Polymetal uses sustainability-linked financial instruments such as green loans and ESG-linked loans to ensure responsible financing, aligning capital with the company’s strategy and strong ESG performance. Polymetal’s lenders and investors can participate in our sustainability journey. The total amount of green loans stands at $680 million and comprises approximately 40% of total debt.
«Sustainability is the cornerstone of Polymetal’s business model. Green financing will reinforce our determination to accelerate transition to a low-carbon economy and safer environment», said Vitaly Nesis, Group CEO of Polymetal.
We regard sustainability as an essential element of our activities. As an investment in our society as well as the future, we firmly believe that anchoring sustainability as part of our business strategy will lead to economic, environmental and social progress. At Polymetal we strive for a ‘zero harm’ culture both socially and environmentally; we try to minimise our impact on the environment and biodiversity whilst encouraging a culture where every employee takes personal responsibility for harm reduction.
Polymetal has developed a comprehensive financing programme to meet these aims, including a wide range of debt instruments to secure funding for our sustainability projects. These include the development of solar and wind power plants, investment in grid connections to remote assets and procurement of electricity supplies with the lowest available carbon footprint. We also invest in water treatment facilities and the restoration of local biodiversity that may have been disturbed by our activities. 40% of Polymetal’s debt is sustainability linked, providing a clear and objective data framework for stakeholders to monitor project progress.
Polymetal is a pioneer of green sustainable financing, being one of the first in the global mining industry to secure an ESG-linked loan in 2018.
Following four more transactions, the latest being $125 million Green loan secured in 2020 and $400 million climate transition loans secured in May 2021, Polymetal now boasts a 40% ESG-linked debt portfolio. These credit facilities will support Polymetal’s transition into a sustainable and low-emissions economy.
Polymetal has set the following environmental and social KPIs that are significant for the business and are monitored by creditors on an annual basis.
GHG Emissions
Polymetal recently published its first Climate Change Report, setting a strategic goal to reduce GHG emission intensity by 30% by 2030 (by 35% in absolute terms), including the intermediate target of 15% by 2025.
Water
We are committed to gradually increasing the share of water reused in our processing cycle, having set a goal to reduce fresh water use for processing each tonne of ore by at least 11% by 2023, compared to 2018. On average, approximately 87% of our water is recycled and reused, and in 2020 fresh water use for processing intensity has been reduced by 43% compared to baseline 2018 year.
Waste
As waste is an inherent by-product of mining, waste management is a fundamental aspect of the sustainability program. Polymetal aims to recycle 16% of waste generated by 2023. In addition, the Company will gradually switch to safer tailings disposal and implement dry stacking in all new growth projects. This decreases our environmental impact by reducing land use and water consumption, as well as better safety and pollution control of the site.
Fatalities
Polymetal continues to dedicate resources to reduce the overall number of fatalities and decreasing LTIFR among employees and contractors. The Company aims to ensure zero fatalities and injuries caused by falling rock mass, flammable materials and working at height. We also strive for a year-on-year decrease in days absent to injury. Interventions such as remote-controlled mining equipment have shown to have an effect, with zero fatalities and a 10% reduction in absent days following accidents reported in 2020.
Community conflicts
Polymetal strives to maintain substantial long-term investments in our communities and ensure zero community conflicts. No conflicts were reported in 2020.
In September 2020 Polymetal introduced the Green Financing Framework — a standard compiling principles of green financing that aims at facilitating transparency, disclosure procedures, integrity and quality in Polymetal’s green loans. The framework establishes the categories and criteria for projects eligible for green financing, the approach to project selection and evaluation, the principles of proceeds allocation and reporting standards.
The Green Financing Framework is based on and in line with the LMA’s Green Loan Principles 2018. Polymetal has obtained the second opinion on the Framework from Centre for International Climate and Environmental Research («CICERO»). Within CICERO Shades of Green, Polymetal’s Green Financing Framework was rated «Medium Green» (out of possible brown, light, medium and dark green) and received a governance score of «Good» (out of possible Excellent, Good and Fair).
The funds raised via Green Financing Framework will be exclusively used to finance and/or refinance green projects, which fall into the following eligible categories: clean transportation projects, renewable energy projects, energy efficiency, sustainable water management and pollution prevention and control. The green projects will be verified for compliance with the eligibility criteria and relevant Sustainable Development Goals defined in the Green Financing Framework.
Polymetal commits to publish the Green Loan Report on an annual basis until the full allocation of the Green Loan proceeds, and on a timely basis upon material changes of projects. The Green Loan Report will consist of information on the allocation of proceeds and on environmental benefits a green project is expected to achieve. The allocation reporting will be audited at the end of the utilisation period.
Progress on the environmental and social KPIs is disclosed annually in the Sustainability report.
You are downloading Integrated Annual Report . Please note that some ESG data are available in Sustainability Performance Data 2021 (GRI and SASB) that outlines our key non‑financial performance information for financial year 2021.
While the selected files are being downloaded, we want to draw your attention to the reports on the sustainable development of the company. They provide detailed information on ESG indicators.
You can also download historical data on sustainable development.