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PhosAgro PJSC: PhosAgro’s Board of Directors Notes Significant Progress in Implementing the Company’s Climate Strategy

PhosAgro PJSC (PHOR)
PhosAgro PJSC: PhosAgro’s Board of Directors Notes Significant Progress in Implementing the Company’s Climate Strategy
03-Nov-2022 / 20:00 MSK
Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

 

 

PhosAgro’s Board of Directors Notes Significant Progress in Implementing the Company’s Climate Strategy

 

Moscow – The Board of Directors of PhosAgro, one of the world’s leading producers of phosphate-based fertilizers, noted, at its meeting today, significant progress in the implementation of the Company’s climate strategy.

In his report on implementation of the Company’s climate strategy in 2022, the general director of JSC Apatit (PhosAgro Group), Alexander Gilgenberg, noted steady improvement in the energy efficiency of production sites. Specific emissions of Scope 1 greenhouse gases were reduced by 16% during the period from 2018 to 2021, while gross emissions during this period decreased by 4% despite a continuous increase in production.

The company takes into account its impact on the atmosphere across all three scopes, including the impact of external suppliers. A comprehensive energy-efficiency programme is being implemented at production facilities – for example, frequency converters are used, which decrease the power consumed by electric motors and reduce energy losses during engine start-up.

The company’s in-house power generation facilities at its chemical plants are operated largely by recovering the exhaust steam from its sulphuric acid plants. In Cherepovets, the share of that steam is 46%, and in Balakovo it is 97.5%. In Volkhov, a similar power generation facility is in pilot operation as part of an investment project for a new plant. This facility will meet 95% of the plant’s electricity needs.

A project is being carried out on the use of renewable energy sources at production and social facilities. PhosAgro is actively increasing the percentage of green energy that it consumes; last year, hydroelectric power was used to produce about 20% of the output of the mining and beneficiation plant.

In addition, in 2021, PhosAgro, in cooperation with the Government of the Vologda region and the Russian Academy of Sciences, launched its own project to create a carbon farm, an area designed to monitor and absorb greenhouse gases. In October 2022, the first part of the carbon sequestration site in the Vologda region was set up on an area covering 100 hectares, where about 110 thousand coniferous and deciduous trees were planted. Using that site as the basis, standard sequestration solutions will be developed.

As Viktor Cherepov, Chairman of PhosAgro’s Board of Directors, stressed, the Company continues to invest in modernising its production facilities and incorporating the best available technologies, while continuing to meet its commitments on social responsibility and environmental protection.

“PhosAgro’s results in reducing greenhouse gases and incorporating energy-efficient technologies into the production process confirm the Company’s commitment to both its own climate strategy and the goals of a low-carbon transition in accordance with the UN’s Paris Agreement.

“As a member of the UN Global Compact with LEAD status, PhosAgro will continue to set an example of sustainable development by combining excellent production and financial performance with a responsible approach to environmental protection, human and labour rights protection, and the fight against corruption,” said Vicktor Cherepov.

The Chairman of the Board of Directors thanked the Company’s personnel for their good work and professionalism, which have served as the key to maintaining high production rates: “Based on our current production dynamics, we can increase our production guidance for the year. We expect production to exceed 10.9 million tonnes in 2022, an increase of nearly 5% year-on-year. Our excellent operating results have also enabled us to incrementally increase our funding for social and charitable programmes, to which PhosAgro allocates more than RUB 5 billion annually.”

The Board of Directors also took under advisement reports from the chairs of the Board committees on the activities of the committees in 3Q 2022. The report on the work of the Corporate Secretary during the period from July 2021 to June 2022 was approved, and the Board decided to conduct an external evaluation of its performance. The Board also heard a report on the Company’s work with investors in 2022 and approved the Tax Strategy for the Company and its subsidiaries.

Information on the results of the monitoring of the Company’s key risk management in 3Q 2022 was taken under advisement, as was information on the main aspects involved in providing cybersecurity for PhosAgro and its subsidiaries in 2022. The Board also heard a report on the Company’s work on international projects in 2022 and on occupational injuries occurring at PhosAgro Group enterprises.

Information was reviewed on the Company’s financial results in 9M 2022, including its interim IFRS consolidated financial statements. The Board of Directors recommended that an Extraordinary General Meeting of Shareholders decide on the payout of dividends at a rate of RUB 318 per ordinary share.

The Extraordinary General Meeting of Shareholders that will consider the issue will be held by absentee voting on 8 December 2022. The Board of Directors recommended 19 December 2022 as the dividend record date.

The Board of Directors also decided to approve new versions of the Company’s Information Policy Regulation and its Insider Information Regulation. In addition, information on the Company’s compliance with laws on protecting and handling insider information was taken under advisement.

About the Company

PhosAgro (www.phosagro.ru) is a vertically integrated Russian company and one of the world’s leading producers of mineral phosphorous fertilizers and of high-grade apatite concentrate grading 39% P2O5 and higher. PhosAgro’s fertilizers are highly effective, ensuring the improved quality of agricultural produce and avoiding soil contamination by heavy metals.

PhosAgro Group is the largest manufacturer of phosphate-based fertilisers in Europe (by total capacity of NAP/MAP/NP/NPK/NPS production), the largest producer of phosphite grading 39% P2O5  in the world and one of the leading global producers of ammonium and diammonium phosphate, one of Europe’s leading and the only producer in Russia of monocalcium phosphate feed, and the only producer in Russia of nepheline concentrate.

The company’s main products, including phosphite, over 50 types of fertilizer, phosphate feed, ammonium, and sodium tripolyphosphate, are used in over 102 countries on all inhabited continents. Our priority markets, besides Russia and the CIS, are Latin America, Europe, and Asia.

The company's shares are listed on the Moscow Exchange and its Global Depositary Receipts (GDRs) are listed on the London Stock Exchange (MOEX and LSE ticker: PHOR).

More information about PhosAgro PJSC can be found on our site: www.phosagro.ru 


ISIN:

US71922G2093

Category Code:

MSCU

TIDM:

PHOR

LEI Code:

25340053KRUNNYUWF472

Sequence No.:

198801

EQS News ID:

1478997


 

End of Announcement

EQS News Service

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