Climate Change Data

Environmental Metrics

ESG Focus Areas

• Food security
• Safety
• Environmental stewardship
• Social responsibility
• Sustainable development
• Climate action
• Human rights
• Governance

Environmental Achievements

• Reduced water discharged by 9% year-over-year
• Reduced waste generated by 12% year-over-year
• More than 60% of production facilities are ISO 14001 certified
• Launched a carbon dioxide capture and liquid carbon dioxide production unit at NAK Azot, reducing GHG emissions by more than 32,000 tons of CO2 per year
• Launched a 1 MW solar power plant at Lifosa, providing an additional 1 GWh of electricity per year
• Released about 76,000 juvenile whitefish into water bodies near Company’s facilities
• Planted over 150,000 forest trees

Social Achievements

• Implemented the “Health Days” program at NAK Azot
• Launched EuroChem Sport mobile app
• Continued EuroChem students’ program
• 31% of staff were female
• Spent over US$5m on charity projects
• Provided training for Belgian firefighters on handling fertilizer incidents
• Launched a Young Professionals development program
• Training duration per employee was 69 hours
• 80% of engineering vacancies were filled

Governance Achievements

• Increased transparency of incident records by quadrupling
• Trained more than 2,500 managers in industrial safety
• Conducted more than 8,000 behavioral safety audits
• Increased employee engagement in creating safe production processes
• Strengthened compliance in sanctions regulation and anti-corruption legislation
• Obtained confirmations regarding its non-sanctioned status from competent authorities in Belgium, Germany, Switzerland, the UK and the US
• Conducted an independent sanctions compliance audit

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical situation and sanctions
• Logistical restrictions on ammonia exports from Russia
• Reduced output at European plants due to raw material supply disruptions and energy crisis
• Difficulties with raw materials supplies and sanction clearance at EuroChem Antwerpen
• Production halted at Lifosa due to lack of critical raw materials
• Elevated price levels on global markets decreasing the buying power of farmers
• Difficulties with opening letters of credit/issuing guarantees in Africa
• Increased overdue accounts receivable
• Growing ruble appreciation and reduced hedging opportunities
• Sanction risks and difficulties in bond coupon payments
• Shortage of skilled labor
• Climate change
• Health, safety and environmental risks
• Market risks (intense price competition)
• Regulatory risks (changes in government policies)
• Cyber risks (increased cyber attacks)
• Mining-related risks (geotechnical issues)
• Production risks (equipment failures)
• Health, safety, environmental and security risks

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials and equipment
• Redirected some export volumes to Russian buyers
• Prioritized sales of own products
• Strengthened sales and distribution platform (new trading hub in UAE, acquisition of Fertilizantes Heringer)
• Revised governance structure and standardized operations in South America
• Implemented a stricter credit policy
• Maintained adequate liquidity through careful planning and access to credit lines
• Implemented a well-balanced portfolio of fixed and floating rate loans
• Improved energy efficiency and reduced GHG emissions
• Invested in water conservation and efficiency measures
• Implemented best practices in industrial safety, maintenance and overhaul
• Comprehensive insurance policies
• ‘Zero harm’ goals and investments in safety measures
• Root-cause analysis of accidents and incidents
• Strong Group IT capabilities and infrastructure for cybersecurity
• Backfill work to prevent soil subsidence
• Monitoring of chamber and pillar system using deformation sensors
• Regular behavioral safety audits

Supply Chain Management

Responsible Procurement

• Provided suppliers with information on sanctions compliance and adjusted payment infrastructure

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, ISO 26000, GRI Standards

Certifications: ISO 14001 (11 facilities), ISO 45001

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)

Fertilizers play an essential role in food supply; water conservation and efficiency measures; energy-efficient technologies; GHG emission reduction; biodiversity conservation; land reclamation

Sustainable Products & Innovation

• ENTEC® fertilizers with nitrification inhibitors
• Next-generation fertilizer technologies designed to boost nutrient uptake and reduce environmental footprint
• Granulated MOP (gMOP)

Environmental Metrics

ESG Focus Areas

• Food security
• Safety
• Environmental stewardship
• Employee well-being
• Community engagement
• Climate action
• Responsible procurement
• Compliance

Environmental Achievements

• Reduced air emissions by 5% compared to 2022
• Over 60% of production assets are ISO 14001 certified
• Launched CO2 capture and liquid CO2 production unit at Novomoskovskiy Azot
• Recovered more than 384 hectares of green areas in Brazil, planting more than 135 thousand tree seedlings.
• Released about 130,000 juvenile whitefish in waterbodies near Company’s facilities.

Social Achievements

• US$0.9bn social investments, including H&S, employees, and community spendings
• Continued investment in employee health and safety practices, development programs, and social infrastructure
• Opened a new office hub in Sao Paulo, Brazil
• Donated around 300 pieces of equipment and materials to a municipal hospital in Brazil
• Offered free technical-level qualification courses in Chemical Process Operations in Brazil in partnership with Senai and municipal governments

Governance Achievements

• 60% of directors are independent
• 3 anti-corruption initiatives started in 2023
• Improved credit risk management tools and tightened credit policy
• Optimized the process of automated counterparty verification and transaction approvals
• Introduced a procedure for the management of conflicts of interest

Climate Goals & Targets

Environmental Challenges

• Geopolitical tensions impacting operational and payment infrastructure
• High competition for qualified personnel
• Reduced CAN consumption in Europe
• Countervailing duties and restrictive measures in several markets
• Downward price trend in all NPK segments
• Lower iron content in processed ore
• Logistical restrictions on ammonia export shipments
• Unresolved raw material supply issues at Lifosa plant
• Difficulties in opening letters of credit and issuing guarantees in Africa
• High volatility of the ruble and ongoing restrictions on hedging
• Increased cyber attacks and phishing attempts

Mitigation Strategies

• Optimized supply chains
• Redirected CAN supply to Russia, Brazil, and Africa
• Optimized NPK product line to ensure full production utilization at Antwerp plant
• Redirected MAP production to Brazil
• Sent products to external warehouses in Southeast Asia
• Adapted policies and procedures to the new economic context
• Improved credit risk management tools and tightened credit policy
• Minimized logistical risks and stabilized new sales and supply channels
• Implemented measures to ensure business continuity and safety
• Established a separate Information Security Department
• Upgraded IT infrastructure and educated users on information security issues
• Implemented ‘zero harm’ goals and invested in safety measures
• Conducted in-depth risk communications with employees
• Developed advanced mineral fertilizers to reduce GHG emissions
• Captured CO2 for further use
• Optimized energy consumption
• Implemented a procedure for the management of conflicts of interest
• Introduced a procedure for exchanging gifts and signs of business hospitality

Supply Chain Management

Responsible Procurement

• Sanctions compliance
• Payment infrastructure and related security
• Inclusive procurement, local hiring and support for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Transition Risks

• Changes in market preferences, legislation, and technology

Opportunities

• Development of energy-efficient products
• CO2 capture and utilization

Reporting Standards

Frameworks Used: UN Global Compact, Social Charter of Russian Business, ISO 26000, GRI Standards

Certifications: ISO 14001 (11 companies), ISO 45001

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 6 (Clean Water and Sanitation)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)
• Goal 16 (Peace, Justice and Strong Institutions)
• Goal 17 (Partnerships for the Goals)

EuroChem's contribution to global food security, investments in healthcare and education, water conservation efforts, sustainable production practices, climate action initiatives, community development projects, and collaborations with various stakeholders.

Sustainable Products & Innovation

• ENTEC® fertilizers with nitrification inhibitors
• UTEC® product
• Avigo fertilizer technology