Climate change and energy management
- Regulations on Risk Management
- Environmental Policy
- Technical Policy
- Methodology for determining direct GHG emissions during the production of primary aluminium
- Methodology for determining direct GHG emissions during the production of alumina
- Climate strategy
Material topics
- Climate change
- Energy management
- Just energy transition and low‑carbon products
GRI 3‑3
The climate change and climate‑related risk management system ensures that tasks are resolved effectively and their implementation is closely monitored.
GRI 2‑13
Allocation of responsibility for climate change management- Oversees the implementation of ESG policies and monitors the achievement of climate targets
- It manages the implementation of measures to achieve climate goals
- Pursuant to the Regulations on the Committee, supervises the management of climate‑related risks and opportunities and provides relevant information to the Board of Directors. The Committee receives quarterly updates regarding developments in international and Russian climate change laws, as well as innovations in this area. Based on this information, it formulates yearly suggestions for adjusting climate objectives and presents them to the Board of Directors for review, if needed
- The CEO is responsible for implementing strategic climate decisions adopted by the Board of Directors. Assumes the primary responsibility for the operational tasks within this domain. The CEO annually approves internal climate goals of En+ Group and the budget for activities to achieve them
- The CEO participate in operational committees and meetings that address climate‑related risks and the strategies for managing them, while also making decisions in this area
- Reviews the Company’s risk portfolio, including its alterations and key risk management programmes, particularly concerning climate‑related risks, on a quarterly basis
- Being part of the Sustainable Development Directorate, it reports to the Director for Sustainable Development in the field of climate.
- It provides quarterly updates to the HSE Committee and the Board of Directors regarding the progress of achievement of the climate goals and the progress of activities to manage climate‑related risks and opportunities
GRI 2‑13
The Board of Directors is responsible for managing energy consumption. The Chief Executive Officer provides energy efficiency reports which are then reviewed by the HSE Committee of the Board of Directors. The Technical Directorate is in charge of overseeing efficiency improvements at the operational level for both En+ Group segments.
The Group has identified climate and energy efficiency KPIs that play a role in the remuneration of managers throughout the Company structure. For example, for the Chief Sustainability Officer, the climate KPI accounts for 5% of the annual bonus. In 2024, this indicator associated with the verification of calculations of greenhouse gas emissions from the reservoirs of the Angara HPP cascade was achieved successfully.
GRI 2‑25
The main documents governing the Company’s climate change management is the Environmental Policy and the Climate strategy. Energy consumption is also governed by En+ Group’s Technical Policy. Aughinish, Alumina Refinery, is recognised with ISO 50001 certification, which verifies the effective deployment of an energy management system.
100% of the Metals segment’s products meet the criterion of a low carbon footprint product – a carbon footprint of less than 4 t of CO2 e per tonne of aluminium (Scope 1 and 2). The products are sold under the ALLOW brand, with a carbon footprint of 2.3 t of CO2 e per tonne of aluminium (Scope 1 and 2), ALLOW INERTA, aluminium with a carbon footprint of 0.01 t of CO2 e per tonne of aluminium (Scope 1 and 2). The product portfolio is enriched with products involving recycled aluminium scrap (foundry alloys for wheel production, flat ingots for can strip production, cylindrical ingots).
GRI 3‑3, 14.1.1, SASB EM‑MM‑110a.2, IF‑EU‑110a.3
In pursuit of carbon neutrality by 2050, En+ Group has crafted a roadmap for decarbonisation. It sets forth targets for gross greenhouse gas emissions and the activities required to achieve them by segment for each year.
The Company annually publishes its Pathway to Net Zero Progress reports. In November 2024, the Company presented the report to stakeholders at the “Net Zero Day” event.
GRI 3‑3, 305‑5
Net Zero Roadmap activities
Generation of low‑carbon energy
En+ Group obtained a global certification for the verification of greenhouse gas emissions originating from HPP reservoirs. The verification of reservoir emissions allowed the Power segment to complete the registration of four HPPs in the National Low‑Carbon Electricity Certification System. HPP qualification is necessary to issue generation attributes confirming the low carbon footprint of the electricity produced and then sell them to companies and individuals interested in reducing their climate impact.
Progress:
The Company continues to implement the ‘New Energy’ Programme.
For more details on the progress of the ‘New Energy’ programme, see the Investment Programme and modernisation section
Progress:
Construction of new HPPs and WPP
The projects are designed to provide regions with renewable energy.
For more details on the construction of HPPs and WPP, see the Investment Programme and modernisation section
Progress:
Power generation at CHPs
Conversion of CHPs to gas
The government of the Irkutsk Region, together with a gas company, is developing a gasification programme for the region, under which the possibility and conditions for transferring the Group’s CHPs to gas fuel are being considered.
Energy efficiency measures
The Company continues to implement energy efficiency projects at the Group’s CHPs.
Progress:
Transportation
Hydrogen transport infrastructure
En+ Group is deploying projects aimed at developing hydrogen‑fuelled corporate vehicles and related infrastructure, including electrolysers and refuelling stations. In the reporting year, it implemented a project to develop infrastructure for hydrogen passenger transport in Irkutsk and Krasnoyarsk.
Electric vehicle infrastructure
In 2024, En+ Group installed 19 charging stations for electric vehicles in the Irkutsk Region.
Progress:
GRI 201‑2, 14.2.1, 14.2.2
En+ Group regularly identifies, analyses and assesses the materiality of climate‑related risks as part of the overall risk management process in accordance with the internal Regulations on Risk Management,the guidance of the IFRS Foundation’s International Sustainability Standards Board and the Methodological Recommendations of the Ministry of Economic Development of Russia Order of the Ministry of Economic Development of Russia No. 267 dated 13.05.2021 On the Approval of Methodological Recommendations and Indicators on Adaptation to Climate Change. . The assessment involves the following:
- Analysis of data on climate‑related risks and opportunities
- Risk prioritisation using the scenario approach
- Evaluation of how risks align with the general risk management principles of En+ Group and development of the management activities, if necessary
The materiality and priority of climate‑related risks are assessed by evaluating how likely they are to happen and the potential effects if they do, while the strategic implications are gauged by examining their financial impacts. En+ Group ranks risks based on their materiality: the most significant of them are characterised by a high or medium likelihood of occurrence, as well as consequences that are of maximum, high, or medium importance. In cases where a risk presents a low chance of happening yet carries the potential for severe repercussions, the Company often transfers it (most often through insurance). En+ Group additionally monitors risks with a low probability of occurrence and insignificant consequences and considers them acceptable.
En+ Group assesses climate‑related risks over three planning horizons, but most of the risks are relevant in the long term.
The assessment uses the following SSP (Shared Socioeconomic Pathways) climate change scenarios:
GRI 201‑2, 14.2.1, 14.2.2
The Company takes into account in its business strategy both physical climate‑related risks, i.e., those associated with weather events related to climate change, and transition risks, i.e., those caused by the transition to a low‑carbon economy.
In the reporting period, the list of transition and physical risks and an assessment of their impact on the Company’s operations were updated. Physical risk assessment spans across the entire perimeter of the Group. En+ Group updates the register of physical risks on a quarterly basis and monitors the relevant mitigation measures.
GRI 201‑2, 14.2.1, 14.2.2
| Opportunities associated with physical risks: |
|---|
| Construction of facilities generating low‑carbon energy Cost and fuel and energy savings due to reduced heating season |
| Opportunities associated with transition risks: |
|---|
| Adoption of low‑carbon technologies driven by their progress and long‑term affordability Increased sales of products with a low carbon footprint Access to new and emerging markets Emergence of new economic instruments: RES attribute certificates, carbon units from climate projects, ESG financing instruments |
In 2024, En+ Group did not include risks related to energy management in the overall list of risks. Despite this, the Group consistently implements initiatives to increase the efficiency of using fuel and energy resources across its enterprises, thus minimising risks associated with energy consumption and energy efficiency.
Register of material Material climate‑related risks are defined as those with a probabilistic financial loss exceeding USD 1 million. climate‑related risks
| Business segment | Hazard | Physical climate‑related risk | Potential incident / risk event | Short‑term impact on the EBIT of the Group’s entities | Risk management activities (climate change adaptation measures) |
|---|---|---|---|---|---|
| Hydropower generation | Decrease in the overall water intake | Reduced power generation | Reduced revenue in the wholesale electricity and capacity market | up to USD 50 million |
|
| Coal | Heavy rains, severe frost | Flooding due to heavy rains | Lagging behind the production plan and decrease in coal mining revenue | USD 1—2 million |
|
| Business segment | Transition climate‑related risk | Potential incident / risk event | Short‑term impact on the EBIT of the Group’s entities | Risk management activities |
|---|---|---|---|---|
| Aluminium Division | Introduction of the Carbon Border Adjustment Mechanism in the EU and mirror mechanisms in aluminium export countries | Increase in operating expenses due to carbon charges per tonne of aluminium exported | USD 2—10 million | Implementation of a climate strategy to reduce the carbon footprint of the plants producing aluminium for export |
| Entire company | Introduction of carbon regulation in Russia | Increase in operating expenses due to carbon tax per tonne of GHG emissions | — | Implementation of the Climate Strategy, investment and operational projects to reduce CO2 emissions. Interaction with authorities through participation in associations, working groups; comments on and adjustments to low‑carbon development bills |
Consolidated financial assessment of the climate‑related risks impact on En+ operations
En+ Group takes measures to adapt to climate change in order to avoid negative consequences for business, including the following:
- The Company monitors the condition of production facilities and performs timely repairs to avoid their destruction as a result of climate‑related risk factors.
- To prevent downtime as a result of climate‑related risks, the Company purchases new equipment capable of operating in harsher climatic conditions and upgrades existing equipment, such as walking excavators.
- To successfully manage climate‑related risks, En+ Group tracks data on anticipated weather conditions to take preemptive steps if forecasts worsen, ensuring that workers are informed and safe.
- To reduce the probability of falling behind the production plan for coal mining enterprises, the Company creates reserves of extracted raw materials.
| Risk | Planning horizon | Management activities |
|---|---|---|
| Decrease in the annual volume of river flow in the Baikal and Angara basins | After 2030 |
|
| A higher risk of floods and droughts | After 2030 |
|
| Increased fire hazards | Relevant now |
|
GRI 3‑3, SASB EM‑MM‑110a.2, IF‑EU‑110a.3
En+ Group has set the following targets to reduce greenhouse gas emissions and improve energy efficiency.
| Targets | Status | Progress made in 2024 |
|---|---|---|
| A 35% reduction in GHG emissions by 2035 compared to 2018 | On track | As a result of upgrading capacity and developing energy‑saving measures, emissions were cut by 1% compared to the baseline year |
| Net Zero by 2050 | On track | |
| Reducing the average carbon intensity of electricity produced and consumed | On track | In the reporting period, the carbon intensity of electricity produced decreased by 4.3% in the Power segment |
| Increasing the use of energy from alternative sources by 2030 | On track | The Company is working on HPP and WPP construction projects |
| Increasing clean electricity generation by 2.5 TWh, and preventing emissions of over 2.5 mt of CO2e per year from coal‑fired power plants from 2025 onwards | On track | Annual hydropower generation rose by 2.5 TWh, reducing annual emissions of 2.9 mt of CO2e by partially substituting demand for electricity generated by CHPs |
GRI 305‑1, 305‑2, 305‑3, 14.1.5, 14.1.6, 14.1.7, SASB EM‑MM‑110a.1, IF‑EU‑110a.1, IF‑EU‑110a.2
To assess its own climate impact and analyse the effectiveness of measures to achieve the set climate goals, the Company measures Scope 1, 2 and 3 GHG emissions Direct, energy indirect and other indirect GHG emissions. . The market approach is used to estimate Scope 2 emissions. The measurement includes emissions of such greenhouse gases, as carbon dioxide, methane, perfluorocarbon, and nitrous oxide.
In 2024, gross GHG emissions of all Scopes increased by 1% compared to the previous reporting period to 66.6 mt of CO2e due to increase in Group’s CHP generation by 3% year‑on‑year as a result of an increase in energy consumption in the Irkutsk energy system by 9.2% compared to the previous year.
GRI 305‑1, 305‑2, 305‑3, 14.1.5, 14.1.6, 14.1.7, SASB IF‑EU‑110a.1,IF‑EU‑110a.2, EM‑MM‑110a.1
GRI 305‑4, 14.1.8
Specific GHG emissions (including carbon dioxide, methane, perfluorocarbon, nitrous oxide) from the electrolysis process in the Metals segment in the reporting period equalled 1.99 tonnes of CO2e per tonne of aluminium, a 0.5% increase compared to 2023. At the same time, specific emissions of the Power segment dropped by 4.3% due to increase in HPP generation. Overall, energy generation at CHPs of the Power segment is the most carbon‑intensive area of En+ Group’s operations (37% of the Company’s total carbon footprint in 2024). Within the Metals segment, the production of alumina stands out as the primary source of carbon emissions (29.1%).
GRI 305‑4, 14.1.8
GRI 305‑4, 14.1.8
For more details on GHG emissions, see Appendix Additional ESG Data
GRI 302‑1, 302‑4, GRI 14.1.2, SASB EM‑MM‑130a.1
The total energy consumption of En+ Group was 346.8 million GJ in the reporting period. This value is 1.7% less than the 2023 indicator. 0.5% of consumed energy came from renewable sources, while 84% of all energy was supplied from renewable sources. Both the Power and Metals segments take measures to improve energy efficiency. In 2024, the energy savings amounted to 8.5 million GJ.
GRI 302‑1, 14.1.2, SASB EM‑MM‑130a.1
En+ Group’s energy balance in 2024
GRI 302‑3, GRI 14.1.4
The energy intensity of the Metals segment was 113.6 GJ per tonne of aluminium produced, a 3.2% increase vs. 2023. The energy intensity of the Power segment reached 2.551 in the reporting period, down 4% due to increased output at HPPs and reduced losses.
GRI 302‑3, 14.1.4
GRI 302‑3, 14.1.4
For more details on energy consumption, see Appendix Additional ESG Data
Plans for 2025 and the medium term
- To update a climate strategy.
- To reassess the impact of climate‑related risks on the Company’s operations.
- To continue implementing the climate strategy.