Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Protection
• HR Development
• Social Investment
• Regional Development
• Stakeholder Engagement

Environmental Achievements

• Reduced solid waste emissions from 1.20 thousand tonnes in 2011 to 1.08 thousand tonnes in 2012.
• Reduced carbon monoxide emissions from 0.77 thousand tonnes in 2011 to 1.14 thousand tonnes in 2012 (increase attributed to inventory and new emission sources).

Social Achievements

• Employee turnover rate of 9.21% in 2012, in line with industry average.
• 91% of Uralkali employees and 100% of Group employees covered by collective bargaining agreements.
• Implemented an Anti-Fraud Programme to prevent and mitigate fraud and corruption.

Governance Achievements

• Established a Corporate Social Responsibility Committee of the Board of Directors and a Health, Safety, Environment and Corporate Social Responsibility Committee under the Chief Executive Officer.
• Implemented a new edition of Uralkali’s Code of Corporate Culture, including business ethics rules.

Climate Goals & Targets

Environmental Challenges

• Potential risks related to health, safety, and the environment identified through risk management processes.
• Need to improve the system for gathering non-financial information for more comprehensive disclosure.
• Settled a lawsuit in the USA related to accusations of cartel activity, resulting in a payment of $12,750,000.

Mitigation Strategies

• Developed and implemented risk management action plans.
• Engaged audit firms to assess and review sustainability information.
• Implemented an Anti-Fraud Programme with a focus on Procurement.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Testing new products made by domestic manufacturers to reduce imports and support local manufacturers.
• Requiring a local manufacturing base as a pre-qualification criterion for some tenders.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3.1 Sustainability Reporting Guidelines, Mining and Metals Sector Supplement

Certifications: Null

Third-party Assurance: Independent auditor under the ISAE 3000 standard

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic sustainability
• Employees
• Environmental impact
• Stakeholder impact

Environmental Achievements

• Reduced water intake for industrial needs by 0.8% compared to 2013, amounting to 40.56 million m³
• Reduced waste disposal at the landfill by 7% compared to 2013, amounting to 38.81 thousand tonnes
• Conserved 60,137 million kWh of electricity, 7,023 tonnes of fuel and 2,865 thousand m³ of water through energy-saving measures

Social Achievements

• Continued support for the resettlement programme in Berezniki
• Continued financial support to various social projects in Berezniki and Solikamsk, amounting to about US$28.4 million
• Decreased lost time injury frequency rate (LTIFR) by 8% compared to 2013
• Decreased lost days rate (LDR) across the Group by 20%

Governance Achievements

• Extended Antitrust Policy to include international trading offices
• Organized antitrust compliance training for employees
• Joined the Anti-Corruption Charter of the Russian Business
• Introduced an ethical representation working group

Climate Goals & Targets

Environmental Challenges

• Accident at Solikamsk-2 mine in November 2014, affecting output in the fourth quarter
• Macroeconomic and geopolitical challenges impacting financial performance
• Geological complexity of potash mining
• Potential for flooding in potash mines

Mitigation Strategies

• Implemented emergency plan at Solikamsk-2, resulting in no injuries
• Revised capacity development programme for 2015-2020
• Established round-the-clock comprehensive monitoring at Solikamsk-2
• Partnered with expert organizations to minimize consequences of flooding
• Implemented various programmes to increase productivity and reduce operating expenditures
• Implemented comprehensive geological monitoring at minefields
• Engaged leading international and Russian experts to advise on geological safety

Supply Chain Management

Responsible Procurement

• Procurement standards outlined in all tenders
• Rigorous due diligence of all partners

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Global Reporting Initiative sustainability reporting standard, The Mining and Metals Sector Disclosures

Third-party Assurance: PricewaterhouseCoopers Audit

Awards & Recognition

• CorpComms Awards 2014: Best annual report – private sector
• 2014 IR Society Best Practice Awards: Best digital reporting – International (nominee)
• The 17th Annual Report Competition organised by the Moscow Exchange: Best annual report from the industrial sector of the economy
• The 17th Annual Federal Competition for Annual Reports and Corporate Sites: Best design and printing in non-financial sector (nominee)

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Employees
• Environmental Impact
• Stakeholder Impact

Environmental Achievements

• Invested over 2.230 billion roubles in environmental activities, which is 53% more than in 2015
• Conserved 945 MWh of electricity, 6,715 tonnes of oil equivalent and 1.755 million m3 of water
• Reduced C02-equivalent gas emissions by 1.7% from 1.763 million tonnes in 2015 to 1.733 million tonnes
• Reduced pollutant emissions by 12% year-on-year, to 5,120 tonnes from 5,750 tonnes
• Increased the utilisation of halite waste and clay-salt slurries by 15% to 13.277 million tonnes in 2016 from 11.237 million tonnes in 2015
• Decreased waste disposal at landfills by 21% compared to 2015

Social Achievements

• Zero fatalities recorded at Uralkali and its subsidiaries and affiliates in 2016
• Reduced lost time injury frequency rate (LTIFR) compared to 2015
• Reduced lost days rate (LDR) by 30% in 2016 compared to 2015
• Social investments amounted to US$ 5.7 million in 2016
• Opened the Corporate University, offering over 250 educational programmes

Governance Achievements

• Increased the number of independent directors on the Board to four
• Updated Regulations on the Corporate Secretary in accordance with the updated Listing Rules of the Moscow Exchange
• Updated Regulations on the Audit Committee in line with the Listing Rules of the Moscow Exchange
• Approved the Regulations on Internal Audit in accordance with the Listing Rules of the Moscow Exchange and the provisions of the Code of Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Continuing decline in demand for potash fertilisers and increased competition in all key markets
• 30% drop in the average export potash price
• Absence of price agreements with China and India in H1 and high potash inventories at the beginning of 2016
• Accident at Solikamsk-2 mine in 2014
• Flooding of Berezniki-1 mine in 2006

Mitigation Strategies

• Optimising internal business processes and increasing the efficiency of its business model
• Implementing global best practices in corporate governance and environmental protection
• Improving occupational safety
• Modernising existing production facilities
• Implementing a comprehensive mitigation plan for the Solikamsk-2 accident
• Conducting constant monitoring of the mined-out area at Berezniki-1

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement standards outlined in all tenders
• Rigorous due diligence of all partners

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Global Reporting Initiative sustainability reporting standard, The Mining and Metals Sector Disclosures

Certifications: Null

Third-party Assurance: Deloitte & Touche CIS

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Granular potassium chloride

Awards & Recognition

• Crystal Pyramid 2016 award in the category of «Best corporate university in the strategic focus Education»
• All-Russia competition «Enterprise with highly efficient HR activities 2016» in the «Leader of socially responsible business» category
• Silver Threads 2016 corporate media competition in the category of Leading Company: The Best Corporate Media Communications System
• Moscow Exchange: Best annual report from the industrial sector of the economy, Best design and concept of an annual report, Best design and navigation of a corporate website

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Sustainable Economic Development
• Stakeholder Engagement
• Human Rights
• Climate Change
• Diversity and Equal Opportunities

Environmental Achievements

• Specific energy consumption per tonne of products decreased by 2.6% compared to 2018.
• Specific mass of direct emissions decreased by 9% year-on-year in 2019.
• USD 76.8 million allocated towards specific environmental protection initiatives.
• Received the highest rating under the Protect & Sustain certification standards of the International Fertilizer Association (IFA).

Social Achievements

• Awarded the Crystal Pyramid prize for 2019 for achievements in human capital management.
• Included in Forbes Magazine’s ranking of the best employers in Russia.
• 16,723 employees completed training under specially designed corporate programmes.
• USD 11.7 million in social investments in 2019.

Governance Achievements

• Revised and expanded the functions of the Sustainable Development Committee.
• Established a Working Group on Sustainable Development, led by the CEO.
• Developed a forward-looking sustainable development Roadmap for Uralkali.

Climate Goals & Targets

Environmental Challenges

• Three fatalities took place in 2019.
• Global potash market experienced challenges in 2019.
• COVID-19 pandemic in 2020.

Mitigation Strategies

• Thorough investigation of fatalities and introduction of enhanced safety measures.
• Implementation of environmental and social programmes.
• Introduction of preventative measures to stop the coronavirus from spreading and minimize risk to personnel and residents.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Standard for Procurement Activities
• Code of Corporate Culture
• Anti-Fraud and Corruption Programme

Climate-Related Risks & Opportunities

Physical Risks

• Industrial accidents due to natural disasters

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: OHSAS 18001, IFA Protect & Sustain

Third-party Assurance: AO Deloitte & Touche CIS

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Company's activities contribute to these goals through potash fertilizer production, employee well-being programs, water management initiatives, job creation, infrastructure development, waste reduction, and energy efficiency measures.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Most Energy-Efficient Enterprise in the Western Urals
• Crystal Pyramid Award (3 categories)
• Best IT project in Russia and CIS
• IFA Product Steward Excellence