REM: Russian metals major Norilsk Nickel sets CO2 neutrality for 2060

Russian metals major Norilsk Nickel plans to achieve carbon neutrality before 2060, Interfax reported citing the head and main shareholder of the company, Vladimir Potanin. 

Reportedly, Norilsk Nickel is preparing a programme to achieve carbon neutrality earlier than 2060, the government’s proposed deadline for decarbonisation in Russia, with more details to be announced at the company’s Investor Day at the end-November. 

As followed by bne IntelliNews, the company has faced numerous ESG problems in the past two years. In 2021 Norilsk Nickel has updated its 2030 strategy and ESG plans.

The CO2 neutrality horizon is "too long-term to affect market sentiment at this stage" BCS Global Markets commented on October 22, while affirming a Buy call on Norilsk Nickel shares.

Potanin and shareholder of Norilsk Nickel aluminium major United Company Rusal have renewed the debate on dividend distribution from the company, on which Rusal relies for a significant part of its cashflow. Norilsk Nickel previously lowered the dividend but proposed a $2bn buyback. It is possible that the ESG plans of the company will get mixed up in the dividend conflict. 

Norislk Nickel posted a 33% year-on-year rise in revenues in 1H21 to $8.9bn under IFRS, with EBITDA soaring 210% y/y to $5.7bn and net income jumping 292% y/y to $4bn. The results have beaten consensus expectations by 4%-8%. However, the dynamics were weaker compared to 2H20.