KSG Agro S.A.

Climate Impact & Sustainability Data (2023)

Adheres to environmental laws, minimizing energy and resource use, preventing accidents and pollution, encouraging recycling and reuse, reducing greenhouse gas emissions. No significant violations reported by government agencies in 2023.
Uses only certified fertilizers and plant protecting agents.

Increased wages twofold during wartime, paid double advance, provided free lunches, food rations (including 3 kilos of pork), rented apartments, opened a private kindergarten, equipped three bomb shelters, organized protection with local defense forces, delivered three tons of humanitarian medical cargo from Germany to Ukraine (over 300 thousand euros worth of orthopedic materials and prostheses).
Implemented various social programs including food subsidies, assistance to veterans and their families, and support for local business development.
Developed a social store selling meat at almost cost price in Nyva Trudova village.
Supported local holidays, provided assistance to hospitals, procured new equipment and helped with capital repairs at hospitals, delivered beds and prosthetics for wounded soldiers.

Observes corporate governance rules of the Warsaw Stock Exchange.
Maintains an effective internal control structure with an ongoing internal audit program.
Regularly reviews staff and diversity policies and actively monitors outcomes of social programs.

Medium-term Goals:

Expand the Group’s activity in the European Union, with a target to have the majority of the Group’s assets and revenues in the EU within the next 3 to 5 years.

Russia's invasion of Ukraine and its impact on the security of the Group’s assets and its long-lasting effects on Ukrainian economy.
Concerns for general security and biosecurity of the pig herd.
Changes to the Group's strategy and overall market conditions.
Destruction of the Kakhovka Dam affecting the overall supply of fresh water.
Potential for violating financial covenants of loan agreements.

Distributing the pig herd across several locations to mitigate risks.
Searching for alternative water sources and investing in backup technical solutions.
Retooling the production process to focus on raising piglets for sale to other producers.
Renegotiating credit terms with TASCOMBANK and refinancing some loans by issuing corporate bonds.
Obtaining a formal letter from TASCOMBANK waiving its rights to impose sanctions due to covenant breach.

Purchases certified fertilizers and plant protecting agents from leading world producers.

Frameworks Used: Global Reporting Initiative (GRI)