Environmental protection and safety, as well as climate change risk management are key issues for us. Proper management of these aspects ensures the sustainable development of PhosAgro Group and well-being of the regions where we operate.
The Company’s 2025 Development Strategy sets forth provisions to ensure strict compliance with environmental responsibility requirements and minimize the environmental impact of our operations throughout the entire product life cycle, from ore to feedstuff.
By 2025, it will be 0.800 kg/tonne of product
By 2025, it will be 4.16 m³/tonne of product
By 2025 to 5.16 m3/t
By 2028, specific greenhouse gas emissions (scope 1) will amount to 109.1 kg in tСО₂-eq, which is 30.9% below the 2018 baseline
The PhosAgro Group’s key priorities are to protect the environment and reduce the environmental impact of its operations. We strive to create our fertilizers in a safe and environmentally friendly way, ensuring sustainable growth in agricultural production worldwide.
The environmental management system is a part of the Company general management system and is a fundamental element of the environmental management responsibility approach.
In 2021 the environmental management system was certified at all production facilities of the Group and fully confirmed its compliance with ISO 14001 international standard.
The environmental management system covers all levels of management and stages of the product life cycle — from its development to manufacture of finished products and their use by consumers. This approach ensures uniformity in the management of all aspects of the Group’s production activities.
Defines the Company’s environmental policy and sets strategic goals to ensure environmental protection and reduce the negative impact of its operations
Forms and regularly reviews PhosAgro’s internal regulatory framework for sustainable development, including monitoring the development of documents, their relevance, effectiveness and quality, as well as compliance with legal requirements and internal sustainability goals
Involves key stakeholders and contributes to the development and growth of healthy and sustainable communities in all regions
The Committees are responsible for planning, identifying key focus areas for environmental management, tracking progress, and assessing results
The department is responsible for general management, organisation and coordination of efforts to continuously enhance environmental management
Honour its commitment to the ongoing environmental improvement
Production units, which have the greatest environmental impact, have introduced a procedure for identifying and assessing risks and opportunities. Based on the results, we develop measures to bring risks pertaining to significant environmental aspects to an acceptable level
Managers and experts responsible for making operational and other decisions that may adversely affect the environment take a specially designed training course in environmental safety
Only specially trained employees are cleared to handle hazard class
In order to confirm the compliance of the management system with the requirements of the IFA’s “Protect and Sustain” and ISO 14001 standard, independent external audits are conducted at planned intervals. Group enterprises have a special internal audit management procedure in place. Every year, an internal audit programme is developed that takes into account the environmental aspects of the processes being audited, the changes affecting the Company and the results of previous audits. The results of these audits are used as input data for analysing the functioning of the environmental management system on the part of management.
All planning processes in the Company are closely linked to interaction with stakeholders. Public hearings are a legitimate and effective mechanism for establishing dialogue, as stakeholders gather at a discussion platform to express their opinions and proposals regarding initiatives under consideration. This is an effective mechanism and has a positive and constructive impact on the decision-making process. Engaging the general public and an array of stakeholders in discussion is an important step to ensure that all points of view are considered. The list of completed public hearings is available via the Public hearings.
Clean minerals for healthy lives
Fertilizers are made from phosphate ore of magmatic origin unique in its purity, and do not contain hazardous impurities in excess of the permitted thresholds. Fertilizer quality and safety are confirmed by test reports issued by certified laboratories. Some of the safest phosphate-based fertilizers in the world, with cadmium content of 5 mg/kg of P2О5.
Apatit obtains permits for all types of fertilizers in due time to increase public confidence in the safety of the company’s operations and products.
For more information on Products and services meeting sustainable development requirements, see the section “Social responsibility”.
The company aims to reduce the negative environmental impact both in production and use of its products, as well as in transportation of goods, by implementing green initiatives in logistics.
PhosAgro Group reviews potential suppliers for compliance with environmental and social responsibility principles specified in the Company Counterparties’ Code of Conduct.
Work to ensure the environmental safety of the raw materials and materials purchased by the enterprises is carried out in the following areas:
Organization of incoming inspection of purchased products
The list of technical and industrial goods subject to incoming inspection is developed annually. For chemical products, a safety data sheet is the document containing information on its environmental and toxicological safety characteristics. Safety data sheets for chemical products are examined by a specialized expert organization and are an obligatory part of technical documentation for chemical products; they are intended to provide the consumer with reliable information on safety of industrial application, storage, transportation and disposal of chemical products, as well as their use for domestic purposes. The safety data sheet contains reliable information set out in a comprehensible and concise form, sufficient for the consumer to take the necessary measures to ensure the protection of human health and safety at the workplace, and environmental protection at all stages of the life cycle of chemical products. Quality tests are carried out by the quality control department. If necessary, the samples can be transferred to third-party accredited centers with an application for testing according to indicators included in the center’s scope of accreditation.
Specifying requirements to suppliers
Request for confirmation of product quality by means of providing a safety data sheet, conclusions of quality control departments, quality management system certificates ISO 9001:2015 (Technical Regulations ЕТС, MSDS);
Requirement for the use of materials and equipment that meet the Russian standards (norms, rules) in the terms of quality, have a manufacturer’s certificate and are approved for the use on the territory of the Russian Federation;
The requirement to comply with the rules for storage and transportation of goods by road and by rail, embodied in the relevant regulations.
Organization of additional checks
Additional checks are organized in case when the contract tendered provides for such a necessity. The Group’s specialists carry out an appropriate expert evaluation, which may include a request for confirmation that potential contractors have the necessary production facilities and technologies, the relevant qualifications of specialists, licenses, certificates, inter alia in the field of ISO, conclusions of technical audits. The responsible representative of the management on the environmental management system gives an opinion on the acceptable option for making a decision from the environmental safety point of view.
In order to apply the principles of environmental responsibility in practice, PhosAgro has developed and implemented:
Counterparty Code of Conduct containing key environmental, governance and social requirements for suppliers and contractors, including human rights and modern slavery.
System of ESG assessment of contractors that contains more than 60 criteria for assessing ESG aspects of a supplier’s (contractor’s) activities.
The assessment covered more than 50% of the total number of counterparties in 2021, and we plan to increase this share in the future. More information available in the presentation “ESG Supplier and Contractor Assessment System” and the 2022 Integrated Report
Implemented in 2021:
Automated generation and regular update of ESG ratings of suppliers and contractors. Covered more than 50% of suppliers.
Integration of the rating into contractor selection criteria system.
Updated Supplier audit procedure to include ESG requirements.
Updated contracts to include reference to the Counterparty Code of Conduct.
Considered the feasibility of establishing indicators related to the proportion of suppliers and contractors that have passed ESG assessment, as well as the average ESG rating of suppliers and contractors, as targets for the Procurement Directorate.
Issues of environmental protection and efficient use of the Company’s resources, including those related to climatic aspects of operation, are the Company’s strategic priorities. UN Sustainable Development Goal 13 Climate action is one the basic for the Company; it is integrated in the strategy and current activities of PhosAgro. Particular emphasize is currently put on issues associated with greenhouse gas (GHG) emissions and energy efficiency.
In 2019, the Company for the first time prepared a report on its activities in the climate sector for 2018 in the online “Carbon Disclosure Project” (CDP) response system, the Program to reduce greenhouse gas emissions based on the results of which it received a “C” rating. In 2021, the Company improved its rating to “B”.
PhosAgro’s Climate Strategy was developed in 2020 and approved by the Company’s Board of Directors. It provides an analysis of climate scenarios in line with the Task Force on Climate related Financial Disclosures (TCFD), identifies climate risks and opportunities, sets scientifically verified targets for GHG emissions, and outlines measures to achieve them — a low carbon transition plan.
PhosAgro priorities in implementing the Climatic Strategy:
GHG emission reduction by 2028 by 14% against 2018.
Expansion of area of climatically responsible business in Russia and on a global scale as a result of responsible selection of suppliers.
Decrease in climatic risks of production and business processes, leveraging on appearing climatic opportunities for expansion and strengthening of the business.
Increasing the Company’s openness and transparency, also through broadening interaction with stakeholders and international platforms with a view to promote the climatic agenda.
Integration of climatic issues in all internal management and decision-making processes in the Company.
For more information on climate change and greenhouse gas emissions management, see the 2020 TCFD report.
Responsibility for reviewing and resolving issues related to climate change is vested in the Health, Safety and Environment Committee headed by the PhosAgro Board of Directors Member and Executive Director. Climatic functions of the Committee include monitoring of greenhouse gas emissions, development and accomplishment of GHG emission reduction projects, including initiatives on improvement of energy efficiency. Analysis of the climate policy context, best practices in terms of climate improvement activities, requirements of regulators, ESG-rating agencies assessments, investors and other stakeholders’ expectations, climate information disclosure is authorized to the Sustainable Development Committee.
Dynamics of GHG gross direct (scope 1) and indirect energy (scope 2) emissions by PhosAgro, tCO2 eq
Distribution of GHG gross direct (scope 1) and indirect energy (scope 2) emissions by PhosAgro branches for 2021, ktCO2 eq
Dynamics of relative GHG direct emissions, scope 1
PhosAgro assigns necessary resources for compliance with the provisions of applicable law and other regulations, such as the adopted Federal Law On Energy Saving and Energy Efficiency Improvement and Amendments to Certain Legal Acts of the Russian Federation dated November 23, 2009 No.
Energy efficiency Program
The Sustainable Development Committee places great emphasis on the synergy of sustainability aspects. For example, the amount of greenhouse gas emissions in Scope 2 is closely related to energy efficiency.
That is why in August 2020 the Energy Efficiency Program was approved, which combined the future and already implemented projects in the area of energy saving, reduction of energy consumption and energy losses, making it possible to provide the company with 39.8% in 2020 and 40.3% in 2021 of the electricity, generated including through the use of secondary steam. In 2022, it is possible to forecast an increase in the share of our own electricity due to the planned commissioning of the Volkhov Utilization CHPP (34 MW).
In 2021, PhosAgro Group completed the commissioning of a complex of two solar power plants at the Izumrud health resort complex in Balakovo. The first 25 kW solar power plant was installed on the roof of the treatment block of the corporate health resort in December 2020. The second stage of the complex on top of the hotel building of Izumrud health resort was put into operation in summer 2021. As a result, the total capacity of the system is 40 kW. In addition, in 2022 it is planned to test the technology amid the work environment of the Balakovo chemical complex of JSC Apatit in order to study the possibility of replicating the applied solution in the conditions of an industrial enterprise.
The waste management system is a part of PhosAgro Group’s comprehensive environmental management system.
The company pays significant attention to problem of waste generation reduction and increasing the waste recycling share. As a target indicator, the Company has set a value of 40% for the share of 1 to 4 class waste utilization and neutralization.
Share of waste (classes
Specific waste generation, tonne/tonne:
Action taken to achieve waste management targets:
At the Cherepovets production complex, technical upgrading of aluminum fluoride production is underway with an increase in capacity up to 70 thousand tons per year. As a result, the following environmental effects will be achieved: complete use of fluorine extracted at apatite concentrate processing, reduction of lime consumption at effluents neutralization, reduction of fluorine-containing waste generation and disposal.
Enhanced ore processing mechanisms
PhosAgro and the Kola Science Centre of the Russian Academy of Sciences have signed a long-term cooperation agreement to implement a project for improving the processing of hard-to-process apatite-nepheline ores. The agreement prioritises joint projects focused on novel production technologies. As part of the initiative, KSC RAS researchers will study key industrial ores, identify optimal mineral liberation and selective flotation modes, conduct technological and mineralogical 3D mapping of ore reserves, as well as select and develop efficient and ecofriendly flotation reagents.
Promotion of phosphogypsum
Our project to promote phosphogypsum as a chemical ameliorant agent in agriculture first saw light in February 2021. Its initial aim was to reduce the accumulation of phosphogypsum at dump sites by promoting its use on saline soils as a conditioner and source of sulphur, phosphorus and micronutrients. To this end, we established a preparation and loading hub for bulk phosphogypsum and remodelled a railway to ensure its supply to farmers in the Moscow, Tambov, Voronezh, Lipetsk, Penza, Ulyanovsk, Samara, Saratov, and Volgograd regions. In November 2021, we made a decision to merge all our phosphogypsum-related operations into one project.
Project goals by 2026:
A data analysis and target market review has identified eight focus areas for selling phosogypsum. Currently, we can cover two of them:
In 2022, PhosAgro Group seeks to sell around
This year, we look to achieve progress in the remaining six areas as well, with R&D, state environmental expert evaluation, pilot tests, and the drafting of a relevant internal standard, specifications, and regulatory and technical documents all planned for 2022. We expect that these steps will enable us to significantly expand our phosphogypsum market reach.
Total sales of phosphogypsum, kt
* of which 41 kt was sold for agricultural purposes
The safe operation of tailings dams, which are special hydraulic engineering facilities designed for storage or burial of mineral processing waste, is of particular importance to the Company.
In accordance with declarations on the safety of hydraulic engineering structures approved in 2018 by the Federal Environmental, Industrial and Nuclear Supervision Service of the Russian Federation, the safety level of the hydraulic structures used for the Company’s tailings is rated as normal (the highest), which means:
that the structures comply with the design, applicable standards and regulations and meet safety requirements (for example, refer to the emergency response plan for apatite-nepheline processing plant No. 2 and the emergency response plan for apatite-nepheline processing plant No. 3);
the criteria used to measure the level of safety are within the maximum permissible values for the operable condition of structures and foundations;
operation is carried out without violations of applicable laws, standards and rules;
instructions from state oversight and monitoring bodies are fulfilled.
In the absence of reporting standards for the safety of hydraulic structures, PhosAgro actively cooperates with financial institutions that adhere to the principles of responsible investment and also discloses this data.
The main principles of the Company’s emission management system are:
Compliance with the requirements of national legislation in the areas of air quality management;
Ensuring quality of air at the boundaries of buffer zones near production facilities;
Facility upgrade, introduction of new processes using the best available technologies.
PhosAgro’s strategic goal in this area is to reduce specific emissions by 23,7% as compared to 2018.
Specific emissions, kg\t:
PhosAgro participates in the “Clean Air” federal project as part of the national “Ecology” project.
The Ministry of Natural Resources and Environment of the Russian Federation, the Federal Service for Supervision of Natural Resources, the Vologda Region Government, and PJSC PhosAgro signed a quadripartite Cooperation Agreement as part of the federal project implementation.
The project aims to drastically reduce air pollution in major industrial centers, including at least 20 percent emissions reduction in the most polluted cities.
RUB >1 bn
invested under the Clean Air initiative in 2021
Upgraded mineral fertilisers production process system No. 3 in building 2.70, capital investments amounted to RUB 777 mln.
Upgraded mineral fertilisers production minor absorption unit at buildings 7.00 and 7.01, capital investments amounted to RUB 311 mln.
Implementation of the Comprehensive Plan to Reduce Pollutant Emissions and the Programme to Optimise Water Use During Production Upgrade in
In 2019, the Company made a commitment to contribute to the achievement of UN sustainable development goals. SDG 6 Clean Water & Sanitation is an important reference point for us when we plan our activities, increase operational efficiency, and implement lean principles.
We regularly monitor the level of water stress in the regions of the Company’s presence. According to assessment by the Water Risk Atlas and Water Risk Filter, all our production facilities are located in regions with low and medium water stress. However, access to clean water poses a significant challenge on a worldwide scale.
Water management at PhosAgro
Water management is closely related to the specific features of production processes and environmental protection issues. Monitoring of water balance at all stages of the production cycle, from water intake through consumption and use in technological processes to multi-stage treatment and return of water to the environment, is one of the key control elements.
Analysis of the Company water use indicators dynamics data indicates a steady trend in reduction of specific water intake and wastewater and pollutants discharge indicators.
Specific wastewater discharges, m3/t:
Specific water withdrawal, m3/t:
Specific discharge of contaminants, kg/t:
The Company is committed to preserving the sustainability of natural ecosystems and mitigating the impact on water bodies. We believe in transparency and report all water flows at the facilities to stakeholders in Integrated Report. We also consolidate indicators for previous periods in a databook. Since 2021, the Company has been participating in CDP Water rating.
Water withdrawal data analysis shows that the Kirovsk Branch of the Company, where mining operations are conducted, accounts for over 3/4 of all the Company’s water intake. Most of the water withdrawn at the Kirovsk branch is mining, collector and drainage water, being natural water coming from the adjacent territories. The Company diverts this water outside the production facilities without using it.
Significant amounts of mining, collector and drainage water are formed during the spring snowmelt, which largely affects water withdrawal rates: in snowy years (2020), the amount of withdrawn water increases and in less snowy years (2019) decreases, accordingly. For water withdrawal and wastewater discharge details see the databook and the 2022 Annual Report.
We have calculated specific water withdrawal and wastewater discharge rates per ton of products and semi-finished products and per million US dollars of revenue with and without mining, collector and drainage water.
The table below shows wastewater discharge rates calculated with and without mining, collector and drainage water.
Mining, collector and drainage water is not used in production processes, and are discharged off-site in the same amount. However, they can significantly affect specific water consumption rates.
The company’s water consumption (according to GRI 303-5) requirements) for production purposes remains stable in 2019 and 2020. When considered in conjunction with the annual production growth, this reflects the efficiency of production management processes, as well as careful treatment of water as a valuable resource.
The efficiency of water management processes is measured by the amount of water in closed technological water supply cycles. Two of the Company’s sites are completely closed-cycle: the Balakovo and Volkhov branches; these production facilities do not discharge wastewater into surface water bodies, and the water withdrawn from the environment is reused multiple times. The table below shows the ratio of closed-cycle processes in the Company as a whole in
2020-2025 Water Strategy
In 2020, the Company has developed a Water Strategy to improve water management efficiency. Its main objectives are as follows:
Improving the efficiency of water use and setting reasonable targets for the intake, discharge of wastewater and water consumption;
Fostering the Company's culture of responsible consumption of water resources and respect for water bodies as an integral part of the environment. Creating a positive image for stakeholders: The company responsibly approaches the consumption of water resources and systematically reduces the impact on natural ecosystems;
Improving the quality of reporting, transparency of the Company's activities and creating value in interaction with stakeholders (consumers, investors, NGOs and etc.);
The Water Strategy contains a list of projects for each branch, including the following investment programs:
“Water efficiency improvement at the Cherepovets facility of JSC Apatit in the course of production upgrade in 2020-2025”;
“Reduction of discharge volumes and improvement of wastewater quality at the Kirovsk Branch of JSC Apatit in 2019 and beyond”;
“Creation of a closed water circulation system at the Volkhov Branch of JSC Apatit” (elimination of wastewater discharge into the Volkhov River).
These activities are consolidated in a single schedule for their approval in accordance with the procedures adopted in the Company. This schedule comprises an integral part of the Water Strategy.
In early 2021, the Company’s Environmental Policy was amended to include PhosAgro’s obligations to preserve biodiversity, natural landscapes, and ecosystems in the regions where it operates, and to prohibit the activities endangering biodiversity, natural landscapes, and ecosystems in the Company’s project areas.
For several years, the Company has been working to preserve biodiversity and reproduce biological resources. In 2020, the Company started developing comprehensive programs for preservation of biodiversity, involving research organizations in assessment of condition and environmental remediation in the regions of presence. The main areas of work related to preservation of biodiversity take into account the indicator species of steady-state condition of ecosystems. In 2021, development of the aforementioned programs has been completed in Cherepovets and Volkhov production sites. More detailed information is available in the presentation
We take care of our employees and implement significant educational, medical, youth-related and professional sports
We are building an effective and transparent governance structure based on equality of shareholders, responsibility and accountability of each governance body, leadership and independence of the Board of Directors, and a corporate culture that does not tolerate any form of corruption or discrimination