Environment protection

GRI 3‑3, SASB EM‑MM‑160a.1

En+ Group is committed to preventing and minimising the impact of its production operations on the atmosphere, water, land resources and biodiversity. In its efforts to protect the environment, the Group is governed by the UN Sustainable Development Goals and national legislation requirements, in particular Russian Federal Law No. 7 of 10 January 2002 On Environmental Protection and the following internal documents:

Environmental Policy

• defines the Company’s principles and key areas of environmental protection efforts
• includes an obligation for each party to comply with the requirements in contracts

Stakeholder Engagement Policy

• defines the procedure for stakeholder engagement, including on environmental protection matters

Supplier Standards

• establishes environmental protection requirements for suppliers

Corporate Code of Ethics

• imposes a duty on Group enterprises to prevent environmental incidents and comply with applicable laws, among other requirements

Biodiversity Policy

• establishes the Company’s key biodiversity conservation principles

In the reporting period, En+ Group established an ash and slag waste department to improve the efficiency of bulky waste management.

GRI 2‑13

Key performance indicators (KPIs) related to the involvement of waste in circular economy, reclamation of disturbed land, compliance with emission standards, elimination of risks with environmental impacts were set for the Company’s management and the Director for Sustainable Development.

The Company has an environmental management system (EMS) certified to ISO 14001:2015 and GOST R ISO 14001‑2016 Environmental Management Systems. In the reporting period, CHPs in the Irkutsk Region received certification. The Metals segment’s Urals Silicon and Urals Alumina Refinery also completed certification. An audit for recertification of the environmental management system was carried out at the Group’s HPPs. Additionally, several internal audits were held at CHPs and HPPs in the reporting period.

In 2024, all contractors’ supplementary agreements were updated to include uniform standards for environmental protection, with a special emphasis on safeguarding aquatic biological resources.

GRI 3‑3, 14.3.1

In order to adhere to the prescribed standards, En+ Group carries out pollutant concentration monitoring using instrumental methods as part of its industrial environmental control (IEC) initiatives. Besides, the Company conducts additional air quality studies in the regions of responsibility to assess the impact of operations on the state of the atmosphere.

Some of the Company’s enterprises are located in the cities participating in the Clean Air federal project, such as Bratsk, Novokuznetsk and Krasnoyarsk. The goal of the project is to reduce pollutant emissions in cities by 20% by 2026.

GRI 3‑3, 303‑1, 303‑2, 14.7.1, 14.7.2, 14.7.3

En+ Group enterprises have standards for the use of water resources, specifically pollutant discharges, developed on the basis of the national legislative requirements. Accredited organisations monitor prioritised pollutants (oil products and suspended particles) in wastewater and reservoirs. To prevent pollutants from entering the water, the Group conducts regular inspections of the serviceability of generating and treatment equipment.

The Company operates modern treatment facilities and upgrades them. Some enterprises of the Metals segment оperate a closed‑loop water recycling system, thus reducing their water withdrawal and discharge. Urals Alumina Refinery continues to implement the system.

En+ Group interacts with stakeholders on these matters, with the Metals segment publishing voluntary responsible water report.

GRI 3‑3, 303‑1, 303‑2, 14.7.2, 14.7.3, SASB IF‑EU‑140a.3

Some Group enterprises operate in areas characterised by severe water shortagesThe assessment was performed using the Aqueduct Water Risk Atlas..To reduce the impact on water resources, the Group is introducing closed‑loop water recycling systems across its production facilities. In 2024, Armenal performed activities to advance its system: the measures were taken to improve the rolling section recycling unit.

GRI 3‑3, 306‑1, 306‑2, 14.5.1, 14.5.2, 14.5.3, SASB EM‑MM‑150a.10

The Power segment has an internal Waste Management Standard that establishes the procedure for waste collection, recycling and disposal. The Metals segment aligns its activities with its own Industrial Waste Management Strategy to 2030 establishing a hierarchy of waste management efforts using the Zero Waste to Landfill principle. In the reporting period, the Metals segment additionally developed and approved safe waste management programmes for 2024–2029 and set annual targets.

To minimise the negative impact on land resources, En+ Group implements the following measures:

1. The Company monitors compliance of its own waste disposal facilities with the established standards and controls their safety. In 2024, the Company modernised waste storage sites to ensure more efficient and safe disposal of bulky waste from coal‑fired generation.

2. En+ Group implements waste recycling projects to lower the amount of waste sent for disposal and to obtain additional profits. The Company has developed a long‑term ash and slag waste management programme to explore promising ways of disposal of such waste. The Metals segment has launched a project to produce raw materials for household chemicals from electrolysis gas purification sludge.

   SASB EM‑MM‑160a.2

3. To mitigate the negative impact on land resources effectively, En+ Group applies technologies that prevent the generation of acid waste.

   GRI 14.6.1, SASB EM‑MM‑540a.2, EM‑MM‑540a.3

4. The Group ensures safe functioning of its hydraulic structures (HS) and has emergency response plans in place. No emergencies or significant sludge spills were recorded in 2024.
5. The Company strives to minimise the area of disturbed land and, after the completion of open‑pit mining, performs land reclamation in accordance with the approved plans, including using ash and slag waste. The Company also implements reclamation measures for contaminated land and waste disposal facilities.
6. En+ Group also performs reforestation activities.

En+ Group continues to implement the Green Office initiative, which aims to create a comfortable workspace with minimal environmental impact. In particular, separate waste collection has been organised in the offices. To reduce the volume of household waste, the Company has abandoned the use of disposable plastic dishes, and is adopting practices aimed at conserving water and energy. In 2024, a separate waste collection system was implemented across the offices of the Power segment in Irkutsk, as well as across the Angara HPP cascade, Krasnoyarsk HPP and CHPs. To promote the practice, the Company developed lectures about the Green Office for employees for the corporate portal.

GRI 101‑2, 14.4.3

En+ Group develops corporate biodiversity conservation programmes for its production sites taking into account the requirements of various international standards and initiatives, including the Kunming‑Montreal Global Biodiversity Framework. Within the Power segment, such a document is in place for Irkutsk, Bratsk and Ust‑Ilimsk HPPs and reservoirs.

The goal of the programme is to prevent or mitigate the negative impact of Angara HPPs and reservoirs on biodiversity and participate in maintaining stable condition of the cascade in the long term.

GRI 101‑4, 101‑5, 101‑6, 101‑7, 14.4.4, 14.4.5

During the development of the programme, experts identified areas of direct and indirect impact of the facilities on biodiversity and drafted a map of the impact areas. Angara HPPs do not operate in environmentally vulnerable Environmentally vulnerable areas are those with rich biodiversity, strong ecosystem integrity, significant degradation of ecosystem health, high physical risks to water resources, or those that are crucial for providing ecosystem services to indigenous peoples, local communities, and other stakeholders. areas. The nearest protected area (Pribaikalsky National Park) is located at a distance of 43 km.

Map of potential biodiversity impact areas of Irkutsk, Bratsk and Ust‑Ilimsk HPPs

En+ Group entered into an agreement with the Institute of Geography of the Siberian Branch of the Russian Academy of Sciences on field verification of the biodiversity conservation programme. Due to the large area covered by the programme (8.5 million hectares), the work will be divided into two stages. In the reporting period, studies were performed in the areas of the Irkutsk and Bratsk reservoirs and adjacent territories. Further verification for Ust‑Ilimsk HPP is scheduled for 2025.

The Power segment has devised a Biodiversity Conservation Action Plan for three HPPs, with the first stage covering 2023–2025. The plan contains a list of planned activities and indicator species (plants, animals), which will be monitored and supported by specialists. En+ Group strives to increase the cumulative positive effect of measures to preserve biodiversity and combat climate change.

For instance, the Company has developed a climate change adaptation programme for the Angara HPP cascade, which will positively affect biodiversity.

GRI 101‑2, 14.4.3

The Metals segment has also completed work on corporate programmes to conserve biodiversity and maintain ecosystem services for Timan Bauxite, Urals Alumina Refinery and Irkutsk Aluminium Smelter (IrkAZ). The Company has developed a system of metrics and indicators that makes it possible to assess both the state of biodiversity of territories and the effectiveness of measures taken to preserve it.

GRI 3‑3

En+ Group annually assesses environmental risks as part of the overall risk management system. In 2024, the Company adopted a methodology for assessing the environmental impact of risks. In 2024, the Power segment revised its Strategic Plan for Environmental Risk Management replacing it with a Management Plan for Risks with Environmental Impacts, which includes risk management measures and their deadlines.

GRI 101‑2, 14.4.3

When assessing risks to biodiversity and ecosystem services, the Company takes into account the location of enterprises and the specifics of their production processes. If significant risks are identified, En+ Group holds consultations with scientists and industry experts, sets biodiversity conservation targets, and develops risk mitigation action plans taking into account the hierarchy of mitigation activities.

During the development of corporate biodiversity conservation programmes, the Metals segment also conducted a preliminary risk assessment. The procedure for assessing risks to biodiversity and priority ecosystem services consists of the following stages:

• Identification of impact factors
• Assessment of physical risks (including potential risks) associated with impact factors
• Assessment of transition risks (including potential risks) associated with impact factors
• Overall assessment of corporate risks
• Creation of a risk register

Based on the results of the assessment, the risks were recognised as predominantly insignificant, but for some aspects, such as land use for mining, it was proposed that they were considered to be other than insignificant. The Company develops measures to manage such risks.

GRI 3‑3, 101‑1, 14.4.2

En+ Group has set the following targets for environmental protection and biodiversity conservation.

GRI 2–27, SASB EM‑MM‑140a.2, IF‑EU‑140a.2, EM‑MM‑150a.9

There were no incidents in the reporting period that could lead to significant En+ Group defines the impact as significant if it leads to penalties exceeding USD 1  million. environmental damage. The Company took into account the alerts and notices received from Supervisory authorities and developed corrective action plans.

RUB 19.6 billion was spent on environmental measures in the reporting period, with the majority of funds allocated to air protection. The cost structure did not change significantly compared to the previous year. The total payments for the negative environmental impact were RUB 814.8 million, a 23.9 decrease year‑on‑year.

GRI 305‑7, 14.3.2, SASB EM‑MM‑120a.1, IF‑EU‑120a.1

In the reporting period, gross air pollutant emissions, excluding greenhouse gases, equalled 708.1 kt, 2.4% more than the 2023 indicator due to increase in CHP generation in 3% year‑on‑year. Сarbon dioxide (67.4%) accounted for the majority of emissions of the Metals segment, while sulphur oxides (58.9%) was the primary source of the Power segment’s emissions.

Atmospheric emission intensity indicators To track the results of measures to reduce the negative impact on environmental components, the Company calculates specific emission 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.

GRI 303‑3, 303‑4, 303‑5, 14.7.4, 14.7.5, 14.7.6, SASB EM‑MM‑140a.1, IF‑EU‑140a.1

Structure of water consumption and discharge in 2024

GRI 303‑3, 14.7.4, SASB EM‑MM‑140a.1, IF‑EU‑140a.1

In 2024, En+ Group totally withdrew 1,062.0 million m³, which is 2.6% more water than in 2023 due to increase in output at the Group’s CHPs by 3% year‑on‑year. In 2024, the majority of water was withdrawn from surface water bodies. Due to the nature of the production processes, the Power segment withdraws most of the water (85.0%). Fresh water withdrawal was 1,032.9 million m³, up 2.6% vs. 2023. Sea water is only used by the Metals segment for equipment cooling processes. The share of water withdrawal in regions with water shortages was 1.1% for the Metals segment. These indicator did not change year‑on‑year.

GRI 303‑5, 14.7.6, SASB EM‑MM‑140a.1, IF‑EU‑140a.1

The Company consumed 727.2 million m³ of water in the reporting period. This represents a 2.4% increase year‑on‑year. The Power segment consumed most of the water (87.6%). The share of water used in recirculating water systems was 64.3%.

GRI 303‑4, 14.7.5

In the reporting period, En+ Group discharged 664.9 million m³ of water, up 12.3% vs. 2023. The Power segment discharged the largest volume of water (93.5%). 641.9 million m³ of fresh water were discharged, up 13.6% year‑on‑year. The Power segment accounted for 96.9% in fresh water discharge.

Water‑related intensity metrics

GRI 306‑3, 14.5.4, SASB EM‑MM‑150a.4, EM‑MM‑150a.5., EM‑MM‑150a.6, EM‑MM‑150a.7

In 2024, En+ Group generated 157.9 mt of waste, down 29.8% year‑on‑year due to reduction of waste generation in the coal business. The Power segment generated the majority of waste (70.0%). The Company’s waste is mostly non‑hazardous The Company classifies Class I–III waste (according to the classification of the Russian legislation) as hazardous and Class IV–V waste as non‑hazardous. (99.6%).

GRI 306‑4, 14.5.5, SASB EM‑MM‑150a.8

In 2024, the Group utilised En+ Group recycles and reuses waste, including sending it to specialised organisations for such purposes. 98.5 mt of waste (62.4% of all waste), down 5.6% year‑on‑year. The majority of waste was utilised by the Power segment (96.6% of total waste disposed of all utilised waste).

GRI 306‑3, 306‑4, 14.5.4, 14.5.5, 14.5.6, 306–5, SASB EM‑MM‑150a.8, SASB IF‑EU‑150a.1

Waste intensity metrics

GRI 14.8.6

As of the beginning of the reporting period, the area of disturbed but not yet reclaimed land of the Company amounted to 24,200 ha; as of the end of the period it was 24,500 ha. In 2024, 511 ha of land was disturbed (a year‑on‑year increase of due to 31.0). The Company managed to rehabilitate 175 ha, which is 50.2% less than in the previous year. In the reporting period, Group employees planted 250,000 tree seedlings in the Kirenskoye forest area. The plantings will be taken care of over the next three years. In total, the Company planted trees on an area of 64 ha.