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

PhosAgro PAOAnnouncement

03/11/2022 17:00

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   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.

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    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 ( 1 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:
    2 www.phosagro.ru 

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   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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