantification and reporting
methodology
Details of the methodology used
Climate leadership, p. 102-103
The indicators on GHG emissions are
evaluated in accordance with 2006 IPCC
Guidelines and Methodological Guidance
on the Quantification of Greenhouse Gas
Emissions by Entities Engaging in
Business and Other Activities in the
Russian Federation (approved by Order
No. 300 of the Ministry of Natural
Resources and the Environment of Russia
dated 30 June 2015).
46 Scope 1 (1.5 t CO2e/tAl) + Scope 2 (15.5 MWh/t Al * 0.1 t CO2e/MWh) = 3.05 tCO2e/t Al = ~ 3 tCO2e/tAl.
47 Scope 1 (1.5 t CO2e/tAl) + Scope 2 (15.5 MWh/t Al * 0.27 tCO2e/MWh) = 5.68 tCO2e/tAl = ~ 6 tCO2e/tAl.
48 The topic is disclosed in accordance with the requirements of the Taxonomy Technical Report published in June 2019.
374
373
374
375
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Contents by Sustainability Indexes
No.
Indicator
Responsibility and Transparency Index
Economic, social and environmental indicators
Labour productivity
CAPEX/investments
Taxes paid
Reference/response
Additional ESG data, p.330
Financial review, p.57
Additional ESG data, p. 330
Additional ESG data, p.330
High quality of products and services
Responsible business practices, p. 226
Share of purchases from local suppliers
Stakeholder engagement, p.224
Innovation management
Headcount
Personnel characteristics
The main areas of the Company’s innovation activity
are described, R&D costs are given, as well as
information on some R&D projects
Responsible business practices, p. 237-239
Additional ESG data, p. 360
Employees, p.150
Additional ESG data, p. 353
Employees, p.150
Additional ESG data, p. 353
Occupational health and safety (performance)
Occupational health and safety, p.126
OHS costs
Additional ESG data, p. 350-352
Additional ESG data, p. 351-352
Occupational health and safety management systems
Occupational health and safety, p. 126
Payroll
Employees, p.151
Additional ESG data, p. 356
Expenses on social programmes for personnel
Additional ESG data, p. 358
Number of beneficiaries of social programmes for personnel Employees, p.143
Remuneration of management
Corporate governance, p. 195
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Employee turnover
17
Employee training
18
19
20
21
Employee training costs
Labour relations
Respect for human rights
Air emissions
22
GHG emissions
Employees, p.150
Additional ESG data, p. 355
Employees, p.144
Additional ESG data, p.357
Additional ESG data, p.357
Employees, p.138
Employees, p.143
Environmental protection, p. 113
Additional ESG data, p. 343
Climate change, p.99
Additional ESG data, p.336
23
Energy consumption and energy efficiency
Energy management, p.102
Additional ESG data, p. 339-341
24
25
Water consumption (the indicator is irrelevant for entities
operating in financial markets)
Environmental protection, p. 115
Additional ESG data, p.345
Discharges into water bodies (the indicator is irrelevant for
entities operating in financial markets)
Environmental protection, p.115
Additional ESG data, p.345
26
Waste management
27
Environmental costs
Environmental protection, p.117
Additional ESG data, p.346
Environmental protection, p.112
Additional ESG data, p.342
28
29
Environmental management systems
Environmental protection, p.105-107
Recording and assessment of environmental risks of funded
projects (the indicator is relevant for entities operating in
financial markets. It is factored in instead of indicator No. 24,
which is irrelevant for such entities. It is factored out for
entities operating in other industries)
Not applicable
No.
30
Indicator
Reference/response
Financing environmental projects and programmes (the
indicator is relevant for entities operating in financial
markets. It is factored in instead of indicator No. 25, which is
irrelevant for such entities. It is factored out for entities
operating in other industries)
Not applicable
31
Social investments
Employees management and engagement
Contribution to local communities, p.167
Additional ESG data, p.358
32
33
34
Details of the Board of Directors: structure, independence,
areas of activity, performance review
Corporate governance, p. 171-182
Involvement of senior management in administering CSR
and sustainability issues
Sustainability management, p.76
Corporate governance, p. 179
Incorporation of sustainability risks into the key risk
management system and events to mitigate sustainability
risks
Internal control and risk management, p.204
35
New opportunities in the area of sustainable development
Automation and digitalisation, p.230-233
36
37
38
39
40
41
42
43
Availability of the code of ethics, its fundamental principles
and incorporation mechanisms
Cybersecurity, p.234-236
Corporate ethics and compliance, p. 208
Anti-corruption: policy, mechanisms, activities, outcomes
Corporate ethics and compliance, p. 210
Availability of the corporate sustainability (CSR) policy:
contents, reference to the document
Policies for each ESG aspect
Sustainability management, p.76
Refinement of sustainability (CSR) approaches in corporate
policies
•
in the area of environmental protection: contents,
reference to the document
•
•
•
in the area of staff relations / HR policy (strategy):
contents, reference to the document
in the area of occupational health and industrial safety:
contents, reference to the document
in the area of community support (regional policy,
external social policy): contents, reference to the
document
CSR/sustainability management across the supply chain:
policies, mechanisms, metrics
Sustainability management, p.76
Occupational health and safety, p.176
Fundamental document:
Health, Occupational, Industrial and Fire Safety Policy
Health, Occupational, Industrial and Fire Safety Policy
Environmental protection, р.104
Stakeholder engagement, p. 222-223
Incorporation of CSR and sustainability KPIs in into the
company’s strategic KPI system
Corporate governance, p. 193
Sustainability management, p.76
Structure of managing CSR and sustainability activity
Sustainability management, p.76
Areas and formats of government relations, key
programmes/projects
Contribution to local communities, p.153
44
Areas and formats of community engagement, key projects
Contribution to local communities, p.153
Indicators of the Sustainability Vector Index
Workforce productivity rate
Additional ESG data, p.330
Occupational health, industrial safety
Occupational health and safety, p.126
Remuneration and expenses on social programmes for
personnel
Employee training
Employee turnover rate
Air emissions
GHG emissions
Water consumption and discharges into water bodies
(irrelevant for the financial sector)
Responsible financing
Employees, p. 140
Occupational health and safety, p.126
Additional ESG data, p. 359
Employees, p. 144
Additional ESG data, p. 357-358
Employees, p.150
Additional ESG data, p. 355
Environmental protection, p. 113
Additional ESG data, p. 343-344
Environmental protection, p. 113
Additional ESG data, p. 336
Environmental protection, p. 114
Additional ESG data, p. 344
1
2
3
4
5
6
7
8
376
376
375
377
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
9
Energy consumption and energy efficiency
10
Waste management
Energy management, p. 100-103
Additional ESG data, p. 339-341
Environmental protection, p. 116-117
Additional ESG data, p.346
11
12
13
14
Social investments
Contribution to local communities, p. 167
Governance (involvement of senior management in
sustainability control)
Sustainability management, p.78
Corporate governance, р.179, 194
Risks and opportunities management
Internal control and risk management, p. 200-208
Focus of sustainability/CSR activity
Sustainability management, p.76
List of the key (basic) indicators of sustainability reporting in line with the
recommendations of the Russian Ministry of Economic Development
No.
Indicator
Reference/response
1
2
3
4
5
6
7
8
9
10
11
12
Revenue (its equivalent)
Value added
Net value added
General R&D expenses
Labour productivity
Statutory payments accrued (excluding fines and
penalties), total, including:
•
•
•
insurance contributions; and
other statutory payments.
taxes and levies;
Statutory payments effected (excluding fines and
penalties), total, including:
•
•
•
insurance contributions; and
other statutory payments.
taxes and levies;
Additional ESG data, p.330
Additional ESG data, p.330
Additional ESG data, p.330
Responsible business practices, p. 226
Additional ESG data, p.361
Additional ESG data, p.330
Additional ESG data, p.330
Additional ESG data, p.330
Share of purchases of Russian goods, works and services
in total purchases of goods, works and services
Not disclosed.
Share of purchases of goods, works and services from
SMEs in total purchases from Russian entities
Partially disclosed (the share of purchases from
SMEs in the total volume is disclosed).
Additional ESG data, p. 361
Sustainable, including green, investments
Additional ESG data, p.330
Investments in projects related to achieving
technological sovereignty and structural adaptation of
Russia’s economy
Additional ESG data, p. 330
Indicator of economic vulnerability of business and other
activity to climate risks
Additional ESG data, p. 336
13
Amount of water used from all water supply sources
Environmental protection, p. 114
Additional ESG Data, p. 345
14
Amount of recycled and reused water supply
Environmental protection, p. 114
15
Amount of contaminated wastewater discharge, total,
including untreated wastewater
Additional ESG Data, p. 345
Additional ESG Data, p. 345
16
Water use efficiency (specific water consumption)
Environmental protection, p. 114, 115
No.
Indicator
category:
• waste disposed of;
• waste neutralised;
• waste buried;
• waste reused;
• waste recycled; and
• waste generation reduced.
Reference/response
Additional ESG Data, p. 346-347
19
Air pollutant emissions from stationary sources
Information from all sources has been disclosed.
Environmental protection, p. 113
Additional ESG Data, p. 343
Climate change, p. 99
Additional ESG Data, p. 336
Environmental protection, p.112
Additional ESG data, p.342
20
GHG emissions
21
Expenses on implementing environmental protection
measures, total, including:
•
atmospheric air protection and climate change
prevention;
• wastewater collection and treatment;
• waste management; and
•
conservation of biodiversity and protection of
natural areas.
22
Renewable and low-carbon energy consumption
Energy management, p. 102
Additional ESG Data, p.341.
23
24
25
26
27
28
29
30
31
32
Energy efficiency: energy consumption per unit of net
value added
Additional ESG data, p.340
Payroll expenses, total
Average headcount, total, including the number of
disabled persons
Additional ESG data, p.330
Employees, p.150
Additional ESG data, p.354
by occupation groups;
Average salary, total, including:
•
•
•
by gender; and
by age groups.
When calculating the indicator, a methodology
different from that proposed by the Ministry of
Economic Development was used.
Partially disclosed (when calculating the indicator, a
methodology different from that proposed by the
Ministry of Economic Development was used).
Expenses on occupational health and safety events, total,
including on average per employee
Additional ESG data, p.351-352
Expenses on organising and holding social, fitness,
recreational and medical events for employees and their
family members
Number of occupational accident victims with disability
for one or more working days and with fatal outcome,
including fatalities
Expenses on employees training, total, including on
average per employee
Average hours of training per year per employee by
occupation groups
Additional ESG data, p. 358
Occupational health and safety, p.136
Additional ESG data, p. 350
Additional ESG data, p.358
Additional ESG data, p.358
Percentage of employees covered by collective
bargaining agreements in the average headcount
Employees, p.142
Additional ESG data, p.356
When calculating the indicator, a methodology
different from that proposed by the Ministry of
Economic Development was used
Employees, p.150
Additional ESG data, p.355
When calculating the indicator, a methodology
different from that proposed by the Ministry of
Economic Development was used.
17
class I;
class II;
Waste of hazard classes I–V generated, total, including:
•
•
•
•
•
class IV; and
class III;
class V.
Additional ESG Data, p. 345
Partially disclosed (the breakdown of waste by
hazard class of the Energy segment is disclosed).
Environmental protection, p. 116-117
Additional ESG Data, p. 346
33
Staff turnover rate
18
Waste of hazard classes I–V managed, total, including by
Environmental protection, p. 116-117
378
377
378
379
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
34
35
36
37
38
39
40
41
42
43
44
Expenses on contributing to support for social
programmes not aimed at employees and their family
members, total, including:
•
•
•
•
in support for citizens in need of social assistance.
charitable housing programmes;
in education; and
in healthcare;
Contribution to local communities, p.167
Additional ESG data, p.359
When calculating the indicator, a methodology
different from that proposed by the Ministry of
Economic Development was used.
Availability of the sustainability policy and/or other
related strategic documents
Policies for each ESG aspect
Number of Board meetings and attendance rate
Corporate governance, p.180
Number of Board members, total, including by age
groups
Number of the Audit Committee meetings and
attendance rate
Participation in ESG indices and ratings
Number of recorded cases of infringing the rights of
indigenous minorities of the Russian Federation
Corporate governance, p.179
Corporate governance, p.188
Key figures, p. 12-13
Employees, p. 142
Percentage of employees holding positions exposed to
high corruption risk
Not disclosed
Average hours of anti-corruption training per employee
Not disclosed
Cases of bringing the organisation, its subsidiaries and
associates to administrative liability for corrupt practices
In 2023, the Company recorded three cases of
corruption and fraud.
Share of female managers in the total number of
managers, total, including on the Board of Directors
(Supervisory Board)
Additional ESG data, p. 353
List of ESG indicators to be disclosed by entities engaged in the generation of
electric (heat) power in line with the recommendations of the NP Market Council
Association
No.
1.1
1.2
1.3
Indicator
Reference/response
Environmental management system
Environmental protection, p.106
Environmental violations, accidents or emergencies
Additional ESG data, p.343
Share of funds used to implement climate projects
Not disclosed
For more details on En+ Group’s climate projects
and the Company’s investments in their
implementation, see the SDG Report for 2023
1.4
Share of funds used to implement environmental projects
Additional ESG data, p.343
1.5 Monitoring of the state and pollution of the environment
during the implementation of climate projects
For more details on En+ Group’s climate projects
and the Company’s investments in their
implementation, see the
1.6
1.7
1.8
Implementation of BAT
Energy intensity
Reduced energy consumption (dynamics of the indicator by
year)
SDG Report for 2023
Environmental protection, p.105
Energy management, p. 102
Energy management, p. 102
Additional ESG data, p.340
1.9
Electricity generation efficiency
Additional ESG data, p. 339, 346
Specific fuel consumption for the generation of 1 MWh of
electricity;
Specific water consumption for the generation of 1 MWh of
electricity.
1.10 Share of renewable and low-carbon generating facilities in the
Additional ESG data, p.341
structure of installed capacity of generating facilities (dynamics
of the indicator by year)
1.11
Installed capacity utilisation rate of plants based on the use of
renewable and low-carbon energy sources (weighted average
value by plant) (dynamics of the indicator by year)
Additional ESG data, p.341
When calculating the indicator, a method different
from the proposed one was used.
No.
Indicator
Reference/response
1.12 Electricity generation using renewable and low-carbon energy
Additional ESG data, p.341
sources (dynamics of the indicator by year)
1.13 Volume of heat production in the combined generation mode
with renewable and low-carbon energy (dynamics of the
indicator by year)
Additional ESG data, p.341
1.14 GHG emissions per 1 MWh of electricity generated (weighted
average by plants) (dynamics of the indicator by year)
Additional ESG data, p.336
Climate change, р. 99
1.15 GHG emissions attributable to the production of 1 Gcal of heat
Not disclosed
energy (dynamics of the indicator by year)
1.16 Management of GHG emissions in the course of business
Climate change, p.90-93
When calculating the indicator, a methodology
different from that proposed by the Ministry of
Economic Development was used.
operations
adaptation of the general regulatory methodology for
quantifying direct and indirect GHG emissions to specific
business conditions and regular quantification of such
emissions;
implementation of a program on GHG emissions reduction
and/or increase in GHG removal
compliance with best business practices;
publication and verification of carbon reporting complying with
Russian and international standards and requirements.
1.17 Self-diagnostics/diagnostics according to ISO
Environmental protection, p.106
14001 and 14040
1.18 Cumulative impact
Additional ESG data, p.336
Cumulative impacts mean impacts that arise as a result of
additional impact on the area of activity or resources used in a
project or directly affected by the impact of a project, as a
result of other existing, planned or realistically established
circumstances during the process of identifying risks and
impacts.
1.19 Efficient use of auxiliary resources, wastewater discharge
Additional ESG data, p.345
1.20 Waste management
Share of recycled and neutralised waste in the total amount of
waste generated, %;
Waste of hazard classes I-IV generated, % of the total volume.
Environmental protection, p. 117
Additional ESG Data, p. 346-347
2.1
Compliance with the fundamental declarations, conventions
and recommendations of the International Labour
Organisation (ILO)
Employees, p.139
2.2
Regulation of labour relations and human rights
Employees, p.139, 142
2.3 Occupational health and safety policies and procedures
Occupational health and safety, p.126-127
2.4
Stakeholder engagement
Stakeholder engagement, p.214
Stakeholder engagement plan and policy;
Disclosure of relevant information;
Regular communication of information on ESG activities to the
public.
Self-diagnostics/diagnostics according to ISO 45001 (dynamics
of the indicator by year)
Occupational health and safety, p.127
Indicators for monitoring and reporting (dynamics of the
indicator by year):
Number and structure of employees participating in activities
related to a high risk of accidents or work-related ill health;
• Number of hours of environmental training (rational use of
resources)
• Number of work-related injuries (including fatalities), types of
injuries or work-related ill health;
• Average number of training hours per year per employee,
with a breakdown by gender (male and female).
• Average number of hours of anti-corruption training per year
per employee.
Additional ESG data, p. 350
2.5
2.6
380
380
379
381
CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
ADDITIONAL ESG DATA
No.
2.7
Indicator
Reference/response
Ratio of entry-level wages of employees of different genders to
the established minimum wage in the regions of presence of
the company (with an indication of the average wage by region)
(dynamics of the indicator by year)
Additional ESG data, p. 357
2.8
Investments in the social sphere of the company’s employees
(dynamics of the indicator by year)
Additional ESG data, p. 359
2.9 Occupational health and safety expenses (dynamics of the
Additional ESG data, p. 350
indicator by year)
2.10
Investments in socially important infrastructure, regional, social
and charitable programs in the regions of presence, including
through joint programs with regional authorities and
communities
Contribution to local communities, p.167
2.11 Annual expenses on employee training per employee
Employees, p.144
Additional ESG data, p.358
2.12 Benefits provided to full-time employees that are not provided
Employees, p.144
to temporary or part-time employees
2.13 Categories of employees
Share of employees under 35, %
Share of working pensioners, %
2.14 Employee turnover
Employees, p.150
Additional ESG data, p.353
Additional ESG data, p.355
2.15 Employee performance and career development
Employees, p.144
2.16 Causes of equipment failures and accidents
Occupational health and safety, p.132, 134
2.17
Industrial safety and reliability risks
Occupational health and safety, p.132, 134
3.1
3.2
Involvement and the level of competence of the
BoD/Management Board/executive bodies in the area of the
sustainability and ESG agenda
Sustainability management, p.78
Corporate governance, p.179
Total expenditures on research and development aimed at
improving energy efficiency, reducing greenhouse gas
emissions and other beneficial effects in the area of climate
and environment
Responsible business practices, p.237-238
Additional ESG data, p.360
3.4
Public non-financial reporting
About the Report, p.4
Preparation of an annual progress report on sustainable
development (including ESG) in accordance with national and
international standards and recommendations.
3.5 Affiliates
List of affiliated legal entities that may directly or indirectly
affect the company’s financial and non-financial performance.
3.6 Cases of corruption
3.7
Effectiveness of management measures
Assessment of the quality of work of the Board of Directors or
another collegial management body.
The list of affiliated persons is available on the
Company's website
(https://enplusgroup.com/en/investors/other-
regulatory-disclosures/list-of-affiliates/)
In 2023, the Company recorded three cases of
corruption and fraud.
Corporate governance, p. 182
3.8 GR work
3.9 Compliance risks
Contribution to local communities, p. 153
Corporate ethics and compliance, p. 210
Assessment of compliance with applicable laws, internal
standards and other mandatory documents.
3.10 Credit and ESG rating
3.11 Asset management system
3.12 Corporate governance system
3.13 Energy management system
3.14 Maintenance and repair management system
Key events and indicators, p. 13
The asset management system is implemented
partially.
Based on the results of asset management,
measures were developed to improve the
efficiency of asset management.
Corporate governance, p. 171
Energy management, p. 100-103
The maintenance and repair management system
is implemented partially.
Based on the results of energy management,
measures have been developed to improve the
effectiveness of maintenance and repair.
3.15 Environmental and social assessment of suppliers and
Responsible business practices, p. 223
contractors
382
381
383
CONSOLIDATED REPORT 2023APPENDICES
EXTERNAL ASSURANCE
GRI 2-5
382
384
383
385
CONSOLIDATED REPORT 2023APPENDICES
Glossary
Units of measurement
CO
CO
e
₂
Carbon dioxide
CO
equivalent
CO2e/tAl
₂
CO2 equivalent per tonne of aluminium
₂
ha
GJ
GJ/t
Hectare
Gigajoule
Gigajoules per tonne
GJ/MWh
Gigajoules per megawatt-hour
GW
GWh
Gcal
Gcal/h
USD
kA
kV
kWh
km
m3
mn
bn
mn t
Gigawatt (one million kilowatts)
Gigawatt-hour (one million kilowatt-hours)
Gigacalorie, a unit of measurement for heating energy
Gigacalorie per hour, a unit of measurement for heating power capacity
US dollar
Kiloampere
Kilovolt
Kilowatt-hour, a unit of energy produced
Kilometer
Cubic meter
Million
Billion
Million metric tonnes
mn t of CO2
Million metric tonnes of carbon dioxide in CO2e
MW
MWh
MJ
p.p.
RUB
Megawatt (one thousand kilowatt), a unit of measurement for electrical power capacity
Megawatt-hour (one thousand kilowatt-hours)
Megajoules
Percentage point
Russian rouble
t, tonne
One metric tonne (one thousand kilograms)
TWh
‘000
‘000 t
Terawatt-hour
thousand
Thousand metric tonnes
‘000 t/year
Thousand tonnes per year
‘000 t CO2
Thousand metric tonnes of carbon dioxide in CO2 equivalent
h
Hour
Terms and abbreviations
ALLOW
APQP
ASI
Aughinish
B20
ССUS
CEO
CDP
CPLC
384
386
RUSAL’s aluminium brand with an independently verified low carbon footprint. Carbon footprint is less
than 2.3 t of CO2e per tonne of aluminium (Scope 1 and 2)
Advanced Product Quality Planning
Aluminium Stewardship Initiative
Aughinish Alumina Refinery, Aughinish Alumina, or Aughinish Alumina Limited, a wholly owned subsidiary
of RUSAL incorporated in Ireland
Business 20
Carbon capture, use and storage technology
Chief Executive Officer
Carbon Disclosure Project
Carbon Pricing Leadership Coalition
CO
Cobad
CPLC
DTR
Carbon monoxide
Cobad S.A., a subsidiary of RUSAL incorporated in Guinea
Carbon Pricing Leadership Coalition
FCA Disclosure Guidance and Transparency Rules
EBITDA
Earnings before interest, tax, depreciation and amortisation
EPC contracts
Engineering, procurement, and construction contracts
ESG
FCA
FCPA
FFI
GHG
GRI
G20
HR
IAI
Environmental, social and governance
The UK’s Financial Conduct Authority
US Foreign Corrupt Practices Law
Fauna & Flora International
Greenhouse gases
Global Reporting Initiative
Group of Twenty
Human Resources Department
International Aluminium Institute
IATF 16949
IATF 16949 — a quality management system for organisations in the automotive industry, using the
Advanced Product Quality Planning (Production Part Approval Process) approach
ICC
IHA
IPCC
IPO
ISO 9001
ISO 14001
ISO 45001
KUBAL
LTIFR
-
OFAC
PEFA
SASB
SECR
SSP
TCFD
International Chamber of Commerce Russia
International Hydropower Association
Intergovernmental Panel on Climate Change
Initial public offering
ISO 9001:2015 — international standard “Quality management systems — Requirements”, which has
been developed by the International Organisation for Standardisation to set criteria for quality
management systems and which is the only standard for certification in quality management
ISO 14001:2015 — international standard “Environmental management systems — Requirements with
guidance for use”, which has been developed by the International Organisation for Standardisation to
set criteria for environmental management systems and which is the basis for certification
ISO 45001:2018 international standard “Occupational health and safety management systems –
Requirements with guidance for use”, which has been developed by the International Organisation for
Standardisation to set criteria for OHS management systems and which is the basis for certification
Kubikenborg Aluminium AB, a wholly owned subsidiary of RUSAL incorporated in Sweden
The Lost Time Injury Frequency Rate calculated by the Group as the sum of fatalities and lost time
injuries per 200,000 man-hours
Not applicable
The Office of Foreign Assets Control of the US Treasury
Primary Equivalent Foundry Alloys
Sustainability Accounting Standards Board
Streamlined Energy and Carbon Reporting
Shared Socioeconomic Pathways
Task Force on Climate-Related Financial Disclosures
UN Energy
The United Nations inter-agency mechanism on energy issues. Its goal is to form a coherent approach to
sustainable energy
UNFCCC
The United Nations Framework Convention on Climate Change
JSC
BAZ
BoAZ
BrAZ
Joint-stock company
Bogoslovsky Aluminium Smelter
Boguchany Aluminium Smelter (BoAZ) project involves the construction of a 600,000 tpa greenfield
aluminium smelter on a 230 hectare site, located approximately 8 km to the south-east of the
settlement of Tayozhny in the Krasnoyarsk Region and approximately 160 km (212 km by road) from the
Boguchany HPP
Bratsk Aluminium Smelter or PJSC RUSAL Bratsk, a wholly owned subsidiary of RUSAL incorporated
under the laws of the Russian Federation
BRICS
Brazil, Russia, India, China and South Africa
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CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
RES
Renewable energy sources
GHG
emissions
(Scope 1)
GHG
emissions
(Scope 2)
GHG
emissions
(Scope 3)
UN Global
Compact
Direct greenhouse gas emissions from sources owned or controlled by the Company, e.g., emissions from
combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production
in owned or controlled process equipment. Direct CO
not
included in Scope 1, as they are reported separately
emissions from the combustion of biomass are
₂
Indirect energy greenhouse gas emissions. Scope 2 accounts for GHG emissions resulting from the
generation of heat and electricity purchased for the Company’s own needs. Purchased heat and
electricity is defined as electricity that is purchased or otherwise brought into the organisational
boundary of the Company. Scope 2 emissions physically occur at the facility where heat and electricity
are generated
Greenhouse gas emissions from activities of assets not owned or controlled by the Company, but on
which
it indirectly impacts in its value chain. The emissions include all sources outside the boundaries of Scope 1
and 2, including those associated with the extraction and production of purchased materials, fuels and
services, transportation, outsourced activities, waste disposal, etc.
United Nations Global Compact
GDR
Global Depositary Receipt
Hybrid
perovskite
Class of semiconductors that combines the advantages of organic and inorganic semiconductors, which
is a more competitive material for solar cells than silicon
HPP
Hydropower plant
Directorate for
Control
Directorate for Control and Internal Audit
EuroSibEnergo
JSC EuroSibEnergo is a 100% subsidiary of En+ Group, managing its power assets
EU
European Union
Ore Reserves
The economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting
materials and allowances for losses, which may occur when the material is mined. Relevant assessments
and studies were carried out taking into account the impact of realistically assumed factors related to
mining and metallurgical activity, as well as economic, marketing, social and government factors and the
changes caused by them. These assessments demonstrate that extraction could reasonably be justified
at the time of reporting. Ore Reserves are sub-divided in order of increasing confidence into Probable
Ore Reserves and Proved Ore Reserves.
PROBABLE ORE RESERVE
The economically mineable part of an Indicated, and in some circumstances, a Measured Mineral
Resource. It includes diluting materials and allowances for losses which may occur when the material is
mined. Relevant assessments and studies were carried out taking into account the impact of realistically
assumed factors related to mining and metallurgical activity, as well as economic, marketing, social and
government factors and the changes caused by them. At the time of reporting, these assessments
demonstrate that extraction could reasonably be justified.
PROVED ORE RESERVE
The economically mineable part of a Measured Mineral Resource. It includes diluting materials and
allowances for losses which may occur when the material is mined. Relevant assessments and studies
were carried out taking into account the impact of realistically assumed factors related to mining and
metallurgical activity, as well as economic, marketing, social and government factors and the changes
caused by them. At the time of reporting, these assessments demonstrate that extraction could
reasonably be justified.
ILM&T
IrkAZ
Institute of Light Materials and Technologies
Irkutsk Aluminium Smelter, a branch of RUSAL Bratsk in Shelekhov (Russia)
Irkutskenergo
Irkutsk Public Joint Stock Company of Energetics and Electrification, a power generating company
controlled by En+ by more than 30% of Irkutskenergo’s issued share capital
INRTU
Irkutsk National Research Technical University
ETC (RUSAL)
Engineering and Technology Centre
JSC Irkutsk Electric Grid Company
An approach that promotes continuous process improvement. It is based on creating a corporate culture
based on communication and cooperation between employees for incremental process improvements
Kandalaksha Aluminium Smelter, a branch of JSC RUSAL Ural
Competitive capacity auction
Compliance Committee of the Company’s Board of Directors
IESK
Kaizen
KAZ
CCA
Compliance
Committee
386
388
Corporate
Governance
Committee
Nominations
Committee
Remuneration
Committee
HSE
Committee
KPI
KrAZ
TL
MSU
IPCC
Management
Team
Corporate Governance Committee of the Company’s Board of Directors
Nominations Committee of the Company’s Board of Directors
Remuneration Committee of the Company’s Board of Directors
Health, Safety and Environment Committee
Key performance indicator
Krasnoyarsk Aluminium Smelter or JSC RUSAL Krasnoyarsk, a wholly owned subsidiary of RUSAL
incorporated under the laws of the Russian Federation
Transmission line
Lomonosov Moscow State University
Intergovernmental Panel on Climate Change
Executive Directors and Officers of the Company
Metals
segment
The Metals segment is represented by UC RUSAL (56.88% owned by En+ Group). The power assets of
UC RUSAL are also included into the Metals segment
Six Sigma
Methodology
A set of quality control tools based on the analysis of limits of errors or defects. The purpose of the
process is to improve the cycle time while reducing production defects
Mineral
Resources
The economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting
materials and allowances for losses, which may occur when the material is mined. Relevant assessments
and studies were carried out taking into account the impact of realistically assumed factors related to
mining and metallurgical activity, as well as economic, marketing, social and government factors and the
changes caused by them. At the time of reporting, these assessments demonstrate that extraction could
reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore
Reserves and Proved Ore Reserves.
PROBABLE ORE RESERVE
The economically mineable part of an Indicated, and in some circumstances, a Measured Mineral
Resource. It includes diluting materials and allowances for losses which may occur when the material is
mined. Relevant assessments and studies were carried out taking into account the impact of realistically
assumed factors related to mining and metallurgical activity, as well as economic, marketing, social and
government factors and the changes caused by them. At the time of reporting, these assessments
demonstrate that extraction could reasonably be justified.
PROVED ORE RESERVE
The economically mineable part of a Measured Mineral Resource. It includes diluting materials and
allowances for losses which may occur when the material is mined. Relevant assessments and studies
were carried out taking into account the impact of realistically assumed factors related to mining and
metallurgical activity, as well as economic, marketing, social and government factors and the changes
caused by them. At the time of reporting, these assessments demonstrate that extraction could
reasonably be justified.
International Union for Conservation of Nature and Natural Resources
International Financial Reporting Standards
Mykolaiv Alumina Refinery Company Limited, a company incorporated under the laws of Ukraine, which
is a wholly-owned subsidiary of RUSAL
Research and development
Non-profit organisation
Novokuznetsk Aluminium Smelter or JSC RUSAL Novokuznetsk, a company incorporated under the laws
of the Russian Federation, which is a wholly owned subsidiary of UC RUSAL
IUCN
IFRS
NGZ
R&D
NPO
NkAZ
New Energy
The New Energy Programme involves large-scale overhaul and replacement of the core equipment at the
Company’s largest Siberian HPPs, i.e. Krasnoyarsk, Bratsk, Irkutsk and Ust-Ilimsk. The programme
provides for the modernisation of hydroelectric generation units and the replacement of runners
Norilsk Nickel MMC NORILSK NICKEL PJSC, incorporated under the laws of the Russian Federation
OJSC
LLC
UN
SPNAs
GSM
Open Joint-Stock Company
Limited Liability Company
United Nations Organisation
Specially protected natural area(s)
General shareholders meeting
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CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
OHS
HSE
OECD
GHG
Occupational health and safety
Health, safety and environment
Organisation for Economic Co-operation and Development
Greenhouse gases
Listing Rules
The Listing Rules published by the UK’s Financial Conduct Authority in its capacity as competent
authority under the Financial Services and Markets Act 2000 (as amended) and the FCA’s Disclosure
Guidance and Transparency Rules
RA
RAS
RSPP
Rating agencies
Russian Academy of Sciences
Russian Union of Industrialists and Entrepreneurs
DAM, Day-
Ahead Market
The competitive selection of price bids of suppliers and buyers conducted by ATS a day before the actual
delivery of electricity with the determination of prices and volumes of delivery for each hour of the day
RUSAL
Kremny Ural
RUSAL Kremny Ural LLC (formerly SU-Kremny LLC), an indirect subsidiary of RUSAL that is not a 100%
subsidiary
RUSAL, Metals
segment
United Company RUSAL Plc, a limited liability company incorporated under the laws of Jersey (56.88%
owned by En+)
RUSAL
SAYANAL
RusHydro
SAZ
JSC RUSAL SAYANAL, a subsidiary of RUSAL incorporated under the laws of the Russian Federation
RusHydro PJSC (Public Joint-Stock Company Federal Hydro-Generating Company – RusHydro) organised
under the laws of the Russian Federation, an independent third party
Sayanogorsk Aluminium Smelter or JSC RUSAL Sayanogorsk, a wholly owned subsidiary of the Company,
incorporated under the laws of the Russian Federation
OFAC
Sanctions
The designation by OFAC of certain persons and certain companies which are controlled or deemed to
be controlled by some of these persons into the Specially Designated Nationals List
ICS
SignAL
PPE
5S system
Internal control system
En+ corporate 24-hour hotline
Personal protective equipment
Methodology of lean and safe organisation of workplaces to create a comfortable working environment,
increase productivity and reduce production waste
SAP system
Systems Analysis and Program Development
SKAD
The largest Russian company producing cast automotive wheels from aluminium alloys
Adjusted
EBITDA
For any period of time, represents the operating result adjusted for depreciation, impairment of non-
current assets and losses on the sale of property, plant and equipment for the relevant period
Adjusted net
profit
For any period, is defined as the net (loss)/profit adjusted for the net effect of the Company’s
investment in Norilsk Nickel, the net effect of derivative financial instruments and the net effect of non-
current assets impairment
QMS
SMR
CIS
Board of
Directors, BoD
Market
Council
Quality management system
JSC Management Company Soyuzmetallresurs
Commonwealth of Independent States
Board of Directors of the Company
A non-profit organisation formed as a non-profit partnership uniting, on the basis of membership,
electric power entities and large electric power consumers. The tasks of the Council are to ensure the
proper functioning of the commercial infrastructure of the market and the effective relationship
between the wholesale and retail electricity markets, the creation of favourable conditions for attracting
investments in the electric power industry; creating equal conditions for wholesale and retail market
participants when developing regulatory documents on the functioning of the electric power industry,
and ensuring the self-regulation of the system of wholesale and retail trade in electric power, capacity,
other goods and services permissible in the wholesale and retail electricity markets. The goal of the
Council is to ensure the energy security of the Russian Federation, the unity of the economic space,
freedom of economic activity and competition in the wholesale and retail electricity markets by
balancing the interests of producers and buyers and meeting needs of the society in terms of having a
reliable and stable source of electrical energy
POP
PMS
SPP
388
390
Persistent organic pollutants
Production management system
Solar power plant
CBAM
TPP
UAZ
KhAZ
Carbon Border Adjustment Mechanism
Thermal power plant
Urals Aluminium Smelter, a branch of JSC RUSAL Ural
Khakas Aluminium Smelter
UN SDGs
United Nation’s Sustainable Development Goals
Net debt
Eco-
Søderberg
EN+, En+,
Company,
Group
Power
segment
The sum of outstanding loans, borrowings and bonds less total cash and cash equivalents as at the end
of the relevant period
Eco-Søderberg is a technology developed by RUSAL to produce aluminium in modernised electrolysers,
the main advantage of which is the use of environmentally friendly mass with low pitch content
International Public Joint Stock Company EN+ GROUP/IPJSC EN+ GROUP and its subsidiaries, whose
results are included in the consolidated financial statements prepared in accordance with the
International Financial Reporting Standards
The Power segment is predominantly comprised of power assets and operations owned by En+ Group.
The Power segment engages in all aspects of the power industry, including electric power generation,
power trading and supply
UNESCO
The United Nations Educational, Scientific and Cultural Organisation
CCoonnttaaccttss
KALININGRAD
Russia, 236006, Kaliningrad Region, Kaliningrad, 8,
Oktyabrskaya St., office 34
Tel: +7 401 269-74-36
Fax: +7 401 269-74-37
MOSCOW
Russia, 121096, Moscow, 1, Vasilisy Kozhinoy St.
Tel: +7 495 642-79-37
Fax: +7 495 642-79-38
FOR INVESTORS
IR Department
Tel: +7 495 642-79-37
Email: ir@enplus,ru
REGISTRAR
JSC “IRC”
Тел: +7 495 234-44-70
Email: info@mrz,ru
Website:: www,mrz,ru
DEPOSITORY BANK
Citibank, N,A.
Тел,: +1 212 723-54-35
Email: CCiittiiAADDRR@@CCiittii,,ccoomm
Website: https://citiadr.factsetdigitalsolutions.
com/www/drfront_page.idms
WEBSITE
www,enplusgroup,com/en/
MEDIA ENQUIRIES
PR Department
Tel: +7 495 642 7937
Email: press-center@enplus,ru
LLiimmiittaattiioonn ooff lliiaabbiilliittyy
Unless otherwise stated, the information presented in the Report reflects the Company’s status during the review period
from 1 January 2023 to 31 December 2023 (the “Review Period“) and, in some instances, discloses significant events that took
place up to the moment of publication of this report. Therefore, all forward-looking statements, analyses, reviews,
discussions, commentaries and risks presented in the Report (save for this section, or unless otherwise specified) are based
upon information on the Company covering the Review Period only.
The Report includes statements that are, or may be deemed to be, forward-looking statements. In the Report, information
about Company’s strategy, plans, objectives, goals, future events, or intentions as well as the terms “believes”, “estimates”,
“plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” in various forms shall indicate forward-
looking statements. Nevertheless, forward-looking statements may and often do vary from the Company’s actual results.
Any forwardlooking statements are exposed to risks relating to future events and other risks, uncertainties and assumptions
relating to the Company’s business, results of operations, financial position, liquidity, prospects, growth, or strategies.
The data presented in the Report on industry, market and competitive position comes from official or third-party sources.
It is generally stated that the data from any third-party industry publications, studies and surveys was obtained from
the sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. Although
the Company reasonably believes that each of these publications, studies and surveys was prepared by a reputable party,
neither the Company nor any of its respective directors, officers, employees, agents, affiliates, advisors, or agents, have
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CONSOLIDATED REPORT 2023APPENDICESADDITIONAL ESG DATAADDITIONAL ESG DATA
Contacts
KALININGRAD
MEDIA ENQUIRIES
FOR INVESTORS
8, Oktyabrskaya St., office 34,
Kaliningrad, Kaliningrad Region,
236006, Russia
Tel.: +7 401 269-74-36
Fax: +7 401 269-74-37
PR Department
IR Department
Tel.: +7 495 642 7937
Email: press-center@enplus.ru
Tel.: +7 495 642-79-37
Email: ir@enplus.ru
MOSCOW
REGISTRAR
DEPOSITORY BANK
1 Vasilisy Kozhinoy St.,
Moscow, 121096, Russia
Tel.: +7 495 642-79-37
Fax: +7 495 642-79-38
WEBSITE
www.enplusgroup.com/en/
JSC “IRC”
Citibank, N.A.
Tel.: +7 495 234-44-70
Email: info@mrz.ru
Website: www.mrz.ru
Tel.: +1 212 723-54-35
Email: CitiADR@Citi.com
Website: www.citiadr.
factsetdigitalsolutions.com/
www/drfront_page.idms
Limitation of liability
GRI 2-1, 2-2
Unless otherwise stated, the information presented in the Report
reflects the Company’s status during the review period from 1
January 2023 to 31 December 2023 (the “Review Period“) and, in
some instances, discloses significant events that took place up to
the moment of publication of this report. Therefore, all forward-
looking statements, analyses, reviews, discussions, commentaries
and risks presented in the Report (save for this section, or unless
otherwise specified) are based upon information on the Company
covering the Review Period only.
The Report includes statements that are, or may be deemed
to be, forward-looking statements. In the Report, information
about Company’s strategy, plans, objectives, goals, future
events, or intentions as well as the terms “believes”, “estimates”,
“plans”, “projects”, “anticipates”, “expects”, “intends”, “may”,
“will” or “should” in various forms shall indicate forward-looking
statements. Nevertheless, forward-looking statements may
and often do vary from the Company’s actual results. Any
forwardlooking statements are exposed to risks relating to future
events and other risks, uncertainties and assumptions relating to
the Company’s business, results of operations, financial position,
liquidity, prospects, growth, or strategies.
The data presented in the Report on industry, market and
competitive position comes from official or third-party sources.
It is generally stated that the data from any third-party industry
publications, studies and surveys was obtained from the sources
believed to be reliable, but that there is no guarantee of the accuracy
or completeness of such data. Although the Company reasonably
believes that each of these publications, studies and surveys was
prepared by a reputable party, neither the Company nor any of its
respective directors, officers, employees, agents, affiliates, advisors,
or agents, have independently verified the data contained therein.
Moreover, certain industry, market and competitive position
data reflected in the Report comes from the Company’s internal
research and estimates based on the knowledge and expertise of
the Company’s management. Although the Company reasonably
believes that such research and estimates are accurate, they and their
fundamental methodology and assumptions have not been verified
for accuracy by any independent source.
After the Report was prepared, the Company’s operations, its
operating and financial results may have been affected by external
or other factors, including the geopolitical conflict in Ukraine
and sanctions imposed by the other nations against the Russian
Federation, Russian individuals and legal entities. These and other
factors are beyond the Company’s control and may have a negative
impact on the producing capabilities of En+.
The Report was preliminarily
approved by the En+ Group’s
Board of Directors
25.04.2024
(Minutes №73)
General Director
Mikhail Khardikov
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APPENDICESCONSOLIDATED REPORT 2023