Letter from Irina Bokova, Chair of the Board of Directors’ Sustainable Development Committee

GRI: 102-14

Taking global responsibility is an absolute necessity for any global company. It is not just a buzzword. And it is more than just a statement for us, as these principles are part and parcel of our development strategy and current business activities. We have demonstrated our commitment by establishing the Board of Directors’ Sustainable Development Committee, which I have the honour to chair. We are analysing the UN Sustainable Development Goals (SDGs) and are set to monitor their implementation going forward.

It is obvious that SDGs are global in nature and are relevant to all countries, people, institutions, companies, etc. It is also clear that they receive attention from investors and consumers of our products, as people want to enjoy a clean environment and expect companies to supply safe foods and products.

PhosAgro is fully aware of this and strongly supports the sustainability principles, also as an active member of the UN Global Compact, the international initiative to promote socially responsible and sustainable policies in business.

Out of 17 SDGs, we have selected ten and work to support their achievement, while also focusing on 21 targets set by these goals.

PhosAgro’s inclusion in the list of 36 Global Compact LEAD companies, coupled with increased investments from ESG funds, attest to efficient SDG integration into the Company’s operations and to the transparency of our sustainability disclosures.

The way we treat ESG principles is becoming increasingly consistent and structured, as this topic is of interest not only to our investors, who need to understand our strategy and aspirations, but also to a wide range of other stakeholders. PhosAgro is a global-scale company and a worldwide supplier. Joining efforts with our partners, we strive to achieve these goals.

Our sustainability priorities

Sustained growth to ensure high productivity and efficiency in every single aspect of our operations
Maintaining strict health and safety requirements, and attaining zero injuries through a world-class safety culture
Mitigating environmental impact associated with the Company’s production activities
Maintaining reliable partnerships with local communities across the Company’s footprint and promoting dialogue with all stakeholders, taking their interests into account in decision-making processes
Contributing to the UN Sustainable Development Goals

Focus areas

GRI: 102-16

Economic	Environmental	Social
Paying taxes and other charges to regional and federal governments Offering economic opportunities for local suppliers and encouraging the development of local partners Maintaining financial sustainability at all times Managing business in accordance with legal requirements and business integrity principles	Reducing waste, emissions and pollutant discharges and resource usage on a per-unit basis by investing in new and more efficient technologies Complying with social responsibility principles and maintaining a meaningful dialogue with local stakeholders about our environmental impact Preserving natural eco-systems and nature sites across the Company’s geographies, ensuring sustainable use of natural resources, and implementing programmes to restore environmental capacity.	Assisting regional and local authorities in creating modern social infrastructure across our footprint Developing and implementing projects for children and youth Supporting vulnerable groups Ensuring stable employment and creating a safe working environment Creating opportunities for full-fledged work, training and becoming part of a professional team Protecting human rights

Corporate documents governing sustainable development-related activities

PhosAgro has a wide range of internal standards and policies, which govern its approach to sustainable development management and provide the necessary governance to ensure the Company’s sustainable development.

Health, safety and environment	HR and economic stability	Stakeholder and local community engagement
Quality, environmental and industrial safety policy Environmental safety policy Quality management system standard concerning production and consumption waste management Occupational health and safety management system certificate OHSAS 18001 Quality management system certificates ISO 9001 and 14001	Hotline regulations Code of Ethics Anti-fraud and anti-corruption policy Personnel management policy Modern Slavery Act Transparency statement	Charity policy Government relations policy Procurement Policy