The impact of environmental factors on the financial performance of a mining and metallurgical company

In modern conditions, the high pace of industrial development is accompanied by an increasing environmental burden, which amplifies pressure on companies from government regulators and the public, transforming environmental risks into financial and reputational losses. The purpose of this study is to assess the impact of key environmental factors (environmental costs, volumes of pollutant emissions, water consumption, waste generation) on the company’s financial performance and to develop practical recommendations for reducing the environmental footprint and strengthening financial resilience. The research focuses on PJSC «MMC Norilsk Nickel» (Nornickel). To conduct the assessment, methods of correlation and regression analysis were applied based on data from the company’s consolidated financial statements and sustainability reports for the period 2015–2024. The results indicate the presence of statistically significant relationships between the company’s environmental activities and its key financial indicators, primarily revenue and operating profit (EBITDA). The most substantial positive impact on revenue is exerted by an increase in waste generation (as an indicator of production scale) and investments in sustainable development. Significant inverse relationships were identified: a decrease in energy consumption and the volume of pollutant emissions against the backdrop of revenue growth points to improved energy efficiency and the effectiveness of environmental programs. Net profit and free cash flow show a lesser degree of dependence on environmental factors. The practical significance of the study lies in formulating recommendations that contribute to reducing the environmental burden and strengthening the financial stability, market value, and strategic positioning of companies in the long term.