DRIVING SUSTAINABLE
soil fertility
Integrated report 2022
contents
COMPANY PROFILE
8 Key highlights
10 Key events in 2022
12 Our mission and values
15 Business model
18 Geographical footprint
20
27 Stakeholder engagement
30 Material topics
Investment case and credit ratings
STRATEGIC REPORT
36 Chairman’s statement
40 CEO’s statement
43 Business environment
46 Market overview
51 Strategy
70 Strategic risks
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PERFORMANCE REVIEW
84 Financial performance
92 Operational performance
100 Customers and product management
112 Research and education
130 Supply chain
142 People development
168 Industrial safety
190 Environmental review
234 Contributing to local communities
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ABOUT THIS REPORT
For the interactive version
of the report, please visit our website
at: phosagro.com
Appendices
(stand-alone
document)
APPENDICES
332 The consolidated financial statements
374 Management responsibility statement
375 Independent limited assurance report
381 GRI content index
395 SASB content index
397 TCFD Recommendations
398 Glossary
400 Contacts
SHARE CAPITAL
320 Ownership structure
321 Share performance
322 Debt management
323 Analyst coverage
323 Dividend policy
326 Relationship with shareholders
and investors
329 Information disclosure
CORPORATE GOVERNANCE
254 Chairman's statement
256 Corporate governance framework
260 Corporate governance structure
267 General Meeting of Shareholders
267 Board of Directors
290 Executive bodies
292 Remuneration report
296 Corporate controls
303 Ethical practices
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About this report
GRI 2–1, 2–2, 2–3
Boundaries and standards GRI 2–5
It is our pleasure to welcome you
The Company maintains
The report was approved
with the following requirements
and the Business Reporting on
of the Group and PhosAgro’s stake
to the 2022 Integrated Annual Report
an annual reporting cycle,
by PhosAgro’s Board of Directors
and recommendations:
the SDGs action platform;
in these subsidiaries are presented
(the “Report”) of PJSC PhosAgro
with the previous report released
on 20 April 2023 (Minutes dated
•
the Bank of Russia’s Regulation
• The Social Charter of the Russian
in the Group’s IFRS consolidated
(PhosAgro). PhosAgro is a vertically
on 29 April 2022. The Report
20 April 2023).
No. 714-P dated 27 March 2020
Business sponsored by the
financial statements for 2022.
This Report complies
Sustainable Development Goals,
responsibility. The key subsidiaries
integrated Russian company and one
highlights how we integrate ESG
of the world’s leading producers
principles into everything we do.
of phosphate-based fertilizers.
The Company’s financial reporting
follows the annual cycle too.
2022 has already made history, but
the challenges it set for PhosAgro
Group and the entire mineral
fertilizer industry are still vitally
relevant. In response to them,
we strive to increase production
and ensure uninterrupted
supplies of high-grade and eco-
efficient fertilizers, which we
make in the most efficient ways
possible, both economically
and environmentally, by consistently
reducing the share of non-
renewable resources along with our
carbon footprint. The principles
of environmental and social
responsibility remain our key priority.
It is impossible to succeed alone
in preventing the global threat
of hunger and ensuring global
food security. That is why we
are doing our utmost to maintain
and develop partnerships
with Russian and international
organisations as part of the global
sustainability agenda. Together
we can achieve much more
for sustainable soil fertility.
In this Report, we did our best
to share how we contribute
to consistent and steady progress
towards these goals across
various areas of our activities.
on Disclosure of Information
Russian Union of Industrialists and
by the Issuers of Issue-Grade
Entrepreneurs.
Securities;
Among other changes, economic
environment developments
•
the Bank of Russia's Letter
The Company takes into account
led to changes in the Group
No. 06–52/2463 On Corporate
and implements global and national
structure, as described in note
Governance Code dated
best practices in sustainable
29 to the consolidated financial
10 October 2014;
development.
•
the Bank of Russia's Letter
statements, and affected a number
of elements of the consolidated
On the Disclosure in the Annual
The Company has reported
financial statements.
Report of a Public Joint-
in accordance with the GRI and SASB.
Stock Company of a Report
Appropriateness of the selected
on Compliance with the Principles
qualitative and quantitative
For more information,
see page 375
and Recommendations
of the Code of Corporate
information disclosures prepared
The boundaries of the Group
under the related GRI Standards
companies covered in this Report
Governance No. IN-06–28/102
has been assured by Joint-Stock
differ from those in consolidated
dated 27 December 2021;
Company Technologies of Trust – Audit
financial statements when it
•
the UK Corporate Governance
(Technologies of Trust – Audit JSC)
comes to specific non-financial
Code;
in accordance with the International
disclosures. To ensure compliance
•
the Bank of Russia’s Information
Standard on Assurance Engagements
with the materiality principle,
Letter on Recommendations
(ISAE) 3000 (Revised), Assurance
we determined such boundaries
on Disclosure by Joint-Stock
Engagements Other than Audits
in a way that this Report describes all
Companies of Non-Financial
or Reviews of Historical Financial
material aspects of PhosAgro Group.
Information Pertaining to Their
Information. The Auditor's Report
Activities No. IN-06–28/49 dated
and the GRI Content Index are both
The data disclosed in this Report
12 July 2021;
available in the appendices to this
includes information on:
•
the Listing Rules of the Moscow
Report.
Exchange and the London Stock
Exchange;
Financial results in the Report have
Boundary 1 – PhosAgro
and companies that are part
•
the AA 1000 and ISO 26000
been disclosed based on the IFRS
of the group to which PhosAgro
standards;
consolidated financial statements
belongs (the scope of disclosure
• CDP – Carbon Disclosure Project
of the Group for 2022 audited
in IFRS consolidated financial
standards;
by Technologies of Trust – Audit JSC
statements).
• The Value Reporting Foundation;
in accordance with the International
•
the Task Force on Climate-related
Standards on Auditing.
Financial Disclosures, TCFD;
Boundary 2 – Apatit, including its
branches and standalone business
• Reference Performance
This Report provides insight
units.
Indicators of the Russian Union
into the performance of parent
of Industrialists and Entrepreneurs
company PhosAgro and its
(RSPP), and the MOEX–RSPP
subsidiaries (hereinafter jointly
Responsibility and Transparency,
referred to as “PhosAgro Group”,
and Sustainability Vector indices.
the “Group”, or the “Company”)
• UNCTAD’s Guidance on Core
across their operations, while also
Indicators for Entity Reporting
offering information on corporate
on Contribution Towards
governance and corporate
Implementation of the
For more information on specific
disclosures and their boundaries
used in this Report, see the GRI
Indicator section on page 380
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Strategic reportPerformance reviewCorporate governanceShare capitalAppendicesCompany profile FOSTERING
collaboration
As one of the world’s leading
mineral fertilizer producers,
PhosAgro has a special
responsibility for ensuring
food security. But we cannot
achieve this goal alone.
With this in mind and in full
compliance with the UN
Sustainable Development
Goals, we place close
and trusting collaboration
with a wide range of partners
at the heart of our business
philosophy.
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8
Key highlights
10
Key events
in 2022
12
Our mission
and values
14
Business
model
18
Geographical
footprint
20
Investment
case and credit
ratings
27
Stakeholder
engagement
30
Material topics
6
7
In December 2021, the International Fertilizer
Association confirmed PhosAgro’s status
as an Industry Stewardship Champion
for its responsible and sustainable
approach to production.
This award goes to companies committed
to continuous improvement, transparency
and best HSE practices.
PhosAgro is the first Russian company
chosen by the UN Food and Agriculture
Organization (FAO) to run a global soil
protection initiative. In 2022, PhosAgro
and FAO launched the Russian Soil
Laboratory Network (RUSOLAN).
over 800 labs
in the global network
For more information, see page 21
For more information, see page 10
Key highlights
FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
SUSTAINABLE DEVELOPMENT HIGHLIGHTS
Revenue, RUB bln
Output by key product, kt
2022
2021
2020
569.5
420.5
253.9
2022
2021
2020
11,073
10,585
10,234
Adjusted net profit, RUB bln
Sales by key product, kt
2022
2021
2020
182.3
130.5
42.0
2022
2021
2020
11,097
10,434
10,138
Dividend payments,
RUB bln
2022
2021
2020
142.1
72.3
38.9
Pollutant emissions,
kg per tonne of finished
and semi-finished products
GHG emissions (Scope 1),
kg of СO2-eq. per tonne
of finished and semi-finished
products
Waste water discharge into
surface water bodies,
m3 per tonne of products
and semi-finished products
2022
2021
2020
0.793
0.801
0.892
2022
2021
2020
133.1
135.5
143.6
2022
2021
2020
5.27
5.31
5.57
Share of recycled
and decontaminated hazard
class 1–4 waste, %
Employee satisfaction
and loyalty, %
Average annual training
hours per employee, hour
2022
2021
2020
99.8
95.1
79.5
2022
2021
2020
38.8
39.1
37.6
2022
2021
2020
LTIFR (own staff)
per 1 mln man-hours
Workplace fatalities
(corporate staff)
2022
2021
2020
0.32
0.85
0.52
2022
2021
2020
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COMPANY PROFILE
Key events in 2022
• PhosAgro and the Food and Agriculture
Organisation of the United Nations
(UN FAO) launched the Russian Soil
Laboratory Network (RUSOLAN).
• Permission was granted to retain
the GDR programme.
• PhosAgro Board of Directors elected
the new Management Board.
May
June
• Agreements on the development
of education were made
with the Ministry of Science
and Higher Education and the Ministry
of Agriculture of the Russian
Federation.
• PhosAgro signed partnership
agreements with the governments
of the Vologda and Murmansk regions.
• A trilateral agreement on expanding
cooperation with the Russian Academy
of Sciences and the Mendeleev
Russian Chemical Society was signed
at the St Petersburg International
Economic Forum.
• PhosAgro and Aeromax signed
an agreement to cooperate on regional
digital transformation projects
in the agricultural industry using
remotely piloted aircraft systems.
• An Educational Centre opened
at Voronezh State Agricultural
University.
• PhosAgro Group became
first in Russia to achieve
certification under the Vitality
Leaf international environmental
standard.
• The Balakovo Branch completed
the upgrade of phosphate
fertilizer capacities.
• Mikhail Rybnikov
was appointed CEO
of PhosAgro.
• An Educational Centre
opened at Saratov State
Vavilov Agrarian University.
March
January
April
• Cooperation
agreements were signed
with the governments
of the Saratov and Leningrad
regions.
• An Educational Centre opened
at Orel State Agrarian University.
February
The first 400 t batch of ore from
Kirovsky mine’s new +10 m level
was delivered to the beneficiation
plant.
• Shareholders elected
the new Board of Directors.
• PhosAgro launched
the second in-house
mineral fertilizer
distribution centre
in Tatarstan which became
the 29th logistics centre
of PhosAgro-Region
(PhosAgro Group), Russia's
largest mineral fertilizer
distribution network.
July
August
Consumers were introduced
to ApaSil, an adaptogen, growth
enhancer, and natural immunity
inducer based on bioavailable silicon,
the flagship product in PhosAgro's
summer 2022 product line.
PhosAgro’s shares were included
in theBlue Chip Index, indicator
of the most liquid Russian shares
on the Moscow Exchange.
September
October
• PhosAgro-START personnel
development and talent
pool training programme
was launched.
Independent director Victor
Cherepov was elected
Chairman of PhosAgro’s Board
of Directors.
•
• PhosAgro was awarded
the highest ranking
in the Russian Business
Anti-Corruption
Rating by the Russian
Union of Industrialists
and Entrepreneurs.
• An Educational Centre opened
at Kursk State Agricultural
Academy.
• PhosAgro received
a letter of appreciation
from the Minister
for the Development
of the Russian Far East
and the Arctic for its active
participation in the Clean Arctic
environmental project.
• Products of Apatit's Balakovo
Branch were awarded the 21st
Century Sign of Quality
(platinum award).
• PhosAgro Group companies
won the 5 Stars. Leaders
in the Chemical Industry
nationwide industry competition
held by the Russian Chemists
Union.
• The Russian Quality Agency
(Roskachestvo) confirmed that
PhosAgro’s products meet
the requirements of the Green
One label.
• PhosAgro Group passed
an inspection for product
compliance with the Vitality Leaf
international environmental
standard.
• PhosAgro Group offered a new
agricultural service – integrated
soil fertility monitoring –
to farmers in southern Russia.
November
December
• PhosAgro joined the UN Global
Compact’s CEO Water Mandate,
a global commitment platform
for corporate water stewardship.
• PhosAgro’s products earned
an Environmental Quality Label
from the Brazilian Association
of Technical Standards.
• Educational Centres opened
at Ryazan State Agrotechnological
University and Penza State
Agrarian University.
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COMPANY PROFILE
Our mission
and values
As one of the world’s leading mineral fertilizer
producers, PhosAgro assumes a special
responsibility for global food security.
We offer high-quality, eco-efficient fertilizers,
supply them and train farmers how to apply
them in the most sustainable manner.
Global presence
Organic growth
and development
Healthy lifestyles
and occupational
health and safety
Eco-efficiency
Social responsibility
Innovation and digital
transformation
Caring
for Earth
fertility
for prosperous
lives
OUR
mission
OUR
vision
Leadership
Our goals are ambitious as we strive
for professional excellence
and continuous self-improvement
Teamwork
As strong team players, we look
to ensure smooth cooperation of all
our business units
Expertise
Everyone at PhosAgro is a qualified
professional in what they do
Reliability
We always honour our obligations
and are a reliable partner
Improvement and innovation
Development is ongoing at PhosAgro,
with every procedure relentlessly
improved and refined
Safety
We promote and share a safety
culture within the Company to ensure
safe working conditions
Ethics
We support human integrity,
fostering moral standards and ethics,
spiritual values, dedication at work,
and respect for family values
OUR
values
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COMPANY PROFILE
Navigator
on UN SDGs
17 UN SDGs are the most
important benchmark in our
making both strategic and day-
to-day management decisions.
Committed to the Company’s
mission and values, which
are underpinned by our Strategy
to 2025, we look to contribute to,
and monitor the progress against,
the targets of our eleven priority
UN SDGs.
Target 2.4
Our key programmes:
• Product development
programme to 2030;
Targets 3.4 and 3.9
Our key programmes:
• Safety culture improvement
programme;
• Improvement of the product
• Social benefits and employee
mix;
guarantees;
• Programme to develop digital
• Minimising pollutant
services for farmers.
For more information,
see pages 56, 100, 112
emissions per unit of output.
For more information,
see pages 56, 142, 168, 190,
234
Target 9.1
Our key programmes:
• Logistics infrastructure
development programme;
• Our Favourite Cities
programme;
• Process Mining development.
For more information,
see pages 63, 130, 234
Target 11.3
Our key programmes:
• Our Favourite Cities
programme;
• Promoting entrepreneurship.
For more information,
see page 234
Target 4.4
Targets 6.1 and 6.3
Targets 8.3, 8.5 and 8.8
Targets 13.1 and 13.2
Target 15.1
Our key programmes:
Our key programmes:
Our key programmes:
Our key programmes:
Our key programmes:
• Developing PhosAgro School
• Water Strategy;
and DROZD projects;
• Cooperation with universities
and Russian and international
R&D centres;
• Promoting retraining
and professional development.
For more information,
see pages 112, 142, 168, 234
• Participation in international
initiatives (the CEO Water
Mandate and Water Resilience
Coalition) ;
• Water Use Optimisation
Programme at the
Cherepovets site of Apatit.
For more information,
see page 190
• Comprehensive production
development programme;
•
Incentives and rewards system;
• Green procurement programme
and ESG assessment of suppliers;
• Our Favourite Cities programme;
• Safety culture improvement
programme.
For more information,
see pages 65, 130, 142, 168,
234
The Company is among
the most highly-
engaged participants
of the world’s largest
corporate sustainability
initiative. The UN first
named PhosAgro a Global
Compact LEAD company
in 2019.
Making
a positive
impact
Minimising
the negative
impact
Energy Efficiency Programme;
• Comprehensive programmes
•
•
Ongoing carbon farm project
in the Vologda region;
• Use of green electricity
to make agrochemical
products;
• Construction of a heat
and power plant
at the Volkhov site;
• Green procurement
programme and ESG
assessment of suppliers;
• Application improvement.
For more information,
see pages 56, 57, 112, 130, 190
to assess and preserve
biodiversity at the Cherepovets
site and the Volkhov
and Kirovsk branches of Apatit;
• Partnership with UN FAO
in advancing sustainable
farming;
• Carbon farm project
in the Vologda Region run
jointly with the Russian
Academy of Sciences
to arrange, among other
things, for the regional
monitoring of GHG emissions.
For more information,
see pages 57, 112, 190
For more information on SDGs, see the Commitment
to UN Goals section of the Company’s website
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Target 12.4
Our key programmes:
•
•
•
Programme to promote circular
economy elements, including
the use of phosphogypsum
in farming and other industries;
Reduction of natural gas
consumption in production
processes;
As part of its Water Strategy,
the Company is running
initiatives to boost water use
efficiency and reduce water
consumption and waste water
discharge;
• Green procurement
programme and ESG
assessment of suppliers;
• Construction of a heat and
power plant at the Volkhov site.
For more information,
see pages 57, 63, 65, 112, 130,
190
Targets 17.16 and 17.17
Our key programmes:
• Cooperation with universities
and Russian and international
R&D centres;
• Collaboration with UN
organisations (FAO, UNESCO,
IUPAC);
• Driving growth of sales
markets;
• Joining efforts
with the governments
and municipal authorities
in the Russian regions in which
the Company operates.
For more information,
see pages 100, 112, 234
Business
model
PhosAgro Group’s
business model is based
on the simple idea that
we must better than our
competitors understand
the ever-changing customer
needs and respond
to them quicker using
a wide product range,
large distribution network
and robust logistics.
This requires flexible high-tech
production facilities, high self-
sufficiency in quality raw materials,
deep vertical integration and, most
importantly, continuous feedback from
end customers and analysis of our
product performance. All this helps
PhosAgro Group maintain a low cost
position in the industry, while also
ensuring top quality and unique eco-
efficiency of its fertilizers.
We leverage our competitive
advantages and seek to meet
the highest operational standards
throughout our product lifecycle.
For more information on the Company’s Strategy to 2025
see the Strategic Report section on page 51
WE
use
Market and technology
insights
Management, production
and sales competencies
Energy and water
Mineral resources
and materials
Partner, supplier
and customer relationships
Public and private
infrastructure
Finances
PhosAgro Group’s competitive
advantages
Target 2.4
We operate the industry’s largest research centre at Samoilov
Scientific Research Institute for Fertilizers and Insectofungicides,
Russia’s oldest of its kind.
Wide
product range
Ultra-modern
product offering
57 fertilizer
grades of all
types
8%
share of grades developed in the last
five years in total sales of our
chemical products
For more information, see page 100, 112
Target 12.4
Apatite-nepheline ore of magmatic origin, which is unique in terms
of quality and safety and does not have as much cadmium or other heavy
metal content as would be dangerous for health, with a reserves-to-
production ratio (RPR) of 60 years (including off-balance reserves)
High vertical integration, % of self-sufficiency
Phosphate rock(cid:19)
Ammonia
Sulphuric acid
Ammonium sulphate
100
76
92
51
For more information, see page 92, 100
Targets:
12.4
3.9
15.1
6.3
8.3
Large-scale upgrade and construction programmes in Cherepovets,
Volkhov and Balakovo
Strong commitment to reducing emission intensity and waste
water discharges, and improving energy efficiency
2022 production, % growth vs 2021
Apatite and nepheline
concentrate
Phosphate fertilizers
Nitrogen fertilizers
For more information, see page 92, 190
12.0 mt
+2.0 %
8.2 mt
2.6 mt
+4.2 %
+5.6 %
Targets:
13.1
13.2 17.16 17.17
WE
secure
Service model for customers: our product is a combination of a fertilizer
and our agronomic expertise, all available in a digital environment.
Sustainable soil fertility
Basis for making safe
food products
New research
and technological
innovations
Well-paid jobs
and social benefits
Educational initiatives
and upskilling
opportunities
Large-scale purchases
of local products
and services
Consistent tax
payments and local
community
development
Contribution
to international
programmes
addressing global
challenges
Sustainably high
returns on investment
PhosAgro’s agronomic service:
training, agronomic advice
and support for customers:
Results of
48
agronomic
trials
published
at www.phosagro.ru
42 dedicated
exhibition events
For more information, see page 57, 100
Digitalisation of sales
and customer services:
47,000+
regular users of PhosAgro's
digital ecosystem
mobile app
downloads
36,000
1.884
up 29% year-on-year
online fertilizer purchase orders
via AgroResult online platform
and mobile application
Targets:
2.4 12.4
Growth in fertilizer
volumes to a record
11 mt
up 6.8% year-on-year
Largest sales network
in Russia
33
distribution
centres
in Russian regions
For more information, see page 18, 92
Target 9.1
High railway throughput capacity
at production sites:
25.85 mt
Reliable delivery: a large
Company's own fleet of railcars
and port terminals on key export
routes
For more information, see page 18, 62
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LOGISTICSSALESAPPLICATIONPROCESS AND PRODUCT DEVELOPMENTMINERAL RESOURCESPRODUCTION
Geographical
footprint
GRI 2–1, 2–6
PhosAgro Group's eco-efficient
mineral fertilizers and feed
phosphates are sold all
over the world via an extensive
distribution network relying
on the Groups’s robust logistics
infrastructure.
Key subsidiaries
• Apatit, JSC (including Balakovo, Volkhov,
and Kirovsk branches)
• Mekhanik, LLC
• NIUIF, JSC
• PhosAgro-Region, LLC
• PhosAgro-Belgorod, LLC
• PhosAgro-Don, LLC
• PhosAgro-Kuban, LLC
• PhosAgro-Kursk, LLC
• PhosAgro-Lipetsk, LLC
• PhosAgro-Oryol, LLC
• PhosAgro-Stavropol, LLC
• PhosAgro-Volga, LLC
• PhosAgro-SeveroZapad, LLC
• PhosAgro-Tambov, LLC
• PhosAgro-Sibir, LLC
71regions
of operation
Murmansk
1
Kirovsk
Kotka
(Finland)
4
Volkhov
St Petersburg
5
2
Cherepovets
Ust-Luga
Moscow
Ryazan
Nizhny Novgorod
Minsk
(Belarus)
Orel
Lipetsk
Saransk
Kazan
Kursk
Tambov
Belgorod
Penza
Voronezh
Volgograd
Samara
Yekaterinburg
3
Bykov Otrog
Rostov-on-Don
Krasnodar
Stavropol
Astana
(Kazakhstan)
Our key production facilities (including
mining and processing assets), port
terminals and a research centre
are located in Russia.
A flexible business model, well-thought-
out production and sales strategy, and deep
knowledge of customer preferences help us
maintain a strong position across the main
fertilizer markets, primarily in Russia and other
premium markets.
Upstream
and downstream
R&D
Novosibirsk
Barnaul
Krasnoyarsk
Distribution
PhosAgro Group’s network
of sales offices is the largest
in Russia. The Group’s quality
products are available
to farmers across the globe.
Logistics
With a ca. 8 mtpa port
transhipment capacity
across key export routes,
the Company can ensure
a reliable supply to foreign
customers and guarantee
timely delivery against its
contractual obligations.
1
KIROVSK BRANCH
2
APATIT
3
BALAKOVO BRANCH
4
VOLKHOV BRANCH
5
R&D
Ussuriysk
Kirovsk, Murmansk region
is the world’s leading producer
of high-grade phosphate rock
and Russia’s only producer
of nepheline concentrate. It develops
six Khibiny deposits: Kukisvumchorr,
Yukspor, Apatitovy Cirque,
Rasvumchorr Plateau, Koashva
and Njorkpahk.
Cherepovets, Vologda Region
is Europe’s biggest producer
of phosphate-based fertilizers,
phosphoric and sulphuric acids,
as well as one of Russia's leading
manufacturers by NPK, ammonia
and ammonium nitrate output.
Bykov Otrog, Saratov region
focuses on phosphate-based
fertilizers (a leading producer
in Europe) and feed phosphates
(a leading producer in Russia,
and the country’s only manufacturer
of monocalcium phosphate feed
grade).
Volkhov, Leningrad region
is Russia’s only producer of sodium
tripolyphosphate and one of Russia’s
leading producers of mineral
fertilizers.
Cherepovets, Vologda region
PhosAgro Group runs Samoilov
Scientific Research Institute
for Fertilizers and Insectofungicides,
Russia’s only research centre
specialising in this area and one
of the largest in Europe. Founded
in 1919, this institute paved the way
for the country’s strong mineral
fertilizer industry.
For more information on our geographical
footprint, visit the Company’s website
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19
COMPANY PROFILE
Investment case
and credit ratings
1
A global producer of high-quality
phosphate-based fertilizers
PhosAgro is Europe’s
largest producer
of phosphate-based fertilizers1
and a top 5 global producer
of DAP/MAP2 by capacity.
Customer focus
Certification
Our products
Stewardship Champion
A netback-driven sales
model with a global
presence.
for compliance with international
standards testifies to the highest
quality of our products
and management efficiency
throughout their life cycle:
•
•
•
ISO 9001:2015
ISO 14001:2015
ISO 45001:2018
• GMP+ B2
• GMP+ B1
• GMP+ B4
are compliant with Regulation
(EC) No. 1907/2006 concerning
the Registration, Evaluation
and Authorisation of Chemicals
(REACH). The Company is also
taking all necessary steps
to keep the registrations in line
with new requirements. One
of our achievements in 2022
is the certification of fertilizers
in accordance with Regulation
(EU) 2019/1009 of the European
Parliament and of the Council,
which sets out the rules
for accessing the EU fertilizer
market.
PhosAgro has an Industry
Stewardship Champion status
assigned by the International
Fertilizer Association (IFA).
It is attached to companies
that have been certified
to meet the Protect &
Sustain standard and actively
participate in IFA research
on safety, environment, energy
efficiency and CO2 emissions.
Our production
technologies
meet the highest global
standards.
1 By total production capacity for DAP/MAP/NP/NPK/NPS.
2 Monoammonium phosphate / diammonium phosphate
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21
COMPANY PROFILE
2
Unique resource base and sector-leading
margins
Unique mineral resource
base
Important food safety
factor
Wide range of ready-to-use solutions
for farmers
The mine life, including off-
balance reserves, is estimated
at around 60 years.
Thanks to its magmatic
origin, phosphate rock mined
on the Kola Peninsula boasts
exceptional purity.
Our in-house R&D function
and cooperation with Russian
and international R&D centres enables us
to develop and launch new fertilizer grades
in a prompt manner in order to deliver
the crop nutrient solutions our customers
need.
PhosAgro Group's position on global DAP
production cost curve, production, kt
Source: CRU Industry Cost Curves 2022, PhosAgro
10,000
20,000
30,000
PhosAgro Group's position on global urea
production cost curve, production, kt
Source: CRU Industry Cost Curves 2022, PhosAgro
40,000
80,000
120,000
160,000
Share of PhosAgro Group’s
supplies in the key sales
markets (share of compound
and complex fertilizers
in the region’s total imports),
2022 estimates, %
45
24
15
12
Russia
(share of total supplies)
Europe
Africa
Latin America
One of the global leaders
in the production of major
types of fertilizers
by profitability
No. 1 World's
producer of high-
quality phosphate rock
(P2O5 content at 39%
and above) globally
In 2022
PhosAgro topped Expert RA’s
ranking with its highest ESG
transparency level among Russian
chemical companies
No. 1
in terms of urea
and mineral
fertilizer capacity
concentrated at one
production facility
(Apatit, Cherepovets)
in Europe
Self-sufficiency
100% in phosphate rock,
in major inputs:
•
• 76% in ammonia,
• 92% in sulphuric acid
The only Russian
and one of the leading
European producers
of monocalcium
phosphate feed grade and
the NP 11-37 liquid complex
fertilizer
One of the highest margins
in the phosphate segment
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23
COMPANY PROFILE
3
Eco-efficient fertilizers
PhosAgro was the first Russian
company to be certified
to GOST R 58658–2019,
a national standard
for products with improved
characteristics which
introduced the world’s most
rigorous limits on heavy metals
and arsenic content. This
allows PhosAgro to mark its
products with a special Green
One label.
The Company also successfully
completed voluntary Vitality
Leaf certification. This ISO
14024-compliant framework
was designed to assess
a product’s environmental
safety throughout its
lifecycle, including mining
and processing of raw materials,
their delivery to the plant,
storage, transportation
and use of finished products,
and packaging recycling.
Additionally, PhosAgro made
a Green Label environmental
claim asserting that
the product is free from
dangerous cadmium
concentrations harmful
to human health and soils.
The Group’s product
packaging also has
a pictogram from the EU
regulations, which is used
to inform consumers
of safe fertilizers in terms
of heavy metals content
with cadmium content not
exceeding 20 mg/kg P2O5.
In December 2022,
the Group’s Cherepovets,
Volkhov and Balakovo
production sites
and phosphate rock mining
and beneficiation facility
in Kirovsk successfully
passed a certification audit
by the Brazilian Association
of Technical Standards
(ABNT).
4
Sound capital allocation in highly
effective investment projects
Investment projects may get
with the CAPEX/EBITDA target,
a go-ahead subject to their
and a comfortable net debt / EBITDA
high, compliance with the BAT
covenant headroom.
and sustainability criteria along
Breakdown of CAPEX2, RUB bln
ctual)
21 (a
0
2
2022 (actual)
53.2
2
0
2
3
5
7
.
1
(
p
l
a
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)
41.9
27.0
24.1
0.0
3
10.8
2.2
4
.
0
1.1
2
9
.
0
2
4
.
2
Non-industrial construction
Maintenance
Investment projects
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25
1 Associação Brasileira de Normas Técnicas.
1 CAPEX excluding capitalised repairs.
COMPANY PROFILE
5
Well-balanced corporate
governance
Stakeholder engagement
Statement of the Chairman of the Strategy
and Sustainable Development Committee
4 (40%)
independent
directors
on the Board
of Directors
board
committees
3
meeting
on a regular
basis
In March 2022, in the wake
Also, as a result of the sanctions
ratings today cannot adequately
of sanctions against Russia,
against the country, international
reflect the Company’s ESG practices.
Sustainable development
lifecycle is instrumental in providing
Our ability to listen and
the international rating agencies
ESG rating agencies scaled down
remains the cornerstone
the most complete and well-
understand, be quick in our
Standard & Poor’s, Moody’s and Fitch
their engagement with Russian
PhosAgro is currently making efforts
of PhosAgro's strategy, and we
structured information about
response, and effectively
withdrew both the sovereign credit
companies, including PhosAgro.
to obtain credit and ESG ratings from
intend not only to maintain,
the Company’s performance, while
work with a wide range of
ratings and the credit ratings of all
Hence, PhosAgro’s international ESG
Russian rating agencies.
but also to reinforce our
maintaining a balance between
stakeholders is key to the
Russian corporate issuers, including
PhosAgro. This move was not related
to a change in the creditworthiness
External ESG assessment
2020
2021
2022
of the companies and had no impact
on PhosAgro’s ability to service its
bank and public debt. At the time
of the withdrawal, PhosAgro’s credit
ratings were as follows: Standard &
Poor’s – BBB-, Moody’s – Baa3,
Fitch – BBB-.
Throughout 2022, the Company
continued to service its bank
loans in a timely manner and took
a number of steps to continue
servicing Eurobonds in the new
regulatory environment. Thus,
the Company once again confirmed
its high credit quality.
Сorporate transparency
rating
WWF Environmental Transparency
Rating for Mining and Metal Companies
Responsibility and Transparency index
Sustainable Development Vector index
Disclosure of UN SDG integration rating
n/a
n/a
14
B
B
B
А
А
8↑
A↑
A↑
A↑
А
А+↑
7↑
А
А
А
focus on ESG integration
the interests of diverse stakeholder
approach we use in doing
in our corporate governance
groups.
and current operations. Aware
business. It provides a solid
foundation for delivering on
that full and timely reporting
I would also like to highlight
strategic SDGs.
is key to achieving this goal,
the external recognition of our
we place a strong emphasis
efforts. PhosAgro's Integrated
on preparing relevant reports.
Annual Report 2021 won
the Grand Prix of the Moscow
For the second year running, we
Exchange's 25th Annual Report
are making disclosures in line
Competition as the best report
with the TCFD recommendations.
of companies with a capitalisation
This methodology, also used
of over RUB 200 bln. This is our first
in this Report, enables us
reward of this kind, and we highly
to cover a wide range of steps
appreciate such a high recognition
we take across such areas
of our efforts by the investment
as environmental protection,
community. We are doing our best
social responsibility and corporate
to make sure our reporting complies
governance. A disclosure
with the highest standards going
approach focused on a product’s
forward.
Alexander Sharabaika
Chairman of the Audit
and Sustainable Development
Committee of the Board
of Directors
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COMPANY PROFILE
Approach to stakeholder engagement;
identifying and selecting stakeholders
GRI 3–1, 2–29, SASB EM-MM-210a.3
For us, engagement
customers, raise awareness among
to be constructive, open
with stakeholders begins when
farmers about modern agricultural
and principled. Thus, we work
we realise our common goals
practices and techniques, work
hard to build partner relationships
and interests. A stakeholder
with researchers to present
in the towns where we operate
is a person or organisation that
ambitious innovative projects
and ensure that we strictly comply
has an interest in what we do.
connecting science and business
with all applicable regulatory
Stakeholders also include persons
and, most importantly, make
requirements.
or organisations that may be affected
informed practical choices
by our activities or can influence our
to improve economic, social
PhosAgro’s framework
business decisions.
and environmental conditions where
for stakeholder engagement
Understanding stakeholder views
of corporate governance.
the Company can make a difference.
management covers all tiers
facilitates many processes. It helps
In our engagement with our
us develop new products for our
stakeholders, we strive
Generated and distributed direct economic value,
RUB mln
GRI 201–1
Item
Stakeholder
DIRECT ECONOMIC VALUE GENERATED
Revenue from sales
Revenue from other sales
Revenue from financial investments
Revenue from sale of assets
ECONOMIC VALUE DISTRIBUTED
Operating expenses, including:
wages and other payments
to employees
social expenses
Wide range of stakeholders
Suppliers and contractors
Employees and trade unions
PAYMENTS TO PROVIDERS OF CAPITAL
payments to shareholders
payments to creditors
Investment and finance
community
Tax expenses and other payments to government:
including income tax expense
Regional governments
and local communities
2020
254,854
242,262
11,617
975
0
2021
422,459
404,849
15,639
1,971
0
2022
573,966
551,037
18,490
4,439
0
(247,254)
(363,715)
(520,253)
(193,263)
(28,540)
(250,101)
(32,781)
(320,792)
(51,567)
(2,570)
(3,378)
(9,314)
(38,852)
(4,132)
(11,007)
(8,045)
(72,260)
(4,335)
(37,019)
(31,073)
(142,111)
(4,558)
(52,792)
(41,465)
ECONOMIC VALUE RETAINED
7,600
58,744
53,713
Employees
and trade unions
For more
information,
see page 142
Investment
and finance
community,
including investors,
shareholders
and ESG rating
agencies
For more
information,
see page 326
Regional
governments
and local
communities
For more
information,
see page 234
Consumers
For more
information,
see page 100
Our key
stakeholders:
Suppliers
and contractors
For more
information,
see page 130
International
organisations
For more
information,
see page 128
Research
community
For more
information,
see page 112
Business and industry
associations
For more
information,
see page 126
Feedback
You can send your comments and proposals regarding corporate reporting
to ir@phosagro.ru or esg@phosagro.ru.
Feedback from shareholders and other stakeholders helps PhosAgro improve
reporting transparency and quality.
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COMPANY PROFILE
Material topics
GRI 2–14, 2–29, 3–1, 3–2
Defining material topics: approach and steps
we took into account the scale
To illustrate our approach to impact
in particular, as part of the provided
of an actual and potential
assessment, let us look at the GRI
training are highly relevant.
impact and the nature
404 Training and Education. For this
of the assessed topic with due
topic, we rated the impact as high
Our work to define material topics
regard to industry specifics.
at every stage of the value chain
resulted in a materiality list based
With the application of our
due to an important role our highly
on the entire range of stakeholder
In October 2022, PhosAgro
for the chemicals industry drafted so
Following the analysis of topics
products seen as an important
qualified staff plays along the way
interests and opinions related
approved the revised version
far, the list of topics was expanded
deemed material in 2020, 2021
stage in value creation, we paid
from product development to sales.
to the Company’s disclosures.
of the Regulations on Collecting,
to include additional aspects reflecting
and 2022, we found out that their
attention both to the Company's
As regards the application stage, we
Following the analysis, we selected
Processing and Presenting
the specific nature of the Company's
materiality had largely changed due
impact on the end consumer
assume that the customer gets a 2-in-1
22 material topics to be disclosed
Non-Financial Reporting Data
operations, including SASB
to changes in assessment approaches.
and to customer needs,
product, including a fertilizer and our
in this Report and ranked
in accordance with GRI standards,
recommended disclosures.
expectations and requirements
service expertise (training, agronomic
them according to their priority
including the GRI Universal Standards
Our strategy and risk experts analysed
with regard to our products
advice and support). Hence, relevant
for the Company.
updated in 2021. The Regulations
The Company looked into topics
the list of topics, compared them
and practices.
competencies and skills acquired,
include GRI-compliant data collection
for each GRI Topic Standard and rated
against our strategic priorities and risk
forms for the Report and establish
them from 0 to 3 based on the opinion
profile and assessed their impact
the approach to defining material
of the investment and finance
on PhosAgro's value chain.
topics based on double materiality.
community, including rating
This approach relies on the review
agencies, and feedback from the key
of the impact that social, economic,
stakeholders. In 2022, PhosAgro Group
1. The impact of material aspects
on our value chain from mine
regulatory and governance and/or
relied on the stakeholder survey from
to plate (for more information,
environmental factors or aspects have
2021, having first checked its relevance
on the Company and vice versa.
by reviewing communications
received via the PhosAgro Hotline
see the Business Model section
on page 16) was rated as high,
medium or low. When assessing
The new way of materiality assessment
or ir@phosagro.ru over the year.
the degree of impact on processes
resulted in several changes
We included topics rated above 1
under our control such as product
to the 2022 disclosures, in particular
in the list of material topics proposed
development and manufacturing,
a more extensive list of material
for disclosure.
topics. With no GRI sector standard
purchase and mining of mineral
resources, logistics and sales,
IDENTIFYING THE SOURCE OF DATA
for selecting material topics and assessing respective impacts
1
Review of material
topics
from the perspective
of the corporate strategy,
risks, opportunities
and the Company's business
model
Surveys
of internal stakeholders
Survey
of investors' opinions
on material topics
Review
of material topics as per the SASB
industry standard
Analysis
Analysis
of global and local
ESG ratings, rankings
and standards
and prioritising of the UN SDGs
Survey
of external stakeholders, including
review of complaints and queries
received by the PhosAgro Hotline
Key changes in 2022 reporting that deserve
a special mention
1. Material topics disclosed
in the 2021 Annual Report are still
relevant in 2022.
2. We performed a dynamic
assessment (change in relevance
year-on-year).
3. We carried out a double
materiality assessment
4. Under the new GRI 3 standard,
we identified five new material
topics:
• 206 Anti-competitive behaviour,
• 402 Labour/management
relations,
5. 44 GRI indicators (39 of which
relate to the 22 material topics
listed on page 32 below)
underwent external independent
audit by Technologies of Trust –
Audit JSC, providing limited
• 405 Diversity and equal
assurance.
opportunity,
of the Company's impact
on the aspect and vice versa.
• 410 Security practices, and
• 414 Supplier social assessment.
For more information, see
the GRI Content Index section
on page 380.
SHORT-LISTING
material topics
2
APPROVING THE FINAL LIST
of material topics
3
Assessment
Assessment
Checking
of each topic's
materiality:
•
•
for the Company
and its stakeholders
(including investors);
from the perspective
of industry
standards
and ratings
Materiality assessment
of negative and positive
impacts and assessing
materiality of each impact
in the value chain
Assessment
of each topic's materiality
on a scale from 0 to 3
the selected topics
for relevance to information
users and against expert
opinions
Approving
the final list of material topics
by the Strategy and Sustainable
Development Committee
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OUR APPROACH TO SELECTING 2022 MATERIAL TOPICSCOMPANY PROFILE
Impact on the value
chain
P
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COMPANY PROFILE
MEETING
the growing demand
T
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S
In November 2022,
the world’s population
exceeded eight billion people
and may hit the ten billion
mark by 2050. In this context,
the use of fertilizers is one
of the most promising ways
to avert the global threat
of hunger, and constructive
cooperation between
international organisations,
governments, fertilizer
producers and consumers
is critical to maintaining resilient
and reliable global fertilizer
production and supply chains.
Despite normal temporary fluctuations,
the long-term growth in global demand
for mineral fertilizers has been steady.
In Russia and the CIS, consumption grew
by 6% in 2022. Building on PhosAgro's
contribution to meeting this growing
demand, we further increased production
in 2022.
4.6%
y-o-y growth in PhosAgro's mineral
fertilizer production
Boosting supplies to the rapidly grow-
ing markets of Latin America is one
of our key priorities. In 2022, PhosAgro
Group products were certified in Brazil
and earned the Environmental Quality
Label from the Brazilian Association
of Technical Standards.
For more information, see page 65
For more information, see page 57
4
Chairman’s
statement
6
CEO’s
statement
9
Business
environment
12
Market
overview
17
Strategy
36
Strategic risks
34
35
Chairman’s statement
PhosAgro Group has stood
strong boasting unprecedented
flexibility: even under these
circumstances, we were able
to ramp up supplies, primarily
to markets in friendly countries.
RUB 63 bln
earmarked for investment
The past year has offered Russian
businesses unprecedented
challenges: the rules
and mechanisms of international
Consistently strong corporate
governance
Sticking to strategic
priorities
trade, including those
In 2022, PhosAgro’s corporate
has been streamlining its production
In the year’s turbulent environment,
In 2022, the Company invested
for fertilizers and agricultural
governance framework changed.
and governance structure:
not only have we not abandoned
over RUB 63 bln (including capitalised
commodities, no longer work
I took on the role of the Chairman
the local regulatory framework,
investment in development, but
repairs) with another RUB 250 bln
as they used to. PhosAgro Group,
of the Board of Directors. This
monitoring and control systems,
we have planned record investments
earmarked for investment
a supplier to farmers around
is an honour and a great challenge
communications and accountability
in projects that will fuel our growth,
over the next five years.
the globe, was forced to adapt
for me, and I want to express my
across the Group. This helped us
support self-sufficiency in feedstock
quickly to the new normal.
gratitude to colleagues for their trust.
withstand the challenges of the past
and, of course, create jobs
Despite all the trade restrictions
And we did it.
year. Despite all the risks and external
and contribute to the development
of 2022, the Company was able
It is my conviction that people
limitations pressing on the business
of the regions where we operate.
to route its supplies to other markets
We have been working hard
are PhosAgro Group’s most valuable
environment, we strived to remain
to make sure that farmers
asset.
in the priority domestic market
open and transparent to a wide
range of stakeholders. In our
and globally have access to our
I believe it is our team that helped
view, it is a reliable indicator
high-quality and eco-efficient
keep the quality of PhosAgro’s
of strong corporate governance
fertilizers, which is exactly what
corporate governance consistently
and sustainable development
the Company was created for.
high through all the headwinds
of the Company.
of 2022. Year after year, the Company
In 2022,
we continued
with our Strategy
to 2025, which
focuses on increasing
production
and raising our
status as a low-cost
producer of eco-
efficient fertilizers.
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STRATEGIC REPORT
Strengthening new business relationships
in a short period of time. While
the Brazilian Association of Technical
certification body to develop
Laboratory Network (RUSOLAN),
generation facilities at our chemical
Academy of Sciences, we have
maintaining our leading position
Standards. PhosAgro’s Cherepovets,
and harmonise common
which was integrated into the Global
plants are largely powered
kicked off a project to create
in the priority domestic market,
Volkhov and Balakovo production
criteria for evaluating fertilizers
Soil Laboratory Network (GLOSOLAN)
by sulphuric acid production
a carbon farm, an area designed
we have also cemented our business
sites and its phosphate rock mining
is an important milestone towards
that includes over 800 laboratories
steam. A similar generating facility
to monitor and absorb greenhouse
relationships with a number
and beneficiation facility in Kirovsk
mutual recognition of ecolabels
in more than 150 countries.
was launched in Volkhov in 2022
gases. In autumn 2022, the first part
of friendly countries.
successfully passed a certification
for mineral fertilizers and setting
as part of an investment project
of the carbon farm was deployed
Specifically, Russia and Brazil
audit by ABNT.
uniform market requirements
in the two countries based
To support the green agenda,
to build a new plant and cover 90%
as part of the project and around
Apatit mining and processing plant
of its electricity needs.
110,000 coniferous and deciduous
reached a new level in bilateral
The joint project accomplished
on the existing Vitality Leaf
continues to increase the use of green
trees were planted on an area
trade this year: our products earned
by PhosAgro Group, ABNT
international system standard.
electricity for its agrochemical
In a joint effort with the government
of around 100 ha.
an Environmental Quality Label from
and the Ecological Union
products. Our in-house power
of the Vologda region and the Russian
Sustainability at the heart
of PhosAgro’s business
GRI 2-22
Forging ahead
The investments we have
pursuing for over 20 years
up for the free trade of PhosAgro
made over many years
is to ensure the reliable and seamless
Group’s eco-efficient fertilizers
and the professionalism of our team
supply of eco-efficient fertilizers
around the world for the benefit
Our absolute priority is to operate
training programmes at these
For example, at the UN Climate
are yielding tangible results. I am
and therefore contribute to food
of people and global food security.
with the widest possible
educational institutions for young
Change Conference (COP27),
range of stakeholders in mind.
talent the Company needs.
we joined the Business Declaration
confident that we will continue
security in Russia and in some
to forge ahead to new heights
100 countries around the world.
We collaborate closely with farmers,
for Climate Resilient Water, Sanitation,
and new records in 2023, all the more
local communities in the regions
Apart from our charitable
and Hygiene (WASH). The Declaration
so because not only the Company
In 2022 and 2023, this challenge
of operation, and domestic market
initiatives in the area of social
was drafted by the Water
needs this.
players. PhosAgro continues
and environmental development,
Resilience Coalition, a UN Global
becomes particularly urgent
as sanctions hit the global business
to run joint humanitarian
we are closely integrating
Compact platform, together
We recognise our responsibility
arena, and unconscionable
and educational projects in concert
the sustainability principles into our
with the WASH4Work alliance
towards a wide range
compliance from financial, logistics,
with international organisations.
business model, which has become
to help achieve the Clean Water
of stakeholders, including farmers
and insurance companies may
We also actively cooperate
the key element of PhosAgro Group’s
and Sanitation and Climate Action UN
all over the world. Our ultimate goal
disrupt established processes.
with academic organisations
overall strategy and is successfully
Sustainable Development Goals.
that we have been successfully
In 2023, we will continue to stand
Victor Cherepov,
Chairman of the Board
of Directors of PJSC PhosAgro
and institutions of higher
embedded into our corporate
and secondary vocational education
governance framework and our day-
As part of a joint project between
offering training in relevant
to-day operations.
and related professions. This has
brought to life highly successful
PhosAgro and the UN Food
and Agriculture Organisation,
we launched the Russian Soil
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STRATEGIC REPORT
CEO’s statement
RUB 267 bln
adjusted EBITDA
The year of 2022 will certainly go
down in the history of Russia’s
business as one of the most
challenging years even compared
to the period of the COVID-19
pandemic. We were, too, affected
by a number of sanctions,
the disruption of international
ties and supply chains that had
developed over years of cooperation.
It was in this year that I assumed
the position of CEO, and I am grateful
for the trust of our shareholders
and team, and for the coordinated
and professional work
of each and every member
of the management team. I am
also grateful to my predecessor,
Andrey A. Guryev, whose stewardship
made PhosAgro one of the globally
recognised leaders and the industry’s
most efficient players. In 2022, this
came in handy more than ever before.
Throughout the year, we were dealing
with the key challenge of maintaining
access to PhosAgro Group’s eco-
efficient fertilizers for farmers around
New records
were registered in 2022. A significant
portion of our offering consists
the world for the sake of global
In 2022, in spite of all the external
of newest fertilizer grades developed
food security. Artificial barriers
challenges, the Company’s team
over the past five years, including
The top priority for our team
was to ensure seamless operations
at all of our production sites, deliver
fertilizers on time, and take care of our
employees and their families.
existing investment projects
and targeted programmes. Most
of these goals seem relevant
and realistic, even in the new
Projects
we are proud of
impeded this in every way possible,
managed to set a new production
two in the reporting year.
external environment.
Putting the new +10 m level
but we continued to do our utmost
record: the concerted efforts of our
to eliminate the restrictions on free
entire team increased PhosAgro
Once again, the past year
trade in vital agricultural commodities
Group’s agrochemical output
was a record year for us in terms
In the reporting year,
we allocated more than
at the Kirovsky mine into operation
is the most ambitious of our key
investment projects. Early in 2022,
from Russia. In the extremely
by almost 5% year-on-year to a record
of not only operating but also
RUB 63 bln (including capitalised
we started to pilot the new level
of our investment programme
in 2022. One of the main initiatives
in this project was the upgrade
of the SK-20 sulphuric acid unit
increasing its monohydrate capacity
from the current 760 ktpa to 1.1 mtpa.
It will make us more independent
of external suppliers and more
self-sufficient in the scarce raw
material – high-quality sulphuric
acid. This investment project
boosted phosphate rock processing
and helped us launch the production
of complex NPK fertilizers
in Balakovo.
Over the next five years, we plan
to invest around RUB 250 bln
in developing and maintaining our
production capacities, of which
nearly RUB 67 bln (including
capitalised repairs) will be invested
in 2023 – a 6% increment
over the record high investment
made in 2022.
Sustainable
development
and food
security
As we discuss PhosAgro Group’s
performance in the past year, I
challenging environment of 2022,
11.1 mt. Thus, we managed to meet
financial performance. Adjusted
repairs) for the development
and in February the first batch
cannot but mention our sustainability
our commercial and logistics
growing demand in our priority
EBITDA was up by 39% compared to
and maintenance of production
of ore was already available
efforts and achievements. We have
divisions exemplified total dedication
domestic market reliably.
2021, reaching a record of RUB 267
facilities, a third more than in 2021.
for beneficiation. The new level
once again proved that we are able
and impeccable professionalism.
bln. EBITDA margin also improved,
We are building new production
will not only enable us to replace
to combine strong operating
However, you need to understand
One of PhosAgro Group’s primary
hitting 46.9% vs 45.7% in the previous
facilities, upgrading and expanding
the levels being shuttered but
and financial performance with social
that while much has been achieved,
objectives is to offer a wide range
year.
existing ones, bolstering their vertical
even to increase the mine’s overall
and environmental commitments.
there is still a long way to go before
of high-quality fertilizers to farmers.
obstacles to Russian fertilizers
With our in-house R&D function,
are lifted and a global humanitarian
we continue expanding our offering
catastrophe is prevented.
to meet the needs of farmers in line
with the principles of sustainable
PhosAgro’s team manages to cope
development. And we are able to do
Investments
in the future
integration and self-sufficiency
output in order to reach the targets
in technology and feedstock. All
in line with the Strategy to 2025.
We more than doubled our support
this enables us not just to ramp up
This project is the champion
for social and charitable projects
production, but to do so in the most
by the number of bleeding-edge
in the regions of operation, with
flexible and cost-efficient way
technologies and solutions applied.
some RUB 11 bln spent in this
possible taking full advantage
realm. PhosAgro implemented
with the new challenges in a short
this quickly. In 2022, our portfolio
n 2022, we continued to make
of existing market environment
Another key project for PhosAgro
initiatives set to improve the quality
space of time, not just keeping
expanded to 57 agrochemical grades,
steady progress towards
and delivering a sustainably high
Group is to develop Balakovo branch,
of the urban environment, education,
the business stable but reaching new
including all types of fertilizers
the goals set out in our Strategy
return on our investments.
where we completed the third phase
healthcare, youth policy, and sports.
highs.
and feeds. Two of these grades
to 2025, including running
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STRATEGIC REPORT
On top of that, we strongly support
Leaf standard in November 2022.
at level 10 of the Kirovsky mine
traditional cultural and spiritual
PhosAgro became the first company
on stream by the end of the year.
values.
in the country’s fertilizer industry
In Cherepovets, we plan to bolster
to be granted the right to use this
phosphate rock processing;
By and large, the sustainability
international label a year earlier.
in Balakovo we intend to complete
principles are firmly incorporated
into our business model, as our
We also ranked among
projects designed to boost feed
phosphates and sulphuric acid
primary goal is to supply our eco-
the companies with the best
output, and to kick off phase 3 of our
efficient fertilizers to farmers around
social and charitable programmes
production site creating a flexible
the globe and in the local priority
in the Russian Leaders in Corporate
MAP/DAP/NPS/NPK fertilizer
market.
Philanthropy 2022 competition
production scheme.
Business environment
SASB EM-MM-210b.2
December 2021 – present
On 1 December 2021, Russia’s
export quotas for nitrogen-
based and complex
fertilizers came into effect
fertilizers), Russia’s government
extended until the end of August,
resolved to restrict exports
and then until the end of 2022.
of nitrogen-based and complex
The quotas for nitrogen-based
fertilizers for six months starting
and complex fertilizers were set
from 1 December 2021. The quotas
at slightly above 8.3 mt and 5.9 mt
We used the best available
a coalition of major grantmakers
For more than 20 years of our
in the domestic market and,
fertilizers were approved at 5.9 mt
Ministry of Industry and Trade
organised by the Donors Forum,
As a way to prevent shortages
for nitrogen-based and complex
respectively. In 2023, the Russian
technologies to implement
in Russia.
all the investment projects
and programmes in 2022, and our
sustainability efforts do not go
unnoticed by the expert community.
Outlook
history, we have remained true
to our mission of supplying eco-
efficient PhosAgro Group fertilizers
to farmers around the world,
including the priority Russian
In November 2022, the Russian
will continue to pursue the Strategy
contribution to global food security.
Quality Agency (Roskachestvo)
to 2025 by increasing capacity
confirmed that PhosAgro Group’s
and upgrading production facilities.
PhosAgro Group’s strength lies
We have big plans for 2023. PhosAgro
market, and making a meaningful
consequently, to slow down
and 5.35 mt respectively. Later on,
extended the quotas until 31 May
the growth of food prices amid rising
the urea export quota was raised
2023, with the quotas for nitrogen-
gas prices (with gas used extensively
by 280 kt. When the initial effective
based and complex fertilizers coming
in the production of nitrogen-based
period expired, the quotas were first
in at 7.3 mt and 5 mt respectively.
February – March
products meet the requirements
in its employees, shareholders,
Ban on Russian vessels entering
Western suppliers of equipment
The USA introduced a sanction
of the Green One label. In 2021,
We plan to ramp up our state-of-the-
and partners alike. Thank you
UK ports and other logistical
and industrial solutions halted their
the Company was the first business
art phosphate fertilizer production
for your confidence in the course
in Russia to take assessment
site in Volkhov to its design capacity,
the Company has chosen to follow.
restrictions
On 1 March 2022, the UK
operations in Russia.
In February–March 2022, many
waiver for Russian fertilizers
The Office of Foreign Assets
Control (OFAC) of the US Treasury
for compliance with the standard
and it will become an innovative
enabling us to use this ecolabel.
industry leader for years to come.
By a wide margin, PhosAgro’s
This will help us increase not only
fertilizers comply with the world’s
the output of finished products, but
most stringent limits on heavy
also the processing of phosphate
metals and arsenic content
rock – the main raw material
in fertilizers, which are introduced
for fertilizers.
by Russian national standard GOST R
58658-2019.
We will continue with our
ambitious programme to develop
We also passed an inspection
our raw material base in Kirovsk,
for product compliance
where we intend to bring
with the Ecological Union’s Vitality
the second start-up facility
Mikhail Rybnikov,
Chief Executive Officer
of PJSC PhosAgro
passed a bill fully blocking
Western suppliers of equipment
published a new general licence,
access to the nation’s ports
and industrial solutions resolved
which removed Russian mineral
for all vessels related to Russia.
to close shop in Russia. Among
fertilizers from possible sanctions.
On 4 March 2022, Denmark’s
them were Caterpillar, Metso,
The US authorities classified
Maersk stopped accepting
Epiroc, Sandvik, Komatsu, Hitachi
Russian fertilizers as strategic
bookings for the shipment
and others. The economic sanctions
supplies required to prevent
of essential goods from the ports
imposed by the USA and EU
shortages of chemical products
of Novorossiysk, St Petersburg
complicated exports of dump
essential for the agricultural
and Kaliningrad.
trucks from respective countries
industry.
to Russia, while also contributing
The London Stock Exchange
to the shortage of components
suspended trading
(engines, gearboxes) and spare parts.
in PhosAgro’s global depositary
receipts
The London Stock Exchange
The three largest container-
shipping lines halted cargo
suspended trading in depositary
receipts issued by Russian
bookings from Russia
On 1 March 2022, the world’s three
companies, including PhosAgro.
largest container shipping lines –
According to the LSE, this move
Switzerland’s Mediterranean Shipping
was designed to maintain orderly
Company (MSC), Denmark’s Maersk
markets in light of the market
and France’s CMA CGM – suspended
conditions.
cargo bookings from Russia.
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STRATEGIC REPORT
April
September
November
The EU approved the fifth
The fifth sanctions package
Poland approved sanctions
The European Commission
The US Department of Treasury
The UK authorises financial
sanctions package
As part of its new sanctions
also imposes a ban on imports
against 15 individuals
of potassium chloride from Belarus
and 35 legal entities from
package, the EU restricted
through Russia (“anti-circumvention
imports of fertilizers from Russia.
measure against potash imports
The restrictions do not apply
from Belarus”).
to the execution until 10 July
Russia
The sanctions apply to a number
of Russian companies, including
PJSC Gazprom, PJSC NOVATEK,
2022 of contracts concluded
As part of its fifth package
PJSC Acron, PJSC PhosAgro
before 9 April 2022. Starting from
of sanctions against Russia, the EU
and others.
10 July, the EU also introduced
closed off its ports for Russian-
the following one-year quotas
flagged vessels starting from
for Russian fertilizer imports:
16 April 2022. The ban also applies
837.57 kt for potassium chloride,
to the vessels that changed their
and 1,577.8 kt for complex
Russian flag or their registration after
and other potassium-containing
24 February 2022.
fertilizers.
June
July
Russia became the largest
The USA issued a general
supplier of phosphate
fertilizers to India
From April to June 2022,
Russia shipped 350 kt
licence to authorise
Signing of the grain deal
The grain deal was signed
transactions related to Russian
on 22 July 2022. Russia
fertilizers
The OFAC authorised
and Ukraine entered
into the grain export agreement
authorised Russian
and State Department
services for the supply
fertilizer supplies
The European Commission
issued an updated guidance
to make it clear that EU
companies are allowed
to offer transportation
and insurance support
to Russian fertilizers
encourage major US banks
to continue transactions
with certain Russian companies
The US Departments
of Treasury and State
of Russian fertilizers
The UK Government issued
a general licence that permits
the provision of financial
services for the supply
urged creditors to continue
of Russian fertilizers
offering their key services
to third countries. The UK
(USD settlements, payment
officials emphasised that
transiting to third countries.
transfers, trade financing,
the licence is only applicable
etc.) to Russian companies
to the shipments of fertilizers
exempted from certain aspects
for agricultural needs.
December
As part of its ninth sanctions
package, the EU authorised
the unfreezing of assets
belonging to Russian
businessmen engaged
in production of fertilizers
and chemicals
Under the ninth sanctions
package, certain EU
of sanctions, for example, such
companies as PJSC Gazprom
and PJSC PhosAgro.
January 2023
member states were allowed
Russia introduced duties
Pan-African Parliament
to unfreeze the assets
of Russian businessmen
engaged in production
on fertilizer exports effective
until the end of 2023
Starting from 1 January 2023,
Bureau Resolution
In January 2023, the Pan-
African Parliament Bureau
of diammonium phosphate
transactions with Russia related
separately by executing
of fertilizers and chemicals,
Russia imposed export duties
adopted a resolution
to India, thus becoming
the largest supplier
of phosphate fertilizers
in the Indian market amid
the sanctions imposed
by Western countries.
to the supplies of agricultural
individual documents
commodities, fertilizers,
with Turkey and the United
medicines and medical devices.
Nations. Furthermore,
Russia and representatives
The USA rejected duties
of the United Nations Secretariat
on nitrogen-based fertilizers
met in Istanbul on 22 July
from Russia
The US International Trade
2022 to sign a Memorandum
of Understanding on promoting
Commission (ITC) recognised
Russian food products
that imports of urea ammonium
and fertilizers to the world
nitrate (UAN) solutions from
markets. On 17 November 2022,
Russia and Trinidad and Tobago
the grain deal was extended
did not hurt American producers.
for a period of 120 days.
The investigation was launched
in summer 2021 after a petition
from CF Industries Holdings,
the nation’s largest producer
of said fertilizers.
if this was needed strictly
on all types of mineral fertilizers
on the impact of sanctions
to bankroll shipments of food
to be charged at a rate of 23.5%
on food security in Africa.
and fertilizers.
of the price above USD 450 per
The resolution urges to create
tonne.
with an immediate effect
a Fact-Finding Mission
New Common Agricultural
to assess the impact
Policy
On 1 January 2023, the New
of current sanction-
related fertilizer shortages
Common Agricultural Policy
and to address themselves
of the European Union
to the relevant governments
came into effect. This Policy
and institutions responsible
will be key to securing
for the shortages.
the future of EU’s agriculture
and forestry, as well as achieving
the objectives of the European
Green Deal.
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STRATEGIC REPORT
Market overview
Estimate of changes in consumption by region, mt nutrient
In 2022, amid complications
Direct and indirect sanctions
Persisting restrictions
in the global geopolitical situation,
against mineral fertilizer
on fertilizer exports from
the international fertilizer market
producers in Russia and Belarus,
China, which have been
faced a number of challenges that
which until then accounted
had a predominantly negative
for a total of 23% (49.4 mt)
in place since late 2021
as a way to make sure
impact on the fertilizer industry
of global trade volumes (global
the domestic market remains
and farmers as the end consumers.
exports).
well-supplied.
The key negative drivers include:
Disruptions in natural gas
As a result of all of the above,
supplies and a marked rise
global prices for fertilizers
in global prices for natural
gas and other energy
surged, especially in 1H 2022,
reaching levels above record
sources. Natural gas is the key
highs for some of the fertilizer
raw material component
types.
in the production of nitrogen-
based fertilizers, and a strong
The spike in global prices
rise in natural gas costs,
made fertilizers less affordable
especially in Europe, caused
(fertilizer/crop price ratio),
production capacities
dampening demand
to be scaled down and closed.
for them.
East Asia
Southeast Asia
South Asia
Middle East
Latin America
North America
Africa
CIS
Europe
(1.9)
(0.7)
(1.0)
(0.2)
(2.2)
(2.7)
(1.0)
0.4
(2.7)
(4%)
(4%)
(3%)
(4%)
(7%)
(10%)
(12%)
(12%)
6%
Nitrogen-based fertilizers, N
Phosphate-based fertilizers, P₂O₅
Potash fertilizers, K₂O
Phosphate rock and phosphate-based fertilizer
market
Phosphate rock prices, FOB Morocco (31–33% P2O5), USD/t
Preliminary estimates by consulting
agencies and industry analysts1
suggest that in 2022, global
was most pronounced in Europe
(down by 2.7 mt nutrient, or 12%,
y-o-y), North America (down
consumption of mineral fertilizes
by 2.7 mt nutrient, or 10%),
stood at 192 mt nutrient, a reduction
and Latin America (down by 2.2 mt
of 6%, or 13 mt nutrient, against
nutrient, or 7%). In Africa and Asia,
2021. Consumption of nitrogen-
consumption dropped by 12%
based fertilizers was down by 3 mt
and 3–4% respectively.
of N (–3%) to 111 mt; for phosphate
fertilizers, it shrank by 3 mt of P2O5
(–6%) to 47 mt, and for potash
fertilizers, consumption fell by 6.0 mt
of K2O (–15%) and reached 35 mt.
In the CIS, there was price
control on our priority market,
an uptick by 0.4 mt, or 6%,
Global fertilizer consumption
estimates, mt nutrient
2022
2021
2020
2019
2018
192
205
201
192
192
202 mt
–7% vs 2021
global production
of phosphate rock in 2022
(according to preliminary
estimates)
350
300
250
200
150
100
against 2021 on the back of export
Nitrogen-based fertilizers
restrictions imposed against
Phosphate-based fertilizers
In terms of geography, consumption
Russian and Belarusian products
Potash fertilizers
of mineral fertilizers declined across
and refocusing of export supplies
all regions except for the CIS (not
towards the domestic market.
including Ukraine). The reduction
1 Hereinafter based on data by CRU, Argusmedia, Profercy; expert estimates of industry analysts
in Russian and international media.
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
The reduction was driven by weaker
with other African nations. Russia,
with changes in price indices
conditions in the markets
Latin America and the Middle East
in phosphate-based fertilizer markets.
for phosphoric acid, mineral fertilizes
saw no major changes in their
In 1Q–3Q 2022, prices for the key types
and industrial phosphates seen
phosphate rock production volumes.
of phosphate rock were growing
in 2022. The most significant decline
steadily before price correction kicked
in phosphate rock production came
Pricing in the phosphate rock market
in, following the trend for phosphate-
from China and Morocco, along
has the traditional time lag associated
based fertilizers.
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STRATEGIC REPORT
According to preliminary estimates,
was due to concerns over a seasonal
global production of complex
shortage of fertilizers after export
phosphate-based fertilizers (DAP +
restrictions were imposed by the key
MAP) in 2022 reached 55 mt, a 6 mt
supplying nations (direct or indirect
(10%) reduction y-o-y that reflects
sanctions against products from
temporary weakening of demand
Russia and Belarus; China’s
for mineral fertilizers in general
limitations on exports to benefit
in 2022. The bulk of the production
the domestic market). In 2H 2022,
decline was seen in China, Morocco,
global prices for phosphate fertilizers
and the USA. Global production
saw correction amid weaker demand
of complex NPK fertilizers is also
in the key importing markets,
expected to go down by 5–7 mt
including Brazil, USA, and Europe.
to 92 mt in 2022.
Global trade in DAP/MAP in 2022
Global DAP/MAP prices in 2022, FOB Baltic, USD/t
was down by 5 mt, or 17%, to 25
mt y-o-y.
The most significant drop in DAP/
MAP imports was seen in Europe
and North and South America,
with the trend only partially offset
by higher DAP imports to India.
Global imports of NPK fertilizers
shrank by 2 mt to 16 mt, driven
mainly by Europe and Africa’s weaker
demand for import.
In 1H 2022, phosphate-based
fertilizer prices reached record
highs of USD 1,200–1,300 per tonne
(CFR)1 in sales markets, which
1,400
1,200
1,000
800
600
400
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
25mt
–17% vs 2021
global trade in DAP/MAP
in 2022, according
to preliminary estimates
Global NPK (15:15:15) prices in 2022, FOB Baltic, USD/t
900
800
700
600
500
400
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
1 CFR (Cost and Freight)
Nitrogen-based fertilizer market
In 2022, the global fertilizer market
According to preliminary estimates,
In 2022, the global urea market
was under pressure from surging
global production of urea expanded
remained highly volatile, with price
and persistently high natural
by 4 mt (2%) to 175 mt in 2022. Lower
fluctuations between all-year highs
gas prices in Europe, which
output in Western and Eastern
and lows reaching as much as 100%
caused a reduction in domestic
Europe (down by 3–4 mt) was offset
and above. Changes in the urea
production of nitrogen-based
by production ramp-up in Africa,
pricing environment reflect
fertilizers in Europe and contributed
North America and Asia (up
the natural gas market volatility,
to their substitution with imports.
by over 7 mt combined), including
importer concerns over potential
The launch of new facilities in West
by new capacity launches in Nigeria,
reductions in urea exports from
Africa and Southeast Asia, coupled
India, and Brunei.
with increased utilisation of existing
Russia, and irregularities in seasonal
demand from the key sales markets
capacities in countries with their
Global urea trade volumes in 2022
of South Asia and Latin America.
own cheap raw materials (natural
stayed virtually flat at some 53 mt.
gas), managed to offset lower
A 2.5 mt uptick in imports of urea
production volumes in Europe
to Europe was offset by weaker
and other regions with high energy
import demand seen in Latin America
costs.
and Asia.
Global urea prices in 2022, FOB Baltic, USD/t
175 mt
+2% vs 2021
global production of urea
in 2022 (according
to preliminary estimates)
1,000
800
600
400
200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
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STRATEGIC REPORT
Potash fertilizer market
The key driver in the potash fertilizer
Preliminary estimates show
The downward trend in export supply
market was the introduction
global production of potassium
drove up prices for potassium chloride
of sanctions against exports
chloride to drop by 10 mt (14%)
in 1H 2022, causing them to reach
of potassium chloride from Russia
to 61 mt, with global trade
as much as 1,000 USD/t and above.
and Belarus.
in this fertilizer also going down
High potassium chloride prices made
These two nations account
of lower shipments f rom Russia
driving a reduction in demand
for around 40% of global production
and Belarus.
and global price correction in 2H 2022.
by 10 mt (18%) on the back
the fertilizer less affordable for farmers,
and exports.
Potassium chloride prices in 2022, FOB Baltic, USD/t
61mt
–14% vs 2021
global production
of potassium
chloride (according
to preliminary
estimates)
1,000
800
600
400
200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Strategy
Strategy to 2025
In 2022, PhosAgro continued to make
Despite the changing external
Our record-high production of 11.1 mt
good progress towards the goals
environment, we consider most
of mineral fertilizers and other
of its Strategy to 2025 approved
objectives of the Strategy to 2025
chemical products in the reporting
by the Company’s Board of Directors
to be relevant and achievable
year is an important milestone along
in 2019.
and continue to implement respective
this journey.
projects and programmes.
Reduced
emissions
and water use,
increased waste
recycling
Zero workplace
incidents
and injuries
Contribution
to the UN
Sustainable
Development
ESG
Sustainability principles are deeply
integrated in all of the Strategy to 2025
aspects
Increasing sales
in priority markets
• Expansion of the foothold
in premium markets
• Higher share of premium
fertilizer brands
in the sales mix
Boosting logistics
efficiency
• Alignment of production
and sales
• Reduction of per unit
transportation costs
• Developing port
infrastructure
Operational efficiency
and production growth
• Capacity expansion
• Higher self-sufficiency
in feedstock
• Stronger operating
efficiency
For more information, see page 56
For more information, see page 62
For more information, see page 65
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STRATEGIC REPORT
Capital investments
New promising projects
A disciplined approach
to CAPEX
The minimum project IRR
of 15%
Annual CAPEX budget of up
to 50% of EBITDA
More efficient working
capital management
Breakdown of CAPEX1, RUB bln
Expenditures
2020 (actual)
2021 (actual)
2022 (plan)
2022 (actual)
2023 (plan)
Investment projects
Maintenance
Non-industrial construction
Total
23.8
10.4
2.1
36.3
30.0
10.8
1.1
41.9
23.6
27.6
2.0
53.2
24.1
27.0
2.2
53.2
24.2
29.0
4.0
57.1
CAPEX funding in 2020–20231,
RUB bln
Details of key investment projects in 2022,
RUB bln
2020
(actual)
2021
(actual)
2022
(actual)
Despite the changes in the external
uncertainty. We continue
reviewed scenarios, and aim
environment, in 2022 we continued
to greenlight those high-potential
to promote further development
to develop an updated Strategy
projects that offer significant
in line with the Company’s strategic
to 2030, however, this exercise
economic and environmental
priorities – progressive production
will take us longer than expected
benefits, meet the criteria adopted
growth, innovative and ESG-compliant
due to dramatically increased
by the Board of Directors as part
products and processes, and operating
of the Strategy to 2025 for the key
efficiency.
Project
Construction of crushing
and delivery unit No. 4 (CDU-
4) at the Rasvumchorrsky mine
(Kirovsk)
Completion
2022
Targets
>100%
IRR
Ore delivery from
underground
up to
mt
3.5
of ore per year
Investments
RUB 0.8 bln
Status
Completed successfully.
In August 2022, CDU-4
was commissioned
at the Rasvumchorrsky
mine for ore delivery from
underground
21.2
ESG agenda
6.3
5.3
2.5
1.9
5.2
Development of the Volkhov branch
of Apatit (phase 3 – construction of a
unit to produce water soluble MAP)
Construction of +10 m level at the
Kirovsky mine
Development of the Vostochny mine,
Koashvinsky open pit and Njorkpahk
deposit (Kirovsk)
Development of the Balakovo branch
of Apatit (phase 2)
Other key projects
36.3
41.9 53.2
CAPEX2
84.3
192.1
266.9
Adjusted EBITDA
43% 22% 20%
CAPEX / adjusted
EBITDA
1 Excluding capitalised repairs.
2 Key investment projects excluding capitalised repairs.
Addressing climate issues,
environmental efficiency, energy
impact. In 2022, we created
a methodology for incorporating
the Company's environmental
footprint through specific initiatives.
and resource saving is integral
the carbon price into the system
to the Company’s Strategy
for evaluating the climate impact
Stable and successful home regions
to 2025. Every addition to our
as a factor in our final investment
are a key driver of PhosAgro Group's
production capacities is designed
decisions. This methodology
sustainable development. We
to employ the best available
was approved in early 2023. In 2020,
implement our social investment
techniques and operated in strict
the Board of Directors completed
strategy through promoting efficient
compliance with the applicable
the integration of PhosAgro’s
and successful cooperation with a
sustainability standards. PhosAgro's
climate and environmental
broad range of partners. As a reliable
framework for assessing
agendas into its business strategy
long-term partner, we create stable
promising investment projects
by approving Climate and Water
and well-paid jobs for local people,
is based, among other criteria,
strategies that set measurable,
provide good education and place
on their potential environmental
achievable targets for reducing
regular orders with local businesses.
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STRATEGIC REPORT
Strategic goals
Targets — 2025 / Status — 2022
Increasing sales in priority markets
Expansion of the foothold in premium markets
Sales volume mt:
Russia and the CIS
3.7 mt / 2.6 mt
American countries
3.5 mt /
2.7
mt
Number of distribution and logistics centres
35/33
Total storage capacity
>650 kt /821 kt
Liquid complex fertilizer storage capacity
62 kt /
74 kt
Operating efficiency and production
Capacity expansion
Phosphate rock production
11.1 mt / 10.9 mt
Phosphate rock processing
8.4 mt / 8.7
mt
Mineral fertilizer and feed phosphate production
11.6 mt/ 10.8 mt
Boosting logistics efficiency
Reduction of transportation costs
Alignment of production and sales
Increased reliance on own rolling stock.
Use of innovative railcar fleet
Rail infrastructure throughput at key production sites:
28.3 mtpa / 25.9 mtpa
Target achieved or exceeded
Progress
Higher share of premium fertilizer
brands in the sales mix
Share of complex fertilizers
(NPK/NPS/PKS) in total output
43.1% (5 mt) /
33.5%
(3.7 mt)
Maintaining high feedstock self-efficiency
Ammonia
Sulphuric acid
Ammonium sulphate
76% / 76%
91% / 92%
75% / 51%
Progress
Stronger operating efficiency
Implementation of organizational development projects in line
with the BAT and sustainability criteria
Progress
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STRATEGIC REPORT
Project
Completion
Investments
RUB 3.0 bln.
Status
Completed successfully
Construction of a heat and power
plant in Volkhov
2022
Targets
Power to be generated
in 2023:
249 mln kWh ,
including 205 mln kWh
generated through
the utilisation of sulphuric
acid production steam
GHG emissions
to be reduced by
77 kt of CO2-eq. per
year
In 2022, the Volkhov branch
successfully completed
a project to build a new
sulphuric acid facility
with a heat and power plant.
The commissioning of a heat
and power plant using process
steam from the new sulphuric
acid facility will help to reduce
both the cost of purchasing
electricity from third-party
suppliers and greenhouse gas
emissions.
The new heat and power
plant leverages the most
efficient environmental
protection technologies
and solutions. In particular,
it uses cooling towers
with a prefabricated
metal basin raised above
the ground, allowing
its integrity to be monitored
and preventing hidden
water leaks into the ground.
The water treatment system
relies on a state-of-the-art
treatment technology based
on reverse osmosis. As part
of the HPP project, we also
upgraded the site’s storm
water collection and treatment
system, which now includes
an additional treatment unit
used to bring the make-up
water quality in line
with the water circulation cycle
requirements. This makes
it possible to supply water
to the HPP and sulphuric
acid production facility while
maintaining the closed water
circulation cycle of the entire
site, eliminating the discharge
of waste water into water
bodies.
Increasing sales
in priority markets
PhosAgro Group is successfully increasing
the profitability of its sales by active involvement
in the most high-margin markets and through
boosting sales of premium mineral fertilizer grades,
primarily complex fertilizers.
Sales of mineral
fertilizers and feed
phosphates, kt
2022
STRATEGY TO 2025
10,954
2,571
Russia and the CIS
2,239
Europe
2,651
American countries
3,493
Other
11,555
3,700
Russia and the CIS
3,100
Europe
3,500
American countries
1,255
Other
Targets 2.4, 12.4, 15.1
Promoting and raising
awareness about best
farming practices and
developing the service
model
Targets 2.4, 13.1, 13.2
Producing mineral fertilizers
with micronutrients which
enhance the quality of soils
as natural sinks of СO2 and
help adapt to climate change
Targets 2.4, 12.4
Expanding sales of eco-
efficient mineral fertilizers
and developing innovative
plant nutrition systems
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STRATEGIC REPORT
to maintain premium margins
Progress towards our targets
Mineral fertilizer and feed phosphate sales mix, kt
Expansion of the foothold
in premium markets
despite largely diverting its exports
to new markets amid restrictions
The ongoing expansion of storage
The strategic flexibility of PhosAgro’s
on fertilizer supply from Russia
and logistics capacities in Russia
production and logistics capabilities
imposed by several countries
is in line with our strategy.
achieved in previous years as a result
due to geopolitical reasons. We also
of a robust investment programme,
remain strongly committed to our
has enabled the Company
home market.
Distribution centres
Total storage capacity, kt
Liquid complex fertilizer storage
capacity, kt
2020 (actual)
2021 (actual)
2022 (actual)
Strategy to 2025
29
679
52
31
765
66
33
821
74
35
>650
62
From 2018 to 2022, a total
additional services totalled almost
for dual fertilizer grades continued
of over RUB 3.2 bln was invested
RUB 160 mln.
in the development of the Russian
to prevail in 2022 due to the superior
growth of the markets historically
Urea / AN / AS
MCP
APP
NPK/PK/PKS
MAP/DAP
Total
Share of complex fertilizers, %
2020 (actual)
2021 (actual)
2022 (actual)
Strategy to 2025
2,286
379
200
3,887
3,203
9,955
39.0
2,495
405
206
3,586
3,565
10,257
35.0
2,551
349
111
3,670
4,272
10,953
33.5
2,620
472
213
4,980
3,270
11,555
43.1
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Innovative products
developed by PhosAgro
Fertilizers
with micronutrients, kt
Sales of fertilizers introduced
over the last five years from 2018
to 2022 exceeded RUB 37.3 bln,
or 8% of total sales of the Company’s
chemical products. The Company’s
ability to maintain a high share
2023
2022
2021
1 533,3
1 329,6
1 691,1
1 554,1
environmental and biologicall
performance. Research carried out
jointly by PhosAgro and the Russian
State Agrarian University – Moscow
Timiryazev Agricultural Academy
proved a significant increase
in the uptake of nitrogen and other
key nutrients from coated fertilizers,
higher grain yields, improved
crop quality, and better physical
properties of the fertilizers. Unlike
polymer coatings developed
by other companies, the coatings
regional network. In 2022,
In 2023, the Company plans
focused on these types of fertilizers.
of new grades relies on the strong
20201
the number of the network’s
to focus on further expanding
The flexibility of our production
distribution centres increased
the distribution network, developing
assets enables us to respond swiftly
to 33, while the total storage
existing and launching new logistics
to changes in the market demand,
R&D capabilities of NIUIF
and PhosAgro Innovation Centre
and the flexibility of production
Actual
Plan
capacity exceeded 800 kt, including
centres in key agricultural regions
while maintaining full capacity
capacities achieved through
Biological and biologised mineral
used by PhosAgro do not lead
74 kt for the transhipment
of Russia, enhancing the service
utilisation.
of liquid mineral fertilizers (a new
offering, and creating a unified
a fundamental overhaul in recent
years. All of these give PhosAgro
fertilizers
PhosAgro Innovation Centre also
to the release of microplastics
and are therefore not harmful
record for Russia). We also
system of chemical soil analysis
Following significant changes
a competitive edge and help
focuses on developing innovative
to the environment. Based
focused on making efficient
capabilities within its distribution
in the geopolitical and business
the Company meet the growing
biostimulants and biologised mineral
on the results of our research,
use of our packaging capacities,
network. To this end, we are building
environment, PhosAgro will
demand for specific grades that
fertilizers under the Green One label
in 2022 we received a patent
with the packaging volume doubling
an in-house fleet of vehicles
revise its strategic sales targets
are best suited to certain crops, soils,
for eco-friendly agricultural products.
for the invention “A Method
in 2022.
equipped with soil samplers at our
for the share of products sold
and farming practices.
to Produce Slow and Controlled-
distribution centres to enable GPS-
in premium markets and the share
With limited soil resources
Release Fertilizers”, prepared
PhosAgro is successfully developing
based chemical soil analysis.
of premium brands in total sales,
its service model. In 2022, PhosAgro-
Region launched commercial
as part of its updated Strategy
to 2030.
service operation of its grain facilities
at the distribution centre in Kalach
Higher share of premium
fertilizer brands
(Voronezh region). At the end
of the year, the service revenue from
As the Company forecasted
in its 2021 integrated report, demand
Fertilizers with micronutrients
Fertilizers with micronutrients
and significant population growth,
related publications and presented
biotechnology is one of the most
reports at several international
can be accumulated by plants
effective solutions to ensuring global
scientific and technical conferences.
and are considered one of the most
food security by boosting crop yields
Two grades of coated fertilizers
potent ways to combat malnutrition
without damaging ecosystems.
are now pending registration
and reduce nutrient deficiencies.
The Company has maintained
a significant share of such fertilizers
Coated fertilizers
The Company is developing fertilizers
and the preparatory process
to launch their commercial
production is underway.
in its total product mix in recent
coated with a monocalcium
years and expects it to grow further
phosphate and dicalcium phosphate
from 12% in 2022 to 13.6% in 2023.
mixture and boasting improved
1
Including additional fertilizers
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STRATEGIC REPORT
PhosAgro’s digital
ecosystem
In 2022, the Field Trials section
We made significant efforts
on our website became
an important element
to improve the efficiency of online
communication with potential
In 2022, the target
audience had
of communication with our
employees. In particular, from January
customers in the domestic market.
to March 2022, we redesigned
over 10 million interactions
It features 48 trials performed
the Career section of our website
in more than 20 regions of Russia
and upgraded its content,
and was visited by some 20,000
adding separate pages for each
users, up tenfold compared to 2021.
of the vacancies and launching online
promotion.
As a result, the Career
section's audience grew by
136%
and the Company hired
650 employees engaged
via this online channel,
a fifteenfold increase y-o-y
with PhosAgro’s digital
ecosystem. As at the end
of the year, the number
of active users of PhosAgro’s
digital services exceeded
47,000, including:
914 active personal
accounts registered
with the Russia/CIS
online trading platform;
more than 30,000
active users
of the AgroResult
mobile app (each
user makes three
settlements
on average);
more than 17,000
subscribers to the Pro
Agro communications
platform (YouTube, VK,
Zen).
The following results
were achieved as part
of the Russia/CIS
online trading platform
promotion:
conversion from
visit to order
for the Russia/
CIS online trading
platform in 2022
increased from 3%
to 3.7%;
a total of 1,884
online fertilizer
purchase orders
were registered (up
29% y-o-y).
To further improve our Agro
Over the past year, we released
Calculator, we introduced
11 playlists and arranged
recommendations in 2022
a number of blogger
for seasonal nutrition systems
endorsements.
covering sunflower and spring
barley, while also completing
integration with Cropwise
(Syngenta).
In 2022, we launched the full
version of the AgroResult mobile
app featuring a fertilizer catalogue,
a product card, a shopping cart,
biometric authentication (face
and fingerprint recognition),
order history, etc. On top of that,
the app was added to the Huawei
and Xiaomi app stores.
In 2022, we launched the Pro Agro
communication platform, which
includes an agronomic YouTube
channel, a VK community
and a Zen channel.
User statistics
subscribers
>17 thousand
and nearly 14
mln
views show that in 2.5 years
we were able to create
a popular agronomic chan-
nel highlighting PhosAgro’s
expertise in plant nutrition
systems.
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STRATEGIC REPORT
Boosting logistics efficiency
Amid the sanctions pressure
finished products transportation
• higher cost efficiency, as corporate
and artificially imposed restrictions
volumes totalled 23.2 mt, up
railcars are cheaper in use than
of non-market nature, the key focus
3% against 2021. Rail shipments
third-party rolling stock;
of PhosAgro’s logistics operations
are also subject to key measures
• positive environmental effect,
shifts to ensuring uninterrupted
aimed at improving the reliability
as the use of innovative rolling
supplies of the Company’s products
of product deliveries and reducing
stock with higher cargo
to consumers in Russia and abroad.
transportation costs. Ensuring
tonnage per railcar and train
This means meeting the set delivery
a secure supply is a top priority
reduces the negative impact
deadlines and preventing the risks
for us.
of shipping delays and the products
being seized or blocked. PhosAgro
In 2019–2021, we significantly
on the environment per tonne
of cargo.
also seeks to achieve the maximum
increased reliance on our own rolling
As part of the fleet renewal
cost efficiency of its logistics
stock, buying mostly innovative
programme in 2022, we signed
operations in these conditions.
railcars with a higher capacity
contracts for the delivery,
Reduction
of transportation costs
and longer run life. Increased reliance
in 2023, of 400 mineral
on PhosAgro’s own rolling stock
hoppers, 65 tank cars and 6,000
means:
specialised containers intended
• enhanced safety of operation
for the use in seaports. Further
and more reliable supplies,
acquisition of various types
Rail transport accounts for the most
as PhosAgro’s production
of rolling stock in 2023–2027 will
part of the Company’s domestic
and logistics processes are less
be based on a robust analysis
shipments (ca. 99%). In 2022,
dependent on third-party services;
of the Company’s actual needs.
Other areas of focus to ensure
securing tariff preferences
The share of long trains (more
transportation security
for the shipment of liquid sulphur
than 56 cars per train) on all
and optimise transportation costs
and sulphuric acid;
transportation routes was 46%
in 2022 included:
in 2022, up 4 p.p. compared
signing contracts with key
of receiving subsidies for export
in this area is associated
transhipment ports on new
transportation of industrial
with the transition to 100-car
terms;
products by rail in the period
trains, which will help boost
verifying the possibility
to 2021. Further potential
from 2022 to 2024 according
economic efficiency and safety
developing mutually
to the Decree of the Government
of the Company’s shipments,
beneficial terms
and concluding
of Russia No. 1347 On State
while also further reducing
Support of Russian Industrial
the environmental impact per
agreements with Russian
Organisations in Order
tonne of cargo.
Railways to co-finance
to Compensate Expenses
the development of transport
for Transportation of Industrial
infrastructure at railway
Products dated 28 July 2022.
stations adjacent to Apatit’s
production sites: Volkhov
branch – final stage, Balakovo
branch – planning stage;
Target 12.4
Managing chemicals and
wastes wisely throughout
their life cycle, including
transportation
Target 9.1
Developing rail infrastructure
and contributing to the
development of local
communities through our
value chain
Enhancing port network,
along with offering
employment opportunities,
developing infrastructure
and implementing social
investment programmes
Alignment of production
and sales
transportation. Thanks to our
investment programmes, we have
been able to expand throughput
Rail infrastructure throughput
capacity to or above target levels
capacity at the Company’s
over the last three years.
fertilizer hubs is critical to efficient
Cherepovets
Volkhov
As the Kryolite station
has come on stream, long
trains (71 railcars and longer
vs the standard 56) now
run along the Apatity–
Cherepovets–Ust-Luga–Apatity
loop. With this loop, created
under an ambitious joint
project with Russian Railways,
long trains accounted
for ca. 73% of PhosAgro
Group’s 2022 transportation
volumes along this route.
The decision to electrify
the Kryolite railway station
enabled PhosAgro to stop
using diesel locomotives, thus
securing positive economic
and environmental effects.
Balakovo
In 2022, due to an upgrade
in Balakovo we continued
planning the development
of infrastructure that
would facilitate shipments
of a new feedstock
and allow for increased
transportation of finished
products. It is planned that
the throughput capacity
of the Balakovo site’s railway
infrastructure will increase
from the current 6.7 mtpa
to 9 mtpa by 2025, which
exceeds the target set
in the Strategy to 2025.
In 2022, the rail infrastructure
throughput capacity
at the Volkhov site was ramped
up to 3.8 mtpa from 2.64
mtpa as at the end of 2021.
The project is on schedule,
with the first stage already
completed. We have reached
an agreement with Russian
Railways to co-finance
the construction of public
infrastructure as part
of the second stage.
Progress towards our
targets of rail infrastructure
throughput, mtpa
Cherepovets site
Balakovo branch
Volkhov branch
16.5
15.4
15.4
15.2
12.0
8.0
6.7
6.7
6.7
6.7
3.8
3.8
3.8
2.6
1.6
Strategy to
2025
2022
(actual)
2022
(plan)
2021 (actual)
2020 (actual)
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STRATEGIC REPORT
Developing port
infrastructure
In addition to developing logistics
and sales infrastructure across
Russia, our priority market,
we are working to increase
the reliability and efficiency
of our exports by both reducing
transportation costs and providing
state-of-the-art transhipment
capacities.
Our strategic aim is to develop
and maintain a balanced port sales
infrastructure in terms of costs
and reliability, capable of handling
at least 8 mtpa of fertilizer exports.
To achieve this target, in 2022
the Company revised a number
of transhipment contracts covering
the required export volumes
and effective through 2025.
As of today, we have basically
secured the required transhipment
capacities in line with the 8 mtpa
target.
The ports key to PhosAgro’s
operations are located in the North-
West of Russia. These include
European Sulphur Terminal
and Petrolesport in the Leningrad
region and St Petersburg,
and Murmansk Bulk Terminal
in Murmansk. The Company also
uses a terminal in Kotka, Finland.
We rely on specialised terminals
and their equipment designed
to mitigate the environmental
impact.
Operational efficiency
and production growth
Progress towards our targets
Despite short-term volatility
In order to respond to stronger
concerns, mineral fertilizer demand
demand, PhosAgro focuses
is set to demonstrate solid growth
on expanding capacities to produce
in the long term.
its key products.
Delivery our production targets, mt
2020
(actual)
2021
(actual)
2022
(plan)
2022
(actual)
2023
(plan)
Strategy
to 2025
2.4
7.6
2.4
7.9
2.5
8.3
2.5
8.2
10.5
10.7
10.5
10.9
7.3
8.0
8.4
8.7
2.5
8.4
11.0
8.9
2.6
8.9
11.1
8.4
Production of nitro-
gen-based fertilizers
Production of phos-
phate fertilizers
and feed-grade MCP
Production of phos-
phate rock
In-house processing
of phosphate rock
Higher self-sufficiency
in feedstock
of the Company’s needs for raw
materials required for phosphate
Strong vertical integration
mineral fertilizers, we are ramping
is PhosAgro’s major competitive
up the production of other key
advantage. With our phosphate
commodities, thus increasing our
rock reserves covering 100%
self-efficiency in feedstock.
Feedstock self-efficiency
Ammonia, %
Production, mt
Consumption, mt
Sulphuric acid, %
Production, mt
Consumption, mt
Ammonium
sulphate1, %
Production, mt
Consumption, mt
2020
(actual)
2021
(actual)
2022
(plan)
2022
(actual)
2023
(plan)
Strategy
to 2025
83
2.0
2.4
93
6.8
7.3
60
0.3
0.5
76
1.9
2.5
95
7.4
7.8
60
0.3
0.5
79
1.9
2.4
91
7.7
8.5
100
0.7
0.7
76
2.0
2.6
92
7.9
8.6
51
0.3
0.6
77
2.0
2.6
93
8.1
8.7
58
0.3
0.5
76
1.9
2.5
91
7.8
8.6
75
0.7
0.9
1 Failure to meet the self-sufficiency target for ammonium sulphate is due to the fact
that part of the sulphate output (165 kt in 2022) is sold as a commercial product rather
than used for processing into compound mineral fertilizers as per the scenario adopted
in the Strategy to 2025.
Capacity
expansion
Target 12.4
Making eco-efficient
products in line with
sustainability requirements
and maximising the use
of production waste
in further processes
Target 8.3
Maintaining and
developing existing
operations and creating
innovative facilities
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STRATEGIC REPORT
Implementation of high-priority projects
Project
Development of the Volkhov
branch of Apatit (phase 3 –
construction of a unit
to produce water soluble
MAP)
Investments
IRR 18%
Total
Completion
2023
Targets
Water soluble MAP
output of
43.5 ktpa
RUB 33.7 bln
incl. soluble MAP:
RUB 2.9 bln
Status
Phase 3 (construction of a water
soluble MAP facility) start-up
operations commenced
in December 2022, with the first
product batch received
in January 2023.
Project
Increase in output of feed-
grade monocalcium
phosphate (MCP) by 53 ktpa
(Balakovo)
Completion
2023
Targets
Increase in feed
phosphates output by
53 ktpa
Investments
IRR
17%
RUB 3.3 bln
Status
Upgrade of wet-process
phosphoric acid unit No. 4
(WPA-4) was completed.
Work to upgrade the mineral
salts unit (MSU) is in progress.
Investments
IRR n/a
RUB 6.6 bln
Status
Contracts for the supply of main
process equipment were signed;
construction and installation
work is underway and slated
for completion in 4Q 2023.
Project
Project
Upgrade of the SK-20
sulphuric acid technological
system with replacement
of the contact process unit
(Balakovo)
Completion
2023
Targets
Increase in sulphuric acid
output by
350 ktpa
Capacity ramp-up
of the Am-3 unit to 107%
(Cherepovets)
Completion
2022
Targets
Increase in ammonia
output by
53 ktpa
Investments
IRR
28%
RUB 0.9 bln
Status
In May 2022, the target
capacity of 2,350 t/day
was achieved. In 3Q 2022,
the entire set of works
was completed.
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STRATEGIC REPORT
Operating efficiency
improvements
At PhosAgro, we are implementing
a whole range of projects
and initiatives to improve our
technologies and organisational
approaches and streamline
production processes.
In 2022, three projects
were successfully implemented
by the Company to improve
the performance of Apatit’s
business units. They covered all
of the PhosAgro’s production
sites and produced an overall
economic effect of ca. RUB 1. 8 bln
in the reporting year.
Economic effect in 2022
RUB 1,772.6mln
Kirovsk
Volkhov
Cherepovets
Balakovo
Completion
2021–2022
Key project initiatives
•
Increasing phosphoric
acid output by reducing
unscheduled shutdowns
• Reducing end-to-end
phosphate rock losses
• Ensuring stringent
compliance
with preventive
maintenance schedules
at ANBP-2 and ANBP-3
Completion
2021–2022
Key project initiatives
•
Introducing production
culture monitoring across all
business units
• Reducing scheduled
•
preventive maintenance hours
by an average of 20%
Implementing tools aimed
at improving operational
efficiency: punchlists,
problem-solving boards,
equipment checklists, etc.
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STRATEGIC REPORT
Strategic risks
Risk appetite
In pursuing its goals,
the Company’s risks and also
the Company is guided by risk
as part of approving its strategy,
appetite, or the level of risk
budget and investment
it deems acceptable. Risk
programme and considering other
appetite is an integral part
matters within the Board’s scope
of strategic and operational
of authority. Risk appetite is then
decision-making. The Board
reflected in the Company's specific
of Directors defines the overall
procedures and key performance
risk appetite when reviewing
indicators.
Strategic risks
The Company aims to identify
terms and conditions to sell
and use opportunities that open
its products. At the same time,
up in the market as a result
the Company’s business model
of changes in the external
is designed in a way that strikes
environment. The Company
an optimal balance between
quickly responds to the changing
sustainable development
operating landscape and targets
and operational efficiency.
priority markets that offer the best
Production risks
The Company aims to minimise
a safe working environment
unscheduled downtime
is the Company’s absolute priority.
in production while at the same
The Company makes every effort
time making sure that its processes
to minimise the negative impact
and end product quality meet all
of its production processes
applicable requirements. Creating
on the environment and climate.
Robust risk management is a sine qua non for PhosAgro to achieve its strategic
goals and sustainable development. We continuously develop and improve our
risk management framework, which enables us to identify external and internal
risks in a timely manner and develop effective mitigants.
Financial risks
As a reliable borrower,
FX risk. We are not ready to take
the Company seeks to raise
on credit risk related to our
funding on the most attractive
counterparties: in our relations
terms available in the market.
with them, we either seek
The Company’s core operations
to secure terms and conditions
are FX-linked, so we use natural
we see as most beneficial to us
hedging methods to manage our
or use risk transfer strategies.
Operational risks
The Company aims to prevent
projects, the Company works
any disruptions to its business
to deliver against strategic
processes and IT infrastructure
priorities and key performance
performance and to also secure
indicators while factoring
maximum protection from cyber
in potential deviations as a result
threats and fraud. When planning
of changing external factors.
and implementing its investment
Regulatory risks
The Company aims to remain
in order to minimise any non-
100% compliant with all applicable
compliance risk. In addition to laws
statutory regulations, including
and regulations, the Company
those related to taxation.
operates in line with corporate
As part of industry associations,
values and ethical principles
the Company is involved
so as to minimise potential
in developing regulatory initiatives
reputational damage.
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STRATEGIC REPORT
KEY RISKS ASSOCIATED WITH PHOSAGRO’S ACTIVITIES
№ Risk
Description
Risk mitigants
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4
10
1
17
18
6
21
15
3
7
11
19
9
8
13
12
14
16
5
20
22
Low
Probability
Medium
High
STRATEGIC RISK
FINANCIAL RISK
PRODUCTION RISK
1
Strategic
planning risk
2
Failure to deliver
on SDGs
3
Social risk
4
HR risk
19
Climate risk
20
Infectious
disease risk
21
Sanctions risk
16
Credit risk
17
Currency risk
18
Commodity risk
22
Interest rate risk
5
6
Production risk
Health and
safety risk
7
Environmental risk
REGULATORY RISK
OPERATIONAL RISK
10
Tax risk
8
Project risk
13
Regulatory risk
9
Business processes and systems risk
14
Corruption risk
11
Information security risk
15
Reputational risk
12
Economic security risk
1
Strategic planning
GRI
201, 202
2
Failure to deliver
on ESG and sus-
tainable develop-
ment goals
GRI
203, 308, 414
Risk associated
with the adoption
of an incorrect strate-
gic decision and ensu-
ing management
decisions, resulting
from an erroneous
assessment of internal
and external factors
that have an impact
on the Company’s
prospects for devel-
opment and its abil-
ity to achieve strategic
objectives
Risk factors include
failure to set ESG tar-
gets and Sustainable
Development Goals
(SDGs) or update
them in a timely man-
ner, as well as the lack
of resources and pro-
cesses necessary
to achieve these tar-
gets and goals
3
Social
GRI
413, 401
Risk of an adverse
social environ-
ment in the regions
of operation
The Company actively monitors both inter-
nal and external factors that could impact
the strategy. PhosAgro also takes a system-
atic approach to assessing the potential
costs and benefits of new strategic projects
to facilitate and improve the decision-mak-
ing process.
PhosAgro started updating its strategy
to 2030 to reflect the latest changes in the
external and internal environments.
The Board of Directors’ Sustainable
Development Committee helped set
and prioritise SDGs and strategic ESG targets.
To achieve the same, PhosAgro developed
and is successfully implementing the low-
carbon transition plan, the Climate Strategy,
the Water Strategy, the Energy Efficiency
Programme, and other initiatives.
Significant work done in this area has enabled
the Company to materially improve its ratings
and become a leader in ESG. It should be
noted that a result of certain geopolitical
developments, a number of ESG rating
agencies suspended their operations in Russia.
For more information on the Company’s
activities and indicators in this area, see the
Navigator on UN SDGs section on page 14
With its commitment to the principles
of partnership and cooperation between
private business and the government,
the Company runs a number of social
programmes on a proactive basis. Social
projects are designed, among other things,
to support local authorities in promoting
sports and culture, and enhancing the public
utilities and opportunities for growth
in the regions where the Company operates.
Sustainable development in the regions
of operation is one of the key goals
the Company pursues in its community
activities.
For more information on the Company’s
activities in this area, see the Contributing
to Local Communities section on page
234
Risk appetite
Change in the risk
high
medium
low
up
flat
down
Key indicators / risks
materialised / changes
in the risk
Downside deviations
of actual strategic perfor-
mance from targets.
Geopolitical developments
cause greater uncertainty
and as a result increase this
risk..
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of actual ESG and SDG per-
formance from targets.
No material risk events
occurred.
Downside deviations
of actual ESG performance
(social dimension) from
targets.
No material risk events
occurred.
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STRATEGIC REPORT
№ Risk
Description
Risk mitigants
4
HR
GRI
401, 402, 403, 404, 405
Developments
and decisions related
to the hiring, develop-
ment and retention
of employees
PhosAgro runs independent and joint
programmes seeking to train and attract
young talents, including those from
other regions, develop employee skills
and enhance motivation as a way
to improve retention and productivity.
Given the rising number of employees
working from home, the Company has
introduced an online personnel appraisal
system along with additional motivational
arrangements.
For more information on the Company’s
activities in this area, see the People
Development section on page 142
Key indicators / risks
materialised / changes
in the risk
Personnel turnover and skill
mismatch.
No material risk events
occurred.
5
Production
GRI
201, 302
Technical/industrial
disruptions of produc-
tion processes result-
ing in unscheduled
equipment downtime
PhosAgro seeks to ensure uninterrupted
operation of machinery and reduce
unscheduled equipment downtime. To that
end, the Company invests in the construc-
tion and upgrade of equipment and carries
out preventative maintenance and major
overhauls by relying on backup equipment
and a reserve pool of components, accesso-
ries and spare parts.
The Company’s insurance programme cov-
ers the risk of production disruptions.
Unscheduled equipment
downtime.
No material risk events
occurred.
6
Health and safety
GRI
403
Risk associated
with injuries, occupa-
tional illnesses, acci-
dents and incidents
at production facilities,
and non-compliance
with statutory require-
ments in the realm
of health and safety
Workplace injuries
and other incidents.
2022 saw some risks mate-
rialise in terms of workplace
injuries. The Company care-
fully investigated each acci-
dent, with remedial action
plans developed to prevent
their recurrence.
PhosAgro enforces health and safety
in workplaces in line with applicable
laws and global best practices. To that
end, the Company trains staff in health
and safety and regularly checks their
knowledge, promotes safety culture,
and makes sure that all contractors
adhere to the health and safety standards.
In addition, safety audits and inspections
ensure compliance with applicable
regulations and OHSAS 18001 requirements.
Tasks and measures to reduce
the corresponding risks in various Company
activities are defined in its health and safety
documents.
For more information on the Company’s
indicators in this area, see the Health
and Safety Review section on page 168
Key indicators / risks
materialised / changes
in the risk
Exceeding maximum per-
missible levels of negative
environmental impact.
No material risk events
occurred.
№ Risk
Description
Risk mitigants
7
Environmental
GRI
303, 304, 305, 306, 308
Risk of actual and
potential environmen-
tal damage resulting
from the Company’s
operations
The Company has put in place
the Environmental Policy, the Water
Strategy, and the Code of Conduct
for Counterparties setting out key
environmental requirements for suppliers
and contractors. PhosAgro conducts regular
analysis and assessment of its impact
on the environment. The environmental
impact is mitigated through the upgrade
of treatment and warehousing facilities
and the implementation of energy efficiency
programmes. The Company implements
projects to address all the main areas
of environmental impact (water use,
greenhouse gas and other emissions, waste,
biodiversity).
The Company partners with the UNESCO
and the International Union of Pure and
Applied Chemistry (IUPAC) to provide
research grants as part of the Green
Chemistry for Life project seeking to protect
the environment and human health through
energy efficient processes and eco-efficient
technologies based on innovative solutions.
PhosAgro’s investment projects harness
the best available techniques to reduce
unit feedstock and energy costs while
also cutting unit emissions of regulated
substances. The Company discloses its
environmental impact minimisation goals
and performance in line with applicable laws
and as part of global initiatives.
Assessment of environmental factors,
including potential scarcity of water and
other natural resources, is integrated into
PhosAgro's overall risk management system.
For more information
on the Company’s activities in this area,
see the Environmental Review section
on page 190
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STRATEGIC REPORT
№ Risk
Description
Risk mitigants
8
Project
GRI
201
Risk associ-
ated with delays
and budget over-
runs in construction
and upgrade projects,
along with failure
to deliver project effi-
ciency targets
PhosAgro strives to adhere to approved pro-
ject budgets and schedules and to take
a unified implementation approach lev-
eraging a variety of project management
tools. All projects go through a multi-step
review and approval process. For large-scale
and strategically important projects, dedi-
cated project management offices are set
up. The Company regularly monitors pro-
gress against project budgets and deadlines.
Key indicators / risks
materialised / changes
in the risk
Downside deviations
of actual project efficiency
indicators from targets.
No material risk events
occurred. That said, geopo-
litical developments of 2022
caused deviations related
to shipments of imported
equipment. The Company
sets up its business pro-
cesses in a way that makes
sure such risk is mini-
mised, including by rely-
ing on import substitution
efforts.
9
Business
processes
and systems
GRI
402
Inefficiency or disrup-
tion of the Company’s
business processes,
including risks related
to counterparties
and supply chain
PhosAgro seeks to maximise efficiency of all
its business processes and systems.
Business process efficiency reviews are con-
ducted on a regular basis to identify poten-
tial bottlenecks and develop and implement
efficiency improvement initiatives.
The Company strives to minimise the risk
of disruptions in supplies of key materials
and feedstock.
To that end, PhosAgro uses multi-stage ten-
der procedures and enters into long-term
contracts with its most reliable suppliers.
In addition, it continuously works to optimise
the logistics infrastructure and ensure suffi-
cient rolling stock. The Company also moni-
tors its IT infrastructure on an ongoing basis
and carries out a number of initiatives to mit-
igate risks associated with business process
disruptions caused by technological factors
or cyberattacks.
Downside deviations
of actual business process
indicators (by focus area)
from targets.
No material risk events
occurred. That said,
geopolitical developments
of 2022 caused deviations
related to shipments
of imported materials,
use of software,
and performance
of logistics infrastructure
outside of Russia.
The Company sets up
its business processes
in a way that makes sure
such risk is minimised,
including by relying
on import substitution
efforts.
№ Risk
Description
Risk mitigants
10
Tax
GRI
207
Potential claims
lodged by tax author-
ities in response
to the Company’s fail-
ure to correctly file tax
returns or pay taxes
in due time
PhosAgro complies with tax legisla-
tion in the countries where it operates.
The Company tracks all changes (includ-
ing the planned ones) in tax laws, analyses
the law enforcement practices, and seeks
clarifications from the government on taxes.
In addition, law and accountancy experts
are engaged to advise on the administration
of applicable tax laws. The Company also has
a tax monitoring system in place to quickly
identify and minimise tax risks in coordina-
tion with the Federal Tax Service.
Key indicators / risks
materialised / changes
in the risk
Tax claims.
No material risk events
occurred.
11
Information
security
GRI
410
Losses incurred
on the Company’s
property and assets
as a result of unau-
thorised access
to its information sys-
tems or disclosure
of confidential data
Unauthorised disclosure
of confidential data,
unauthorised access
to IT systems.
No material risk events
occurred.
PhosAgro implements a number of ini-
tiatives to prevent unauthorised access
to its information systems and disclosure
of confidential data. A wide variety of tech-
nical and software solutions, including those
based on encryption, are used to control
access to information resources and sys-
tems. Access rights are granted to spe-
cific user groups. There is a clear definition
of what constitutes confidential information
and how it should be handled. The Company
undertakes regular audits to ensure strict
compliance with its confidentiality policy.
The Company’s Board of Directors adopted
the Information Security Policy.
12
Economic security
GRI
410
Losses incurred
on the Company’s
property and assets
as a result of eco-
nomic crimes com-
mitted by employees
or third parties,
including fraud
and theft
The Company takes steps to prevent poten-
tial damage to its property and assets
as a result of economic law infringements,
including, in particular, by introducing access
authorisations to the Company’s administra-
tive and production facilities, clearly differ-
entiating between responsibilities as part
of contract or transaction execution, vetting
counterparties before signing a contract,
and putting in place a dedicated hotline.
Moreover, additional checks are undertaken
by a variety of the Company’s functions.
Theft and fraud incidents.
No material risk events
occurred.
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STRATEGIC REPORT
№ Risk
Description
Risk mitigants
13
Regulatory
GRI
303, 304, 305, 306
Untimely receipt/
extension of licences;
legislative changes
that might bring
about higher cost
of doing business,
restrictive poli-
cies by regulators,
weaker equity story
of the Company and/
or adverse transfor-
mation of the com-
petitive landscape
PhosAgro is in full compliance with appli-
cable laws. To make sure it gets timely
updates on potential legislative changes,
the Company closely tracks initiatives of leg-
islators, the government and regulators,
and takes part in discussing such initiatives
and drafting relevant recommendations
in partnership with professional associa-
tions. The Company prepares and submits
documents in due time to receive or extend
licences required for its business.
Key indicators / risks
materialised / changes
in the risk
Deviations related
to regulatory compliance.
No material risk events
occurred.
14
Corruption
GRI
204, 205
15
Reputation
GRI
206
Corrupt practices, conflicts
of interest.
No material risk events
occurred.
Stakeholder confidence.
No material risk events
occurred.
Losses resulting from
non-compliance
or inadequate com-
pliance with applica-
ble anti-corruption
laws by the Company
or its employees (pen-
alties levied against
the Company by gov-
ernment authorities
and other damages)
Damage caused
to the Company’s
business reputation
as a result of mis-
leading or defam-
atory information
or allegations about
the Company made
publicly available,
leakages of confi-
dential information,
and breaches of busi-
ness ethics on the part
of the Company's
employees
PhosAgro makes sure its facilities and part-
ners fully comply with applicable anti-cor-
ruption laws. To that end, it provides training
in combating corruption and adminis-
trating the anti-corruption law, and pro-
motes zero tolerance towards corruption
among the Company’s employees and part-
ners. Among other things, the Company
has approved the Anti-Fraud and Anti-
Corruption Policy, the Code of Ethics,
and the Regulations on Conflict of Interest.
The Company’s counterparties are obliged
to declare their compliance with anti-corrup-
tion laws.
The Company is a member of the Anti-
Corruption Charter of Russian Business.
In its operations, PhosAgro demonstrates
commitment to transparency by disclosing
all relevant material facts and circumstances.
The Company has adopted an informa-
tion policy and a media engagement policy.
Information about the Company is availa-
ble on its website and in the mass media.
PhosAgro provides comments in response
to media enquiries and regularly monitors
coverage in both Russian and international
(social) media.
To protect its business reputation, the
Company has approved the Code of Ethics
setting out unified rules for PhosAgro’s
employees based on the principles of integ-
rity, good judgement, fair play and partner-
ship and designed to support the Company’s
success.
Key indicators / risks
materialised / changes
in the risk
Overdue accounts
receivable, provision for bad
debt.
No material risk events
occurred.
Adverse changes
in exchange rates.
No material risk events
occurred.
№ Risk
Description
Risk mitigants
16
Credit
GRI
201
Financial losses
caused by the failure
of buyers, commercial
contractors and other
financial counter-
parties to fulfil their
financial obligations
to the Company in full
and on time
17
Currency
GRI
201
Financial losses
arising from unfa-
vourable changes
in FX rates against
the Company’s base
currency
PhosAgro has approved policies on man-
aging credit risks to institutionalise a num-
ber of credit risk mitigation techniques,
including deliveries against full or par-
tial prepayments with full or partial insur-
ance of credit risks, use of letters of credit,
and factoring (securitisation) of accounts
receivable. Providing advance payments
to suppliers and contractors is only consid-
ered after the counterparties have proved
their reliability or after they have offered
adequate bank guarantees for advance
payments that exceed approved internal
limits. The Company partners with banks,
financial organisations and insurance com-
panies that boast a high level of finan-
cial stability and meet the criteria set out
in the Company’s treasury policy. PhosAgro
monitors all covenants under the existing
loan agreements on an ongoing basis.
For more information on the Company’s
activities and indicators in this area, see
the Financial Risk Management. Credit
Risk section of the Notes to the consoli-
dated financial statements on page 371
In the context of oil price volatility and fluc-
tuations of the rouble exchange rate against
major international currencies, the Company
seeks to align the currency breakdown
of its debt financing with the FX structure
of its sales. As of now, most of PhosAgro’s
debt is denominated in US dollars as a nat-
ural hedge against predominantly USD-
denominated sales. The Company carefully
tracks analyst forecasts and factors that may
influence the rouble exchange rate against
major currencies.
If need be, PhosAgro can hedge its FX posi-
tions either fully or partially.
For more information on the Company’s
activities and indicators in this area, see
the Financial Risk Management. Currency
Risk section of the Notes to the consoli-
dated financial statements on page 369
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STRATEGIC REPORT
№ Risk
Description
Risk mitigants
18
Commodity
GRI
204, 417
Losses associated
with unfavourable
changes in the mar-
ket prices for mineral
fertilizers and other
products or a hike
in prices for key feed-
stock and equip-
ment sourced
by the Company
Given the volatility in prices for its main
products, the Company constantly seeks
to streamline its sales structure in terms of
the fertilizer grade offering based on mar-
ket priorities, as a way to maximise mar-
gins. PhosAgro also continues to increase
the share of sales to end consumers, improve
production efficiency and offer its custom-
ers add-on services such as packaging,
blending and storage. To reduce its feed-
stock and equipment expenses, PhosAgro
invites multiple suppliers to take part in ten-
ders, enters into long-term supply con-
tracts and develops lasting relationships
with its suppliers.
Key indicators / risks
materialised / changes
in the risk
Adverse changes in product
and feedstock prices.
No material risk events
occurred. However,
potential correction
in mineral fertilizer prices
following their strong
growth in 2022 contributes
to a moderate increase
in this risk.
19
Climate
GRI
203, 302, 305
Risks associated
with changes in natu-
ral processes or phe-
nomena amid climate
change (physical fac-
tors) or with political,
economic, financial
or other decisions
made by govern-
ments, multilat-
eral organisations,
financial institu-
tions, or producer
or consumer asso-
ciations or other
NGOs to curb climate
change by reduc-
ing GHG emissions
through carbon regu-
lations or restrictions
on the use of fossil
fuels or non-renew-
able energy (transi-
tional factors)
Processes to identify and assess climate
change risks are being set up through-
out the value chain and form an integral
part of the Company’s risk management
and internal control framework.
The Board of Directors approved PhosAgro’s
Climate Strategy, the key elements of which
are analysis of climate risks and oppor-
tunities, scenario analysis, science-based
targets, and a low-carbon transition plan.
In accordance with the climate strategy,
priority actions are being taken to develop
and implement the following measures:
direct (Scope 1) emission reduction pro-
grammes; an internal energy efficiency pro-
gramme, and communication with energy
suppliers to improve the climate profile
of energy supplies (Scope 2); and a supplier
and customer engagement plan and sup-
plier ESG ratings (Scope 3).
Thanks to these actions, the Company has
improved its ratings for climate disclosure
and sustainable development.
Adverse deviations
resulting from climate
impacts (by focus area).
In 2022, there
were abnormal weather
events. However, at this
stage it is quite difficult
to assess the extent
to which these
were caused by climate
change. In any case,
the Company did not
incur any significant losses
associated with these
natural phenomena.
At the same time,
potential changes related
to transition climate factors
contribute to higher
exposure to this risk.
№ Risk
Description
Risk mitigants
20
Infectious
diseases
GRI
403
Risks associated
with the outbreak
and spread of infec-
tious diseases that
pose a threat to busi-
ness continuity
2022 saw further spread of a newly dis-
covered coronavirus (COVID-19) around
the world. At the same time, complications
associated with this disease became consid-
erably less severe.
The Company took a set of measures to pre-
vent mass infection and to support vac-
cination among its employees and local
communities in its regions of operation
(jointly with government agencies). Thanks
to these measures, the Company man-
aged to minimise the negative impact
of COVID-19 (in its active stage) on its opera-
tions, ensure business continuity and deliver
on its business targets. The Company’s suc-
cessful experience of COVID-19 response
and the procedures it has established help
react to further developments associated
with COVID-19, as well as to other infectious
disease outbreaks.
Key indicators / risks
materialised / changes
in the risk
Confirmed cases, business
process disruptions.
The number of confirmed
cases among the
Company's employees
in 2022 generally follows
overall trends in the
Company’s regions of
operation. By quickly
developing and putting
in place anti-COVID-19
response measures, the
Company ensured business
continuity and delivered on
its targets.
21
Sanctions
GRI
201, 202, 203, 204
Foreign sanc-
tions imposed
on the Group’s
companies
The global nature of international economy
creates a background for various sanctions
to be imposed on the Russian economy
and the Company’s operations by individ-
ual countries or their groups. The Company’s
flexible business model helps minimise
any negative impact of such sanctions
or restrictions.
Losses associated
with sanctions.
In 2022, geopolitical
developments caused
this risk to materialise.
By quickly developing
and putting in place
response measures,
the Company ensured
business continuity
and delivered on its targets.
22
Interest rates
GRI
201
The Company borrows
money to finance
its investment pro-
gramme and working
capital requirements,
including via float-
ing interest rate loans.
Rising floating rates
might lead to higher
debt service costs
and adversely impact
the bottom line
Should the Company accumulate significant
floating interest rate borrowings, it would
hedge this risk using interest rate derivatives.
PhosAgro closely monitors and manages
its fixed-to-floating debt ratio to mitigate
interest rate risk.
Losses associated
with changes in interest
rates.
No material risk events
occurred.
For more information on the Company’s
activities and indicators in this area, see
the Financial Risk Management. Interest
Risk section of the Notes to the consoli-
dated financial statements on page 370
l
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A
80
81
STRATEGIC REPORT
ACHIEVING
shared goals
PhosAgro is a major taxpayer
and employer in its regions of operation.
Fully aware of our responsibility
for the sustainable social and economic
development of local communities, we have
more than tripled our support for social
and charitable projects in the reporting year.
203 %
y-o-y increase in social investments
PhosAgro is a successful
and thriving business. But what's
more, we are at the heart
of an extensive network of diverse
economic, environmental
and social ties and partnerships.
This is why we can celebrate
our achievements together
with our shareholders,
contractors, employees, local
communities and consumers
of our products in Russia and all
over the world.
3
I
W
E
V
E
R
E
C
N
A
M
R
O
F
R
E
P
84
Financial
performance
92
Operational
performance
100
Customers
and product
management
112
Research
and education
130
Supply chain
142
People
development
168
Industrial safety
190
Environmental
review
234
Contributing
to local
communities
Efficient use of resources, including
water, is an integral part of our strategy.
In 2022, PhosAgro joined the UN
Global Compact’s CEO Water Mandate,
a global commitment platform
for corporate water stewardship.
–1 %
reduction in water withdrawal per tonne
of products
82
83
For more information, see page 234
For more information, see page 224
Financial
performance
Key external drivers of financial results
39%
growth
in adjusted
EBITDA
Other drivers
of PhosAgro's strong
financial performance
in 2022 along
with an increase in sales
and competitive cost
levels include:
Fertilizer
affordability issues
caused on the global market
by supply disruptions
and an increase in raw
materials prices
In the reporting year, we
Adjusted free cash flow increased
commitments to the holders
faced multiple challenges,
by 81% to more than RUB 141 bln
of bonds recorded both in Russia
many of which were by all
as a result of both improved sales
and abroad.
means unprecedented.
margins and strong working capital
Despite these headwinds, our
management.
high production efficiency
and a balanced financial policy
PhosAgro’s strong y-o-y performance
along with the favourable pricing
contributes to ensuring its robust
environment on global markets
financial stability. As at 31 December
helped the Company deliver
2022, our net debt / adjusted
strong financial results.
EBITDA ratio was 0.68x, way below
the 2x threshold that we consider
Increased fertilizer production
comfortable. Importantly, it
and sales spurred a revenue rise
continued to decline throughout
in excess of 35% y-o-y. Revenue
2022 (down from 0.8x at the end
growth outpaced the increase
of 2021 and 1.8x in December 2020).
in production costs, which
were up by circa 23% y-o-y.
With investors’ confidence in our
production and financial strategy
With these drivers in place,
and the management team,
the Company was able
PhosAgro successfully held a vote
to increase adjusted EBITDA
among its Eurobond holders
by 39% y-o-y, while adjusted net
to amend the relevant issuance
profit improved by 40%.
documentation so as to continue
honouring its public debt
Alexander Sharabaika
Deputy CEO for Finance
and International Projects
Growth of global crop prices
underpinned in part by stronger
demand for forage crops, which
itself was partially caused
by the recovery of hog production
in China after the swine flu
epidemic in 2018–2019
Growth of supplies
to Asian countries
especially to India, due
to stronger government
support for agriculture
(increase in subsidies) and
favourable weather conditions
84
85
Restrictions on exports
of phosphate-based fertilizers
from China to bolster domestic
supply and introduction
of fertilizer export quotas
in Russia
Company profileCorporate governanceShare capitalAppendicesPERFORMANCE REVIEWStrategic report Revenue analysis
Revenue for 2022 grew by 35.4% y-o-y
Higher average sales prices
and amounted to RUB 569.5 bln.
on global markets and a shift
The growth was associated
in the sales mix towards a greater
with increased sales volumes
share of higher-margin fertilizers,
driven by higher mineral fertilizer
which are consistently popular
output. A large-scale programme
among farmers, also contributed
to upgrade existing production
to the revenue increase.
facilities and build new ones helped
the Group achieve a significant
improvement in equipment
productivity.
RUB 569.5 bln
revenue for 2022
Financial and operational highlights
Item
2020
2021
2022
Δ 2022/2021, %
FINANCIAL HIGHLIGHTS, RUB MLN
Revenue
Adj. EBITDA1
Adj. EBITDA margin
Net profit
Adj. net profit2
Adj. free cash flow3
253,879
84,280
33.2%
16,921
41,991
42,519
420,488
192,117
45.7%
129,674
130,512
77,857
569,527
266,947
46.9%
184,714
182,297
141,024
31.12.2020
31.12.2021
31.12.2022
Net debt
12M net debt / adj. EBITDA
SALES VOLUME, KT
Phosphate-based fertilizers and feed
phosphates
Nitrogen-based fertilizers
Total fertilizers
Other products
Total fertilizers and other products
156,875
1.86
7,669
2,286
9,955
184
10,139
Revenue breakdown by key product, RUB bln
Item
Phosphate and nitrogen-based
products
Other
Total
2020
242.3
11.6
253.9
153,718
0.80
180,338
0.68
7,762
8,403
2,495
10,257
177
10,434
2021
404.9
15.6
420.5
2,551
10,954
144
11,097
2022
551.0
18.5
569.5
35.4
39.0
1.2
42.4
39.7
81.1
17.3
(15.6)
8.3
2.3
6.8
(18.8)
6.4
Δ 2022/2021, %
36
19
35
1
2
3
Adjusted EBITDA is calculated as operating profit adjusted for depreciation and amortisation less foreign exchange gain or loss from
operating activities.
Adjusted net profit means net profit less net foreign exchange gain or loss from operating and financing activities.
Adjusted free cash flow is calculated as cash flows from operating activities less cash flows from investing activities, adjusted
for the outflow of cash and cash equivalents as result of a loss of control over foreign subsidiaries.
Operating costs analysis
Cost of sales, RUB mln
Item
Depreciation and amortisation
Materials and services
Phosphate rock transportation
Repair
Drilling and blasting
Other materials and services
Raw materials
Ammonia
Sulphur and sulphuric acid
Potassium
Natural gas
Ammonium sulphate
Salaries and social contributions
Electricity
Fuel
Products for resale
Customs duties
Freight, port and stevedoring expenses
Russian Railways and operators’ fees
Other
Total
2020
23,743
40,937
8,134
10,134
3,168
19,501
35,514
4,802
4,360
12,253
12,342
1,757
13,807
6,311
3,885
9,333
1,482
19,128
11,452
1,111
2021
24,812
47,084
9,105
11,373
3,486
23,120
63,534
14,277
17,707
16,574
12,635
2,341
15,286
6,740
5,578
12,725
2,483
28,587
10,728
1,250
2022
26,979
54,178
11,610
12,002
3,217
27,349
108,323
19,550
40,798
27,418
14,226
6,331
19,667
6,754
6,459
15,599
1,420
16,382
12,647
610
166,703
218,807
269,018
Δ 2022/2021, %
8.7
15.1
27.5
5.5
(7.7)
18.3
70.5
36.9
130.4
65.4
12.6
170.4
28.7
0.2
15.8
22.6
(42.8)
(42.7)
17.9
(51.2)
22.9
In 2022, cost of sales grew by 22.9%
Despite the higher costs, PhosAgro
y-o-y to RUB 269 bln, mainly
remains one of the industry's most
on the back of higher sales volumes
efficient players and leads the pack
and increased prices for key
globally in terms of production costs.
feedstocks.
The main way we ensure effective
cost control is by sourcing the key
Raw materials costs added 70.5%
inputs and materials from domestic
y-o-y and amounted to RUB 108 bln
suppliers.
as a result of a significant increase
in the global prices for all key inputs,
including sulphur and sulphuric acid,
potassium, ammonium sulphate
and natural gas.
RUB 269 bln
cost of sales
for 2022
86
87
Company profileCorporate governanceShare capitalAppendicesPERFORMANCE REVIEWStrategic report Adjusted EBITDA
Adjusted EBITDA in 2022 vs actual 2021, RUB bln
2022
FX rates
Costs
Fertilizer prices
Sales
2021
266.9
(20.3)
(83.3)
158.9
19.5
192.1
Adjusted EBITDA to adjusted FCF conversion in 2022, RUB bln
Adjusted EBITDA
Adj.
WC
Tax paid
Interest paid
OCF
ICF
FCF
266.9
0.4
(16.9)
(41.8)
(5.3)
203.3
(62.3)
141.0
In 2022, the Company’s adjusted
EBITDA grew to a record high of
RUB 266.9 bln
up by 39% y-o-y
Adjusted EBITDA margin
for the reporting period grew
to 46.9%
Adjusted free cash flow
Capital investments (including
capitalised repairs) for the year
and raw material base in Kirovsk,
developing production capacities
amounted to RUB 63 bln
in Balakovo, and maintaining
and were mainly focused around
production facilities across all process
completing the construction
stages, from mining and processing
of a large production facility
of raw materials to producing
in Volkhov, developing the ore
finished products.
In 2022, the Company’s
adjusted free cash flow
reached
RUB 141 bln
up by 81.1% y-o-y
In 2022, lobbying
spending stood at
RUB 5,1 mln
Loans and borrowings
breakdown by rate type
as at 31 December 2022, %
Loans and borrowings
breakdown by currency
as at 31 December 2022, %
Debt
Net debt as at 31 December 2022
increased y-o-y to RUB 180.3 bln.
At the 2022 year-end, our net debt
to adjusted EBITDA ratio went down
to 0.68x from 0.8x as at 31 December
2021, primarily thanks to EBITDA
growth.
Our commitment to maintaining
high credit quality and ensuring
timely debt servicing continues
to be a priority for the Company.
96
4
Fixed rate
Floating rate
71
23
6
USD-denominated
RUB-denominated
EUR-denominated
Debt maturity profile, RUB bln
Item
Unsecured bank loans
Eurobonds1
Interest payable
Total debt
2023
44.6
35.2
1.1
80.9
2024
23.2
–
–
23.2
2025
3.7
35.2
–
38.9
2026
10.7
–
–
10.7
2027
2028
2.1
–
–
2.1
–
35.2
–
35.2
Total
84.3
105.6
1.1
191.0
Tax policy
GRI 3-3, 207–1, 207–2, 207–3
In 2022, PhosAgro’s Board
and Promotion Agreements
of Directors approved the Company’s
and Special Investment Contracts.
Tax Strategy. Our approach
to taxation was developed
Our approach to tax management,
in accordance with the Company’s
participation in shaping government
Strategy to 2025 and combines
tax policy, and organisational
social responsibility for developing
arrangements pertaining
and maintaining the well-being
to the exercise of tax functions
of regions across PhosAgro’s
at PhosAgro is described
footprint, minimising tax
in the Company’s Tax Strategy.
litigation risks, and maximising
the use of the Company’s
leverage toolkit stipulated by law
for actively investing companies,
in particular Investment Protection
The full text of the Tax Strategy
is available on the Company's
website
1 Eurobond debt amount does not include the bank fee of RUB 220 mln.
88
89
Company profileCorporate governanceShare capitalAppendicesPERFORMANCE REVIEWStrategic report Country-by-country reporting, RUB mln
GRI 207–4
20%
the Company’s income
tax rate in 2022
and 2021
Tax jurisdiction
Unrelated party
revenue
Revenue from intra-
group transactions
with other tax
jurisdictions
Profit/(loss) before
income tax
Income tax paid
(cash basis)
Income
tax accrued1
Statutory
tax rate2
Average
headcount,
people
Tangible assets
other than
cash and cash
equivalents
Total empoyee
renumeration
Intra-group
oans received
Russia
Switzerland
Cyprus
Poland
Germany
France
Serbia
Lithuania
Romania
South Africa
Finland
Brazil
Singapore
Total
2021
131,527
221,961
0
14,916
10,423
15,833
4,752
9,838
4,681
6,452
105
0
0
2022
2021
2022
440,639
250,534
106,420
2021
11,877
96,268
63,188
27,436
112,008
0
8,088
7,446
7,045
2,020
1,598
4,050
2,343
29
0
0
8
0
0
0
230
0
0
0
0
0
0
4
0
0
0
58
0
0
0
0
0
0
(598)
7,253
6,381
10,887
2,060
5,075
1,213
4,046
(7)
(86)
(55)
2022
157,360
57,850
(4,243)
4,943
5,242
5,541
1,063
1,038
1,916
1,643
(2)
(42)
(13)
2021
28,471
2022
41,393
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
29,875
39,932
20.00%
20.00%
18,198
19,846
274,386
320,961
34,039
55,318
67,069
103,233
137
0
59
7
0
(1)
28
5
79
12
(5)
13
331
2
48
2
5
1
26
0
0
3
0
0
742
0
84
60
93
89
31
6
85
12
(5)
0
764
2
235
129
94
65
0
63
12.05%
12.50%
12.05%
12.50%
19.00%
19.00%
32.27%
32.27%
26.50%
25.00%
15.00%
15.00%
15.00%
15.00%
16.00%
16.00%
174
28.00%
28.00%
3
4
0
20.00%
20.00%
34.00%
34.00%
17.00%
17.00%
32
28
15
7
6
12
4
5
2
1
7
3
36
30
15
7
6
14
4
7
2
1
7
3
4,725
14
1,705
466
578
1,443
7
1,019
338
677
2
7
0
0
0
0
0
0
0
0
0
0
0
0
1,723
201
121
97
85
54
67
25
18
8
58
25
528
57
55
33
58
28
20
14
10
2
32
8
0
2,237
0
0
0
337
0
0
502
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
420,488
569,527
313,961
133,918
160,055
232,297
28,806
41,811
31,073
41,465
285,368
320,961
36,522
56,163
70,146
103,233
For the list of tax jurisdictions where the entities included in the Group’s consolidated financial statements
are resident for tax purposes, and the details of taxes payable in each jurisdiction, please see page 394.
In March 2022, the Group lost control over all of its foreign subsidiaries, therefore the 2022 figures for these
companies in the table above are presented for the period before the loss of control.
1 Reasons for the difference between corporate income tax accrued on profit/loss and the tax due if the statutory tax rate is applied
to profit/loss before tax are as follows: intercompany transactions elimination, provisions accrued in accordance with IFRS (mostly
allowance for expected credit losses), reduction in tax rate for certain Russian and foreign entities items which are not deductible or
assessable for taxation purposes, and other differences.
2 For the Russian tax jurisdiction, an average statutory tax rate is used.
90
91
Company profileCorporate governanceShare capitalAppendicesPERFORMANCE REVIEWStrategic report Operational
performance
Product portfolio
PhosAgro is the largest producer
of liquid nitrogen-phosphorus fertilizers
in Russia
2022 was a new record year
This production flexibility is the result
our production capacities.
for PhosAgro in terms of
of a number of successful investment
In 2023, these investments will hit
output and sales. Compared
projects, including MAP production
RUB 67 bln.
to 2021, agrochemical output
at the Volkhov site reaching its full
increased by 4.6% to 11.1 mt,
capacity.
while shipments to customers
Safety at our production sites
remains our absolute priority. We
expanded by 6.8% to 11 mt.
In 2022, nitrogen-based fertilizer
reduced LTIFR from 0.81 in 2021
output grew by 5.6% y-o-y, outpacing
to 0.38 in the reporting year,
In our key segment of
production of phosphate-based
with the Cherepovets site team
phosphate-based fertilizers, we
fertilizers. The granulated ammonium
delivering the best LTIFR of 0.12,
demonstrated annual production
sulphate segment demonstrated
more than three times lower than
growth of above 4% for the
the most impressive growth of more
the Company's overall result.
third year running. The market
than two times thanks to expanded
environment caused us to make
capacities to produce this very
serious changes to our product
popular product. Production of urea,
mix. In our key DAP/MAP grades
the nitrogen segment's core product,
and NPS, we improved the
went up by 2.7% to 1.7 mt.
2021 performance by 16.1% and
78.6% respectively, while NPK
In 2022, we allocated a record
and APP output was down by
RUB 63 bln (including capitalised
17.9% and 45.3% respectively.
repairs) to upgrading and expanding
Alexander Gilgenberg,
General Director of Apatit
Industrial
products
КАРБАМИД
(МОЧЕВИНА)
МАРКА Б
ГОСТ 2081-2010
N,%
не менее 46,2
СИСТЕМА МЕНЕДЖМЕНТА СЕРТИФИЦИРОВАНА
ПО СТАНДАРТАМ ИСО 9001, 14001, 45001
МАССА НЕТТО:
1000 КГ
OUR CUSTOMERS
are at the heart of our business
In 2022, our portfolio was expanded to 57 agrochemical
grades, including all types of fertilizers and feeds.
Two of these grades were registered in 2022.
A significant portion of our offering consists of newest
fertilizer grades developed over the past five years,
including two in the reporting year.
Industrial
phosphates
Sodium
tripolyphosphate
Feed additives
Feed grade urea
Feed grade
monocalcium
phosphate
Mineral
fertilizers
Nitrogen-phosphorus
and complex
fertilizers
Nitrogen-phosphorus
and complex
fertilizers
with micronutrients
Nitrogen-based
fertilizers
Liquid complex
fertilizers
Concentrates
• High-grade
phosphate rock
• Syenite alkali
aluminium
concentrate
• Nepheline
concentrate
Phosphogypsum
• Phosphogypsum
for road
construction
• Phosphogypsum
for farming
92
93
Company profileCorporate governanceShare capitalAppendicesPERFORMANCE REVIEWStrategic report Upstream and downstream
SASB RT-CH-000.A
Upstream
Currently, the Company is shifting
its resource base emphasis from
Kirovsk Branch of Apatit mines
reserves for open-pit mining
apatite-nepheline ore at six fields
to a higher share of underground
of the Khibiny deposits in Russia’s
mining reserves. In the reporting
Murmansk region using both
year, the share of open-pit mining
underground and open-pit mining
came in at 78.3%.
methods. PhosAgro Group’s
feedstock reserves are of igneous
In 2022, total apatite-nepheline
origin, which means that they do
ore production rose by 3% to 39.51
not have concentrations of toxic
mt (compared to 38.45 mt
heavy metals. The Company’s
in 2021). This increase was due
phosphate rock is extremely rich
in P2O5. The mineral resource base
(including off-balance reserves)
to the commissioning of new
capacities at the Kirovsky mine
(+10 m level of the Kukisvumchorr
at one of the world’s richest deposits
deposit) and the Rasvumchorrsky
is expected to last for about 60 years.
mine (CDU-4).
The slight y-o-y decrease in balance
reserves corresponds to the volume
of ore mined.
39.51 mt
total apatite-nepheline
ore production in 2022
PhosAgro Group’s ore reserves as at 1 January 2023
Deposit
Kukisvumchorr
Yukspor
Apatitovy Cirque
Rasvumchorr
Plateau
Koashva
Njorkpahk
Total
Balance reserves, kt
(A+B+C1+C2)
Average P2O5 content, %
347,146
456,620
86,565
85,878
254,963
55,979
1,287,151
14.14
13.81
13.69
10.67
17.24
14.11
14.37
In 2022, the Company also
proceeded with its investment
project to develop +10 m
level at the Kirovsky mine.
The project envisages
the construction of two
crushing and delivery units
for ore drawing, a haulage
level and a water drainage,
enhancement of the Kirovsky
mine’s ventilation system,
as well as further level
development until 2035.
RUB 36.1bln
the project’s budget
1Q 2022
First start-up facility
commissioned
1.5 mt of ore
production volume
in 2022
4Q 2023
Second start-up
facility expected
to be launched
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Company profileCorporate governanceShare capitalAppendicesPERFORMANCE REVIEWStrategic report Furthermore, the Company
proceeded with its Vostochny
mine development project
seeking to intensify open-
pit mining. The investment
project focuses on purchases
of self-propelled machinery,
including dump trucks,
excavators and auxiliary
machinery, with fleet
renewal helping to increase
the equipment’s technical
availability and utilisation ratios.
Additionally, the project involves
relocation of infrastructure
facilities and expansion
of the beneficiation plant's
production capacity.
4.5 mtpa of ore
ore output achieved
at the Njorkpahk open pit
7 mtpa of ore
ore output scheduled
to be reached
at the Koashvinsky open
pit by 2030
RUB 33.4 bln
project CAPEX
8.5 mtpa of ore
total ore production
at the Vostochny mine
Chemical production
Feedstock
Production volume, kt
Item
Ammonia
Phosphoric acid
Sulphuric acid
Ammonium sulphate
Total
2020
1,970.3
2,716.8
6,815.6
293.9
2021
1,931.1
2,952.0
7,352.2
259.0
2022
1,985.3
3,199.4
7,920.2
322.6
11,796.6
12,494.3
13,427.6
Δ 2022/2021, %
2.8
8.4
7.7
24.6
7.5
In 2022, the production
of phosphoric acid
In 2022, sulphuric acid
production
as the key feedstock used
in phosphate fertilizers grew
by 8.4% y-o-y and reached
mt
3.2
on the back of earlier
production unit upgrades
and increased equipment
utilisation efficiency.
was up by 7.7% year-on-year to
mt
7.9
driven by the ramp-up
to full capacity of the new
unit in Cherepovets
and the commissioning
and reaching the design
capacity of a new unit
at the Volkhov site.
Ammonia output
also rose by 2.8% y-o-y to
1,985.3
kt
driven by the completion
of the capacity expansion
project at ammonia
production unit No. 3
of the Cherepovets site. This
project helped increase daily
output to 2,350 t.
On top of that, we remain committed
plants of TGC-1. In the reporting year,
to the active implementation
green electricity supplies to the plant
of our sustainable development
totalled 300 million kWh. Thus, about
strategy. For example, in 2022
17.8% of the plant’s output is covered
the mining and processing plant
by green electricity.
of Apatit continued sourcing energy
generated by the hydroelectric power
+2% y-o-y vs 2021
12 mt
production
of phosphate rock
and nepheline
concentrate
Ore processing
Production volume, kt
Item
Phosphate rock
Nepheline concentrate (incl. syenite concentrate)
Total
2020
10,541.4
1,159.4
11,700.8
2021
10,675.5
1,123.1
11,798.6
2022
10,855.7
1,175.8
12,031.5
Δ 2022/2021, %
1.7
4.7
2.0
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Company profileCorporate governanceShare capitalAppendicesPERFORMANCE REVIEWStrategic report Phosphate-based fertilizers
of MAP production at the Volkhov
site, and the higher demand
In 2022, the production of phosphate
for bicomponent fertilizers in 2022.
fertilizers and feed phosphates
grew by 4.2% y-o-y to 8.2 mt
NPS production in 2022 surged
helped by increased output
by 78.6% y-o-y to 1 mt, while
of phosphoric acid.
the output of NPS and APP dropped
by 17.9% and 45.3% respectively
The output of DAP/MAP fertilizers
due to the interchangeability of
increased by 16.1% to 4.2 mt.
phosphate fertilizer grades available
The rapid growth rates of DAP/MAP
in the product mix and considering
fertilizers was due to the launching
the overall market requirements.
and ramp-up to full capacity
Phosphate-based fertilizer and feed phosphates production, kt
8.2 mt
production
of phosphate-
based fertilizers
and feed
phosphates
Item
DAP/MAP
NPK
NPS
APP
MCP
PKS
Total
2020
3,164.4
2,840.3
928.9
205.8
392.1
46.4
2021
3,610.7
3,111.3
561.6
208.6
390.6
10.8
2022
4,191.9
2,553.8
1,003.1
114.0
361.6
–
7,577.9
7,893.6
8,224.4
Δ 2022/2021, %
16.1
(17.9)
78.6
(45.3)
(7.4)
–
4.2
Nitrogen-based fertilizers
of this unwaveringly popular fertilizer
more than doubled y-o-y to reach
In 2022, production in the nitrogen
165.4 kt. The production of urea grew
segment went up by 5.6% y-o-y
by 2.7% to 1,688.2 kt, while the output
to 2.55 mt. As the Company
of ammonium nitrate in 2022 saw
completed its investment project
a slight planned decrease to 693 mt.
to ramp up granulated ammonium
sulphate capacities, the output
2.55 mt
production
in the nitrogen
segment
Nitrogen-based fertilizers production, kt
Item
Ammonium nitrate
Urea
Ammonium sulphate
Total
2020
691.5
1,679.1
31.7
2,402.3
2021
694.8
1,643.2
74.1
2,412.1
2022
693.0
1,688.2
165.4
2,546.6
Δ 2022/2021, %
(0.3)
2.7
123.2
5.6
Sales
In 2022, PhosAgro increased total
to meet the growth in demand
fertilizer sales by 6.8% y-o-y to hit
by boosting the production of MAP
an all-time high of 11 mt.
in 2022 after launching a new facility
at the Volkhov site.
Sales of phosphate fertilizers
and feed phosphates in 2022
In the nitrogen segment, sales
amounted to 8.4 mt, up 8.2% y-o-y.
were up by 2.3% year-on-year, primarily
The increases came on the back
due to a high seasonal demand
of strong demand for these fertilizers
and the availability of fertilizers
in the Asian markets. We were able
for end users.
8.4 mt
sales of phosphate-
based fertilizers
and feed
phosphates
Sales by key product, kt
Item
Phosphate rock
Nepheline concentrate
Total
PHOSPHATE-BASED FERTILIZERS
DAP/MAP
NPK
NPS
APP
MCP
PKS
Total
NITROGEN-BASED FERTILIZERS
Ammonium nitrate
Urea
Ammonium sulphate
Total
Total fertilizers
OTHER PRODUCTS
STPP
Other
Total other products
Market outlook
2020
3,151.8
1,159.0
4,310.8
3,203.4
2,924.6
912.2
200.3
378.6
49.8
2021
2,677.6
1,125.2
3,802.8
3,564.5
3,011.1
566.8
206.3
405.2
8.5
2022
2,041.2
1,176.4
3,217.6
4,272.2
2,660.7
1,008.8
111.6
349.1
–
7,668.9
7,762.4
8,402.4
618.6
1,649.0
18.1
2,285.7
9,954.6
93.3
90.4
183.7
798.0
1,616.3
80.2
2,494.5
10,256.9
94.4
82.9
177.3
661.6
1,741.8
147.4
2,550.8
10,953.2
48.6
95.4
144.0
Δ 2022/2021, %
(23.8)
4.6
(15.4)
19.9
(11.6)
78.0
(45.9)
(13.8)
–
8.2
(17.1)
7.8
83.8
2.3
6.8
(48.5)
(15.1)
(18.8)
In 1Q 2023, the nitrogen-based
The prices of phosphate-based
a significant import drop in 2022
fertilizer market faced an oversupply
fertilizers have plateaued for now.
are expected to provide support
as a result of high carry-over stocks
Higher seasonal activity in South
for the pricing environment.
(in Europe, North and South America).
America (primarily in Brazil)
This continues to pile downward
in 1Q 2023 coupled with revival
pressure on prices.
in the domestic US market after
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and product
management
AREA, STRATEGIC GOALS AND METRICS
KEY PROJECTS AND RESULTS OF 2022
Target 2.4
Providing expert support to agricultural
producers and advancing a customised product
offering
Promoting the responsible and rational use
of mineral fertilizers, i.e. green agriculture
Optimising the mineral nutrition of crops
with the use of PhosAgro Group's products
and publishing trial data
Establishing business partnerships built
on mutual trust and respect
Targets 17.16 and 17.17
Ensuring a shared understanding of obligations
and expectations from the partnership
Driving sustainable growth of sales markets
Stable development of sales markets
Results of
48 agronomic trials published
on the Company's website (phosagro.ru)
4,395 calculations
made using PhosAgro's agro calculator in 2022
AgroResult app downloaded by
>36,000users
~10 mln
interactions with PhosAgro’s digital
ecosystem, up more than twofold y-o-y
The trial results were featured in research
publications and the book titled Trial
Outcomes 2022, with the trial data also
demonstrated at conferences and webinars
Customers reported high satisfaction
with the performance PhosAgro's staff
promptness of request handling and quality
of support and consultations:
98.6%
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Strategy
We carry out PhosAgro’s strategic
and globally important mission
To provide consumers
of supplying safe and eco-efficient
with safe, eco-efficient,
fertilizers for the agricultural industry
and quality innovative
to ensure food security in Russia
products and services,
and across the world. We believe
the Company's Strategy
that tackling global problems is only
to 2025 has identified
possible through open dialogue,
the following focus areas
Developing innovative
products
that meet customer
requirements and enable
farming with due consideration
of environmental factors,
soil and crop requirements,
the climate agenda
and the need to reduce
greenhouse gas emissions
in the value chain.
cooperation, and building synergies
between all stakeholders. This
approach is at the heart of our
interaction with customers.
We are committed to the responsible
use of our products making
sure they are safe for people
and the environment. Product life
cycle management at PhosAgro
is in full compliance with applicable
Russian and international
standards and regulatory
requirements. We seek to minimise
any potential negative impact
of our products on safety, health
and the environment throughout
the value chain, from product
development to the end of its life
cycle.
Advancing digital technology
in agriculture
to boost crop yields and quality
in the near term, including
by raising consumer awareness
of innovations in agricultural
production.
Enhancing PhosAgro’s
competitive strengths
as one of the world's leading
suppliers of eco-efficient
phosphate fertilizers for farmers.
Expanding PhosAgro Group’s
involvement in programmes
to protect human health
and the environment, ensure
food security and combat soil
degradation.
Developing circular economy
and increasing rates of recycling,
including the use of by-products
from PhosAgro Group's facilities.
Management approach
GRI 3-3
• accurate traceability of materials,
PhosAgro Group’s vertically
An open dialogue with customers
elements and substances from
integrated business model is a key
helps us understand their
product development to the end
competitive advantage. PhosAgro’s
expectations and requirements
of life cycle;
upstream assets benefit from
for our products, services
• open and transparent information
extensive and high-quality resource
and the management system,
about the properties and quality
base boasting unmatched purity.
as well as their vision of future
of products for customers
Our downstream assets are located
products. This valuable
and other stakeholders;
close to key mineral resources used
information creates a solid
• open dialogue with stakeholders
in fertilizer production. At PhosAgro
foundation for the Company’s
regarding their expectations
Group, we have a product
further strategic growth and new
and satisfaction with the Group’s
management framework that relies
product development. PhosAgro
products and services;
on the assessment of product life
Group's responsible production
•
integration into the quality
cycle. It covers all production facilities
management framework is based
management and environmental
and stages of product life.
management systems.
on the following principles:
• compliance with Russian
and international standards
and regulations;
Product management framework
• Regulations and other
• Elaboration of production
• Marketing products meeting
requirements
requirements and opportunities
customer requirements
• Expectations of stakeholders
• PhosAgro’s strategic initiatives,
• Product research
and development
and cooperation and joint research
projects with research institutes
• Ensuring production safety
and product use in compliance
with regulatory and other
requirements
• Drafting documents
• Registration tests and receipt
of permits
• Taking into account customer
feedback
Information support
•
• Digital services for customers
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report requirements for the end product,
by an independent firm to maintain
objectives:
System for planning
and defining criteria
for product
development
PhosAgro Group’s quality
initiatives, performing internal
management system defines
audits, updating records, collecting
processes that ensure traceability
and providing input data for review
of the criteria of product safety,
by top management to improve
quality and conformance
governance across the board.
Planning is an important
with stakeholder requirements
element of PhosAgro Group’s
and expectations throughout
Every year, the quality
the product life cycle to comply
and environmental management
with the stringent quality
systems undergo an external audit
management system.
Planning involves complex
and comprehensive
research to determine
a set of criteria
for the development
of a future product,
including:
stakeholder
requirements
from ore and material selection
their compliance with ISO 9001,
to end product research.
ISO 14001 and other standards.
The systems are supported
Interaction with customers
by internal and external audits
and product safety are closely
that help promptly reveal areas
related issues regularly discussed
for improvement and introduce
by the Board of Directors’
best practices into management
committees and submitted
systems.
and opinions about
to the Board of Directors
products and services;
for consideration.
Development of products
and manufacturing processes
market expectations,
Each facility has designated
is implemented in partnership
requirements
and trends;
staff members responsible
with Samoilov Scientific
for internal control and support
Research Institute for Fertilizers
of the quality and environmental
and Insectofungicides
regulatory requirements
management systems, which
(NIUIF), Russia's only institute
applicable to activities
includes implementing targeted
specialising in this area.
and products;
innovative methods
and technologies
of production,
including those aimed
at ensuring greater
safety of the product
and its manufacturing
processes for humans
and the environment;
opportunities
for implementing
the circular
economy principles
and contributing
to UN SDGs.
Risks and opportunities
The Company has a risk
management system in place
to identify and mitigate product
related risks in cooperation
with customers. The following
strategic risks, in particular, affect
our product and customer related
Risks specific to the Group's
operations are listed below:
The Company develops corrective
measures as necessary and unlocks
opportunities, including voluntary
certification, to mitigate those risks.
Below you can find more information
about what we do on this front.
7 environmental risk;
9
risk related to business
processes and systems;
13 regulatory risk.
For more information, see
the Strategic Risks section
on page 70
Risks associated
with chemicals
management
and product safety
1
2
Risks associated
with ensuring
ethical research
and production
principles
Risks associated
with customer
satisfaction
3
Regulatory environment
and management
of risks associated
with chemicals
PhosAgro Group facilities
ensure timely receipt of all
necessary licences for their
activities to strengthen public
confidence in the safety
of their operations
and products. All types
of fertilizers are registered
in Russia. PhosAgro
Group is committed
to minimising hazardous
substances in its activities.
We ensure full transparency
with respect to the chemicals
we use and the content
and properties of our products.
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Regulations and certain
requirements applied to
mineral fertilizers
in Russia
We tap our extensive knowledge
base and technologies
to design products that
are safe for the environment
and people. In strict compliance
with the regulations, all PhosAgro
products undergo the necessary
environmental and toxicological
tests as part of their registration
process before being marketed
to our customers.
Mineral fertilizers produced
by PhosAgro Group are subject
to mandatory state registration
of agrochemicals by the Russian
Ministry of Agriculture. All grades
of PhosAgro Group’s mineral
fertilizers registered in Russia
passed a mandatory examination
for compliance:
•
toxicological and hygienic –
in Erisman Federal Research
Centre of Hygiene;
• biological – in Pryanishnikov
Institute of Agrochemistry;
• environmental –
in Rosprirodnadzor
and Lomonosov Moscow State
University;
• sanitary and epidemiological
standards –
in Rospotrebnadzor.
We are committed to the ethical
principles of animal welfare
and seek to avoid using
animals for research. This issue
is addressed at the highest
level by the Company’s Board
of Directors. In 2021, we revised
our Code of Ethics to state our
position on this matter. In line with
the Code of Ethics, PhosAgro Group
does not conduct experiments
on animals, except as required
by law; when conducting an expert
examination of fertilizers, the main
method of evaluating information
on the toxicity and hazard
of a multi-component substance
to animals is to analyse information
from national and international
databases, as well as information
on previously registered fertilizers.
Currently, there are very few
alternatives to animal research that
are recognised by the government.
We are doing our best to expand
the range of allowed research
methods and reduce experiments
on animals.
Regulations and certain
requirements applied to
mineral fertilizers by the
European Union, REACH,
and SVHC
PhosAgro Group's products
exported to EU customers
have been registered pursuant
to Regulation (EC) No. 1907/2006
concerning the Registration,
Evaluation and Authorisation
of Chemicals (REACH).
For companies, REACH
conformity means greater
responsibility for assessing
the risks associated with the use
of chemicals and providing
users with relevant safety
information. Companies
producing or importing
10 tonnes or more of hazardous
substances per year are required
to submit not only technical
data, but also a chemical
safety assessment (CSA).
All information on such
substances is communicated
by PhosAgro Group in full
to the regulators. Pursuant
to the above Regulation,
Apatit’s products contain no
substances which are subject
to restrictions on their sales
in the European Union.
We produce ammonium nitrate
(AN) CAS 6484-52-2 EC No. 229-
347-8, which is subject to para 58,
Annex XVII of REACH. However,
it does not apply if a fertilizer
conforms to specifications
defined in Annex I and Annex IV
to Regulation (EU) 2019/1009
of the European Parliament
and of the Council. To assess
conformity, samples
of ammonium nitrate are sent
quarterly to the Inspectorate
Estonia AS lab for detonation
resistance and oil retention
tests. The results are formalised
by a protocol for compliance
with the requirements of Annex I
and Annex IV of Regulation (EU)
2019/1009. In addition, para 30
of Annex XVII to REACH lists
substances specified in Part 3
of Annex VI to Regulation (EC)
No. 1272/2008 and classified
as toxic to reproduction,
Category 1A/1B. These include
sodium tetraborate, which
is on the list of Substances
of Very High Concern (SVHC)
and is classified as a reproductive
toxicant, Category 1В, but
the restrictions only apply
to individual concentrations
in the mixture above 4.5%.
We produce NPK fertilizers
with boron that contain sodium
tetraborate at a concentration
of 2–3%. Therefore, the special
concentration level as defined
in Part 3 of Annex VI
to Regulation (EC) No. 1272/2008
is not reached. Thus, PhosAgro
Group faces no restrictions
under Annex XVII of Regulation
No. 1907/2006. The quality
and safety of mineral fertilizers
produced by the Company
is confirmed by state
registration certificates,
declarations of conformity,
and safety data sheets.
0.2 mg per kg
average cadmium
content in PhosAgro
Group's phosphate-
based fertilizers
60 mg per kg
single level
of maximum cadmium
n fertilizers, according
to EU regulation
According to expert reviews, new
fertilizer grades of PhosAgro Group
are effective and environmentally
and toxicologically safe. The products
are properly classified, labelled
and packaged in accordance
with Regulation (EC) No. 1272/2008
(Classification, Labelling
and Packaging Regulation, CLP
Regulation) and Regulation (ЕU)
2019/1009. All types of manufactured
fertilizers have safety data sheets
(SDS).
PhosAgro Group's unique
phosphate-based fertilizers have
perfectly low cadmium average
content (0.2 mg per kg), making
them among the safest in the world.
On 5 June 2019, the European
Council and European Parliament
approved the EU Regulation
2019/1009 (Fertilizing Products
Regulation, FPR) on fertilizers,
establishing new EU-wide rules
for CE-marked fertilizers (also
known as EU Fertilizing Products).
The regulation provides for reducing
cadmium content in EU fertilizers,
by introducing a single cap at 60 mg
per kg of P₂O₅ and banning inorganic
fertilizers in the EU with a cadmium
content above that cap
starting from 16 July 2022.
Going forward, the regulation
provides for gradual reduction
of cadmium content to 20 mg per
kg of P₂O₅. The plans of cutting
the cap to 40 mg per kg of P₂O₅
have been already announced.
At the same time, the French
Agency for Food, Environmental
and Occupational Health &
Safety (ANSES) has already issued
recommendations for a cadmium
content in inorganic phosphate-
based fertilizers of less than
20 mg per kg of P₂O₅.
Thus, PhosAgro Group's
phosphate-based fertilizers are
well within EU requirements
for cadmium content, which
is reflected in our product slogan:
pure minerals for healthy lives.
In 2022, in line with Regulation
(EU) 2019/1009, Apatit’s mineral
fertilizers were successfully
certified by an independent
notified body in the area
of fertilizer certification
in the EU, making it possible
for the fertilizers to be CE-marked.
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Key initiatives in 2022
GRI 2-28, 417-1
On top of that, the Company
has a certificate under
the Ecological Union’s Vitality
Leaf standard and the right
to use the internationally
recognised eco-label
on its products.
All agrochemicals
of PhosAgro Group have
been certified under
the GOST R 58658–2019
national standard, which
has introduced the world’s
most rigorous limits on heavy
metal and arsenic content,
allowing the Company to use
the Green One eco-label.
ISO
9001
14001
45001
Both certificates
were confirmed in 2022.
Independent assessment
results are a testament
to the unique eco-efficiency
of PhosAgro Group’s products.
Also, the Company
made a Green Label
environmental claim,
asserting that the Group’s
products are free from
dangerous cadmium
concentrations capable
of harming soils.
In addition, our products
are labelled with an EU
pictogram developed
under Regulation
(EU) 2019/1009 and ensuing
rules for voluntary labelling
of safe fertilizers in terms
of heavy metals content.
In 2022, PhosAgro was the first
with a special focus on conformity
Russian mineral fertilizer producer
to Brazilian requirements
to win strong recognition in Brazil,
for the production, storage
one of the world’s major agricultural
and transportation of fertilizers.
markets, where our products
obtained the Environmental
The Brazilian standard contains
Quality Label. As part of mutual
strict limits on levels of arsenic
recognition of eco-labels, Brazilian
and heavy metals, which
experts reviewed the life cycle
PhosAgro Group mineral
of the Company's products,
fertilizers are fully compliant with.
This comprehensive
assessment
included production,
environmental and social
criteria, such as:
energy efficiency and use
of recycled materials
and energy resources;
use of best available
technologies;
customer service
in terms of providing
reliable information
on the properties
and optimal use
of the mineral fertilizers.
Throughout 2022, PhosAgro
Customers enjoy our digital
information and competencies
Group maintained a strong focus
services, which are complementary
of PhosAgro Group experts.
on activities that help make
to PhosAgro Group’s core products
PhosAgro Innovation Centre
information about the Company's
and allow us to expand consumer
provided extensive expert support
products and services more
opportunities, including by offering
to consumers during the year.
accessible.
faster access to the relevant
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Consumer survey
Ensuring customer satisfaction
Customers reported high satisfaction
is a major priority for PhosAgro
(score 5 or 4) with the performance
During this survey
customer satisfaction
was assessed using the following
indicators:
Group. In order to obtain unbiased
of PhosAgro's staff (promptness
quality of the products
data on the performance of our
of request handling and quality
supplied;
quality management system, collect
of support and consultations),
comments, and quickly act on them,
rating it 98.6%, up from the 2021
we regularly monitor customer
level. Positive results also came
packaging (design,
durability, moisture
satisfaction levels. We also take
for the quality and packaging
protection);
on board feedback from existing
of PhosAgro Group’s products
and potential customers regarding
(satisfaction levels rated at 97%
product range;
our products and carefully review
and 98.6% respectively).
performance of PhosAgro’s
staff in terms of promptness
of request handling
and quality of support
and consultations.
98.6%
of consumers
highly appreciated
the performance
of PhosAgro Group's
staff
all the proposals and comments
we receive in order to better meet
our customer needs, expand
our product range, acquire new
customers and tap into new
sales markets. The data obtained
serves as the basis for the annual
assessment of customer satisfaction.
In late 2022 and early 2023, PhosAgro
Group carried out yet another survey
of consumer opinion. This time,
the Company polled its Russian
customers using a questionnaire
in Microsoft Forms, which focused
on customer satisfaction and loyalty
aspects.
The questionnaire relied
on a qualitative evaluation using
a scale from 1 (not satisfied at all)
to 5 (completely satisfied). Whenever
customer satisfaction is not rated
at 5, respondents are asked to explain
the reasons and provide comments
to PhosAgro.
Satisfaction
with product range, %
Satisfaction
with product quality, %
63
18
15
4
score 5
score 4
score 3
score 1
89
7
4
score 5
score 4
score 3
Perfomance of PhosAgro's
staff (promptness of request
handling and quality of support
and consultations), %
Packaging (design, durability,
moisture, protrction), %
93
7
score 5
score 4
89
11
score 5
score 4
Most of the customers
praise:
excellent product quality;
timely supplies;
strong skills of the staff
responsible for support
and consultations.
The survey showed that customers
gave a high appraisal of PhosAgro
Group’s products using the above
criteria.
Degree of consumer
satisfaction, %
2022
2021
2020
95
96
94
110
111
Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report Research
and education
AREAS, STRATEGIC GOALS AND METRICS
KEY PROJECTS AND HIGHLIGHTS OF 2022
IMPROVEMENT
OF PRODUCTION PROCESSES
Target 12.4
High-quality and eco-efficiency of our products,
including a process for the development of new
products that respects safety and the environment
throughout its life cycle
IMPROVEMENT OF THE PRODUCT MIX
Target 2.4
Promotion of sustainable farming practices,
development of new fertilizer grades for broader
access to best practices in farming
APPLICATION IMPROVEMENT
Targets
13.1, 13.2
Target 15.1
Soil safety, biodiversity conservation, fertility
growth and lower GHG emissions in production
and throughout the product’s life cycle: from mine
to plate
COOPERATION WITH UNIVERSITIES
AND RUSSIAN AND INTERNATIONAL R&D CENTRES
Target 4.4
Targets
17.16, 17.17
Implementation of a comprehensive phased
programme to support sustainable agricultural
practices and support young scholars in running
sustainable development projects
• Reduction of natural gas consumption
•
in production processes
Improvement of the nepheline concentrate
processing technology
• Phosphogypsum processing technologies
• Development of water-soluble fertilizers
• Development of inorganic coatings to improve
performance and reduce nitrogen loss
• Development of biologised fertilizers
• Manufacturing of the new product – ApaSil
• Production of phosphates and purified
phosphoric acid
• Development of an in-house catalyst
for sulphuric acid and liquid sulphur dioxide
production
• Research into an integrated approach to plant
nutrition and N2O emissions in a grain-grass
crop rotation
• Phosphogypsum application research
91.6 kt
of phosphogypsum sold
• PhosAgro Group's carbon farm project
in the Vologda region
2,751
t of CO2
estimated volume of carbon dioxide absorbed
by plant biomass per 200 ha)
• Cooperation across a range of areas related
to the climate agenda and low-carbon transition
plan
• Continuation of the Green Chemistry project
• Continuation of the Summer Schools on Green
Chemistry international project involving
150 students and young scholars,
30 professors and lecturers from
45 countries
• A project to run cooperation programmes
with universities
112
113
Company profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Strategy
Management approach
The Company's innovations in fertilizer
fertilizers while also working hard
Our Strategy to 2025 envisages
Our innovation, product
The Group actively cooperates
and technologies in partnership
production are a sustainable
to minimise the environmental
efforts to increase the share
development and education
with the Ministry of Agriculture,
with research institutions
development driver in agriculture
impact of mineral fertilizer application
of innovative products, develop
management system is seamlessly
the Russian Academy of Sciences,
in Russia and abroad. The NIUIF
and make a meaningful contribution
and production. In doing so,
technology and production, and ramp
integrated into our quality
federal research centres, universities,
and PhosAgro Innovation Centre
to strengthening cooperation for food
the Company relies on Russian
up potential for cooperation
management system, which
innovation funds, and international
bring together world-class
security.
and international experience
with stakeholders and partners
is aligned with ISO 9001:2015.
R&D organisations (University
researchers, engineers, and experts
and leading research and production
in the area of innovation and research.
of Belgrade and Brazil's Federal
from various areas.
PhosAgro Group seeks to ensure
practices.
efficient and safe agricultural
production and develops innovative
Another important focus under this strategy is to ensure efficient production
and its compliance with high standards for environmental responsibility, safety,
and circular economy principles.
PhosAgro Group runs the Samoilov
University of Lavras).
Scientific Research Institute
for Fertilizers and Insectofungicides
PhosAgro Innovation Centre
(NIUIF), Russia's only institute
was established in 2018
specialising in this area.
to create cutting-edge products
Furthermore, the Company
has a competence centre
focusing on the following
areas:
promotion of core
assortment in other
countries (including
registration tests);
on-demand expertise
for related business units;
writing/editing
agrochemical materials;
monthly reviews
on cadmium and other
pollutants;
participation
in educational
programmes.
An important focus for PhosAgro
Research and education fall
Development Committee
Group is close work with reputable
within the remit of the Technical
of the Board of Directors. These
international organisations to provide
Development Department
matters are subject to an annual
broad support to humanitarian
and are discussed at the meetings
review by the Board of Directors.
and research-intensive projects.
of the Strategy and Sustainable
114
115
Company profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Risks and opportunities
Among other things,
the following strategic
risks affect our research
and educational objectives:
1
strategic planning risk;
13 regulatory risk;
19 climate risk.
For more information, see
the Strategic Risks section
on page 70
The Group develops corrective
measures as necessary
and unlocks opportunities,
including import substitution,
to mitigate those risks. Below
you can find more information
about what we do on this
front.
2
Risks specific to the Company's operations are listed below:
Non-compliance
of products’
manufacturing
process and their use
with carbon footprint
standards
1
And other environmental aspects
associated with the adoption
of the European Green Deal
(primarily the From Farm to Fork
Strategy) and potential similar
restrictions in other markets.
Insufficient
environmental
friendliness
of production
processes
Inability to ensure full
compliance of plant
nutrition systems
with specific farming
practices
3
Performance
Investments
in R&D activities
and development of new
products, RUB mln
2022
2021
2020
2,026.3
1,416.8
1,845.9
Reduction of natural gas
Pilot tests are running
consumption in production
in the production of various
processes
NIUIF experts work to reduce
fertilizer grades: NPK 10-26-26,
15-15-15 and NPS 20-20(14).
natural gas consumption
in technological processes
and associated GHG emissions
at existing MAP/DAP, NPS
and NPK fertilizer production
facilities. Measures related
to a better use of the reaction’s
heat in tubular reactors,
for example for heating
the coolant in a drum drier
or a drum dryer granulator
are a promising way to boost
the energy efficiency of fertilizer
production. In particular,
a scheme to install a tubular
reactor in a drum drier
at the Cherepovets mineral
fertilizer production unit
was introduced in 2022.
In the long term, the measures
taken will ensure:
savings in per unit
consumption of natural gas:
the actual savings range
from 10% to 20%, and there
is potential to increase
this level up to 30% vs
the baseline;
reduction of GHG emissions
by up to 20% (potentially up
to 30% vs the baseline);
higher productivity
with an up to 10% reduction
in natural gas consumption
for some grades
vs the baseline.
4
Inability
to accommodate
customers’
expectations
of advisory support
regarding the use
of our products
RUB 2,026.3mln
of investments in R&D
and development of new
products in 2022
116
117
IMPROVEMENT OF PRODUCTION PROCESSESCompany profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report
Environmental R&D, including recycling and elements of circular economy
Improvement of the nepheline
The process is based on a patented
NIUIF also continued its technical
PhosAgro Group's product
fertigation and hydroponic
digestible by plants (mixtures
concentrate processing
resource and energy-saving
analysis of potentially setting
mix expanded to 57 grades
systems. Application of water-
of monocalcium phosphate
technology
The NIUIF team is improving
technology developed by NIUIF
up a production site processing
to produce the most popular
phosphogypsum and carbon
of agrochemicals of all types
soluble fertilizers also increases
and dicalcium phosphate
in 2022. By 2030, PhosAgro
water use efficiency and reduces
with different proportions
the technology for hydrogen
products:
dioxide and manufacturing
Group plans to complete
unproductive loss of nutrients,
of these components)
sulphate treatment of Kola
• ammonium sulphate solution
crystalline ammonium sulphate,
work on and gear up
thus mitigating the negative
on granules was developed
nepheline concentrate
to be used in the production
technical calcium carbonate
for the introduction of 70 new
impact on the environment.
to slow down granule dissolution
with production of aluminium
of NS and NPS fertilizers
and its derivatives. CAPEX
products, which will include
Due to the properties of
in the soil and help synchronise
hydroxide and by-products.
on the site;
for the Cherepovets facility will
biological decomposers
monopotassium phosphate
the release of nutrients from
Compared to the current sintering
•
technical calcium fluoride
be estimated in the first half
of organic matter, crop protection
solutions, the risk of leaf burn
the fertilizer with the needs
technology, this method boasts
to be used in the cement
a lower metal intensity, higher
industry as a flux to reduce
energy efficiency, and lower
the calcination temperature
of 2023. This technology will also
reduce CO2 emissions.
carbon dioxide emissions.
On top of that, the ability
to process nepheline concentrate
of clinker mixture and improve
cement quality.
using the technology under
The method for producing
development will reduce
ammonium sulphate solution
the country's dependence
by co-processing phosphogypsum
on imported bauxites.
and fluosilicate acid is classified
as promising and is described
Phosphogypsum processing
in the Russian Reference Document
technologies
In late 2022, we decided to build
ITS 2-2019 "Production of Ammonia,
Mineral Fertilizers and Inorganic
a facility at the Balakovo
Acids".
Branch to process by-products:
fluosilicate acid (not used
In 2022, NIUIF together
in production) obtained
with the Balakovo branch
at the stage of absorption
of Apatit filed an application
of fluorine-containing
to include the ammonium
gases during concentration
sulphate solution and technical
of extracted phosphoric
calcium fluoride production
acid in vacuum-evaporating
technology in co-processing
installations, and dihydrate
of phosphogypsum and fluosilicate
phosphogypsum to produce
acid in the list of advanced
a solution of ammonium sulphate
technologies for the purpose
and technical calcium fluoride
of Special Investment Contracts
with a capacity of 20 ktpa
in terms of 100% H2SiF6. Design
and engineering documents
for the construction of the facility
are under development.
(SPIC 2.0); the application
was approved by an expert
organisation in December.
products; mineral fertilizers
and leaf curl during foliar feeding
of plants.
with controlled and prolonged
is much lower, making spraying
The novelty of the research
release, liquid and solid fertilizers
at high solution concentrations
consists in creating fertilizers
with microelements; feed
possible. In addition, as a
with delayed and controlled
additives with non-protein
result of the special properties
release of nutrients without
nitrogen sources and biological
of the solutions, the use
the use of expensive
components; growth enhancers,
of monopotassium phosphate
and environmentally unfriendly
adaptogens, amino acids.
does not pose problems
polymer coatings.
The overall focus of these
in saline or alkaline soils.
developments is biologicalisation
The acidic reaction of urea
of agriculture and reduction
phosphate solution prevents
of the environmental impact
clogging of drip lines, and when
of chemicals in intensive
it is absorbed by soil, it increases
farming, which will bolster crop
the availability of nutrients
yields and mitigate climatic
to plants and facilitates leaching
and environmental impact.
of sodium ions from the root
Development of new
fertilizers
system. The use of an acidic
component with urea can
reduce ammonia losses,
especially on alkaline soils.
Development of water-soluble
Development of inorganic
fertilizers
NIUIF continues research
into the development
of technologies for making
coatings to improve
performance and reduce
nutrient loss
In 2022, NIUIF team conducted
completely water-soluble
research on making fertilizers
fertilizers in the form of crystalline
with stronger agrochemical
products. In 2022, research
and environmental performance
involved products such as water-
based on mineral fertilizer
soluble monopotassium
grades produced by PhosAgro
phosphate and water-soluble
Group (urea, NPK fertilizers,
urea phosphate. This type
NPS fertilizers and ammonium
of fertilizers provides for the most
nitrate).
effective use of nutrients thanks
A method o f coating
to their application methods:
of inorganic compounds
118
119
IMPROVEMENT OF THE PRODUCT MIXCompany profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Currently, there
is no commercially
available technology
for the production of such
fertilizers in Russia.
The strengths of
PhosAgro Group's
innovations are:
use of inorganic
compounds digestible
by plants as a coating
material, so that the final
product contains
additional amounts
of plant-available
nutrients;
controlled rate of nutrient
release;
no negative
environmental impact
of the new fertilizer
coatings;
higher agrochemical
performance.
The increased agrochemical
of nitrogen uptake from coated
performance of the new fertilizers
fertilizer increased by 20–22%
has been proven in vegetation
and yield increased by up to 10%.
and microplot trials. In vegetation
Researchers noted enhanced
trials, rate of nitrogen uptake from
physical and mechanical
coated fertilizers rose by up to 29%,
P2O5 by up to 28%; K2O – by up to 20%;
wheat grain yield increased by up
properties of the fertilizer
(a 60–70% reduction in caking,
an increase in the static strength
to 26%; and yield quality improved.
of granules).
In field microplot trials, rate
Rate of nutrient uptake from
NPK fertilizer (vegetation
trials), %
Rate of nitrogen uptake
(vegetation trials), %
N
P2O5
K2O
58
61.5
66.7
9.5
10.9
14.1
35
40
42
+6.0%
+14.9%
+11.9%
+28%
+14.0%
+20.8%
Urea
NP(S) 16:20(12)
NPK 15:15:15
24
30.9
30.5
+28.9%
+27.2%
57
0
64
+11.8%
58
61.5
66.7
+6.0%
+14.9%
No coating
0.05 mm thick
0.1 mm thick
No coating
0.05 mm thick
0.1 mm thick
This innovation is fully
By 2025, we plan to design
in line with the principles
and build a pilot plant
of green chemistry and in line
with a capacity of 5–7 t/h. This
with the International Code
will enable us to bring our
of Conduct for the Sustainable Use
coating capabilities as close
and Management of Fertilizers (FAO)
as possible to our production
for the production and application
capacities, with production
of mineral fertilizers.
at the Company's facilities
potentially set up going forward.
In 2023, further efforts are planned
in this area, including the registration
of such fertilizers and market
research to analyse market demand
for these products.
Development of biologised
plant respiration, decomposition
fertilizers
In 2022, PhosAgro Group,
of crop residues and straw. Thus,
higher yields with lower aggregate
Production
of mineral fertilizers
with micronutrients, kt
together with the Russian
biomass of plants for comparable
State Agrarian University –
doses of fertilizers is the indicator
Moscow Timiryazev Agricultural
that determines a smaller carbon
Academy, conducted the first
footprint of mineral fertilizers.
tests of the impact of mineral
fertilizers and their biologised
The tests also revealed a prominent
counterparts on the climatic
role for micronutrients in increasing
footprint of products. The climatic
root biomass, which could
footprint of crop production
potentially be used to "conserve"
includes nitrous oxide emissions
carbon in the soil. In 2023, we plan
from soil resulting from
to scale up the tests to cover
nitrogen conversion processes
microplot trials and to study
in mineral and organic fertilizers
the carbon footprint of mineral
as well as carbon emissions from
fertilizers more extensively.
2022
20211
20201
1,329.6
1,691.1
621.3
1 For grades registered as fertilizers
with micronutrients in 2020,
production output since 2021
is presented.
No. Fertilizer
Crop yield,
g/chamber
Increase vs
the control
Extra yield resulting
from biologisation
CO2 footprint,
g/chamber
Decline resulting
from biologisation
1
2
3
Control (no fertilizer)
NPK(S) 8:20:30(2)
Bio-NPK(S) 8:20:30(2)
NPK(S) 15:15:15(10)
Bio-NPK(S)
15:15:15(10)
4
DAP NP 18-46
Bio-DAP bio-NP
18-46
MAP NP 12-52
Bio-MAP bio-NP
12-52
Urea N 46.2
Bio-urea bio-N 46.2
5
6
average g/chamber
15.5
21.7
22.0
20.7
21.0
21.7
22.5
22.3
23.7
21.1
21.4
–
6.2
6.5
5.2
5.5
6.2
7.0
6.8
8.2
5.6
5.9
%
–
–
1.4
–
1.5
–
3.7
–
6.3
–
1.4
average
54.7
82.4
77.8
77.9
74.6
71.7
71.5
76.3
74.5
72.0
68.1
%
–
–
6.9
–
5.6
–
3.8
–
8.1
–
3.2
120
121
Company profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report
Other innovative products
Manufacturing of a new
product – ApaSil
In 2022, the Company
Production of phosphates
food grade sodium and potassium
Developing in-house catalyst
In the reporting year, as part
liquid sulphur dioxide is no
and purified phosphoric acid
In 2022, NIUIF experts started
phosphates from PhosAgro's own
purified phosphoric acid. Given that
comprehensive research
these high-quality substances are not
for sulphuric acid and liquid
of a project for vanadium sulphuric
longer supplied from abroad.
sulphur dioxide production
In 2022, the NIUIF, Russia's leading
acid catalysts, our experts prepared
the required inputs and estimated
In 2022, the NIUIF made research
of a technology for producing sodium
produced in Russia and are imported,
research centre specialising
costs for the feasibility study
to obtain and assess the quality
continued to develop products
and potassium phosphates used
the launch of local production will
in sulphuric acid production
of 900 ktpa in-house production
of samples. The outcomes show
with innovative features.
as food additives and comparable
contribute to import substitution
technologies, focused on two very
of such catalysts for PhosAgro
that the product is sufficiently
In particular, we have marketed
in quality to those from the leading
and food security.
relevant areas in the new economic
Group's needs. In 2023,
pure and compliant
ApaSil, a product designed
global suppliers. The research seeks
landscape – creating in-house
we plan to use the input data
with the applicable domestic
for seed pre-treatment
to obtain the most popular additives –
On top of that, the NIUIF is currently
production of high-performance
to develop design documents
standard. The NIUIF
and foliar application on a wide
disodium pyrophosphate (E450(i)),
developing a solution for food grade
vanadium sulphuric acid catalysts
for the production unit.
plans to continue rollout
range of agricultural crops
sodium pyrophosphate (E450(iii)),
phosphoric acid to be purified
and launching a new production
and development of technical
and ornamental plants on all
sodium tripolyphosphate (E451(i)),
through solvent extraction using
process for liquid sulphur dioxide.
The NIUIF also continued efforts
solutions for a 20 ktpa pilot-
types of soils. Field trials
sodium hexametaphosphate (E452(i))
organic extractants. This product
Before 2022, domestic consumers
to introduce a patented process
scale production in 2023
in different regions, on different
and dipotassium phosphate (E340(ii))
has not been produced in Russia
purchased these products mainly
for obtaining liquid sulphur dioxide
with subsequent adjustment
soils and crops have shown
vital for the meat, fish, dairy, bakery
this way and has been imported
from foreign producers, whose exit
by burning sulphur under oxygen
of parameters and equipment
that ApaSil helps plants cope
and other food industries. The work
from Kazakhstan, China and other
from the Russian market brought
deficiency condition. Widely used
operation. This project will help
with the stresses associated
will continue into 2023 and will
markets. We plan to use our own
about major challenges as well as new
in the Russian petrochemical, pulp
fully meet Russia's demand
with drought, soil salinity
serve as a basis for developing key
purified phosphoric acid to produce
opportunities for local R&D.
and paper, glass and wine industries,
for liquid sulphur dioxide.
and fungal diseases.
technical solutions to produce
high-margin feed phosphates.
122
123
Company profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Phosphogypsum application
A data analysis and target market
research
Phosphogypsum is a valuable
review has identified eight focus
areas for selling phosphogypsum.
by-product of the production
Currently, we can cover three
of mineral fertilizers. It includes,
of them:
among other things, such
• agriculture;
elements as calcium, sulphur,
•
road construction;
phosphorus, zinc, silicon,
• cement production.
magnesium, copper, which
are important for the soil.
After identifying new applications,
The use of phosphogypsum
the Company more than doubled
enhances the soil structure,
phosphogypsum sales for the year
its water and air permeability,
and achieved a more than 20 times
improves leaching highly soluble
increase compared to 2021 and 2019
salts, and shapes favourable
respectively.
conditions for the development
of soil biota. Phosphogypsum
In 2022, we sold 91.6 kt
makes it possible to increase
of phosogypsum, including 43.3 kt
productivity of arable lands
for agriculture, 45.3 kt for road
and reduce the cost of crop
construction and 2.6 kt for cement
production. The International
production, while also expanding our
Fertilizer Association (IFA)
customer base.
For more information, see
the Environmental Review section
on page 190
recognised PhosAgro’s
production of improved
phosphogypsum and its use
in agriculture as a best practice.
In November 2021, we made
a decision to merge all our
phosphogypsum-related
operations into one project.
Project goals by 2026:
Improving sales volumes;
Reducing phosphogypsum
accumulations at dump
sites;
Increasing phosphogypsum
recycling rates.
In 2022, we sold
91.6 kt
of phosogypsum
Research as part of PhosAgro's
The coniferous seedlings grew from
Agricultural Academy
carbon farm project in the Vologda
seeds of native trees.
region
To combat climate change
in the long run and study CO2
compensation and absorption
In Cherepovets and Vologda regions,
we set up 100 ha trial stations 100 km
rotation at the farming station.
away from each other to study
According to the research,
researched plant nutrition
systems and N2O emissions
in five-year grain-grass crop
of our carbon emissions by various
carbon sequestration abilities
balanced mineral fertilization,
ecosystems, we started building
of perennial forage grasses cultivated
soil liming as necessary
a carbon farm.
using a variety of fertilization
and organic fertilizer application
schemes. In Vologda region,
deliver excellent yields
The project's main objective
forage grasses are the basic crop
and reduce GHG emissions.
is to accumulate knowledge
with the greatest GHG absorption
Importantly, the effects
and expertise in cooperation
potential.
with the research community
and study CO2 absorption by various
crops (forage grasses, grain
Together with scientists
of the Russian Academy of Sciences,
cereals and pulse crops), young
we are doing research at 48
coniferous and deciduous forests,
agricultural sites of spontaneous
are calculated for a five-year
cycle. In particular, liming done
in the first year will result in soil
carbonate decomposition
and higher CO2 emissions, but
based on a once in five years
and agricultural sites with varying
vegetation to find the ways
application, the research shows
organomineral nutrition regimes.
of returning abandoned lands
a definite increase in yields
to agricultural uses, study
from limed fields coupled
In 2022, we planted 24 types of forest
agricultural practices with reduced
with decreasing average carbon
with various mixes of deciduous
GHG emissions and carbon farming,
footprint per product unit.
(willow, birch and aspen)
and obtain precise measurements
and coniferous (fir and pine)
of the carbon footprint from crops
We plan to complete the project
trees at a 100 ha plantation near
grown for food.
the Cherepovets site. In total,
the plantation accommodated
79,800 deciduous and 28,800
coniferous young seedlings.
Young deciduous trees cultivated
In the first year of trial, we estimated
CO2 absorption by plant biomass per
200 ha of land at 2,751 t.
to create the carbon farm
in 2026, with the most effective
CO2 storage vegetation systems
to be selected based on obtained
data and further research
to enable us to verify the results
specifically for the Vologda region
As part of the project, the Company
internationally and use them
through microclonal propagation
and the Russian State Agrarian
to scale up and fully implement
grow fast and cannot propagate.
University – Moscow Timiryazev
the initiative by 2028.
In total, the plantation
accommodated
deciduous and
79.8 thousand
28.8 thousand
coniferous young
seedlings
124
125
APPLICATION IMPROVEMENTCompany profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Cooperation in innovation
Partner
Partnership goals
Key results in 2022
Our strategy
for innovating
and helping students,
teachers and farmers
to develop profession
competencies relies
on partnerships
with the leading
agricultural universities
and R&D centres.
Russian Academy of Sciences
(RAS)
Cooperation across a range of areas
related to the climate agenda and low-
carbon transition plan
• We set up the carbon farm, planted
• Further progress in implementing other
young trees and purchased
the required equipment as part
of the relevant project.
projects involving leading Russian
scientists to develop and promote
innovative products:
– biotechnologies and feed additives
developed;
– new biomineral fertilizers tested
and registered;
– a pipeline of new promising projects
built.
RAS Pushchino Biological
Research Centre
Partnership in promoting basic
sciences and research in microbiology,
biotechnologies, gene and cell
engineering, photobiology, soil
and environmental management,
and physicochemical biology
• PhosAgro was an official partner
of the 25th Pushchino school-
conference of young scientists called
Biology – the Science of the 21st
Century. The event saw the first
PhosAgro awards distributed
for the best research projects
and practices in implementing
R&D in three categories – soil
management, agroecology
and plant biology. Over a thousand
young scientists from all
over Russia and beyond took part
in the conference.
Partner universities
Creating PhosAgro’s nationwide
educational network across
30
agricultural universities
in Russia
Institute of Chemistry
and Sustainable Development
at Mendeleyev University
of Chemical Technology
and the UNESCO Chair of Green
Chemistry for Sustainable
Development
Partnership in promoting basic sciences
and research in chemistry and related
fields to further sustainable development
globally
More than 200 online lectres
were held for 30 agricultural universities;
The lectures brought together
22,700
students and teachers from across
Russia and the CIS.
•
The lectures covered multiple
themes, including agrochemistry
and agronomy, crop production,
innovations and digitalisation
in agriculture, economics, law
and responsible farming.
• Capabilities for conducting scientific
experiments were set up at PhosAgro
Educational Centre’s Phyto-Class
of the Moscow Timiryazev Agricultural
Academy.
• Vocational profiling organised
jointly with teachers of the Moscow
Timiryazev Agricultural Academy
was made available to school
students.
• An N.P. Laverov scholarship
• A series of webinars was organised
programme was established
for young scientists from
Mendeleyev University of Chemical
Technology who do research
in ecology, environmental
management, new materials
and substances. The scholarship
is granted to the 20 best students
and postgraduates.
for Bachelor's and Master's
students at the UNESCO Chair
of Green Chemistry for Sustainable
Development at Mendeleyev
University of Chemical Technology.
The focus areas were aligned
with the UN’s 17 Sustainable
Development Goals.
126
127
Company profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report
International humanitarian projects
GRI 2-28
In line with our strategic goals,
of biodiversity conservation,
we support young scholars and their
environmental well-being
projects addressing the challenges
and the circular economy.
PhosAgro runs multiple humanitarian projects
focused on building a modern education
and science framework.
Partner
Project and goals
Key results in 2022
Partner
Project and goals
Key results in 2022
UNESCO
Green Chemistry for Life, a joint grant programme
by PhosAgro, UNESCO and IUPAC
Financial support and scientific guidance for young
scholars doing research in emerging Green Chemistry
technologies to address environmental challenges
and ensure sustainable use of natural resources
International Competence Centre for Mining
Engineering Education under the auspices
of UNESCO
The Centre is based at St Petersburg Mining University
and plays an important role in implementing the UN
Sustainable Development Goals, such as improving
the quality of education, combating climate change,
and protecting and restoring ecosystems
• Contracts in green chemistry research
were awarded to the seventh round winners from
Africa, Asia, Europe and Latin America.
• Over the nine years of the programme's existence,
its International Scientific Jury considered more
than 800 applications from young scientists repre-
senting 125 countries. More than 40 scholars from
29 countries received grants.
• A member of the Centre's Steering Committee,
PhosAgro actively participates in professional cer-
tification of experts for compliance with interna-
tional mining engineering requirements.
• We took part in the International Forum
for the 50th Anniversary of the Convention
Concerning the Protection of the World Cultural
and Natural Heritage (Conference on Nature
Management and Preservation of the World
Natural Heritage).
• Our experts shared their experience in educational
projects at the international forum dedicated
to major subsoil use challenges which hosted
over 900 young scientists from 57 universities
of Europe, Asia, Africa and Latin America.
IUPAC
Summer Schools on Green Chemistry project run
jointly by PhosAgro, IUPAC and Green Sciences
for Sustainable Development Foundation
IUPAC's educational initiative supported by PhosAgro
to improve the qualifications of young scholars
engaged in green and innovative chemistry research
globally with a view to promoting technological
innovations and breakthroughs
• The fifth Summer School session called Chemistry
Addressing UN-17 Sustainable Development Goals
took place, with PhosAgro's personal awards estab-
lished for young researchers for the best projects
in green chemistry. More than 150 postgradu-
ates and young scientists and about 30 profes-
sors and teachers from 45 countries participated
in the session.
UN Food
and Agriculture
Organisation (FAO)
Development of Sustainable Agriculture through
the Implementation of the Global Soil Doctors
Programme and the Creation of the Global Soil
Laboratory Network (GLOSOLAN)
Promoting sustainable soil management among
farmers and expanding the Regional Soil Laboratory
Network (RESOLAN) in Africa, Latin America
and the Middle East; achieving environmental
and social well-being by raising awareness of soils
to inform sustainable farming decisions
• Since the start of the project in 2018, a total
of five training sessions have been held, bringing
together over 600 young specialists and 60 teach-
ers from 75 countries.
• Since 2018, PhosAgro's total contribution to the pro-
ject has reached USD 2.4 mln. Over this period, FAO
has created the Global Soil Laboratory Network
(GLOSOLAN) of more than 800 laboratories in 150
countries.
• PhosAgro, FAO Liaison Office for the Russian
Federation, Eurasian Soil Partnership, the Russian
State Agrarian University – Moscow Timiryazev
Agricultural Academy and the Diplomatic Academy
of the Russian Ministry of Foreign Affairs coorgan-
ised an international forum dedicated to the global
challenges of the 21st century to food systems
and environmental safety.
• PhosAgro also financed the opening of the Russian
Lounge at the FAO headquarters, which is set
to become the key venue for receiving high-level
delegations from the UN Member States.
International
Fertilizer Association
(IFA)
As a core member of the IFA, PhosAgro contributes
to the association by providing expert advice
on a wide range of topics
United Nations
Global Compact
European
Sustainable
Phosphorus Platform
(ESPP)
As a Global Compact Lead company, PhosAgro
contributes to the initiative by providing expert
advice on a wide range of topics
• The Global Compact Lead status makes it possible
to engage in the discussion of the international
agenda while actively liaising with other
international organisations and contributing
to the development of new business approaches,
regulations and standards globally.
• Contributing to the UN Sustainable Development
Goals through projects implemented
by the Company as a responsible producer
of environmentally friendly and efficient mineral
fertilizers committed to food security, environmental
safety and human health protection
• Enhancing global partnerships for sustainable
development
• Articulating an expert point of view on major issues
on the global agenda
• Participating in global initiatives aimed
at addressing today’s global challenges
Partnership on the European political, scientific
and technical agenda for the sustainable use
of phosphate resources
Fostering knowledge exchange, experience transfer
and professional networking in phosphorus
management; promoting dialogue between market
participants, stakeholders and regulators; removing
regulatory barriers; effecting communication through
newsletters, website, conferences and publications
•
•
In the reporting year, PhosAgro's experts sat
on IFA’s International Committees on Agriculture,
Safety, Health and Environment, International
Trade, and Communications and Public Affairs.
IFA recognised PhosAgro’s agricultural use
of improved phosphogypsum certified in Russia
as a best practice for this multi-component
product.
• We retain our status of a Global Compact Lead
company and are actively involved in the alliance's
initiatives.
• PhosAgro demonstrated its commitment
to the UN Global Compact by vigorously support-
ing Climate Ambition Accelerator and CEO Water
Mandate initiatives to combat climate change
and ensure the efficient use of water resources
and their protection.
• At the UN Climate Change Conference (COP27),
we joined the Business Declaration for Climate
Resilient Water, Sanitation, and Hygiene (WASH)
supported by 26 leading global companies
and 15 expert organisations committed to the care-
ful use of water resources.
• PhosAgro Group participated in the European
Sustainable Phosphorus Conference that brought
together several hundreds of representatives
of business, stakeholders, regional and national
authorities. At the event, we presented our best
practices of phosphogypsum application in road
construction.
Safer Phosphates,
an international alli-
ance of environmen-
tally friendly fertilizer
producers
Partnership in protecting human health
and agricultural ecosystems from contamination
with heavy metals
• OPERA Research in partnership with Safer
Phosphates and Euractiv pan-European media
network organised a webinar on the soil health
for sustainable agriculture. The event attracted
more than 100 participants from among the scien-
tific and business community, experts and NGOs.
128
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Company profileCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Supply chain
AREA, STRATEGIC GOALS AND METRICS
KEY PROJECTS AND HIGHLIGHTS OF 2022
PROCUREMENT FUNCTION DEVELOPMENT
Target 12.4
• Establishing into long-term relationships for the supply
of inventory
–
long-term agreements
– consignment warehouses
– online shops
Target — 30%
purchased range
• Further development of category strategies
•
Lower reject rate
ESG EVALUATION OF SUPPLIERS
Targets 8,3, 12.4 and 13.2
• Maintaining an ESG evaluation coverage of
at least 50% of counterparties that participated
at least 30% of procurement volume from
the evaluated counterparties
in the procurement
• Audits
• Updating the information provided by counterparties
as part of the ESG survey, if more than a year has elapsed
since the information was provided
DIGITAL TRANSFORMATION
Target 9.1
• Process Mining development
•
Introducing new robotic solutions
20%
procurement from SMEs
17%
procurement from local
suppliers
The category strategies cover:
15
raw material categories
16
categories of materials
and equipment
2
categories of work
and services
54%
of suppliers covered
by ESG evaluation
to 35%
rise in procurement from
evaluated suppliers
82
technical audits
of potential suppliers
of materials and equipment
were carried out
49
suppliers (60%) were recommended
for cooperation based
on the environmental and social
assessment criteria included
in the technical audit form
Setting up an ESG training system
for suppliers
Mutual improvement agreement
for services, raw materials,
and inventories
Training materials are available on the Company's official
website in the Procurement section
• Process Mining, an innovative method of data analysis and business
process optimisation to manage procurement.
• SCOUT system to verify and monitor the integrity of suppliers.
• Further development and implementation of an automated
procurement workstation.
130
131
About CompanyCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Strategy
PhosAgro’s procurement system
of the Company’s sustainable
including our environmental
Management approach
GRI 3-3
seeks to ensure that the Group’s
development. In 2022, our
and social assessment of suppliers,
The main objective of procurement
Interaction with suppliers relies
The Company's procurement
subsidiaries receive the required
procurements of goods and services
as well as anti-corruption
is to ensure that the Company's
on full transparency in decision-
process uses the following
resources, materials, and services
reached almost RUB 214 bln.
mechanisms, directly promote
needs for equipment, materials,
making, market and formula pricing,
business solutions and tools
of adequate quality in full
Thousands of our suppliers
sustainable values across the Russian
and services are met in a timely
and long-term relationships.
to improve its efficiency.
and at reasonable prices. However,
and contractors benefit directly from
business community. These values
there is much more to the principles
these investments, and so do their
are the bedrock of our business
and business processes underlying
employees, who have to provide
philosophy. We work to ensure that
manner, in full and at the best
possible prices.
The Company operates a convenient
open system for the procurement
our procurement activities.
for their families. We contribute
our procurement activities have
The Group is committed
of goods and services. Procurement
We believe that running a supply
to the public budget at various
a strong positive impact on all our
to establishing and maintaining
procedures are competitive,
1
Category
management:
the development
chain in an efficient and responsible
levels. But what is more important
stakeholders.
business relationships
and information on the needs
and implementation
manner is the cornerstone
is that the tools that we employ,
RUB 214 bln.
total procurement
of goods and services
with companies that operate
for materials, equipment or services
of category strategies can
in line with high ethical standards
is published on PhosAgro's EBP.
and combat corruption. Therefore,
To participate in the bidding,
significantly reduce costs,
increase reliability of supply
any supplier that registers
suppliers have to sign up and read
and improve economic
on the Company's electronic
the regulations. Evaluation
efficiency.
bidding platform (EBP) must
and selection of a supplier are set
read and understand the above
out in the Company's procedures.
regulations.
Procurement activities
The Company's procurement
activities are governed by:
• Procurement Policy;
• Anti-Corruption Policy;
• Code of Ethics;
• Code of Conduct
for Counterparties.
The Company has an anti-fraud
and anti-corruption system in place.
PhosAgro seeks to minimise
the risks of doing business
with suppliers that might
be involved in corruption. To this
end, the Company has set up
a corporate hotline for suppliers
and other stakeholders to report
on potential irregularities.
For the link to the registration form, main regulations,
the EBP registration instructions and step-by-step guide, see
the Procurement section of the Company's official website.
For information about the hotline, see the registration page
of PhosAgro’s electronic bidding platform.
2
IT solutions:
• Process Mining,
an innovative method
of data analysis
and business process
optimisation to manage
procurement;
• SCOUT system
to verify and monitor
the integrity of suppliers.
The system helps
to minimise the existing
risks and losses
by introducing a uniform
auditing standard,
monitor the condition
of suppliers in real time
and respond to changes
in a timely manner.
3
Robotisation
of processes
132
133
About CompanyCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Efficient structure
Procurement management structure
The past year saw significant
changes to the structure
of the Procurement Department
aimed at both improving its overall
efficiency and adapting to new
economic realities.
The Procurement Department
Level
Organisational unit
Key responsibilities
BOARD OF DIRECTORS LEVEL
Board
of Directors
Strategy
and Sustainable
Development
Committee
of the Board
of Directors
• Setting strategic priorities
in procurement;
• review of the executive management's
procurement reporting.
is responsible for:
COMPANY MANAGEMENT LEVEL
• strategic sourcing of raw materials
and services;
• operational procurement;
• project-based procurement;
•
local procurement;
• alternative procurement
(including strategic sourcing
of materials and equipment
procurement);
• supply chain management;
• planning and analysis.
In order to assess performance,
increase employee engagement
and motivation, the Department
has established KPIs in line
with the Company's business
objectives to evaluate the extent
to which the Department's objectives
have been achieved and processes
streamlined.
The performance of the Company's
procurement function is subject
to annual review by PhosAgro's
Board of Directors.
Procurement
Department
management
Director (Supervisor,
officer-in-charge)
of the Department
• Organising the overall operation,
allocation of functions, business
development strategies, definition
of methodologies and procedures
for the uninterrupted supply
of tangible assets.
Deputy Director
• Meeting the Company’s needs
Department Director
Head of Division
for equipment and materials, controlled
materials, and services in a timely
manner, in full and at the best possible
prices;
OPERATIONAL LEVEL
Operational
staff of the
Procurement
Department
Heads of units
and working groups
Specialists
• Apatit's warehouse inventory
management;
• day-to-day functioning
of the Department;
• supervising operations
of the Department's structural units,
allocation of functions;
• developing a strategy
for re-engineering of business processes
in the Department, etc.
• Managing operations of subordinate
business units, selecting and deploying
staff, determining the relevance of their
work;
•
improving the skills of the subordinate
staff, creating a favourable social
and psychological climate in the team,
fostering and maintaining corporate
relations;
• organising and directly supervising
the compliance of the subordinate staff
with regulations;
• acting in accordance
with the requirements
of the management system,
contributing to its improvement within
their remit, etc.
• Meeting the Company’s needs
for equipment and materials,
controlled materials, and services
in a timely manner, in full
and at the best possible prices;
• professional development
and upskilling.
Challenges of 2022
Geopolitical factors had
substitution of goods in signed
supply chains in place, and took
a significant impact on PhosAgro
deals. In addition, banking
a number of steps to improve
Group's supply chains in 2022.
operations with foreign suppliers
the Department's operational
The US, EU, Japan, and a number
became more complicated.
efficiency. The timely and successful
of other countries ceased
To respond to these challenges,
action enabled us to adapt
the supply of equipment. Many
PhosAgro introduced structural
to the new conditions in a short
contracts had to be renegotiated
changes in the Procurement
space of time, restore the continuity
with amendments to deadlines,
Department, organised alternative
of supply to our operations,
prices and payment terms,
procurement with a shift
and maintain an appropriate level
logistics routes and, in many cases,
in geographic priorities and new
of supply stability.
Risks and opportunities
The following strategic risks affect
14 Corruption
our procurement objectives (for more
information, see the Strategic Risks
18 Commodity risk
section):
The Group develops corrective
measures as necessary and unlocks
opportunities to mitigate those risks.
Below you can find more information
21 Sanctions risk
about what we do on this front.
For more information, see
the Strategic Risks section, p. 70
Procurement-specific risks are:
2
Suppliers’ failure
to perform, changes
in the product range
or late delivery of raw
materials, commodities,
and equipment
Violations of ESG principles
by suppliers, including
breach of human rights, use
of child and forced labour,
non-compliance of products
with environmental
standards, etc.
Quality of raw
materials, commodities,
and equipment,
dissatisfaction
of the internal customer
1
3
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135
About CompanyCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Key results in 2022
Cost budget in 2022
Breakdown of procurement costs
RUB 213.9 bln.
the Company’s total
procurement costs
>50%
of procurement
costs are related
to raw materials
and fuel
17%
57%
26%
Materials and equipment
Raw materials and fuel
Work and services
The Company’s procurement costs
offices of the Russian Union
Agency in Cherepovets,
in 2022 totalled RUB 213.9 bln,
of Industrialists and Entrepreneurs
as well as at exhibitions and strategy
of which raw materials and fuel
and the Urban Development
sessions.
accounted for 57%.
GRI 204-1
One of PhosAgro’s top procurement
priorities is to cooperate with small-
Share of local
procurement, %
Share of procurement
from other suppliers, %
and medium-sized enterprises
(SMEs), primarily in the regions
where the Company’s key assets
are located. In the existing political
and economic environment,
we view active development of this
cooperation benefiting all parties
to be even more important.
In 2022, as part of the Synergy
of Growth agreement signed
in 2020 between the government
of the Vologda region, Apatit,
Severstal and Urban Development
Agency coordinating business
development in Cherepovets,
we published detailed information
on the Company’s need for import-
substituting products on Electronic
17
19
2022
2021
23
2020
2022
Business Cooperation, an information
2021
platform, to identify opportunities
for local producers to make
and supply these products.
PhosAgro also regularly
participates in online and offline
meetings held in the regional
2020
83
81
77
2022
2021
2020
2022
2021
2020
20
13
14
18
23
13
23
14
27
21
35
11
80
87
86
82
77
87
77
86
73
79
65
89
Apatit
Balakovo branch of Apatit
Volkhov branch of Apatit
Kirovsk branch of Apatit
Apatit
Balakovo branch of Apatit
Volkhov branch of Apatit
Kirovsk branch of Apatit
Procurement in 2022, RUB mln
Number of suppliers
in procurement in 2022
2022
2021
2020
SMEs
Imports
Total
Service procurement
No. KPI
1
2
3
4
Average number of tender participants in the reporting
period
Tender price reduction in the reporting period, %
Holding tenders on time, %
Bidders’ motivation assessment with respect
to procurement quality
Commodity procurement
No. KPI
1
2
3
Timeliness of procurement, %
Reject rate at incoming control, %
Commodity price control index, %
Raw materials procurement
No. KPI
42,143.2
5,914.8
213,910.7
29,918.4
4,389.3
150,006.7
20,203.7
2,878.5
104,069.3
2,478
72
3,511
SMEs
Imports
Total
Scale
Actual
Worst
Critical
Target
3
5
90
3.5
5
7
95
4.5
7
12
100
5
4
10
99
5
Scale
Actual
Critical
Target
Challenge
87
5
1.05
90
3
1
93
2
0.95
89
6
0.93
Scale
Actual
Critical
Target
Challenge
1
Raw materials procurement index
1.05
1
0.95
0.79
136
137
About CompanyCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report Supplier ESG evaluation
In 2020, based on the principles
for assessing the Company’s
supplier shares these principles.
of sustainable development set
and suppliers’ performance
An individual supplier rating is based
forth in the Code of Conduct
to ensure sustainability and reliability
on the checklist.
for Counterparties, PhosAgro
in order to benefit our consumers.
developed a system to evaluate
It includes questions on compliance
We believe that making suppliers
suppliers against ESG criteria relying
with the principles of environmental
aware of the Company’s system
on the Sustainable Procurement
and social responsibility guiding
of values will contribute to a more
Indicators checklist. The checklist
PhosAgro’s operations. The completed
responsible and sustainable business
is part of an overall framework
checklist confirms that the Company’s
culture in the long run.
To raise awareness of the existing evaluation system and of the need to complete
the checklist, training materials on engaging with suppliers in sustainable
development were published on the official PhosAgro website.
Environmental assessment indicators
show that 33% of suppliers have
an innovative and forward-looking
environmental policy and contribute
to the protection of the environment.
Technical audits have not identified any
counterparties failing to comply with recognised
standards with regard to environmental impact.
Supplier environmental assessment in 2022
GRI 308-1, 308-2
No.
Indicators
1
2
3
4
Number of rated suppliers
Number of rated suppliers producing raw materials, fuel, energy, and commodities
Number of rated suppliers producing raw materials, fuel, energy, and commodities that have
an environmental management system certified to comply with ISO 14001 or a similar standard
Share of rated suppliers producing raw materials, fuel, energy, and commodities among counterparties
that have an environmental management system certified to comply with ISO 14001 or a similar
standard, %
2022
1,888
847
276
33
Key ESG evaluation
indicators
All categories of suppliers
were assessed for environmental
impact. Suppliers with an
The indicators for 2022 are based
environmental management
on the total number of suppliers
system certified to comply with
taking part in procurement
ISO 14001 or a similar standard
and the number of rated suppliers.
accounted for 33% of evaluated
This methodology will apply
producers of raw materials, fuel,
to future periods as well.
energy, and commodities.
No.
Indicators
1
2
3
4
Number of suppliers that participated in the evaluation
on PhosAgro’s EBP
Number of suppliers taking part in procurement
Number of rated suppliers
Share of rated suppliers, %
Total procurement, RUB bln
Procurement from rated suppliers, RUB bln
ESG evaluation coverage by procurement volume, %
Average supplier rating (on a 100 point scale), points
2022
4,574
3,511
1,888
54
213.9
74.8
35
62
Number of suppliers
that participated
in the evaluation
on PhosAgro’s EBP
2022
2021
4,574
3,031
Number of rated
suppliers
2022
2021
1,888
1,046
ESG evaluation coverage
by procurement
volume, %
2022
2021
35
24
Average supplier rating
(on a 100 point scale),
points
2022
2021
62
54
33%
of the evaluated
suppliers in the key
category have
a certified
environmental
management system
in place
138
139
About CompanyCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report 39 %
of suppliers exhibit proactive
and responsible behaviour
towards occupational safety
The results show that more than
Some 39% of suppliers in the stated
half of suppliers share PhosAgro’s
categories exhibit proactive
commitment to equal opportunity
and responsible behaviour towards
policies, do not tolerate harassment
occupational safety and ensure
or other disrespectful behaviour
compliance with international
towards employees and adopted
standards set to control working
a zero-tolerance stance on child
conditions and mitigate occupational
labour.
and industrial risks.
Technical audits have not identified any counterparties failing to comply with
recognised standards with regard to environmental impact
Supplier social assessment in 2022
GRI 414-1, 414-2
No.
Item
Number of rated suppliers
1
2
3
4
Number of rated suppliers in the categories “Producers of raw materials, fuel, energy,
and commodities”; “Logistics services”; “Construction and installation, repairs”
Number of rated suppliers in the above categories that have an occupational health
and safety management system certified to comply with ISO 45001 (OHSAS 18001),
or a similar system
Share of rated suppliers in the above categories that have an occupational health
and safety management system certified to comply with ISO 45001 (OHSAS 18001),
or a similar system, %
Number of rated suppliers taking part in procurement that adopted a zero-tolerance
policy on child labour*
Share of rated suppliers in the above categories that adopted a zero-tolerance policy
on child labour, %
Number of rated suppliers in the categories “Producers of raw materials, fuel, energy”,
“Commodity producers and intermediaries”; “Logistics services”; “Construction
and installation, repairs”
Number of rated suppliers in the above categories that adopted a zero-tolerance
policy on discrimination
Share of rated suppliers in the above categories that adopteda zero-tolerance policy
on discrimination, %
Number of rated suppliers in the categories “Producers of raw materials, fuel, energy”,
“Commodity producers and intermediaries”; “Logistics services”; “Construction
and installation, repairs”
Number of rated suppliers in the above categories that adopted a zero-tolerance
policy on forced labour
Share of rated suppliers in the above categories that adopted a zero-tolerance policy
on forced labour, %
Result
1,888
1,174
452
39
1,091
58
1,524
831
55
1,524
856
56
140
141
About CompanyCorporate governance Share capitalAppendices PERFORMANCE REVIEW Strategic report People
development
AREA, STRATEGIC GOALS AND METRICS
KEY PROJECTS AND HIGHLIGHTS OF 2022
ANNUAL EMPLOYEE SURVEY
• Maintaining employee satisfaction
and loyalty at
no less than 65%
by 2025
Target 3.4
Target 8.3
69%
employee satisfaction
and loyalty
87%
share of employees
who praised
the management’s
performance
70%
employee engagement
TRAINING AND EVALUATION
•
Increasing average annual
training hours per employee
to 123 hours
by 2025
Target 4.4
99.8 hours
average annual training hours
per employee
• Promoting retraining and professional
development
•
Investing in future talent
INCENTIVES AND REWARDS
• Motivating the staff to increase productivity and deliver
strong operating results, retaining qualified talent
Target 8.3
•
Training future top managers from among internal
candidates
SOCIAL BENEFITS
AND EMPLOYEE
GUARANTEES
Target 3.4
Target 8.3
and 8.8
INCLUSIVE ENVIRONMENT
• Building an inclusive environment for disabled people,
adapting workplaces and municipal infrastructure
to their needs, and employing more such people
depending on business requirements
Target 8.5
and 8.8
GENDER EQUALITY
• Providing all employees with opportunities
for professional and career growth
Target 8.5
and 8.8
RUB 272 mln
invested in employee training
We keep rolling out a virtual teaching package
and a distance learning system
over 400
people hired as part of career
guidance and youth engagement
initiatives
Over 37%
of High-Potential Graduates employed
by the Company were promoted and included
in the talent pool
Average salary increased
by 18.7%
RUB 132,110
Company's average monthly
salary
10 mentors
selected from among current top
managers
50%
more investments in social
programmes for employees
89%
satisfaction with the social
benefits offered
We organised a job fair for disabled
people
We streamlined cooperation with employment
centres to facilitate the employment
of disabled people
21.5%
of women among
managers of all levels
16%
of women in the Company’s
Top 40 Talent Pool (6 out of 38)
34%
of women in the Company’s
total headcount
142
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report Strategy
Our key asset is talented,
professional, and committed
employees that share our corporate
goals and values. The Company’s
entire HR framework is geared
towards recruiting, supporting
and motivating employees
to achieve the most ambitious goals.
To this end, we provide a wealth
of opportunities to enhance skills
and knowledge, take consistent
efforts to foster a culture of safety,
equality and respect, and offer
competitive salaries and social
benefits.
2022 accolades
• A top 100 Russian employer
according to hh.ru
• Gold status in the 2022 rating
of Russia's best employers
from Forbes
• Winner among industrial
companies according
to Delovoy Peterburg
• Grand Prix of the national
competition of youth
employment best practices
in the category Best Practices
in Preserving the Region's
Youth Talent Potential
• Two employees recognised
as winners of the Engineer
of the Year contest
• Three employees named
Russia's Professional
Engineers
• The Company's employees
received 17 state awards,
including one medal
of honour for labour
achievements from
the Russian President
Management approach
GRI 3-3
To deliver on our objectives, we:
implement a remedial action
plan called Growth Area based
on the annual employee survey
results;
develop and implement
e-learning modules on blue-
collar jobs, occupational safety,
and managerial skills; leverage
an innovative approach
to professional training (virtual
reality simulators, 3D models,
production training grounds
for improving workplace safety
skills, among other things);
draft and put in place online
training courses on personal
competencies;
develop a system of corporate
libraries, guidelines,
and knowledge management
at large;
introduce succession
and training support tools
such as mentoring, coaching
and supervision;
assess the application of skills
acquired by the staff involved
in real business operations
and project activities.
We rely on a robust performance
Integrated HR management framework
management system that covers all
levels – from individual employees
to the Company as a whole –
to ensure PhosAgro's sustainable
growth in line with its goals.
New-generation employees
are aware of how important personal
and professional growth is as it
is a key to success and self-fulfilment
in the constantly changing world.
For many, high remuneration
is no longer the main incentive,
with self-fulfilment coming
to the forefront if the Company
invests heavily in developing
the skills and competencies which
will be in demand going forward.
This is why we place a strategic
emphasis on supporting our people's
drive for self-improvement. We seek
to create the right environment
for them to fully unlock their
potential.
Organisational
unit
Key responsibilities
THE BOARD OF DIRECTORS
Remuneration
and Human
Resources
Committee
MANAGEMENT
HR and Social
Policy
Department
OPERATIONS
Local human
resources
and social
policy
departments
• Supervision over the introduction and implementation
of the Company’s remuneration policies and various
incentive programmes;
• performance appraisal in respect of executive bodies and key
executives, including the assessment of their performance
against the targets set forth in the incentive programme;
• succession planning for executive bodies and other key
executives
• Strategic development of HR processes;
• development and implementation of process methodology;
• optimisation, automation, and digitalisation of HR processes;
• functional management of HR services in the regions
• Implementation of the Personnel Management Policy;
• recruitment for vacant and key positions;
• organisation and implementation of initiatives
for occupational training and competency building;
• development and management of an incentive framework;
• social support for the Company’s employees in accordance
with the collective bargaining agreement
144
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report GRI 2–30
We negotiate collective
bargaining agreements with trade
unions that address issues
such as working conditions
and compensation for employees
at each of our production sites
(usually for a three-year period,
covering 100% of the employees
of Apatit, its branches
and standalone business units).
Share of employees
covered with collective
bargaining agreements, %
2022
2021
2020
100
100
100
100%
employees covered
with collective
bargaining
agreements
HR management
principles
The reporting year saw a new
version of the UK Modern Slavery
Act Transparency Statement
approved, which discloses
contributions towards the UN
SDGs and the Company's social
projects to combat violations
of human rights. Over the last
three years, over 19,000 employees
received additional training
in human rights and corporate
ethics.
All relations between PhosAgro
and its employees are regulated
by the Labour Code of the Russian
Federation and comply
with the requirement to provide
employees with a timely
notice of material changes
in employment terms, thus
respecting human rights.
PhosAgro's Personnel
Management Policy has
the following key areas:
• organisational change
management system;
• personnel attraction
and recruitment system;
• personnel training
•
and development system;
incentives and rewards
system;
• social benefits system;
• corporate communication
system;
• working hours and leisure;
respect for human rights
•
and non-discrimination.
Non-discrimination policy
and human rights
PhosAgro is committed to respecting
employees' rights as required
by the International Bill of Human
Rights and the ILO Declaration
on Fundamental Principles
Our goal is to keep our working environment free from
discrimination based on nationality, gender, age, faith
or other grounds as required by the applicable laws.
and Rights at Work, including zero
We consider unacceptable
discrimination, not using child or
any restriction of employee rights or
The Code of Ethics
In our operations, we seek
forced labour, respecting their right
freedoms, whether at workplace or
to maintain an impeccable
to exercise freedom of association
in any other job-related environment.
reputation and comply with ethical
and collective bargaining,
business practices. PhosAgro
and creating a safe and favourable
Since 2013, we have conducted
adopted a Code of Ethics in 2014
working environment for both its
annual employee surveys enabling
and updated it in 2021. It applies to all
own employees and the employees
each employee to give feedback
employees and is the Company’s
of its contractors, which are also
on the performance of the Company
primary document that clearly
expected to comply with such
and its management. Throughout
defines our corporate culture,
requirements and regulations.
the history of such surveys, we have
rules and regulations for collective
PhosAgro Group appreciates
or reports of violations of human
business and social relationships,
and encourages diversity among
rights. This clearly indicates that
and interactions with other
its employees. We provide equal
all obligations to PhosAgro’s staff
stakeholders. When agreeing
not received any negative feedback
behaviour within the Company,
opportunities for them to unlock
are respected and met.
their potential and do not tolerate
any restriction of a person's
or a group's natural rights
and freedoms or any conduct
violating privacy of our employees.
Any decisions regarding promotion,
hiring, remuneration, benefits or
compensations are based solely
on the employee’s qualifications,
performance, skills and experience
assessed impartially and fairly.
We expect our employees to treat
their colleagues and everybody
else, including customers, suppliers
and other stakeholders, with due
professionalism, respect and fairness.
and concluding contracts
with external contractors, it
is an imperative for us to cover
arrangements and commitments
related to mutual respect
of human rights and compliance
with the Company's Code of Ethics.
The Code outlines our common
values and underpins our success,
helping us avoid unjustified risks,
maintain long-term business
growth, strengthen our position
in the Russian and foreign markets,
and increase the Company’s
value for shareholders and other
stakeholders.
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147
Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report 88employees
number of disabled
people employed
by PhosAgro in 2022
Inclusive environment
In 2022, the Group employed
88 employees with disabilities
(according to the average
headcount). We believe we must
exercise an individual approach
when hiring people with special
needs, and we are aware of our
responsibility to create an inclusive
environment for them.
The Company honours
all its obligations related
to the employment of the disabled
The Company’s key production
as required by applicable laws.
sites are located in the Murmansk,
In addition, we rely on job quotas
Vologda, Leningrad, and Saratov
in hiring the disabled, support
regions. As a major contributor
and provide an expert opinion
to the local economy and one
at Abilympics, a competition
of the largest employers in these
for the promotion of disabled
regions, PhosAgro has a significant
people’s professional expertise,
positive impact on social
take an active part in job fairs
development and welfare across its
for the disabled, and sign workplace
geography.
lease agreements with other
companies. Going forward we plan
to expand our practices of building
an inclusive space.
In developing our
production and creating
new jobs, we seek
to prioritise local
residents when filling
our vacancies.
> 90%
of on-site employees
are hired locally.
Open communication
channels
GRI 2–25, 2–26
Access to multiple
communication and feedback
channels within the Company
allows our employees
to resolve employment
and other job-related
issues. Some of the formats
are Q&As in corporate
newspapers, information
sessions for the staff
and management, a corporate
portal, a hotline, and official
social media accounts of our
branches.
Any employee or other
stakeholder can use PhosAgro’s
whistle-blower hotline to report
human rights violations or
discrimination of any nature,
or to communicate any other
issues or concerns related
to employer-employee
relationships.
We keep introducing popular
cutting-edge technologies
in corporate communications.
These include personal accounts
for employees, a corporate
mobile app with self-service
options, and a chatbot, along
with new capacities we added
to our corporate portal, online
training platforms, automated
HR management system,
and many more.
Risks and opportunities
The following strategic risks affect
3 Social
our HR management objectives:
4 HR
For more information, see
the Strategic Risks section
on page 70
The Company develops corrective
measures as necessary and unlocks
opportunities to mitigate those risks.
Below you can find more information
20
Infectious diseases
about what we do on this front.
Risk areas specific to HR management
2
Compliance
with human
rights and ethical
standards
Workforce
sufficiency,
competence
and development
Provision
of competitive
incentives and social
support to staff
1
3
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report Recruitment
As part of its comprehensive
The Company works continuously
recruitment approach, PhosAgro
to improve its recruitment processes.
continuously monitors the labour
In 2022, we completed the first
market in Russia to attract skilled
stage of recruitment automation
staff and efficient managers
to ensure faster communication
with work experience at leading
with candidates and customers,
national and global companies,
while also reducing the time it takes
always determined to be one step
to fill vacancies and minimising
ahead of the curve.
the labour inputs along the way.
Our recruitment efforts
We also set up a recruitment centre
are underpinned by a consistent
to enhance the process across all our
career guidance model, which
sites.
prioritises engagement with school
and university students.
If two or more candidates
qualify for a job, we are more
likely to pick the one who
is either:
• a young talented professional
(a programme for attracting,
mentoring and upskilling high-
potential university graduates);
• an employee included in our
talent pool (a programme
for those looking to develop
professional and managerial
competencies for career
growth).
2
1
3
PhosAgro Schools
The PhosAgro Schools projects
focuses on cooperation with schools
across our footprint. By creating
the right environment at schools,
we help guide graduates in their
career choices. In 2022, we engaged
with six schools across our
geography.
Collaboration with secondary
vocational institutions
As part of our collaboration
with secondary vocational
institutions, we seek to create
a pipeline of skilled employees
with relevant competencies who
are competitive in the labour market,
acquainted with allied professions,
and have what it takes to pursue
career opportunities for their further
employment with the Company.
Cooperation with universities
Cooperation with universities
serves to fill the most relevant
jobs by attracting and retaining
talented graduates. Today,
the Company actively collaborates
with 24 universities that offer
courses relevant to its core
activities.
21.5%
of women among managers
of all levels
16%
of women in the Company’s
Top 40 Talent Pool
34%
of women
in the Company’s total
headcount
Share of women taking part
in corporate programmes, %
High-Potential Graduates
36
38
2022
2021
Corporate training initiatives
33
2022
30
2021
Gender equality
To enhance women’s social security
in accordance with the applicable
laws, the Company:
• does not use female labour
for manual lifting or carrying
weights exceeding maximum
allowable limits;
•
releases pregnant women from
their job duties and transfers
them, subject to their medical
reports, from production sites
to lighter-duty positions;
• provides women, at their request,
with a parental leave until
the child reaches the age of three;
• prohibits business trips, overtime
or night work, work on weekends
and public holidays for pregnant
women, except when there
are a written consent and no
contraindications;
• safeguards employment
of pregnant women, with their
employment contracts
terminated only in the event
of liquidation of the facility,
as well as that of women having
children up to three years of age
and single mothers having
children up to 18 years of age.
Participation
of women
in internal thematic events
• Superfinals of the Young
Manager – 2022
competition – 9 men,
3 women.
• Superfinals of the Mentor
of the Year – 2022
corporate contest –
10 men, 3 women.
150
151
KEY AREASCompany profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report 2022 metrics and highlights
GRI 2–7, SASB EM-MM-000.B
Breakdown of employees by gender, region, types of employment and employment
contracts1, number of employees
Region
Permanent employees
Temporary employees
Number of employees
(headcount)2
Part-time employees
Full-time employees
Average headcount1 of PhosAgro
Group, people
2020
2021
2022
2020
2021
2022
2020
2021
2022
2020
2021
2022
2020
2021
Men
Women
Murmansk
region, total
Men
Women
Vologda region,
total
Men
Women
Saratov region,
total
Men
Women
Leningrad
region, total
Men
Women
Moscow, total
Men
Women
Other, total
Men
Women
Total
5,585
2,107
7,692
3,086
2,404
5,490
1,244
619
1,863
728
480
1,208
218
177
395
570
197
767
11,431
5,984
17,415
5,623
2,161
7,784
3,252
2,516
5,768
1,282
649
1,931
830
540
1,370
209
164
373
571
215
786
6,238
2,321
8,559
3,721
2,755
6,476
1,594
740
2,334
1, 100
637
1,737
194
147
341
557
249
806
478
131
609
70
216
286
30
50
80
43
46
89
4
7
11
8
10
18
11,767
6,245
13,404
6,849
633
460
18,012
20,253
1,093
1 Due to expansion of the disclosure scope, the 2020 and 2021
data for the Vologda region, Leningrad region and other regions
was recalculated to ensure the comparability of information.
2 Headcount as at the end of the reporting period. The headcount
includes employees with an employment contract.
485
142
627
70
221
291
50
61
111
93
66
159
2
2
4
10
10
20
710
502
1,212
529
168
697
105
234
339
63
85
148
117
72
189
2
3
5
7
7
14
823
569
6,063
2,238
8,301
3,156
2,620
5,776
1,274
669
1,943
772
525
1,297
222
184
406
578
207
785
6,108
2,303
8,411
3,322
2,737
6,059
1,332
710
2,042
923
606
1,529
211
166
377
581
225
806
12,065
6,443
12,477
6,747
1,392
18,508
19,224
6,767
2,489
9,256
3,826
2,989
6,815
1,657
825
2,482
1,217
709
1,926
196
150
346
564
256
820
14,227
7,418
21,645
4
9
13
1
4
5
1
8
9
1
0
1
1
0
1
3
9
12
11
30
41
1
10
11
1
3
4
2
7
9
0
0
0
0
1
1
3
10
13
7
31
38
5
13
18
1
12
13
3
11
14
2
1
3
0
0
0
3
10
13
14
47
61
6,059
2,229
8,288
3,155
2,616
5,771
1,273
661
1,934
771
525
1,296
221
184
405
575
198
773
6,107
2,293
8,400
3,321
2,734
6,055
1,330
703
2,033
923
606
1,529
211
165
376
578
215
793
2022
6,762
2,476
9,238
3,825
2,977
6,802
1,654
814
2,468
1,215
708
1,923
196
150
346
561
246
807
12,054
6,413
18,467
12,470
6,716
19,186
14,213
7,371
21,584
1 Calculated using the period average methodology by adding up headcounts
for each calendar day of any given period and dividing the sum of these
headcounts by the number of calendar days in the period.
2 The ratio of mineral fertilizers, phosphate rock, nepheline concentrate
and syenite alkali aluminium concentrate produced to the average headcount
of Apatit, including its branches and standalone business units.
3 Due to expansion of the disclosure scope, the 2020 and 2021 data was
recalculated to ensure the comparability of information. For the key personnel
turnover indicators by age, gender and region, see page 396.
2022
2021
2020
19,846.1
18,320.9
17,891.0
Productivity2, t per person
2022
2021
2020
1,763
1,874
1,889
The decrease in productivity due to the growth of
the Company's headcount as a result of bringing
equipment repair and maintenance functions
back in-house, with a view to improving the
quality and efficiency of the work.
Key personnel turnover
indicators3, people
GRI 401–1
2022
2021
2020
5,747
3,384
4,033
3,285
3,313
2,954
9.8%
11.6%
8.3%
Total joiners
Total leavers
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report GRI 405–1
Personnel breakdown, %
Age
Average headcount, %
2020
2021
2022
Men
Women
Men
Women
Men
Women
EMPLOYEES BY GENDER AND AGE
Under 30 years
30–50 years
Above 50 years
EMPLOYEES BY CATEGORY
Blue-collar employees
White-collar
employees
Managers
EMPLOYEES BY EDUCATION
Higher
Basic vocational
General
Secondary vocational
10.5
45.6
9.1
43.1
11.6
10.5
25.0
0.17
10.4
29.6
5.6
23.7
5.6
14.8
17.1
3.0
20.0
0.04
3.3
11.5
10.1
45.5
9.3
42.3
12.0
10.6
25.3
16.59
10.5
12.5
5.5
23.9
5.7
14.9
17.2
3.0
20.3
5.11
3.6
6.1
10.9
45.5
9.3
42.7
12.6
10.5
25.4
16.66
10.2
13.5
5.5
23.2
5.6
14.5
16.9
2.9
19.7
5.02
3.6
6.0
Annual employee survey
and social benefits offered),
with 87% of employees appraising
For ten years now, the Company has
the management’s decisions.
been conducting annual Growth
Area employee surveys which
These results reflect positive
serve as a basis for subsequent
changes in the Company
remedial action plans designed
and the effectiveness of corrective
to address employee concerns.
actions based on the outcomes
In 2022, the Company collected
of the annual Growth Area surveys.
13,773 completed survey
We plan to continue surveying our
questionnaires (with the headcount
employees on an annual basis going
standing at approximately
forward, while also arranging pulse
19,800 employees). The employee
survey on dedicated subjects more
satisfaction and loyalty index
frequently.
came in at 69% (up 12 p.p. y-o-
y). This is a very good result
The aggregate satisfaction
for a chemical and mining company
and loyalty index demonstrated
69%
+12 p.p. to 2021
aggregate employee
satisfaction and loyalty
index
with a complex organisational
significant growth to reach its
structure. The engagement level
all time high (since 2013 when
Employee satisfaction
and loyalty index, %
came in at 70% (up 11 p.p. y-o-y
the Company’s first started
due to the high assessment
measuring these metrics).
of the Company’s stability
2025
target
2022
2021
2020
65
69
57
63
Training and evaluation
PhosAgro’s management
seeks to attract highly skilled
professionals and young talents,
with heavy emphasis placed
on providing professional
development opportunities,
promoting professional growth
and encouraging production
Training
expenses, RUB ‘000
Training expenses per
employee, RUB ‘000
2022
2021
2020
271,872
235,216
199,684
2022
2021
2020
21.0
13.6
11.8
initiatives and in-house expertise.
and enactment of management
initiatives for improving process
We offer a wide range of training
efficiency.
formats for our people, including
Our corporate training
framework relies
on the following principles:
in-person training, on-the-job
In 2022, we continued to enhance
alignment
training, internships and online
the expertise of professionals
education. The COVID-19
responsible for the assessment
pandemic came as a challenge
of candidates and employees as part
from the perspective of ensuring
of recruitment and development
employee training, development
processes. We actively use
and assessment continuity, but also
psychometric assessment tools
as a growth driver. The use of remote
by leveraging the potential of new
training capabilities became possible
automated solutions and services
due to the implementation of new
introduced in 2021. These tools
automated solutions and services
are applied in full compliance
which facilitate qualitative employee
with the regulations on their use
assessment, prompt identification
approved by the Company.
of personnel management risks,
In 2022, the number of employees
who completed various types
of training programmes reached
11.551employees
+16.4% to 2021
The average annual number
of training hours per employee
exceeded
99.8 hours
+4.9% to 2021
with the Company’s
strategy;
assessing
and prioritising actual
training needs of various
staff categories to build
appropriate processes;
planning, coordination,
quality and efficiency
audit;
introducing
the most advanced
and efficient training
and development
methods and tools
from an economic
and methodological
perspective;
developing new formats;
using an individual
approach to young
talent;
proactively identifying
and developing new
leaders to succeed
current ones.
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report
GRI 404–1
Average annual training, hours per employee
Item
Average annual training hours per employee
BREAKDOWN BY GENDER
Women
Men
BREAKDOWN BY EMPLOYEE CATEGORY
Managers
White-collar employees
Blue-collar employees
Additional information on employee training
Item
Number of employees trained
Average annual hours of mandatory training per
employee
Average annual hours of optional training per employee
Total investments in training, RUB '000
Annual training investments per employee, RUB '000
Women
Men
2020
2021
2022
Change 2022
to 2021, %
79.5
56.2
84.4
69.44
39.59
92.10
2020
7,276
n/a
n/a
199,684
11.8
10.9
12.3
95.1
75.0
96.6
83.18
61.71
103.97
2021
9,926
81.6
13.6
235,216
13.6
12.9
14.0
99.8
86.5
107.1
113.0
85.4
104.0
2022
11,551
85.1
14.7
271,872
21.0
20.4
21.3
4.9
15.4
10.8
35.8
38.3
0.1
Change 2022
to 2021, %
16.4
4.34
8.20
15.6
53.8
57.9
52.1
In 2022, we continued to improve
our corporate training programme
by rolling out remote educational
on occupational health and safety,
and repairs of rotating equipment.
We also provide our employees
and development tools introduced
with opportunities for self-
during the pandemic, leveraging
development by giving them
digital technologies and creating
access to our corporate electronic
mixed training formats.
library and online training platform.
The Company promotes a remote
training system, creates online
courses and upgrades technical
In 2022, the Company partnered
with Eduson, an educational
platform, enabling its employees
capabilities by introducing computer
to complete over 17,000 courses
simulators, and implementing VR
and more than 2,600 tests.
technologies to support the learning
process. The remote training system
counts over 250 courses, while
the VR library offers 12 programmes
PhosAgro’s staff can also read
and download business, professional
and fiction books from Alpina’s
online library.
Our remote training
system counts over
250 courses
Our employees
completed over
17 thousand
Eduson сourses
GRI 404–2
The Company seeks to promote
motivation and delegation
The main objective of training
the greatest possible number
of powers, conflict settlement,
is to prepare the next generation
of internal candidates from the talent
project management, effective
of top-notch managers.
pool to PhosAgro’s executive roles.
communications, etc.).
Our programmes aim to identify
We are creating an environment
employees who have proved their
In 2021, the Company started to use
conducive to an active experience
efficiency in current positions
mentoring as a vehicle for promoting
and knowledge sharing
and have what it takes to expand
participants of the Top 40 Talent
by promoting the culture of coaching
the scope of responsibilities and move
Pool programme. Senior managers
and mentorship. In 2022, a number
up to executive roles. The Company
(mentors) share their experience
of Top 40 Talent Pool participants
offers a wide range of training
and knowledge with the participants
took on the role of mentors
and development opportunities
in an attempt to build a next-
themselves to coach middle and line
to help such employees achieve these
level management culture, while
managers from the talent pool.
goals.
talent pool members get a chance
to learn the secrets of successful
Both talent pool development
The talent pool programmes
management from executives.
programmes and employee
include a variety of training options
training initiatives seek to develop
for talent pool members helping
The Top 40 Talent Pool programme
competencies required for progress
them to develop managerial
offers opportunities to develop
against the Company’s goals
and professional competencies,
managerial competencies, pursue
and strategic projects and preventing
and to boost personal and business
individual training at leading business
personnel shortages. In 2023, we
skills (analysis and decision-making,
schools, and benefit from mentoring
will continue our efforts to expand
leadership, workflow management,
support and personalised assistance.
the talent pool.
Rules of effective management
One of the Company's focus areas
in training and development
is to improve management
culture.
In 2022, PhosAgro set
up the Rules of Effective
Management project to train
and support its managers.
The purpose of the initiative
is to strengthen management
culture while also establishing
and applying uniform rules
for the supervisor-subordinate
relationship to make staff
interaction more effective.
The Rules of Effective
Management help
the Company's employees
in their managerial activities,
laying down the fundamental
principles of building effective
communication between
a supervisor and a subordinate,
which in turn bolsters employee
loyalty and engagement.
Status
The project was successfully
completed in the pilot units
(Ammonia-1, Ammonia-2
and Ammonia-3) and will be rolled
out across other units of Apatit.
In 2022, four management
practices were introduced
in the pilot units:
• Stand-Up/Shift Meeting,
• Setting Targets,
• Feedback,
• Performance Discussion.
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157
TALENT POOL PROGRAMMESCompany profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report
In addition to the earlier
developed capabilities, in 2022
the Company unveiled:
A tool to create online
courses for nine job-specific
competencies, including
guidelines on developing
the teaching package,
a template of terms
of reference for creating
a programme, a template
course presentation, didactic
materials for teaching
in-house developers,
and recommendations
on incentives for in-house
developers;
100% of content required for
distance learning theoretical
courses on job-specific
competencies covering four
pilot professions.
Virtual teaching
package
In 2022, we kept rolling out
a virtual teaching package
and a distance learning
system to automate training
and development processes.
This was needed because of:
•
transition to remote work;
• demand for a specific range
of professions;
• a large number
of employees to be trained
in various jobs;
• employees’ aspirations
for self-learning and keeping
their knowledge up to date.
The virtual teaching package
includes:
1. A matrix of 24 corporate,
job-agnostic and job-
specific competencies;
2. Teaching packages for 15
corporate and job-agnostic
competencies;
3. Ten distance learning
courses for corporate
and job-agnostic
competencies.
Target by 2026
is to achieve
100%
coverage of most
in-demand professions
by distance learning
theoretical courses
Furthermore, during 2022
a personal account developed
for the distance learning system
was available for pilot running
at all sites. The personal account
features:
• mandatory multi-sectioned
courses;
• courses to develop additional
competencies;
• process flowcharts;
• student atlases, etc.
Lessons learned from
the operation of the personal
account will be used to automate
HR management processes.
Going forward, we plan to roll
out the project and achieve 100%
coverage of the 59 most popular
professions by theoretical courses
in the distance learning format
by 2026.
Mentoring
The programme’s key
objectives are to:
Create a system
to accumulate
and transfer expertise
and experience acquired
in the Company to help
new hires develop their
skills
Identify, evaluate
and develop the initial
potential of employees
and leverage their
professional experience
in line with the Company’s
requirements
Improve labour
productivity
Reduce workplace
injuries
Improve professional
skills of employees
Reduce the number
of errors, defects
and other failures at work
In 2022,
13 mentors
took part in the Mentor
of the Year super final
PhosAgro Group is committed
communication support
to facilitating the successful
and methodological assistance
onboarding of new employees.
to mentors. We have developed
In 2022, the Company continued its
check lists and guidelines
Mentoring programme: new hires
for mentors, and post information
are overseen by mentors – seasoned
about mentors on stands, hold
employees who teach professional
meetings with them in business
skills and provide feedback, support,
units, and they are featured
and assistance in onboarding.
in the corporate media.
To organise the mentoring
On top of that, PhosAgro
process, we identified a pool
holds the annual Mentor
of mentors (over 1,500 people so
of the Year corporate contest
far). The selection criteria include
set to develop mentoring,
qualifications and professional
make it more prestigious,
experience; perception by the team;
raise employee awareness,
organisational and training skills;
and encourage and recognise
and motivation to share experience
mentors' personal contribution
and knowledge.
to the development of new hires.
In 2022, 13 mentors from different
In the course of the programme,
assets of the Company took part
we developed and approved
in the Mentor of the Year super
the mentor’s competence model.
final.
Potential mentors have their
competences assessed and take
In the coming year, we
part in corporate development
will continue to improve
programmes to learn more about
the mentoring programme
personnel development and training
to raise the quality of personnel
approaches.
training, reduce the turnover
rate among new employees,
To promote the mentoring
and boost employee loyalty
programme, the Company provides
and engagement.
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159
Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report More than
100 graduates
of 2022 have been admitted
to higher educational institutions,
with St Petersburg Mining University
enjoying the highest popularity
among them (25 students).
Since 2015, over 900 graduates
of PhosAgro Classes have been
enrolled in higher educational
institutions, with technical careers
gaining more traction among them
every year.
In September 2022, 125 new
students started their 10th grade
programme at PhosAgro Classes,
marking the tenth admission
round since the project launch.
For more information
on the educational
programme, please see
the Contributing to Local
Communities section
on page 234
To assess HR management and make effective decisions in this area,
we continuously monitor employee performance metrics and analyse the structure
of staff costs, labour productivity, along with the performance of social, training,
and other programmes.
Percentage of employees receiving regular performance and career development reviews, %
GRI 404–3
Category
Managers
White-collar workers
Blue-collar workers
Total by gender
2020
2021
2022
Men
Women
1.02
0.63
0.37
2.03
0.18
0.61
0.05
0.84
Men
1.49
0.93
2.06
4.48
Women
Men
Women
0.20
0.66
1.00
1.87
1.63
0.96
5.11
7.70
0.19
0.69
0.76
1.63
Personnel evaluated in 2022, people
Volkhov branch
Apatit (Cherepovets)
Kirovsk branch
Balakovo branch
37
4
20
3
51
17
36
12
28
46
31
1
119
5
65
34
421
19
20
3
11
6
160
62
Men
Women
Men
Women
Men
Women
132
154
663
262
Total
212
24
124
89
663
99
Managers
White-collar
workers
Blue-collar
workers
PhosAgro Classes
PhosAgro Schools
We continue to implement
the PhosAgro Schools career
guidance project.
Since 2013, the Company
has invested over
RUB 800 mln
in it, including RUB 600 mln spent
on renovations and equipment.
In 2022, funding for the project
increased
2.5 fold
compared to 2021 (reaching
more than RUB 260 mln),
the funds were used, among other
things, to further develop schools
in Kirovsk and Apatity (Murmansk
region). PhosAgro Schools
not only develop educational
and research auditoria and labs,
but also implement career
guidance projects to introduce
the Company and its corporate
culture to students, teachers,
and parents.
Since 2019, 83 participants
of the PhosAgro Class programme
who graduated from dedicated
universities have been hired
by PhosAgro units, including 30
in 2022, to take engineering
positions. Some 34 graduates
of PhosAgro Classes
are expected to be employed
by the Company in 2023,
with over 100 more by 2025.
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INVESTING IN PHOSAGRO GROUP'S FUTURE TALENTPERSONNEL ASSESSMENTCompany profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report In 2022,
75 students
were admitted
to the Cherepovets
College of Chemistry
and Technology
Collaboration
with technical colleges
Our collaboration with technical
colleges covers:
PhosAgro has been implementing
a school–college/university–facility
career guidance model to train
highly skilled workers since 2013.
The Company has been consistently
partnering with technical colleges
across its footprint, including:
• setting up testing grounds
and labs for students to acquire
hands-on experience using real
equipment;
running internship programmes
at PhosAgro’s facilities
with mentors;
•
• Kirovsk branch of Murmansk
Arctic State University
(Murmansk region);
• Cherepovets College
of Chemistry and Technology.
In 2022,
around 200 students
were trained for and received
some of the key blue-collar jobs
at the Company.
• supporting undergraduate
and graduate thesis research;
• organising and engaging
students in sports, educational,
and research initiatives,
competitions, Olympiads.
PhosAgro also supports a Training
Centre at the Cherepovets College
of Chemistry and Technology
that offers express programmes
in chemistry and associated fields
to nurture talent for most in-demand
jobs.
In 2022, the college also
took part in Professionalism,
a federal project set to “reload”
vocational education. PhosAgro
is providing financial support
for an internship-focused training
programme for the professions:
Inorganic Production Operator
and Installation, Maintenance,
and Operation of Industrial
Equipment.
In 2022, as part of cooperation
with PhosAgro under a federal
programme, the Cherepovets
College of Chemistry
and Technology was the only
educational institution
of the chemical industry cluster
to make it the Top 10 clusters
of the Professionalism project,
demonstrating a high level
of performance.
Collaboration
with universities
As part of the school–college/
university–facility educational
model, the Company has
built a system of cooperation
with universities to provide high-
quality and affordable education
and support research.
As part of its collaboration
with universities, PhosAgro:
• sponsors advanced training
for graduates of PhosAgro
Classes in the fields relevant
to PhosAgro (subject to their
commitment to future
employment at the Company);
• offers scholarships to the most
•
talented students (based
on exam results);
invites university students
to take a tour of one
of the Company's facilities;
• offers students a job in one
of the Company’s popular
specialisations after they
graduate;
• allocates money for repair
and equipment of chemistry
laboratories at dedicated
universities.
We have cooperation agreements
and roadmaps with many
universities.
High-Potential Graduates
For the recent 10 years, the Company
has been running the High-Potential
Graduates programme based
on its cooperation with universities.
The initiative fosters contact
with graduates wishing to work
at PhosAgro.
The High-Potential Graduates
corporate programme
offers a competitive salary,
as well as relocation and housing
support. Each new hire is supervised
by an experienced mentor.
Number of people recruited
to the High-Potential
Graduates programme
2022
2021
2020
80
80
71
In 2022,
80
young
professionals
were recruited by the Group's
entities.
This brings the total number
of graduates who have joined
the Company since the launch
of the university engagement
programme to
554 people.
~ 400
of these employees are still
with PhosAgro today,
pursuing careers in such
areas as mineralogy, geology,
hydraulic engineering, chemistry,
thermal energy and electricity
generation, rail transport, open-
pit and underground mining,
and mine surveying.
Of the programme participants
still employed at PhosAgro
as at December 2022,
> 37%
had received promotions and
had been included in our
talent pool, and many of them
had successfully completed
the projects assigned to them
upon recruitment.
In 2023, we plan to “reload”
and transform the High-
Potential Graduates programme
into a corporate PhosAgro-START
programme. The programme’s
main objectives will be to build
a talent pool for key positions
within the Company
and to identify career paths
for young talented professionals
to prepare future executives
and set up a pool of internal
experts.
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report Incentives and rewards
Our robust system of rewards
Due to the nature of our operations,
Our regulations on labour relations,
is aligned with the Company’s
there are generally more male
remuneration and social benefits
performance and motivates
employees than female ones.
cover all employees and underpin
all employees to improve their
At PhosAgro, we believe that
the principle of equitable
performance in order to achieve
professionalism, sustainably strong
remuneration and rewards.
our business goals. The purpose
performance and adherence
We comply with the principle
of the incentives and rewards
to corporate values are prerequisites
by implementing a remuneration
system is to incentivise staff in order
for and the only guarantee of career
framework that offers equal pay
to increase productivity and deliver
growth.
strong operating results, as well as to
retain qualified talent.
to employees in equivalent positions,
regardless of their gender.
GRI 405–2
Correlation of the standard entry-level wage and remuneration of women and men
Region
Vologda region
Saratov region
Leningrad region
Moscow
Murmansk region
Other
Total:
GRI 202–1
Difference in remuneration of men and women
2020
1.56
1.43
1.58
3.90
1.52
0.91
1.62
2021
1.59
1.41
1.69
3.54
1.52
0.86
1.61
2022
1.64
1.49
1.70
4.90
1.54
0.89
1.71
Ratios of standard entry-level wage by gender compared to local minimum wage1
Region
2020
2021
2022
Vologda region
Leningrad region
Murmansk region
Saratov region
Moscow
Men
Women
Men
Women
Men
Women
1.00
1.28
1.00
1.00
3.32
1.16
1.35
1.00
1.00
1.53
1.18
1.33
1.00
1.06
2.30
1.18
1.17
1.00
1.04
1.32
1.21
1.20
1.00
1.02
1.98
1.21
1.24
1.00
1.05
1.30
1 Significant regions of operation are those with the Company's main
production facilities, maximum headcount, and governance structures.
Our system ensures:
Implementation of
incentive programmes
using a transparent
system of KPIs to calculate
managerial rewards
Decent pay
Implementation
of incentive programmes
to motivate blue-collar
employees to deliver against
their targets
Availability
of financial and non-
financial rewards
Availability
of benefits for certain
employee categories
Adherence
to global best
practices on benefit
packages
Employee
coverage
by social programmes
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report GRI 202–2
Proportion of senior management1 hired
from the local community2 in significant
regions of operations, %
Average
61
61
62
47
22
92
80
36
48
22
92
63
44
52
25
91
64
40
2022
2021
2020
Vologda region
Leningrad region
Moscow
Murmansk region
Saratov region
•
In 2022, we implemented
major projects worth over
RUB 300 mln
to improve working
conditions at our facilities
Social benefits
and employee guarantees
GRI 401–2
We provide comprehensive
social support to our employees,
and every year we increase funding
for voluntary health insurance,
financial assistance and corporate
housing programmes.
Collective Bargaining Agreements
provide for a range of relevant
benefits as part of the government
programme to support
families, mothers, and children.
Recreational summer health
resorts and specialised excursions
are organised for employees' children
on an annual basis. All children
of employees between the ages of 0
and 14 receive New Year presents.
PhosAgro provides employees
with vouchers to local and southern
health resorts and corporate health
resorts. Employees and their family
members, as well as veterans, have
access to corporate health resorts
at a reduced price.
In the reporting period, wages
Average monthly pay, RUB
and salaries grew for all categories
of staff as a result of the 3–4%
wage indexation on 1 September
2021 and 12% wage indexation
on 1 February 2022, along
with targeted pay reviews
and incentive programmes.
2022
2021
2020
2019
132,110
111,288
92,442
83,770
Wage indexation
on 1 February
2022
12%
A range of social support measures
Employees can also seek
In 2022, we implemented major
and leisure activities are available
psychological, financial, and legal
projects worth over RUB 300 mln
to the Company’s veterans,
assistance and receive advice
to improve working conditions
and a corporate retirement plan
on an active lifestyle, including
at our facilities. For example, repairs
is in place.
the use of telemedicine. Healthy
were carried out on lounge, shower
eating programmes are being
and meeting rooms, staircases,
introduced and a nutritionist
and corridors in administrative
is available to employees.
and production facilities.
1 Senior management include managers at level N, N-1, N-2 (CEO, heads of functions, director for production, chief engineer
2
of a company (branch), director of a subsidiary and affiliate, adviser to the CEO). The governance levels of managerial positions
are determined by an order.
In accordance with the generally accepted concept, which describes a person or a group of persons living in a certain territory
regardless of ethnic and cultural composition, local community means employees whose region (area) of registration is the same
as the region of the facility's location.
Social investment, RUB mln
Programme
Financial aid to employees
Recreation, rehabilitation, health resort treatment,
and VHI programme
Improvement of working conditions
Corporate housing programme
Other social benefits and guarantees
Corporate and cultural events
Support to the trade union (special purpose funding
and bonuses)
2020
2021
2022
Change
2022 to 2021,%
48.26
225.93
85.599
67.51
84.64
72.34
151.94
64.7
359.52
302.12
76.46
227.71
134.22
188.55
66.3
506.21
390.128
88.47
227.14
186.44
233.13
2.5
40.8
29.1
15.7
–0.3
38.9
23.6
25.5
166
167
Total
736.22
1,353.28
1,697.82
Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report Industrial
safety
AREA, STRATEGIC GOALS AND METRICS
KEY PROJECTS AND HIGHLIGHTS OF 2022
WORK-RELATED INJURIES
Target 3.4
Target 8.8
•
•
•
fostering a safety culture and adhering to the highest
occupational health and safety standards
reducing workplace injuries
by 10% annually
zero fatalities, and reducing the number of incidents
by 10% annually
TRANSPORT SAFETY
Target 3.4
•
reducing risks of traffic accidents
OCCUPATIONAL DISEASES
Target 3.4
• paying special attention to disease prevention and health
improvement among the employees of all production sites;
• providing employees with access to high-quality affordable
healthcare
EMPLOYEE TRAINING
Target 4.4
Target 8.8
improving safety competencies
•
• keeping employees motivated to stay safe and protect others
Total injuries
down 51%
– from 41 to 20
Severe injuries
down 67%
– from 3 to 1
– from 37 to 18
Minor injuries
down 51%
0 incidents
0 fires
0 accidents
0 traffic accidents with injuries or major
damage
0 fatalities caused by occupational
diseases
Occupational disease record
down 50%
from 30 to 15
10.8 thousand
Company employees passed health
and safety training and knowledge
checks, including an ad-hoc one
around 80%
of the total headcount1
1 Apatit, including its branches and standalone
business units.
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report
Strategy
Management approach
All employees of PhosAgro
to implement our Health and Safety
practices. We apply continuous
Group and its contractors need
Strategy, which defines key focus
efforts to identify and reduce health
to go back from work to their
areas and target initiatives to reduce
and safety threats to PhosAgro
loved ones in perfect health. This
the risks associated with various
Group employees, contractors
is the underlying principle of all
operations.
and visitors to the Company’s sites.
our efforts to ensure safe, healthy
and comfortable workplace
PhosAgro Group is consistently
The Company’s relevant goals
conditions.
improving its safety culture,
and objectives, both strategic
employee responsibility
and day-to-day, are based on huge
Our Strategy to 2025 focuses
and awareness, hazard identification
volumes of data derived from
on fostering a safety culture
procedures and danger prevention
internal and external audits,
GRI 403-1, 3-3
Health and safety management system
We pay special attention to making
our health and safety system
compliant with applicable laws
and the highest international
standards.
To this end, we have
introduced a multi-tier health
and safety management system
involving managers of all levels.
Organisational unit
Key responsibilities
BOARD OF DIRECTORS
Strategy
and Sustainable
Development
Committee
MANAGEMENT
• Sets strategic priorities and develops relevant policy
• Reviews executive management's health and safety
reporting
Executive bodies
• Define and oversee the health and safety policy
• Review all on-site incidents involving people
and machinery on a weekly basis
and adhering to the highest
measures by putting managers
inspections, incident investigations,
In 2008, the Company introduced
OHS Department
• Supervises OHS management functions across
occupational health and safety
at all levels in charge and studying
employee recommendations
standards. In 2022, we continued
and applying best health and safety
and feedback.
an integrated health and safety
management system in line
with BS OHSAS 18001. In 2021, Apatit’s
Cherepovets site was certified
and in 2022 successfully audited
for compliance with ISO 45001:2018.
the Group’s companies to implement OHS policies
and strategies
• Collects data and prepares OHS reports for the Strategy
and Sustainable Development Committee
• Cooperates with external consultants to implement
the best practices of OHS management
• Conducts audits and inspections at the Company’s sites
• Oversee OHS policies and strategies at respective
production sites
• Develop and implement effective response measures
following internal and external audits and accident
investigations
• Draft and improve, as part of the committees' activity,
programmes to join efforts of the employer, employees
and trade unions in ensuring health and safety
OPERATIONS
Heads of production
sites
Local OHS
Committees
OPERATIONAL OHS STAFF
Local OHS
management
functions
• Monitor the site’s compliance with OHS regulations
and corporate standards
• Develop targeted programmes, conduct training
and stage initiatives
• Interact with relevant regulatory authorities on behalf
of the site and facilitate inspections
• Conduct internal inspections and audits and present
analytical reports to the local management
170
171
Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report GRI 403-3
GRI 403-4
Occupational health functions play
For better OHS communication
a key role in ensuring safety at our
with employees, we have adopted
Local health and safety
committees
facilities.
the Regulations on the OHS
progress. The latter can also address
As part of these workstreams health
their questions and proposals
and safety committees consider
directly to the management
the following topics:
and the health and safety function.
•
“Golden Rules” of OHS;
Meeting agendas comprise
nine workstreams
Communication System. Pursuant
Since 2014, health and safety
All resolutions are documented
• Safety Culture Transformation
Accident/incident
Their main objectives are:
to the Regulations, the OHS
committees have been functioning
in minutes of the meetings. In 2022,
Project;
investigation
•
taking steps to ensure workers’
communication system is divided
at the Group’s companies. They
compliance with health and safety
into internal and external
are both an integral part of our OHS
health and safety committees
held 35 meetings and adopted
• OHS leadership;
• OHS motivation;
Occupational health
requirements;
communications, and provides
management system and a form
560 resolutions.
• effective OHS communications;
• monitoring workers’ compliance
for a feedback procedure:
of employee participation in it.
Workers are represented
• contractors' safety;
Industrial safety
with OHS laws and regulations,
•
regular OHS meetings at business
In their work, these committees
at committee meetings by heads
• PPE effectiveness;
the Collective Bargaining
units and enterprises;
rely on the principles of social
or representatives of local unions.
•
trade union report.
Road traffic safety
Agreement, OHS agreement
• OHS meetings at production sites,
partnership. As part of their activities,
and other internal regulations;
departments and facilities;
health and safety committees draft
• preventing workplace injuries,
• union and union committee
and improve programmes to join
occupational diseases and work-
meetings (for feedback from
efforts of the employer, employees
related illnesses and improving
OHS officers);
and trade unions in ensuring health
workplace conditions;
• corporate e-mail;
and safety.
• advising workers on, and raising
• corporate periodicals;
In 2022, we revised our regulations
their awareness about,
•
local health and safety
on health and safety committees,
occupational health and safety;
committees;
with meetings to be held
• studying and disseminating best
• employee loyalty surveys;
on a monthly basis according
OHS practices and promoting
• OHS questionnaires.
to the new version. At meetings,
occupational health.
Internal OHS communication
information exchange and reporting
Apart from applicable laws, these
is achieved through:
are multilateral, as both health
activities are regulated by:
• health and safety SOPs
•
local health and safety
and safety functions and local unit
committees;
heads report on health and safety
at the facility (shop) level;
• management meetings
• production SOPs;
and conferences to discuss
• worker health and safety
the health and safety performance
instructions;
• corporate standards;
• process regulations;
of our enterprises; regular
OHS meetings in departments,
on production sites
• accident management action
and at facilities;
plans, etc.
• health and safety bulletin boards,
posters and other visuals;
• corporate television (screens),
intranet site, e-mail;
• corporate periodicals;
• education by OHS officers
(including one-on-one meetings,
training, mentoring, supervision,
etc.).
35
held in 2022
health and safety
committee
meetings
560 resolutions
adopted
Safety assessments
and audits
Developmentof health
and safety management
Safety projects
(programmes, initiatives)
Education and training
Fire safety
172
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report
Improving contractor safety
practices
Measures to ensure safety
of contractors’ employees
was due to due to an increase
time limits, and gaps that can
The following strategic risks affect
measures as necessary and unlocks
Risks and opportunities
GRI 403-2
The Group develops corrective
OHS-specific risks are:
in the number of audits conducted
be eliminated at no additional cost
our OHS objectives:
temporarily working at our
as part of the continuous state
are addressed immediately.
production and other facilities
supervision of hazardous production
are an integral component of our
facilities of hazard class 1, with Apatit
The Company has a procedure
OHS strategy. They include
having 17 such facilities.
for drafting, submitting
the selection of contractors based
and reviewing reports on internal
on a health and safety qualification
We also run internal audits
and external OHS audits.
assessment, briefings, and training
conducted by our OHS departments
The results of all internal
to contractor employees, along
and directorate, managers
and external assessments
with relevant compliance audits.
and employees exercising production
and audits are recorded
ESG assessment is a major factor
H&S control.
in the Safety and Instructions
(Shift Assignments) management
in contractor selection.
After external and internal audits,
systems for further analysis, gap
4
HR risk;
6
health and safety risk;
20
infectious disease risk.
For more information,
see the Strategic Risks section
on page 70
For more information, see
the Supply Chain section
on page 130
Internal and external
industrial safety audits
In line with statutory
requirements, PhosAgro Group
is subject to scheduled external
audits by Russian authorities,
including the Federal Service
for the Supervision of Environment,
Technology and Nuclear
Management (Rostekhnadzor), State
Labour Inspectorate, Federal Service
for Surveillance on Consumer Rights
Protection and Human Wellbeing
(Rospotrebnadzor), the Ministry
for Civil Defence, Emergencies
and Elimination of Consequences
of Natural Disasters (EMERCOM), etc.
We may also engage consulting
companies, or international
associations of which the Group
is a member to conduct additional
external audits of compliance
with international standards,
or as part of a special assessment
of workplace conditions.
In 2022, state supervisory
authorities carried out 189 audits
at Apatit and its managed
companies. The higher number
of audits (up from 132 in 2021)
the Company issues orders
identification and elimination
and instructions outlining remedial
monitoring. We also submit all
action plans and establishing
relevant reports to state supervisory
the deadlines and responsible
bodies and statistical agencies
persons. Identified breaches
in accordance with the Russian
are remedied within the agreed
laws.
189
safety
audits
conducted by state
supervisory authorities
at Apatit in 2022
opportunities to mitigate those
risks. Below you can find more
information about what we do
on this front.
Occupational risks
of the Group’s business
units, including
occupational disease
risks
1
2
Safety culture risks,
including OHS
communications
and safety incentives
Risks of OHS-related
regulatory changes
3
174
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report SASB RT-CH-320a.2
and Instructions (Shift Assignments)
The Company has a formal
We are constantly working to assess
management systems. Both systems
procedure for addressing workplace
and mitigate risks. We perform risk
include a Risk Management module.
hazards. When a hazard is identified,
assessment and identify material
The module enables internal check
employees are required to suspend
risks using our dedicated proprietary
list-based OHS assessment at all
work and report it to their supervisors
methodology. Following hazard
units of Apatit. The module’s new
directly or via the Public Scrutiny
identification and risk assessment,
underlying principles help enhance
mobile app (on an anonymous
the unit’s OHS officer compiles a List
production H&S control, while
basis if necessary). The supervisor
of Occupational Risks, which is then
its new functions facilitate operation,
uses the report to assess the risk
used as a basis for the Company’s
monitoring and analysis.
and develop a remedial action plan.
List of Material Occupational Risks.
In accordance with an established
procedure, information about
incidents is provided by eyewitnesses
to the supervisors in charge
and by those supervisors
to the dispatcher of the enterprise.
Next, the dispatcher notifies
the designated persons using text
messages and phone calls.
Industrial accidents and incidents
are investigated in accordance
with legislative requirements
and internal procedures to determine
the root causes. The Company
encourages its staff to disclose
information on potential sources
of danger to worker health and life.
For better OHS efficiency,
and to automate and streamline
the relevant processes, we have
introduced and now use the Safety
Risk assessment takes
into account the following
aspects:
degree of personnel
exposure;
impact on personnel;
frequency of
occurrence;
compliance
with the applicable
regulatory and other
OHS requirements.
Emergency response
procedures
At our sites, we have introduced
the following emergency response
and prevention measures compliant
with the Russian laws:
accident management
action plans for all hazardous
industrial facilities as defined
by the Russian laws developed;
training sessions and drills
held in 2022:
test alerts – 125
•
• fire training sessions – 666
• evacuation drills – 96
• oil spill drills – 48
joint fire drills
•
with EMERCOM – 2
Apatit’s programme
for developing gas and mine
rescue, fire-fighting
and prevention activities
for 2019–2022 completed;
a targeted programme
for upgrading Apatit’s fire
safety systems in 2023–2025
developed.
176
177
in November
2022
OHS remote monitoring
system was introduced
Case study
Roll-out of the OHS
remote monitoring system
at the Cherepovets site of Apatit
Starting from 2021, Apatit’s
Cherepovets site (fluosilicate acid
storage facility of the aluminium
fluoride shop) participates
in Rostechnadzor’s experiment
to roll out an OHS remote
monitoring system under
Russian Government Decree
No. 2415 On Experimental
Roll-out of the Industrial Safety
Remote Monitoring System
dated 31 December 2020.
The experiment provides
for the development of stand-
alone remote monitoring
technology for hazardous
production facilities,
and a relevant legal framework.
As assumed, the technology will
improve the overall reliability
and monitoring efficiency
of safety systems, and help
reduce the associated paperwork
and bureaucracy.
The pilot operation of the OHS
remote monitoring system
began in November 2022,
with the process of data
transmission to the Automated
Information System
of Rostekhnadzor currently being
configured.
Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report
Key results in 2022
The significant increase in OHS
The initiatives implemented
and skills of PhosAgro employees
Work-related injuries
resulting from falls and contact
•
reviewing the structure
GRI 403-9, SASB RT-CH-320a.1, RT-CH-540a.1
with moving and rotating objects
and functions of occupational
and equipment. The main causes
health, industrial safety and fire
expenses is attributable to the rise
by the OHS Department
responsible for operating all types
In 2022, the Company continued
of work-related injuries in 2022
safety services with a focus
in prices for personal protective
and transport departments
of transport, and introducing various
to perfect its health and safety
were poor work organisation,
on enhancing control
equipment on the Russian
to mitigate traffic accident
technical solutions to mitigate risks
management system and made
violations of labour and industrial
and preventive work;
market, as well as the expansion
risks includes drafting internal
of traffic accidents. Examples of such
significant progress in improving
discipline, and personal negligence
• selecting and appointing highly
of OHS training programmes
regulations to ensure safe operation
solutions in 2022 include optical
workplace safety. The total number
of the injured parties.
for employees and changes
of motor vehicles, self-propelled
projections of pedestrian crossings
of work-related injuries, both minor
qualified leaders to key positions
in occupational health, industrial
in the approach to organising such
machines and rail transport,
implemented at the Volkhov
and major, significantly reduced
The Company plans to continue
safety and fire safety services;
training as a result of the growing
performing targeted and full-
branch and visualisation systems
across the Company's facilities
implementing its safety
• developing and implementing
number of training programmes
scope inspections of vehicles used
for dangerous zones installed on self-
in 2022, with 20 injuries reported
improvement strategy by leveraging
a system of incentives motivating
due to the adoption of Russian
by our contractors, subsidiaries,
propelled machines at the Kirovsk
compared to 41 in 2021. Of these
new safety tools and modern
all categories of employees
Government Resolution No. 2464
enhancing the competencies
branch.
On the Procedure for OHS Training
and Checking the Knowledge of OHS
Requirements dated 24 December
OHS expenses, RUB mln
2021.
Transport safety
SASB RT-CH-540a.2
From 2020 to 2022, PhosAgro
Group was able to reduce
the total number of traffic
accidents
by 71% from 45 accidents
in 2020
to 13 accidents
in 2022
2022
2021
2020
Apatit
Kirovsk branch
Balakovo branch
Volkhov branch
Traffic accidents at Apatit
and its branches
Total
13
37
45
10
3
19
18
29
16
Total
4,977
3,841
3,029
1,545
2,002
983
447
1,397
1,770
471
203
884
1,593
402
150
2022
2021
2020
Road
Rail
injuries, five occurred to contractor
comprehensive solutions
for safe working practices;
employees, eight to PhosAgro’s
and approaches that have already
• developing and updating
own staff and seven to employees
proven effective, including:
e-courses to educate employees
of subsidiaries and affiliates
• senior management’s leadership
in corporate health and safety
(compared to 16, 17 and 8 in 2021,
and commitment to health
requirements;
respectively). We were deeply
and safety;
•
integrating corporate health
saddened by the fatality involving
• allocating sufficient funding
and safety requirements
our employee which occurred
to ensure occupational, industrial
into the work of contractors;
at the production site of Apatit’s
and fire safety;
• digitalising data management
Kirovsk branch in December 2022.
• knowing and applying
processes to support high-
The investigation has been
international and domestic best
quality analysis and effective
completed. We have thoroughly
practices;
management decision-making.
analysed the circumstances
•
improving the internal incident
of the fatality and communicated
investigation process to identify
conclusions and recommendations
and eliminate root causes;
on preventive measures,
•
implementing project solutions
including a range of technical
and targeted programmes
and organisational steps,
to improve workplace safety;
to the management and employees
• providing employees
of the facility. This tragedy clearly
with modern and effective
shows the importance of further
personal and collective protective
improving safety practices.
equipment;
Most of the injuries reported in 2022
•
involving blue-collar workers (OHS
were related to chemical burns
officers) in directly managing
incurred while handling hazardous
health and safety in their business
substances, as well as fractures
units;
178
179
Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report LTIFR1, per 1 mln of hours worked
Work-related injuries over the past three years
Item
Employees, including
Apatit
Kirovsk branch of Apatit
Balakovo branch of Apatit
Volkhov branch of Apatit
Employees + staff of external contractors (including subsidiaries,
affiliates and managed companies)
Fatalities as a result of work-related injury, per 1 mln of hours worked
Item
Employees
Staff of external contractors (including subsidiaries, affiliates
and managed companies)
Severe injuries (excluding fatalities), per 1 mln of hours worked
Item
Employees
Staff of external contractors (including subsidiaries, affiliates
and managed companies)
Work-related injuries2, per 1 mln of hours worked
Item
Employees
Staff of external contractors (including subsidiaries, affiliates
and managed companies)
2020
0.52
0.42
0.47
0.48
1.37
0.69
2020
0
0.08
2020
0.21
0.33
2020
0.52
0.90
2021
0.85
0.40
1.18
0.00
2.28
0.81
2021
0
0.03
2021
0.05
0.07
2021
0.85
0.82
2022
0.32
0.12
0.22
0.80
0.88
0.38
2022
0.05
0
2022
0
0.04
2022
0.36
0.44
Number of hours worked by the Company’s employees and staff of external contractors
Item
Employees
Staff of external contractors (including subsidiaries, affiliates
and managed companies)
2020
2021
2022
19,091,953.05
19,893,115.33
22,196,069.58
24,359,432.13
29,207,298.96
27,194,133.46
1 Lost time injury frequency rate, excluding fatalities.
2
Including fatalities.
Branches
Minor injuries
Severe injuries
Fatal injuries
Total
Apatit
(Vologda region)
Balakovo branch
Volkhov branch
Kirovsk branch
Subsidiaries
and affiliates
External contractors
2020
2021
2022
2020
2021
2022
2020
2021
2022
2020
2021
2022
2
–
2
2
7
5
3
–
4
9
7
14
1
2
2
2
6
5
1
1
–
2
6
2
–
–
–
1
1
1
–
–
–
–
1
–
–
–
–
–
–
2
–
–
–
–
–
1
–
–
–
1
–
–
3
1
2
4
13
9
3
–
4
10
8
16
1
2
2
3
7
5
Worker training
on occupational health
and safety
GRI 403-5
Our e-courses are easy to understand
•
implementation of the railway
since they are made in the form
transport safety management
of illustrated slides with key
system at Apatit and its branches.
highlights on them. In particular,
In 2022, 10,800 employees
of the Company1 (around 80%
of the total headcount) passed health
we offer an e-course on corporate
Whenever required, the courses
OHS standards. It is followed
developed earlier are updated
by tests to check the knowledge
following changes in the law
and understanding of the standards
and the Company’s internal
and safety training and knowledge
and requirements.
regulations.
checks, including an ad-hoc one (vs
7,800 employees in 2021).
In 2022, we developed and rolled
In 2022, we updated the following
out four e-courses on the key
e-courses:
PhosAgro keeps working to improve
occupational health and safety
• Occupational Health and Safety
OHS competencies and knowledge
regulations:
Golden Rules;
of its staff. Employees
• procedure for occupational safety
• working at heights;
of the Company undergo online
audits using check lists;
• contractor safety requirements;
and in-person training arranged
• course in the Safety
•
investigation and communication
at our PhosAgro Education Centre.
and Instructions (Shift
of occupational health and safety
Assignments) management
accidents/incidents;
systems for beginners;
• management of contractors’
• procedure for operations
organisational and technical
in a confined space;
documents.
10.8 thousand
employees underwent
health and safety training
and knowledge check
1 Apatit, including its branches and standalone business units.
180
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report In 2022, 7,200 employees
All our employees, from managers
of the Company (54% of the total
to blue-collar staff, receive
headcount) completed 13 e-courses
occupational health and safety
in occupational safety.
briefing and training as required
by the Russian laws. Furthermore,
Apart from that, PhosAgro Education
the employees of the Company
Centre organises OHS training,
and some contractors are offered
including that in basic fire safety
a number of additional courses.
and electrical safety, industrial safety
pre-certification sessions, and drills
To improve OHS training and remind
in the Vysota training centre.
employees about workplace safety,
PhosAgro Education Centre creates
animated videos.
100%
of employees covered
by the health and safety
management system
in 2022
7.2 thousand
employees completed
13 e-courses in
occupational safety
GRI 403-8, 403-1
In 2022, our health and safety
management system covered
100% of the Company’s employees.
All our employees (executives
together with blue- and white-
collar staff) take OHS training
as required by the national laws,
as well as additional training.
The minimum required training
is provided to each and everyone,
including all visitors and contractors
as part of the introductory briefing.
Raising awareness
about OHS
To keep our employees well-
In 2022, check lists
were developed
for the following topics:
• Rules for Working in Winter /
Safe Driving and Walking
in Winter;
• Safe Use of Stairs / Flights
of Stairs;
• Golden Rules;
• Correct Use of PPE;
• OHS Motivation;
• Learn the Occupational Safety
Rules;
• Disease Prevention;
• Control of Briefings for Each
Shift;
• Safe Earthworks;
• Occupational Safety at Low
Temperatures, etc.
in 2022
an illustrated Incident
Almanac was developed
In 2022, in order to draw attention
things. In particular, the Company
of the Company's employees
established the following KPIs
to incidents, an illustrated Incident
with regard to OHS:
Almanac was developed. This
• LTIFR covering all staff categories,
is a printed handbook describing
including contractors;
all incidents in 2021 shown
• zero fatalities among all employee
as animations. This format clearly
categories, including contractors;
In 2021, pilot business units of Apatit
illustrates the circumstances
•
timely implementation of action
launched briefings for each shift.
of incidents, draws attention to their
items from improvement notices
This initiative was rolled out at all
causes and actions to prevent similar
issued by supervisory authorities;
business units in 2022.
incidents in future.
•
industrial safety indicator;
• zero industrial accidents.
The key objectives of such briefings
are:
•
revising industrial dangers/
hazards, OHS requirements (as set
Changes to labour safety
promotion programmes
The Company has developed OHS
promotion programmes to maintain
each PhosAgro employee’s interest
out in the Company’s internal
Senior executives (CEOs
in ensuring their own safety
informed about our safety measures,
regulations, OHS guidelines,
of the Company and its business
and the safety of those around
PhosAgro constantly develops
and updates OHS check lists,
presentations and other visual
materials that emphasise the crucial
information employees must rely
on in various situations, including
working on particular assignments,
in order to stay safe.
Raising awareness about
occupational health and safety, each
month the Company issues check
lists on the month’s topic.
technical and operational
units, as well as their direct
them, as well as to encourage
documents), and safe work
subordinates) recognise
the employees to take initiative
practices;
the importance of OHS
and implement OHS improvements.
•
fostering leadership skills among
and are committed to safety
mid-level managers;
and ready to take necessary
In 2022, we revised the employee
• developing managers’
managerial decisions. Since 2014,
labour safety promotion regulations,
communication skills.
PhosAgro has had a system of KPIs
including the addition of a new
that uses uniform standards
incentive programme, Best Public
linking the size of management
Scrutiny User, which provides
remuneration to the efficiency
for quarterly cash bonuses
of OHS measures, among other
to employees who show initiative.
1 Apatit, including its branches and standalone business units.
182
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report Best OHS
Employe
Safety Ideas
CEO's OHS
Achievement
Award
Best OHS
Business Unit
RUB 15,000
RUB 10,000
RUB 5,000
RUB 30,000
RUB 5,000
for every idea
implemented
RUB 125,000
RUB 50,000
for teams participating
in the super final
RUB 100,000
Once a quarter
Once a quarter
Once a year
Once a year
Employee labour
safety promotion
regulations
Best Public
Scrutiny User
RUB 15,000
Once a quarter
A new programme since 2022
aimed at:
• engaging employees
in the Public Scrutiny system
(InSight mobile app);
• showing leadership
and commitment
to occupational safety
among employees
of Apatit and its branches
by “submitting improvement
ideas” or “reporting hazardous
situations”.
15,000
₽
The employee incentive system
receives more financing
and is improved on an annual
basis, RUB
2022
2021
2020
2,339,090
2,063,218
445,000
Apart from that, the existing
promotion programme
includes:
individual incentive
programmes :
• Best OHS Employee
• Safety Ideas
• Best Public Scrutiny User
collective incentive
programmes :
• CEO’s OHS Achievement
Award
• Best OHS Business Unit
GRI 403-10
Number of employees diagnosed with occupational diseases
Branches
Apatit
Kirovsk branch of Apatit
Volkhov branch of Apatit
Balakovo branch of Apatit
Total
2020
2021
2022
0
23
0
0
23
4
26
0
0
30
1
14
0
0
15
In 2020–2022,
there were no
fatalities caused
by occupational
diseases.
Promotion of worker health
GRI 403-6, 403-7, GRI 403-10
contests is the Russian Organisation
of High Social Efficiency.
The participation of PhosAgro’s
PhosAgro places a strong
facilities starts at the regional
emphasis on disease prevention,
health improvement, and high-
quality affordable healthcare
and prevention for the employees
of all its production sites.
stage with submissions made
in the category For Promoting
a Healthy Lifestyle at Industrial
Organisations.
The benefits include:
health resort
(rehabilitation)
treatment at corporate
resort centres in our
regions of operation
and countrywide;
In 2022, the Company continued
services of outpatient
The Company takes part
in the Health 360 programme run
by the Russian Chemists Union
introducing employee
support programmes (mental
health support, online advice
clinics and health posts
(including those available
24/7) at the Company’s
to promote annual health self-
for personal circumstances, etc.)
production sites, operated
assessments based on a dedicated
and programmes to promote health
by corporate medical
questionnaire.
and well-being (telemedicine,
centres and private
healthy diets, emotional unwinding,
and state-run healthcare
In addition, PhosAgro is a frequent
etc.).
participant in contests aimed
facilities;
at promoting and shaping best
All employees who have signed
treatment (expensive,
practices for safe operations
an employment contract
dental, medical
and healthy lifestyles. One of such
with the Company benefit from
counselling) at healthcare
long-term voluntary health
insurance (VHI) covering a broad
range of risks.
facilities in our
regions of operation
and countrywide.
184
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report and examinations of staff involved
employee’s emotional stress, kicked
based on employee surveys,
PhosAgro’s facilities have corporate
levels of competitions, including
in potentially hazardous and/
off in 2021 at the Balakovo branch.
review of complaints, and canteen
fitness centres, which include game
Russian national.
In 2021, PhosAgro started a pilot
project to use a traffic light labelling
system for foods as a way to promote
healthy dieting among employees.
Also since 2021, we have been
providing and broadcasting cooking
workshops.
As part of preventive care and health
promotion efforts for PhosAgro's
employees and veterans in 2022,
the Company purchased
2,670 vouchers for them to go
to health resort facilities. In 2022,
employees and their families
received 947 free vouchers under
the Wellness programme, with
partial coverage of travel expenses
2,670
vouchers to health
resorts purchased
by the Company
in 2022 for employees
and veterans
of the Employee Mental Health
Support programme, the Company
offers meetings in persons, online
interviews, and comprehensive
events such as webinars
and training sessions to reduce
conflicts in teams, improve their
psychological resilience, and increase
performance levels. Starting
from 2022, psychological support
is provided by in-house psychologists
to employees of Apatit, its branches
facility, the fitness centre is attended
and subsidiaries.
by an average of 3,000 people
per month; on days of mass
To promote traditional
classes, attendance has reached
spiritual values, improve social
up to 250 visits per day since 2019
and psychological climate
(excluding periods when COVID-19
to and from the recreation facility.
cases were on the rise).
Employees of the Company and
their family members as well as
veterans have year-round access
to corporate health resorts at a
An annual sports contest
(Spartakiad) is held for employees
in 18 types of sports. Teams
in the team, and enhance emotional
well-being, the Company does
a lot to help build and reconstruct
Orthodox churches.
Those employees whose children
reduced price.
in football, volleyball and other sports
are involved in the DROZD project
represent the Company in various
halls, gyms and swimming pools
and are available to employees
on a daily basis. Pools offer classes
in water aerobics and swimming
lessons, both very popular among
Since 2020, the Cherepovets facility
provides free psychological support
to employees, with in-house
psychologists available to them
employees. At the Cherepovets
for counselling and advice. As part
tests.
(Educated and Healthy Children
of Russia) annually take part
in several joint training sessions
and sports contests held among
families. At the DROZD sports
facilities, our employees can work
out and get ready for GTO (Ready
for Labour and Defence) fitness
RUB 2.2 bln
allocated towards
the programme
to improve social
and working
conditions
Health insurance contracts
are signed annually as part of long-
term cooperation with the SOGAZ
insurance company.
On-site clinics can provide accident
and emergency care and specialist
advice from a therapist,
endocrinologist, neurologist,
ophthalmologist, dentist and other
doctors. PhosAgro also has mobile
medical teams and organises
screening sessions for its employees.
The Company's facilities take
part in federal level prevention
campaigns, such as a high-profile
all-Russian campaign called Cancer
Watch: as part of it, 16 doctors
of the National Medical Research
Radiological Centre examined
over 300 employees of PhosAgro’s
Cherepovets facility.
PhosAgro’s production sites organise
initial and regular check-ups
Psychological Relief Room,
another project aimed at reducing
and advice to employees, and all
meals are assessed each quarter
or dangerous activities.
Going forward, the project will
attendance levels. Employees can
Since 2010, the Company has been
running a programme to improve
social and working conditions
by conducting annual scheduled
repairs in all buildings housing social
be extended to other facilities.
comment on the quality of meals
in a real-time mode by completing
Starting from 2022, employees of all
a survey available in corporate
PhosAgro facilities have access
to Telemed, a telemedicine service
offered by SOGAZ. Furthermore,
canteens via a QR code. On top
of that, we have a dedicated
working group that attends all
and sanitary facilities, canteens,
Apatit's Balakovo branch continues
of Apatit’s sites to assess food
and workplaces. In 2010–2022,
PhosAgro invested over RUB 2.2 bln
in the programme.
piloting the Doctor Nearby project
run by DOCTIS, and collaboration
is ongoing between Apatit and its
quality and canteen conditions.
As part of healthcare initiatives, staff
canteens provide nutrition according
branches with the DobroService
to Diet No. 10 targeting patients
platform offering online counselling
with cardiovascular diseases.
In 2022, the Company made further
progress on its Occupational
Health and Preventive Healthcare
Programme by focusing on making
workplaces more comfortable
and putting in place break rooms.
on critical issues.
In 2022, the Company introduced
changes to its menu of dietary
and health meals provided
As regards workplace comfort,
to employees working in harmful
standard terms of reference
conditions. Quality of the meals
were developed for the purchase
is subject to regular control
of chairs for structural units,
in cooperation with the trade union.
and a list of best models
was compiled following their tests
Every day, canteens at the Company's
at structural units and polls at Apatit
facilities serve up to 600 people.
and its branches.
The Company has a nutritionist
on site to provide information
Every day, canteens at
the Company's facilities
serve up
to 600 people
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Company profileCorporate governanceShare capital AppendicesPERFORMANCE REVIEWStrategic report Target programme
Programme results:
As part of the programme:
•
improved training facilities
and equipment of gas/mine
rescue and fire-fighting units;
• enhanced quality
of hands-on training for young
hires;
• achieved compliance with gas,
•
mine, fire rescue, and personnel
training regulations;
re-equipped gas/mine rescue
and fire-fighting units, new
equipment and machinery
purchased.
Apatit's target programme
for developing gas and mine
rescue, fire-fighting
and prevention activities
for 2019–2022.
In 2022, Apatit's target
programme for developing gas
and mine rescue, fire-fighting
and prevention activities for 2019–
2022 was completed at all
of Apatit’s branches.
Total funds allocated
for the programme stood
at approximately
RUB 237 mln
• headcount of the respective
business units increased
by 92 people,
to 456 people
• purchased:
– equipment – 447 units,
– machinery – 17 units,
– gear – 579 units;
• a new fire brigade station
was created at the Kirovsk
branch of Apatit;
two buildings were renovated
to accommodate a gas rescue
squad.
•
Participated in personnel
training initiatives —
396 people
To maintain and replicate this
standard across all its units,
the Company established
the Transformation Centre,
which implements tools to help
achieve the project’s goals. These
tools include leadership visits,
standard operating procedures,
audits of hot work, gas hazardous
and underground construction
work, etc.
In 2022, following an audit
of the corporate work
permit systems in place
at the Cherepovets facility
and Volkhov branch, PhosAgro
resolved that a target model
system must be developed,
along with an assessment
methodology (both are expected
to be completed in 2023).
Case study
Transformation of safety culture
and OHS management system
Since 2021, we have been running
a three-year project called
"Transformation of Safety Culture
and OHS Management System".
Project goals:
•
transforming the safety culture
and developing OHS leadership;
• developing, adapting
and ensuring the sustainability
of best practices in the field
of safety culture and OHS
management improvements;
learning how to arrange
and carry out works associated
with high OHS risks;
•
• ensuring the sustainability
of our performance
and the relevance of our
management system
over the next five years;
reaching stage 3.1 as per
Bradley curve (in 2021,
we were at stage 2.2).
•
The project covers key business
units of Apatit, entities under
management, subsidiaries
and affiliates, and third-party
contractors engaged by our
production sites.
In 2022, the project delivered
its first results, with the level
of safety for higher-risk activities
improving
by 30%
and remaining unchanged
throughout the year.
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Environmental
review
AREA, STRATEGIC GOALS AND METRICS
KEY PROJECTS AND HIGHLIGHTS OF 2022
CLIMATE
Targets
12.4, 13.1, 13.2
Climate action and minimisation of GHG emissions
2028: gross emissions
of СО2-eq.
Scope 1 – 4,175.5 kt
Scope 2 – 794.7 kt
2028: Scope 1 emissions – 109.1 kg
of СО2-eq.
of СО2-eq./t
ENERGY EFFICIENCY
Targets
12.4, 13.1
Minimisation of Scope 2 GHG emissions to
794.7 kt
of СО2-eq.
as part of the Energy Efficiency Programme
WASTE
Waste recycling
Target
12.4
2025: 40%
of hazard class 1–4 waste recycled and decontaminated
Targets
3.9, 12.4, 13.1
AIR
Minimisation of air emissions
2025: pollutant emissions
0.80 kg/t
WATER
Targets
3.9, 6.3, 12.4
Responsible water use
2025: water withdrawal
2025: waste water discharge
into surface waters
4.16 m3/t
5.16 m3/t
BIODIVERSITY
Preservation of biodiversity
in regions of PhosAgro Group’s
operation at a level securing
sustainability
Targets
3.9, 15.1
Gross emissions:
Scope 1
4,909 kt
of СО2-eq.
Scope 2
821.6 kt
of СО2-eq.
Scope 1 emissions of СО2-eq.
133.1 kg
1
of СО2-eq./t
• Climate Agenda project
• Contracting TGC-1 as a supplier
of green energy generated
by HPPs
• Assessing the impact
of the carbon border adjustment
mechanism on the Company’s
operating expenses
Low-carbon transition plan
•
• Сo-processing of
phosphogypsum and carbon
dioxide
Self-sufficiency in electricity supplies
42.9%
18%
of the mining and processing plant’s
output covered by green electricity
• Upgrade of the lighting system to LED
Construction of a heat and power
plant with a 34 MW exhaust gas
turbine and a water treatment system
(Volkhov)
38.8%
of hazard class 1–4 waste recycled
and decontaminated2
• Enhanced ore processing (Kirovsk)
• Use of phosphogypsum
•
Implementation of phosphogypsum
conversion at Balakovo branch
Pollutant emissions
0.79 kg/t3
•
Installation and upgrade of gas
recovery equipment in upgraded
and new shops (Volkhov)
• Dust suppression of dusty surfaces
(Kirovsk)
• Project of upgrading the process
to return synthesis and purge gas
to the fuel gas system without
sending ammonia-containing gases
to burners of the steam superheater
• Second stage of water use
optimisation programme
(Cherepovets)
• Collection and treatment of seepage
water from ANBP-2 tailing dump
Waste water discharge
into surface waters
5.27 m3/t4
Water withdrawal
6.42 m3/t5
• Development of comprehensive
programmes to protect
biodiversity (Cherepovets,
Volkhov, Kirovsk)
• Release of young fish and
larvae into water bodies
across the Company’s regions
of operation
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1 The indicator was calculated
as the ratio of the Scope 1 gross
emissions under GRI 305-1 to the total
output of finished and semi-finished
products.
2 The Group specific disclosure
was calculated as the ratio of class 1–4
waste recycled and decontaminated
to the total volume of class 1–4 waste.
3 The Group specific disclosure
was calculated as the ratio of total
pollutant emissions discharged
into the atmosphere to the total
output of finished and semi-finished
products.
4 The Group specific disclosure
was calculated as the ratio of waste
water discharged into surface water
bodies, including mine and pit waters,
to the total output of finished and
semi-finished products.
5 The Group specific disclosure
was calculated as the ratio of total
water withdrawal to the total output of
finished and semi-finished products.
PERFORMANCE REVIEW
Strategy
SASB EM-MM-160a.1, RT-CH-410b.2
At PhosAgro, we attach much
importance to environmental
protection and safety,
as well as climate risk management,
putting every effort into all of these
areas to secure the Company’s
sustainable development and well-
being of the regions across
its geography.
Our Strategy to 2025 is designed
to observe strict compliance
with legislative environmental
responsibility standards
and practices aimed at minimising
the impact of the Company’s
operations throughout the whole life
cycle of a fertilizer, from mine to food
products.
We strive to produce fertilizers
Based on the assessment
results, we mapped out
six strategic focus areas
of environment protection,
including:
Climate
Energy efficiency
Waste
Air
Water
Biodiversity
Since 2020, we have been
implementing the Climate Strategy
based on PhosAgro’s vision
and consumption waste from
our operations, we are now
implementing a range of projects
aimed at minimising waste
generation and increasing the share
of recycled waste.
In the scope of the strategic
objectives to minimise air emissions,
PhosAgro is running a programme
to re-equip production facilities
and cut pollutant emissions.
In addition, in 2020, we adopted
the Water Strategy to minimise our
impact on water bodies by means
of lean treatment of resources: less
water withdrawal and waste water
discharge. As part of the Strategy,
we assessed water use risks
and opportunities, including
in a safe and eco-friendly manner,
and expertise in GHG emissions
potential scarcity of water resources,
thus contributing to the sustainable
management. The document reviews
set targets for water withdrawal
agricultural development worldwide.
climate risks and opportunities
and waste water discharge
Committed to continuous
extensively, setting targets for GHG
and designed a detailed action plan
improvement, the Company keeps
emissions and presenting the low-
for each site to achieve the targets.
working to lessen the environmental
carbon transition plan.
impact of its production operations
and across the value chain.
The key priorities set out
The Company acts on the Energy
Efficiency Programme
designed to ensure compliance
PhosAgro sticks to its biodiversity
management system comprising
the assessment of potential
impact, interaction with a wide
in PhosAgro’s Environmental Policy
with the Climate Strategy
range of stakeholders,
are careful use of natural resources
and the Energy Efficiency
as well as monitoring and reporting
and reduction of the environmental
and Energy Saving Policy tightly
practices.
footprint.
integrated into the Company’s
Strategy to 2025.
We believe that our requirements
We had a comprehensive assessment
of our operations, determining key
focus areas of such impact, both
direct and indirect, and weighed
Strategy to 2025 also seeks
to minimise waste generation
substantially. Having developed
should be uniform both for us
and our partners engaged
in PhosAgro’s projects. Everything
we require of ourselves equally
it against the UN Sustainable
a system for accumulating
applies to our counterparties
Development Goals (UN SDGs).
and analysing data on production
and is enshrined in the Code
of Conduct for Counterparties.
Management approach
GRI 3-3
Effective environmental
Traditionally, we put a special
with the Environmental Policy
management is key to PhosAgro’s
focus on environmental matters
and the Company’s internal
long-term sustainability
and stand in unconditional support
regulations.
and indicative of the Company’s
of the vulnerable and rare habitats
commitment to run a socially
across our geography, leaving
responsible business, balancing
them intact and carefully treating
its obligations to a wide range
natural systems and resources. Our
of stakeholders.
operations undergo a stringent
assessment for compliance
For PhosAgro’s
Environmental Policy,
see the Company's
website
We adopted a unified approach to environmental management that relies on
Company-wide control
A unified management system
Environmental compliance
Putting Strategy to 2025 into action
and compliance with the Company’s
environmental policies are overseen
by the Strategy and Sustainable
Development Committee that
regularly reports on the Company’s
progress to the Board of Directors.
The Environmental Protection
Department exercises executive
control over the Company’s
environmental activities.
The consistency of PhosAgro’s
activities aimed at environmental
protection and strengthening
of the Company’s environmental
performance results from continuous
development of the environmental
management system that
was recertified according to ISO
14001 in 2022.
Our environmental management
system relies on strict compliance
with applicable laws and regulations.
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PERFORMANCE REVIEW
Environmental management
system
Environmental management framework
Unit
Management approach
BOARD OF DIRECTORS LEVEL
Board of Directors
Strategy and Sustainable
Development Committee
GROUP MANAGEMENT LEVEL
Department of Ecology
and Environmental Management
of JSC Apatit
OPERATIONAL LEVEL
Environmental Control
and Management Service
Officers in charge
of environmental protection
Defines the Company’s environmental
policy and sets strategic goals to ensure
environmental protection and reduce
the negative impact of its operations
• Maintains and regularly assesses
PhosAgro’s internal sustainability
regulations and monitors their
development, relevance, quality
and efficiency, as well as compliance
with applicable laws and internal
sustainability objectives
• Engages with key stakeholders
and fosters healthy and sustainable
communities across all regions
of operation
• Prepares recommendations
to the Board of Directors
on determining the Company’s
strategic sustainability objectives
Is responsible for general management,
organisation and coordination of efforts
to continuously enhance environmental
management
Fulfils commitments to the ongoing
environmental improvement
and reduction of the environmental
footprint
• Production units, which have
the greatest environmental impact,
have introduced a procedure
for identifying and assessing risks
and opportunities. Based on the results,
we develop measures to bring risks
pertaining to significant environmental
aspects to an acceptable level.
• Managers and experts responsible
for making operational and other
decisions that may adversely
affect the environment take
a specially designed training course
in environmental safety. Only specially
trained employees are cleared
to handle hazard class 1–4 waste.
Our environmental
management
system is integrated
with the Company’s overall
management framework
and is a key element in our
approach to managing
environmental responsibility
In 2022, the environmental
management system
was recertified across
the Company's production
sites and was found
to be in full compliance
with ISO 14001.
The full text
of the certificate
is available
on the Company's
website
PhosAgro’s environmental
management system
embraces all management
levels and all stages
of the product’s life-cycle,
from R&D to manufacturing
and product application
by customers. This
approach ensures
uniform management
requirements across all
aspects of the Company’s
operations.
The facilities have also
put in place a procedure
to manage internal audits.
Every year, they develop
internal audit programmes
taking into account
the environmental
significance of the reviewed
processes, changes
affecting the facility
and previous audit
outcomes. The audits
provide input data
for the management
to analyse environmental
management efficiency.
Our strategic environmental
conservation regulations. To that
None of PhosAgro’s enterprises
protection goals are set out
end, the Company has developed
uses ozone-depleting substances
in the Company’s Strategy to 2025,
an internal and external control
in the production process. A small
climate and environmental agendas
framework, which includes internal
and their achievement is included
audit and external compliance
in the KPIs of managers and senior
reviews, a reporting system designed
amount (not more than 250 kg/year)
of carbon tetrachloride (CCl4) is used
for some laboratory testing.
executives.
in accordance with legislative
requirements, and a staff training
We do not undertake cross-border
Compliance
system.
hazardous waste transportation
and our production sites are not
Environmental compliance is key
All our facilities that have an adverse
situated in protected areas. Hence,
to running a responsible business.
environmental impact are included
there are no significant restrictions
in dedicated state registers,
on our operations.
PhosAgro's environmental
with relevant categories assigned
management practices ensure our
to them. PhosAgro has all necessary
compliance with the applicable
permits in place for each of these
environmental and nature
facilities.
Spending on environmental protection, RUB mln
Item
Operating costs of environmental protection (form 4-OS)
Investments in fixed assets aimed at environmental protection (form 18-KS)
Environmental impact payments
Environmental fines and damages
Total
2020
4,825.3
3,120.4
174.6
0.02
2021
5,510.3
4,168.8
178.4
4.258
2022
6,534.6
2,396.7
192.6
2.464
8,120.3
9,860.7
9,126.4
The slight decline in expenses in
The Company took steps to remedy
construction projects, resulting
2022 was due to the fact that the
the harm caused by an emergency
in Apatit being held administratively
bulk of CAPEX associated with
in 2019 by committing RUB 2,274,000
liable under Articles 8.1 and 8.2 of the
the Company's key environmental
to the reproduction of aquatic
Code of Administrative Offences of
investment project, the aluminium
biological resources in 2022.
the Russian Federation and required
fluoride production upgrade in
to pay a penalty of RUB 190,000.
Cherepovets, was incurred in
In 2022, local bodies of the
2021. In 2022, a considerable part
Federal Service for Supervision
of investment projects with an
of Natural Resources carried out
environmental impact were at the
nine unscheduled audits of Apatit,
design stage.
including six audits of class 1 capital
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PERFORMANCE REVIEW
Environmental impact payments, RUB mln
Risks and opportunities
ATMOSPHERE
MPE
TPE
O-limit
AQUATIC ENVIRONMENT
SPD
TPD
O-limit
WASTE
Limit
O-limit
Total
Over-limit
Share of over-limit in total payments, %
2020
2.901
0
0
2.165
0
169.487
0
174.553
0
0
2021
2.440
0
0.018
3.886
0
172.091
0
178.416
0.018
0.01
2022
2.797
0
2.355
4.864
0
182.606
0
192.620
2.355
1.22
In 2022, over-limit payments
includes external and internal audits
accounted for 1.22% of total
of the environmental management
environmental impact payments.
system (EMS), activities to monitor
An over-limit payment
was calculated and paid
and assess the Company's
performance, including
due to exceeding the permissible
by a wide range of stakeholders,
emission limit for nitrogen oxides
and the analysis and assessment
by one of the emission sources
of the Company’s performance
at the Cherepovets facility.
by the Company’s management.
Nevertheless, the increase in the
These efforts enable the Company
Company's environmental impact
to work out corrective action plans
payments in 2022 was 8%, while
and proposals on how to develop
the statutory indexation rate for
and improve the EMS.
environmental impact payments in
2022 was set at 10%, which points
Stakeholder engagement is essential
to the effectiveness of our efforts to
for the Company’s planning. Public
reduce emissions.
hearings are a legitimate and effective
Assessment, analysis,
and monitoring
mechanism for establishing
dialogue with stakeholders using
a discussion platform to express their
opinions and make suggestions
on the initiatives under consideration.
Continuous improvement is inherent
This mechanism has a positive impact
in our environmental management.
on the decision-making process
The Company identifies areas
and improves its efficiency. Engaging
for improvement by reviewing
the general public and a wide array
its management system using
of stakeholders in discussion plays
an effective mechanism, which
an important role and helps ensure
that all points of view are considered.
PhosAgro public hearings
coverage
Number of public hearings
2022
2021
2020
12
15
13
The list of public
hearings is available
on the Company's
website
When assessing
the Company’s
performance, much
attention is paid
to the analysis of ESG
ratings and investor
feedback
Environmental risk management
The environmental protection risks
The Company develops corrective
is an integral part of the Company's
include:
risk governance framework.
The following strategic risks affect our
environmental protection objectives:
measures as necessary and unlocks
opportunities to mitigate those risks.
Below you can find more information
about what we do on this front.
Non-compliance
with the existing
environmental
impact
regulations
1
7 environmental risks;
13 regulatory risks;
19 climate risks.
For more information, see
the Strategic Risks section
on page 70.
2
Failure to
achieve energy
efficiency
targets
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PERFORMANCE REVIEW
Climate
SASB RT-CH-110a.2 / EM-MM-110a.2
Our targets
2022 highlights
Reduce total GHG
emissions (Scope 1, 2, 3)
by 14%
by 2028 vs 2018
Reduce GHG emissions
per tonne of finished and
semi-finished products
(Scope 1)
by 31%
by 2028 vs 2018
Scope 1 emissions
4,909.0 kt of CO2-eq.
Reduction of specific Scope 1 emissions
2.4 kt of CO2-eq.
per tonne of finished and semi-finished products by
2021
18%
of phosphate rock and nepheline concentrate.
We organised a “pilot site” of circa 650 ha of a carbon
farm as part of a carbon footprint compensation project
in the Vologda region.
Gross and specific GHG emissions (Scope 1 and 2) across the Group, СО2-eq.
Indicator
Gross GHG emissions (Scope 1), kt
Gross GHG emissions (Scope 2), kt
Specific GHG emissions (Scope 1), kg/t
2018
2020
2021
2022
4,624.6
4,856.5
4,775.8
4,909.0
924.1
150.5
978.3
143.6
893.3
135.5
821.6
133.1
2028
4,175.5
794.7
109.1
PhosAgro has LEAD status
Starting from 2021, PhosAgro
The Company’s representatives
under the UN Global Compact
publishes an annual TCFD report
are members of climate change
and is a participant of the Climate
fully addressing the climate
and sustainable development
Ambition, an initiative launched
aspects of its operations, strategy,
task and expert groups instituted
under the UN Global Compact.
risks, opportunities, governance,
by government authorities and non-
In 2021, the Company partnered
performance, and metrics.
governmental organisations,
with CGI Russia (Climate Governance
In June 2021, PhosAgro publicly
and are actively engaged
Initiative), an organisation
declared support for the TCFD
in discussions on current global
established by the World Economic
and its recommendations.
challenges.
Forum to raise awareness
and boost efficiency of boards
of directors with respect to climate
change. The organisation assists
in developing climate strategies
and implementing them,
as well as integrating the climate
change agenda into day-to-day
and long-term business decisions.
The full text
of our 2020 TCFD report is available
on the Company's website
Strategy and management
approach
and investment decisions,
as well as in its day-to-day
and financial planning. The Company
develops and takes systemic
GRI 3-3
business management. In 2022,
measures to reduce its carbon
we developed mechanisms
footprint and closely interacts
The Company focuses on climate
to integrate the internal carbon price
with partners across its value
change in line with the double
into the evaluation of investment
chain (suppliers and consumers)
materiality principle. On the one
projects and introduced them
and other stakeholders in Russia
hand, it identifies and assesses
in early 2023. The Company has
and worldwide.
the impact of its operations
identified, assessed, and prioritised
on climate all along the value chain
climate risks, establishing their
PhosAgro's Climate Strategy
from extraction of raw materials
short, medium and long term
was adopted in 2020.
to consumption of finished products.
consequences for its production
It is a comprehensive document
On the other hand, it projects how
and business processes. We make
setting out the Company's climate
climate change affects PhosAgro's
our strategic plans and day-to-
policy in the face of growing climate
business, strategy, and financial
day management decisions
change and uncertainty.
planning.
with full awareness of the nature
and extent of climate impact
Climate matters feature prominently
(both environmental and political)
in PhosAgro Group’s strategic
on the Company’s business, strategy,
Main principles of PhosAgro’s Climate Strategy
• Setting up targets to minimise
•
GHG emissions in line
with the Science Based
Targets initiative; using climate
scenario analysis
Integrating climate risks
into the comprehensive risk
management framework
for investment and day-to-day
business activities
• Focusing not only
on technology-related
measures, but also
on proper organisation
and management,
as well as changes in the social
and personnel policy
•
in the effort to reduce GHG
emissions
Identifying not only risks, but
also attractive climate-related
investment opportunities
and making long-term plans
for them
• Promoting awareness
of the Company's climate
initiatives and plans,
as well as cooperation in specific
areas.
The Strategy has set the following
goals:
•
to minimise GHG emissions while
increasing output;
•
•
•
•
to improve energy efficiency
and environmental
performance of the key
production processes;
to reduce energy and carbon
intensity per unit of output;
to enter into new emerging
markets for green products;
to retain and expand
the existing market niches
by ensuring PhosAgro’s
competitive edge in terms
of energy and carbon intensity.
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PhosAgro is currently focused
The Company's experts continued
on creating particular
Apart from that, the following
to explore options for absorbing
metrics reflecting the impact
has been developed as part
greenhouse gases in order to select
the most suitable ones. In 2022,
we launched the Carbon Footprint
Compensation project aimed
at absorbing (compensating for)
GHG emissions, with a carbon
footprint compensation farm being
set up in the Vologda region. Its pilot
site was organised in 2022.
Low-carbon transition plan
The low-carbon transition plan
is based on the specialised research
data and seeks to support economic
development of PhosAgro that
builds on the priority of keeping
GHG emissions to a minimum.
It is implemented to ensure that
the GHG emission reduction targets
are delivered across all scopes.
of climate action in production
of the project:
and management processes
on financial indicators.
The Company has analysed
the impact of the carbon border
adjustment mechanism (CBAM)
on PhosAgro’s operating expenses.
The new mechanism will cover
Russian industrial products,
including, most likely, mineral
fertilizers. Given the uncertainties
rules for using the internal
carbon price;
guidelines
and methodology
for calculating the carbon
footprint of products
(validated by a reputable
international certification
body);
as to the emission scopes
a procedure
for cooperation across
the value chain involving
suppliers, customers,
and other stakeholders;
a mechanism
for the transition to low-
carbon energy sources
and acquisition of green
energy.
the CBAM will apply to, the ability
to account for PhosAgro’s individual
emission levels, and the changing
carbon dioxide prices, we have
determined the estimated ceiling
and floor of the mechanism’s
impact on the Company’s financial
performance in 2023–2030.
Actions to deliver the Climate
Strategy
The Climate Agenda project
was implemented to create
the climate action management
system and push forward the low-
carbon transition plan.
In 2022, we developed technical
and technological initiatives
to reduce direct GHG emissions
with due regard to their economics.
To this end, we engaged one
of the global leaders among
consulting firms.
Risks and opportunities
GRI 201-2
footprint and reduced flows
of ecosystem services; lower
resilience of infrastructure
Opportunities
O1 – boosting PhosAgro Group’s
appeal as an environmentally
PhosAgro identifies its climate
and communications
and climatically responsible supplier
risks and opportunities taking
due to increasing climatic effects.
of products with a positive climate
account of climate change.
profile.
The process is influenced by physical
(changes in natural processes
R3 – PhosAgro Group’s failure
to comply with regulations reducing
or phenomena) and transitional
its negative environmental footprint
O2 – improved logistics driven
by the new export opportunities
(changes in the policy and regulation
(following the adoption of the carbon
amid shortened seasonal freeze-up
with a view to fulfilling low-carbon
border adjustment mechanism).
of rivers and lakes due to climate
transition) factors of various nature.
change.
Risks
R1 – disruptions in production
processes and logistics operations
due to increasing acute climatic
R4 – deterioration of the Company’s
sustainability reputation.
R5 – increased costs and losses
(as a result of customers’ failure
O3 – new financial products that
open up new sources of cheaper
funding (such as green bonds)
for companies that embraced
effects and other climate-related
to meet their obligations, rising prices
environmental and climate
factors.
for feedstock, materials and services,
sustainability.
R2 – flaws in supply chains,
construction design, health
higher borrowing rates) and shrinking
revenues (as a result of a decline
in sales, customers, countries
and safety; negative environmental
and regions of operation).
Climate scenario analysis
The Company views climate scenario
PhosAgro assessed the impact
to bring about low-carbon
of climate-related risks
transition, putting in place
analysis as a tool to make its climate
and opportunities on its operations
mechanisms of a low-carbon
strategy resilient to uncertainties
under two climate change scenarios:
economy that will slow down
and risks related to climate change.
global warming of 2°С and 4°С.
physical climate-related impacts
In line with that, we adopted
The key features of the scenarios are:
going forward;
climate scenarios and determined
• 2°С scenario is expected to result
• 4°С scenario is expected to result
respective scenario parameters that
in stringent climate policy
in less stringent climate policy
are most probable and significant
measures that will increase
measures as compared to the 2°С
for the Company in the short,
market volatility (goods, services,
scenario, triggering faster physical
medium and long term.
finances, etc.). This is projected
climate-related changes.
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PhosAgro identified projected
changes in climate risks
and opportunities under
the adopted climate scenarios
based on risks, opportunities,
scenario parameters, and time
frames. In doing so, the Company
focused on its operations, strategy,
and financial planning.
Climate risk priority map
Processes to identify and assess climate change risks
are being integrated throughout the value chain –
from design, procurement and apatite-nepheline ore
mining to finished product delivery
Process description
The Company’s climate risk
management forms an integral
part of its comprehensive
risk management system
(RMS), with all its elements
embedded in PhosAgro’s
existing structure. The RMS relies
on the Company’s Risk Management
and Internal Control Policy and other
internal policies and procedures,
as well as the applicable Russian
and international standards.
R2
R3
R4
R1
R5
Emerging
Manageable
Relevant
Immaterial
Manageable
Manageable
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Key initiatives in 2022
Focus areas
Introduce HR actions to support
the implementation of PhosAgro’s
Climate Strategy, including additional
training to improve staff competence
and raise staff awareness in climate
change
Climate-related risk
and opportunities
R1, R2, O1
Description and results
Our employees took part in webinars dedicated
to sustainable development and corporate climate
responsibility.
Include climate metrics in incentive
schemes of employees
R2, O1
Establish a task group on reduction
of GHG emissions and negative effect
of climate change on the efficiency
of management and production
processes
R1, R2, R3, O1
Develop a set of technological
measures to mitigate the negative
impact of production processes
on climate
R1, R2
We have continued to develop climate KPIs; they
are planned to be aligned with the parameters
of investment projects aimed at minimising and
offsetting GHG emissions.
By implementing the Climate Agenda project we took
forward thoroughly researched and technically
feasible proposals to reduce the Company's
climate footprint, minimise risks and maximise
opportunities related to growing climate change
impacts (technology, equipment, energy generation,
operations, etc.).
Technical and technological initiatives to reduce
direct GHG emissions were developed and accepted
for implementation and are now pending approval
at a meeting on investment feasibility at Apaptit.
To, we engaged one of the global leaders among
consulting firms.
A plan of interaction with value chain participants
was developed and adopted for implementation
(company-customer and supplier-customer
interactions).
Climate impact matters and the risks
and opportunities arising from climate change
were integrated into trainings, matters disclosed
in the reports, data book, and considered by the Board
committee and Board of Directors, which helps
to embed this topic into PhosAgro's culture.
Immaterial
Low
Probability
Immaterial
Medium
Amenable
High
We identify, assess, and manage
up and down the value chain.
The assessment is done quarterly.
climate risks within our
Climate risk management process
Covered time horizon(s) – short-term,
comprehensive risk management
is baked in the company-wide risk
medium-term, long-term.
framework. Covered value
management processes.
chain stages – direct operations
Approve a comprehensive plan
of interaction with value chain
participants
Harmonise strategic documents
(the Company's Development
Strategy to 2025), financial planning
and other policies and procedures
with the low-carbon transition
strategy and plan
Arrange for identification,
assessment, management
and monitoring of climate-related
risks
Factor in climate change impacts
in industrial engineering projects
to build new facilities and upgrade
transport infrastructure
R1, R2, R3, R4, R5, O1, O2, O3
R1, R2, R3, R4, R5, O1, O2, O3
R1, R2, R3, R4, R5, O1, O2, O3
Climate change risks were integrated into PhosAgro’s
risk management framework.
R1, R2
At present, there is no need to proceed with this
initiative. Reference documents used in engineering
provide a sufficient margin of safety, with no factors
driving accelerated climate changes observed.
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Focus areas
Support R&D developments related
to the use of low-carbon energy
and low-carbon production
Explore options for GHG capture
and select the most efficient ones
to be employed by the Company
Climate-related risk
and opportunities
R3, R4, R5, O1
Introduce regular climate-related
reporting in accordance with Russian
and international standards
Introduce an automated system
to collect and process primary
climate data
R3, R4, O1
R3, R4, O1
Collaborate with international
organisations and join climate
initiatives
R4, O1
Description and results
In 2022, NIUIF developed, patented, tested and
prepared for state registration in 2023 several grades
of coated fertilizers with a low carbon footprint.
In 2021, the Russian Academy of Sciences, PhosAgro,
and the Vologda region signed a cooperation
agreement to monitor climate change and minimise
the environmental impact. The project envisages
efforts in low-carbon transition, including regional
monitoring of GHG emissions. Promising methods
of farming focused on emissions prevention
and carbon sequestration by soils will be developed
and implemented in Russia. New forests and fields
will be planted and created in the Vologda region
to capture and store carbon. Their capacity
is estimated at 0.7 mt of CO2 per year. We organised
a “pilot site” in a carbon farm in 2022.
Since 2020, the Company has been preparing climate
reports in line with the TCFD standards. GHG emission
reporting for 2021 was verified for the first time.
Introducing a software solution for automated
collection of input data and calculation of GHG
emissions (total volumes by site and product).
Guidelines for assessing products’ carbon footprint
were developed and validated by a reputable
international certification body.
The Company participates in Climate Ambition,
an initiative launched under the UN Global Compact;
teams up with Climate Governance Initiative Russia;
supports the TCFD; and takes part in task and expert
groups of government authorities and non-
governmental organisations.
Plans for 2023
Focus areas
Climate-related risk
and opportunities
Description, current status, and expected
outcomes
Implement a set of technological
measures to mitigate the negative
impact of production processes
on climate
R1, R2
R3, R4, R5, O1
R1, R2, O2
Prepare feasibility studies (business
projects) for innovative climate-
resilient products based on carbon
dioxide utilisation. Develop
production in high-potential areas
Reduce the negative impacts
of climate change on operational
processes such as disruptions
in transportation of products
and raw materials, increased
water consumption for production
needs, increased volume of waste
water, product dusting, failures
to use equipment in accordance
with operating instructions
and failures to create proper
workplace conditions.
In 2021–2022, technical and technological initiatives
to reduce direct GHG emissions were developed
as part of the PhosAgro Climate Agenda project.
In 2023, management decisions are expected
to be made on their implementation, including
the development of relevant business plans.
Diversifying production to facilitate expansion
into new markets and improve the climate-related
performance on the back of new products better
meeting consumer needs and having a positive
climate profile.
Mitigating climate change risks for the Group's
operating processes. Work is in progress to assess
the risks and identify actions needed to manage
them.
A detailed description of climate risks and opportunities, in 2022
remained virtually unchanged and is presented in the TCFD
report on the Company’s website
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of global anthropogenic
emissions, in order to keep
global temperature rise below
2°C by 2100.
PhosAgro’s climate metrics
are aligned with the goals
of the Climate Strategy approved
by its Board of Directors.
The Company is working
to expand and enhance
the quality of climate-related
measurements. Most metrics
are locked on targets which
are aligned with the goals
of the Climate Strategy and other
commitments of the Company.
The metrics are monitored
and reported annually
to stakeholders.
The Company’s primary focus
is on GHG emissions (carbon
dioxide CO2, methane CH4
and nitrous oxide N2O) in all
three Scopes (1, 2, and 3). We
calculate greenhouse gas
emissions in accordance
with the international guidelines:
•
2006 IPCC Guidelines
for National Greenhouse Gas
Inventories;
• The Greenhouse Gas Protocol:
Scope 2 Guidance;
• The Greenhouse Gas Protocol:
•
A Corporate Accounting
and Reporting Standard (Revised
Edition);
ISO 14064-1 – Specification
with Guidance at the Organisation
Level for Quantification
and Reporting of Greenhouse Gas
Emissions and Removals.
Calculations are based on global
warming projections of the IPCC
report “Climate Change 2021:
The Physical Science Basis”.
The Company's efforts include end-
to-end monitoring of raw data
(Scopes 1, 2 and 3) and analysis
of supply chain participants’ data
(Scopes 2 and 3).
The targets are set in line
with minimum qualitative
and quantitative criteria based
on RCP 2.6, a representative
concentration pathway for reduction
Direct (Scope 1) GHG emissions, СО2-eq.
GRI 305-1, 305-4, SASB RT-CH-110a.1 / EM-MM-110a.1
Assets
Gross emissions of the Kirovsk branch, kt
GHG emissions of the Kirovsk branch, kg per tonne of finished and semi-finished
products
Gross emissions of the Balakovo branch, kt
GHG emissions of the Balakovo branch, kg per tonne of finished and semi-finished
products
Gross emissions of the Volkhov branch, kt
GHG emissions of the Volkhov branch, kg per tonne of finished and semi-finished
products
Apatit (Vologda region), gross emissions, kt
GHG emissions of Apatit (Vologda region), kg per tonne of finished and semi-finished
products
Total gross emissions, kt
20201
655.7
56.3
225.3
36.9
155.6
250.7
20211
665.8
56.7
238.0
39.4
155.2
135.0
2022
690.9
57.7
236.6
41.5
191.5
71.8
3,820.0
3,716.7
3 790.0
247.0
227.7
229.1
4,856.5
4,775.8
4,909.0
Indirect (Scope 2) GHG emissions, СО2-eq.1GR
I 305-2, 305-4
GRI 305-2, GRI 305-4
Assets
Gross emissions of the Kirovsk branch, kt
GHG emissions of the Kirovsk branch, kg per tonne of finished and semi-finished
products
Gross emissions of the Balakovo branch, kt
GHG emissions of the Balakovo branch, kg per tonne of finished and semi-
finished products
Gross emissions of the Volkhov branch, kt
GHG emissions of the Volkhov branch, kg per tonne of finished and semi-finished
products
Apatit (Vologda region), gross emissions, kt
GHG emissions of Apatit (Vologda region), kg per tonne of finished and semi-
finished products
Total gross emissions, kt
Total GHG emissions, kg per tonne of finished and semi-finished products
Calculation of other indirect GHG emissions
2020
2021
2022
723.9
62.2
51.1
8.4
66.0
106.2
137.3
8.9
978.3
28.9
622.52
53.0
45.3
7.5
80.1
69.7
145.4
8.9
893.3
25.3
588.22
49.1
51.9
9.1
44.6
16.7
136.9
8.3
821.6
22.3
GRI 305-3
Category
GHG emissions, t of СО2-eq.
Share in total other indirect
emissions, %
2020
2021
2022
Purchased goods and services
3,118,660
1,963,324
2,425,375
Fuel- and energy-related activities not
included in Scope 1 or Scope 2
328,501
407,740
350,275
Processing of sold products
764,119
704,402
720,223
Use of sold products
9,075,575
9,035,283
9,768,958
2020
23.47
2.48
5.75
68.30
2021
16.21
3.37
5.82
74.60
2022
18.28
2.64
5.43
73.65
Total
13,286,855
12,110,749
13,264,831
100.00
100.00
100.00
Scope 3 greenhouse gas emissions
identified them to be the most
were calculated for the above
significant emission sources
categories after an expert review
for the Company.
Scope 3 GHG emissions, СО2-eq.
GRI 305-3, 305-4
Category
Total gross emissions of production assets, kt
Total GHG emissions of production assets, kg per tonne of finished and semi-
finished products
2020
13,286.9
392.7
2021
12,110.7
343.6
2022
13,264.8
359.8
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143.6
135.5
133.1
1 Greenhouse gas emissions were calculated in line with the Guidelines for Climate Impact Management of PJSC PhosAgro and other
1 Preparation of an inventory of greenhouse gas emissions as part of developing the Guidelines for Climate Impact Management
of PJSC PhosAgro and other Group Entities identified new sources of emissions, resulting in a recalculation of data for 2020–2021
for consistency.
Group Entities (using the IPCC methodology).
Energy indirect GHG emissions (Scope 2) are related to production of electricity and heat brought in from third parties to meet
the Company’s needs.
In 2022, we changed our approach to calculating Scope 2 GHG emissions related to electricity consumption. In 2020–2021,
the methodology relied on emission factors defined by the International Energy Agency (IEA), while starting 2022, we use the energy
indirect GHG emission factor for the First Synchronous Zone of the Russian Energy System defined by the Trading System
Administrator of the Wholesale Electricity and Capacity Market
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2
Including electricity from renewable energy sources.
METRICS AND TARGETSPERFORMANCE REVIEW
GRI 305-5
The reduction in emissions was
and, consequently, their total
We have chosen 2018 as the base
primarily driven by the Energy
carbon intensity. Excluding the
year for calculations because it was
Efficiency Programme and above all
production growth effect, Scope 3
the Company’s first GHG inventory
the heat and power plant project at
GHG emissions decreased by 427.4
year, and given the need to set GHG
the Volkhov branch.
reduction targets for all three scopes
kt vs 2018 thanks to the reduction of
emissions per unit of finished and
based on the available emission
For energy indirect (Scope 2)
semi-finished products (by 3%).
data. In 2018, GHG emissions were
emissions, the reduction was 7.8
as follows: direct GHG emissions
kg/t (or 25.9%) vs the 2018 level; the
The values of Scope 3 GHG emissions
(Scope 1) – 4,624.6 kt of CO2-eq.,
effect for total Scope 2 emissions
for 2020 and 2021 differ from the
indirect GHG emissions (Scope 2) –
excluding the production volume
data previously provided by the
924.1 kt of CO2-eq., and other
growth stood at 287 kt compared
Company in its CDP questionnaires
indirect GHG emissions (Scope 3) –
to the base year. The reduction
for respective periods. The main
11,413.8 kt of CO2-eq.
was achieved thanks to the green
reason for such changes are
electricity procured by the Kirovsk
adjustments made to the calculation
In 2022, Scope 1 GHG emissions
branch of Apatit, as well as energy
methodology following approval of
declined by 17.3 kg/t, or 11.5%, vs 2018.
efficiency initiatives.
the Guidelines for Climate Impact
In 2022, the reduction in total Scope
Management of PJSC PhosAgro and
1 GHG emissions thanks to lower
Total Scope 3 GHG emissions were
other Group Entities. Furthermore,
emissions per unit of finished and
up by 1,851 kt in 2022 vs 2018, or
the value for 2021 was adjusted due
semi-finished products excluding
by 16.2%, reflecting increased
to a technical error identified in the
the production volume growth
product shipments and higher
Use of Sold Products category as part
totalled 638.9 kt vs the base year.
consumption of input resources
of a verification process.
List and description of existing metrics introduced for the monitoring of performance under
the climate strategy
Metric
Gross global emissions (Scopes 1 and 2) per currency unit of total
revenue (GRI 305-4)1, t of CO2-eq. / USD mln
Gross global emissions (Scope 1 and 2) per FTE (GRI 305-4)3, t
of CO2-eq. / FTE
Electricity purchased per unit of finished and semi-finished
products, ‘000 kWh / t
Energy efficiency improvement costs, RUB mln
Share of feedstock suppliers providing necessary input data
on GHG emissions (Scope 3), %
20202
1,654.8
326.1
0.068
10,500.0
4.0
20212
993.1
309.4
0.066
17.4
2.7
2022
693.5
288.8
0.062
3,044.1
7.5
Energy efficiency
Our target
Reduce Scope 2 GHG emissions
to 794.7 kt of СО₂-eq.
by 2028
2022 highlights
Consumption of all types
of energy resources per
tonne of finished and semi-
finished products came in
at
2.33 GJ/t
In 2022, the consumption
of all types of energy
resources per tonne of
finished and semi-finished
products decreased
by 1.27%
to 2.33 GJ/t.
The reduction was underpinned
by the implementation of
the Company’s Strategy to
2025 and Energy Efficiency
Programme.
The decrease in per unit
energy consumption vs the
data disclosed in reports for
the previous years and recalculation
of values for comparable periods
were due to the application of a
new energy resource accounting
methodology.
Scientifically justified changes in the
accounting methodology that will
be described in more detail in this
section could be introduced thanks
to the implementation of the first
stage of the project to analyse and
upgrade the energy management
system.
These changes enabled PhosAgro
to enhance the transparency and
completeness of information
disclosed to stakeholders with
respect to the consumption of energy
resources (for example, natural gas)
typical for the Company and mineral
fertilizer industry. This unlocks new
opportunities for developing a more
nuanced understanding of all types
of energy resources consumed by the
Company. The Company will continue
delivering on the project, as it will
1 The indicator was calculated as the ratio of the sum of Scope 1 and 2 gross emissions under GRI 305-1 and GRI 305-2 respectively
to PhosAgro Group revenue according to consolidated financial statements converted into USD mln at monthly average
USD/RUB exchange rates.
2 Preparation of an inventory of greenhouse gas emissions as part of development of the Guidelines for Climate Impact Management
of PJSC PhosAgro and other Group Entities identified new sources of emissions, resulting in a recalculation of data for 2020–2021
for consistency.
3 The indicator was calculated as the ratio of the sum of Scope 1 and 2 gross emissions under GRI 305-1 and GRI 305-2 respectively
to the total number of full-time employees under GRI 2-7.
help PhosAgro achieve its energy
efficiency and GHG emission
minimisation goals.
The reporting year saw
PhosAgro’s self-sufficiency
in electricity increase by
2.6%
to
42.9%
The key driver in 2022 was the
completion of construction and
the ramp-up of the heat and
power plant in Volkhov to its
design capacity. Going forward,
the Company will continue
developing in-house power
generation.
We started testing a solar power
generation technology at the
Company’s facility in Balakovo
to assess the viability of a further
scale-up for the industrial
solution leveraged since 2021.
The tests will run until 3Q 2023.
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PERFORMANCE REVIEW
Strategy and management approach
GRI 3-3, 302-4
In 2022, PhosAgro continued
to follow the Climate Strategy
The Energy Efficiency and Energy Saving Policy sets out
approved by the Board of Directors,
the following key goals:
the Energy Efficiency and Energy
Saving Policy, and the Energy
Efficiency Programme,
which are tightly integrated
into the Company’s Strategy
to 2025.
continuously improving
energy efficiency;
using energy resources
in a sustainable
and efficient manner;
streamlining the energy
management process
for all types of operating
activities.
The Company pays particular attention to energy efficiency risks.
1
A sufficient and reliable
energy supply is a material
aspect and major concern
2
Risk of Scope 2 GHG
emissions to be included
in carbon regulation
for us. We thoroughly
explore all opportunities
to transition to renewable
in the EU and other
jurisdictions. The Company’s
energy efficiency
energy: among other things,
directly affects Scope 2
in 2022, we purchased
electricity generated
by hydroelectric power
GHG emissions, which
poses a potential risk,
for example after full-
plants on the Kola Peninsula.
scale implementation
of carbon border adjustment
mechanisms.
3
Market availability
of electricity from
renewable energy sources.
The Company continuously
monitors the market
to ensure a sufficient supply
of electricity from renewable
energy sources.
The initiatives set out
in the Energy Efficiency
Programme are aimed
at improving energy
efficiency, developing
energy management at each
production site, and achieving
strategic objectives
in the following focus areas:
in-house power generation
through utilisation of sulphuric
acid production steam; ;
In 2022, we implemented
comprehensive energy
efficiency projects at all of our
increase in the share
of renewable energy sources;
sites.
introduction of technologies
aimed at loss reduction
and energy savings (e.g. LED
lighting, frequency converters,
less heat energy losses).
Key initiatives in 2022
PROJECT
Balakovo
Installation of frequency
converters on chemically treated
water pumps
Balakovo
Upgrade of the lighting system
to LED at wet-process phosphoric
acid sections 3 and 4
Volkhov
Construction of a heat and power
plant with a 34 MW high-
efficiency electric turbine
and a water treatment system
at Apatit’s Volkhov branch
Kirovsk
Upgrade of drum drier sections,
with thermal insulation replaced,
stage 1 (four drum driers out
of seven)
Cherepovets
Upgrade of the lighting system
to LED at the pyrite cinder storage
facility
Initiatives planned for 2023
PROJECT
Kirovsk
Upgrade of the Rasvumchorrsky
mine’s compressor station
Kirovsk
Upgrade of the lighting system
to LED at ANBP-2 of Apatit’s
Kirovsk branch
Kirovsk
Upgrade of drum drier sections,
with thermal insulation replaced,
stage 2 (three drum driers out
of seven)
Cherepovets
Optimisation of the heat supply
system at the production site
Cherepovets
Use of circulating water to cool
feed water pumps
DESCRIPTION AND RESULTS
EXPENDITURES, RUB MLN COMPLETION
Reduced electricity
consumption
Reduced electricity
consumption
1.8
2.0
Replacement of third-party
electricity supply with in-house
generation through utilisation
of sulphuric acid production
steam
3,018.0
Reduced heat losses from drum
drier surface and lower per unit
consumption of fuel oil
7.0
Reduced electricity
consumption
15.3
4Q
4Q
2Q
3Q
4Q
DESCRIPTION AND RESULTS
EXPENDITURES, RUB MLN COMPLETION
Lower cost of compressed
air production as a result
of reductions in per unit
electricity consumption
A 4.8 mln kWh reduction
in annual electricity
consumption, lower
maintenance and repair costs
Reduced heat losses and per
unit consumption of fuel oil
in concentrate drying
Ca. 2.5 mln kWh of annual
reduction in electricity
consumption
Reduced river water
consumption with no discharges
into the sewer system
105.7
48.9
7.0
8.0
10.6
2Q
2Q
4Q
4Q
4Q
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PERFORMANCE REVIEW
In 2022, the volume of carbon-
free electricity used
in the production of phosphate
rock at the Kirovsk branch grew
to 300 mln kWh. As a result,
green electricity from
hydroelectric power plants
supplied under an agreement
with TGC-1 covers 17.8%
of the plant’s output
The energy efficiency
metrics are used to monitor
the Company’s progress
towards its energy efficiency
improvement target and are set
forth in PhosAgro’s Energy
Efficiency Programme and Action
Plan, which helps keep track
of electricity generation
and consumption, energy
intensity, etc.
The energy efficiency metrics
are based on PhosAgro’s
raw data and are calculated
in accordance with the approved
statistical methodologies.
The Company prepares its energy
efficiency reports in accordance
with the GRI 302: Energy 2016
standard.
In 2022, the Company’s production
facilities were 42.9% self-sufficient
in terms of electricity needs,
which is 2.6% more than in 2021.
In absolute terms, the electricity
generated by PhosAgro went up
by 150 mln kWh year-on-year,
driven by the commissioning
of new power generating facilities
at the Volkhov branch. Total
electricity consumption grew
by 115 mln kWh year-on-year, which
is attributable to the commissioning
of new production facilities
at the Volkhov branch. In 2023,
the share of electricity generated
in-house is likely to further increase
due to the ramp-up to design
capacity of the heat and power plant
in Volkhov.
PhosAgro’s energy consumption
GRI 302-1, 302-3, SASB RT-CH-130a.1 / EM-MM-130a.1
Item
ELECTRICITY
Purchased electricity, including
Purchased from renewable sources
Purchased per unit of finished and semi-
finished products
HEAT ENERGY
Purchased (in hot water)
Supplied (in hot water)
Exhaust steam
NATURAL GAS
As feedstock for ammonia production
As fuel, etc.
Total
Consumption per unit of finished and semi-
finished products2
Unit
Total for production facilities
2020
2021
2022
mln kWh
mln kWh
‘000 kWh / t
'000 Gcal
'000 Gcal
'000 Gcal
mln m3
mln m3
mln m3
'000 m3 / t
2,300.77
-
0.068
374.54
200.78
8,091.16
1,953.86
746.02
2,699.88
0.022
2,326.63
299.00
0.066
438.22
161.23
8,538.81
1,926.10
730.12
2,656.22
0.021
2,303.26
300.00
0.062
352.07
187.49
8,923.70
1,968.06
771.72
2,739.781
0.021
Item
LNG
Consumption
FUEL OIL
Consumption
HEATING OIL
Consumption
DIESEL FUEL
Consumption
PhosAgro Group's energy consumption, GJ3
GRI 302-1, 302-3
Item
Internal use of electricity
Internal use of heat energy
Internal consumption of natural gas (excluding
gas consumed as feedstock during production
processes)
Internal consumption of LNG
Internal consumption of fuel oil
Internal consumption of heating oil4
Internal consumption of diesel fuel
Total internal consumption
Total energy consumption per unit of finished
and semi-finished products, GJ/t5
Unit
Total for production facilities
2020
2021
2022
t
t
t
t
2,273.4
2,951.57
2,380.30
146,785.8
151,291.8
152,895.5
725.50
779.4
766.4
53,054.25
55,695.87
58,276.73
2020
8,282,776
34,603,584
29,094,927
123,673
6,473,253
33,518
2,419,273
81,031,004
2.40
2021
8,375,878
36,910,017
28,474,611
160,565
6,671,968
36,008
2,539,731
2022
8,291,723
38,050,823
30,097,257
129,488
6,742,692
35,407
2,657,419
83,168,778
86,004,809
2.36
2.33
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1 Calculations of total energy consumption include only gas consumed as fuel, whereas gas consumed as feedstock for ammonia
production is provided for illustrative purposes and excluded from further calculations of total energy consumption (in GJ), as it is not
used as an energy resource.
2 Starting 2022, the Company excludes natural gas used as feedstock for ammonia production from the calculation of per unit energy
consumption. Based on the principle of comparability, the data for 2020–2021 was recalculated using the new methodology..
3 To convert energy consumption values into joules, the coefficients on the Berkeley Institute (USA) website were used (https://w.astro.
berkeley.edu/~wright/fuel_energy.html).
4 Starting 2022, the Company calculates consumption of heating oil (in J) using a ratio of 46.2, whereas previously it used a ratio of 44.
Based on the principle of comparability, the data for 2020–2021 was recalculated using the new methodology.
5 Starting 2022, the Company calculates total and per unit energy consumption excluding natural gas used as feedstock for ammonia
production, as well as heat and electricity produced by the Company for its own consumption. Based on the principle of comparability,
the data for 2020–2021 was recalculated using the new methodology.
212
213
METRICS AND HIGHLIGHTSPERFORMANCE REVIEW
In 2022, the Company initiated
with ISO 50001:2018. Based
of energy (electricity, heat,
a project to define a set of metrics
on the work completed to date,
natural gas, fuel oil, petrol, LNG,
in energy consumption and energy
the Company has introduced certain
and heating oil). The Company
efficiency to benchmark
amendments to its disclosure,
uses natural gas both as fuel
its performance against leading
including in terms of natural gas
and as feedstock in ammonia
peers in the mining, chemical,
consumption.
and fertilizer production industries.
production. In ammonia synthesis
processes, part of the natural gas
The next step, which is also
The project showed that
is sent to the reactor to be used
underway in 2022–2023, is detailed
in its reporting, the Company
as chemical feedstock to produce
analysis of the Company’s energy
is guided by international standards,
hydrogen; however, natural gas
management system and review
which require aggregation of data
is also used for energy needs as fuel
of gaps in terms of compliance
based on total consumption
(see the chart below).
Waste
Target
2022 highlights
Increase in the share of recycled
and decontaminated hazard
class 1–4 waste
to 40%
by 2025
38.8%
of hazard class 1–4 waste recycled
and decontaminated
Use of natural gas in ammonia synthesis
Boiler furnace
Air
process needs
Flue gases
Natural gas
Boiler furnace
energy needs
Gas mixture
Ammonia
Heat
Reactor
Synthesis converter
As a result, for its 2022 reporting,
The change in the methodology
a review to make sure the changes
the Company decided to split
caused us to recalculate our energy
in natural gas presentation
the total amount of natural gas
consumptions values for the previous
approach does not compromise
previously used in calculations
periods on a retrospective basis.
our calculations of GHG emissions
of total and per unit energy
in ammonia production.
consumption, so that GRI 302
Still, given the link between data
reporting does not include natural
of GRI standards and the use
gas that acts as chemical feedstock
of energy consumption data in GHG
in ammonia synthesis.
emission calculations, we carried out
Strategy and management
approach
GRI 3-3, 306-1
The management system covers:
consumer properties and going
• an inventory of resources that
to waste;
are used to manufacture products
•
identification of activities
and become waste afterwards;
and processes that generate
PhosAgro’s Development Strategy
• data on the amount of waste
significant amounts of waste.
to 2025 stipulates an increase
generated from our own
in the share of recycled hazard class
operations, including future waste
PhosAgro’s waste management
1–4 waste to 40%.
in the form of products or their
is monitored on a regular basis
part provided to customers;
and discussed by the Strategy
Having developed a system
• waste characteristics;
and Sustainable Development
for accumulating and analysing
• properties that limit or prevent
Committee before being
data on production
the recycling (recovery)
communicated to the Board
and consumption waste from
of the material or product or limit
of Directors.
our operations, we are now
its useful life;
implementing a range of projects
• continuous monitoring of
aimed at reducing waste
generation and increasing
the share of recycled waste.
known and potential negative
characteristics of certain materials
to prevent them from losing their
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PERFORMANCE REVIEW
Key initiatives in 2022
GRI 306-2
In 2021, we rolled out a Company-wide project to reduce the accumulation
of phosphogypsum at dump sites by promoting it in various areas
In 2022, a decision was made
to go ahead with an investment
project for the
Balakovo branch of Apatit.
The unit is designed to process
by-products of wet-process
phosphoric acid – concentrated
fluosilicate acid and dihydrate
phosphogypsum – to produce
a solution of ammonium
sulphate and technical calcium
fluoride.
The key process stages
are as follows: fluosilicate acid
is neutralised by ammonia
liquor with dihydrate
phosphogypsum. With an excess
of phosphogypsum, the reaction
results in calcium fluoride, silica
gel, and a solution of ammonium
sulphate. The resulting pulp
is then filtered, technical-grade
calcium fluoride is washed
with water to remove ammonia
sulphate and then sent to open
air storage, and ammonia
sulphate solution is neutralised
with sulphuric acid to pH=4.5–5
and sent to the phosphate
fertilizers unit to make
granulated ammonium sulphate.
Enhanced ore
processing
mechanisms
PhosAgro and the Kola
Science Centre
of the Russian Academy
of Sciences have signed
a long-term cooperation
agreement to implement
a project for improving
the processing of hard-to-
process apatite-nepheline
ores. The agreement
prioritises joint projects
focused on novel production
technologies.
One of the outcomes
of the cooperation
with the Kola Science
Centre is the resolution
to set up a joint research
centre to study key
industrial ores, identify
optimal mineral liberation
and selective flotation modes,
conduct technological
and mineralogical 3D
mapping of ore reserves,
as well as select and develop
efficient and eco-friendly
flotation reagents.
These benefits include:
reduction in litter moisture
content
to 13%
Reduction in levels
of ammonia released
into the air of poultry
houses (day 28–35)
by 6–8%
The use of phosphogypsum
helps alter quality indicators
of poultry litter:
• an 8–11% increase in the level
of nitrogen in litter;
• a 2–3x rise in the level
of calcium in litter
For more information about
the project, see the Research
and Education section
on page 125.
Promotion of phosphogypsum
In April 2022, PhosAgro launched
project to sell phosphogypsum
as a commercial product
in seven areas of application:
• ameliorant for farming;
• ground for road surface
•
•
•
•
•
dressing and soil
reinforcement;
litter in poultry and livestock
farming;
reduction in soil salinity
and contamination in urban
areas;
recultivation of unauthorised
landfills and lands
contaminated with oil
products;
raw material for the cement
industry;
raw material for construction
materials (gypsum blocks,
construction blocks,
and construction mixtures)..
For this project, PhosAgro Group
created a sales unit focused
on phosphogypsum and tasked
with R&D in each of the areas
of its application, obtaining
regulatory and technical
documents, and promotion
and sales of phosphogypsum
accordingly.
Our project to promote
phosphogypsum as a chemical
ameliorant agent in agriculture
first saw light in February 2021.
Its aim is to reduce the accumulation
of phosphogypsum at dump
sites across our production sites
by promoting its agricultural use
on saline soils as an ameliorant
and source of sulphur, phosphorus
and micronutrients.
In 2021–2022, over 50 trials
were conducted to apply
phosphogypsum in agriculture
as an ameliorant for acidic, neutral,
alkali and sodic soils. Based
on the trials, extra yield averaged
between 15% and 35% depending
on the crop. Aside from better
yields, all commercial products also
demonstrated a reliable increase
in quality indicators.
As part of the project, PhosAgro
established a preparation
and loading hub for bulk
phosphogypsum and remodelled
a railway to ensure its supply
to farmers in other regions.
In 2022, we were able to ship
phosphogypsum in gondola
cars and make deliveries
to the Moscow, Tambov, Smolensk,
Astrakhan and Volgograd regions
and the Republic of Tatarstan.
Experiments were conducted
to use phosphogypsum as poultry
litter in floor housing of broilers.
The results showed benefits of using
phosphogypsum in the amount
of 10–30% of the litter volume.
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PERFORMANCE REVIEW
SASB RT-CH-150a.1
Share of recycled
and decontaminated hazard
class 1–4 waste1, %
Target
2025
2022
2021
2010
40.0
38.8
39.1
37.6
The reporting year saw a decline
in the share of recycled
and decontaminated hazard class
1–4 waste following a slight change
in the ratio of recycled waste
to waste disposed of, generated
by an increased volume of repairs
and cleaning of process equipment.
Waste generation by hazard class, t
GRI 306-3, RT-CH-410b.1
Waste hazard class
1
2
3
4
5
Total
2020
6.48
7.61
1,070.64
180,439.54
132,492,537.10
132,674,061.36
2021
5.63
3.86
1,698.52
192,698.46
132,227,604.70
132,422,011.17
2022 (actual)
4.22
0.39
1,436.71
195,057.45
120,229,530.98
120,426,029.77
The reduction in class 5 waste generation was due to increased use of overburden as a backfilling material at the Kirovsk
branch.
Waste by type and disposal method, t1
GRI 306-4, GRI 306-5
Disposal method
2020
2021
2022
PhosAgro Group's waste reused internally
21,877,032.2
19,203,406.7
27,753,191.6
Hazardous waste
Non-hazardous waste
Total waste landfilled
Hazardous waste
Non-hazardous waste
Including landfilled at the Company’s waste disposal
facilities
Hazardous waste
Non-hazardous waste
Third-party recycled
Hazardous waste
Non-hazardous waste
Third-party decontaminated
Hazardous waste
Non-hazardous waste
Third-party processed
Hazardous waste
Non-hazardous waste
51,632.9
74,266.9
74,456.8
21,825,399.3
19,129,139.8
27,678,734.8
110,776,483.1
112,392,381.5
93,400,262.0
113,597.1
119,050.2
120,688.6
110,662,885.9
112,273,331.3
93,279,573.4
110,771,883.1
112,386,304.7
93,390,463.8
109,096.9
113,463.9
110,976.1
110,662,786.2
112,272,840.8
93,279,487.7
52,377.7
16,402.3
35,975.4
262.4
262.4
0
1,590.9
6.4
1,584.5
72,278.0
1,432.2
70,845.8
332.5
332.5
0
2,756.7
2.2
2,754.5
63,040.9
1,449.9
61,591.0
299.8
263.1
36.7
2,880.6
45.1
2,835.5
Disposal of beneficiation waste and overburden at Apatit’s Kirovsk branch, t
SASB EM-MM-150a.1, EM-MM-150a.2
Apatite-nepheline ore processing
waste (tailings)
Reused
Landfilled at waste disposal facilities
2020
2021
2022
2020
2021
2022
12,015,508.0
12,535,665.7
13,065,273.3
12,947,652.0
13,483,863.3
12,865,355.7
Rocks and overburden mix
6,625,514.0
3,360,586.0
11,276,148.0
89,454,699.0
90,494,219.0 72,281,414.0
Waste generation, t per tonne of finished and semi-finished products
Production site
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
2020
10.4
0.9
0.031
0.4
3.9
2021
10.3
0.9
0.003
0.4
3.8
Waste generation (hazard class 1–4), kg per tonne of finished and semi-finished products
Production site
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
2020
0.3
16.7
27.0
3.8
5.4
2021
0.5
21.3
0.6
3.6
5.5
2022
9.1
0.9
0.001
0.4
3.3
2022
0.8
21.1
0.5
4.0
5.3
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1 The Group specific disclosure was calculated as ratio of class 1–4 waste recycled and decontaminated to the total volume of class
1–4 waste.
1 Hazardous means hazard class 1–4 waste; non-hazardous means hazard class 5 waste.
METRICS AND HIGHLIGHTSPERFORMANCE REVIEW
Air
Our targets
2022 highlights
23.7%
reduction in emission
intensity by 2025 vs
2018 to 0.8 kg per tonne
of products and semi-
finished products
The 2025 target to reduce GHG
emissions was achieved.
Pollutant emissions, kg
per tonne of products and
semi-finished products
0.793
down ~1%
vs 2021
RUB3,916 mln
invested throughout
the duration of the Clean
Air Initiative, including
RUB 315 mln in 2022
Strategy and management
approach
GRI 3-3
reduce its environmental
the Company implemented
impact, PhosAgro is running
a number of projects that helped
a programme to re-equip
reduce emissions by 20% in 2022
production facilities and cut
vs 2017, despite an annual rise
PhosAgro has developed
pollutant emissions.
in production output and launch
and now maintains an emissions
of new capacities.
management process that includes
PhosAgro takes part
assessment of planned activities,
in the government’s Clean
Air quality in sanitary protection
discussion of relevant matters
Air initiative, which aims
areas near the Company’s
with a wide range of stakeholders,
to drastically reduce air pollution
production sites complies
as well as monitoring and disclosing
in major industrial cities across
with applicable hygienic
pollutant emissions. To effectively
Russia. As part of the initiative,
requirements.
Key initiatives in 2022
Apatit’s Cherepovets site
implemented four out of five
planned activities as part
of the Clean Air initiative.
Activities
Upgrade of the SK-600/3 sulphuric
acid plant
Deployment of new tailing gas pre-
heating equipment for the UKL-7
plant
Upgrade of technological system
No. 3, block 2.70 at the mineral
fertilizer production site
Technical upgrade of the low-
capacity absorption unit, blocks
7.00 and 7.01 at the mineral fertilizer
production site
Catalyst replacement at contact
process units of the SK-600/1
and SK-600/2 technological systems
Status
completed
completed
Environmental
efficiency, t
Year
Actual expenditures,
RUB mln
892
105
2018–2019
2,733.225
2019
10.975
completed
62.3
2020
776.62
completed
402.6
2021–2022
321.84
in progress
665 t reduction
achieved in sulphur
dioxide emissions
(partial catalyst
replacement
at SK-600/2
and SK-600/1)
2021–2024
125.58
PROJECTS IN ADDITION TO THE COMPREHENSIVE PLAN’S ACTIVITIES
Unit to recover ammonia from
residual and synthesis gases
of the first and second ammonia
production lines
Upgrade of the process to return
synthesis and purge gas to the fuel
gas system without sending
ammonia-containing gases
to burners of the steam superheater
at the first ammonia production line
Design and expert
reviews
(implementation
scheduled until
end of 2024)
implemented
268
2022–2025
1.747
effect to be determined
in 2023
2022
5.594
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PERFORMANCE REVIEW
At the Volkhov branch,
the key activities of 2021–2022
fertilizers unit, along with a revamp
• chemical stabilisation for dusty
of gas recovery equipment.
surfaces on service roads of tailing
to reduce the negative impact
The impact will be assessed in 2023.
dumps:
on the environment, including
air, were implemented as part
of an investment project to develop
the Volkhov site: technical solutions
On an annual basis, Apatit’s Kirovsk
branch runs activities to minimise
dust emissions from tailing dumps
• – at ANBP-2 across 141 ha,
• – at ANBP-3 across 50.7 ha;
• biological stabilisation using
hydroseeding for dusty surfaces
to reduce per unit emissions
of beneficiation facilities. In 2022,
of dam slopes and beach area of
and concentrations of pollutants
the following work was completed:
tailing dumps:
at the sanitary protection zone
• chemical stabilisation using
• – at ANBP-2 across 3.19 ha,
boundaries near residential areas
binding agents (PSKh-18
• – at ANBP-3 across 33.597 ha;
were provided for back at the stages
and DUSTBIND) for dusty surfaces
of new construction and upgrades.
in the beach area of tailing dumps:
• search for an optimal anti-dusting
The considerable reduction in per
• – at ANBP-2 across 631.1 ha,
agent, with pilot tests held
unit emissions confirms that we have
• – at ANBP-3 across 410 ha;
for nine new samples.
chosen the right approach.
In 2022, the Balakovo branch
completed the second stage
• chemical stabilisation using
binding agents (bitumen
emulsion) for dusty surfaces in the
of technical upgrade at technological
beach area of tailing dumps:
systems 5 and 6 of the phosphate
• – at ANBP-2 across 2.6 ha;
Pollutant emissions, kg per
tonne of finished and semi-
finished products1
Target
2025
2022
2021
2020
0.800
0.793
0.801
0.892
1 The Group specific disclosure was calculated as the ratio of pollutant emission to the output of products
and semi-finished products.
GRI 305-7, SASB RT-CH-120a.1 / EM-MM-120a.1
NOx, SOx and other significant air emissions, t
Pollutants
TOTAL
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
SOLIDS
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
SULPHUR DIOXIDE
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
CARBON MONOXIDE
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
NITROGEN OXIDES (NOX AS NO2)
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
HYDROCARBONS (W/O VOCS)
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
VOLATILE ORGANIC COMPOUNDS (VOCS)
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
OTHER GASEOUS AND LIQUID POLLUTANTS
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
2020
2021
2022
10,003.4
7,286.2
1,068.9
11,830.7
30,189.0
5,148.6
429.5
461.7
917.3
6,957.1
3,104.0
4,432.1
180.8
3,367.2
11,084.0
711.1
870.0
92.4
1,573.5
3,247.0
1,012.2
746.9
283.1
2,540.0
4,582.1
8.0
2.6
0.0
38.1
48.7
19.0
340.1
4.6
2.2
365.8
0.5
465.1
46.2
3,392.6
3,904.3
10,120.3
6,876.0
1,165.8
10,065.3
28,227.4
4,939.8
425.8
528.6
1.055.1
6,949.3
3,308.2
3,975.4
206.7
3,029.2
10,519.5
777.0
933.1
115.3
1,274.8
3,100.2
1,067.8
760.7
207.6
2,401.8
4,437.9
8.0
2.6
0
38.1
48.7
19.0
340.7
5.0
2.0
366.7
0.5
437.7
102.6
2,264.3
2,805.1
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10,141.3
7,323.8
1,575.0
10,193.5
29,233.6
5,011.1
497.1
234.9
771.7
6,514.8
3,373.4
4,227.2
320.5
3,770.9
11,692.0
798.1
949.4
106.3
1,324.2
3,178.0
931.2
765.1
330.7
2,491.9
4,518.9
8.0
2.6
0
38.1
48.7
19.0
340.0
6.2
2.8
368.0
0.5
542.4
576.4
1,793.9
2,913.2
METRICS AND HIGHLIGHTSPERFORMANCE REVIEW
Water
RT-CH-140a.2 / EM-MM-140a.2
Our targets
Reduce water withdrawal
by 29.3%
by 2025 vs 2018 to 5.16 m3
per tonne of products and
semi-finished products
Reduce the discharge of
waste water into surface water
bodies
by
31.1%
by 2025 vs 2018 to 4.16 m3
per tonne of products and
semi-finished products
Strategy and management approach
GRI 3-3, 303-1
Water is an essential resource
all PhosAgro production sites
for the Company. There is no
are located in areas with low
shortage of water sources
or moderate fresh water scarcity.
in the regions where our facilities
However, access to clean water
are based. According to the Water
is a major issue facing the world.
Risk Atlas and Water Risk Filter,
2022 highlights
Water withdrawal1
6.42 m³/t
down 0.93%
vs 2021
Waste water discharge
into surface waters2
5.27 m³/t
down 0.75%
vs 2021
Risks and opportunities
Going forward, we plan to improve
To mitigate these risks, in 2020
SASB RT-CH-140a.3
The main risks related to water
consumption are water quality
deterioration in water bodies
across PhosAgro’s footprint
and the Company’s non-
compliance with statutory
requirements for limiting
negative impact on water
bodies.
PhosAgro has implemented closed-
waste water management
we adopted and started
by focusing on maximum reuse
implementing a Water Strategy that
of water through closed-loop
seeks to reduce water consumption
water recycling systems and better
and discharge and improve waste
treatment of effluents discharged
water quality.
into water bodies in addition
to ongoing monitoring of water
The strategy is implemented at all
bodies in the regions of operation.
PhosAgro sites, and we regularly
The regulatory risks include
whether they are sufficient
tightened waste water quality
and effective enough to achieve our
requirements, as well as restrictions
targets.
analyse these measures to determine
loop water recycling systems
on the amount of water consumed
at its sites in Volkhov and Balakovo
and discharged into both water
To identify the impact
to reuse water in production
processes.
bodies and centralised waste water
systems. There were no incidents
of non-compliance associated
with water quality permits,
standards, and regulations.
of the Company's operations
on water bodies, we monitor these
bodies in accordance with adopted
programmes by engaging our own
certified laboratory and external
certified laboratories.
1 The Group specific disclosure was calculated as the ratio of total water withdrawn to the total output of
products and semi-finished products.
2 The Group specific disclosure was calculated as the ratio of the volume of waste water discharged into
surface water bodies, including mine and pit waters, to the total output of products and semi-finished
products.
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PERFORMANCE REVIEW
Key initiatives in 2022
At the Cherepovets site, we completed the first stage of the water
use optimisation programme as part of our production upgrade
initiative for 2022–2025
Phosphate facility
1.
Engineering documentation
developed for the project
named The Technical
Upgrade of a Water
Treatment Station in a Utility
and Drinking Water Supply
System with Arrangements
Made to Dehydrate Sludge
Water at the Phosphate
Facility of Apatit.
2. Pilot tests completed
and core technical solutions
developed for the technical
upgrade of an acidic
waste water treatment
station, with the drafting
Nitrogen facility:
1.
Work started to design
a saline waste water
treatment unit.
The designer of the saline
waste water facilities
is NIUIF.
at the Phosphate Facility
of Apatit. The documentation
is expected to be completed
in 1Q 2023.
5. Implementation
of the Water Use
Optimisation Programme
at the Cherepovets
site of Apatit as part
of the production upgrade
initiative for 2022–2025.
of engineering documentation
underway.
3. A base case design developed for
the project named A Waste Water
Treatment Unit with a Source
Water Capacity of at Least 400
m3/h at the Phosphate Facility
of Apatit. The general designer
responsible for the facility’s
design (construction, networks,
auxiliary systems) is NIUIF.
4. The development of engineering
documentation is underway
for the project named A Saline
Waste Water Sewerage
2. As part of the Electricity
at a heat and power
Generation Based on the System
plant and chemical water
of Chemical Water Treatment
treatment concentrate. This
(Heat and Power Plant) initiative,
led to the reduction of waste
the Volkhov branch successfully
water discharged into sanitary
piloted the reuse of effluents
protection zones by 135 tonnes
resulting from boiler blowdown
per hour.
Water withdrawal, m3 per
tonne of products and semi-
finished products1
Discharge of waste water
into surface water bodies,
m3 per tonne of products
and semi-finished products2
Target
2025
2022
2021
2020
5.16
6.42
6.48
6.70
Target
2025
2022
2021
2020
4.16
5.27
5.31
5.57
Total water withdrawal by source, ‘000 m3
GRI 303-3, SASB RT-CH-140a.1 / EM-MM-140a.1
Indicators
SURFACE WATER
Total water withdrawal from surface sources, including:
process water
drinking water (internal use)
drinking water (for supplies to third parties)
mining and pit waters
drainage water
rainwater
GROUND WATER
Water withdrawal from ground-water sources
Total water received from third-party suppliers, including:
process water received from suppliers
water from municipal supply (internal use)
water from municipal supply (for supplies to third parties)
waste water from other waste water discharge systems
Total
2020
2021
2022
170,862
59,081
995
399
104,475
3,312
2,600
2,832
52,898
28,443
8,138
17
16,300
226,592
175,943
60,747
1,193
557
107,633
3,170
2,642
2,912
49,600
28,373
9,126
47
12,054
228,456
182,276
62,164
1,187
632
111,751
2,401
4,142
3,357
51,240
28,644
8,400
32
14,164
236,873
Measurement of total and specific water withdrawal including and excluding mining and pit waters
Indicators
2020
2021
2022
Total water withdrawal, including mining and pit waters, ‘000 m3
226,592
228,456
236,873
Specific water withdrawal, including mining and pit waters,2 m3 per tonne
Total water withdrawal, excluding mining and pit waters, ‘000 m3
Specific water withdrawal from surface sources, excluding mining and pit waters,3
m3 per tonne
6.70
122,117
3.61
6.48
120,823
3.43
6.42
125,122
3.39
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1 The Group specific disclosure was calculated as the ratio of total water withdrawn, including mining and pit waters, to the total output
of products and semi-finished products.
2 The Group specific disclosure was calculated as the ratio of the total volume of waste water discharged into surface waters to the total
output of finished and semi-finished products.
3 The Group specific disclosure was calculated as the ratio of total water withdrawn, excluding mining and pit waters, to the total output
of products and semi-finished products.
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METRICS AND HIGHLIGHTSPERFORMANCE REVIEW
Water consumption includes both
and the size of the catchment
mining and pit waters. The volume
area. It tends to increase
of mining and pit waters depends
with the development of new
on the intensity of precipitation
horizons.
Total water discharge by source, ‘000 m3
GRI 303-4
Indicators
WATER DISCHARGE INTO SURFACE WATER BODIES
Total water discharge into surface water bodies, including:
mining and pit waters
drainage water
waste water from other waste water discharge systems
SUPPLIES TO THIRD PARTIES
Total water supplies to third parties including:
waste water to the public water discharge system (after use)
waste water to the public water discharge system (unused)
water supplies to third parties from surface sources
water supplies to third parties from municipal sources
2020
2021
188,455
104,475
3,312
15,901
4,147
3,314
399
417
17
187,012
107,633
3,171
11,673
4,222
3,238
381
557
47
Total
2022
194,447
111,751
2,401
13,782
4,406
3,219
523
632
32
Total
192,602
191,234
198,853
Measurement of total and specific waste water discharge including and excluding mining and pit
waters
Indicators
Total water discharge into surface water bodies, including mining
and pit waters, ‘000 m3
Specific water discharge into surface water bodies, including mining
and pit waters,1 m3 per tonne
Total water discharge into surface water bodies, excluding mining
and pit waters, ‘000 m3
Specific water discharge into surface water bodies, excluding mining
and pit waters,2 m3 per tonne
2020
188,455
2021
187,012
2022
194,447
5.57
5.31
5.27
83,980
79,379
82,696
Treated effluents (reused in the production cycle)
Asset
Total, mln m3
Share of reused water, %
Water consumption, ‘000 m3
GRI 303-5
Indicator
Total water withdrawal (all sources)
Total water discharge (all sources)
Water consumption
Water discharge in 2022, mln m3
GRI 303-4
Indicator
2020
240.4
88
2020
226,592
192,602
33,990
WASTE WATER DISCHARGE INTO SURFACE WATER BODIES
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
2020
173.7
0
0
14.8
188.5
DISCHARGED WITHOUT TREATMENT (% OF TOTAL WATER DISCHARGE)
Kirovsk branch
Balakovo branch
Volkhov branch
Apatit (Vologda region)
Total
0
0
0
0
0
2021
244.7
87
2021
228,456
191,234
37,222
2021
173.9
0
0
13.1
187.0
0
0
0
0
0
2.48
2.25
2.24
Waste water discharge at Apatit
KIROVSK BRANCH
Discharge 1
Discharge from ANBP-3
Discharge 2
Discharge from ANBP-2
Discharge 3
Rainwater at ANBP-2
Discharge 4
Mining waters of the combined Kirovsky, Central
and Rasvumchorrsky mines
Receiving water body
Zhemchuzhnaya River
Belaya River
Belaya River
Lake Bolshoi Vudyavr
Discharge 5
Mining waters of the Koashva and Njorkpahk open pits
Lake Kitchepahk
Discharges 6, 9
Waters of water-lowering wells of the Vostochny mine
Vuonnemyok River
APATIT (VOLOGDA REGION)
Effluents from the phosphate facility
Effluents from the nitrogen facility
Rybinsk Reservoir
Rybinsk Reservoir
1 The Group specific disclosure was calculated as the ratio of waste water discharged into surface water bodies, including mining and pit
waters, to the total output of products and semi-finished products.
2 The Group specific disclosure was calculated as the ratio of waste water discharged into surface water bodies, excluding mining and pit
waters, to the total output of products and semi-finished products.
2022
241.7
86
Total
2022
236,873
198,853
38,020
2022
180.0
0
0
14.4
194.4
0
0
0
0
0
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PERFORMANCE REVIEW
Biodiversity
Target
2022 highlights
Preservation of biodiversity
in regions of PhosAgro
Group’s operation at a level
securing sustainability
Over 1.2 million
juvenile fish of various species and pike
larvae were released into water
bodies across PhosAgro’s geographies
in 2019–2022
Strategy and management
approach
GRI 3-3
conducts an environmental
resources. In 2020, the Company
impact assessment (EIA) based
started developing comprehensive
on the results of engineering
biodiversity protection programmes
and environmental surveys.
in partnership with research
The Company’s Environmental Policy
Assessment of the local flora, fauna
institutions. The effort is aimed
sets forth PhosAgro’s obligations
and landscapes, as well as research,
at assessing and restoring
to preserve biodiversity, natural
analysis and consideration of public
environmental conditions
landscapes and habitats across
attitudes towards biodiversity
across the Company’s footprint
its footprint and prevent its projects
protection are integral to our EIA
and establishing its priorities
from causing any harm to the same.
procedures.
in protecting biodiversity based
on indicator species monitoring.
Before building any new
For a number of years, the Company
production facilities or renovating
has been working to preserve
existing ones, PhosAgro
biodiversity and replenish biological
Key initiatives in 2022
GRI 304-3, SASB EM-MM-160a.3
Comprehensive biodiversity protection programmes
were implemented at the Volkhov branch, one of the Kirovsk
branch’s facilities and Apatit’s Cherepovets production site.
Kovdozero Reservoir,
Murmansk region
Whitefish
11,502
Kirovsk
Lake Ladoga,
Leningrad region
Volkhov
Cherepovets
Whitefish
1,584
Rybinsk Reservoir,
Vologda region
Pike
42,340
Balakovo
Volgograd Reservoir,
Saratov region
187,222
juvenile fish
of various species and pike larvae
were released into water bodies
across the Company’s geographies
in 2022
Sheksna Reservoir,
Vologda region
Sterlet
3,000
Sukhona River,
Vologda region
Sterlet
11,743
Saratov Reservoir,
Saratov region
Carp
28,151
Zander
28,064
Sterlet
5,601
Silver carp
Carp
30,237
25,000
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GRI 304-2, SASB EM-MM-160a.3
In 2022, the Cherepovets facility
completed research of flora
The research revealed that the area’s
The field and desktop studies proved
wildlife includes endemic European
that none of the plants or animals
and fauna within the footprint
and Siberian species and is typical
found in the reviewed area
of pyrite cinder storage facility No.
of the Vologda region.
are included in the Vologda region’s
1–3 (System for Hydraulic and Dry
Stacking of Pyrite Cinder).
Red Data Book or in the Red Data
Book of the Russian Federation.
230
231
GRI 304-3PERFORMANCE REVIEW
As part of the efforts to develop
of the Kirovsky mine includes
Water ecosystems within
biodiversity protection
over 900 species of fungi, lichens,
the footprint of the Kirovsky mine
programmes, the Company
mosses and vascular plants,
exhibit relatively high taxonomic
joined forces with Kolsky
as well as 135 species of birds
diversity due to a wide range
Research Centre of the Russian
and 11 species of mammals.
of conducive factors. The efforts
Academy of Sciences
The realm of lichens and plants
to take stock of fish fauna within
to conduct a comprehensive
within the footprint of the Kirovsky
the footprint of the Kirovsky
environmental study of the area
mine is amazingly diverse
mine led to the identification
within the footprint of Apatit’s
Kirovsky mine. The researchers
walked over 150 km of trails
and idiosyncratic, which is a reason
of four fish species. Lake Bolshoi
enough to develop designated
Vudyavr currently fits the habitat
initiatives for protecting the unique
requirements for these species,
and completed 62 geobotanical
flora of the Khibiny Mountains.
as it offers ample food supplies
descriptions. The total
The diversity of bird and mammal
for both salmonids (brown trout,
distance walked to take
species was strongly affected
Arctic char) and European smelt.
stock of the endemic birds
and disturbed by human activities
and mammals exceeded 121
in the area. Their incidence in natural
As part of the programme
km. The study of hydrobionts
habitats corresponds to standard
for environmental monitoring
was carried out at three
incidence in slightly disturbed areas
of biome (flora and fauna),
stations and lasted from July
and predictably enough shows
the Volkhov branch researched
until September.
signs of structural transformation
an area within the sanitary
in populations inhabiting areas
protection zone.
The research revealed that
impacted by humans.
the biome of terrestrial
ecosystems within the footprint
The study of the area within
the footprint of Apatit’s Volkhov
branch revealed that structure
of animal species across the reviewed
biotopes is typical for the region
in question. A total of 52 bird species
were found to live within the facility’s
footprint and in adjacent areas.
Investment in biodiversity
protection programmes,
RUB mln
13.7
11.4
4.1
5.3
2022
2021
2020
2019
GRI 304-3
Juvenile fish released into water bodies across PhosAgro’s geographies
Water body
SARATOV REGION
Volgograd Reservoir
Saratov Reservoir
LENINGRAD REGION
Lake Ladoga
Nakhimovskoye Lake
MURMANSK REGION
Umba River
Kovdozero Reservoir
VOLOGDA REGION
Sukhona River
Sheksna Reservoir
VOLOGDA AND YAROSLAVL REGIONS
Rybinsk Reservoir
YAROSLAVL REGION
Gorky Reservoir
Total
2020
2021
2022
45,911
26,393
2,116
–
4,000
–
–
–
654,400
6,500
739,320
55,838
28,151
–
28,715
5,000
–
22,933
3,500
–
–
144,137
60,838
28,151
1,584
–
–
11,502
11,743
3,000
70,404
–
187,222
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METRICS AND HIGHLIGHTSPERFORMANCE REVIEW
Contributing
to local
communities
PROGRAMMES, STRATEGIC GOALS AND METRICS
KEY PROJECTS AND HIGHLIGHTS OF 2022
OUR FAVOURITE CITIES
•
Improving the quality of urban
environment and promoting
sustainable development
of the cities where we operate:
Kirovsk, Cherepovets, Balakovo,
and Volkhov.
Target 8.3
Target 9.1
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mprovement projects
completed
Specific activities: support for entrepreneurs
in the form of interest-free loans or
grants; implementation of the Arctic
Entrepreneurship Library project
Target 11.3
Target 17.17
EDUCATION
• Attracting educated, motivated and skilled
young talent to innovative Russian facilities,
including those of PhosAgro.
• Effective combination of high-quality
education and physical training to facilitate
moral and ethical development and promote
health of the younger generation.
•
SPIRITUAL REVIVAL
• Preservation and promotion
of orthodox values, spiritual ideas,
benevolence and respect for our legacy
and motherland.
CONNECTING GENERATIONS
• Preserving the history of the nation,
industry, or facility for all generations;
supporting continuity of generations,
inclusive traditions, respect for the older
generation, veterans, and vulnerable
population groups.
PROMOTION OF SPORTS
•
Supporting Russian sports
at the international, national and regional
levels, and promoting sports in regions
where the Group operates.
Target 3.4
Target 4.4
Target 3.4
Target 3.4
Target 4.4
Задача 11.3
Target 3.4
Number of DROZD students
increased
by 11.3%
Number of DROZD students who
are children of the Company’s
employees increased
by 49.9%
83 graduates
of PhosAgro Classes
started their career
with the Company after
completing higher
education
Total number of events rose
by 3.5%
Total number of offsite activities
was up
by 20.2%
Implementation of a project
to restore the wooden church
of Dormition of the Most Holy Mother
of God (17th century) in Nelazskoye
(Cherepovets District)
Support for a project to develop
the Russian Orthodox Centre
in Singapore
5,794
events
held by career guidance
and exhibition centre
Laboratory of Safety,
an interactive multimedia
exhibition, created
Completion of a project to restore mosaic icons
of the Holy Trinity Cathedral in Balakovo
Repair and provision of equipment
for the spiritual and educational centre
of the Cathedral of the Life-Giving Trinity
(Volsk, Saratov region)
175 initiatives
created to provide targeted support
and assistance to veterans, senior
citizens, and vulnerable population
groups
Total financial support came close to
RUB 466 mln
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PERFORMANCE REVIEW
Strategy
Our strategy is focused on long-term
social responsibility practices
social and economic development
implemented by our production
The Company’s Charity
Policy
programmes in the regions, cities,
facilities, this partnership
towns and rural communities
is perfectly tailored to meet today’s
in which our key production units
challenges and relevant stakeholder
operate.
expectations.
We place a high priority on historical
All our programmes and initiatives
continuity: as a successful enduring
involving social investments
partner of local communities
are aligned with the goals
in which we operate, we
and objectives set in the Group’s
are committed to promoting their
Strategy to 2025 and contribute to its
sustainable development. While
successful implementation.
hinging upon long-established
identifies the following key areas
of social investments:
• education;
• sports and a healthy lifestyle;
• social and spiritual aspects;
• medicine and healthcare.
We implement regional development projects
with a special focus on:
respecting the interests of,
and open communication with,
all stakeholders;
investments in social
and infrastructure development
initiatives;
charitable support of local
population and communities;
improving educational
potential of the regions
and promoting sports
and a healthy lifestyle.
External recognition
In 2022, PhosAgro Group
once again ranked among
businesses with the best social
and charitable programmes
in the Russian Leaders
in Corporate Philanthropy
competition. These long-
standing awards for socially
responsible businesses
are organised by the Donors
Forum, a coalition of major
grantmakers in Russia. In 2022,
a total of 60 companies
enrolled in the competition,
with 39 making it into the final
ranking and PhosAgro included
in the A+ Leaders category along
with eight other companies
with the highest score.
Showcased by the Cherepovets
facility, the Laboratory
of Safety exhibition won
a social programme award
as the Best Programme
Contributing to the Achievement
of UN Sustainable Development
Goals to Ensure Health, Healthy
Lives, and Well-Being to Promote
Sustainability.
Management approach
GRI 3–3
Our social investment programmes
and the involvement of Company
•
are based on public benefit priorities
representatives in the work of local
To ensure transparent
and mostly rely on opportunities
legislative and representative
and effective corporate
to partner with regional and local
bodies and government authorities
government authorities, local
to setting up community
communities, non-governmental
liaison offices and other venues
organisations, including non-
for meetings with people.
profit organisations established
by the Company to this end,
educational institutions and other
Key policies and regulations
governance, the Group has
developed a framework
of internal regulations
governing charity
and sponsorship, including:
• Code of Ethics;
• Charity Policy;
stakeholders.
All of the Group’s social
• Government Relations
investment projects and initiatives
Policy;
We implement our social investment
are implemented in accordance
strategy through promoting
with the requirements of the Federal
• Policy for Managing
Community Social
efficient and successful cooperation
Law on Charitable Activities
Programmes;
with a broad range of partners
and Charitable Organisations,
• Regulations on Managing
in line with the highest international
and other applicable laws
sustainable development standards.
and regulations.
The key principle underlying our
interaction with local communities
is a meaningful dialogue through
a variety of communication
channels, from public hearings
For more information
on community social
programmes, please visit
the Company’s website
Community Social
Programmes;
• Assessment Criteria
for Community Social
Programmes.
Management of social investment programmes
Organisational unit
Key responsibilities
CORPORATE LEVEL OF PHOSAGRO GROUP
Management Board
Chief Executive Officer
Deputy CEO
• Annual budget consideration and approval
• Decisions on participation in social and charitable initiatives
• General coordination of activities related to charity, sponsorship and community
Office for External Communications
investment
• Collection and analysis of feedback and other relevant information on ongoing
projects
• Organisation of public hearings and sociological surveys
• Information support
OPERATIONS
Government Relations Department
• Regular communication with business partners
Information Policy Department
• Project and programme management
HR and Social Policy Department
• Preparation of proposals on the basis of feedback
Social Development Departments
• Initial consideration of new applications
Commission for Social Issues
and Charity
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PERFORMANCE REVIEW
Performance assessment
and feedback
the evolution of public priorities
Group. Building on that, in 2022 we
related to social and economic
reviewed our internal documents
GRI 413–1
development.
We focus heavily on evaluating
In 2021, we partnered
to develop and approve criteria
and procedures for the assessment
of community social programmes.
the results of our social investment
with the Donors Forum to run
The sets of criteria for each of them
programmes. Assessment criteria
an exhaustive stakeholder survey
are available on the Company’s
include both objective data
and evaluate charity programmes
website. Our 2022 performance
and stakeholder views, thus ensuring
and projects implemented
for some of the key criteria is shown
comprehensive performance
in the regions of our footprint
below for each specific programme.
assessment and monitoring
and supported by PhosAgro
The Company uses
the following channels
to liaise with stakeholders:
involvement
in the work of regional
and municipal legislative
and representative
authorities;
interaction with religious
and faith leaders;
organising and running city-wide
public events (the Company’s
corporate holidays, city
celebrations, sports competitions,
tree planting, release of young
fish, etc.);
participation in meetings
public hearings and festivals
of regional and local
government authorities;
interaction with community
groups (veterans,
pensioners, NGOs,
and volunteers);
of charity projects;
partnership ties in implementing
projects such as DROZD, PhosAgro
Schools, projects run with colleges,
universities, hospitals, sports
clubs/teams, and charity
foundations (including in the form
of surveys, polls, and social
listening on social networks
and in the mass media);
interaction through social
networks and mass media
(publications on social
projects and handling
questions asked
by stakeholders);
establishment of subsidiaries
to promote non-core
activities that have economic
influence on the sustainable
development of local
communities;
interaction with recipients
of targeted support.
We also collect a considerable
hearings on various aspects;
Also, the Company’s employees have
amount of data used for analysing
and public meetings organised
been elected to various regional
the effectiveness of our social
at public sites. As an example,
and local legislative bodies. Our
investment programmes from
in Volkhov, the Company with support
work in these bodies provides us
the ongoing stakeholder feedback,
from its government relations team
with information on the most urgent
including corporate newspapers, TV
started holding regular meetings
issues faced by local authorities.
broadcasts, and social networking.
with local residents to discuss various
We include them in the agenda
Local residents in communities where
matters at a local community centre.
of joint working groups which discuss
we operate voice their grievances
The first meeting was held in 2022,
the methods and mechanisms
and comments using the Company’s
with the Company’s social projects
for addressing the issues.
website; social networks; liaison
presented and showcased to local
offices of deputies who are also
residents.
the Company’s employees; public
For information on other feedback
mechanisms, see the description
of specific projects.
Risks and opportunities
SASB RT-CH-210a.1, EM-MM-210b.1
Our social investment objectives
Social investment specific risks are listed below:
are affected among other things
by the following strategic risks:
1
3
4
15
social risk;
HR risk;
reputational risk.
The Company develops corrective
measures as necessary and unlocks
opportunities to mitigate those risks.
Below you can find more information
about what we do on this front.
For more information, see
the Strategic Risks section
on page 70
Insufficient
regulation of social
investment
management
processes
3
And economic
development
Performance
evaluation of social
investment
programmes
Evolution of public
priorities of social
2
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2022 metrics and highlights
PhosAgro Group makes an extensive
and diverse contribution to the social
Social spending by area in 2022,
%
Social spending by area
in 20211, %
and economic development of local
communities in the regions of our
presence: we pay taxes to local
budgets, create stable and well-
paid jobs for local people, and place
regular orders with local businesses.
As a responsible long-term partner,
we also allocate significant funds
to support local communities,
contribute to charitable causes
and develop infrastructure. Stable
and successful home regions
are a key driver of PhosAgro Group's
sustainable development.
51.62
36.13
5.36
4.30
2.15
0.42
0.02
Educational projects (net of
renovation of educational
institutions)
Infrastructure facilities,
including renovation of
educational institutions
Churches
Sports
Nationwide projects
Organisations of veterans
and disabled people
Membership fees
59.76
13.97
11.91
9.67
3.36
1.27
Infrastructure facilities,
including renovation of
educational institutions
Sports
Churches
Educational projects (net
of renovation of
educational institutions)
Nationwide projects
Organisations of veterans
and disabled people
0.06
Membership fees
Charitable giving and community and infrastructure investment1, RUB ‘000
GRI 203–1
Allocations1
Contributions to charities, NGOs and research institutions
(not related to the organisation’s commercial research
and development)
Funds allocated to support community infrastructure
(recreational facilities, etc.)
Direct spending on social programmes, including arts
and educational activities
2020
616,149
2021
742,048
2022
3,083,504
1,895,758
1,992,825
3,749,281
637,419
832,965
3,986,468
Total
3,149,326
3,567,838
10,819,253
1
In 2022, the Company revised the methodology for calculating the indicator and excluded expenses incurred under sponsorship
agreements. Based on the principle of comparability, the data for 2021 and 2020 was recalculated accordingly.
Key social investment programmes
GRI 203–2
OUR FAVOURITE CITIES
Improving the quality of urban environment and promoting sustainable development
of the cities where we operate: Kirovsk, Cherepovets, Balakovo, and Volkhov.
Our Favourite Cities initiative
municipality based on the results
Partnership and ongoing meaningful
is implemented under social
of comprehensive social surveys
dialogue with stakeholders allow us
and economic partnership
and identification of major social
to fine-tune our social programmes
agreements signed
problems and development potential
to better align them with focuses
with the authorities and is financed
of the territories.
of regional development and invest
in line with the Company's
social policy for a particular
more efficiently.
Promoting
entrepreneurship
The Company traditionally
supports a range of initiatives
aimed at promoting
entrepreneurship. In 2022,
a competitive corporate-city
project Making Our City Better
Together! was established in
Cherepovets, which included
training for potential participants
representing small private
businesses to help them
learn the rules of applying
for the project. The initiative
is implemented in cooperation
with regional and local
government authorities, non-
governmental organisations
and civil society.
In Kirovsk, Murmansk region,
the project of the Kirovsk
Tourism and Entrepreneurship
Development Agency (formerly
Khibiny Business Development
Centre), a project supported by
the Company, is underway. Its
main activities include providing
new and existing entrepreneurs
with training and grant support
awarded on a competitive
basis. The Kirovsk Tourism
and Entrepreneurship
Development Agency
assists in obtaining regional
and federal grants through
the Regional Small Business
Support Fund and other grant
providers. In addition, 2022 saw
the implementation of the Arctic
Entrepreneurship Library project.
Results of supporting
entrepreneurship in
the Murmansk region
in 2021–2022:
279 new jobs created;
17 new LLC and sole
traders as well as 14 self-
employed persons
registered;
12 project initiatives
launched, including
seven completed;
government support
totalling RUB 10 mln
received by eight
entrepreneurs;
status of Russian Arctic
Zone residents granted
to seven entrepreneurs;
three entrepreneurs
in the process
of registering as Russian
Arctic Zone residents;
849 hotline
consultations
for businesses
conducted.
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Our Favourite Cities programme
Key criteria and metrics
Total improvement projects completed (including repairs and reconstruction of social and healthcare facilities,
educational institutions and roads)
Residents' initiatives (applications submitted)
including those implemented with the Company's support
Share of external co-financing, %
Number of partners involved (including local residents for reconstruction/construction of infrastructure
facilities, including leisure and sports facilities)
Number of city-wide events organised by the Company
2022
78
3
3
48
139
101
Vologda region
sports school in Balakovo.
According to a sociological survey
In November 2022, the first
Initiated by a group of locals,
conducted in the reporting year
stage of the Northern Ring Road
the project became a successful
and feedback collected in social
was inaugurated in Cherepovets.
example of involving the public
networks, residents of the Leningrad
The project was completed
and businesses of Balakovo in social
region are generally satisfied
with funding from regional
development. The project’s total cost
with urban improvements currently
and municipal budgets and financial
stood at RUB 10.6 mln. The sports
taking place in the region.
support from PhosAgro Group
ground is the only one in the island
and Severstal. A quadripartite
part of Balakovo with this level
co-financing agreement
of equipment.
was concluded, making it the first
Murmansk region
The key project in 2022
Federal District by the Russian
Results of a 2022 sociological
• 81% of respondents are happy
Mountains national award. All
survey:
with the condition of sports
of the resort’s sports facilities
• about 77% of the respondents
infrastructure;
are certified by the International Ski
positively evaluated changes
• about 63% consider the town
Federation (FIS).
in the appearance of Kirovsk;
to be a tourist attraction;
• about 57% of those surveyed
•
level of healthcare, housing,
positively rated the safety
and utilities are areas
and quality of roads;
for improvement.
EDUCATION
Healthy, educated and professionally trained population is a critical driver of any region's
social and investment attractiveness. Since its establishment, PhosAgro Group has been
deeply involved in the development of human potential in the regions of its operation,
in particular, by helping to address the outflow of young people from small towns.
major public-private partnership
According to a sociological survey
was PhosAgro's co-financing
education support programme
project in the Vologda region.
conducted in the reporting year
of the overhaul of the street and road
along the school–college/
In addition to financial support
The Company invested RUB 171.6 mln
and feedback collected in social
network in Kirovsk. The main
university–enterprise pathway, we
and assistance in building
in the road construction.
networks, residents of the Balakovo
objective of the project is to improve
implement career guidance projects
renovations provided to the schools,
municipal district are generally
traffic safety in the town
for schoolchildren. In the field
the project offers advanced
According to a sociological survey
satisfied with the urban
by enhancing road infrastructure,
of personnel training, we cooperate
programmes in natural sciences,
sporting opportunities than other
conducted in the reporting year
improvements currently taking place
among other things in order
with educational institutions
economics, and management.
schools;
schools. 32% of students consider
PhosAgro Schools prestigious
and enjoy the educational
process. 23% say that PhosAgro
Schools increase their chances
to join the Company. 8% say that
PhosAgro Schools offer more
PhosAgro Schools
of the school–college/university–
As part of our unique multi-stage
enterprise track.
and feedback collected in social
in the region.
networks, residents of the Vologda
region are generally satisfied
with urban improvements
Leningrad region
currently taking place in the region.
In 2022, a concept
to further boost Kirovsk's appeal
for tourists. In addition, the access
to the Kirovsky mine was improved,
reducing travel time and increasing
the safety of our employees and all
in the cities and towns where we
According to an annual survey
• degree of parents’ and students’
operate, as well as in Moscow,
of PhosAgro Schools students:
satisfaction with the level
St Petersburg, Ivanovo, Kazan
and more.
• almost half of the students –
49% – say that PhosAgro Schools
give them more chances
of teaching at PhosAgro
Schools is quite high: 90%
of students say they are satisfied
with the teaching of almost all
Comments of city residents
for the development of the Kirov
residents of the Kukisvumchorr
Covering all levels of education, this
regarding the need to maintain
public garden in Volkhov was drawn
neighbourhood (about
programme supports promising
and opportunities to enter
subjects.
improved areas in due state
up, featuring new locations for active
5.000 people).
future professionals at each stage
a specialised university than other
are taken into account when
and passive recreation activities,
creating PhosAgro Group's
an alley with information and history
We participate in a public-
municipal programmes
and charitable initiatives.
boards, an amphitheatre, outdoor
private partnership to develop
chess tables, a stage and even
the Khibiny tourist cluster, including
Saratov region
an urban vegetable garden.
the Bolshoi Vudyavr Ski Resort.
The initiative to create a vegetable
In particular, the construction
garden/greenhouse with corporate
of the second stage of an artificial
In 2022, Apatit provided financial
design where PhosAgro Group’s
snowmaking system on the resort's
support to build a sports ground
fertilizers will be used to grow
northern slope continued in 2022.
and install professional sports
agricultural products won the second
In November 2022, Bolshoi
equipment in a Balakovo public
place at the Young Manager – 2022
Vudyavr was named the best
garden garden near the Olympic
corporate competition.
ski resort in the Northwestern
School
College
University
Career
with PhosAgro
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Satisfaction with various aspects of PhosAgro Schools
(296 people surveyed), %
Graduates enrolment outcomes
from 2015 to 2022, people
Availability of state-of-the-art
specialised laboratories
Course schedule
Comfort in classrooms and other areas
Relationships with classmates
Events organised by PhosAgro for children
Relationships with teachers
Equipment and materials
for the teaching process
85
90
94
96
96
97
94
988
868
517
181
Total graduates
Graduates admitted to
universities
Technical cources
Employer-sponsored technical
education
Programme of cooperation
with Russian agricultural
universities
level with the opening of nine
for 30 agrarian universities in Russia
new centres in the country’s key
and the CIS. A total of 22,700 students
agricultural regions. Today, PhosAgro
and teachers attended the lectures,
At PhosAgro, we believe that
Group's educational centres operate
which covered topics such
the development of education
at Russian State Agrarian University:
as agrochemistry and agronomy,
in the agribusiness sector is a crucial
• Moscow Timiryazev Agricultural
crop production, innovation
factor in supporting and enhancing
Academy,
and digitalisation of agriculture,
the robust growth that Russian
• Saratov State Agrarian University,
economics, law, and responsible
agriculture has been delivering
• Urals State Agrarian University;
farming.
in recent years. We are focused
• St. Petersburg State Agrarian
on fostering the right conditions
University;
Capabilities for conducting
for that by developing professional
• Kursk State Agricultural Academy,
scientific experiments were set
competencies of students
and teachers at agricultural
• Belgorod State Agricultural
up at PhosAgro Educational
University,
Centre’s Phyto-Class of Moscow
universities, as well as of agricultural
• Kuban State Agrarian University,
Timiryazev Agricultural Academy,
producers and agro-industrial
• Orel State Agricultural University,
including those for students’ thesis
technology service providers.
• Voronezh State Agricultural
projects. In addition, the Company
Vocational schools
and universities
We provide the country's leading
Since 2013, PhosAgro has been
Federation Council Committee
University,
together with Timiryazev Academy
implementing a comprehensive
on Science, Education and Culture
The main mechanism for this
• Penza State Agrarian University
work to provide career guidance
programme of cooperation
in Kirovsk, the committee
is the consolidation of resources
• Ryazan State Agrotechnological
to schoolchildren, organise lectures
technical universities with funds
with the Cherepovets College
recommended that the Russian
within PhosAgro Group's Education
University.
of Chemistry and Technology
Government take into account
Centres at Russia's leading
and conferences, additional
professional education courses,
for equipment and supplies
and participate in adapting
(CCCT), where the Group supports
the Company's experience in training
agricultural universities. In 2022,
In 2021–2022, PhosAgro's Education
open days with major employers
educational programmes to the needs
activities of a specialised department
skilled engineers and workers using
the programme reached a new
Centres held over 200 online lectures
and meetings for young scientists
of modern production facilities.
of the Ivanovo State University
the school–college–university–
Students of PhosAgro Group's partner
of Chemistry and Technology providing
enterprise educational pathway
vocational schools and universities
training for students and employees
when creating the Professionalism
are offered internships at the Company,
of PhosAgro's facilities.
and the most promising students
federal project and education
and production clusters in key
get employment opportunities
In February 2022, following an offsite
industries such as chemical, light
at the Group's facilities.
meeting held by the Russian
industry, metallurgy, etc.
Graduates of PhosAgro
Сlasses hired by PhosAgro
Group companies, people
Employment of CCCT
graduates by the Company's
facilities, people
2022
2021
2020
2025
plan
2024
plan
2023
plan
2022
2021
2020
9
9
10
2
8
9
5
4
5
9
2
2
206
128
107
108
74
53
Apatit
Kirovsk branch of Apatit
Volkhov branch of Apatit
Balakovo branch of Apatit
For more information on PhosAgro
Schools, see the People
Development section on page 161
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PERFORMANCE REVIEW
In addition, DROZD established ten
DROZD project results, people
Sports achievements of students in 2022, people
DROZD
(Educated and Healthy Children
of Russia)
non-sports clubs as well as hobby
groups for popular science, patriotic
and preliminary military training,
DROZD, a unique corporate
fitness, Media School, robotics, etc.
project, addresses the social
issues associated with keeping
children busy outside school hours
in the cities and towns where
PhosAgro operates. The Company
has taken on a significant
share of responsibility for their
upbringing, education, and sporting
development, so that parents can
work comfortably knowing that their
children have everything they need
for their intellectual and physical
development.
In 2022, DROZD
was presented at the Best
Practices in Promoting
Physical Culture and Sports
session of Russia – Country
of Sports, the X International
Sports Forum.
In 2022, raised funds accounted
The project is a comprehensive
for 23% of the project's total funding,
system of multi-faceted long-term
which demonstrates the popularity
interactions with children aged
of DROZD and confirms keen
4 to 18 that harmoniously combines
interest in the project from local
sports, spiritual, and patriotic
residents and regional authorities.
education. To facilitate the DROZD
programme, operators (independent
Surveys show a growing number
non-profit organisations) have
of positive reviews, in particular
been established in four cities
from parents regarding
where PhosAgro operates: DROZD-
the organisation of recreational
Balakovo (Saratov region), DROZD-
and sports activities (e.g. summer
Cherepovets (Vologda region),
camps in the Vita health resort
DROZD-Khibiny (Kirovsk, Murmansk
in Anapa and the annual awards
region) and DROZD-Volkhov
ceremony of the Best DROZD
(Leningrad region).
students). An important fact
is that more than 50% of DROZD
In 2022, the project covered
students who took part in the survey
more than 7,000 children
appreciated the quality and level
(including 170 physically disabled
of equipment in the gyms. According
and handicapped ones) who
to a parent survey, almost 50%
practised more than 20 athletic
of parents expect DROZD sports
disciplines in 70 sports classes.
clubs to improve their children's
Over 50% of the students passed
health. There was a considerable
various levels of the GTO fitness
increase in the number of parents
tests, with 29% of the children
interested in their children's sporting
with disabilities at the DROZD-
achievements.
Cherepovets site passing
the tests under the GTO Without
Borders project. More than 40%
of the students are winners
and runners-up in sporting
events at the municipal, regional,
and federal levels.
2022
2021
7,263
2,797
+11.3 %
+49.9 %
6,524
1,866
Total number of students
Children of PhosAgro Group
employees
Finance, RUB mln
2022
2021
147.2
44.6
121.7
39.2
Funding from Apatit
Funds raised
Number of participants
in public events, corporate
festivals, and celebrations
staged by independent non-
profit organisations in 2022,
people
39,840
people
6,372
9,573
17,545
6,350
Balakovo
Volkhov
Khibiny
Cherepovets
Winners and runners-up
of international competitions
Winners and runners-up
of national competitions
Winners and runners-up
of regional competitions
Winners and runners-up
of municipal competitions
Candidate masters of sports
Masters of sports
DROZD Village project
In 2022, the DROZD Village
project (running since 2016)
was awarded in the Sports
for Everyone, Best Organiser
of Physical Culture and Sports
in Rural Areas categories,
according to the National
Sports Award. The project
covers twelve villages
in the Saratov region and offers
more than 500 rural students
an opportunity to do sports.
Necessary infrastructure is created
in rural locations, sports clubs
are opened and mass sports events
are held. More than 30 sports clubs
are available to DROZD Village
students for sports activities free
of charge.
10
71
1,158
3,406
13
2
An important feature
of the project is continuous
health monitoring based
on the Health Navigator
methodology. It helps
teachers and parents to adapt
educational activities as closely
as possible to specific
requirements of a child’s body.
3,716
Number of children
monitored
16.9
Average health
index of all children
monitored,
at the beginning
of the reporting period
17.1
Average health
index of all children
monitored, at the end
of the reporting period
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PERFORMANCE REVIEW
SPIRITUAL REVIVAL
CONNECTING GENERATIONS
The main objective of the programme is to preserve
and promote orthodox values, spiritual ideas,
and respect for our legacy and motherland.
The main goal of the programme is to preserve memory of the history of the nation,
industry, or facility for all generations; traditions of respect for the older generation,
veterans, and vulnerable population groups.
The programme has been underway
The restoration of the unique mosaic
since 2001 and is implemented
icons of the Holy Trinity Cathedral
in cooperation with the Russian
in Balakovo, which began in 2018,
Orthodox Church, regional and local
was completed in 2022. In June,
government authorities, non-
the Sign mosaic on the north side
governmental organisations and civil
of the building was consecrated. Also,
society.
in 2022, work began on the Calvary
mosaic panel, which will be placed
The Company organises biannual
on the west side of the church.
pilgrimage tours to the relics of St
Such was the intention of Fyodor
Nicolas the Wonderworker for Russian
Schechtel, a prominent architect
believers. PhosAgro Group supports
of the early 20th century, and now
the project to develop the Russian
his ideas are to be brought to life
Orthodox Centre in Singapore.
by the outstanding Russian mosaic
The Group provides assistance
artist Igor Lavrenenko. In addition,
to the exarchate of the Russian
in 2022 PhosAgro financed
Orthodox Church in Southeast Asia.
the restoration of the cathedral's fence.
With the Company's
organisational support,
the restoration of a church
of Dormition of the Most
Holy Mother of God (built
in 1694) in the Nelazskoye
village, a unique monument
of wooden architecture,
is underway. PhosAgro also
helped renovate and equip
the spiritual and educational
centre of the Cathedral
of the Life-Giving Trinity (Volsk,
Saratov region).
Career Guidance
and Exhibition Centres project
and an interactive garden where
Total number of attendees
students can watch educational
Career guidance and exhibition
videos on cell life and structure
centres are located in all of the four
and do lab experiments. There
key cities across our footprint
are panoramic cinemas offering
and represent a combination
career guidance and educational
of a modern multimedia corporate
films, sensor tables with geographic
museum and an innovative
data on minerals and countries
and interactive popular science
around the world, and sensor
centre offering advanced
booths to test professional aptitude.
programmes in chemistry, biology,
The centres are very popular
and related professional training.
with schoolchildren for being
The centres are equipped with virtual
the place to learn about different
2022
2021
2020
85,544
241,034
66,540
578,651
24,189
400,090
Offline
Online
and physical science laboratories
professions and a major attraction
Number of events
designed to prepare a variety
for teenagers combining cultural
of chemical compounds, multimedia
entertainment and intellectual
microscopes with 50.000x power,
pastime.
2022
2021
2020
5,794
5,313
363
Participants:
• Museum and exhibition
centre for interactive
education of Apatit
in Kirovsk;
• Fifteenth Element,
a museum and exhibition
centre in Volkhov;
• Green Planet, a centre
for interactive education
in Cherepovets;
• Academy of Fertility,
a museum and exhibition
centre in Balakovo.
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Security Agents
• security and safety training
society and show how to avoid
In 2022, PhosAgro continued
courses developed for different
them;
a unique project for schoolchildren
categories (including children);
• a travelling safety exhibition
Targeted Assistance project
In Kirovsk and Apatity, we provide
A combination of targeted assistance
support to six non-governmental
to public organisations and support
organisations, including a volunteer
which was initiated
•
the first issue of Security Agents,
developed; in 2023, the exhibition
for volunteer initiatives in the regions
centre for the Group's pensioners.
by the Cherepovets facility
a magazine for teenagers (12+),
will travel across Cherepovets
of operation.
and enlisted the support of Apatit's
published, and three more issues
and the Vologda region, Volkhov
We also support four local non-
Economic Security Department
are slated for 2023;
and Balakovo;
The programme supports 24 non-
governmental organisations
and the Ministry of Internal Affairs’
• Security Agents, a media school,
• project experience was rolled
governmental organisations
in Balakovo and Volkhov, respectively.
Office in Cherepovets.
set up, seeking to provide
out at PhosAgro's Balakovo
of labour and war veterans,
an in-depth insight into security
and Volkhov sites of Apatit.
as well as a number of charities.
The Company’s volunteers
Other areas of work
with veterans include:
• financial aid;
• health resort treatment;
• mass cultural events,
excursions, entertainment.
The project achieved the following
and safety issues and promote
results:
safe behaviour;
• Laboratory of Safety, an interactive
• five episodes of The Kislov Family,
multimedia exhibition, created;
a cartoon for children (6+), filmed
to reveal the problems of modern
For more information
on the Security Agents project,
see the Ethical Practices section
on page 310
The Agents
of Safety project
received prizes at two
federal competitions:
• winner in the Best
Museum Event
category for the project
in the Corporate Museum
competition;
• winner as the Best
Programme Contributing
to the Achievement
of UN Sustainable
Development Goals
to Ensure Health, Healthy
Lives, and Well-Being
to Promote Sustainability
in the Russian Leaders
in Corporate Philanthropy
competition.
organised 175 events to provide
and prepare them for independent
In particular, PhosAgro supports
assistance to veterans, the elderly,
life outside the institution),
ten non-governmental organisations
and vulnerable social groups in 2022.
as well as environmental initiatives.
in Cherepovets, including
Members of the youth organisation
In the Name of Good charity,
Apart from that, the volunteers'
also help an animal shelter. Another
the Cultural and Recreational
activities include interaction
important area of volunteer activity
Centre in the Northern Microdistrict,
with orphanages (in particular,
is assistance to the Company’s
and veteran organisations.
making friends with children,
veterans, primarily those who
helping them to socialise
are single.
PROMOTION OF SPORTS
Support for Russian sports at the international, national and regional levels,
and promoting sports in regions where the Group operates.
We believe that supporting the first
steps of young athletes in the cities
of our presence is just as important
as contributing to the success
of record holders.
Apart from DROZD, the Company
provides assistance to 21 sports
organisations at the federal,
regional, and municipal levels.
In 2022, total support
for sports projects
amounted to nearly
RUB 466 mln
PhosAgro's support
at the federal level
went to:
• Russian Olympians
Foundation:
• Russian Rhythmic
Gymnastics Federation;
• Russian Cross-Country
Skiing Federation;
• Russian Chess Federation;
• Russian Rugby Federation;
• Moscow Rhythmic
Gymnastics Federation;
Academy of Fertility,
a museum and exhibition
centre in Balakovo.
The Company's support
at the regional level
went to:
• Proton Volleyball Club;
• Avtodor Basketball Club
(Saratov region);
• Turbina speedway team
(Saratov region);
• Severyanka Volleyball Club
(Vologda region).
The Company also continued
to support local organisations: youth
sports schools, sports associations
and clubs.
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MAINTAINING
best practices
4
E
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V
O
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We believe it is important
to continue to be guided by best
practices in this essential area
and to make sure all our internal
standards and procedures
are aligned with both Russian
statutory requirements
and the most reputable national
and global guidelines.
254
Chairman's
statement
256
Corporate
governance
framework
260
Corporate
governance
structure
266
General Meeting
of Shareholders
266
Board
of Directors
290
Executive
bodies
292
Remuneration
report
296
Corporate
controls
302
Ethical
practices
252
253
Last year, PhosAgro saw major reshuffles
in its Board of Directors composition.
Maintaining a meaningful share
of independent directors on the Board
remains a key priority for us.
4 ndependent directors currently
on PhosAgro's Board of Directors
We engage in ongoing and consistent
efforts in the area of anti-corruption. We
have the Anti-Corruption Policy and Code
of Ethics in place, run anti-corruption
control of our procurement activities,
and work to prevent conflict of interest
and train our employees as needed.
А1 PhosAgro was awarded
the highest ranking
in the Russian Business Anti-
Corruption Rating by the Russian
Union of Industrialists
and Entrepreneurs
For details, see page 267
For details, see page 312
Chairman's
statement
70%
of directors elected
to the Board in June
2022 were newcomers.
2022 saw unprecedented
challenges in the production
and economic activities,
which could not but have
an immediate effect
on the Company’s corporate
governance practices.
In spring 2022, the London Stock
debt commitments to the holders
with the Corporate Governance
for 2021 in line with the regulator’s
of the management team and its
Exchange suspended trading
of bonds recorded both in Russia
Code recommended by the Bank
recommendations and examined
contribution to the strong results
in global depositary receipts
and abroad.
issued by Russian companies,
of Russia. The directors also
the action plan developed based
delivered by the Company
assessed progress made
on the self-assessment findings.
in 2022, while also continuing
including PhosAgro. The introduced
The newly elected Board of Directors
in the reporting year against
to support the management
restrictions affected the shareholders’
continues to work actively. We
rights to manage PhosAgro, receive
have streamlined the structure
dividends, and dispose of securities
of committees by reducing
previously approved corporate
The 2023 external assessment
in implementing the Strategy
governance improvement initiatives
of the Board’s performance in 2022
to 2025.
and reviewed a similar action plan
confirmed that activities of the Board
In early March, Andrey A. Guryev
issued by PJSC PhosAgro. As a result
their number from six to three
for 2023.
resolved to step down as the CEO
of disruptions in the settlement
and reviewing the scope of their
of Directors and its committees
comply with the Corporate
of PhosAgro and to resign
infrastructure, PhosAgro also could
responsibilities. We have also shifted
We paid particular attention
Governance Code recommended
from the Company’s Board
not pay interest on the previously
the focus of the Board of Directors
to the recommendations
by the Bank of Russia and the Listing
of Directors. Furthermore,
issued Eurobonds.
the Board of Directors lost
and its committees by placing
a particular emphasis on anti-crisis
Xavier Rolet, its Chairman
In this challenging environment, we
management efforts.
and independent director,
demonstrated utmost commitment
Andrey G. Guryev, Deputy
to our obligations. For example,
The Board of Directors continues
Chairman, and Irina Bokova,
in May 2022 the Company obtained
to be actively engaged in embedding
Chair of the Sustainable
a permit to proceed with its GDR
best practices into all aspects
published by the Bank of Russia
Rules of the Moscow Exchange.
in December 2021 to encourage
boards of directors of public joint-
The Board of Directors reaffirms
stock companies to consider ESG
the Company’s commitment
factors and sustainable development
in their activities1. Among other
things, in the reporting year
to the highest standards
of corporate governance and will
continue to focus closely on health
Victor Cherepov,
Chairman of the Board
of Directors of PJSC PhosAgro
Development Committee under
programme. In 4Q 2022, PhosAgro
of PhosAgro's operations, including
the Strategy and Sustainable
and safety, sustainable development,
the Board of Directors. 70%
held a vote among its Eurobond
its corporate governance. In 2022,
Development Committee
climate change and the global
of directors elected to the Board
holders to amend the issuance
the Board of Directors took
of the Board of Directors reviewed
challenges facing the agricultural
in June 2022 were newcomers.
documentation in such a way
note that the practices applied
as to continue honouring its public
by PhosAgro are strongly aligned
results of the self-assessment
industry. PhosAgro’s directors
conducted by the Board of Directors
commend the performance
1 Bank of Russia’s Information Letter No. IN-06–28/96 dated 16 December 2021
On Recommendations for Boards of Directors of Public Joint-Stock Companies to Consider
ESG Factors and Sustainable Development Issues.
254
255
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Corporate
governance
framework
Corporate
governance
principles
PhosAgro sees its commitment
to the highest corporate
governance standards as key
to building a transparent,
responsible and trustworthy
governance framework to ensure
further growth and sustainable
financial strength.
PhosAgro's corporate governance
principles, structure, practices
and procedures are set forth in its
Charter and Corporate Governance
Code. Provisions of PhosAgro's
Corporate Governance Code do
not contradict the Corporate
Governance Code recommended
by the Bank of Russia’s Letter dated
10 April 2014 (the “CGC”) and the UK
Corporate Governance Code.
For the full text of PhosAgro's
Charter, please visit our website
For the full text of PhosAgro's
Corporate Governance Code,
please visit our website
Basic principles
of the Company's Corporate
Governance Code
Accountability
Equality
Transparency
Responsibility
Sustainable
development
governance
GRI 2–12, 2–13
Our governance framework
for sustainable development (SD)
relies on a number of internal
and external drivers.
Internal drivers
The Company’s mission
and values supported
by our Corporate Strategy
External drivers
Stakeholder expectations
and the global
community’s requirements
for the maturity
of the Company’s SD
governance framework
The six main components
of the sustainable development
governance system are listed
in the Sustainable Development section
on the official website
256
257
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review
2022 initiatives
GRI 2–14
Documentation support
Approval of:
•
•
•
the Inside Information
Regulations as amended
the Regulations
on the Information Policy
as amended
the transparency statement
under the UK Modern Slavery Act
as amended
•
•
•
•
the Terms of use of the PhosAgro
hotline as amended
the Regulations on the Board
of Directors as amended
the Regulations on the Strategy
and Sustainable Development
Committee of the Board
of Directors
the Tax Strategy
Business processes and organisation
• Establishing the Strategy
and Sustainable Development
Committee of the Board
of Directors to vest it
with the majority of functions
previously pertaining to three
dissolved committees of the
Board of Directors: the Strategy
Committee, the Environmental,
Health and Safety Committee,
and the Sustainable Development
Committee
• Strengthening the sustainability
management function
at the corporate headquarters
and the enterprises
• Comprehensive regulations
on interaction in preparing
non-financial reporting drafted
and implemented
• Extending certificates
of compliance with requirements
of ISO 9001, ISO 14001, ISO 45001,
and GMP+ FSA
• Surveying the opinions
of the Company and its
stakeholders with respect
to the material topics under GRI
2021
IT
• Update of the reporting
year’s environmental
and social achievements
on the Sustainability page
of the Company’s official
website
• Maintenance of the Public
Scrutiny application designed
to report occupational health
violations
Project management
• List and coverage
of sustainability key performance
indicators (KPIs) expanded
• Expansion of analytics under
the automated system
evaluating suppliers against ESG
criteria
• List of initiatives pursuing
individual UN SDGs-related
targets updated
Competencies and people
• Mandatory training
• Participation in major
in various areas (for example,
cybersecurity, climate change,
human rights, etc.) included
in the sustainability training
framework
international and Russian
initiatives (RSPP, CGI, ESG
Alliance, UN Global Compact,
IFA) maintained
Performance review and reporting
• Procedure for preparing
• Procedure for the Strategy
integrated annual reports
drafted and approved.
CEO appointed as chair
of the working group in charge
of the integrated annual report
• Analysis of global and local ESG
ratings and rankings
• Taking into account
stakeholders’ opinions (inside
and outside the Company)
and Sustainable Development
Committee to monitor
the Company’s sustainability
projects developed
• TCFD, GRI, CDP, The Value
Reporting Foundation
recommendations for reporting
implemented
258
259
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Corporate
governance
structure
Structure of corporate governance
and sustainability management
GRI 2–9
Administrative
reporting
Functional
reporting
Functional
relationship
GENERAL MEETING
OF SHAREHOLDERS
Review
Committee
Board of Directors
Board of Directors
committees:
• Audit Committee
• Remuneration and Human
Resources Committee
• Strategy and Sustainable
Development Committee
Chief Executive
Officer
Collective
executive body
(Management Board)
Corporate governance assessment
When assessing the quality
Committee of the Board of Directors
Following a review of the corporate
of the Company's corporate
and approval by the Board
governance quality assessment,
governance, the recommendations
of Directors, and forms a part
the Board of Directors approved
of the Corporate Governance Code
of the Company’s annual report.
the CGC compliance report for 2022
(the "CGC") and the UK Corporate
and issued a positive assessment
Governance Code (UK CGC,
In February 2023, the Audit
of compliance with the CGC
FRC, 2018) are adopted as best
Committee of the Board
recommendations. Furthermore,
practices. The actual compliance
of Directors reviewed the results
the Board of Directors praised
with the CGC is measured
of the improvement plan
progress against the 2022 Corporate
on an annual basis and disclosed
implementation in 2022, analysed
Governance Practice Improvement
in a dedicated report (report
the developments of the degree
Plan, and approved the improvement
on compliance with the principles
of compliance with the CGC
plan for 2023.
and recommendations
principles, as well as the assessment
of the Corporate Governance Code,
of the disclosure quality to explain
hereinafter the “CGC Report”), which
non-compliance or partial
is subject to review by the Audit
compliance.
Over the past three years, PhosAgro has demonstrated a high level
of compliance with the CGC recommendations.
CGC section
Total number
of matters
Full compliance
Partial compliance
Non-compliance
2020
2021
2022
2020
2021
2022
2020
2021
2022
1. Shareholders' rights
2. Board of Directors
3. The Company's Corporate
Secretary
4. Remuneration
5. Risk governance
and internal control
6. Information disclosure
7. Material corporate actions
Total
Percentage of compliance
with CGC principles
13
36
2
10
6
7
5
79
11
33
2
5
6
7
3
67
85
11
32
2
8
6
5
5
69
87
11
30
2
8
6
7
5
69
87
2
3
4
2
11
14
1
4
2
2
9
11
1
5
2
8
10
1
1
1
1
1
1
1
1
2
3
Internal Audit
Department
Legal and Corporate
Governance Department
Corporate
Secretary
Compliance with CGC principles at PhosAgro and other Russian companies, %
Functional departments in sustainable development
• Ecology and Environmental
• Marketing and Development,
Management
• Human Resources and Social Policy
• Technical Development, Capital
Construction and Repairs, Samoilov
Scientific Research Institute
for Fertilizers and Insectofungicides
(NIUIF)
Innovations, NIUIF
• Procurement
• Project Management
• Economic departments
• Risk Management and Internal
Control
Sustainable
Development
Department
Full compliance
Partial compliance
Non-compliance
2022
2021
2020
2019
78
77
78
87
87
85
84
2022
2021
2020
2019
17
17
16
10
11
14
15
2022
2021
2020
2019
5
6
6
3
1
1
1
PJSC PhosAgro
Russian public
joint-stock companies1
PJSC PhosAgro
Russian public
joint-stock companies
PJSC PhosAgro
Russian public
joint-stock companies
260
261
1 Based on the Bank of Russia's annual reviews of corporate governance practices in Russian public companies
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review For every case of partial compliance
or non-compliance, PhosAgro
specifies the measures taken
to mitigate the associated risks
in the CGC Report. In 2021,
the quality of PhosAgro's disclosure
to explain the non-compliance
(partial non-compliance)
with the recommendations
of the Code, according to the Bank
of Russia, improved from 69 to 76%,
while the average level in the Russian
Federation declined from 63% to 59%.
Degree of disclosure
to explain non-compliance
(partial non-compliance)
with CGC principles
at PhosAgro and other
Russian companies, %
20211
2020
2019
76
59
69
63
77
63
PJSC PhosAgro
Russian public
joint-stock companies
Results of implementing the CG improvement plan
developed and approved by the Board of Directors
in the analysis of the 2021 CGC Report
Review and approval of the tax
strategy
The document was approved
by the Board of Directors
on 3 November 2022
Amendments to the information
policy detailing the process
for providing data on shareholder
requests
Amendments to the Regulations
on the Remuneration and Human
Resources Committee reflecting
the conditions (events) for reviewing
the compensation policies
The document was approved
by the Board of Directors on 3 November
2022
Amendments not approved.
The Company proceeded from the fact
that the responsibility to regularly
revise the policy, which is specified
in the Regulations on the Remuneration
and Human Resources Committee
of the Board of Directors, implies
ensuring that it is updated and meets
the current needs of the Company
Return to the practice of individual
assessment of the Board members
when assessing the Board
performance in general
It was resolved to refrain from
individual assessments for the purposes
of the Board’s 2022 performance
assessment
ADDITIONAL MEASURES IMPLEMENTED
Expanding the scope of the annual
reports to include the Board
of Directors’ viability statement,
the going concern assumptions,
consideration given to key
stakeholders’ voice in the Board's
discussions and decision-making,
information about significant
external appointments of the Board
members
Expanding disclosure
on the remuneration system
as a whole, the KPI system and their
alignment with the strategy
Updating PhosAgro Hotline
Regulations
Updating the Regulations
on the Board of Directors
and Regulations on committees
of the Board of Directors
Updating PhosAgro’s Inside
Information Regulations
Underway since April 2021
Underway since April 2021
The document was approved
by the Board of Directors on 18 August
2022
The document was approved
by the Board of Directors on 18 August
2022
The document was approved
by the Board of Directors on 3 November
2022
Updating the Board's Modern Slavery
Act Transparency statement
The document was approved
by the Board of Directors
on 20 December 2022
Key actions
approved by the Board
of Directors upon review
of the 2022 CGC Report which
are aimed at improving
the governance quality in 2023:
upon the re-election
of the Remuneration
and Human Resources
Committee in 2023,
the Board of Directors
will seek to staff
the Remuneration
and Human
Resources Committee
with independent
directors only;
as part of the next
amendments made
to the Regulations
on the Remuneration
and Human
Resources Committee
(presumably in 2023),
a clause on conditions
(events) for reviewing
the compensation policies
will be introduced;
in 2023, the Company
will resume the practice
of assessing each Board
member individually,
as part of the evaluation
of the quality of the work
of the Board of Directors.
1
The most recent year assessed by the Bank of Russia.
262
263
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review
Changes in self-assessment as regards compliance with corporate governance principles
Old status
New status Comments
Criterion 1 is partially complied with. A notice on one
of the three General Meetings of Shareholders held in 2022
was published 27 days (not 30 days) before the Meeting
date. This was due to the necessity to align the General
Meeting’s agenda with Article 42 of Federal Law No.
208-FZ On Joint-Stock Companies dated 26 December
1995 based on the Bank of Russia’s improvement
notice, which was received after the Board of Directors
approved the agenda. Hence, a new Board meeting had
to be convened to amend the net profit distribution
item of the General Meeting’s agenda by specifying
the applicable net profit distribution period.
That said, PhosAgro did not breach the shareholder
notification timeframe in accordance with Article 52
of the same Federal Law.
Going forward, PhosAgro will seek to respect applicable
timeframes for serving (publishing) General Meeting notices
as required by laws and the Corporate Governance Code.
Formally speaking, the criterion is not complied with,
as PhosAgro’s Charter does not provide for online ballot
completion on the website. However, the vast majority
of the Company’s shareholders hold their shares through
nominee shareholders (with the exception of only 24 out
of 231,000 shareholders, or less than 0.01%) and can take
advantage of remote voting by instructing their nominees
accordingly (proxy voting) and thus freely exercise their
voting rights in a simple and convenient way. Going forward
(for example, if the number of shareholders who do not
use nominee shareholding services increases drastically),
PhosAgro may once again consider an option of electronic
voting.
In the reporting year, explanations on the proposed net
profit distribution procedure (including the amounts paid
as dividends and profits allocated for the Company’s own
needs) and its conformity with PhosAgro’s dividend policy
were included in the materials for the General Meeting
of Shareholders.
No.
1
Number and brief
description
of the principle
1.1.2. Publishing
of a general
meeting notice
on the company’s
website at least 30
days prior to the date
of the general meeting
of shareholders
2
3
1.1.5. Ability
for shareholders
to freely exercise their
rights to vote
1.2.1. A transparent
and clear mechanism
for determining
the amount
of dividends
and payment thereof
Full compliance
Partial compliance
Non-compliance
No.
4
Number and brief
description
of the principle
2.3.2. Availability
of information on
nominees to the
company’s board
of directors to
shareholders
5
2.8.2. Performance
of the remuneration
committee
Old status
New status Comments
The criterion is partially complied with, as the shareholders
were not provided with the findings of an assessment
completed by the Board of Directors or its Remuneration
and Human Resources Committee to determine
whether the professional qualifications, experience
and skills of nominees to the Board of Directors meet
the current and potential needs of PhosAgro. This was due
to the short period of time left between the repeated
final date for submitting agenda proposals in the run-up
to the Annual General Meeting of Shareholders
and proposals on nominees to the Company’s Board
of Directors, on the one hand, and the date of the Board
meeting convened to review these proposals, on the other
hand.
In 2023, the shareholders will be provided with the findings
of an assessment completed by the Board of Directors
or its Remuneration and Human Resources Committee
to determine whether the professional qualifications,
experience and skills of nominees meet the current
and potential needs of PhosAgro. Going forward,
the Company will also seek to make this information
available to the shareholders in the run-up to the General
Meetings of Shareholders focusing on the election of Board
members.
Criterion 1 was not complied with, as one of the members
of the Remuneration and Human Resources Committee
does not meet the independence requirements.
The Committee was drawn from the members of the newly
elected Board of Directors. The directors were selected
based on their experience, professional background,
skills and knowledge so that they could best meet
the Committee’s goals and objectives.
Once the General Meeting of Shareholders elects new
members of PhosAgro’s Board of Directors in 2023,
the Board will seek to staff the Remuneration and Human
Resources Committee with independent directors only.
Criterion 2 was not complied with to the extent
that the Remuneration and Human Resources
Committee is chaired by a director who does not meet
the independence requirements. However, the director’s
competencies, professional experience and dedicated skills
enable him to run the Committee in the most efficient
manner. Upon the re-election of the Remuneration
and Human Resources Committee in 2023, the Board
of Directors will seek to elect an independent director
as the Chairman of the Remuneration and Human
Resources Committee.
Criterion 3 was not met with respect to the failure to define
in the Company’s internal documents the conditions
(events) upon the occurrence of which the Remuneration
and Human Resources Committee of the Board of Directors
considers the revision of PhosAgro’s policy on remuneration
of the Board members, members of executive bodies,
and other key executives. The Company proceeded from
the fact that the responsibility to regularly revise the policy,
which is specified in the Regulations on the Remuneration
and Human Resources Committee of the Board
of Directors, implies ensuring that it is updated from
time to time and meets the current needs of PhosAgro.
As part of the next amendments made to the Regulations
on the Remuneration and Human Resources Committee
or upon approval of a new version of the Regulations
(presumably in 2023), a clause on conditions (events)
for reviewing the compensation policies will be introduced.
264
265
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review No.
6
Number and brief
description
of the principle
2.8.5. Composition of
committees of the
Board of Directors
7
8
9
2.9.1. Evaluation of the
quality of the work of
the Board of Directors
6.3.1. Providing
shareholders with
access to information at
their requests
6.3.2. Providing
shareholders with
access to information at
their requests
Full compliance
Partial compliance
Non-compliance
Old status
New status Comments
General Meeting of Shareholders
Criterion 1 was not complied with to the extent
that the Remuneration and Human Resources
Committee is chaired by a director who does not meet
the independence requirements. However, the director’s
competencies, professional experience and dedicated skills
enable him to run the Committee in the most efficient
manner. Upon the re-election of the Remuneration
and Human Resources Committee in 2023, the Board
of Directors will seek to elect an independent director
as the Chairman of the Remuneration and Human
Resources Committee.
Criteria 1 and 3 were fully complied with. Criterion 2
was not met with respect to the failure to conduct
individual assessment of each member of the Board
of Directors in 2021 (for 2020) and 2022 (for 2021). Individual
assessment of each Board member was deemed irrelevant
by the Remuneration and Human Resources Committee,
as 70% of directors working at the Board starting July 2022
were newcomers. In this context, the Board of Directors
did not see any risks in failing to complete individual
assessments for each member of the Board. In 2023,
the Company will resume the practice of assessing each
Board member individually, as part of the evaluation
of the quality of the work of the Board of Directors.
Relevant amendments were added to PhosAgro’s internal
documents (the Regulations on the Information Policy).
Relevant amendments were added to PhosAgro’s internal
documents (the Regulations on the Information Policy).
The activities of PhosAgro's
the Annual General Meeting
The reporting year also saw two
supreme governing body –
of Shareholders was held in absentia
extraordinary General Shareholders’
the General Shareholders' Meeting –
to elect new members of the Board
Meetings convened to vote
are governed by the Regulations
of Directors and Review Committee,
on declaration (payout) of interim
on the General Meeting
determine the Board of Directors’
dividends.
of Shareholders.In June 2022,
remuneration, and resolve on other
matters within the Meeting’s remit.
Full text of PhosAgro’s Regulations
on the General Meeting of Shareholders
is available on the official website
of the Company
Board of Directors
The Board of Directors plays a key
direction and make key decisions.
and agenda and structure
role in PhosAgro's corporate
Throughout the year, the Board
of committees. The Board's
governance system. Its activities
focused on maintaining
responsibility to the government,
are governed by the Regulations
the continuous operation
shareholders, employees,
on the Board of Directors.
of the Company's production assets,
communities in the regions
supporting established supply chains
of PhosAgro’s footprint and other
In 2022, amid significant changes
and building new ones. The Board
stakeholders for the Company's
in the operating environment,
of Directors of PJSC PhosAgro
operational, financial, environmental
the Board of Directors continued
underwent notable changes
and social performance remained
to set the Company's strategic
both in terms of its composition
unchanged.
Report on compliance with the principles
and recommendations of the Corporate
Governance Code (stand-alone document)
Full text of PhosAgro’s Regulations
on the Board of Directors is available
on the official website of the Company
266
267
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Strategy and global challenges
Ongoing tasks
In 2022, we continued to develop our
strategic goals in functional areas
when approving the Strategy
Key activities undertaken
project management at PhosAgro
follow-up on the 2022 budget
updated Strategy to 2030 despite
such as sales, logistics, production,
in the context of the main
by the Board of Directors in 2022
Group subsidiaries;
utilisation;
the changing external environment,
environmental protection
scenarios considered. These criteria
included:
• appointment and evaluation
• determining whether Phosagro’s
but given the serious rise in the level
and climate change, occupational
include sustainable production
• assessment and quarterly
of the performance of PJSC
corporate culture is aligned
of uncertainty, this will take longer
health and safety, and personnel
growth, introduction of innovative
than expected.
development.
and sustainable products
and processes, and stronger
monitoring of the risk
management process;
PhosAgro's CEO and Management
with its mission, values
Board;
and strategy, as well as assessing
• assessment and quarterly
• oversight over management
and monitoring the corporate
The Board traditionally paid
In addition, the focus of the Board
operating efficiency.
monitoring of subsidiary activities
relations with shareholders,
culture;
great attention to monitoring
during the year was on approved
with a focus on workplace health
investors and other stakeholders;
• performance, work plans,
progress in the implementation
projects that, though not part
The Board also reviewed a number
and safety, industrial safety
• monitoring the implementation
and budget of the Internal Audit
of the Strategy to 2025, including
of the Strategy to 2025, meet
of investment initiatives that form
and environmental protection;
of priority areas of PhosAgro’s
Department;
a detailed review of progress towards
the criteria adopted by the Board
the basis for the Strategy to 2030
• assessment of compliance
activities in 2022 and determining
• quarterly review and approval
and can be integrated into it in line
with developments in the markets.
Sustainable development and corporate governance
GRI 2–14
In July 2022, the new Board
of the Company's operations
During 2022, as part of the action
of Directors resolved to establish
as environmental protection,
plan to implement the ESG agenda
a Strategy and Sustainable
occupational health and safety
in the Company's practices,
Development Committee, which
and energy efficiency. Regulations
the Board of Directors adopted a tax
confirms its understanding
on the Board of Directors and its
strategy and updated a number
of the key role of sustainability
committees were updated to set out
of internal documents on anti-
principles in defining the Company's
the new functionality and structure
corruption activities, shareholder
strategy, as well as their importance
of the committees.
relations, and handling of insider
in managing such aspects
information.
Information technologies and information security
In the reporting year, the Board
dealt with three groups of IT-related
and other advanced technical
solutions in line with PhosAgro's
in the Russian Federation due
to the imposition of sanctions. Board
issues. In addition to the traditional
IT strategy, as well as analysed
members, along with Company
assessment of information security
the Company's preparedness
employees, received information
threat prevention, the Board heard
to replace software products
security training on Kaspersky ASAP,
a report on the development of cloud
that are no longer supported
Apatit's corporate platform.
with the Inside Information
priority areas of its activities
of financial statements;
Regulations;
for 2023;
• convening General Meetings
• assessment of the quality
•
reviewing PJSC PhosAgro’s budget
of Shareholders of PJSC PhosAgro.
of investment and organisational
for 2023, as well as quarterly
Participation in the Board meetings
meetings
12
of the Board
of Directors
in 2022
agenda
items
77
considered
a total in 2022
In 2022, the Board of Directors
held twelve meetings (two of them
by absentee voting) and considered
a total of 77 agenda items.
The number of items considered
by the Board of Directors in 2022
grew compared to 2020 (70)
and decreased compared to 2021 (91).
Meetings of the Board
of Directors
2022
2021
2020
10
2
7
1
8
3
In-person
meetings
Absentee
meetings
268
269
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Participation in the Board meetings before the election of new
members of the Board of Directors (before 30 June 2022)
Prospects
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3/6
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Board of Directors
Audit Committee
Strategy Committee
Remuneration and Human Resources
Committee
1/1
Risk Management Committee
Environmental, Health and Safety
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Sustainable Development Committee
0/0
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5/5
2/2
v
o
n
o
r
a
h
S
y
e
r
d
n
A
5/5
2/2
2/2
2/2
2/2
2/2
The Company's development
remained in force in Russia.
In the face of unprecedented
scenarios are reviewed by the Board
At the same time, the restrictions
levels of realisation of these risks,
of Directors when approving its
caused by international sanctions
the Company ensures uninterrupted
Strategy. The strategic planning
and supply chain disruptions made
operation of all its production sites,
cycle adopted by the Company is five
it difficult for the Company to deliver
timely supply of fertilizers and care
years.
its products to its traditional markets.
for its employees and their families.
Since 2019, the Board of Directors
The Company is adversely affected
to cope with the new challenges
has been considering a contingency
by the termination of operations
in a short space of time, not just
plan to prepare for critical
in Russia by some Western
keeping the business stable, but
changes in the external operating
suppliers of equipment,
reaching new highs.
environment such as possible
services and technology,
restrictions on our supplies to key
as well as by difficulties in making
Based on the foregoing, the Board
PhosAgro Group's team manages
markets.
payments.
of Directors finds it reasonable
to believe that the Company will,
For the Group, 2021 was marked
When approving the Strategy
without any reservations, be able
by the countervailing duties imposed
to 2025, the Board of Directors
to continue its operations and meet
on Russian and Moroccan producers
also weighed the associated
all its obligations as they fall due
in the US market, the agreement
strategic risks and regularly reviews
while the Strategy to 2025 is in force.
among Russian producers
them as part of the strategy
of mineral fertilizers to put a cap
implementation monitoring. Risk
on prices in the domestic market,
management maps were drawn
as well as the introduction of quotas
for each risk, containing a detailed
and export licences in Russia.
description along with mitigants
and probability, materiality and risk
In 2022, countervailing duties
appetite estimates.
and the supply quota system
For more information on our
strategic risks, see the Strategic
Report section on page 70.
According to Section 172
For the members of PhosAgro’s
of Directors reviews feedback
“Duty to promote the success
Board of Directors, these
from stakeholders on aspects
of the company” of the UK
standards mean that the Group’s
of the Company’s operations that
Companies Act 2006, PhosAgro’s
stakeholders should be interacted
are material to them.
Board of Directors acts in good faith
with responsibly and that their
for the benefit of the Company
interests should be respected
Such feedback is used both
to promote its success, taking
to the maximum extent possible.
to identify topics and indicators
into account possible long-term
to be disclosed in PhosAgro
consequences of its decisions
At least once a year, the Strategy
Group's non-financial reporting
for the society and the environment,
and Sustainable Development
and to determine mechanisms
as well as the interests
Committee (until 2022,
for engagement with the Company's
of the Company’s employees
the Sustainable Development
stakeholders, including at the Board
and other stakeholders.
Committee) of the Board
level.
270
271
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review
Composition of the Board of Directors
Board of Directors:
gender split, %
Board of Directors: place
of residence, %
Before the election
of new Board members
(before 30 June 2022)
Before the election
of new Board members
(before 30 June 2022)
After 30 June 2022
After 30 June 2022
GRI 2–9, 405-1
The General Meeting of Shareholders
annually elects ten members
of the Board of Directors
by cumulative voting: the nominees
with the highest number of votes
are elected.
The composition of the Board
of Directors should be balanced
in terms of the qualifications,
expertise and business skills of its
members. Board members should
have a recognised, including among
investors and shareholders, good
business reputation and no conflicts
of interest with the Company.
80
90
Men
20
10
Women
50
100
Russian Federation
40
10
0
0
Europe
Southeast Asia
Board of Directors:
independence, %
Board of Directors: age %
Board of Directors: length
of continuous service, %
Before the election
of new Board members
(before 30 June 2022)
Before the election
of new Board members
(before 30 June 2022)
After 30 June 2022
After 30 June 2022
Before the election
of new Board members
(before 30 June 2022)
After 30 June 2022
10
10
70
40
20
50
Non-executive directors
Independent directors
Executive directors
40
40
10
10
50
20
20
10
Above 60 years
50–60 years
40–50 years
Under 40 years
0
50
50
70
20
10
<3 years
4–7 years
>7 years
Key competencies of Board members
GRI 2–17
Key competencies (based on professional experience)
t
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m
e
g
a
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a
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r
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n
a
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i
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g
a
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a
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k
s
i
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e
t
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p
r
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c
d
n
a
w
a
L
e
c
n
a
n
r
e
v
o
g
Board
members
since 5 July
2022
Status
Victor
Cherepov
Chairman,
independent
Victor Ivanov
Independent
Natalia
Pashkevich
Andrey
Sharonov
Independent
Independent
Ivan Rodionov
Non-executive
Yuri Krugovykh Executive
Alexander
Sharabaika
Alexander
Seleznev
Executive
Executive
Siroj Loikov
Executive
Mikhail
Rybnikov
Executive
1
Including competencies in environment, health and safety.
l
i
e
b
a
n
a
t
s
u
s
d
n
a
n
o
i
t
a
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a
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a
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e
t
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I
1
)
G
S
E
(
t
n
e
m
p
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v
e
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l
%
,
t
s
e
r
e
t
n
i
y
t
i
u
q
E
none
0.0013
none
none
0.0064
none
none
none
none
0.0258
272
273
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review
Role of independent directors
The Board of Directors’ assessment
Independent directors make
four out of ten Board members
The assessment is based
a valuable contribution
are independent. Until 30 June 2022,
on the criteria set out in PhosAgro's
to the Board’s decision-making
independent directors chaired five
Regulations on the Board
as their opinions rely solely
out of the Board's six committees;
of Directors, Clause 2.4 of the CGC,
on professional skills and expertise,
after the election of new directors,
Clause 2 of Appendix 2 (2.18)
as well as a comprehensive study
one of the three committees
and Appendix 4 of the Listing Rules
of the matter. Their position
is chaired by an independent
of the Moscow Exchange and Clause
is unbiased, independent and free
director.
from the influence of other members
10 of the UK Corporate Governance
Code (FRC, 2018). In 2022, four
of the Board and PJSC PhosAgro's
The independence of Board
of the Board members (Victor
management, and they are primarily
members and nominees is assessed
Ivanov, Natalia Pashkevich, Victor
focused on improving PhosAgro's
biannually by the Remuneration
Cherepov and Andrey Sharonov)
performance. Since 1 July 2022,
and Human Resources Committee.
were recognised as independent.
D&O1 liability insurance
The company has been taking
liability for third-party losses incurred
for all independent non-executive
out D&O liability insurance every
in the exercise of duties by directors
directors by USD 2 mln. Apart
year since 2012. Under the current
and officers of PhosAgro is covered
from directors' liability, the above
insurance contract (insurance period
up to USD 50 mln in rouble
contract includes the liability
from 1 June 2022 to 31 May 2023),
equivalent, with a liability extension
of the Company's officers.
Assessment of the Board of Directors
GRI 2–18
In accordance with the CGC
recommendations, PhosAgro
assesses the performance of its
Board of Directors on an annual
basis, with external experts engaged
Approach to the Board
of Directors’ assessment
The Board assessment methodology
is based on international best
and the Corporate Secretary. Detailed
questionnaires were circulated
among directors to assess
the performance of the Board
and its committees. The findings
for this purpose once in three
practices, CGC recommendations
were supplemented by comments
years. In January 2023, IDA –
and the Listing Rules of the Moscow
and feedback from Board members
ESG and sustainable
development
3.5
Role of the Board
of Directors
4,0 3.5
Composition and structure
of the Board of Directors
3.2
Corporate
Secretary
assessment
3.6
Chairman
of the Board
of Directors
3.6
3,0
2,0
1,0
0,0
Organisation of
activities of, and
changes in, the
Board of Directors
3.5
Effectiveness
of the Board
of Directors
3.3
Liaising
with committees
3.5
3.4
Strategy
and risks
3.3
Senior management
engagement
3.1
External stakeholder
engagement
Association of Professional Directors
Exchange, and has been
and management during individual
The external assessment confirmed
of the Board of Directors,
In line with the CGC
conducted an external assessment
agreed with the Chairman
interviews. As part of the assessment,
that the Board and its committees
interaction with committees,
recommendations and international
of the Company's Board of Directors.
of the Remuneration and Human
the number of the Board’s focus
were functioning in accordance
the role of the Board Chairman,
best practice, PhosAgro will
Resources Committee
areas under review was increased
to eleven. Each of them received
a fairly high score.
with the recommendations
the performance of the Corporate
continue organising annual
of the CGC and the Listing
Secretary, and the Company's
self-assessment of the Board
Rules of the Moscow Exchange.
ESG and sustainability activities
of Directors and an external
Corporate governance practices
were noted as highly effective.
independent assessment every
in such areas as the organisation
of activities and operation
three years to ensure the continued
development and improvement
of PhosAgro's corporate governance
practices.
274
275
1 Directors & Officers Liability
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Members of the Board of Directors
as at 31 December 2022
Information on the members of the Board of Directors
GRI 2–11
For information on Xavier R. Rolet, Irina Bokova, Andrey G. Guryev, Andrey A. Guryev,
Sven Ombudstvedt and Marcus Rhodes who all left the Board of Directors in March
and July 2022 please see the 2021 integrated Annual Report of PJSC PhosAgro
on the Company’s website
Victor Cherepov
Alexander Sharabaika
Chairman of the Board of Directors at PhosAgro since 3 October 2022,
independent director
Year of election: 2022
Date of birth: 15 January 1951
Deputy Chairman of the Board of Directors at PhosAgro since 5 July
2022, Deputy CEO for Finance and International Projects at PhosAgro
Year of election: 2022
Date of birth: 25 February 1977
Professional experience
2018 – Pr. – AB Energo, Member
of the Board of Directors
2022 – Pr. – PhosAgro, Chairman
of the Board of Directors, Chairman
of the Audit Committee
2018 – Pr. – NPF BLAGOSOSTOYANIE,
Member of the Board of Directors
2022 – Pr. – Kashira Steel Structures
and Boiler Building Plant, Member
2016 – Pr. – Krasnoyarskii Kotelnyi
Zavod, Member of the Board
of the Board of Directors
of Directors
2022 – Pr. – Kompaniya Ust-Luga,
Member of the Board of Directors
2016–2020 – Public Council under
the Ministry of Health of the Russian
2005–2021 – Russian Union
of Industrialists and Entrepreneurs,
Executive Vice President, Managing
Director of the Department
of Relations with Regional
and Industrial Associations
2002 – Pr. – State University
of Management, Head
of the Department of Healthcare
and Sport Industry Management
Professional experience
2017–2019 – Apatit, Member
of the Management Board
Education
2022 – Pr. – PhosAgro, Deputy
Chairman of the Board of Directors
2019 – Pr. – PhosAgro, Deputy
CEO for Finance and International
Projects
2017–2018 – PhosAgro, Member
of the Board of Directors
2015 – Pr. – PhosAgro-Region,
Member of the Management Board
2018–2022 – PhosAgro, Member
of the Management Board
2014–2019 – PhosAgro, Director
for Economic Affairs and Finance
Belarus State Economic University,
Degree in Finance and Credit
University of Nottingham (UK),
Bachelor's degree in Finance
Moscow School of Management
SKOLKOVO, Executive Coaching
for the Development of Leaders,
Project Management
2021 – Pr. – RC Novotrans, Advisor
of Directors
Federation, Member of the Board
Education
2017 – Pr. – Apatit, Advisor to the CEO
(part-time)
2021 – Pr. – Russian Union
of Industrialists and Entrepreneurs,
2015 – Pr. – Pharmaceutical
and Medical Industry Investors Club,
Karaganda State Medical Institute,
Degree in General Medicine
Vice President for Social Policy
President
and Labour Relations
School of Medicine, Boston University
School of Public Health, USA
2020 – Pr. – Public Council under
the Ministry of Health of the Russian
Federation, Deputy Chairman
of the Board of Directors
2019 – Pr. – NPF BLAGOSOSTOYANIE,
Chairman of the Human Resources
and Remuneration Committee,
Member of the Strategic Planning
Committee
2010–2022 – Machine-Building
Factory of Podolsk, Member
MD, Professor, Member
of the Board of Directors
of the Russian Academy of Medical
and Technical Sciences, Member
2010 – Pr. – National Medical
Chamber, Member of the Council
of the International Academy
of Energy Information Sciences
for Professional Qualifications
in Healthcare
2008 – Pr. – Federal Compulsory
Health Insurance Fund, Member
of the Management Board
Victor Ivanov
Member of the Board of Directors at PhosAgro since 5 July 2022,
independent director
Year of election: 2022
Date of birth: 17 January 1943
Professional experience
2022 – 2023 – PhosAgro, Member
of the Board of Directors, Member
of the Remuneration and Human
Resources Committee
2017 – Pr. – Reatex, Member
of the Board of Directors
2017 – Pr. – AgroChimInvest,
Chairman of the Board of Directors
Education
2013 – Pr. – Pigment, Member
of the Board of Directors
2012 – Pr. – Russian Chemists Union,
President
Tomsk Polytechnic Institute, Degree
in Chemical Process Engineering
Academy of National Economy under
the USSR Council of Ministers
276
277
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Natalia Pashkevich
Member of the Board of Directors at PhosAgro, independent director
Year of election: 2017
Date of birth: 5 November 1939
Professional experience
2017–2022 – PhosAgro, Member
of the Board of Directors, Member
1999 – Pr. – St Petersburg Mining
University, First Vice Rector
2022 – Pr. – PhosAgro, Member
of the Board of Directors
of the Environmental, Health
and Safety Committee
2021 – Pr. – Priority 2030 Strategic
Academic Leadership Programme,
2009 – Pr. – National Research
University, Head of the development
Head of the programme
programme
Education
Leningrad Mining Institute,
Degree in Mining Engineering
and Economics, PhD in Economics,
professor
2016–2022 – SKOLKOVO Endowment
Fund, Director
2014 – Pr. – MC NefteTransService,
Chairman of the Board of Directors
Education
2016–2022 – Association
for the Development of Moscow
2014 – Pr. – Sovcomflot, Member
of the Board of Directors
Ufa Aviation Institute, Degree
in Aviation Instrument Making
School of Management SKOLKOVO,
(independent director), Member
Institute of Socio-Political Research
Managing Director
of the Innovative Development
under the Russian Academy
and Technical Policy Committee
of Sciences, PhD in Sociology
2016–2021 – Moscow School
of Management SKOLKOVO,
President
2015 – Pr. – Sovcomflot, Chairman
of the Audit Committee, Member
of the Compensation Committee
2015–2018 – VTB Bank, Member
of the Supervisory Council
2014–2022 – International Business
Leaders Forum, Chairman
of the Board of Trustees
2014–2019 – NOVATEK,
independent director, Chairman
Russian Academy of Public
Administration under the President
of the Audit Committee, Member
of the Russian Federation, Degree
of the Remuneration and Nomination
in Law
Committee
2009–2020 – National Research
University Higher School
Moscow School of Management
SKOLKOVO, Executive Coaching
for the Development of Executives,
of Economics, Professor (part-time)
Top Management Teams
at the School of Finance of the Faculty
and Organisations
of Economic Sciences
Andrey Sharonov
Member of the Board of Directors at PhosAgro, independent director
Year of election: 2017
Date of birth: 11 February 1964
Professional experience
2021–2022 – Sberbank, Vice President
2022 – Pr. – PhosAgro, Member
of the Board of Directors, Member
2020 – Pr. – Foundation
for Development
2019–2022 – Rosseti, Member
of the Board of Directors
(independent director), Member
of the Personnel and Remuneration
of the Audit Committee, Member
of the Centre for Elaboration
Committee
Professional experience
Ivan Rodionov
Member of the Board of Directors at PhosAgro from 5 July 2022 to
27 March 2023, non-executive director
Year of election: 2022
Date of birth: 30 November 1953
2014–2022 – AgroGard-Finance,
Member of the Board of Directors
2003–2021 – National Research
University Higher School
of the Remuneration and Human
and Commercialisation of New
Resources Committee, Member
Technologies (Skolkovo Foundation),
of the Strategy and Sustainable
Member of the Board of Directors,
Development Committee
Chairman of the Human Resources
2018 – Pr. – Medicina, Chairman
of the Board of Directors
2022–2022 – PhosAgro, Chairman
of the Board of Directors
and Compensation Committee
2017–2022 – PhosAgro, Member
of the Board of Directors, Member
2019 – Pr. – En+ Group, independent
non-executive director, Member
of the Audit Committee, Member
of the Remuneration and Human
2022 – Pr. – ESG Alliance, CEO
of the Audit Committee, Chairman
Resources Committee, Member
2021 – Pr. – Profilum, Chairman
of the Board of Directors
of the Corporate Governance
of the Sustainable Development
and Nominations Committee
Committee
2022 – Pr. – PhosAgro, Member
of the Board of Directors, Chairman
of the Remuneration and Human
2012 – Pr. – Interdepartmental
Analytical Centre, Member
of Economics, Professor (part-time)
Resources Committee, Member
of the Board of Directors
Education
of the Audit Committee
2017–2020 – IBS IT Services, Member
of the Board of Directors
2009–2021 – IC RUSS-INVEST,
Member of the Board of Directors
Higher education in Economics,
Lomonosov Moscow State University,
PhD in Economics, professor
278
279
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Alexander Seleznev
Yuriy Krugovykh
Member of the Board of Directors at PhosAgro since 5 July 2022,
Member of the Board of Directors at PhosAgro since 5 July 2022,
Chief of Staff for the CEO
Year of election: 2022
Date of birth: 6 July 1984
First Deputy CEO
Year of election: 2022
Date of birth: 29 May 1955
Professional experience
2022 – Pr. – PhosAgro, Member
of the Board of Directors
2019 – Pr. – PhosAgro, Chief of Staff
for the CEO
2019–2022 – PhosAgro, Member
of the Management Board
Education
2015–2019 – PhosAgro, Head
of Investor Relations
Bauman Moscow State Technical
University, Degree in Comprehensive
Information Security of Automated
Systems
Professional experience
2022 – Pr. – PhosAgro, Member
of the Board of Directors
2022 – Pr. – PhosAgro, Member
of the Management Board
2015 – Pr. – Apatit, Deputy CEO
for Information Policy (part-time)
Education
2013 – Pr. – PhosAgro-Region,
Member of the Management Board
Moscow University
for the Humanities, Degree in History
Siroj Loikov
Mikhail Rybnikov
Member of the Board of Directors, First Deputy CEO of PhosAgro
Year of election: 2022
Date of birth: 9 September 1972
2017–2018 – Apatit, Human Resources
and Social Policy Director
Education
2017–2018 – Apatit, Member
of the Management Board
Tashkent State University
of Economics, International
Economic Relations
Member of the Management Board, Member of the Board of Directors
and CEO at PhosAgro since 11 March 2022
Year of election: 2022
Date of birth: 30 November 1975
Professional experience
2022 – Pr. – PhosAgro, CEO
2022 – Pr. – PhosAgro, Member
of the Board of Directors, Member
2018–2020 – PhosAgro, First Deputy
CEO
2013–2022 – PhosAgro, Member
of the Management Board
2018–2019 – Apatit, Member
of the Management Board
2013–2018 – PhosAgro, Managing
Director (part-time)
2015–2018 – PhosAgro, Human
Resources and Social Policy Director
University of Nottingham (UK),
Bachelor's degree in Business
of the Management Board, Member
of the Strategy Committee, Member
2017–2018 – Apatit, CEO, Chairman
of the Management Board
Education
Professional experience
2022 – Pr. – PhosAgro, Member
of the Board of Directors
2020 – Pr. – PhosAgro, First Deputy
CEO
2020 – Pr. – Apatit, Advisor
to the CEO (part-time)
2015–2018 – Korporativnoe pitanie
(Corporate Nutrition), Member
2018–2020 – PhosAgro, Deputy CEO
of the Board of Directors
2018–2020 – Apatit, Deputy CEO
(part-time)
2015–2017 – PhosAgro-Cherepovets,
Human Resources and Social
2018–2019 – PhosAgro-Region,
Deputy CEO for Human Resources
(part-time)
2017–2018 – Tirvas, Member
of the Board of Directors
Policy Director, Member
of the Management Board
2013–2022 – PhosAgro, Member
of the Management Board
2013–2017 – Izumrud, Member
of the Board of Directors
Management
Moscow School of Management
SKOLKOVO, Executive Coaching
for the Development of Leaders,
Project Management
of the Sustainable Development
Committee
2016–2022 – PhosAgro, Member
of the Board of Directors, Chairman
Lomonosov Moscow State University,
Master’s degree in Economics
2021–2022 – PhosAgro, Deputy CEO
of the Environmental, Health
Moscow School of Management
2020–2021 – PhosAgro, Managing
Director
and Safety Committee, Member
SKOLKOVO, Executive Coaching
of the Strategy Committee, Member
for the Development of Executives,
of the Sustainable Development
Leadership In Action
2018 – Pr. – NIUIF, Member
of the Board of Directors
2018 – Pr. – Apatit, Advisor to the CEO
(part-time)
Committee
2016 – Pr. – PhosAgro-Region,
Member of the Management Board
2015–2017 – PhosAgro-Cherepovets,
CEO, Chairman of the Management
Board
280
281
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Corporate Secretary
Committees of the Board of Directors
The Corporate Secretary
and interests, and support provided
The operating procedures
is responsible for day-to-day
to the Board of Directors to ensure its
of the Corporate Secretary
interactions with the shareholders,
efficient performance. The Corporate
are governed by the Regulation
coordination of the Company’s
Secretary is appointed by the Board
on the Corporate Secretary approved
efforts to protect shareholder rights
of Directors.
by the Company’s Board of Directors.
For more information, please visit
the Company’s website
Sergey Samosyuk
Year of appointment: 2016
Date of birth: 1 October 1976
Professional experience
2016 – Pr. – PhosAgro, Corporate
Secretary
Achievements
2022 – Pr. – PhosAgro, Advisor
to the Deputy CEO for Sales,
Marketing and Logistics (part-time)
Education
2020 Director of the Year National
Award for the best corporate
governance directors / corporate
St Petersburg State University
secretaries.
2021 – Pr. – AgroGard-Finance,
Member of the Board of Directors
of Economics, Degree in Engineering
and Economics
2021 – Pr. – Giproruda, Member
of the Board of Directors
St. Petersburg University, Degree
in Law
2017 – Pr. – Apatit, Advisor to the CEO
(part-time)
National Research University Higher
School of Economics, Executive MBA
The committees of the Board
of Directors are advisory
and consultative bodies
made up of the current Board
members with relevant
experience and expertise
in specific focus areas.
The committees can
also engage external
experts and consultants
in their work. The primary
role of the committees
is the preliminary
consideration of key issues
submitted for review
by the Company’s Board
of Directors.
The new Board
of Directors
at its meeting on 5 July 2022
(Minutes w/o No. dated 6 June
2022) set up three committees:
Audit
Remuneration
and Human Resources
Strategy and Sustainable
Development
282
283
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review
Information on committees’ performance
Audit Committee
The Committee’s activities are governed by the Regulations
on the Audit Committee.
For more information, please visit the Company’s website
Committee members
as at 31 December 2022
First and last
name
Position
Victor
Cherepov
Ivan
Rodionov
Andrey
Sharonov
Committee
Chairman,
independent
director
Committee
member, non-
executive director
Committee
member,
independent
director
Key highlights in 2022
periods. That said, the reporting
In the reporting year, the Committee
year saw Committee members
In 2022, the Committee expanded
•
review of the external auditor plan
All additional services related
its scope to include the review
for the assurance of 2022 financial
and unrelated to audit were duly
focused on the quality, reliability
consider such initiatives to improve
of the key investment projects
statements;
approved by the audit partner,
and timeliness of financial and non-
reporting perception and increase
as regards reporting capital
• approval of the plan and budget,
as well as by the Chairman
financial corporate reporting.
its reliability and accuracy as drafting
expenditures in financial statements,
and assessment of the Internal
of the Audit Committee,
an audit and assurance policy, ISAE
and procurement reporting in 2022
Audit Department's performance;
with due regard to appropriate
The prevailing uncertainty had
3000-based external assurance
an impact on preparations
(full instead of limited assurance)
of financial statements, with changes
and an independent assurance
to the Group's structure bringing
of metrics in compliance with TCFD
about the readjustments
recommendations. The high quality
of the accounting system, processes
of our 2021 non-financial reporting
and reporting.
as assessed by the Board of Directors
was confirmed by expert opinion
on the back of import substitution.
• analysis of the Company's
independence considerations.
Ongoing tasks in 2022
During the reporting period,
compliance with Russian
and European legislation
on the protection and use
the Audit Committee held five
of insider information;
in-person meetings, where 30
•
review of compliance
matters were considered, mainly
with the CGC;
in the following areas:
• discussion with legal and tax
Based on the 2022 results,
and numerous awards received at
• analysis, review and discussion
department heads about ongoing
The Committee’s statistics
the Committee is happy to report
national competitions.
including in person /
via video
Matters
5
6
5
30
35
27
an invariably high quality of financial
reporting and observance
The Committee initiated drafting
of previously established release
the Company's Tax Strategy which
deadlines, despite a significant
seeks to articulate PhosAgro's
transformation of the Company's
stance on operational principles
operations.
and strategic goals in taxation,
and inform key stakeholders
of the Company's annual
financial and operating
issues that may have an impact
on financial statements.
performance based on the IFRS
consolidated financial statements,
including reasons for changes
External auditor
The Committee's approach
as compared to the previous
to the assessment
periods and obtaining a clear
of the independence
understanding of the disclosures;
and effectiveness
Non-financial reporting is becoming
thereof. The Committee discussed
•
review of quarterly IFRS
of the external audit process,
increasingly important on its
the draft tax strategy twice
agenda, with ESG disclosures
during the year, and the Board
condensed consolidated financial
as well as to the appointment or
statements, along with ensuring
reappointment of the external
Victor Cherepov,
Chairman of the Audit Committee
discussed at several meetings
of Directors approved it in August
the adequacy of disclosures;
auditor is comprehensively described
during the year. In particular,
2022 based on the Committee's
the Committee made a detailed
recommendations. Tax matters
analysis of non-financial disclosure
were a special focus area
•
review and discussion
in the External Auditor Selection
of the results of the annual
and Cooperation Policy of PJSC
audit and quarterly reviews
PhosAgro approved by the Board
trends and reviewed the quality
and featured twice on the meeting
by the external auditor
of Directors in April 2021.
and completeness of ESG reporting
agenda.
in accordance with RAS and IFRS;
2022
2021
2020
in 2021 as compared to previous
For more information, please visit
the Company’s website
284
285
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Remuneration and Human Resources Committee
The Committee’s activities are governed by the Regulations
on the Remuneration and Human Resources Committee
For more information, please visit the Company’s
website
Committee members
as at 31 December 2022
Committee
member
Position
Ivan Rodionov Committee
Victor Ivanov
Andrey
Sharonov
Chairman, non-
executive director
Committee
member,
independent
director
Committee
member,
independent
director
Key highlights in 2022
•
review of workforce composition
The Committee focused
in companies belonging
on the following:
to PhosAgro Group as regards
• assessment of professional skills,
diversity, gender equality
independence, engagement
and inclusion;
and important external
• best practice guidance
nominations or appointments
and analysis following
to the Board of Directors;
• performance assessment
of the Company’s executive
the appraisal of the Board
of Directors’ performance.
bodies, other key employees,
Both when initially assessing
Industry Investors Club, Novotrans,
Krasnoyarskii Kotelnyi Zavod, AB
Energo, Kompaniya Ust-Luga,
Kashira Steel Structures and Boiler
Building Plant, and others.
• Victor Ivanov: Russian Chemists
Union, AgroChimInvest, Reatex,
Pigment.
• Andrey Sharonov: ESG Alliance,
Sovcomflot, MC NefteTransService,
Profilum, En+ Group, Medicina,
and the Corporate Secretary;
nominations to the biannual Board
and others.
• assessment of the incentive
of Directors and subsequently
system for the members
when finalising its composition,
of executive bodies and other key
the Committee decides which
employees;
reasons should disqualify members
The Committee’s statistics
• assessment of social
from serving on it.
Including in person
Matters
3
4
5
12
16
14
2022
2021
2020
and employee training
programmes, including
the progress towards
While preparing the shareholder
information for the Annual General
a sustainability target approved
Meeting, the Committee, among
in the Strategy to 2025 –
other factors, analysed the effect
the number of employee training
of important external nominations
hours;
of independent directors on their
•
review of the outcomes
ability to duly discharge their
following the annual staff loyalty
responsibilities as tPhosAgro's Board
and satisfaction survey, including
members.
progress towards a sustainability
target approved in the Strategy
Independent directors’ external
to 2025 – integrated employee
nominations as at 31 December 2022:
loyalty index;
• Victor Cherepov: Russian
• analysing the alignment
Union of Industrialists
of the Company's goals, values
and Entrepreneurs, State
and strategy with its corporate
University of Management,
culture;
Pharmaceutical and Medical
• Natalia Pashkevich: St. Petersburg
Mining University
The Committee found that
the above external appointments
did not prevent the Board
members from duly discharging
their responsibilities, while also
maximising their contribution
to the Company’s growth.
Ivan Rodionov,
Chairman of the Remuneration
and Human Resources Committee
from 5 July 2022 to 27 March 2023
286
287
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Strategy and Sustainable Development Committee
GRI 2–16
The Committee’s activities are governed by the Regulations on the Strategy
and Sustainable Development Committee
For more information, please visit the Company’s website
Committee members
as at 31 December 2022
Key highlights
and performance in 2022
and ESG metrics, including those
set in the Climate and Water
In terms of environmental
areas of the Company's climate
The Committee reviewed
protection, the reporting period saw
agenda. The reporting year saw
matters related to stakeholder
Committee
member
Alexander
Sharabaika
Mikhail
Rybnikov
Andrey
Sharonov
Position
Committee
chairman, executive
director
Committee
member, executive
director
Committee
member,
independent
director
In 2022, the sustainability
strategies approved in 2020, against
an ongoing decline in environmental
the completion of the project
engagement, identification of
management framework underwent
the Strategy.
the most significant changes
ever. In July, the new Board
Based on the 2022 results,
of Directors decided to establish
we are happy to announce
the Strategy and Sustainable
that we are firmly on track
Development Committee and vested
towards the Strategy to 2025
it with the majority of functions
goals in production and sales
impact per product unit. We take
and a number of important results
material topics to be disclosed
consistent efforts to reduce such
delivered.
impact and achieve the desired
in the 2021 integrated Annual
Report, and the Report’s overall
environmental effect. The Company
The new Committee continued
concept and standards we relied
also designed biodiversity protection
the dissolved Sustainable
on when preparing it. Also, after
programmes for its Cherepovets,
Development Comittee's work
analysing the quality of disclosure
Volkhov and Kirovsk sites.
to monitor and regularly update
and feedback regarding the
previously pertaining to the three
as well as in social and environmental
the action plan to improve ESG
2021 integrated Annual Report,
previously existing committees:
domains.
the Strategy Committee,
We made strong progress
ratings. We consider this practice
the Committee gave a positive
in improving energy efficiency.
to be effective in terms of developing
appraisal of the Company’s non-
the Environmental, Health and Safety
The key achievements include
In 2022, similarly to the last few years,
and prioritising organisational
financial disclosure practices.
The Committee’s statistics
Committee, and the Sustainable
a more than 50% reduction in total
consumption rates for major energy
and technical sustainability
2
14
Including in person
Matters
Development Committee.
injuries with LTIFR (Lost Time Injury
resources showed a steady decline.
measures, and intend to maintain
Following proposals received
Frequency Rate) per 1 million hours
this approach going forward.
from the Board of Directors
The decision was underpinned
at 0.32 for in-house staff and 0.38
by the awareness of the key role
for in-house and contractor staff.
sustainability plays in defining
There was also a 67% reduction
The Committee continued
as part of the self-assessment,
to monitor and regularly update
The Committee paid due
the Committee invited other
the Energy Efficiency Programme.
attention to the Bank of Russia's
Board members to discuss such
the Company's strategy, as well as its
in injury severity among in-house
Approved in 2020, it covers all our
recommendations on integrating
items as agricultural challenges
paramount importance in managing
staff. As regards other positive
such aspects of the Company's
results in 2022, the Company
operations as environmental
successfully implemented long-term
projects and initiatives designed
ESG and sustainability practices
and trends and PhosAgroGroup's
to reduce energy consumption.
into the Company's operations
sustainability innovations.
(letter dated 16 December
protection, occupational health
programmes, and its management
As the Board of Directors approved
2021). Its members separately
We also remained focused
and safety and energy efficiency.
and the Board of Directors
the Climate Strategy in December
considered the results of the Board
on regulatory compliance,
maintained a strong focus on health
2020 and the low-carbon transition
of Directors' self-appraisal as regards
reviewing, among others,
As a successor to the Strategy
and safety, including prevention
Committee, the new Committee
of emergencies, incidents, fires
focused on monitoring
and traffic accidents.
the progress against the Strategy
to 2025 approved in 2019.
We completed the first stage
Following the Board of Directors'
of the three-year Safety Culture
recommendations issued upon
Transformation Project to 2024
approval, the Committee regularly
seeking to achieve the safety
plan was put into action, monitoring
the evaluation of ESG practices
draft laws, which are yet
of activities specified in these
in accordance with the Bank
to be considered and approved..
documents remained an important
of Russia's recommendations,
item on the Committee's agenda.
and approved an action plan
That said, the Committee placed
a special emphasis on monitoring
Sustainability reporting
and overseeing the climate
and disclosure supervision
to further strengthen them.
checks such actual metrics
culture level of 3.1 as per the Bradley
project initiated by Apatit's Project
were among key agenda items
as production volumes, sales
curve, and the initiative to improve
Execution and Management
as well.
in priority markets, expansion
the safety of high-risk operations.
Department to centralise all
of sales and transport infrastructure
Alexander Sharabaika,
Chairman of the Strategy
and Sustainable Development
Committee
288
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Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Executive bodies
Breakdown and number
of matters considered
2022
2021
2020
4
4
6
4
8
4
Revision and approval
of PhosAgro’s quarterly
and annual budgets
Review of operating
and financial reports
In charge of PhosAgro’s day-to-
day operations are two executive
bodies accountable to the Board
of Directors:
•
the collegial body (Management
Board) and
•
the sole executive body (CEO).
In 2022, the Management Board held
four meetings and reviewed eight
items most of which were related
to the budget discipline.
Number of Management
Board meetings
2022
2021
2020
8
10
12
At least twice a year (after
the end of the previous calendar
year and on election of a new
Management Board), the CEO
submits a report on the performance
of PhosAgro's executive bodies
to the Board of Directors for review
and approval.
We ensure that the executive
management focuses on PhosAgro
Group's strategy and long-term
sustainable business development
for the benefit of our shareholders
and other stakeholders by linking
executive remuneration
to the Company's goals and values,
as well as ESG KPIs.
For more information, see
page 292
Changes in the Management Board composition
The following changes
were elected: Mikhail Rybnikov,
was approved at three. Since that
to the Management Board
Yuriy Krugovykh, Siroj Loikov,
date and as at 31 December 2022,
took place in 2022. On 11 March
Alexander Seleznev, Alexei Sirotenko,
members of the Management Board
2022, the following members
and Alexander Sharabaika.
are Mikhail Rybnikov, Alexei Sirotenko
of the Company's collective
In May 2022, the number
and Dmitry Morozov.
executive body (Management Board)
of Management Board members
Information on members
of the Management
Board
For information on Andrey A. Guryev and Sergey
Pronin, who all left the Board of Directors in March
2022, please see the 2021 integrated Annual Report
of PJSC PhosAgro on the Company’s website
Mikhail Rybnikov
Member of the Management Board,
Member of the Board of Directors
and CEO at PhosAgro since 11 March
2022
Year of election: 2022
Date of birth: 30 November 1975
For more information on Mikhail
Rybnikov, please see page 86.
Alexei Sirotenko
Member of the Management Board,
Deputy CEO of PhosAgro for Corporate
and Legal Affairs, Legal Affairs Director
at Apatit
Year of election: 2013
Equity interest / Stake of ordinary
shares: None
Date of birth: 3 January 1969
Professional experience
Education
2017 – Pr. – Apatit, Legal Affairs
Director
2013 – Pr. – PhosAgro, Member
of the Management Board
Lomonosov Moscow State University,
Degree in Jurisprudence, Lawyer.
2017–2019 – Apatit, Member
of the Management Board
2010 – Pr. – PhosAgro, Deputy CEO
for Corporate and Legal Affairs
(part-time)
Key competencies
•
Law and corporate governance
2015–2017 – PhosAgro-Cherepovets,
Legal Affairs Director, Member
of the Management Board
Dmitry Morozov
Member of the Management Board, Advisor
to the CEO of PhosAgro
Year of election: 2022
Equity interest / Stake of ordinary
shares: None
Date of birth: 5 June 1964
Professional experience
Education
2022 – Pr. – PhosAgro, Member
of the Management Board
2019–2022 – PhosAgro, Director
for Economic Affairs
2022 – Pr. – Apatit, Director
for Economic Affairs
2015–2019 – PhosAgro, Director
for Economic Affairs and Finance
2022 – Pr. – PhosAgro, Advisor
to the CEO (part-time)
Moscow State Institute
of International Relations (Russia),
Degree in International Economic
Relations as an Economist
for International Economic Relations
Key competencies
•
•
Strategy and innovation
Finance and audit
290
291
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Remuneration report
GRI 2–19, 2–20
Board of Directors remuneration
When deciding on the Board
conditions and shall be sufficient
remuneration. The existing amounts
remuneration ranges from
of fixed and variable components
of the Company’s CEO, a number
composition, the General Meeting
to enable the Company to attract,
and rules for determining and paying
30% to 150% of the annual base
of remuneration.
of Shareholders approves the amount
motivate and retain highly skilled
remuneration and compensation
salary and depends on the level
of indicators are used, which
aim to improve the efficiency
and the rules for determining
professionals to help drive the future
to the Board members were approved
of the position held and the functional
KPIs for each senior manager are set
of investments and sales, control
and paying remuneration
growth and performance.
by the General Meeting
area of the manager.
annually and take into account
costs, and reduce employee injury
and compensation to the Board
of Shareholders on 30 June 2022.
The Remuneration and Human
metrics related to operational
rates for the Company and its
The amount of additional
ensures an effective proportion
To assess the performance
members. The Board remuneration
At the same time, the Company
shall be in line with current market
avoids higher-than-necessary
Resources Committee of the Board
efficiency and individual contribution
contractors.
of Directors, during its annual
to the corporate growth and strategic
evaluation of the incentive system,
performance.
The report on the voting results of PhosAgro’s General Meeting
of Shareholders dated 30 June 2022 is available on the Company's
official website
Board of Directors remuneration, RUB
Full name of the member of the Board
of Directors:
Sven Ombudstvedt
James Rogers
Marcus Rhodes
Andrey Sharonov
Xavier Rolet
Irina Bokova
Ivan Rodionov
Victor Cherepov
Victor Ivanov
Total
2020
2021
2022
peers.
27,111,960.00
22,593,300.00
22,593,300.00
13,555,980.00
27,111,960.00
22,593,300.00
–
–
–
26,561,520.00
22,134,600.00
22,134,600.00
13,280,760.00
26,561,520.00
22,134,600.00
–
–
–
135,559,800.00
132,807,600.00
12,171,879.00
10,143,232.50
10,143,232.50
14,418,297.00
5,717,786.80
5,115,232.97
9,581,287.50
12,746,475.00
5,748,772.50
85,786,195.77
manufacturers
and PhosAgro's
EV/EBITDA. EV/
EBITDA reflects
investors' estimate
of the Company's fair
market value and its
investment case.
The goal is to increase
the spread.
In addition, KPIs of N-1 level
managers include indicators that
help benchmark the Company’s
performance against industry
1
Change in spread
between average EV/
EBITDA of public
phosphate fertilizer
2
Excess of PhosAgro's
ROIC – WACC spread
over the average ROIC –
WACC spread of public
peers. The indicator
reflects how much higher
the Company's return
on investment is than
the cost of capital (equity
and debt), and how
efficient the Company's
investments are compared
to other companies
in the industry. The goal
is to increase the indicator.
Remuneration of the management
Remuneration principles
of the incentive system, evaluating
of additional tasks, as determined
Values of the CEO KPIs in the range
of minimising the risks arising
on the nature of a particular
its effectiveness and, if necessary,
by the Board of Directors
of base case / target / challenge,
from incentivising excessively risky
manager's focus area with due
The Company's remuneration policy
making recommendations for its
and the CEO for the reporting
as well as their actual values
management decisions.
regard to their strategic fit. Specific
for executive bodies and other
improvement.
key employees is determined
by the Board of Directors based
The remuneration due
period, as well as the Company's
achievement of the EBITDA target.
at the end of the reporting period
KPI wordings and their weights
are approved by the Chairman
KPIs of the CEO and N-1 level
are established by PhosAgro's KPI
of the Board of Directors. Taken
managers, including sustainable
Committee, taking into account
on the recommendations
to the Company’s senior executives
All KPIs are aligned
together, these indicators contribute
development indicators,
the opinion of the KPI holder
of the Remuneration and Human
consists of a monthly base salary plus
with the Company’s strategic
to the achievement of the Company's
are cascaded down and decomposed
and their immediate supervisor.
Resources Committee.
additional compensation payable
goals defined in its Strategy
strategic goals and serve
into KPI scorecards of lower-level
The Remuneration and Human
is linked to achieving the Company’s
achievement.
both in terms of the Company's
themselves and their weights
Group were benchmarked against
twice a year. Additional remuneration
to 2025 and oriented towards their
the interests of shareholders
management. The indicators
In 2022, 307 officers of PhosAgro
Resources Committee conducts
KPIs and completeness
a detailed bi-annual review
and quality of accomplishment
development and in terms
are modified depending
1,717 KPIs.
292
293
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Number of officers
holding KPIs by year:
2022
2021
2020
2019
307
280
277
106
Top 3 KPI driven
areas
Commitment
to sustainability
38%
of KPIs
Expansion of production
capacities through
improved operational
efficiency
33%
of KPIs
Development in high-
potential areas
24%
of KPIs
As can be seen from the above
When determining the amount
statistics, PhosAgro Group is focused
of additional annual remuneration
on sustainable development,
for the top management, we look
Remuneration of members
of executive bodies
and the KPI framework includes
at the achievement of the EBITDA
The amount of remuneration
the following indicators:
target as an integral indicator
and additional compensation due
•
reduction of unit pollutant
of the Company's performance.
to PhosAgro’s CEO is regulated
emissions to the atmosphere;
The managers' performance
by a contract between them
• share of waste recycling,
is adjusted by the percentage
and the PhosAgro, which is signed
neutralisation and processing;
of delivering on the EBITDA target.
by the Chairman of the Board
•
implementation of key social
The Company does not provide
of Directors. The total remuneration
projects;
• % of completion
for any compensation payable
reflects the CEO’s qualifications
to managers in case of their
and their personal contribution
of the programme to improve
dismissal or voluntary resignation
to PhosAgro's financial results.
social and working conditions;
or the Company’s takeover or
• zero accidents;
the change of its owner (golden
No loans were extended to members
• zero occupational injuries among
parachutes). Neither does it
of the Board of Directors
the Company and contractor
use options, pre-determined
or the Management Board
employees.
unconditional bonuses or a clawback
as at 31 December 2022.
mechanism.
Remuneration paid to the CEO and six other Management Board members
who represent the senior management team, RUB '000
Pay type
Total, including
salary
bonus
other types of remuneration
fee
2020
1,098,922.60
421,033.0
677,807.1
82.5
0
2021
1,422,622.4
399,548.2
1,023,035.3
78.9
0
2022
1,020,231.4
214,350.2
805,881.2
0
0
External auditor’s remuneration
PhosAgro engaged JSC Technologies
In 2022, Technologies of Trust –
partner, as well as by the Chairman
of Trust – Audit to audit its 2022
Audit rendered audit-related
of the Audit Committee
IFRS consolidated financial
services to the Company for a total
of PhosAgro's Board of Directors,
statements. The actual remuneration
of RUB 3 mln, net of VAT. Also,
with due regard to appropriate
paid to the auditor for this
during 2022, other contracts
independence considerations.
service stood at RUB 36.0 mln,
were concluded for the provision
net of VAT and overhead costs;
of non-audit services to PhosAgro
The actual remuneration
for 2021, the amount paid was
in the amount of RUB 2.3 mln,
of Unicon to audit PhosAgro’s RAS
also RUB 36.0 mln.
net of VAT. All additional services,
accounting statements for 2022
related and unrelated to audit,
was RUB 683,700, net of VAT, up 10%
were duly approved by the audit
year-over-year.
294
295
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Corporate controls
GRI 2–12
Risk management and internal control
The risk management and internal
over the financial and business
the status and effectiveness
control framework is a set
operations of the Company.
of risk management initiatives.
of organisational measures, methods,
The monitoring results serve
practices and standards of corporate
The Annual General Meeting
as a basis for the relevant proposals
culture. It also embraces actions
of Shareholders held in June 2022
issued by the Commission
taken by the Company to strike
elected the following members
to executive bodies and the Board
Organisational structure of the risk management and internal control framework
the right balance between value
to the Review Committee:
of Directors.
Audit
Committee
Board of Directors
Review
Committee
Executive bodies
(Management Board
and CEO)
Internal Audit
Department
Risk Management
and Internal Control
Department
Other structural
departments
growth, profitability and risks,
• Lusine Agabekyan, Deputy
support sustainable development,
Head of Group Financial Control
and ensure efficient operations,
and Management Reporting
protection of its assets, compliance
at PhosAgro;
Following the audits, the Internal
Audit Department provides
the Board of Directors and executive
with applicable laws and internal
• Ekaterina Viktorova, Deputy Head
bodies with recommendations
documents, along with timely
of Treasury at PhosAgro;
and reports, including, among other
and accurate reporting.
• Olga Lizunova, head of unit
things, the assessment of the current
The Board of Directors defines
the key principles of, and approaches
to, risk management and internal
(functional in other areas),
status, reliability and effectiveness
budgeting office, Economics
of the corporate governance, risk
Department at Apatit.
management and internal control
framework.
controls, oversees the Company's
The Review Committee’s
executive bodies, and performs
goals, objectives and powers
other key functions, including
are outlined in the Regulations
setting the overall risk appetite
on Review Committee of PhosAgro
The Risk Management and Internal
Control Department is charged
with the general supervision
and reviewing material risks
as approved by the General Meeting
of risk management, including
and ways to manage them.
of Shareholders on 12 May 2011.
related activities, and consolidated
reporting to the Board of Directors
The Board's Audit Committee
focuses on assessing and making
The Committee endorsed PhosAgro’s
and executive bodies.
financial statements for 2022,
proposals to improve the risk
with its report dated 28 February
management and internal controls.
2023 included in the materials
On top of that, its members
for the shareholders to prepare
As part of their duties, heads
of other organisational units
are responsible for building,
supervise the preparation
of accounting (financial)
statements and the measures taken
to prevent fraudulent behaviour
of the Company's employees or third
for the Annual General Meeting
documenting, implementing,
of Shareholders.
monitoring and developing the risk
management and internal control
The executive bodies establish
and maintain an efficient risk
framework in their respective
functional areas. The framework
parties.
management and internal control
requires the Company's employees
The Review Committee
elected by the General Meeting
framework.
to identify and assess relevant
risks and efficiently implement
To this effect, they have set up
the controls and risk management
of Shareholders exercises control
a Risk Commission that monitors
initiatives.
Administrative reporting
Functional reporting
For the full text of PhosAgro's Regulations
on Review Committee, please visit our website
296
297
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Risk management
Audit of business processes
governance. The Internal Audit
by holding regular trainings, which
In 2022, PhosAgro’s risk
control framework. The Board
• analysis of key risk indicators;
Department also conducted
focus on sourcing data from
management and internal
of Directors reviewed the results
• development of corrective actions;
The audit plan along with the
an IT audit of the automated
information systems and further
control framework continued
of the framework’s independent
•
follow-up control and review.
budget of the Internal Audit
process control system. The audits
processing and visualising it. We will
performing strongly thanks to timely
external assessment, which showed
Department for the calendar year
were followed by proposals to improve
continue these efforts in 2023.
identification and assessment
that it was on par with those adopted
In addition, in 2022, the Company
is subject to review, discussion
efficiency of procurement processes,
of risks, as well as development
by the industry’s leading companies,
rearranged a number of risks
and approval by the Audit Committee
streamline the approach to inventory
and implementation of risk
including:
in different focus areas, including
management measures.
• compliance with applicable
the continuity of procurement,
and the Board of Directors. Audits
management and improve
are performed at the Company level,
cooperation between business
Self-assessment
and external assessment
On a quarterly basis, the Board
regulatory requirements;
logistics, and software and IT
as well as at specific subsidiaries
units. The management developed
The internal audit quality is assured
of Directors reviewed reports
• adoption of most of the leading
infrastructure operation, on the back
and their standalone business
and approved corrective action
through regular external independent
on the management of PhosAgro's
risk management practices such
of geopolitical developments.
units. In addition, the Internal
plans, with the progress monitored
assessments and self-assessment.
key risks. PhosAgro’s executives
as alignment with the Company’s
paid special attention to managing
development strategy, risk
Plans for 2023
these key risks. The Risk Commission
appetite, key risk indicators,
Audit Department monitors
by the Internal Audit Department.
the effectiveness and efficiency
An external independent assessment
of corrective actions taken
The 2023 audit plan includes audits
takes place once every three years.
continuously monitored the status
automation and robotisation
PhosAgro Group looks to maintain
by the management following
of personnel management, cash
The latest one was conducted in late
of risk management activities and,
in risk management,
and further develop the existing
the audit, and reports to the Audit
and CAPEX management. It also
2021 by PwC.
when necessary, initiated changes
as well as integration
elements of its risk management
Committee on a quarterly basis
covers an IT audit of sales units, review
to improve those related to key risks.
into the Company’s incentive
framework based on the best
and to the Board of Directors annually.
of the IT strategy alignment and audit
In late 2022, the Internal
system and governance
practices, while also taking
framework.
into account the changing external
Development of the risk
management and internal
control framework in 2022
The reporting year saw both
the production sites and PhosAgro
Group as a whole complete a full-
The Company is making
year cycle of risk management
a consistent effort to develop its
and internal control, including:
risk management and internal
• ongoing risk monitoring;
Internal audit
and internal factors.
For information on key risks
and risk management, see
the Strategic Report section on 70
Revision and approval
of PhosAgro’s quarterly
and annual budgets
Review of operating
and financial reports
PhosAgro’s Internal Audit
and Economic Security Departments,
Audits
Department assists the Company’s
and the Company management.
executive bodies and the Board
of Directors in improving
Internal audit goals, objectives
the management of business
and powers are outlined
processes and enhancing
in the Internal Audit Policy
the internal control and risk
as approved by the Board of Directors
management framework. In doing
on 18 May 2021. The Company’s
this, it uses a risk-oriented approach
internal audit procedure is set out
and works closely with the Risk
in the Internal Audit Guidelines.
2022
2021
2020
5
15
4
16
6
16
Management, Internal Control
Scheduled
Unscheduled
For the full text of PhosAgro's Internal Audit Policy, please visit
our website
In 2022, the Internal Audit Department
fully met the annual action plan.
The audits covered PhosAgro
of ESG targets.
Team development
Audit Department held a self-
assessment of its compliance
with the International Standards
for the Professional Practice of Internal
Group’s business processes related
In order to achieve the strategic
Auditing and the Institute of Internal
to the procurement of goods,
goals in internal audit, we continue
Auditors’ Code of Ethics. The self-
works and services, inventory
working to develop and diversify
assessment showed the Department’s
management and corporate
the competencies of our team
full compliance with all applicable
standards and requirements.
Awards
In April 2023, the Expert
Council of the 10th Internal
Auditor of the Year
national competition
named PhosAgro's
Internal Audit Department
a winner in the Internal
Audit Service of the Year
category.
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299
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review External audit
Inside information
A key element of the Audit
of the non-audit services does
between the audit team
PhosAgro has adopted the Inside
First and foremost, these include
The audit conducted by the Internal
Committee’s operations is ongoing
not call into question the ability
and the Chairman of the Audit
Information Regulations compliant
the limitations on the use
Audit Department in 2021
interaction with external
auditors and development
to perform the audit service
Committee held prior
independently and impartially.
to the Committee meetings.
of recommendations for the Board
The Committee’s assessment
with the Russian laws and the EU
of inside information and trading
identified no material violations
Market Abuse Regulation (MAR).
in the Company’s securities.
of the applicable laws and the Inside
Depending on the group,
Information Regulations. In January
of Directors regarding the choice
of the auditor’s independence
PhosAgro’s auditor performs
In accordance with its provisions,
an insider may be prohibited
2022, following the 2021 audit
and approval of auditors. When
is also significantly influenced
the audit of its financial and business
the Corporate Secretary Office keeps
from such transactions or obliged
an action plan was adopted
selecting an auditor, we evaluate
by the auditor’s internal
operations in compliance
a list of insiders, persons discharging
to notify PhosAgro or obtain its
to improve engagement
the following factors in addition
procedures for controlling
with Russian laws and regulations
managerial responsibilities (PDMR)
consent for such transactions. Every
with insiders and inside information
to the cost of their services:
• composition of the audit
the impartiality and professional
and the agreement signed
ethics of the auditor's staff,
with the Company. The auditor
and persons closely associated
quarter, the Corporate Secretary
management. The plan was fully
with them (PCA). The Regulations
Office checks the list of shareholders
implemented in the reporting year.
team (in terms of experience
including requirements
is approved by the Company’s
define the scope of responsibilities
to identify transactions that may
and qualifications), which should
for periodic rotation of the audit
General Meeting of Shareholders.
for each insider group, which
have been executed in breach
In 2022, the Board of Directors
ensure that the statements
partner, training arranged in this
The Company engaged JSC
the Corporate Secretary Office
of such limitations. The checks
approved a revised version
are audited within acceptable
area and the use of specialised
Technologies of Trust – Audit (10
from time to time communicates
showed that in 2021 and 2022
of the Inside Information
deadlines and with adequate
software to perform the respective
Butyrsky Val, Moscow, Russia)
to respective persons.
no changes were made
Regulations.
quality;
audits;
to audit its 2022 IFRS financial
•
the auditor’s independence
• balance between the benefits
statements.
evaluated based on a variety
of long-term cooperation
of factors, including assessment
with the auditor and the need
The Company’s 2021 RAS accounting
of the scope of non-audit
services provided to us
for a fresh look at PhosAgro's
statements were audited by JSC
financial statements
Unicon (8 Preobrazhenskaya
by the candidate company
and preparation procedures;
Ploshchad, Preo 8 Business Centre,
during the relevant periods. Each
•
the auditor’s performance
Moscow, Russia).
offer from the current auditor
over the previous period.
for non-audit services requires
The Committee may form
The approach to assessing external
confirmation by the audit partner
its opinion on the quality
audit’s independence and efficiency,
to make sure there is no risk
of the external auditor’s work
as well as appointment and
to independence and is submitted
during in-person Committee
re-appointment of the external
to PhosAgro's Audit Committee
meetings, where the external
auditor is set out in the External
for consideration and approval.
auditor’s mandatory participants
Auditor Selection and Cooperation
The Committee consents
are a manager and the partner,
Policy of PhosAgro as approved by the
to the shareholding structure
as a result of transactions unreported
by insiders.
For the full text of the Inside Information
Regulations, please visit our website
Information security
GRI 3-3
to the contract only if the scope
as well as during meetings
Board of Directors on 14 April 2021.
The Information Security Policy
information security. Its adoption
need to respond to the hazards
For the full text of the External Auditor Selection and Cooperation Policy
of PhosAgro, please visit our website)
For more information on the auditors, their selection procedure and independence
evaluation, please see the Company’s semi-annual reports, as well as the respective
section of this Report that discusses the Audit Committee’s activities on page 284
and in the Remuneration Report and the Remuneration Report.
is the Company’s fundamental
ensues from the risks and hazards
and minimise the risks.
document defining the general
faced by the Group companies
provisions and principles for ensuring
in their operations and the respective
For more details, please see PhosAgro's
Information Security Policy
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Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review The Policy states high priority
of the department, helped avoid
in the Company’s information
of information security activities
information security incidents
systems);
and sets up its key principles. They
in 2022 and in previous periods that
• ensured compliance
cover the target setting and planning
could have caused tangible material
with statutory requirements
of information security activities,
or reputational damage.
by adopting 55 internal
as well as their implementation,
Based on the results of the 2021
regulations;
quality management and process
assessment, a description
• enhanced SCADA information
improvement. The above
of the target state and a respective
security;
Ethical practices
GRI 2–23, 2–24
Values, principles, standards
and norms of behaviour
principles define the contents
roadmap were also prepared
•
improved access control
PhosAgro Group has a well-deserved
By consistently implementing
To ensure PhosAgro Group's
of the lower-level documents
by one of the world's leading
processes;
reputation of a reliable business
this approach for years, PhosAgro
observance of ethical practices
such as the Information Security
expert companies. The proposed
•
improved information security
partner, attractive employer,
was able to become a company
and generally recognised business
Framework and other internal
measures were included
monitoring processes;
responsible taxpayer, and partner
operating to the highest global
standards, the Company put
documents covering respective
in the 2022–2023 action plans;
•
improved vulnerability
to the Russian government
standards in human rights, industrial
in place an anti-fraud and anti-
issues. This set of documents reflects
information security issues
management processes.
and regions where the Company
safety, environmental protection,
corruption system covering all
modern solutions and best practices
are submitted for consideration
in information security.
by the Board of Directors every
Ensuring information security
six months. In 2022, the Company
is the responsibility of each
did the following to implement
employee. To this end, the Group
the roadmap:
regularly holds events to raise
employees' awareness of information
•
raised awareness: over 11,000
employees completed information
security issues and develop
security courses on the corporate
practical skills to deal with modern
Kaspersky Automated Security
threats. This, together with the use
Awareness Platform (ASAP);
of modern information security
the training continues to cover
tools and well-coordinated work
100% of users who have accounts
In 2022,
the Group received the national
Silver Dagger Award having won
in the Digital Transformation
and Information Security category.
The Company outperformed
the competition with its unique
solution offering a comprehensive
approach to cybersecurity based
on Kaspersky Unified Monitoring
and Analysis Platform (KUMA).
All employees of the Economic
Security Department receive training
Security personnel who completed
human rights training, %
in terrorism prevention and the main
GRI 410–1
goals and principles of PhosAgro
Group Code of Ethics.
2022
2021
2020
100
100
100
operates. The trust that our
anti-corruption, etc. We recognise
areas of operation. On top of that,
investors, employees, customers,
that it is hardly possible to fully
Group companies adopted a set
contractors and authorities place
eliminate ethical risks in a large
of corporate, legal, information
in the Company is underpinned
and diverse organisation that has
and educational measures
by the high ethical standards that
an almost global presence. We
to build a shared corporate
we have adhered to since PhosAgro’s
believe that by adhering to our
culture underpinned by high
inception.
ethical principles and standards we
ethical standards and maintain
minimise unnecessary risks, maintain
an atmosphere of trust, mutual
We take an integrated approach
our business reputation and keep
respect and integrity among
to business ethics; in other words, we
ourselves on track to achieve our
believe that ethical considerations
ambitious production and financial
employees. PhosAgro and all of its
subsidiaries approved anti-corruption
are intrinsic to all aspects of our
targets for the benefit of PhosAgro’s
standards with the obligation
operations, from procurement
shareholders and other stakeholders.
to comply with anti-corruption
and teamwork to safety and trade.
We systematically analyse risks in this
Management approach
area and develop and implement
rules included in the Collective
Bargaining Agreement for 2020–
2023 and employment contracts
measures to manage them.
PhosAgro Group does its best
with employees. All initiatives
to eliminate corrupt practices, while
are running as part of the effective
To achieve the above, we need
also enhancing and protecting its
anti-corruption plan.
to ensure that our ethical principles
business reputation as an honest,
and standards are clearly defined
open and bona fide company
and communicated to employees
among shareholders, potential
and counterparties. We also need
investors, partners, employees,
to have relevant legal, organisational
and counterparties. Elimination
and informational mechanisms
of any possible occurrences
in place to support and, more
bearing the signs of corruption
importantly, monitor compliance
or potential conflict of interest,
with these principles and standards,
and strengthening the commitment
which should also be overseen
of PhosAgro Group’s employees
at the highest corporate governance
to the highest ethical standards
level.
are at the forefront of the Group's
activities.
302
303
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Ethical standards and norms
of behaviour
The principles and standards
of ethical behaviour when working
at and with PhosAgro are set out
in relevant policies and other
internal documents listed below.
These are regulatory documents
all the Group's managers,
officers and employees must
comply with. Employees who
have violated them are subject
to the respective sanctions,
including social condemnation,
public censure through publication
in the media, full or partial
withholding of bonuses, and – if
the employee’s action (omission)
bears signs of a disciplinary
offence – disciplinary measures
also apply to such employee
pursuant to the applicable labour
and employment laws.
The following internal policies and procedures governing the compliance of the Company
with the key principles and standards of ethical conduct are currently in effect:
SASB RT-CH-530a.1
Code of Ethics
The Code outlines the key
principles and rules of ethical
business conduct underlying
the corporate culture of PhosAgro
Corporate Governance Code
The Code defines the main
principles of and approaches
to corporate governance
Code of Conduct
for Counterparties
The Company may refuse
to cooperate with suppliers or
business partners discriminating
their own or subcontractors’
employees or using forced labour
Anti-Corruption Policy
The Policy defines the goals
and objectives and sets forth
the Company’s key principles
and employee responsibilities
in the sphere of anti-fraud
and anti-corruption
Regulations on Conflict
of Interest
The Regulations establish
the procedure for identifying
and resolving conflicts of interest
arising with employees
in the course of their employment
Apatit's Procurement Policy
The Policy defines the goals, key
principles, roles and employee
responsibilities in procurement
UK Modern Slavery Act
Transparency Statement
The Act outlines the Company’s
actions to prevent all forms
of modern slavery and human
trafficking within PhosAgro and its
supply chain
Regulations on the Commission
for Combating Fraud
and Corruption and Regulating
Conflicts of Interest
The Regulations address and govern
the issues pertaining to employee
anti-corruption compliance
Regulations on Business
Presents and Representation
Expenses
The Regulations set out
the procedure for receiving
presents by the Company’s
employees, as well as making
them on behalf of the Company.
The Regulations substantiate
and detail the formation,
structure, and documentation
of representation expenses
Government Relations Policy
The Policy establishes the principles,
areas, purpose and objectives
of PhosAgro interaction with public
authorities and officials
Regulations on Internal Checks
Regulations on Inspections
Charity Policy
The regulations govern a set
of actions taken to elicit the facts
and identify the circumstances,
motives and conditions
of misconduct, incidents, and other
violations of requirements set
out in the Company’s internal
regulations
PhosAgro Hotline Regulations
The Regulations set out the goals
and objectives with regard
to the receipt of employee
reports on the matters pertaining
to combating fraud, corruption
and theft and identifying conflicts
of interest
The Policy sets out the key
principles and areas for providing
charitable support on behalf
of and through the funds
of the Company
Personnel Management Policy
The Policy sets forth the Company’s
and its management’s adherence
to high ethical standards
of transparent and fair business
aimed at building the image
of an employer attractive
for the best professionals
Regulations to Ensure
Compliance with Anti-Corruption
Laws as Part of Legal Support
Process
The Regulations outline goals
and objectives for legal support
of the Company’s business
processes and transactions
involving a high risk of corruption
304
305
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Operations assessed for risks related to corruption
Informing, advising, and training employees
When building an effective anti-
For this purpose, the Group
prohibitions and restrictions
corruption policy, it is of utmost
has defined lists of corruption-
and measures to prevent and resolve
importance to understand
prone functions and positions.
conflicts of interest. These standards
what corruption offences
The activities of the officials
are set out in internal regulations.
employees may be inclined
occupying the positions
to commit depending on their
included in the list are under
PhosAgro Group seeks to identify
positions, what business processes
special control of the Economic
and assess corruption risks
are most likely to involve
Security Department and heads
on a regular basis using a three-
the commission of such offences,
of the relevant business units
step procedure to update the list
what ways or schemes are available
in terms of their compliance
of functions and positions exposed
for committing them and what
with high ethical standards
to such risks. Over the last three years
GRI 205–2
PhosAgro Group offers ongoing
training programmes to educate
employees on anti-corruption
in order to minimise the risk of their
involvement in corrupt practices.
To this end, the Group has put
in place a robust training system
to prevent any and all corrupt
practices, mitigate possible harm,
and eliminate the consequences
consequences they may lead to.
and requirements of internal
(2020–2022) the Company identified
thereof.
documents on anti-corruption,
no corruption risks that are highly
including compliance with related
likely to materialise.
Training
methodology
Corruption risk
identification
Identification of corruption
offences that may
be committed by Group
employees and detection
of business processes
(critical points) where such
misconduct is possible
Corruption
risk analysis
Identification of ways that
can be potentially used
to commit a corruption
offence, depending
on the specifics
of the Group’s business
processes (corruption
schemes), persons who may
be involved in corruption,
and business processes’
vulnerabilities
Assessment
of materiality
of corruption risks
Assessment
of the probability
of a corruption offence
at a specific stage
of a business process
and the potential damage
to PhosAgro Group in case
an employee (employees)
commits (commit)
a corruption offence
PhosAgro's Board of Directors
system in accordance
is monitored by line managers
receives regular reports
with PhosAgro’s Risk Management
on the basis of, among other things,
on the progress of anti-corruption
and Internal Control Policy.
the Risk Management Regulations.
initiatives and the performance
In addition, the process of identifying
of the anti-fraud and anti-corruption
risks and preventing wrongdoings
Organisational and informational mechanisms
PhosAgro Group has a well-designed
and counterparties are kept
of potentially unethical and corrupt
set of tools in place to ensure
abreast of and trained in ethical
behaviour are effectively reported
that the Group's employees
business practices and that cases
to relevant officers and units.
Target audience
Managers and white-collar
workers of all levels, including
employees of branches
and standalone business
units
Goals and objectives
Provide employees
with updated information
on laws and regulations
on detecting and combating
corruption in business
entities. Help students
develop an anti-corruption
attitude, learn about methods
of combating corruption
and conflicts of interests
and master relevant skills.
Help students acquire
knowledge of the causes
and preconditions
for corruption
and practices of identifying
and counteracting such cases
Benefits of online
training
Educational materials
(presentations, tests)
accurately reflect
the potential issues
of corruption at PhosAgro
Group companies.
The training process does
not disrupt core business
activities
Training results
Upon completion
of the anti-corruption
training, an employee shall
have an understanding
of the theory of counteracting
corruption in the Group;
factors, causes, essence
and consequences
of corruption; Russian
anti-corruption laws
and regulations,
as well as internal regulations
of the Company; responsibility
for failure to comply with anti-
corruption practices
To train and inform employees,
on the corporate intranet portal.
and the established system of anti-
PhosAgro Group annually
The themes of the courses
corruption standards.
develops anti-corruption courses
depend on the responsibilities
with final tests, which are posted
of business units (employees)
306
307
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review
Completed training programmes
Training period
Completed programmes
2020
2021
2022
Preventing and Resolving Conflict of Interest
Main Goals and Principles of the PhosAgro Group Code of Ethics
Principles of the PhosAgro Hotline
PhosAgro Group Anti-Corruption Policy
Employees are tested on training outcomes; the regulations provide for
mandatory additional training for employees who have demonstrated poor
performance
Main Goals and Principles of the PhosAgro Group Code of Ethics
To implement anti-corruption
section on anti-corruption, which
Every new employee receives
measures, PhosAgro’s Economic
contains CEO’s message about
training on the basic requirements
Security Department drafts
the need to strictly comply
of the Anti-Fraud and Anti-
an annual training plan, according
with established anti-corruption
Corruption Policy, the Code
to which employees are informed
standards, as well as copies
of Ethics, Regulations on Conflict
from time to time about existing
of internal documents aimed
of Interest and on PhosAgro
internal regulations on anti-
corruption, anti-corruption standards,
at preventing corruption (the Anti-
Hotline by watching a respective
Corruption Policy, Code of Ethics,
video and putting their signature
responsibility for failure to comply
Regulations on Conflict of Interest
in briefing log to confirm the above.
with them, as well as amendments
and on PhosAgro Hotline). Internal
Employees’ job descriptions
and additions to them.
documents are supplemented
stipulate their obligation to comply
The Company’s management serves
by methodological materials
with anti-corruption standards
as the key communication channel
(handouts, presentations), which
and PhosAgro Group’s internal
to emphasise the importance
explain in easy terms the anti-
regulations, as well as to receive
of compliance with the established
corruption policy, standards
respective training. When employees
anti-corruption measures.
of conduct, responsibility,
perform functions involving a high
PhosAgro Group’s employees
and provide examples of corruption-
risk of corruption, those responsible
and counterparties have free
prone situations that employees may
for the implementation of the Anti-
and easy access to information
encounter in the course of their
Corruption Policy additionally
about the Company’s anti-
employment.
corruption practices. PhosAgro’s
official website features a special
explain to them the Russian laws
and the Group’s internal policies
on anti-corruption.
Total number and share of members of the governance body, employees and business
partners familiarised with the Company's Anti-Corruption policy and procedures, by region
Total number
of members
of the governance
body
Share
of members
of the governance
body, %
Total number
of employees
Share
of employees, %
Total number
of business
partners
Share
of business
partners, %
'20
177
335
74
110
'21
'22
'20
177
427
74
172
283
888
87
266
28
31
32
28
'21
28
31
32
31
Saratov region
Murmansk
region
Moscow region
Leningrad
region
'22
33
'20
'21
'22
'20
'21
'22
609
609
852
34 2,564 2,564
2,621
39
35
86
502
82
502
225
770
59
61
45
58
59
61
45
58
67
66
61
65
'20
130
121
'21
89
95
'22
'20
'21
'22
104 100 100 100
71
100 100 100
1,087
707
903
504
898 100 100 100
487 100 100 100
Vologda region
447
478
943
29
32
28 3,028
2,767 33,346
80
81
72
186
181
167 100 100 100
Other
Total
132
32
1,902
408
68
1,292
1,208
1,401
100 100 100
1,143
1,328 2,599
29
30
32 8,691 6,524 8,222
60
62
68 3,523 2,980 3,128 100 100 100
Total number and share of members of the governance body
and employees trained in anti-corruption measures, by region
Total number
of members
of the governance body
Share of members
of the governance body,
%
Total number
of employees
Share of employees, %
Saratov region
Murmansk
region
Moscow region
Leningrad region
Vologda region
Other
Total
'20
177
335
74
110
447
'21
177
335
74
110
447
'22
234
718
68
209
910
102
1,143
1,328
2,241
'20
80
80
80
80
89
81
'21
80
80
80
80
89
87
'22
83
81
78
79
97
77
86
'20
609
'21
609
'22
747
2,564
2,564
2,275
86
502
3,028
1,902
82
502
181
636
2,767
3,206
335
'20
80
81
78
80
89
'21
87
82
80
81
90
8,691
6,524
7,380
86
89
'22
88
87
80
83
96
82
90
308
309
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Security Agents
December 2022 saw the second
festival held as part of Security
Agents, Russia's unique
initiative run by PhosAgro
and the Vologda Regional
Office of the Russian Ministry
of Internal Affairs. The project
seeks to train children in security
and observance of ethical
standards. The participants
learn about security operations,
cybersecurity, rules of conduct
in public places, and healthy
lifestyle. The festival was attended
by the Company management
together with the representatives
of the Vologda Regional Office
and Kaspersky Lab. From June
2021, the project organisers
have given over 470 classes
to more than 5,000 children,
including those of the Company's
employees, school students,
children without parental care
placed in dedicated centres,
and teenagers assigned
to the Juvenile Liaison Office.
In 2022, its geography expanded
to include Volkhov (Leningrad
region) and Balakovo (Saratov
region).
Tools to notify the relevant PhosAgro Group's executives
of any instances of misconduct and corrupt practices
GRI 2–25, 2–26
Tool
Obligation
Communication
Confidentiality and protection
Advice
PhosAgro Hotline
Description
Any Company employee, as well as any member of the Board of Directors, who
has become aware of any actual or potential violation of law or PhosAgro’s internal
regulations is obliged to give a prompt notice of the same in writing.
This also applies to any inducement to corruption or violations showing signs
of corruption committed with respect to other employees, counterparties or other
parties interacting with the Group.
The procedures for reporting and consideration of violation reports are defined
in the Anti-Corruption Policy, the Code of Ethics, the Regulations on Conflict
of Interest, and the Anti-Corruption Agreement, as well as other internal regulations
of the Group companies
A person who has submitted a notice/report is guaranteed confidentiality
of the information received, as well as such person’s personal data. PhosAgro takes
steps to protect the employee who has notified the employer’s representative
(employer) of any actual or potential violation of law and the Company’s internal
regulations that may pose a threat to the Group’s interests.
PhosAgro’s Code of Ethics formalises the right of each employee, if they
have any questions relating to anti-corruption compliance or any concerns
as to the rightness of their actions the actions of other employees, counterparties, or
other parties interacting with the Company, to seek advice or assistance from their
immediate supervisors or, if need be, the relevant business units of the Company.
The Hotline operates to improve the efficiency of measures taken to prevent fraud,
corruption, theft, and conflict of interest, as well as to mitigate the compliance
and reputational risks resulting from violation of professional and ethical standards
by the PhosAgro Group’s employees. There are three ways to report to the Hotline:
by phone at +8 8202 59 32 32, e-mail at help@phosagro.ru and regular mail
at the following address: Economic Security Department, 75 Severnoye Highway,
Cherepovets, Vologda region, 162622, Russia. To ensure free access to the Company’s
Hotline, all existing communication chanels are posted on PhosAgro’s website.
PhosAgro Hotline
To improve the timeliness
and effectiveness of measures
aimed at preventing ethical
violations, including corruption,
discrimination, human rights
violations, etc., the Company
created the PhosAgro Hotline
portal.
Any employee or other stakeholder
can use PhosAgro Hotline to report
any potential violations detrimental
to the Company’s interests, while
the Company may not disclose
the identity of the whistle-blower
to other employees and third parties.
2022
2021
2020
110
6
119
3
134
2
Total reports received by
PhosAgro Hotline
Reports related to corruption
Reports received by PhosAgro Hotline by category
2020
2021
2022
41
Other (non-compliance with
sanitary and epidemiological
rules or internal regulations)
32
Violations of law
and tender procedures
30
HSE
20
External fraud
5
2
2
2
0
Reputational risk
Internal fraud
Conflicts of interest
Non-compliance
with the Code of Ethics
Violations of human rights
53
25
16
Other (non-compliance with
sanitary and epidemiological
rules or internal regulations)
External fraud
Violations of law and tender
procedures
16
HSE
3
3
3
0
Reputational risk
Internal fraud
Non-compliance
with the Code of Ethics
Violations of human rights
37
27
20
9
6
5
4
2
0
Other (non-compliance with
sanitary and epidemiological
rules or internal regulations)
Violations of law and tender
procedures
Fraud in foreign
and domestic markets
HSE
Non-compliance
with the Code of Ethics
Workplace conditions
Theft
Confidential information
Violations of human rights
PhosAgro’s Internal Audit
Hotline, actions taken, the results
Committee provides this information
Department reports on a quarterly
of audits and measures to address
to members of PhosAgro's Board
basis to the Audit Committee on all
violations of the Group’s ethical
of Directors.
reports received by the PhosAgro
standards. The Chairman of the Audit
310
311
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Anti-corruption
GRI 3-3
in public associations, which is seen
the business community
We consider it unacceptable
as a guarantee of compliance
and the government to forge
for PhosAgro Group's executives
with Article 13.3 of Federal Law No.
the social, economic,
and employees at all levels
273-FZ On Combating Corruption
and industrial policy, remove
to take advantage of their
dated 25 December 2008:
official position in a way that
is in conflict with corporate or
national interests. To prevent fraud
and corruption, PhosAgro has
1. The Anti-Corruption Charter
of the Russian Business
adopted by the RSPP. As part
of self-assessment of special
administrative hurdles, improve
the business and investment
climate, and promote
entrepreneurship. In December
2022, PhosAgro participated
Acquainting business
partners with PhosAgro
Group’s anti-corruption
standards and procedures
SASB EM-MM-510a.1
The Group is committed
As a result, 100% of counterparties
to establishing and maintaining
wishing to engage in business
business relationships
with the Company are introduced
with companies that operate
to the applicable internal
in line with high ethical standards
regulations of the Company during
and combat corruption.
the registration at the electronic
PhosAgro recognises that corruption
bidding platform.
risks can arise not only within,
We have improved the registration
but also outside the Company,
process at the electronic bidding
put in place its Anti-Corruption
anti-corruption programmes
in the nationwide interactive
primarily when interacting
platform (PhosAgro's official website
Policy together with a system
and practices implemented
campaign held in furtherance
with counterparties, including
– Procurement – Tenders – Supplier
covering the entire range of its
by the Company and covering not
of the National Anti-Corruption
business partners, suppliers,
Registration Form). Every potential
activities, and set up a commission
only internal activities, but also
Plan for 2021–2024.
contractors, etc.
supplier of goods or services
on fraud, corruption, and conflicts
relations with business partners
of interest. The Company seeks
and the state, procurement
5.
The Russian Union
to identify and assess corruption
through public auctions,
risks on a regular basis to keep
financial control, staff training
track of functions and positions
and development, cooperation
of Industrialists
and Entrepreneurs. As a member
of the RSPP, PhosAgro
exposed to such risks. PhosAgro’s
with law enforcement agencies,
participates in the annual Anti-
interested in establishing a business
PhosAgro Group has approved
relationship with PhosAgro Group
a procedure for incorporating
is required to read the relevant
an anti-corruption clause
internal regulations (the Company’s
and a clause of good faith in every
Anti-Corruption Policy, Code
contract signed by the parties;
of Ethics, Anti-Fraud and Anti-
management regularly reviews
PhosAgro regularly completes
Corruption Rating assessing
these clauses contain clear
Corruption Policy of Apatit, Code
reports on the progress
surveys using the portal
compliance with best business
and detailed rules and procedures
of Conduct for Counterparties,
of anti-corruption initiatives
of the Chamber of Commerce
conduct practices both in Russia
aimed at preventing corruption,
etc.), and familiarise themselves
and the performance of the anti-
and Industry of Russia.
fraud and anti-corruption system.
and globally. As part of the 2022
rating, PhosAgro was awarded
In addition, we make an ongoing
effort to build a culture of zero
Business adopted by the RSPP.
Having joined the Social
as a “Company with Extremely
Strong Anti-Corruption
2.
The Social Charter of the Russian
the A1 score and designated
including special management
with information on PhosAgro’s
procedures, requirements
Hotline. Only after becoming
for counterparties, rules of special
aware of these standards may
anti-corruption control and audit,
they proceed with the registration
measures to prevent conflicts
at the electronic bidding platform.
tolerance to corruption underpinned
Charter of the Russian
Credentials and Extremely Low
of interest and commercial bribery,
This helps to ensure that all
by high ethical standards,
Business, PhosAgro formalised
Corruption Risks”.
and compensation for material
potential counterparties seeking
as well as maintain an atmosphere
the responsible approach it takes
damage.
of trust, mutual respect and integrity
to ESG and its commitment
To counteract corruption, we
among employees.
to best practices in corporate
cooperate successfully with state
PhosAgro Group’s
participation in collective
efforts to combat corruption
The Company’s Anti-Corruption
social responsibility.
and local government authorities
and non-governmental organisations
3.
The Anti-Fraud Working Group
based on the principles
of the Russian Association
of partnership, mutual respect,
of Fertilizer Producers (RAFP),
which has developed initiatives
trust and professionalism. We
have entered into a number
Policy is implemented in accordance
to combat wrongdoings
of long-term agreements
with applicable anti-corruption
committed by unidentified
on preventing and detecting crime,
laws and international conventions
persons using brands of major
as well as helping to build security
(including the UN Convention
mineral fertilizer producers.
infrastructure through the creation
against Corruption and Russian
anti-corruption laws). To prevent
and combat corruption, PhosAgro
Group cooperates with business
4. The Chamber of Commerce
and Industry of Russia (CCI).
The CCI membership implies
of police stations at PhosAgro
Group’s production sites. Joint
activities are widely covered
in the corporate media.
communities and participates
engaging in a dialogue between
to do business with PhosAgro Group
are familiar with the applicable
standards.
Total number of business
partners registered
Общее количество
at the electronic bidding
деловых партнеров,
platform and acquainted
прошедших регистрацию
with the anti-corruption
на ЭТП и ознакомившихся
standards
с антикоррупционными
стандартами
2022
2021
2020
3,128
2,980
3,523
Share of business partners
in this category, %
Доля деловых партнеров
данной категории, %
2022
2021
2020
100
100
100
312
313
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Incidents of corruption
identified and actions taken
Internal investigations
into reported corrupt behavior
Number of internal
investigations into various
failures to comply with the
internal regulations
2022
2021
2020
Including
corruption-related
2022
2021
2020
35
52
52
4
3
2
GRI 205–1
GRI 205–3
In 2022, 35 internal investigations
to apply anti-corrosion coating
were launched to identify failures
to structures and buildings at
In 2022, four criminal cases
section at Apatit who received
illegally received RUB 250,000
were initiated, including two cases
RUB 201,000 in exchange
from the Company’s contractors.
in complying with the internal
Apatit’s phosphate and nitrogen
against employees of Apatit (there
for engaging in wrongdoing
Further investigation revealed
regulations. Four of the completed
facilities. As a result of this
investigations were related
failure, Apatit incurred losses
to corruption and fraud and had
of RUB 1,000,000;
to do with:
•
illegal transfer by the Company’s
•
illegal receipt of RUB 800,000
counterparties of RUB 604,000
by the contractor’s manager
to the head and chief expert
in exchange for facilitating
the signing of the as-built
of the environmental control
unit at Apatit’s Volkhov branch
report on cabling at the Kriolit
in exchange for deliberate
railway station. As a result of this
wrongdoing on their part.
offence, Apatit incurred losses
As a result of this offence, Apatit
of RUB 10,999,700;
incurred losses of RUB 87,707,800.
•
illegal receipt of RUB 201,000
by the head of the MFPU section
The internal investigations led
at Apatit in exchange for exercising
to the initiation of a disciplinary
their official powers for the benefit
action against one employee,
of a contractor;
and termination of contract
are three employees listed in the case
for the benefit of a contractor;
two more offences committed
records whose employment
• on 12 July 2022, a criminal case
by the criminal case subjects
contracts were terminated):
was opened in accordance
with a view to receiving illegally
• on 25 April 2022, a criminal case
with Article 204, Part 7
was opened in accordance
(“Commercial Bribery”)
RUB 170,000 and RUB 184,000.
This brought the total amount
with Article 204, Part 7
(“Commercial Bribery”)
of the Russian Criminal Code
of illegally received funds
against the head and chief expert
to RUB 604,000.
of the Russian Criminal Code
of the environmental control unit
against the head of the MFPU
at Apatit’s Volkhov branch who
PhosAgro Group’s
commitment to the anti-
corruption standards
1
PhosAgro made a public
commitment to report
to the relevant law
2
is evidenced by the fact
enforcement authorities
PhosAgro will not
impose any sanctions
on employees who
reported to law
that it cooperates with law
any cases of corruption (signs
enforcement authorities
• a contractor’s failure to fulfil its
with three other employees.
enforcement authorities:
of corruption) the Group (its
any actual or potential
obligations under a contract
employees) may become
corruption incidents
Confirmed incidents of corruption and actions taken
GRI 205–3
Total number of confirmed corruption cases
Total number of confirmed incidents resulting in the dismissal of employees
or initiation of a disciplinary action against them on corruption charges
Total number of confirmed incidents resulting in the termination of contracts
with business partners or a failure to renew them due to corruption-related
offences
Total number of public court actions2 taken against an organisation
or its employees on corruption charges
2020
2021
2022
2
2
1
1
2
2
11
1
4
3
2
2
aware of.
that they became aware
of in the course of their
employment.
1 The Company updated the 2021 data: in 2021, the Company disqualified one business partner who
wanted to participate in bidding procedures worth over RUB 400 mln on the grounds that it was not
considered trustworthy because of its failure to comply with anti-corruption standards.
All corruption-related cases are included in the official statistics of law enforcement agencies.
2
314
315
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review Conflicts of interest
GRI 2–15
Antitrust measures
GRI 3-3, 206–1
PhosAgro’s Code of Ethics
PhosAgro places a strong emphasis
on Fraud, Corruption and Conflicts
The Company has approved trade
producers. The respective
on charges of anti-competitive
and Regulations on Conflict
on timely prevention, identification
of Interest. As a result of this review,
policies for the sale of phosphate
documents are designed to ensure
behaviour or breach of applicable
of Interest require employees
and resolution of potential conflicts
recommendations were drafted
rock (Apatit’s Marketing Policy
compliance with antitrust laws,
antitrust and trust laws, or
to report any potential or actual
of interest. The Company puts in place
on amending job descriptions,
for Domestic Sales of Phosphate
while also mitigating risks associated
any similar lawsuits settled in 2020–
conflicts of interest to their line
verification procedures to be carried
revisiting the organisational
Rock) and for the sale of certain
with anti-competitive behaviour.
2022 to which the Company could
manager or an anti-corruption
out when personnel decisions
and staff structure and transferring
fertilizer grades to agricultural
There are no pending lawsuits filed
be identified as a party.
officer.
are made and responsibilities
employees to other business units.
As part of the work to develop
are distributed and requires all
In order to prevent potential conflicts
a framework for preventing,
candidates to report personal interest,
of interest, five notices were served
identifying and resolving conflicts
if any, at the time they are offered
on respective managers. In one
of interest, three designated collegial
employment with the Company
of the reviewed cases, the conflict
advisory bodies were established:
and regularly from then onwards.
of interest (at PhosAgro-Region)
1. the Commission on Conflict
proved to be unsubstantiated.
The respective documents
are available in the Buyers section
of the Company’s official website
of Interest between Employees
of PhosAgro chaired by the CEO;
The Company did not identify
any conflicts of interest related
2. the Commission on Fraud,
Corruption and Conflicts
of Interest at Apatit (to streamline
anti-corruption efforts across
to membership in the Board
of Directors; joint ownership
with suppliers and other stakeholders;
controlling shareholders; related
parties and their relations,
the Company’s production units);
transactions and outstanding
balances.
3. the Commission on Fraud,
Corruption and Conflicts
of Interest at PhosAgro-Region
(to act for PhosAgro–Region
In 2022, the Company reviewed
15 cases of potential conflict
of interest, including nine of them
and its subsidiaries.
at a meeting of Apatit’s Commission
Identification, prevention and settlement of conflicts of interest
in the actions of PhosAgro Group’s employees
Total number of conflicts of interest pertaining to joint ownership with suppliers
and other stakeholders
Total number of conflicts of interest pertaining to controlling shareholders
Total number of conflicts of interest pertaining to related parties and their
relations, transactions and outstanding balances.
Total number of conflicts of interest pertaining to membership in the Board
of Directors
Total number of potential conflicts of interest
Number of conflicts of interest considered at the meeting of the Commission
on Fraud, Corruption and Conflicts of Interest
2020
2021
2022
0
0
0
0
12
5
1
0
0
0
10
5
0
0
0
0
15
9
Non-discrimination policy and human rights
GRI 2–23
We do our best to keep the working
In 2022, the Board of Directors
including in an executive role.
environment at the Group’s
and the Remuneration and Human
In 2020–2022, there were no
facilities free from restrictions
Resources Committee paid special
employee reports or complaints
based on nationality, gender, age,
attention to human rights focusing
about violations of labour practices,
faith or other grounds as required
on staff diversity and equality
human rights, or discrimination.
by the applicable laws. At PhosAgro
of genders. The discussions held
Group, any decisions regarding
by these bodies led to the key
promotion, hiring, remuneration
conclusion that every employee who
or benefits are based solely
works dutifully and has professional
on the employee’s qualifications,
skills and competencies may apply
performance, skills and experience.
for any position within the Group,
316
317
Company profileShare capitalAppendicesCORPORATE GOVERNANCE Strategic reportPerformance review STRENGTHENING
our partnerships
5
We appreciate
the partnership that
we have with our securities
holders and are committed
to open, full and timely
communication with them
while also taking into account
any feedback they may have.
L
A
T
I
P
A
C
E
R
A
H
S
In 2022, PhosAgro paid
dividends of
RUB.1,563
per ordinary registered uncertified share
PhosAgro’s shares are among
the most liquid Russian securities
and in September 2022 were included
in the Blue Chip Index of the Moscow
Exchange. An indicator of the market
for Russia’s most liquid and well
performing shares, the index is based
on prices of transactions for shares
of the 15 leading issuers.
For details, see page 324
For details, see page 321
318
319
268 Ownership structure269 Share performance270 Debt management271 Analyst coverage271 Dividend policy273 Relationship with shareholders and investors202 Information disclosure
Share capital
Ownership structure
Share performance
The authorised capital of PhosAgro
As at 31 December 2022, there
The register of holders of PhosAgro’s
PhosAgro’s shares are traded
symbol PHOR. On 3 March 2022,
Citigroup Global Markets
as at 31 December 2022 amounted
were no shareholders in PhosAgro
securities is maintained by Joint-Stock
to RUB 323,750,000 consisting
with a stake of more than 5%,
Company Reestr.
of 129,500,000 ordinary shares
beyond those already disclosed
with a par value of RUB 2.5 per share.
by PhosAgro in this Report.
Shareholding structure (list of shareholders that hold 5%
and more of PhosAgro’s authorised capital)
As at 31 December 2020
Shareholder
Adorabella Limited
Chlodwig Enterprises
Vladimir Litvinenko
Other shareholders
Total
As at 31 December 2021
Shareholder
Adorabella AG
Chlodwig Enterprises AG
Vladimir Litvinenko
Other shareholders
Total
As at 31 December 2022
Shareholder
MKOOO Adorabella
MKOOO Chlodwig Enterprises
Tatyana Litvinenko
Other shareholders
Total
For more information
on Reestr, please
visit the Company's
website
Number
of shares
% of issued
and outstanding shares
30,234,162
26,302,400
27,174,815
45,788,623
129,500,000
23.35
20.31
20.98
35.36
100.00
Number
of shares
% of issued
and outstanding shares
30,234,162
26,302,400
27,174,815
45,788,623
129,500,000
23.35
20.31
20.98
35.36
100.00
Number
of shares
% of issued
and outstanding shares
30,234,162
26,302,400
26,674,815
46,288,623
129,500,000
23.35
20.31
20.60
35.74
100.00
on the A1 quotation list
of the Moscow Exchange
under the ticker symbol PHOR
trading in the Company’s GDRs
Deutschland AG acts
was suspended.
as the depositary for the Company’s
GDR programme.
(ISIN: RU000A0JRKT8).
Shares of PhosAgro are included
in the following indices
Global depositary receipts (GDR;
of the Moscow Exchange:
three GDRs represent one share)
• MOEX Russia;
are admitted to listing on the London
• RTS.
Stock Exchange under the ticker
Tickers
Stock exchange
Moscow Exchange
Bloomberg
PHOR RU
London Stock Exchange
PHOR LI
Reuters
PHOR.MM
PHORq.L
ISIN
RU000A0JRKT8
US71922G3083
US71922G4073
Codes for Global Depositary
Receipts
Under Regulation S
Under Regulation S
Under Rule 144A
CUSIP
ISIN
Common code
SEDOL
RIC
71922G308
US71922G3083
065008939
0B62QPJ1
PHOSq.L
71922G407
US71922G4073
065008939
0B62QPJ1
PHOSq.L
71922G100
US71922G1004
065008939
0B5N6Z48
GBB5N6Z48.L
Share performance on MOEX in 2022
10,000
8,000
6,000
4,000
2,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
320
321
SHARE CAPITALAppendicesStrategic reportPerformance reviewCorporate governanceCompany profile The key factors affecting PhosAgro's share performance in 2022
Strong demand
for phosphate
and nitrogen-based
fertilizers over the year
Logistical challenges
associated
with shipments
from Russia
Expensive primary
feedstock, including gas
and potassium
Strong operational
and financial
performance
of the Company
High prices
for major crops
in global markets
Low fertilizer stocks
in the Company’s key
sales markets
Approval of multiple
sanction packages
against Russia
No access to trading
on the London Stock
Exchange since 3 March
2022 and suspension
of trading on the Moscow
Exchange from 28 February
to 23 March 2022
Share performance
Item
As at 30 December 2020 As at 30 December 2021
As at 30 December 2022
Weighted average trading price
of a share on the Moscow Exchange,
RUB
GDR price on the London Stock
Exchange1, USD
Market capitalisation, RUB mln
3,156.00
5,857.00
6,390.00
13.64
21.58
–
408,831.50
758,611.00
827,505.00
For more information on our historical
share performance, please visit
the Company’s website
Official market capitalisation
data is published on the Moscow
Exchange’s website
Bonds
Borrower
Issuer
PJSC PhosAgro
PJSC PhosAgro
PJSC PhosAgro
PhosAgro Bond Funding
Limited
PhosAgro Bond Funding
Limited
PhosAgro Bond Funding
Limited
Settlement date
24 January 2018
23 January 2020
16 September 2021
Principal outstanding,
USD mln
500
Guarantor(s)
JSC Apatit
500
JSC Apatit
500
JSC Apatit
For the debt repayment schedule, see the Financial Performance section on page 89
Analyst coverage
PhosAgro is covered by analysts from leading Russian
and international brokers.
Company
ATON
Alfa Bank
BCS Global Markets
Renaissance Capital
Sberbank CIB
Sinara Financial Corporation
Arowana Capital
Veles Capital
Analyst
Andrey Lobazov
Boris Krasnojenov
Kirill Chuyko
Boris Sinitsyn
Georgiy Ivanin
Dmitriy Smolin
Elena Sakhnova
Elsa Gazizova
Dividend policy
Tel.
+7 (495) 213-03-37
+7 (495) 795-36-12
+7 (495) 213-15-26
+7 (499) 956-45-40 (ext. 4540)
+7 (495) 665-56-00
+7 (916) 555-79-97
+7 (495) 287-68-77
+7 (495) 258-19-88 (ext. 599)
Debt management
The Company uses a conservative
approach to leverage and believes
the amount and maturity available
while striving to ensure that this
its investment case, the investment
budget shall not exceed 50%
PhosAgro is committed to striking
for the General Meeting
be lower than 50% of adjusted net
an effective and reasonable balance
of Shareholders on any dividend
profit for the year under IFRS.
between the payment of dividends
payout (declaration), in addition
and reinvestment of profit in further
to the current financial standing
On 2 March 2023, PhosAgro’s
development.
assessment, the Board of Directors
Board of Directors recommended
takes into account the relevant
that the Annual General Meeting
that a comfortable net debt/EBITDA
fits into the Group’s long-term
of planned EBITDA.
Higher transparency
provisions of PhosAgro's dividend
of Shareholders (AGM) approve
ratio should be below 2х or even
debt reduction strategy. The choice
and predictability of dividend
policy whereby the amount
the distribution of profits and losses
within the range of 1–1.5х in the long
of the currency of borrowings
The record high capital investments
payments are a priority
of distributed dividends may
of PhosAgro for 2022 and use part
run. As at 31 December 2022,
is based on the structure
and charitable expenses in 2022 did
for the Company as it seeks to ramp
range from 50 to over 75% (subject
of the Company’s net profit for 2022
the Company’s leverage was much
of the Company’s revenue, 76%
not affect the Company’s leverage,
up its growth and strengthen
to PhosAgro's leverage ratio)
to pay out dividends in the amount
lower than that, at 0.68x.
of which was in foreign currency
which remained comfortably below
its investment case.
of PhosAgro's consolidated free cash
of RUB 465 per each ordinary
in 2022.
the net debt/EBITDA target.
flow for the respective year under
registered uncertified share.
When determining its borrowing
requirements, the Company
In line with the investment policy
assesses the cost of borrowing from
designed to meet PhosAgro's
banks and public debt markets,
investor obligations and strengthen
1 Trading in PhosAgro’s GDRs on the London Stock Exchange was suspended starting 3 March 2022.
All resolutions on the payment
IFRS. At the same time, the amount
of dividends and the timing
of declared dividends should not
and amount of such payment
are subject to approval of the General
Meeting of Shareholders, based
on recommendations provided
by PhosAgro’s Board of Directors.
When preparing recommendations
The full text of the Company’s
Dividend Policy is available
on the Company’s website
322
323
SHARE CAPITALAppendicesStrategic reportPerformance reviewCorporate governanceCompany profile Report on dividends declared and paid
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2020
Retained earnings
as at 31 March 2020:
…as at 30 June 2020
…as at 30 September
2020
78
33
123
…as at 31 December 2020
(based on 2020 results)
63
2021
Retained earnings
as at 31 December 2020
(based on 2020 results):
105
…as at 30 June 2021
156
…as at 30 September
2021
234
26
11
41
21
35
52
78
...as at 31 December 2021
(based on 2021 results)2
390
(no resolution
passed)
130
(no resolution
passed)
19 June 2020
No later than
7 July 2020/10 August 2020
30 September
2020
No later than 16 October
2020/20 November 2020
14 December
2020
No later than 28 December
2020/18 January 2021
25 May 2021
No later than 8 June
2021/13 July 2021
22 June 2021
No later than 6 July
2021/9 August 2021
13 September
2021
No later than 8 October
2021/29 October 2021
8 December
2021
No later than 21 December
2021/1 February 2022
30 June 2022
No later than 25 July
2022/15 August 2022
2022
Retained earnings
as at 30 June 2022
780
260
21 September
2022
No later than 17 October
2022/8 November 2022
9M 2022
FY 2022
318
465
106
155
Extraordinary General Meeting of Shareholders
Annual General Meeting of Shareholders
8 December
2022
No later than 9 January
2023/30 January 2023
24 March 2023 No later than 9 January
2023/30 January 20233
1 For nominee holders and trustees who are securities market professionals and are on PhosAgro’s register
of shareholders / other persons on PhosAgro’s register of shareholders.
2 The General Meeting of Shareholders did not approve profit distribution for FY 2021, including payment of
dividends.
3 Provided that on 24 March 2023, the Annual General Meeting of Shareholders approves the FY 2022 payments
recommended by the Board of Directors.
Results of the vote held by the Annual General
Meeting of Shareholders on the distribution
of profits (including payout (declaration)
of dividends) and losses of the Company
Annual General Meeting
of Shareholders of 25 May 2021
FOR
109,197,672
AGAINST
6,704
ABSTAINED
0
Annual General Meeting
of Shareholders of 30 June 2022
FOR
38,088,321
AGAINST
56,540,778
ABSTAINED
0
Annual General Meeting
of Shareholders of 24 March 2023
FOR
94,790,985
AGAINST
0
ABSTAINED
0
For more information
on the Company’s dividend
payment history, please visit
the Company’s website
324
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SHARE CAPITALAppendicesStrategic reportPerformance reviewCorporate governanceCompany profile
Relationship with shareholders and investors
To raise investor
awareness
of the Company’s
potential value
and long-term
sustainability
To update
investors
on PhosAgro’s strategic
priorities and progress
we have made
To attract
a wider pool
of investors
to improve liquidity,
share price
and borrowing costs
Strong
engagement programme
To increase
our access
to a variety
of capital market
instruments
To clarify
the Company’s
contribution
to the UN
Sustainable
Development
Goals
To provide
transparency
on how our corporate
governance systems
work
To generate
new ideas
through a dialogue
with investors
At PhosAgro, we are committed
releases, presentations, conference
A well-developed Eurobond
to transparency and consistency,
calls and webcasts. On top of that,
programme helps reinforce
and maintain an ongoing dialogue
we take every opportunity to answer
PhosAgro's position in the public debt
with the investor community
investors’ questions and gather
market, while also ensuring the lowest
through a variety of communication
feedback from market players
cost of funding.
channels and with involvement
by participating in conference calls.
of the Company’s senior management
In 2022, the Company continued
and independent directors.
In 2022, the Company did not
to stay in touch with retail
conduct its ESG investor survey
investors by holding conference
We keep the market abreast
due to the macroeconomic challenges,
calls with the assistance of major
of the Company’s performance
but it plans to reinstate this practice
Russian brokers.
by publishing quarterly operational
in 2023. The survey is expected
and financial results that are made
to be conducted every two years.
available to investors via press
The first survey took place in 2020.
Why we interact
Four main
purposes
for which PhosAgro
interacts with the
investment community
Each building
on each other
Facilitating
an ongoing exchange
of information
Ensuring greater
business transparency
1
Provide investment
community with reliable
and relevant information
on the key aspects
of the Company’s
operations,
its development plans
and long-term goals.
2
Identify risks
and opportunities
for the Company as seen
from the perspective
of members
of the investment
community after
they have analysed
the provided information.
3
Communicate
investor feedback
to the management
to form the internal
position and tweak/
work out a development
strategy that would
mitigate major
risks and unlock
the Company’s potential.
Monitor the progress
against the Company’s
development strategy
and present its results
to the public.
4
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SHARE CAPITALAppendicesStrategic reportPerformance reviewCorporate governanceCompany profile How we interact
The Company interacts
with the investment
community in a variety
of ways.
Surveys
Meetings of Shareholders
Surveys of the Company’s perception
by different investor categories,
including ESG-oriented groups.
Annual General Meetings
of Shareholders and formal
reporting.
Roadshows
Communication with members
Corporate website
Virtual non-deal roadshows
covering general topics
for broader investor audiences
and deal roadshows relating
to Eurobond offerings and ESG
disclosures, etc.
One-on-one calls
One-on-one calls with investors.
Selective communication
with members of the analyst
community to raise their awareness
of the Company’s operations.
Interaction with agencies
Interaction with credit and ESG
rating agencies.
Online conferences
Online investor conferences.
Press releases
Regulatory press releases.
Corporate website
of the Company.
Investor relations team
A dedicated in-house investor
relations team.
Key topics and outcomes in 2022
In 2022, closer contacts
PhosAgro's proactive approach
of the Company
to communication with debt
with shareholders, debt
market players guaranteed
investors and analysts (primarily
the success of a vote held among
in the form of online meetings)
Eurobond holders to amend
were of critical importance
the issuance documentation
due to the impact of external
with a view to ensuring continuous
challenges.
debt repayment in the changing
regulatory environment.
For more information on our initiatives and their
accompanying presentations, please visit the Calendar
section of the Company's official website
85 publications
were made in line
with Russian disclosure
regulations via the Interfax
Corporate Disclosure
Centre
> 50 press releases
were distributed
via the UK regulatory
news service
Information disclosure
In its declarations and disclosures,
information to shareholders
PhosAgro strictly follows
and investors in a timely manner
the requirements imposed
through authorised newswires,
by Russian securities regulations,
the corporate website,
as well as rules for the companies
PhosAgro’s official disclosure
traded on the LSE. The Company
page on the Interfax portal,
publicly discloses all required
and on the LSE webpage.
PhosAgro’s official disclosure page
on the Interfax portal
Disclosure on the Company's official website
The Company's page
on the official LSE website
Financial calendar
for 2023
Financial
results disclosure
4Q and FY 2022
3 March 2023
1Q 2023
19 May 2023
(TBC)
2Q and 6M 2023
11 August 2023
(TBC)
3Q and 9M 2023
10 November 2023
(TBC)
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SHARE CAPITALAppendicesStrategic reportPerformance reviewCorporate governanceCompany profile ADDITIONAL
information
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104 The consolidated financial statements114 Independent limited assurance report122 GRI content index138 SASB content index156 TCFD recommendations190 Glossary193 Contacts
The consolidated
financial statements
Independent Auditor’s Report
Joint-Stock Company
“Technologies of Trust – Audit”
(“Technologies of Trust – Audit” JSC)
White Square Office Center,
10 Butyrsky Val, Moscow,
Russian Federation, 125047
www.tedo.ru
T: +7 (495) 967 6000,
F: +7 (495) 967 6001
Independent Auditor’s Report
To the Shareholders and Board of Directors of Public Joint Stock Company “PhosAgro”:
Qualified opinion
In our opinion, except for the effects of the matter described in the Basis for qualified opinion section of our report,
the consolidated financial statements present fairly, in all material respects, the consolidated financial position of
Public Joint Stock Company “PhosAgro” (the “Company”) and its subsidiaries (together – the “Group”) as at
31 December 2022, and the Group’s consolidated financial performance and consolidated cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRS).
What we have audited
The Group’s consolidated financial statements comprise:
•
•
•
•
•
the consolidated statement of profit or loss and other comprehensive income for 2022;
the consolidated statement of financial position as at 31 December 2022;
the consolidated statement of cash flows for 2022;
the consolidated statement of changes in equity for 2022; and
the notes to the consolidated financial statements, which include significant accounting policies and other
explanatory information.
Basis for qualified opinion
The Group has not disclosed segment information as required by IFRS 8, Operating Segments for the year ended
31 December 2022 and for the comparative period.
Considering the significant volume of undisclosed segment information required by IFRS 8, Operating Segments,
presenting this undisclosed information in our audit opinion is not practicable.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial
statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
qualified opinion.
Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the International Ethics Standards Board for
Accountants (IESBA Code) and the ethical requirements of the Auditor’s Professional Ethics Code and Auditor’s
Independence Rules that are relevant to our audit of the consolidated financial statements in the Russian
Federation. We have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. In addition to the matter described in the Basis for qualified opinion section, we
have determined the matters described below to be the key audit matters to be communicated in our report.
www.tedo.ru
Key audit matter
How our audit addressed the key audit matter
Effect of changes in current economic
situation on the consolidated financial
statements of the Group
Refer to Notes 1 (b) and 29 to the
consolidated financial statements of the
Group
In 2022, there were significant changes in
the economic environment in which the
Group operates, commodity and financial
markets demonstrated increased volatility.
The imposition of the restrictive measures
against a number of Russian entities led to
the restricted access to European and USA
financial markets and a risk that USD-
denominated coupon payments on the
Group’s Eurobonds will not reach the final
debt securities holders through foreign
paying agents.
Among other changes, economic
environment developments led to changes
in the Group structure, as described in note
29 to the consolidated financial statements,
and affected a number of elements of the
consolidated financial statements.
We focus on this matter due to significance
of potential impact of changes in the
economic environment in which the Group
operates on its consolidated financial
statements and significant management’s
judgement required in respect of certain
transactions and balances.
We performed the following audit procedures in respect of this key
audit matter:
• We performed inquiries of management in respect of how the
changes in current economic environment have affected the
Group and its financial performance measures.
• We tested compliance with debt covenants under the Group’s
loan obligations, received documents in respect of changes
made in 2022 in debt securities repayment mechanism and
terms of service of Eurobonds. We confirmed that loan
obligations of the Group denominated in foreign currency were
fulfilled timely and in full amount.
• We have analysed terms of sales contracts to identify new non-
standard sales terms, performed detailed testing of the
supporting documents and received on a sample basis a third
party confirmation to ensure sales revenue is recognised
properly and in correct period in the consolidated financial
statements.
• We performed analytical procedures of revenues by main
products, including comparison with market prices to ensure that
changes in the Group revenue are in line with market trends.
• We tested changes in the Group structure, in particular we:
-
-
-
-
-
analysed the agreement and key terms of the transaction for
disposal of foreign subsidiaries of the Group;
assessed and challenged management conclusions relating
to loss of control by the Group;
assessed reasonableness of management assumptions
applied for estimation of fair value of the Group’s 5%
investment in Phosint Limited;
examined accounting transactions for disposal of these
companies in the consolidated financial statements of the
Group;
analysed management’s calculation of allowance for
expected credit losses in respect of receivable accrued as a
result of disposal.
• We assessed reasonableness of the following key assumptions
used by management for calculation of allowance for expected
credit losses in respect of trade and other receivables: credit
rating of the debtor, probability of default and loss given default.
• We analysed events after the reporting date for existence of
circumstances which could have significant adverse effect on the
consolidated financial position and consolidated financial
performance of the Group.
2
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile
www.tedo.ru
www.tedo.ru
Other matter – Materiality and Group audit scope
Other information
Overview
Materiality
Group scoping
Materiality
Overall Group materiality: Russian Roubles (“RUB”) 11,615 million, which
represents 5% of profit before tax.
• We conducted audit work at all significant reporting units in the Russian
Federation and abroad.
• Our audit scope addressed 94% of the Group’s revenues and 94% of the
Group’s absolute value of underlying profit before tax.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
consolidated financial statements. In particular, we considered where management made subjective judgements;
for example, in respect of significant accounting estimates that involved making assumptions and considering
future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management
override of internal controls including, among other matters, consideration of whether there was evidence of bias
that represented a risk of material misstatement due to fraud.
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable
assurance whether the consolidated financial statements are free from material misstatement. Misstatements may
arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the
overall Group materiality for the consolidated financial statements as a whole as set out in the table below. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and
extent of our audit procedures and to evaluate the effect of misstatements, if any, both individually and in
aggregate on the consolidated financial statements as a whole.
Management is responsible for the other information. The other information comprises the Integrated annual report
for 2022 and the Company’s Securities issuer’s report for the 12 months ended 31 December 2022 (but does not
include the consolidated financial statements and our auditor’s report thereon), which are expected to be made
available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other information is
materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
When we read the Integrated annual report for 2022 and the Company’s Securities issuer’s report for the 12
months ended 31 December 2022, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Responsibilities of management and those charged with governance for the consolidated financial
statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with IFRS, and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Overall Group materiality
RUB 11,615 million (2021: RUB 8,003 million)
Auditor’s responsibilities for the audit of the consolidated financial statements
How we determined it
5% of profit before tax
Rationale for the materiality
benchmark applied
We chose profit before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured by users, and is a generally accepted benchmark. We chose 5%
which is consistent with quantitative materiality thresholds used for profit-
oriented companies in this sector
How we tailored our Group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the
consolidated financial statements as a whole, taking into account the structure of the Group, the accounting
processes and controls, and the industry in which the Group operates.
Our group audit was focused on the significant components in the Russian Federation and abroad. For
components which are individually financially significant we performed an audit of their complete set of financial
information. The audit work for the significant components in the Russian Federation and abroad was performed by
the group auditor. We also included information systems and tax specialists in our group audit team.
By performing the above procedures at the components, combined with additional procedures at the Group level,
we have obtained sufficient and appropriate audit evidence regarding the consolidated financial statements of the
Group as a whole.
3
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile
www.tedo.ru
Consolidated Statement of Profit or Loss
and Other Comprehensive Income for 2022
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or
safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
The certified auditor responsible for the audit resulting in this independent auditor’s report is A.Y. Fegetsyn.
2 March 2023
Moscow, Russian Federation
A.Y. Fegetsyn is authorised to sign on behalf of the general director of Joint-Stock Company “Technologies of Trust
– Audit” (Principal Registration Number of the Record in the Register of Auditors and Audit Organizations (PRNR) –
12006020338), certified auditor (PRNR – 21906101957)
RUB million
Revenues
Cost of Group products sold
Cost of products for resale
Gross profit
Administrative and selling overhead expenses
Taxes, other than income tax, net
Other expenses, net
Foreign exchange loss from operating activities, net
Operating profit
Gain from revaluation of financial assets measured at fair value
Finance income
Finance costs
Note
6
7
8
9
10
17
11
11
Foreign exchange gain/(loss) from financing activities, net
28(b)
COVID19 related expenses
Profit before tax
Income tax expense
Profit /(loss) for the year
Attributable to:
Non-controlling interests1
Shareholders of the Company
Basic and diluted earnings per share (in RUB)
Other comprehensive loss
Items that will never be reclassified to profit or loss
Actuarial losses
Items that may be reclassified subsequently to profit or loss
Foreign currency translation difference
Foreign currency translation difference reclassified to profit or loss upon
loss of control over foreign subsidiaries
Actuarial losses reclassified to profit or loss upon loss of control
over foreign subsidiaries
Other comprehensive loss for the year
Total comprehensive income/(loss) for the year
Attributable to:
Non-controlling interests1
Shareholders of the Company
The consolidated financial statements were approved on 2 March 2023:
12
23
26
29
2022
569,527
(253,419)
(15,599)
300,509
(42,403)
(11,327)
(9,371)
(9,068)
228,340
-
4,439
(11,967)
11,485
-
232,297
(47,583)
184,714
52
184,662
1,426
(276)
(2,929)
(6,302)
61
(9,446)
175,268
52
175,216
2021
420,488
(206,082)
(12,725)
201,681
(27,845)
(5,946)
(3,449)
(307)
164,134
1,193
778
(5,044)
(531)
(475)
160,055
(30,381)
129,674
(23)
129,697
1,002
(36)
(350)
-
-
(386)
129,288
(23)
129,311
M.K. Rybnikov
Chief executive officer
A.F. Sharabaiko
Deputy CEO for Finance and International Projects
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 5 to 37.
336
337
5
1 Non-controlling interests are the minority shareholders of the subsidiaries of PJSC “PhosAgro”
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Consolidated Statement of Financial Position
as at 31 December 2022
Consolidated Statement of Cash Flows for 2022
RUB million
Note
2022
2021
RUB million
ASSETS
Property, plant and equipment
Advances issued for property, plant and equipment
Other non-current assets
Deferred tax assets
Non-current spare parts
Right-of-use assets
Intangible assets
Catalysts
Investments in associates
Non-current assets
Trade and other receivables
Inventories
Cash and cash equivalents
VAT and other taxes receivable
Other financial assets
Income tax receivable
Current assets
Total assets
EQUITY
Share capital
Share premium
Retained earnings
Actuarial losses
Foreign currency translation reserve
Equity attributable to shareholders of the Company
Equity attributable to non-controlling interests
Total equity
LIABILITIES
Loans and borrowings
Deferred tax liabilities
Lease liabilities
Defined benefit obligations
Non-current liabilities
Loans and borrowings
Trade and other payables
VAT and other taxes payable
Lease liabilities
Income tax payable
Dividends payable
Current liabilities
Total equity and liabilities
Note
31 December 2022
31 December 2021
CASH FLOWS FROM OPERATING ACTIVITIES
13
17
16
14
15
20
19
21
18
22
24
16
25
26
24
27
25
274,522
237,444
9,270
8,546
7,903
5,125
4,277
2,099
1,965
592
314,299
75,741
39,349
13,356
12,565
210
93
141,314
455,613
372
7,494
190,664
(968)
-
197,562
158
197,720
109,784
17,820
1,660
1,050
130,314
80,974
39,412
5,632
1,276
203
82
127,579
455,613
13,237
2,058
9,499
4,698
6,955
1,756
2,049
569
278,265
48,526
41,177
21,710
15,013
216
540
127,182
405,447
372
7,494
148,193
(753)
9,231
164,537
106
164,643
157,081
12,937
3,459
952
174,429
12,710
41,754
6,397
2,178
3,334
2
66,375
405,447
Operating profit
Adjustments for:
Depreciation and amortisation
Loss on disposal of property, plant and equipment and intangible assets
Operating profit before changes in working capital and provisions
Increase in inventories, catalysts and non-current spare parts
Decrease/(increase) in trade and other receivables1
(Decrease)/increase in trade and other payables1
Cash flows from operations before income taxes and interest paid
Income tax paid
Finance costs paid
Cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment and intangible assets
Cash and cash equivalents disposed as a result of loss of control over foreign
subsidiaries
Loans issued
Borrowing cost capitalised paid
Advances issued for right-of-use assets
Finance income received
Proceeds from disposal of financial assets measured at fair value through
profit or loss
Other
Cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings, net of transaction costs
Repayment of borrowings
Dividends paid to shareholders of the Company
Lease payments
Cash flows used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Effect of exchange rates fluctuations
Cash and cash equivalents at 31 December
228,340
164,134
29,539
429
258,308
(12,308)
7,498
(3,131)
250,367
(41,811)
(5,275)
203,281
(63,021)
(36,729)
(3,130)
(976)
(850)
3,783
1,778
159
27,676
198
192,008
(10,855)
(38,667)
17,490
159,976
(28,806)
(4,945)
126,225
(47,951)
-
-
(1,141)
-
583
-
141
(98,986)
(48,368)
57,171
(23,926)
(142,111)
(1,429)
(110,295)
(6,000)
21,710
(2,354)
13,356
61,622
(50,081)
(72,260)
(1,950)
(62,669)
15,188
8,460
(1,938)
21,710
7, 8
10
29
18
13
17
24
24
22
25
21
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 5 to 37.
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 5 to 37.
1
Changes in trade and other receivables and changes in trade and other payables include effect of foreign exchange differences
from operating activities
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Consolidated Statement of Changes in Equity for 2022
RUB million
Attributable to shareholders of the Company
l
a
t
i
p
a
c
e
r
a
h
S
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u
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r
a
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S
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R
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a
e
l
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a
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t
a
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s
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t
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e
r
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r
r
u
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i
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g
e
r
o
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u
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i
r
t
t
A
g
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i
l
l
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r
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n
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c
s
t
s
e
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e
t
n
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-
n
o
n
o
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o
T
y
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q
e
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o
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Balance at 1 January 2021
372
7,494
90,757
(717)
9,581
107,487
129
107,616
Notes to the Consolidated Financial Statements
for 2022
1. Background
(a) Organisation and operations
PJSC “PhosAgro” (the “Parent” or the “Company”) is a public joint stock company registered in accordance with Russian
legislation. PJSC “PhosAgro” and its subsidiaries (together referred to as the “Group”) comprise Russian legal entities.
The Company was registered in October 2001. The Parents’s location is Leninsky prospekt 55/1 building 1, Moscow,
Russian Federation, 119333.
-
-
-
-
129,697
-
-
(72,261)
-
(36)
-
-
-
-
(350)
129,697
(23)
129,674
(36)
(350)
-
-
(36)
(350)
The Group’s principal activity is production of apatite concentrate and mineral fertilisers at plants located in the cities
of Kirovsk (Murmansk region), Cherepovets (Vologda region), Balakovo (Saratov region) and Volkhov (Leningrad region),
and their distribution across the Russian Federation and abroad.
-
(72,261)
-
(72,261)
holding approximately 20.3% of the Parent’s ordinary shares, ILLC Adorabella holding approximately 23.3% of the Parent’s
As at 31 December 2022, the Parent’s key shareholders are two entities registered in Russia – ILLC Chlodwig Enterprises
TOTAL COMPREHENSIVE INCOME/
(LOSS)
Profit/(loss) for the year
Actuarial losses, note 26
Foreign currency translation difference
TRANSACTIONS WITH OWNERS
RECOGNISED DIRECTLY IN EQUITY
Dividends to shareholders
Balance at 31 December 2021
Balance at 1 January 2022
TOTAL COMPREHENSIVE INCOME/
(LOSS)
Profit for the year
Actuarial losses, note 26
Foreign currency translation difference
Foreign currency translation difference
reclassified to profit or loss upon loss
of control over foreign subsidiaries, note 29
Actuarial losses reclassified to profit
or loss upon loss of control over foreign
subsidiaries
TRANSACTIONS WITH OWNERS
RECOGNISED DIRECTLY IN EQUITY
Dividends to shareholders, note 22
-
-
-
-
372
372
-
-
-
-
-
-
7,494
148,193
(753)
9,231
164,537
7,494
148,193
(753)
9,231
164,537
106
106
164,643
164,643
-
-
184,662
(276)
(2,929)
(2,929)
(6,302)
(6,302)
61
52
184,714
-
-
-
-
(276)
(2,929)
(6,302)
61
-
-
-
-
-
184,662
-
-
-
-
-
(276)
-
-
61
-
(142,191)
-
-
-
-
Balance at 31 December 2022
372
7,494 190,664
(968)
(142,191)
197,562
-
(142,191)
158
197,720
ordinary shares and T.P. Litvinenko holding approximately 21% of the Parent’s ordinary shares. As at 31 December 2021,
the Parent’s key shareholders were entities registered in Switzerland – Chlodwig Enterprises AG that held approximately
20.3%, Adorabella AG that held approximately 23.3% and V.S. Litvinenko who held approximately 21% of the Parent’s
ordinary shares. As at 31 December 2022 and 31 December 2021, the Parent does not have the ultimate controlling party
in accordance with the definitions of control described in IFRS 10 Consolidated Financial Statements.
(b) Russian business environment
The Group’s operations are primarily located in the Russian Federation. Consequently, the Group is exposed
to the economic and financial conditions of the Russian Federation, which display certain characteristics of an emerging
market. Its economy is particularly sensitive to oil and gas prices. The legal, tax and regulatory frameworks continue
development, and are subject to varying interpretations and frequent changes (note 31). The Russian economy
continues to be negatively impacted by ongoing political tension in the region and international sanctions against
certain Russian companies and individuals.
In 2022 ongoing political tensions intensified as a result of situation with Ukraine, which negatively affected commodity
and financial markets and increased volatility, especially in exchange rates. On 24 February 2022 Brent oil prices
increased to over USD 100 per barrel, foreign currency exchange rates reached RUB 90.88 per 1 EUR and RUB 80.42 per
1 USD. On 11 March 2022, RUB depreciation reached its maximum level and foreign currency exchange rates
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of,
were RUB 132.96 per 1 EUR and RUB 120.38 per 1 USD. Subsequently, these exchange rates strengthened, although they
the consolidated financial statements set out on pages 5 to 37.
remained volatile during the reporting period. It is not possible to determine how long this increased volatility will last
or when the above indicators will revert to previous levels.
A number of sanctions have been introduced to restrict Russian entities from having access to European and USA
financial markets. Sanctions included access termination to SWIFT international system for several Russian banks
which could potentially impact the Group’s ability to transfer or receive funds. As a result of restrictions, there is a risk
that USD-denominated coupon payments will not reach the final debt securities holders through foreign paying
agents. In October 2022 the Group received approval from Eurobond holders to change debt securities repayment
mechanism. These changes are mainly aimed at reducing repayment risks and in providing that payments can
be made both through the main paying agent and directly to noteholders. In March 2022, Andrey A. Guryev
was included in the European Union sanctions list, followed by his resignation from the Company’s CEO role and his
post on the Board of Directors. The future effects of current economic situation and the above measures are difficult
to predict. Management’s current expectations and estimates could differ from actual results.
Management of the Group has considered events and conditions that could give rise to material uncertainties
and concluded that the range of possible outcomes does not cast significant doubt over the Group’s ability to continue
as a going concern.
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile
2. Basis of preparation
The resulting foreign exchange difference is recognised in other comprehensive income.
(a) Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board.
The Group additionally prepares IFRS consolidated financial statements in the Russian language in accordance
with the Federal Law No. 208FZ On consolidated financial reporting.
(b) Basis of measurement
The consolidated financial statements are prepared on the historical cost basis except for the financial assets measured
at fair value.
(c) Functional currency
The national currency of the Russian Federation is the Russian Rouble (“RUB”), which is the functional currency
of the Parent and its subsidiaries. In March 2022, the Group lost control over its 100% foreign subsidiary Phosint Limited
(currently PUREFERT LIMITED) owning all the foreign companies of the Group (note 29). Until the disposal, the Group
included subsidaries with the functional currency USD, EUR and other currencies.
(d) Presentation currency
These consolidated financial statements are presented in RUB. All financial information presented in RUB has been
rounded to the nearest million, except per share amounts.
(e) Use of estimates and judgments
The preparation of consolidated financial statements in conformity with IFRS requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts
of assets and liabilities. Actual results may differ from those estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and in any future periods affected.
Information about critical assumptions and estimation uncertainties that have the most significant effect
on the amounts recognised in the consolidated financial statements is included in the following notes:
• Note 3 (c) (iii) – estimated useful lives of property, plant and equipment;
• Note 29 – loss of control over foreign subsidiaries previously controlled by the Group and recognition of accounts
receivable as a result of their disposal.
(f) Adoption of new and revised standards and interpretations
• COVID19Related Rent Concessions – Amendments to IFRS 16 (issued on March 31, 2021 and effective for annual
periods beginning on or after April 1, 2021). The amendment extended the date of the practical expedient
provided by Amendments to IFRS 16 issued on 28 May 2020 from 30 June 2021 to 30 June 2022. The application
of the amendment did not have an impact on the right-of-use asset.
The following amended standards became effective from 1 January 2022, but did not have a material impact
The translation from USD and EUR into RUB, where applicable, was performed as follows:
on the Group:
Assets and liabilities in USD and EUR as at 31 December 2022 and 31 December 2021 were translated at the following
Framework – narrow scope amendments to IAS 16, IAS 37 and IFRS 3, and Annual Improvements to IFRSs 2018-2020 –
• Proceeds before intended use, Onerous contracts – cost of fulfilling a contract, Reference to the Conceptual
closing exchange rates:
Closing exchange rate
31 December 2022
31 December 2021
RUB to USD 1
RUB to EUR 1
70.3375
74.2926
75.6553
84.0695
Profit and loss items of foreign subsidiaries previously controlled by the Group for 2022 (until the Group lost control
amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41 (issued on 14 May 2020 and effective for annual periods beginning
on or after 1 January 2022).
(g) New standards and interpretations not yet adopted
A number of new standards and interpretations have been issued that are mandatory for the annual periods beginning
on or after 1 January 2023 or later, and which the Group has not early adopted, but is in process of assessing the impact
on the Group’s consolidated financial statements.
• Sale or contribution of assets between an investor and its associate or joint venture – Amendments to IFRS 10 and IAS 28
over Phosint Limited) and 2021 were converted at the average exchange rate for the appropriate month:
(issued on 11 September 2014 and effective for annual periods beginning on or after a date to be determined by the IASB).
•
IFRS 17 “Insurance Contracts” (issued on 18 May 2017 and effective for annual periods beginning on or after
Average exchange rate for the month
2022
2021
1 January 2023).
RUB to USD 1
RUB to EUR 1
RUB to USD 1
RUB to EUR 1
• Amendments to IFRS 17 and an amendment to IFRS 4 (issued on 25 June 2020 and effective for annual periods
January
February
March
April
May
June
July
August
September
October
November
December
75.8837
77.4048
104.0810
85.9393
87.7638
114.7127
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
74.2291
74.3842
74.4151
76.0977
74.0438
72.5106
73.9194
73.5942
72.8914
71.4981
72.6024
73.7172
90.5062
89.9403
88.6904
90.8178
89.8856
87.4537
87.3794
86.6334
85.9412
82.9586
82.9339
83.3260
beginning on or after 1 January 2023).
• Classification of liabilities as current or non-current – Amendments to IAS 1 (issued on 23 January 2020 and effective
for annual periods beginning on or after 1 January 2022).
• Classification of liabilities as current or non-current, deferral of effective date – Amendments to IAS 1 (issued
on 15 July 2020 and effective for annual periods beginning on or after 1 January 2023).
• Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting policies (issued
on 12 February 2021 and effective for annual periods beginning on or after 1 January 2023).
• Amendments to IAS 8: Definition of Accounting Estimates (issued on 12 February 2021 and effective for annual
periods beginning on or after 1 January 2023).
• Deferred tax related to assets and liabilities arising from a single transaction – Amendments to IAS 12 (issued
on 7 May 2021 and effective for annual periods beginning on or after 1 January 2023).
• Transition option to insurers applying IFRS 17 – Amendments to IFRS 17 (issued on 9 December 2021 and effective
for annual periods beginning on or after 1 January 2023).
• Lease Liability in a Sale and Leaseback Amendments to IFRS 16 – Amendments to IFRS 16 (issued
on 22 September 2022 and effective for annual periods beginning on or after 1 January 2024).
Equity items arising during the year are recognised at the exchange rate ruling at the date of transaction.
• Non-current Liabilities with Covenants – Amendments to IAS 1 (issued on 31 October 2022 and effective for annual
periods beginning on or after 1 January 2024).
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile 3. Significant accounting policies
(c) Property, plant and equipment
(i) Owned assets
The accounting policies set out below have been applied consistently to all periods presented in these consolidated
Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses. The cost
financial statements.
(a) Basis of consolidation
(i) Subsidiaries
of property, plant and equipment at the date of transition to IFRS was determined by reference to its fair value at that
date (“deemed cost”) as determined by an independent appraiser.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights
includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
condition for their intended use and capitalised borrowing costs. Purchased software that is integral to the functionality
over the entity. The financial statements of subsidiaries are included in the consolidated financial statements
of the related equipment is capitalised as part of that equipment.
from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have
been changed when necessary to align them with the policies adopted by the Group.
Where an item of property, plant and equipment comprises major components having different useful lives, they
are accounted for as separate items of property, plant and equipment.
(ii) Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling
(ii) Subsequent expenditure
interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss
Expenses in connection with ordinary maintenance and repairs are recognised in the consolidated statement of profit
of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest
or loss and other comprehensive income as they are incurred.
is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee
or as measured at FVOCI financial asset depending on the level of influence retained.
Expenses in connection with periodic maintenance on property, plant and equipment are recognised as assets
and depreciated on a straight-line basis over the period until the next periodic maintenance, provided the criteria
(iii) Acquisitions and disposals of non-controlling interests
for capitalizing such items have been met.
Any difference between the consideration paid to acquire a non-controlling interest, and the carrying amount of that
non-controlling interest, is recognised in equity.
Expenses incurred in connection with major replacements and renewals of property, plant and equipment
are capitalised and depreciated on a systematic basis.
Any difference between the consideration received from disposal of a portion of a Group’s interest in the subsidiary
and the carrying amount of that portion, including attributable goodwill, is recognised in equity.
(iii) Depreciation
(iv) Associates
Depreciation is charged to the profit or loss on a straight-line basis over the estimated useful lives of the individual
assets. Depreciation commences on the month of acquisition or, in respect of internally constructed assets,
Associates are those enterprises in which the Group has significant influence, but not control, over the financial
from the month when an asset is completed and ready for use. Land is not depreciated.
and operating policies. The consolidated financial statements include the Group’s share of the total recognised gains
and losses of associates on an equity accounted basis, from the date that significant influence effectively commences
The estimated useful lives as determined when adopting IFRS (1 January 2005) for the assets reflected on the statement
until the date that significant influence effectively ceases. Dividends received from associates reduce the carrying
of financial position at that date are as follows:
value of the investment in associates. When the Group’s share of losses exceeds the Group’s interest in the associate,
that interest is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has
incurred obligations in respect of the associate.
(v) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements. Unrealised gains arising from transactions with associates
and jointly controlled enterprises are eliminated to the extent of the Group’s interest in the enterprise. Unrealised gains
resulting from transactions with associates are eliminated against the investment in the associate. Unrealised losses
are eliminated in the same way as unrealised gains except that they are only eliminated to the extent that there is no
evidence of impairment.
(b) Foreign currencies
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities
Buildings
Plant and equipment
Fixtures and fittings
12 to 17 years;
4 to 15 years;
3 to 6 years.
Tangible fixed assets acquired after the date of adoption of IFRS, are depreciated over the following useful lives:
Buildings
Plant and equipment
Fixtures and fittings
10 to 60 years;
5 to 35 years;
2 to 25 years.
Management assesses the remaining useful lives in accordance with the current technical conditions of the assets
at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign
and estimated period during which the assets are expected to earn benefits for the Group.
currencies at the reporting date are translated to the functional currency at the exchange rate ruling at that date.
Non-monetary assets and liabilities denominated in foreign currencies that are stated at historical cost are translated
(iv) Capitalisation of borrowing costs
to the functional currency at the exchange rate ruling at the date of the transaction. Non-monetary assets and liabilities
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily
denominated in foreign currencies that are stated at fair value are translated at the exchange rate ruling at the dates
take a substantial time to get ready for intended use or sale (qualifying assets) are capitalised as part of the costs
the fair values were determined. Foreign exchange differences arising on translation are recognised in the profit or loss.
of those assets.
Capitalization of borrowing costs continues up to the date when the assets are substantially ready for their use or sale.
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile The Group capitalizes borrowing costs that could have been avoided if it had not made capital expenditure on qualifying
Financial assets at fair value through other comprehensive income (“FVOCI”). Financial assets are classified
assets. Borrowing costs capitalised are calculated at the Group’s average funding cost (the weighted average interest
and measured at fair value through other comprehensive income if they meet both of the following conditions:
cost is applied), except to the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset.
•
they are held within a business model whose objective is achieved by both collecting contractual cash flows
Where this occurs, actual borrowing costs are capitalised.
and selling financial assets; and
•
their contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
Borrowing costs capitalised are presented as part of cash flows from investing activities in the consolidated statement
on the principal amount outstanding.
of cash flows.
(v) Advances issued for property, plant and equipment
A prepayment is classified as non-current when the goods or services relating to the prepayment are expected
These financial assets are subsequently measured at fair value. Interest income calculated using the effective interest
method, foreign exchange gains and losses and impairment are recognised in profit or loss.
to be obtained after one year, or when the prepayment relates to an asset which will itself be classified as non-current
Financial assets at fair value through profit or loss (“FVPL”). Financial asset that do not meet the criteria for amortised
upon initial recognition.
(d) Intangible assets
(i) Research and development
cost or FVOCI are measured at fair value through profit or loss.
(f) Securitisation arrangements
The Group enters into non-recourse securitization arrangements under which insured trade receivables can be sold
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge
to a bank for cash proceeds.
and understanding, is recognised in the profit or loss as an expense as incurred.
Expenditure on development activities, whereby research findings are applied to a plan or design for the production
all risks and rewards of ownership, except for the amount of security deposit which represents insurance deductible
of new or substantially improved products and processes, is capitalised if the product or process is technically
amount for the receivables transferred to a bank. A deposit is recognised in trade receivables in the consolidated
and commercially feasible and the Group has sufficient resources to complete development. The expenditure
statement of financial position of the Group. The Group continues to collect and service the receivables and then
capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads. Other development
transfers to the bank the collected amounts of the trade receivables sold.
Trade receivables are derecognised from the statement of financial position as the Group does not retain substantially
expenditure is recognised in the profit or loss as an expense as incurred. Capitalised development expenditure is stated
at cost less accumulated amortisation and impairment losses.
(ii) Other intangible assets
The portfolio of trade receivables that can be sold to a bank meets the criteria for “held to collect and sell” business
model and such trade receivables are classified and measured at fair value through other comprehensive income.
Other intangible assets acquired by the Group are represented by Oracle software, which has finite useful life
Cash collected from the customers and not yet transferred to the bank at the reporting date is presented within other
and is stated at cost less accumulated amortisation and impairment losses.
payables in the consolidated statement of financial position of the Group. Securitization fees are recognised as finance
(iii) Amortisation
Intangible assets, other than goodwill, are amortised on a straight-line basis over their estimated useful lives
from the date the asset is available for use. The estimated useful lives are 3 – 10 years.
(e) Financial instruments
Non-derivative financial instruments
costs.
(g) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term highly liquid
investments with original maturities of three months or less.
Bank deposits held for longer than three months that are repayable on demand within several working days without
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables,
penalties or that can be redeemed/withdrawn, subject to the interest income forfeited, are classified as cash equivalents
cash and cash equivalents, loans and borrowings, and trade and other payables.
if the deposits are held to meet short-term cash needs and there is no significant risk of a change in value as a result
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through
profit or loss, any directly attributable transaction costs.
of an early withdrawal.
(h) Inventories
Inventories are stated at the lower of cost and net realisable value. The cost of inventory (finished goods and goods
The Group financial assets are classified in the following measurement categories based on the Group’s business
for resale) for distribution companies is determined on the first-in, first-out (FIFO) basis. The cost of inventories
model for managing the financial assets and the contractual terms of the cash flows: financial assets at amortised cost;
for production companies is based on the weighted average principle and includes expenditure incurred in acquiring
financial assets at fair value (either through other comprehensive income or profit or loss).
Financial assets at amortised cost. Financial asset is measured at amortised cost if it meets both of the following
the inventories and bringing them to their existing location and condition. In the case of manufactured inventories
and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.
conditions:
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs
•
the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
of completion and selling expenses.
and
•
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
Spare parts to be used for construction and in repairs capitalised are classified as non-current spare parts.
of principal and interest on the principal amount outstanding.
The financial assets are measured at amortised cost using the effective interest method, less any impairment losses.
and written-off to the production cost based on the volume of goods produced. Catalysts to be used in production
Any gains or losses arising from derecognition are recognised directly in profit or loss.
within 1 year are classified as part of inventories
Catalysts to be used in production during the period of more than 1 year are classified as part of non-current assets
346
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile (i) Impairment
Financial assets
Lease payments included in the measurement of the lease liability comprise the following:
• fixed payments;
The Group recognises loss allowances for expected credit loss (ECLs) on financial assets measured at amortised cost
• variable lease payments that depend on the rate;
and financial assets measured at fair value through other comprehensive income (“FVOCI”). The loss allowances
• amounts expected to be payable under a residual value guarantee.
are measured on either of the following bases: 12month ECLs that result from default events that are possible within
the 12 months after the reporting date; and lifetime ECLs that result from all possible default events over the expected
Lease liability is measured at amortised cost using the effective interest method. It is revalued when there is a change
life of a financial instrument.
in future lease payments arising from adjusted interest rate, extension or termination option and other events.
For trade receivables the Group estimated the expected credit losses for the entire period, applying a simplified
Under IFRS 16, right-of-use assets are tested for impairment in accordance with IAS 36 Impairment of Assets.
approach to measuring expected credit losses, which uses lifetime expected loss allowance. In the terms of calculating
the expected credit loss, the Group considers the credit rating for each counterparty, adjusted with forward-looking
For short-term leases (lease term of 12 months or less) and leases of low-value assets the Group has opted
factors specific to the debtors, historical credit loss experience and economic environment in which they operate.
to recognise a lease expense on a straight-line basis as permitted by IFRS 16. This expense is presented within cost
of sales, administrative expenses and selling expenses in the consolidated statement of profit or loss and other
If, in a subsequent period, the fair value of an impaired financial assets increases and the increase can be related
comprehensive income.
objectively to an event occurring after the impairment loss was recognised in profit or loss, then the impairment loss
is reversed, with the amount of the reversal recognised in profit or loss.
(k) Share capital
(i) Repurchase of share capital
Non-financial assets
When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed
attributable costs, is deducted from equity.
at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then
the asset’s recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
(ii) Dividends
Dividends are recognised as a liability in the period in which they are declared.
(l) Financial liabilities
The Group’s financial liabilities comprise trade and other payables, borrowings and bonds which are measured
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates
at amortised cost. The Group derecognises a financial liability when its obligation specified in the contract is discharged
cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets
or cancelled or expires.
(the “cash-generating unit”).
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable
(m) Employee benefits
(i) Pension plans
amount. Impairment losses are recognised in the profit or loss. Impairment losses recognised in respect of cash-
The Group’s net obligation in respect of defined benefit post-employment plans, including pension plans, is calculated
generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units, if any, and then
separately for each plan by estimating the amount of future benefit that employees have earned in return for their
to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
service in the current and prior periods. That benefit is discounted to determine its present value, and the fair value
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised
that have maturity dates approximating the terms of the Group’s obligations. The calculation is performed using
of any plan assets, if any, is deducted. The discount rate is the yield at the reporting date on government bonds
in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.
the projected unit credit method.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees
that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
is recognised immediately as an expense in the profit or loss. To the extent the benefits vest immediately, the expense
( j) Leases
As a lessee
Applying IFRS 16 for all leases (except as noted below), the Group:
is recognised immediately in the profit or loss.
All actuarial gains and losses are recognised in full as they arise in other comprehensive income.
•
recognises right-of-use assets and lease liabilities in the consolidated statement of financial position, initially
(ii) Long-term service benefits other than pensions
measured at the present value of future lease payments;
The Group’s net obligation in respect of long-term service benefits, other than pension plans, is the amount of future
•
recognises depreciation of right-of-use assets and interest on lease liabilities in the consolidated statement of profit
benefits that employees have earned in return for their service in the current and prior periods. The obligation
or loss and other comprehensive income; and
is calculated using the projected unit credit method and is discounted to its present value and the fair value
• separates the total amount of cash paid into a principal portion (presented within financing activities) and interest
of any related assets is deducted. The discount rate is the yield at the reporting date on government bonds that have
(presented within operating activities) in the consolidated statement of cash flows.
maturity dates approximating the terms of the Group’s obligations. All actuarial gains and losses are recognised in full
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing
sources and making certain adjustments to reflect the terms of the lease and type of the asset leased.
(iii) State pension fund
as they arise in other comprehensive income.
The Group makes contributions for the benefit of employees to Russia’s State pension fund. The contributions
are expensed as incurred.
348
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile (n) Provisions
A provision is recognised when the Group has a legal or constructive obligation as a result of a past event,
Finance costs comprise interest expense on borrowings, interest expense on lease liabilities, bank fees, interest expense
on defined benefit obligations, securitisation fees, increase in provision for bad debts for financial investments,
and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material,
share of loss of associates and foreign exchange losses on financing activities. Borrowing costs that are not directly
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using
assessments of the time value of money and, where appropriate, the risks specific to the liability.
the effective interest method.
(o) Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except
to the extent that it relates to items recognised in other comprehensive income, in which case it is recognised in other
comprehensive income.
Foreign currency gains and losses, gains and losses arising from operations with foreign currency, securitisation fees
and share of profit and losses of associates are reported on a net basis.
(r) Overburden removal expenditure
In open pit apatite rock mining operations, it is necessary to remove the overburden and other waste in order to access
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
the economically recoverable resources.
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying
of the development of the mining property and amortised over the life of the mine.
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction
According to the Group’s approach to stripping, the ore, which becomes accessible after the overburden removal,
that is not a business combination and that affects neither accounting nor taxable profit, and differences relating
is extracted within no more than four months. Therefore, the stripping ratio (volume of overburden removed
to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future.
over the volume of resources extracted) is expected to stay relatively constant over the future periods and stripping costs
In addition, deferred tax is not recognised for taxable temporary differences arising on the initial recognition of goodwill.
incurred during the production phase of the open pit mine are recognised in the profit or loss as incurred.
Stripping costs incurred during the pre-production phase of the open pit mine are capitalised as the cost
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets
and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities, and they relate
(s) Earnings per share
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic EPS is calculated
to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend
by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number
to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
of ordinary shares outstanding during the period, adjusted for own shares held.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against
If the number of ordinary shares outstanding increases/ decreases as a result of a share split/ reverse share split,
which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced
the calculation of the EPS for all periods presented is adjusted retrospectively.
to the extent that it is no longer probable that the related tax benefit will be realised.
(p) Revenues
Revenue from contracts with customers is recognised when control of the goods or services is transferred to a customer.
4. Determination of fair values
The amount of revenue recognised reflects the consideration the Group expects to be entitled in exchange for goods
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair
or services, taking into account any trade, volume and other discounts. Advances received before the control passes
values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
to a customer are recognised as the contract liabilities. The amount of consideration does not contain a significant
as follows:
financial component as payment terms for the majority of contracts are less than one year. No information is provided
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
about remaining performance obligations as at the reporting date that have an original expected duration of one year
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly
or less, as allowed by IFRS 15.
(i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Contracts with customers for the supply of goods use a variety of delivery terms. The Group determined that under
the terms of the certain contracts for the supply of mineral fertilizers the Group undertakes to provide delivery
If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair
and the related delivery services after the transfer of control over the goods to the buyer at the loading port. Under
value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy
IFRS 15, these services are a separate performance obligation, which revenue must be recognised during the period
as the lowest level input that is significant to the entire measurement.
of delivery as revenue from logistics activities. The Group recognises revenue from these logistics services at the time
of delivery, due to the fact that the potential difference is calculated and recognised as insignificant.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which
the change has occurred.
In the revenue disclosure the sales of certain product groups include the proceeds from transportation services. Costs
related to rendering of transportation services are mainly represented by logistics costs and included in cost of Group
Fair values have been determined for measurement and / or disclosure purposes based on the methods described
products sold.
(q) Finance income and finance costs
Finance income comprises interest income, dividend income, unwinding of discount on financial assets and share
of profit of associates and foreign exchange gains on financing activities. Interest income is recognised as it accrues
below. When applicable, further information about the assumptions made in determining fair values is disclosed
in the notes specific to that asset or liability.
(a) Financial assets and liabilities measured at amortised cost
The fair values of financial assets and liabilities presented by loans issued, trade and other receivables, cash and cash
in profit or loss, using the effective interest method. Dividend income is recognised in profit or loss on the date that
equivalents, trade and other payables approximate their carrying amounts as at the reporting date.
the Group’s right to receive payment is established.
350
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile The fair values of Eurobonds are determined for disclosure purposes based on quoted market prices and included
in level 1 of the fair value hierarchy. The fair values of loans and borrowings are categorised as Level 3 of the fair
value hierarchy. The fair values are calculated based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the reporting date.
(b) Financial instruments measured at fair value
The fair value of financial assets measured at fair value through profit or loss is determined using valuation techniques
and categorised as Level 3 of the fair value hierarchy.
5. Seasonality
The Group is subject to certain seasonal fluctuations in fertiliser demand due to the timing of fertiliser application and,
as a result, fertiliser purchases by farmers. This normally results in increase of advances received from local customers
8. Administrative and selling overhead expenses
RUB million
Administrative overhead expenses:
Salaries and social contributions
Professional services
Depreciation and amortisation
Security and fire safety services
Other
Selling overhead expenses:
Salaries and social contributions
Depreciation and amortization
Materials and services
2022
(37,328)
(29,015)
(2,386)
(1,387)
(1,222)
(3,318)
(5,075)
(2,885)
(1,173)
(1,017)
2021
(21,083)
(13,493)
(1,971)
(1,384)
(1,053)
(3,182)
(6,762)
(4,002)
(1,480)
(1,280)
at the year-end. However, the effect of seasonality on the Group’s revenue is partially offset by the fact that the Group
Administrative and selling overhead expenses
(42,403)
(27,845)
sells its fertilisers globally and fertiliser application and purchases vary by region.
The Group’s costs are generally stable throughout the year, however several maintenance activities undertaken
9. Taxes, other than income tax, net
at the Group’s production facilities may not be evenly spreaded.
6. Revenues
RUB million
Phosphate-based and nitrogen-based products
Other
Revenues
7. Cost of Group products sold
RUB million
Production expense for Group goods sold
Sulphur and sulphuric acid
Potash
Materials and services
Depreciation
Salaries and social contributions
Ammonia
Natural gas
Repair and maintenance expenses
Transportation of phosphate rock
Electricity
Fuel
Ammonium sulphate
Drilling and blasting operations expenses
Logistics expenses for Group goods sold
Freight, port and stevedoring expenses
Russian Railways infrastructure tariff and operators’ fees
Customs duties
Other services and materials
Cost of Group products sold
2022
551,037
18,490
2021
404,850
15,638
569,527
420,488
2022
2021
(222,360)
(163,034)
(40,798)
(27,418)
(27,349)
(26,979)
(19,667)
(19,550)
(14,226)
(12,002)
(11,610)
(6,754)
(6,459)
(6,331)
(3,217)
(31,059)
(16,382)
(12,647)
(1,420)
(610)
(17,707)
(16,574)
(23,120)
(24,812)
(15,286)
(14,277)
(12,635)
(11,373)
(9,105)
(6,740)
(5,578)
(2,341)
(3,486)
(43,048)
(28,587)
(10,728)
(2,483)
(1,250)
(253,419)
(206,082)
RUB million
Mineral extraction tax
Property tax
Land tax
Environment pollution payment
VAT included in expenses
Using water objects payment
Other taxes
Taxes, other than income tax, net
10. Other expenses, net
RUB million
Social expenditures
Increase in provision for bad debt and expected credit losses allowance
Loss on disposal of property, plant and equipment and intangible assets
(Accrual)/reversal of contingent liabilities
Gain on disposal of inventories
Decrease/(increase) in provision for inventory obsolescence
Other income, net
Other expenses, net
2022
(8,707)
(1,890)
(226)
(207)
(162)
(58)
(77)
2021
(3,605)
(1,694)
(222)
(211)
(113)
(53)
(48)
(11,327)
(5,946)
2022
(9,314)
(539)
(429)
(32)
276
120
547
2021
(3,378)
(125)
(198)
2
387
(370)
233
(9,371)
(3,449)
352
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile 11. Finance income and finance costs
RUB million
Interest income
Unwinding of discount on financial assets
Other finance income
Finance income
Provision for impairment of loans issued (note 18)
Discount on extension of payment terms (note 17, 29)
Interest expense on borrowings (note 24)
Interest expense on lease liabilities (note 25)
Bank fees
Interest expense on defined benefit obligations
Loss from revaluation of financial instruments
Securitization fees
Increase in provision for bad debts for financial investments
Other finance costs
Finance costs
12. Income tax expense
The Company’s applicable corporate income tax rate is 20% (2021: 20%).
RUB million
Current tax expense
Deferred income tax – origination and reversal of temporary differences, including change
in unrecognised assets
Income tax expense
Reconciliation of income tax:
RUB mln
Profit before tax
Income tax at applicable tax rate
Tax effect of items which are not deductible or assessable for taxation purposes
Tax effect on receivables recognised from disposal of Phosint Group (note 17)
Tax effect on provision for loans issued
Tax effect on foreign exchange differences on receivables recognised from disposal of Phosint
Group (note 17)
Effect of reduction in tax rate
Effect of tax rates in foreign jurisdictions
Prior years tax adjustments
Change in tax incentive
Income tax expense
2022
3,818
519
102
4,439
(4,124)
(2,777)
(4,223)
(244)
(258)
(56)
(55)
(47)
(14)
(169)
2021
643
64
71
778
-
-
(3,910)
(395)
(221)
(48)
-
(146)
(81)
(243)
(11,967)
(5,044)
2022
(41,465)
(6,118)
2021
(31,073)
692
(47,583)
(30,381)
2022
232,297
(46,459)
(2,072)
(1,647)
(517)
(295)
3,289
118
-
-
2021
160,055
(32,011)
(1,017)
-
-
-
2,163
431
78
(25)
(47,583)
(30,381)
13. Property, plant and equipment
RUB Million
Land
and buildings
Plant
and equipment
Fixtures
and fittings
Construction
in progress
Total
Gross book value at 1 January 2021
Additions
Transfers to right-of-use assets (note 14)
Transfers
Disposals
Other transfers
Gross book value at 31 December 2021
Additions
Transfers
Disposals
Disposal of foreign subsidiaries (note 29)
Other transfers
Gross book value at 31 December 2022
Accumulated depreciation
at 1 January 2021
Transfers to right-of-use assets (note 14)
Depreciation
Disposals
Other transfers
Accumulated depreciation
at 31 January 2021
Depreciation
Disposals
Disposal of foreign subsidiaries (note 29)
Other transfers
Accumulated depreciation
at 31 January 2022
Net book value at 1 January 2021
Net book value at 31 December 2021
Net book value at 31 December 2022
104,605
1,529
-
11,760
(1,450)
(44)
116,400
3,312
20,246
(1,071)
(1,129)
62
137,820
(25,455)
-
(6,425)
1,263
8
187,961
4,406
(15)
18,110
(6,655)
(7)
203,800
14,193
26,198
(6,602)
(2,891)
138
234,836
(92,284)
7
(17,703)
6,560
10
17,900
3,031
-
-
(192)
(2)
20,737
3,125
-
(358)
(101)
11
23,414
(11,296)
-
(1,852)
179
1
(30,609)
(103,410)
(12,968)
(7,416)
(18,528)
(1,886)
973
357
(13)
6,270
1,241
59
305
85
(9)
(36,708)
(114,368)
(14,473)
38,600
349,066
34,866
43,832
-
(29,870)
(15)
-
(102)
(8,399)
-
(53)
43,494
384,431
47,160
67,790
(46,444)
-
(209)
(8,240)
-
-
(4,121)
211
44,001
440,071
-
-
-
-
-
-
-
-
-
-
-
(129,035)
7
(25,980)
8,002
19
(146,987)
(27,830)
7,548
1,683
37
(165,549)
79,150
85,791
101,112
95,677
100,390
120,468
6,604
7,769
8,941
38,600
220,031
43,494
237,444
44,001
274,522
During the year ended 31 December 2022, the Group capitalised borrowing costs in the amount of RUB 976 million (2021:
RUB 1,141 million) in the value of property, plant and equipment using the weighted average interest rate of 2.55% per
year (2021: 2.86% per year).
As at 31 December 2022, the most significant balances of the construction in progress related to the following
investment projects:
• Kirovsk branch of Apatit, JSC: Kirovsk mine extension and modernization. As at 31 December 2022, the Group has
capitalised expenses of RUB 13,458 million (as at 31 December 2021: RUB 14,045 million);
• Kirovsk branch of Apatit, JSC: Rasvumchorrskiy mine extension and modernization. As at 31 December 2022,
the Group capitalised expenses of RUB 4,821 million (as at 31 December 2021: RUB 2,667 million);
• Kirovsk branch of Apatit, JSC: apatit-nepheline beneficiation plants extension and modernization.
As at 31 December 2022, the Group capitalised expenses of RUB 4,575 million (as at 31 December 2021:
RUB 2,414 million);
• Volkhov branch of Apatit, JSC: MAP facilities construction. As at 31 December 2022, the Group has capitalised
expenses of RUB 3,385 million (as at 31 December 2021: RUB 13,362 million);
• Balakovo branch of Apatit, JSC: granulated ammonium sulphate facilities construction. As at 31 December 2022,
the Group has capitalised expenses of RUB 2,616 million (as at 31 December 2021: RUB 1,862 million);
• Apatit, JSC, Cherepovets: ammonia production facilities support and modernization. As at 31 December 2022,
the Group has capitalised expenses of RUB 1,724 million (as at 31 December 2021: RUB 1,077 million).
354
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Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile 14. Right-of-use assets
16. Deferred tax assets and liabilities
The Group has the following types of right-of-use assets: railway wagons, production equipment, offices. The leases
typically run for a period of 5 years, with an option to renew the lease after that date.
(a) Deferred tax assets and liabilities by type of temporary difference
Deferred tax assets and liabilities are attributable to the following items:
Buildings
Plant and equipment
RUB million
Net book value at 1 January 2021
New lease contracts and modification on existing lease contracts
Transfers from property, plant and equipment (note 13)
Depreciation
Disposals
Effect of foreign currency translation reserve
Net book value at 31 December 2021
Disposal of foreign subsidiaries (note 29)
New lease contracts and modification on existing lease contracts
Depreciation
Disposals
Effect of foreign currency translation reserve
Net book value at 31 December 2022
185
395
-
(100)
(20)
(8)
452
(246)
60
(78)
(67)
27
148
Amounts recognised in the consolidated statement of profit or loss and other comprehensive income:
RUB million
Depreciation expense on right-of-use assets
Interest expense on lease liabilities
Expenses relating to short-term leases
Expenses relating to leases with variable payments
Amounts recognised in the consolidated statement of cash flows:
RUB million
Principal lease payments (note 25)
Interest lease payments (note 25)
Expenses relating to short-term leases
Expenses relating to leases with variable payments
Total payments
15. Investments in associates
Carrying values of the Group’s investments in associates are as follows:
(1,673)
(1,773)
7,150
1,087
8
(68)
(1)
6,503
(18)
(1,118)
(1,108)
(132)
2
4,129
2022
1,186
244
349
498
2022
(1,429)
(244)
(349)
(498)
Total
7,335
1,482
8
(88)
(9)
6,955
(264)
(1,058)
(1,186)
(199)
29
4,277
2021
1,773
395
481
524
2021
(1,949)
(395)
(481)
(524)
(2,520)
(3,349)
RUB million
31 December 2022
31 December 2021
Carrying
value
Share
of ownership
Carrying
value
Share
of ownership
JSC Khibinskaya Teplovaya Kompaniya (Russia)
JSC Giproruda (Russia)
JSC Soligalichskiy izvestkovyi kombinat (Russia)
Total
504
62
26
592
50%
25%
26%
484
59
26
569
50%
25%
26%
RUB Million
Assets
Liabilities
Net
Assets
Liabilities
Net
Property, plant and equipment
and intangible assets
Other non-current assets
Current assets
Liabilities
Tax loss carry-forwards
Unrecognised deferred tax assets
Deferred tax assets/(liabilities)
Offset
Net deferred tax assets/(liabilities)
104
41
765
1,345
8,578
(55)
10,778
(2,875)
7,903
31 December 2022
31 December 2021
(15,986)
(15,882)
375
(13,714)
(13,339)
(1,199)
(1,945)
(1,565)
-
-
(20,695)
2,875
(17,820)
(1,158)
(1,180)
(220)
8,578
(55)
(9,917)
-
(9,917)
71
2,449
1,825
6,881
(55)
11,546
(2,047)
9,499
(256)
(809)
(205)
-
-
(14,984)
2,047
(12,937)
(185)
1,640
1,620
6,881
(55)
(3,438)
-
(3,438)
The deferred tax assets on tax loss carry-forwards relate to the Russian entities of the Group. Due to the Russian tax
legislation, starting from 1 January 2017, tax losses accumulated as at 31 December 2022 can be carried forward without
limitation on utilisation period.
Management has developed a tax strategy to utilise the tax losses above. In assessing the recoverability of the tax losses,
management considers a forecast of future taxable profits of the Group and the Group’s tax position. The forecast
is reviewed at each reporting date to ensure that the related tax benefit will be realised.
As at 31 December 2022, no deferred tax asset for deductible temporary differences of RUB 18,710 million associated
with investments in subsidiaries has been recognised (31 December 2021 no deferred tax liability has been recognised:
RUB 714 million), either because the Parent can control the timing of reversal of the temporary differences
and it is probable that the temporary differences will not reverse in the foreseeable future, or because the income
applicable tax rate is expected to be 0%.
(b) Movement in temporary differences during the year
RUB million
31 December 2022
Recognised
in profit
or loss
Recognised
in other
comprehensive
income
Disposal
of foreign
subsidiaries
1 January 2022
Property, plant and equipment,
right-of-use assets and intangible
assets
Other non-current assets
Current assets
Liabilities
Tax loss carry-forwards
Unrecognised deferred tax assets
Net deferred tax (liabilities)/
assets
(15,882)
(2,288)
(1,158)
(1,180)
(220)
8,578
(55)
(904)
(2,788)
(1,835)
1,697
-
(9,917)
(6,118)
25
10
37
3
-
-
75
(280)
(13,339)
(79)
(69)
(8)
-
-
(185)
1,640
1,620
6,881
(55)
(436)
(3,438)
356
357
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile RUB million
31 December 2021 Recognised
in profit
or loss
Recognised
in other
comprehensive
income
Reclassification 1 January 2021
Property, plant and equipment,
right-of-use assets
and intangible assets
Other non-current assets
Current assets
Liabilities
Tax loss carry-forwards
Unrecognised deferred tax
assets
Net deferred tax (liabilities)/
assets
17. Other non-current assets
(13,339)
(1,331)
(185)
1,640
1,620
6,881
(55)
(3,438)
(243)
1,337
10
919
-
692
1
(6)
(7)
(2)
-
-
(14)
(2)
(12,007)
-
-
2
-
-
-
64
310
1,610
5,962
(55)
(4,116)
As at 31 December 2021, financial assets measured at fair value through profit or loss include 9.27% share in a related
party JSC “AgroGuard-Finance”. In March 2022, JSC “AgroGuard-Finance” redeemed its shares held by the Group
for RUB 1,778 million. During the year ended 31 December 2022, the Group recognised a gain of RUB 1 million on disposal
of investment in JSC “AgroGuard-Finance” as part of other expenses, net.
The following information shows the movements of the Group’s receivables recognised as a result of Phosint Group
disposal during the reporting period:
RUB million
Balance at 1 January
Receivable accrued (note 29)
Discount on extension of payment terms (note 29, 11)
Unwinding of discount (note 11)
Foreign currency translation difference
Balance at 31 December
2022
-
12,189
(2,777)
519
(1,477)
8,454
2021
-
-
-
-
-
RUB million
31 December 2022
31 December 2021
During the reporting period the Group recognised deferred tax liabilities of RUB 1,647 million on receivables
Receivable accrued as a result of Phosint Group disposal
Provision for receivable accrued as a result of Phosint Group disposal
Receivable accrued as a result of Phosint Group disposal, net
Long-term accounts receivable
Provision for long-term accounts receivable
Long-term accounts receivable, net
Loans issued to third parties, at amortised cost
Provision for loans issued to third parties
Loans issued to third parties, at amortised cost, net
Loans issued to employees, at amortised cost
Financial assets, at fair value through profit or loss
Total other non-current assets
8,454
(85)
8,369
58
-
58
38
-
38
69
12
8,546
The movements in provision for impairment of loans issued and long-term accounts receivable are as follows:
RUB million
PROVISION FOR LOANS ISSUED TO THIRD PARTIES
Balance at 1 January
Disposal of foreign subsidiaries (note 29)
Provision for loans issued to third parties accrued
Use of provision
Effect of foreign currency translation reserve
Balance at 31 December
PROVISION FOR LONG-TERM ACCOUNTS RECEIVABLE
Balance at 1 January
Disposal of foreign subsidiaries (note 29)
Provision for long-term accounts receivable accrued
Effect of foreign currency translation reserve
Balance at 31 December
2022
(561)
625
(1)
1
(64)
-
(589)
657
-
(68)
-
-
-
-
677
(589)
88
637
(561)
76
104
1,790
2,058
2021
(605)
-
(1)
-
45
(561)
(635)
-
(1)
47
(589)
accrued as a result of Phosint Group disposal. Tax effect on foreign exchange loss from receivables revaluation
was RUB 295 million.
18. Other financial assets
RUB million
31 December 2022
31 December 2021
Loans issued to employees, at amortised cost
Interest receivable
Loans issued to third parties, at amortised cost
Loans issued to related parties, at amortised cost
Provision for doubtful accounts
Total other financial assets
101
76
51
-
(18)
210
104
140
60
25
(113)
216
In February 2022, the Group provided cash of RUB 3,130 million (USD 40 million) to the investment broker at 0.25%
and received securities as a collateral for the funds deposited (reverse repo transaction). As a result of negative
economical situation, significant market disruptions to broker cross-border operations led to his liquidity problems
and inability to repurchase securities back from the Group. As a result, the Group loan issued under this transaction
was fully impaired and loss of RUB 4,124 million was recognised as a part of finance costs.
The movements in provision for doubtful accounts and expected credit losses allowance are as follows:
RUB million
Balance at 1 January
Increase in provision for doubtful accounts and expected credit losses allowance
Disposal of foreign subsidiaries
Effect of foreign currency translation reserve
Use of allowance
Balance at 31 December
2022
(113)
(4,135)
4,235
(11)
6
(18)
2021
(37)
(79)
-
3
-
(113)
358
359
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile 19. Inventories
RUB million
Raw materials and spare parts
FINISHED GOODS:
Chemical fertilisers
Apatite concentrate
Other products
WORK-IN-PROGRESS:
Chemical fertilisers and other products
Chemical fertilisers and other products for resale, purchased from third
parties
Other goods
Provision for obsolescence
Total inventories
20. Trade and other receivables
RUB million
FINANCIAL ASSETS
Trade accounts receivable
Other receivables
Provision for doubtful accounts and expected credit losses allowance
NON-FINANCIAL ASSETS
Advances issued
Advances issued on custom duties
Deferred expenses
Receivables from employees
Provision for doubtful accounts and expected credit losses allowance
Total trade and other receivables
31 December 2022
31 December 2021
15,109
10,388
801
1,379
5,685
5,941
148
(102)
39,349
11,652
22,110
607
291
5,258
1,662
197
(600)
41,177
21. Cash and cash equivalents
RUB million
Cash in bank
Call deposits
Petty cash
Total cash and cash equivalents
31 December 2022
31 December 2021
7,438
5,911
7
13,356
13,298
8,405
7
21,710
As at 31 December 2022 the most significant cash and cash equivalents balances were held in large Russian banks
with high credit ratings, according to independent Russian rating agencies.
22. Equity
(a) Share capital
As at 31 December 2022 and 31 December 2021, the Company’s share capital consists of 129,500,000 ordinary shares
with par value of RUB 2.5 per share. All issued ordinary shares are fully paid. Each ordinary share carries one vote.
31 December 2022
31 December 2021
is 994,977,080, with a par value of RUB 2.5 per share.
As at 31 December 2022 and 31 December 2021, the number of ordinary shares authorised for additional issue
61,997
1,479
(482)
8,634
3,901
202
20
(10)
75,741
33,013
822
(339)
14,621
198
199
28
(16)
48,526
(b) Dividend policy
The Group’s dividend policy is based on the following principles:
• striking an effective and reasonable balance between the payment of dividends and reinvestment of profit in further
development;
• ensuring transparency and predictability of dividend payments as a way to boost the Company’s investment case.
Amount of such payment is subject to approval of the General Shareholders’ Meeting, based on recommendations
provided by the PhosAgro Board of Directors. The Board of Directors’ recommendations depend on such factors
as the Company’s earnings for the reporting period and its financial position. To calculate the amount of dividend
payments, the Board of Directors considers the Company’s consolidated free cash flow for the reporting period (quarter,
six months, first nine months or year) under IFRS. Free cash flow is defined as cash flows from operating activities less
cash flows from investing activities based on the consolidated statement of cash flows. A decision on the payment
of an interim dividend is made at the General Shareholders’ Meeting within three months of the end of the relevant
As at 31 December 2022, the Group has no trade receivables measured at fair value through other comprehensive
reporting period. The payment period for dividends payable to a nominal holder or a trustee, which is a professional
income (31 December 2021: RUB 3,166 million). As at 31 December 2022, amount of trade accounts receivable measured
participant of the securities market, who are registered in the share register, shall be not more than 10 business days.
at fair value through profit or loss is RUB 542 million (31 December 2021: RUB 4,885 million). The fair values of these
The payment period for dividends payable to other parties registered in the shareholders register shall not exceed
receivables approximate their carrying amounts.
The movements in bad debt and expected credit losses allowance are as follows:
RUB million
Balance at 1 January
Use of allowance
Disposal of foreign subsidiaries
Reversal of allowance
Effect of foreign currency translation reserve
Increase in provision for doubtful accounts and expected credit losses allowance
Balance at 31 December
See note 28 (c) for the analysis of overdue trade and other accounts receivable.
2022
(355)
223
125
7
(20)
(472)
(492)
2021
(369)
140
-
10
(3)
(133)
(355)
25 business days after the date on which the parties entitled to receive dividends are determined. Holders of PhosAgro
GDRs are also entitled to receive dividends in respect of the underlying shares, subject to the terms of their Depositary
Agreements. In accordance with the dividend policy, the Board of Directors shall seek to make sure that the amount
of distributed dividends ranges from 50% to over 75% (subject to the Company’s leverage ratio) of the Company’s
consolidated free cash flow for the respective period under IFRS. At the same time, the amount of declared dividends
shall not be lower than 50% of net profit for the relevant period under IFRS adjusted by the amount of unrealised
exchange rate difference.
(c) Dividends
In accordance with Russian legislation the Company’s distributable reserves are limited to the balance of accumulated
retained earnings as recorded in the Company’s financial statements prepared in accordance with Russian
Accounting Standards. As at 31 December 2022, the Company had cumulative retained earnings of RUB 65,040 million
(31 December 2021: RUB 59,337 million).
360
361
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Proposed by the Board of Directors in
Approved
by shareholders in
Amount per share
RUB
Amount of dividends
RUB million
TOTAL DIVIDENDS APPROVED DURING THE REPORTING PERIOD
August 2022
November 2022
Total dividends
23. Earnings per share
September 2022
December 2022
780
318
101,010.0
41,181.0
142,191.0
Basic earnings per share are calculated based on the weighted average number of ordinary shares outstanding during
the year. Basic and diluted earnings per share are the same, as there is no effect of dilution.
Weighted average number of ordinary shares in issue
Profit for the year attributable to shareholders of the Company,
RUB million
2022
2021
129,500,000
129,500,000
184,662
129,697
Basic and diluted earnings per share, RUB
1,426
1,002
24. Loans and borrowings
This note provides information about the contractual terms of the Group’s loans and borrowings. For more information
about the leases, see note 25. For more information about the Group’s exposure to foreign currency risk, interest rate risk
and liquidity risk, see note 28.
RUB million
31 December 2022
31 December 2021
CURRENT LOANS AND BORROWINGS
Unsecured bank loans
Eurobonds
Interest payable
Bank commission (short-term)
Total current loans and borrowings
NON-CURRENT LOANS AND BORROWINGS
Eurobonds
Unsecured bank loans
Bank commission (long-term)
Total non-current loans and borrowings
Total loans and borrowings
44,648
35,169
1,157
-
80,974
70,337
39,667
(220)
109,784
190,758
11,492
-
1,220
(2)
12,710
111,439
45,957
(315)
157,081
169,791
In January 2018 the Company’s SPV issued a USD 500 million 5,25-year Eurobond with a coupon rate of 3.949%, which
is listed on the Irish Stock Exchange, with the fair value at the reporting date of RUB 27,256 million (31 December 2021:
RUB 37,940 million).
In January 2020 the Company’s SPV issued a USD 500 million 5-year Eurobond with a coupon rate of 3.05%, which
is listed on the Irish Stock Exchange, with the fair value at the reporting date of RUB 18,552 million (31 December 2021:
RUB 37,726 million).
In September 2021, the Company’s SPV issued a USD 500 million 7-year Eurobond with a coupon rate of 2.6%, which
is listed on the Irish Stock Exchange, with the fair value at the reporting date of RUB 24,407 million (31 December 2021:
RUB 36,140 million).
The breakdown of the loans and borrowings denominated in different currencies is as follows:
RUB million
USD-denominated
RUB-denominated
EUR-denominated
Total
The maturity of the loans and borrowings is as follows:
RUB million
Less than 1 year
1-2 years
2-3 years
3-4 years
4-5 years
More than 5 years
Bank commission
Total
Reconciliation of loans and borrowings balances:
RUB million
Balance as at 1 January
Cash inflows
Cash outflows
Foreign exchange
Interest accrued
Interest paid
Amortisation of bank commission
Other turnovers
Balance as at 31 December
25. Leases
RUB million
Balance as at 1 January 2021
New lease contracts and modification
of existing lease contracts
Interest expense on lease liabilities
Principal lease payments
Interest lease payments
Effect of foreign currency translation reserve
Balance as at 31 December 2021
New lease contracts and modification
of existing lease contracts
Disposal of foreign subsidiaries (note 29)
Interest expense on lease liabilities
Principal lease payments
Interest lease payments
Effect of foreign currency translation reserve
Balance as at 31 December 2022
31 December 2022
31 December 2021
135,825
42,805
12,128
190,758
154,288
3,096
12,407
169,791
31 December 2022
31 December 2021
80,974
23,218
38,824
10,688
2,105
35,169
(220)
190,758
2022
169,791
57,171
(23,926)
(11,950)
4,223
(4,628)
78
(1)
190,758
12,712
48,760
16,879
41,037
11,320
39,400
(317)
169,791
2021
159,140
61,622
(50,081)
(812)
3,910
(3,861)
83
(210)
169,791
Lease liability without
subsequent asset buyout
Lease liability with subsequent
asset buyout
Total
3,622
882
223
(1,345)
(223)
(11)
3,148
(1,431)
(290)
106
(730)
(106)
34
731
2,573
521
6,195
1,403
172
395
(604)
(1,949)
(172)
(1)
2,489
460
-
138
(395)
(12)
5,637
(971)
(290)
244
(699)
(1,429)
(138)
(45)
(244)
(11)
2,205
2,936
362
363
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile 26. Defined benefit obligations
RUB million
Pension obligations, long-term
Post-retirement obligations other than pensions
Total defined benefit obligations
31 December 2022
31 December 2021
442
608
1,050
307
645
952
28. Financial risk management
(a) Overview
In the normal course of its operations, the Group has exposure to market, credit and liquidity risks.
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies
and processes for measuring and managing risk, and the Group’s management of capital. Further quantitative
disclosures are included throughout these consolidated financial statements.
The Group has defined benefit plans at JSC “Apatit”, including all the branches, which stipulate payment of a lump sum
allowance to employees who have a specified period of service in this company upon their retirement. All the defined
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management
benefit plans are unfunded. The movement in the present value of the defined benefit obligations is as follows:
framework. The Group’s risk management policies are established to identify and analyse the risks faced by the Group,
RUB million
Defined benefit obligations at 1 January
Disposal of foreign subsidiaries
Benefits paid
Current service costs and interest
Past service costs
Actuarial loss in other comprehensive income
Effect of foreign currency translation reserve and foreign exchange differences
Defined benefit obligations at 31 December
2022
952
(194)
(101)
103
(1)
276
15
1,050
2021
945
-
(132)
123
(15)
36
(5)
952
to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.
(b) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices
will affect the Group’s income or the value of its financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Foreign currency risk
The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency
other than the respective functional currencies of Group entities. The currencies giving rise to this risk are primarily
USD and EUR.
The key actuarial assumptions used in measurement of the defined benefit obligations are as follows:
In respect of monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure
31 December 2022
31 December 2021
imbalances.
is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term
10.1%
6.0%
7.5%
4.1%
The Group implemented a natural hedge approach (policy) aiming at reducing its exposure to foreign currency risk
by means of borrowing in the same currencies in which sales agreements are denominated.
The Group has the following net monetary position on financial assets and liabilities denominated in foreign currencies:
31 December 2022
31 December 2021
RUB million
31 December 2022
31 December 2021
Discount rate
Future pension increases
27. Trade and other payables
RUB million
Trade accounts payable
including accounts payable for property, plant and equipment
and intangible assets
Advances received (contract liabilities)
Payables to employees
Accruals and provisions
Other payables
Total trade and other payables
15,700
4,294
17,258
4,620
241
1,593
39,412
16,643
5,676
16,379
5,094
209
3,429
41,754
Contract liabilities balance at the beginning of the year was fully recognised in revenue during the reporting period.
GROUP COMPANIES IN RUSSIA:
Current assets
Non-current liabilities
Сurrent liabilities
Net position of the Group companies
in Russia
FOREIGN GROUP COMPANIES:
Current assets
Non-current liabilities
Сurrent liabilities
Net position of foreign Group companies
TOTAL:
Current assets
Non-current liabilities
Сurrent liabilities
Total net position
USD
denominated
EUR
denominated
USD
denominated
EUR
denominated
72,727
(92,131)
(46,001)
(65,405)
-
-
-
-
72,727
(92,131)
(46,001)
(65,405)
1,242
(9,293)
(3,333)
(11,384)
-
-
-
-
1,242
(9,293)
(3,333)
(11,384)
1,643
(143,073)
(13,563)
(154,993)
2,831
-
(137)
2,694
4,474
(143,073)
(13,700)
(152,299)
70
(11,786)
(1,712)
(13,428)
2,977
(2)
(199)
2,776
3,047
(11,788)
(1,911)
(10,652)
364
365
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Management estimates that a 10% strengthening/(weakening) of RUB against USD and EUR, based on the Group’s total
As at 31 December 2022, the Group has no financial assets measured at fair value through other comprehensive income
net position in USD and EUR as at the reporting date would have increased/(decreased) the Group’s profit for the year
(31 December 2021: RUB 3,166 million).
by RUB 7,679 million, before any tax effect (2021: would have increased/(decreased) the Group’s profit for the year
by RUB 16,295 million). This analysis assumes that all other variables, in particular interest rates, remain constant.
Trade and other receivables
The analysis is performed on the same basis for 2021.
The Group’s exposure to credit risk is influenced mainly by the individual specific characteristics of each customer.
The general characteristics of the Group’s customer base, including the default risk of the industry and country, in which
The foreign exchange gain recognised in profit or loss of RUB 2,417 million (foreign exchange loss of RUB 838 million
customers operate, has less of an influence on credit risk.
for the comparative period) resulted from Russian rouble appreciation against major currencies during the reporting
period (Russian rouble depreciation against major currencies during the comparative period).
Management has established a credit policy under which each new customer is analysed individually
Interest rate risk
for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. The Group’s
review includes external ratings, when available, and in some cases bank references. Purchase limits are established
Interest rate risk is the risk that changes in interest rates will adversely impact the financial results of the Group.
for each customer, which represent the maximum amount of outstanding receivables; these limits are reviewed
Management does not have a formal policy of determining how much of the Group’s exposure should be to fixed
quarterly. Customers that fail to meet the Group’s benchmark creditworthiness may transact with the Group only
or variable rates. However, at the time of raising new loans or borrowings management uses its judgment to decide
on a prepayment basis.
whether it believes that a fixed or variable rate would be more favourable to the Group over the expected period until
maturity.
The majority of the Group’s customers have been transacting with the Group for several years, and losses have occurred
infrequently. In monitoring customer credit risk, customers are grouped according to their credit characteristics. Trade
The interest rate profile of the Group’s interest-bearing financial instruments at their carrying values is as follows:
and other receivables relate mainly to the Group’s wholesale customers.
RUB million
FIXED RATE INSTRUMENTS
Call deposits and other financial assets
Other non-current assets
Long-term borrowings
Short-term borrowings
Lease liabilities
Total fixed rate instruments
VARIABLE RATE INSTRUMENTS
Long-term borrowings
Short-term borrowings
Total variable rate instruments
31 December 2022
31 December 2021
6,063
107
(107,781)
(74,749)
(2,936)
(179,296)
(2,223)
(6,225)
(8,448)
8,594
181
(154,309)
(6,523)
(5,637)
(157,694)
(3,087)
(6,189)
(9,276)
Sensitivity analysis for financial instruments with variable interest rates
At 31 December 2022, a 1 percentage point increase/(decrease) in interest rate, with all other variables held constant,
would have decreased/(increased) the Group’s profit for the year and equity by RUB 85 million (31 December 2021:
RUB 93 million).
(с) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises from the Group’s receivables from customers, loans issued to related parties,
current and non-current financial assets and cash and cash equivalents.
As at 31 December 2022, the Group’s maximum exposure to credit risk is represented by the carrying
amount of its financial assets and amounted to RUB 85,116 million (31 December 2021: RUB 57,489 million).
As at 31 December 2022, 98 % of the Group’s trade receivables balance are represented by one counterparty.
As at 31 December 2021, there are no counterparties with a significant share of trade receivables in the Group’s trade
receivables structure.
As at 31 December 2022, the Group’s financial assets measured at amortised cost amounted to RUB 84,563 million
(31 December 2021: RUB 47,648 million).
As at 31 December 2022, the Group’s financial assets measured at fair value through profit or loss amounted
to RUB 553 million (31 December 2021: RUB 6,675 million).
The Group does not require collateral in respect of trade and other receivables, except for new customers who
are required to work on a prepayment basis or present an acceptable bank guarantee or set up letter of credit
with an acceptable bank.
The Group establishes an allowance for impairment that represents its estimate of the expected credit losses
in respect of trade and other receivables and other financial assets. The Group estimated the expected credit losses,
applying a simplified approach to measuring expected credit losses, which uses lifetime expected loss allowance.
In the terms of calculating the expected credit loss, the Group considers the credit rating of counterparties, adjusted
with forward-looking factors specific to the debtors and economic environment in which they operate, and historical
credit loss experience.
Exposures within each credit risk grade are segmented by geographic region classification and an ECL rate is calculated
for each segment based on delinquency status and actual credit loss experience over the past years.
The credit loss allowance for trade receivables is determined according to provision matrix presented in the table below:
RUB Million
Loss Rate
0.1-0.5%
1.3%
2.0%
3.0%
5.0%
10.0%
13.8%
18.0%
21.3%
30.0%
60.0%
100.0%
Total
31 December 2022
31 December 2021
Gross carrying
amount
Lifetime ECL
Net carrying
value
Gross carrying
amount
Lifetime ECL
46,487
844
15,650
-
383
-
29
-
34
-
-
49
63,476
(81)
(11)
(312)
-
(19)
-
(4)
-
(6)
-
-
(49)
(482)
46,406
833
15,338
-
364
-
25
-
28
-
-
-
31,979
-
-
460
-
67
-
746
-
21
268
294
62,994
33,835
-
-
-
(14)
-
(7)
-
(135)
-
(6)
(162)
(15)
(339)
Net carrying
value
31,979
-
-
446
-
60
-
611
-
15
106
279
33,496
366
367
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Trade and other receivables include accounts receivable with the following past due periods at the reporing date:
The table below illustrates the contractual maturities of financial liabilities, including interest payments, which
are converted at the closing exchange rates, where applicable. The amounts disclosed in the maturity table
RUB Million
31 December 2022
31 December 2021
are the contractual undiscounted cash flows:
Gross carrying
amount
Lifetime ECL Net carrying
value
Gross carrying
amount
Lifetime ECL Net carrying
value
Not past due
Past due 0-90 days
Past due 91-180 days
Past due 181-365 days
More than one year
61,684
1,681
29
34
48
63,476
(406)
(18)
(4)
(6)
(48)
(482)
61,278
1,663
25
28
–
30,652
2,265
32
68
818
62,994
33,835
(3)
(46)
(6)
(51)
(233)
(339)
The following information shows the movements in the Group’s assets and liabilities under the securitisation
arrangement for the reporting period:
RUB million
Trade receivables transferred to the bank
Net-off with other payables
Associated cash inflow
Associated cash outflow
Other non-cash operations
2022
9,717
9,471
246
(3,180)
(137)
30,649
2,219
26
17
585
33,496
2021
23,992
15,308
8,684
(3,566)
253
RUB Million
31 December 2022
Carrying
value
Contractual
cash flows
0-1 year
1-2 yrs
2-3 yrs
3-4 yrs 4-5 yrs Over 5 yrs
Loans and borrowings
190,978
202,313
84,567
26,025
40,747
11,829
3,060
36,085
Lease liabilities
Trade and other payables
2,936
17,616
3,487
17,616
1,488
17,616
1,026
-
515
-
312
-
113
-
33
-
Total
211,530
223,416
103,671
27,051
41,262
12,141
3,173
36,118
RUB Million
Carrying
value
Contractual
cash flows
0-1 year
1-2 yrs
2-3 yrs
3-4 yrs 4-5 yrs Over 5 yrs
31 December 2021
Loans and borrowings
Lease liabilities
Trade and other payables
Financial guarantees issued
for associates and related
parties
170,108
5,637
20,283
75
185,811
16,492
52,628
19,720
43,070
12,526
6,246
2,487
1,856
1,261
318
202
20,283
20,283
75
75
-
-
-
-
-
-
-
-
41,375
122
-
-
Total
196,103
212,415
39,337
54,484
20,981
43,388
12,728
41,497
Payables to the bank as at 31 December 2021 amounted to RUB 3,229 million are presented within other payables.
Receivables from the bank as at 31 December 2021 amounted to RUB 854 million are presented within trade receivables.
(e) Capital management
The Group’s policy is to safeguard the Group’s ability to continue as a going concern, to maintain a strong capital
As a result of loss of control over its foreign subsidaries (note 29) previously controlled by the Group, the Group has no
base in order to provide investor, creditor and market confidence and to sustain future development of the business.
securitization agreements and related payables and receivables balances as at 31 December 2022.
The Board of Directors monitors the return on capital invested and the level of dividends paid to shareholders.
Current and non-current financial assets
There were no changes in the Board’s approach to capital management during the year.
The Group lends money to related parties and to third parties, who have good credit standing. Based on the prior
experience, management believes that there is no significant credit risk in respect of related party and third party loans.
The Company and its subsidiaries are subject to externally imposed capital requirements including the statutory
Cash and cash equivalents are primarily held with large banks with high credit rating, which provides high-level credit
risk limits. All bank account balances and term deposits are not overdue or impaired.
Guarantees
requirements of the country of their domicile and the bank covenants.
29. Loss of control over foreign subsidiaries
For financial guarantees issued the maximum exposure to credit risk is the amount of the commitment (note 32).
In March 2022, the Group’s wholly owned foreign subsidiary Phosint Limited owning all the foreign companies
The Group’s policy is to provide financial guarantees only to the subsidiaries or related parties.
of the Group, increased its share capital which was subscribed by a third party company Negrinio Limited, resulting
in dilution of the Group’s stake in Phosint Limited to 5%.
(d) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
The Group performed the analysis of the key attributes and documents of the transaction, and made a conclusion that
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet
it lost a control over Phosint Limited as described in IFRS 10, Consolidated Financial Statements.
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
Upon the loss of control, the Group recognised a receivable of RUB 12,189 million with a payment period of three years,
derecognised the assets and liabilities of the foreign subsidiaries and reclassified to profit or loss the cumulative amount
Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period
of the exchange differences relating to the foreign subsidiaries of RUB 6,302 million, previously recognised in other
of 30 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances
comprehensive income and accumulated in the separate component of equity. The Group recognised the receivable
that cannot reasonably be predicted, such as natural disasters. In addition, the Group maintains several lines of credit
at present value using a discount rate of 9% per annum and accrued finance costs of RUB 2,777 million.
in various Russian and international banks.
368
369
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Summarised amounts of the assets and liabilities in the foreign subsidiaries over which control is lost are presented
31. Contingencies
below:
RUB million
ASSETS
Property, plant and equipment
Right-of-use assets
Other non-current assets
Trade and other receivables
Cash and cash equivalents
Inventories
Income tax receivable
LIABILITIES
Other non-current liabilities
Lease liabilities
Trade and other payables
Income tax payable
Other current liabilities
Total net assets
As at the date of loss of control
2,438
264
722
42,238
36,729
17,147
10
(1,043)
(290)
(77,938)
(1,749)
(37)
18,491
(a) Litigation
The Group has a number of small claims and litigations relating to regular business activities and small fiscal claims.
Management believes that none of these claims, individually or in aggregate, will have a material adverse impact
on the Group.
(b) Taxation contingencies
Russian tax legislation which was enacted or substantively enacted at the end of the reporting period, is subject
to varying interpretations when being applied to the transactions and activities of the Group. Consequently, tax
positions taken by management and the formal documentation supporting the tax positions may be challenged tax
authorities. Russian tax administration is gradually strengthening, including the fact that there is a higher risk of review
of tax transactions without a clear business purpose or with tax incompliant counterparties. Fiscal periods remain
open to review by the authorities in respect of taxes for three calendar years preceding the year when decisions about
the review was made. Under certain circumstances reviews may cover longer periods.
Russian transfer pricing (TP) legislation is generally aligned with the international TP principles developed
by the Organisation for Economic Cooperation and Development (OECD), although it has specific features. The TP
legislation provides for the possibility of additional tax assessment for controlled transactions (transactions between
related parties and certain transactions between unrelated parties) if such transactions are not on an arm’s-length basis.
The management has implemented internal controls to comply with current TP legislation.
As the Group retained no significant influence over Phosint Limited upon loss of control, it classified the remaining
Tax liabilities arising from controlled transactions are determined based on their actual transaction prices. It is possible,
5% share in the company as a financial asset measured at fair value through other comprehensive income with a non-
with the evolution of the interpretation of TP rules, that such prices could be challenged. The impact of any such
significant fair value at the date of initial recognition and at the reporting date.
challenge cannot be reliably estimated; however, it may be significant to the financial position and/or the Group’s
operations.
The Group didn’t recognize any gain or loss as a result of Phosint Group disposal:
RUB million
Carrying amount of net assets disposed
Foreign currency translation difference reclassified to profit or loss upon loss of control
over foreign subsidiaries
Receivable accrued as a result of disposal of foreign subsidiaries
Result from loss of control over foreign subsidiaries
30. Commitments
As at the date of loss of control
interpretations of such uncertain areas that reduce the overall tax rate of the Group. While management currently
As Russian tax legislation does not provide definitive guidance in certain areas, the Group adopts, from time to time,
18,491
(6,302)
12,189
-
estimates that the tax positions and interpretations that it has taken can probably be sustained, there is a possible
risk that an outflow of resources will be required should such tax positions and interpretations be challenged
by the tax authorities. The impact of any such challenge cannot be reliably estimated; however, it may be significant
to the financial position and/or the overall operations of the Group.
(c) Environmental contingencies
The enforcement of environmental regulation in the Russian Federation is evolving and the enforcement posture
of government authorities is continually being reconsidered.
As at 31 December 2022, the Group had contractual commitments for the purchase of property, plant and equipment
The Group is involved in chemical production, which is inherently exposed to significant environmental risks. The Group
for RUB 35,181 million (31 December 2021: RUB 29,458 million), including VAT where applicable.
companies record environmental obligations as they become probable and reliably measurable. The Group companies
are parties to different litigations with the Russian environmental authorities. The management believes that based
on its interpretations of applicable Russian legislation, official pronouncements and court decisions no provision
is required for environmental obligations. However, the interpretations of the relevant authorities could differ from
management’s position and the effect on these consolidated financial statements, if the authorities were successful
in enforcing their interpretations, could be significant.
(d) Compliance with covenants
The Group is subject to certain covenants related primarily to its loans and borrowings. Non-compliance with such
covenants may result in negative consequences for the Group including growth in the cost of borrowings
and declaration of default.
The Group was in compliance with covenants during the years ended 31 December 2022 and 31 December 2021.
The payment obligations of the Group in respect of coupon payments for Eurobonds are fulfilled when the funds
are transferred to the account of the paying agent.
370
371
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile 32. Related party transactions
33. Significant subsidiaries
Parties are generally considered to be related if the parties are under common control or if one party has the ability
Subsidiary
to control the other party or can exercise significant influence or joint control over the other party in making financial
and operational decisions. In considering each possible related party relationship, attention is directed to the substance
of the relationship, not merely the legal form. Other related parties include entities controlled by the Company’s key
shareholders.
The balances and transactions with related parties are usually unsecured and denominated in RUB.
(a) Transactions with related parties
RUB million
Nature of relationship
Sales of goods and services
Purchases of goods and services
Sales of goods and services
Other expenses, net
Purchases of goods and services
Associates
Associates
Other related parties
Other related parties
Other related parties
2022
30
(734)
1,089
(85)
(246)
2021
26
(585)
968
(60)
(224)
In 2022, the Company declared dividends in total amount of RUB 91,366 million (2021: RUB 46,824 million)
to its shareholders which have significant influence over the Group.
(b) Balances with related parties
RUB million
Trade and other receivables
Trade and other payables
Trade and other receivables
Trade and other payables
Short-term loans issued, at amortised cost
Nature of relationship
31 December 2022
31 December 2021
Associates
Associates
Other related parties
Other related parties
Other related parties
42
(39)
8
(451)
-
20
(17)
8
(349)
25
(c) Financial guarantees
As at 31 December 2022 the Group does not have any financial guarantees issued to the bank to secure associates’ bank
loans (31 December 2021: RUB 75 million).
(d) Remuneration of key management personnel and Board of Directors members
Remuneration of key management personnel consists of monthly compensation, annual performance bonus
contingent on operating results, termination benefits and contributions to the Russian state pension and social funds.
The remuneration of the Board of Directors and key management personnel recognised as part of administrative
and selling overhead expenses amounted to RUB 16,897 million (2021: RUB 4,147 million).
Country
of incorporation
Effective ownership (rounded)
31 December 2022
31 December 2021
Apatit, JSC (including Balakovo, Volkhov
and Kirovsk branches)
Mekhanik, LLC
NIUIF, JSC
PhosAgro-Region, LLC
PhosAgro-Belgorod, LLC
PhosAgro-Don, LLC
PhosAgro-Kuban, LLC
PhosAgro-Kursk, LLC
PhosAgro-Lipetsk, LLC
PhosAgro-Oryol, LLC
PhosAgro-Stavropol, LLC
PhosAgro-Volga, LLC
PhosAgro-SeveroZapad, LLC
PhosAgro-Tambov, LLC
PhosAgro-Sibir, LLC
PureFert Trading AG (PhosAgro Trading SA
till 05.09.2022)1
PUREFERT LIMITED (Phosint Limited till 30.08.2022)1
PureFert Logistics AG (PhosAgro Logistics SA
till 05.09.2022)1
PhosAgro Polska Sp.z o.o.1
PureFert Deutschland GmbH (PhosAgro
Deutschland GmbH till 21.11.2022)1
PUREFERT FRANCE SAS (PhosAgro France SAS
till 10.11.2022)1
PUREFERT Balkans d.o.o. (PhosAgro Balkans DOO
till 07.09.2022)1
UAB PhosAgro Baltic1
Purefert Balkans S.R.L. (PhosAgro Balkans SRL
till 06.10.2022)1
Purefert South Africa Proprietary Limited (PhosAgro
South Africa Proprietary Limited till 07.10.2022)1
Logifert Oy1
Bulk Terminal Kotka Oy1
34. Subsequent events
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Switzerland
Cyprus
Switzerland
Poland
Germany
France
Serbia
Lithuania
Romania
South Africa
Finland
Finland
100%
100%
94%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
100%
100%
94%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
On 1 January 2023 Russian government decree entered into force, introducing the customs duties on export volumes
of mineral fertilizers during the period from 1 January to 31 December 2023.
In March 2023, the Board of Directors proposed paying a dividend of RUB 465 per ordinary share.
1
In March 2022, the Group lost control over its wholly owned foreign subsidiary Phosint Limited owning all the foreign companies
of the Group, see note 29
372
373
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Management responsibility
statement
The PhosAgro management
The management report includes
The consolidated financial
hereby confirms that, to the best
a fair review of the development
statements for the year ended
of its knowledge, the financial
and performance of the business
31 December 2022 were approved
statements prepared in accordance
and the position of the PhosAgro
by the Board of Directors
with the International Financial
and the undertakings included
on 03 March 2023.
Reporting Standards as issued
in the consolidation taken as a whole,
by the International Accounting
together with a description
Standards Board give a true
of the principal risks
and fair view of the assets,
and uncertainties that they face.
liabilities, financial position
and profit or loss of the Company
This Integrated Annual Report
and the undertakings included
was reviewed and approved
in the consolidation taken
at PhosAgro’s
as a whole.
Board of Directors meeting
on 20 April 2023.
Mikhail Rybnikov
Chief Executive Officer
and Chairman of the Management
Board of PhosAgro
Independent limited
assurance report
GRI 2-5
Joint-Stock Company
“Technologies of Trust – Audit”
(“Technologies of Trust – Audit” JSC)
Joint-Stock Company
“Technologies of Trust – Audit”
www.tedo.ru
(“Technologies of Trust – Audit” JSC)
www.tedo.ru
White Square Office Center,
10 Butyrsky Val, Moscow,
Russian Federation, 125047
White Square Office Center,
T: +7 (495) 967 6000,
10 Butyrsky Val, Moscow,
F: +7 (495) 967 6001
Russian Federation, 125047
T: +7 (495) 967 6000,
F: +7 (495) 967 6001
Independent Auditor’s Limited Assurance Report
Independent Auditor’s Limited Assurance Report
To the Management of Public Joint Stock Company “PhosAgro”:
Introduction
To the Management of Public Joint Stock Company “PhosAgro”:
We have been engaged by the Management of Public Joint Stock Company “PhosAgro” (hereinafter – the
Introduction
“Company”) to provide limited assurance on the selected information described below and included in the
Integrated Annual Report of the Company for the year ended 31 December 2022 (hereinafter – the “Integrated
We have been engaged by the Management of Public Joint Stock Company “PhosAgro” (hereinafter – the
Annual Report”). The Integrated Annual Report represents information related to the Company and its subsidiaries
“Company”) to provide limited assurance on the selected information described below and included in the
(hereinafter together – the “Group”), unless otherwise stated in the Integrated Annual Report.
Integrated Annual Report of the Company for the year ended 31 December 2022 (hereinafter – the “Integrated
Annual Report”). The Integrated Annual Report represents information related to the Company and its subsidiaries
Selected information
(hereinafter together – the “Group”), unless otherwise stated in the Integrated Annual Report.
We assessed the quantitative and qualitative information specified in Appendix 1 that is disclosed in the Integrated
Selected information
Annual Report and referred to or included in the GRI Content Index of the Integrated Annual Report (hereinafter –
the “Selected Information”).
We assessed the quantitative and qualitative information specified in Appendix 1 that is disclosed in the Integrated
Annual Report and referred to or included in the GRI Content Index of the Integrated Annual Report (hereinafter –
The scope of our limited assurance procedures was limited to the Selected Information for the year ended
the “Selected Information”).
31 December 2022 only. We have not performed any procedures with respect to earlier periods or any other items
included in the Integrated Annual Report and, therefore, do not express any conclusion thereon.
The scope of our limited assurance procedures was limited to the Selected Information for the year ended
31 December 2022 only. We have not performed any procedures with respect to earlier periods or any other items
Reporting criteria
included in the Integrated Annual Report and, therefore, do not express any conclusion thereon.
We assessed the Selected Information using relevant criteria, including reporting requirements in the GRI
Reporting criteria
Sustainability Reporting Standards 2, 3, 202, 203, 205, 207, 302, 303, 304, 305, 306, 401, 403, 404 and 413
(hereinafter – the “GRI Standards”) published by Stichting Global Reporting Initiative and in the Group’s
We assessed the Selected Information using relevant criteria, including reporting requirements in the GRI
management methodology as set forth in the criteria defined in the notes to the Group’s specific disclosures in the
Sustainability Reporting Standards 2, 3, 202, 203, 205, 207, 302, 303, 304, 305, 306, 401, 403, 404 and 413
Environmental review section of the Integrated annual report (hereinafter – the “PhosAgro Methodology”, and
(hereinafter – the “GRI Standards”) published by Stichting Global Reporting Initiative and in the Group’s
together with the GRI Standards – the “Reporting Criteria”). We believe that the Reporting Criteria are appropriate
management methodology as set forth in the criteria defined in the notes to the Group’s specific disclosures in the
given the purpose of our limited assurance engagement.
Environmental review section of the Integrated annual report (hereinafter – the “PhosAgro Methodology”, and
together with the GRI Standards – the “Reporting Criteria”). We believe that the Reporting Criteria are appropriate
Responsibilities of the Group’s management
given the purpose of our limited assurance engagement.
Management of the Group is responsible for:
Responsibilities of the Group’s management
• designing, implementing and maintaining internal control relevant to the preparation of the Selected Information
Management of the Group is responsible for:
that is free from material misstatement, whether due to fraud or error;
• designing, implementing and maintaining internal control relevant to the preparation of the Selected Information
• establishing internal methodology and guidelines (including the PhosAgro Methodology) for preparing and
that is free from material misstatement, whether due to fraud or error;
reporting the Selected Information in accordance with the Reporting Criteria;
• establishing internal methodology and guidelines (including the PhosAgro Methodology) for preparing and
• preparing, measuring and reporting of the Selected Information in accordance with the Reporting Criteria; and
reporting the Selected Information in accordance with the Reporting Criteria;
the accuracy, completeness and presentation of the Selected Information.
•
• preparing, measuring and reporting of the Selected Information in accordance with the Reporting Criteria; and
Our responsibilities
•
the accuracy, completeness and presentation of the Selected Information.
We are responsible for:
Our responsibilities
• planning and performing the engagement to obtain limited assurance about whether the Selected Information
We are responsible for:
is free from material misstatement, whether due to fraud or error;
• planning and performing the engagement to obtain limited assurance about whether the Selected Information
•
forming an independent conclusion, based on the procedures we have performed and the evidence we have
is free from material misstatement, whether due to fraud or error;
obtained; and
forming an independent conclusion, based on the procedures we have performed and the evidence we have
reporting our conclusion to the Management of the Group.
obtained; and
•
•
•
reporting our conclusion to the Management of the Group.
374
375
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile
www.tedo.ru
www.tedo.ru
This report, including our conclusion, has been prepared solely for the management of the Group in accordance
with the agreement between us, to assist management in reporting on the Group’s sustainability performance and
activities. We permit this report to be disclosed in the Integrated Annual Report, which will be published on the
Company’s website1, to assist management in responding to its governance responsibilities by obtaining an
independent auditor’s limited assurance report in connection with the Selected Information. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the management of the Group for
our work or this report except where the respective terms are expressly agreed between us in writing and our prior
consent in writing is obtained.
Professional standards applied and level of assurance
We performed our limited assurance engagement in accordance with International Standard on Assurance
Engagements 3000 (Revised) “Assurance Engagements other than Audits or Reviews of Historical Financial
Information”, issued by the International Auditing and Assurance Standards Board.
A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in
relation to both the risk assessment procedures, including an understanding of internal control, and the procedures
performed in response to the assessed risks.
Our independence and quality management
We have complied with the independence and other ethical requirements of the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and professional behaviour, and the ethical
requirements of the Auditor’s Professional Ethics Code and Auditor’s Independence Rules that are relevant to our
limited assurance engagement in respect of the Selected Information in the Russian Federation.
Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and
operate a system of quality management including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Work done
We are required to plan and perform our work in order to consider the risk of material misstatement of the Selected
Information. In doing so, we:
• made enquiries of the Group’s management, including the Group Sustainability Reporting (SR) team and those
with responsibility for SR management and Group SR reporting;
•
•
•
•
conducted interviews of Group’s personnel responsible for the preparation of the Integrated Annual Report and
collection and analysis of underlying data;
performed analysis of the relevant internal methodology and guidelines (including the PhosAgro Methodology),
gaining an understanding of the design of the key structures, systems, processes and controls for managing,
recording, preparing and reporting the Selected Information;
performed limited substantive testing on a selective basis of the Selected Information to check that data had
been appropriately measured, recorded, collated and reported; and
reviewed the Selected Information for compliance of the disclosures with the relevant requirements of the
Reporting Criteria.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable
assurance engagement been performed.
1 The maintenance and integrity of the Company’s website is the responsibility of management; the work carried out by us does not involve
consideration of these matters and, accordingly, we accept no responsibility for any changes that may have occurred to the reported Selected
Information or Reporting Criteria when presented on the Company’s website.
2
Reporting and measurement techniques
Under the GRI Standards there is a range of different, but acceptable, reporting and measurement techniques. The
techniques, together with the PhosAgro Methodology, can result in materially different reporting outcomes that may
affect comparability with other organisations. The Selected Information should therefore be read in conjunction with
the methodology used by management in preparing the Integrated Annual Report, described therein, and for which
the Group is solely responsible.
Limited assurance conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Selected Information for the year ended 31 December 2022 has not
been prepared, in all material respects, in accordance with the Reporting Criteria.
28 April 2023
Moscow, Russian Federation
A. Y. Fegetsyn is authorised to sign on behalf of the general director of Joint-Stock Company “Technologies of
Trust – Audit” (Principal Registration Number of the Record in the Register of Auditors and Audit Organizations
(PRNR) – 12006020338), certified auditor (PRNR – 21906101957)
376
377
3
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile
www.tedo.ru
www.tedo.ru
Appendix 1 to the Independent Auditor’s Limited Assurance
Report dated 28 April 2023
The Selected Information subject to limited assurance procedures and prepared in accordance with the GRI
Disclosures and the PhosAgro Methodology, as applicable, is set out below:
GRI Disclosure
2-7
2-27
3-1
3-2
3-3
202-1
202-2
203-1
205-3
207-1
207-2
207-3
207-4
302-1
302-3
303-3
303-4
303-5
304-3
305-1
305-2
305-3
305-4
305-5
305-7
306-3
306-4
306-5
401-1
401-2
403-1
403-2
403-3
403-4
403-5
403-6
403-7
Narrative
Employees
Compliance with laws and regulations
Process to determine material topics
List of material topics
Management of material topics
Ratios of standard entry level wage by gender compared to local minimum wage
Proportion of senior management hired from the local community
Infrastructure investments and services supported
Confirmed incidents of corruption and actions taken
Approach to tax
Tax governance, control, and risk management
Stakeholder engagement and management of concerns related to tax
Country-by-country reporting
Energy consumption within the organization
Energy intensity
Water withdrawal
Water discharge
Water consumption
Habitats protected or restored
Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Reduction of GHG emissions
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
Waste generated
Waste diverted from disposal
Waste directed to disposal
New employee hires and employee turnover
Benefits provided to full-time employees that are not provided to temporary or part-time employees
Occupational health and safety management system
Hazard identification, risk assessment, and incident investigation
Occupational health services
Worker participation, consultation, and communication on occupational health and safety
Worker training on occupational health and safety
Promotion of worker health
Prevention and mitigation of occupational health and safety impacts directly linked by business
relationships
Workers covered by an occupational health and safety management system
Work-related injuries
Work-related ill health
Average hours of training per year per employee
Programs for upgrading employee skills and transition assistance programs
Percentage of employees receiving regular performance and career development reviews
Operations with local community engagement, impact assessments, and development programs
403-8
403-9
403-10
404-1
404-2
404-3
413-1
PhosAgro Methodology
(the Group’s specific
disclosure)
Pollutant emissions
Waste water discharge
Specific water withdrawal
Specific water withdrawal
Recycled and
decontaminated waste
Related description
Pollutant emissions, kg per tonne of finished and semi-finished products
Waste water discharge into surface waters, m3 per tonne of finished and semi-finished products
Specific water withdrawal, including mining and pit waters, m3 per tonne of finished and semi-
finished products
Specific water withdrawal from surface sources, excluding mining and pit waters, m3 per tonne
of finished and semi-finished products
Share of recycled and decontaminated hazard class 1–4 waste, %
4
378
379
5
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile
GRI content index
The data disclosed in this Report includes information on:
Boundary 1: PhosAgro and companies that are part of the group to which PhosAgro
belongs (corresponds to the scope of disclosure in IFRS consolidated financial
statements).
Boundary 2: Apatit, including its branches and standalone business units.
Code
GRI Indicator
Page number (or link)/Comments
Boundary
Code
GRI Indicator
Page number (or link)/Comments
Boundary
2
2–1
2–2
2–3
GENERAL DISCLOSURES (2021)
Organisational profile
Entities included in the organisation's
sustainability reporting
Reporting period, frequency, and point
of contact
4, 18-19
5
4, 400
2–4
Restatements of information
In the 2022 Report, the boundary and methodology were revised
• The following historical data were revised in the 2022 Report:
• calculation methodology for Scope 1 GHG emissions after the
inventory had identified new unaccounted sources of emissions (for
more information, see GRI 305-1 and GRI 305-4);
• the Company revised the methodology for calculating the GRI
203-1 indicator and excluded expenses incurred under sponsorship
agreements;
• calculation methodology for energy consumption (for more
information, see GRI 302-1 and GRI 302-3);
• due to the expansion of the disclosure boundary, the personnel data
disclosed in GRI 2-7 and GRI 401-1 indicators were recalculated;
• for the purposes of 2022 disclosures, the Company changed GRI
401-1 presentation by age group.
2–5
2–6
External assurance
5, 375
Activities, value chain and other business
relationships
In 2022, we set up new materials and equipment
supply chains from China, India and the CIS.
We started procuring electrical equipment
online from our partner and a large supplier
Elektrotekhmontazh, which significantly reduced
delivery time.
As regards procurement of key raw materials, such
as flotation reagents and conditioning mixtures,
we refocused from Europe to Asia and substituted
a number of imported items with domestic
alternatives. Prices for key feedstock are now less
dependent on foreign benchmarks and exchange
rates.
2–7
Employees
152-153
1
1
2–8
2–9
2–10
2–11
2–12
2–13
2–14
2–15
2–16
2–17
2–18
2–19
2–20
2–21
2–22
2–23
2–24
2–25
Workers who are not employees
Not disclosed owing to the confidential nature of this information
Governance structure and composition
260, 272-273
Appointment and selection of the supreme
governance body
Chair of the supreme governance body
276
Role of the supreme governance body
in overseeing the impacts
257, 296-297
Delegation of responsibility for impact
management
257
Role of the supreme governance body
in sustainability reporting
30-31, 258-259, 268
Conflicts of interest
Communication of critical concerns
Collective knowledge of the supreme
governance body
Supreme governance body performance
assessment
Remuneration policies
Process to determine remuneration
316
288-289
273
274-275
292-295
292-295
1
1
1
1
1
1
1
1
1
1
1
1
Annual total compensation ratio
Not disclosed owing to the confidential nature of this information
Statement on sustainable development
strategy
38-39
Policy commitments
303-305, 316-317
Embedding policy commitments
303-305
Processes to remediate negative impacts
148, 310-311
1
1
1
1
380
381
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Code
GRI Indicator
Page number (or link)/Comments
Boundary
Code
GRI Indicator
Page number (or link)/Comments
Boundary
2–26
Mechanisms for seeking advice and raising
concerns
148, 310-311
2–27
Compliance with laws and regulations
For the purposes of this disclosure, the Group uses
the following materiality criteria:
• with regard to fines, the Group determined
the amount exceeding RUB 1 mln as a materiality
criterion which it deems to be meaningful given
the scale of its operations;
• with regard to other penalties, the Group
assesses their influence on its reputation
and ability to continue as a going concern,
taking into account the amount of expenses
likely to be incurred as a result of such penalties.
2022 saw no violations by the Group of laws
and regulations resulting in material fines or
penalties.
The Group was taking steps to remedy the harm
caused by an emergency in 2019 by committing
RUB 2,274 thousand to the reproduction of aquatic
biological resources in 2022.
For information on cases of non-compliance
with environmental laws and regulations, see page
195
2–28
2–29
2–30
Membership associations
28-29
Approach to stakeholder engagement
Collective bargaining agreements
We negotiate collective bargaining agreements
with trade unions that address issues such
as working conditions and compensation
for employees at each of our production
sites (usually for a three-year period, covering
100% of the employees of Apatit, its branches
and standalone business units). For more
information, see page 146
3
3–1
3–2
3–3
MATERIAL TOPICS (2021)
Processes to determine material topics
List of material topics
Management of material topics
30-31
30-33
89, 103, 133,145,171,193,199,210,215,220,
224,230,237,301,312,317
1
1
1
1
2
1
1
1
ECONOMIC PERFORMANCE (2016)
Direct economic value generated
and distributed
Financial implications and other risks
and opportunities due to climate change
Defined benefit plan obligations and other
retirement plans
28
201
389
1
1
1
Not disclosed owing to the confidential nature of this information
201
201–1
201–2
201–3
201–4
202
202–1
202–2
203
203–1
Financial assistance received from
government
MARKET PRESENCE (2016)
Ratios of standard entry level wage
by gender compared to local minimum
wage
Proportion of senior management hired
from the local community
INDIRECT ECONOMIC IMPACTS (2016)
Infrastructure investments and services
supported
164
166
240
203–2
Significant indirect economic impacts
241-251
204
204–1
PROCUREMENT PRACTICES (2016)
Proportion of spending on local suppliers
at significant locations of operation
136
1
1
A special scope
is applied:
PhosAgro
and Apatit,
including
its branches
and standalone
business units
A special scope
is applied:
PhosAgro
and Apatit,
including
its branches
and standalone
business units.
2
382
383
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Code
GRI Indicator
Page number (or link)/Comments
Boundary
Code
GRI Indicator
Page number (or link)/Comments
Boundary
205
205–1
205–2
205–3
206
206–1
ANTI-CORRUPTION (2016)
Operations assessed for risks related
to corruption
Communication of and training in anti-
corruption policies and procedures
Confirmed incidents of corruption
and actions taken
314
307-309
314-315
ANTI-COMPETITIVE BEHAVIOR (2016)
Legal actions for anti-competitive behavior,
anti-trust, and monopoly practices
317
207
TAX (2019)
207–1
Approach to tax
207–2
207–3
Tax governance, control, and risk
management
Stakeholder engagement
and management of tax-related concerns
89
89
89
207–4
Country-by-country reporting
90-91, 390-391
302
302–1
302–2
ENERGY (2016)
Energy consumption within
the organisation
Energy consumption outside
of the organization
302–3
Energy intensity
302–4
Reduction in electricity consumption
302–5
Reductions in energy requirements
of products and services
303
WATER AND EFFLUENTS (2018)
212-213
not applicable
212-213
210-211
not applicable
303–1
Responsible water consumption
224-225
303–2 Management of water discharge
and related impacts on water resources
Effluents are treated until standard permissible
discharge and temporarily permitted discharge
rates are reached as required by permits
to discharge pollutants into the environment
(water bodies) issued by a relevant authority
for each discharge.
303–3 Water withdrawal
303–4 Water discharge
303–5 Water consumption
227
228-229
229
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
304
304–1
BIODIVERSITY (2016)
Operational sites owned, leased, managed
in, or adjacent to, protected areas and areas
of high biodiversity value outside protected
areas
304–2
Significant impacts of activities, products,
and services on biodiversity
304–3 Habitats protected or restored
304–4
IUCN Red List species and national
conservation list species with habitats
in areas affected by operations
305
EMISSIONS (2016)
305–1
Direct (Scope 1) GHG emissions
305–2
Energy indirect (Scope 2) GHG emissions
305–3
Other indirect (Scope 3) GHG emissions
305–4
GHG emissions intensity
305–5
Reduction of GHG emissions
305–6
Emissions of ozone-depleting substances
The Group’s operations are not located in protected areas or areas
of high biodiversity value outside protected areas.
231-232
231, 233
1
1
The Group’s operations are not located in protected areas or areas
of high biodiversity value. The Group’s operations do not pose a threat
to endangered animal and plant species listed in the International
Union for Conservation of Nature (IUCN) Red List and the Russian Red
Data Book
206
207
207
206
208
2
2
2
2
2
The Сompany does not use ozone-depleting substances
on an industrial scale
305–7
Nitrogen oxides (NOX), Sulphur oxides
(SOX), and other significant air emissions
223
306
WASTE (2020)
306–1 Waste generation and significant waste-
215
related impacts
306–2 Management of significant waste-related
216-217
impacts
306–3 Waste generated
306–4 Waste diverted from disposal
306–5 Waste directed to disposal
218
219
219
SUPPLIER ENVIRONMENTAL ASSESSMENT (2016)
New suppliers that were screened using
environmental criteria
308–2 Negative environmental impacts
in the supply chain and actions taken
139
139
308
308–1
2
2
2
2
2
2
2
2
384
385
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Code
GRI Indicator
Page number (or link)/Comments
Boundary
Code
GRI Indicator
Page number (or link)/Comments
Boundary
401
401–1
401–2
EMPLOYMENT (2016)
New employee hires and employee
turnover
Benefits provided to full-time employees
that are not provided to temporary or part-
time employees
153, 392-393
Benefits established by collective bargaining
agreements apply to all employees of Company,
its branches, standalone business units
and subsidiaries anddo not depend on conditions
of employment.
401–3
Parental leave
394
402
LABOR/MANAGEMENT RELATIONS (2016)
402–1 Minimum notice periods regarding
operational changes
In case of significant changes in labour conditions
of employees or their representatives the Company
is guided by the applicable Russian laws.
For example, organisational or technological
changes are communicated to employees no later
than two months before they take effect. In case
of staff optimisation, the employer shall also
send respective notice to employees at least two
months in advance or three months in advance
if optimisation measures may lead to large-
scale dismissals. In these cases and in other
circumstances related to material operational
changes, the Company shall act in compliance
with the Labour Code of the Russian Federation,
collective bargaining agreements and internal
regulations of PhosAgro Group companies.
Collective bargaining agreements negotiated
with trade unions also stipulate notification
timeframes for changes.
In addition to statutory requirements,
the Company has drafted and is ready
to implement anti-crisis measures, including
an employee communication plan (e.g. information
sessions for the staff and management),
professional and career guidance, psychological aid
and all kinds of other support to employees during
transition periods.
403
403–1
OCCUPATIONAL HEALTH AND SAFETY (2018)
Occupational health and safety
management system
403–2 Hazard identification, risk assessment,
and incident investigation
403–3 Occupational health services
183
175
172
1
1
1
1
2
2
2
2
2
2
2
2
2
2
403–4 Worker participation, consultation,
172
and communication on occupational
health and safety
403–5 Worker training on occupational health
181-183
and safety
403–6
Promotion of worker health
403–7
Prevention and mitigation of occupational
health and safety impacts directly linked
by business relationships
403–8 Workers covered by an occupational health
and safety management system
403–9 Work-related injuries
403–10 Occupational diseases
185-189
185-189
In 2022, our health and safety management
system covered 100% of the Company’s
employees. All our employees (executives
together with blue and white-collar staff) take
OHS training as required by the national laws,
as well as additional training (for more information,
see page 181). The minimum required training
is provided to each and everyone, including all
visitors and contractors as part of the introductory
briefing.
179-181
In 2020–2022, employees of Apatit, its branches
and standalone business units were diagnosed
with the following occupational diseases:
•
•
•
•
•
vibration syndrome, stages 1–2, due to lasting
workplace exposure to general vibration;
chronic bilateral hearing loss due to lasting
workplace exposure to noise;
cervical and lumbar radiculopathy due to lasting
hard workload;
muscular tonic syndrome in the lower back
due to lasting hard workload (awkward (fixed)
working postures);
acute irritant poisoning: one-off exposure
to ammonia in concentrations exceeding
the maximum permissible level as a result of its
leakage into the air of the industrial site's process
area. For more information, see page 185
386
387
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Code
GRI Indicator
Page number (or link)/Comments
Boundary
404
404–1
404–2
404–3
405
405–1
405–2
410
410–1
413
413–1
TRAINING AND EDUCATION (2016)
Average hours of training per year per
employee
156
Programmes for upgrading employee skills
and transition assistance programmes
157-159
Percentage of employees receiving regular
performance and career development
reviews
160
DIVERSITY AND EQUAL OPPORTUNITY (2016)
Diversity of governance bodies
and employees
Ratio of basic salary and remuneration
of women to men
SECURITY PRACTICES (2016)
154, 272
164
Security personnel trained in human rights
policies or procedures
302
LOCAL COMMUNITIES (2016)
Operations with local community
engagement, impact assessments,
and development programs
413–2
Operations with significant actual
and potential negative impacts on local
communities
414
414–1
414–2
417
417–1
417–2
SUPPLIER SOCIAL ASSESSMENT (2016)
New suppliers that were screened using
social criteria
Negative social impacts in the supply chain
and actions taken
MARKETING AND LABELLING (2016)
Requirements for product and service
information and labelling
Incidents of non-compliance concerning
product and service information
and labelling
Programmes for engagement with local
communities, assessment of our operations'
impact on local communities, and local community
development programmes were implemented
across all branches of Apatit, including its branches
and standalone business units.
The Apatit, including its branches and standalone
business units has no operations with significant
actual and potential negative impacts on local
communities. Significant impacts of the Apatit,
including its branches and standalone business
units on local communities has been assessed
as part of evaluation of UN Sustainable
Development Goals impacts.
141
141
108
No such cases registered, not applicable.
417–3
Incidents of non-compliance concerning
marketing communications
No such cases registered, not applicable.
2
2
2
1
1
1
2
2
2
2
1
GRI Content Index: additional information
GRI 201–3
Defined benefit plan obligations and other retirement plans, RUB mln
Region
Retirement-related obligations (other
than employee benefit obligations)
Saratov region
Payment of retirement benefits
Merit benefit plans
Financial aid to retired former employees
Total
Murmansk
region
Payment of retirement benefits
Merit benefit plans
Financial aid to retired former employees
Total
Leningrad
region
Payment of retirement benefits
Merit benefit plans
Financial aid to retired former employees
Total
Vologda region
Payment of retirement benefits
Merit benefit plans
Financial aid to retired former employees
Total
Total
Payment of retirement benefits
Merit benefit plans
Financial aid to retired former employees
Total
2020
1,552
0,000
2,387
3,939
32,704
0,000
18,575
51,279
1,475
0,000
5,164
6,640
17,758
17,982
16,769
52,509
53,489
17,982
42,895
114,366
Actual pension payments
2021
1,620
0,000
7,637
9,257
43,859
0,000
88,877
132,736
0,714
0,000
19,746
20,460
11,006
19,148
73,191
103,344
57,199
19,148
189,451
265,797
2022
2,771
0,000
16,719
19,490
39,206
0,000
148,831
188,038
2,676
0,000
31,647
34,323
13,052
21,383
119,930
154,365
57,705
21,383
317,128
396,215
For the benefit of its former
and sports competitions for veterans
Chemist's Day, Victory Day, 8th
employees, the Company has
of various age groups), celebrations
of March;
established and operates a voluntary
of professional and public holidays,
• a one-off payment in case
non-profit union of pensioners
jubilees and wedding anniversaries.
of a pensioner's decease;
(veterans). As at 1 October 2022,
• financial aid associated
the union had 10,953 members.
Support to union members includes:
with expensive treatment or
It operates in accordance
with collective bargaining
• one-off termination allowance;
decease of relatives (family
• annual financial aid linked
members);
agreements and an annual
to anniversaries (50th birthday
• annual paid tours to corporate
plan including leisure activities
and every five years afterwards),
health resorts, including
for unemployed pensioners (clubs
Day of the Older Persons,
for treatment purposes.
388
389
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile GRI 207–4
Tax payments, RUB mln
Group
Russia
Poland
Switzerland
France
Germany
Serbia
Lithuania
Romania
Africa
Brazil
Singapore
Cyprus
Finland
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
VAT
11,813
20,425
12,520
21,650
(524)
(108)
(178)
(707)
(197)
(447)
Personal income tax
(4,298)
(7,324)
(3,985)
(7,199)
Social contributions
(7,332)
(9,902)
(6,896)
(9,595)
MET
(3,391)
(8,028)
(3,391)
(8,028)
Property tax
(1,025)
(1,737)
(1,023)
(1,737)
Pollution fees
(207)
(187)
(200)
(187)
Land tax
(229)
(226)
(229)
(226)
Water use charges
Transport tax
Water tax
Regular subsoil use
fees
Other taxes
Tax fines
and penalties
(50)
(15)
(3)
(0)
(46)
(4)
(56)
(17)
(4)
0
(19)
(8)
(50)
(15)
(3)
(0)
(33)
(4)
(56)
(17)
(4)
0
(15)
(8)
Dividend income tax
(1,591)
(1)
(1,591)
(1)
(20)
(28)
0
0
0
0
0
0
0
0
(0)
0
0
(13)
(187)
(53)
(11)
(14)
(285)
(238)
(37)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(0)
0
0
0
0
0
0
(3)
(0)
0
(11)
(21)
0
0
0
0
0
0
0
0
(1)
0
0
149
(27)
(18)
148
(15)
(4)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Tax jurisdiction
Name of the resident entities
Russian
Federation
PhosAgro, PJSC
Apatit, JSC
Tirvas, LLC
Gornyy tsekh, LLC
Teleset, LLC
Tsentr stroitelnyh materialov, LLC
Aeroport, JSC
Korporativnoe pitanie, LLC
PromTransPort, LLC
Mekhanik, LLC
PhosAgro-Region, LLC, PhosAgro-Oryol, LLC, PhosAgro-
Belgorod, LLC, PhosAgro-Volga, LLC, PhosAgro-Lipetsk,
LLC, PhosAgro-Kursk, LLC, PhosAgro-Don, LLC, PhosAgro-
Kuban, LLC, PhosAgro-Stavropol, LLC, PhosAgro-Tambov, LLC,
PhosAgro-SeveroZapad, LLC
Smart Balk Terminal, LLC
NIUIF, JSC
Trading House PhosAgro, LLC
RBTS PhosAgro, LLC
ITS PhosAgro, LLC
PhosAgro-Service, LLC
PhosAgro-Sibir, LLC (from 01.09.2021)
Tirvas OP, LLC (from 16.12.2021)
Aeroport Khibiny, LLC (from 29.04.2022)
Primary activity
of the organization
Parent company
Core production
Social services
Capital mining operations
Social services
Repair services
Social services
Social services
Transportation services
Repair services
Domestic trader
Stevedoring services
R&D
Trading
Service company
Service company
Service company
Domestic trader
Social services
Social services
35
0
(5)
0
(1)
(7)
0
0
0
0
0
(1)
0
0
30
0
(1)
(0)
(13)
(10)
0
(5)
(5)
(96)
(43)
(1)
(8)
0
(7)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
103
(5)
(99)
(5)
0
0
0
0
0
0
0
0
0
0
(0)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(16)
(10)
0
(0)
0
0
0
(0)
0
0
0
(5)
(4)
0
0
0
0
0
0
0
0
(8)
(3)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(31)
(33)
0
(16)
(12)
0
0
0
0
0
0
0
0
(0)
0
0
0
0
0
0
0
0
0
0
0
0
0
(0)
(2)
(1)
0
(1)
0
0
0
0
0
0
0
0
0
2
(1)
0
0
0
0
0
0
0
0
0
0
0
0
Tax jurisdiction
Name of the resident entities
Brazil
Germany
Cyprus
Lithuania
Poland
Romania
Serbia
Singapore
Finland
PhosAgro Americas (until 31.03.2022)1
PhosAgro Deutschland GmbH(until 31.03.2022)1
Phosint Trading Limited Ltd (until 31.03.2022)1
Phosint Ltd (until 31.03.2022)1
Okmus Oy(until 31.03.2022)1
UAB PhosAgro Baltic(until 31.03.2022)1
PHOSAGRO POLSKA Sp.z o.o.(until 31.03.2022)1
PhosAgro Balkans SRL Romania(from 01.09.2020 until
31.03.2022)1
Phosagro Balkans d.o.o. Beograd(until 31.03.2022)1
Phosagro Asia Pte Ltd(until 31.03.2022)1
Bulk Terminal Kotka Oy(until 31.03.2022)1
Logifert Oy(until 31.03.2022)1
France
Phosagro France SAS(until 31.03.2022)1
Switzerland
PhosAgro Trading SA(until 31.03.2022)1
Primary activity
of the organization
Service company
Foreign trader
Foreign trader
Holding company
Holding company
Foreign trader
Foreign trader
Foreign trader
Foreign trader
Foreign trader
Service company
Service company
Foreign trader
Foreign trader
PhosAgro Logistics AG(until 31.03.2022)1
Logistics and distribution
PhosAsset GmbH(until 31.03.2022)1
South Africa
PhosAgro South Africa Proprietary Limited(from 01.11.2020
until 31.03.2022)1
Holding company
Foreign trader
1
In March 2022, the Group lost control over all the foreign companies of the Group
390
391
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile GRI 401–1
New hires, people1 2
Region
Gender
Vologda region
Total
Saratov region
Total
Leningrad region
Total
Moscow
Total
Murmansk region
Total
Other
Total
Men, total
Women, total
Total
Turnover1 2, %
Region
Vologda region
Total
Saratov region
Total
Leningrad region
Total
Moscow
Total
Murmansk region
Total
Other
Total
Men, total
Women, total
Total
under 30
years
30–50
years
above 50
years
Share, %
M
F
M
F
M
F
M
F
M
F
M
F
185
131
316
47
21
68
88
36
124
5
2
7
387
113
500
18
12
30
730
315
1,045
288
206
494
79
38
117
129
69
198
29
11
40
886
192
1,078
78
24
102
1,489
540
2,029
19
28
47
21
10
31
17
11
28
10
2
12
51
26
77
33
11
44
151
88
239
14.9
11.0
25.9
4.4
2.1
6.5
7.1
3.5
10.6
1.3
0.5
1.8
40.0
10.0
50.0
3.9
1.4
5.3
71.5
28.5
100.0
Gender
under 30
years
30–50 years
above 50
years
M
F
M
F
M
F
M
F
M
F
M
F
0.37
0.27
0.64
0.02
0.04
0.06
0.12
0.03
0.15
0.03
0.01
0.04
0.74
0.19
0.93
0.06
0.02
0.08
1.34
0.56
1.90
0.79
0.56
1.35
0.18
0.10
0.28
0.24
0.21
0.45
0.06
0.03
0.09
2.56
0.46
3.02
0.22
0.06
0.28
4.07
1.41
5.48
0.13
0.12
0.25
0.04
0.06
0.10
0.03
0.01
0.03
0.0
0.02
0.02
0.21
0.07
0.29
0.18
0.04
0.22
0.60
0.31
0.91
2020
Total
492
365
857
147
69
216
234
116
350
44
15
59
1,324
331
1,655
129
47
176
2,370
943
3,313
2020
Total
1.29
0.94
2.23
0.24
0.20
0.44
0.39
0.24
0.64
0.09
0.06
0.15
3.52
0.71
4.24
0.47
0.12
0.59
6.00
2.28
8.29
1 For the purposes of 2022 disclosures, the Company changed presentation by age group. Based on the principle of comparability,
the data for 2021 and 2020 was recalculated.
2 Turnover takes into account voluntary resignations – part 1.3, article 77 of the Labour Code of the Russian Federation; part 1.7, article 77
of the Labour Code of the Russian Federation and for breach of labour discipline – part 1.5, article 81 of the Labour Code of the Russian
Federation; part 1.6a, article 81 of the Labour Code of the Russian Federation; part 1.6b, article 81 of the Labour Code of the Russian
Federation, part 1.7, article 81 of the Labour Code of the Russian Federation.
under 30
years
30–50
years
above 50
years
Share, %
284
190
474
68
40
108
117
44
161
4
5
9
364
145
509
16
12
28
853
436
1,289
332
319
651
130
88
218
227
94
321
23
32
55
872
190
1,062
104
41
145
1,688
764
2,452
26
47
73
5
12
17
21
24
45
7
3
10
65
31
96
45
6
51
15.9
13.8
29.7
5.0
3.5
8.5
9.1
4.0
13.1
0.8
1.0
1.8
32.3
9.1
41.3
4.1
1.5
5.6
169
123
292
67.2
32.8
100.0
under 30
years
30–50 years
above 50
years
0.57
0.43
1.00
0.15
0.07
0.22
0.30
0.07
0.37
0.02
0.01
0.02
0.95
0.24
1.19
0.06
0.01
0.07
2.04
0.82
2.87
1.35
1.07
2.42
0.36
0.26
0.62
0.57
0.20
0.76
0.07
0.04
0.10
2.57
0.66
3.24
0.38
0.09
0.47
5.29
2.32
7.61
0.11
0.16
0.27
0.04
0.08
0.12
0.04
0.04
0.08
0.01
0.01
0.01
0.21
0.11
0.32
0.28
0.03
0.31
0.69
0.42
1.11
2021
Total
642
556
1,198
203
140
343
365
162
527
34
40
74
1,301
366
1,667
165
59
224
2,710
1,323
4,033
2021
Total
2.03
1.66
3.69
0.54
0.41
0.95
0.91
0.31
1.21
0.09
0.05
0.14
3.73
1.01
4.74
0.72
0.13
0.85
8.02
3.57
11.59
under 30
years
30–50
years
above 50
years
Share, %
405
197
602
143
65
208
201
68
269
3
3
6
449
161
610
19
13
32
1,220
507
1,727
526
354
880
310
156
466
374
118
492
20
17
37
1,237
287
1,524
98
26
124
2,565
958
3,523
107
50
157
33
26
59
35
18
53
8
2
10
123
47
170
39
9
48
345
152
497
18.1
10.5
28.5
8.5
4.3
12.8
10.6
3.5
14.2
0.5
0.4
0.9
31.5
8.6
40.1
2.7
0.8
3.5
71.9
28.1
100.0
under 30
years
30–50 years
above 50
years
0.47
0.31
0.79
0.18
0.07
0.25
0.38
0.10
0.48
0.01
0.01
0.01
0.69
0.24
0.93
0.06
0.01
0.07
1.79
0.74
2.52
0.81
0.72
1.53
0.45
0.21
0.66
0.72
0.19
0.91
0.06
0.05
0.11
2.18
0.57
2.75
0.33
0.07
0.40
4.55
1.81
6.36
0.12
0.09
0.21
0.04
0.06
0.10
0.10
0.05
0.15
0.03
0.01
0.04
0.22
0.09
0.31
0.14
0.02
0.16
0.63
0.32
0.95
2022
Total
1,038
601
1,639
486
247
733
610
204
814
31
22
53
1,809
495
2,304
156
48
204
4,130
1,617
5,747
2022
Total
1.40
1.12
2.52
0.67
0.33
1.00
1.20
0.34
1.54
0.09
0.07
0.15
3.09
0.91
4.00
0.52
0.10
0.62
6.97
2.87
9.84
392
393
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile GRI 401–3
Parental leave in the reporting year
Item
Employees on parental
leave
Employees who
returned to work after
parental leave
Employees who
returned to work
after parental leave
and stayed at work 12
months after return
Return to work ratio
Retention ratio
2020
Total
805
179
F
794
179
165
167
M
11
0
2
2021
Total
832
179
F
818
176
159
159
M
14
3
0
2022
Total
842
200
F
827
198
165
168
M
15
2
3
0.00
100.00
22.54
93.75
22.24
93.82
21.4
0.0
21.5
88.8
21.5
88.8
13.3
100.0
23.9
93.8
23.8
93.9
List of PhosAgro Group companies
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
PhosAgro, PJSC
Tirvas, LLC
Gorny tsekh, LLC
Teleset, LLC
16
17
18
19
PhosAgro-Kursk, LLC
PhosAgro-Don, LLC
PhosAgro-Kuban, LLC
PhosAgro-Stavropol, LLC
Tsentr stroitelnyh materialov, LLC
20 PhosAgro-Tambov, LLC
Aeroport, JSC
Korporativnoe pitanie, LLC
PromTransPort, LLC
Mekhanik, LLC
21
22
PhosAgro-SeveroZapad, LLC
Smart Bulk Terminal, LLC
23 NIUIF, JSC
24 Trading House PhosAgro, LLC
Apatit (including Balakovo, Volkhov and Kirovsk
Branches), JSC
25
RBTS PhosAgro, LLC
PhosAgro-Region, LLC
PhosAgro-Oryol, LLC
PhosAgro-Belgorod, LLC
PhosAgro-Volga, LLC
PhosAgro-Lipetsk, LLC
26
27
ITS PhosAgro, LLC
PhosAgro-Service, LLC
28 PhosAgro-Sibir, LLC
29
Tirvas OP, LLC
30 Khibiny Airport, LLC
SASB content index
Code
Activity metric
RT-CH-000.A
EM-MM-000.B
ENVIRONMENTAL
Production broken down by reporting segments
Total number of employees, percentage contractors
Page number/
Comment
94-98
152-153
RT-CH-110a.1
EM-MM-110a.1
RT-CH-110a.2
EM-MM-110a.2
RT-CH-120a.1
EM-MM-120a.1
RT-CH-130a.1
EM-MM-130a.1
RT-CH-140a.1
EM-MM-140a.1
RT-CH-140a.2
EM-MM-140a.2
RT-CH-140a.3
RT-CH-150a.1
EM-MM-150a.1
EM-MM-150a.2
EM-MM-160a.1
EM-MM-160a.3
RT-CH-410b.1
Gross global Scope 1 emissions, percentage covered under emissions-
limiting regulations
Discussion of a long-term or short-term strategy or plan to manage Scope
1 emissions, emissions reduction targets, and an analysis of performance
against those targets
Air emissions of the following pollutants: (1) CO, (2) NOx (excluding N2O), (3)
SOx, (4) particulate matter (PM10), (5) mercury (Hg), (6) lead (Pb), (7) volatile
organic compounds (VOCs), and (8) hazardous air pollutants (HAPs)
206
198
223
(1) Total energy consumed, (2) percentage grid electricity, (3) percentage
renewable, (4) total self-generated energy
212-213
(1) Total water withdrawn, (2) total water consumed, percentage of each
in regions with High or Extremely High Baseline Water Stress
Number of incidents of non-compliance associated with water quality
permits, standards, and regulations
Description of water management risks and discussion of strategies
and practices to mitigate them
Amount of hazardous waste generated, percentage recycled
Total weight of tailings waste, percentage recycled
Total weight of mineral processing waste, percentage recycled
Description of environmental management policies and practices
for active sites
Percentage of (1) proved and (2) probable reserves in or near sites
with protected conservation status or endangered species habitat
(1) Percentage of products that contain Globally Harmonized System
of Classification and Labeling of Chemicals (GHS) Category 1 and 2
Health and Environmental Hazardous Substances, (2) percentage of such
products that have undergone a hazard assessment
227
224
225
218
219
219
192-193
231
218
RT-CH-410b.2
Discussion of strategy to (1) manage chemicals of concern and (2) develop
alternatives with reduced human and/or environmental impact
192
394
395
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Code
Activity metric
Page number/
Comment
TCFD Recommendations
SOCIAL
EM-MM-210a.3
RT-CH-210a.1
EM-MM-210b.1
EM-MM-210b.2
EM-MM-310a.2
RT-CH-320a.1
RT-CH-320a.2
RT-CH-540a.1
Discussion of engagement processes and due diligence practices
with respect to human rights, indigenous rights, and operation in areas
of conflict
Discussion of engagement processes to manage risks and opportunities
associated with community interests
Discussion of process to manage risks and opportunities associated
with community rights and interest
Number and duration of non-technical delays
Number and duration of strikes and lockouts
(1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct
employees and (b) contract employees
Description of efforts to assess, monitor, and reduce exposure
of employees and contract workers to long-term (chronic) health risks
Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate
(PSTIR), and Process Safety Incident Severity Rate (PSISR)
RT-CH-540a.2
Number of transport incidents
GOVERNANCE
EM-MM-510a.1
EM-MM-510a.2
Description of the management system for prevention of corruption
and bribery throughout the value chain
Production in countries that have the 20 lowest rankings in Transparency
International’s Corruption Perception Index
28-29
239
239
43-45
No cases
179-181
176
179-181
178
313
The Company
does not carry
out production
in countries
that have the 20
lowest rankings
in Transparency
International’s
Corruption
Perception Index
Indicator
CORPORATE GOVERNANCE
The Board of Director’s role in monitoring climate-related risks and opportunities
The management’s role in assessing and managing climate-related risks and opportunities
STRATEGY
Description of the climate-related risks and opportunities the organisation has identified
over the short, medium, and long term
Reported
260
201
201
Description of the impact of climate-related risks and opportunities on the organisation’s businesses,
strategy, and financial planning.
199-201
Assessment of the resilience of the organisation’s strategy, taking into consideration different climate-
related scenarios, including a 4°C and 2°C scenario
201
CLIMATE RISK MANAGEMENT
Description of the organisation’s processes for identifying and assessing climate-related risks
Description of the organisation’s processes for managing climate-related risks.
Description of integration of processes for identifying, assessing and managing climate-related risks
into the general risk management framework
METRICS AND TARGET
Description of the metrics used by the organisation to assess climate-related risks and opportunities
in line with its strategy and risk management processes
Disclosure of Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and the related risks.
Description of the targets used by the organisation to manage climate-related risks and opportunities
and performance against targets.
201
201
80
198
198
198
RT-CH-530a.1
Discussion of corporate positions related to government regulations and/
or policy proposals that address environmental and social factors affecting
the industry
305
TCFD-report
For more information on GHG emissions
and climate risks, see the TCFD report 2020
https://ar2020.phosagro.com/pdf/ar/en/tcfd-pointer.pdf
396
397
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Glossary
AN – ammonium nitrate
ANBP – apatite-nepheline
beneficiation plant
ANSES – French Agency for Food,
Environmental and Occupational
Health & Safety
BAT – best available technique
bln – billion
Capex – capital expenditure
CBAM – carbon border adjustment
mechanism
CCl4 – carbon tetrachloride
CDP – Carbon Disclosure Project
CIS – Commonwealth
of Independent States
EMERCOM – Ministry for Civil
Defence, Emergencies
and Elimination of Consequences
of Natural Disasters
ESG – environmental, social,
and governance
ESPP – European Sustainable
Phosphorus Platform
EU – European Union
FAO – Food and Agriculture
Organisation
GDP – gross domestic product
GDR – global depositary receipt
GLOSOLAN — Global Soil
Laboratories Networks;
supporting the GLOSOLAN
by developing research capacities
kg – kilogram
KPI – key performance indicator
kWh – kilowatt-hour
LSE – London Stock Exchange
LTIFR – lost time injury frequency
rate
MAP – monoammonium phosphate
MCP – feed monocalcium phosphate
mg – milligram
mln – million
MOP – muriate of potash
CJSC – closed joint-stock company
and strengthening the Regional Soil
MW – megawatt
CO2 – carbon dioxide
CO2-equivalent – a conventional unit
of measurement used to measure
greenhouse gas emissions (including
carbon footprint calculations).
Laboratories Networks (RESOLAN)
GRI – Global Reporting Initiative
HR – human resources
HSE – health, safety and environment
COVID-19 – сoronavirus disease 2019,
the pandemic caused by severe
IFA – International Fertilizer
Association
NIUIF – Samoilov Scientific
Research Institute for Fertilizers
and Insectofungicides
NO2 – nitrogen dioxide
NPK – nitrogen-phosphorus-
potassium fertilizer
acute respiratory syndrome
coronavirus 2 (SARS-CoV-2)
DAP – diammonium phosphate
DROZD – Educated and Healthy
Children of Russia programme
EBITDA – earnings before interest,
taxes, depreciation and amortisation
IFRS – International Financial
Reporting Standards
IMF – International Monetary Fund
IPCC – Intergovernmental Panel on
Climate Change
OHS – occupational health and safety
OPEC – Organisation
of the Petroleum Exporting Countries
P2O5 – phosphoric pentoxide
PJSC – public joint-stock company
IRR – internal rate of return
PwC – PricewaterhouseCoopers
IT – information technology
R&D – research and development
IUPAC – International Union of Pure
and Applied Chemistry
RAFP – Russian Association
of Fertilizer Producers
SDG – UN Sustainable Development
Goal
ths – thousand
UN – United Nations
JSC – joint-stock company
RAS – Russian Accounting Standards
SME – small and medium enterprise
REACH – Registration, Evaluation,
Authorisation and Restriction
SMEs – small and medium-sized
enterprises
UNESCO – United Nations
Educational, Scientific and Cultural
Organisation
of Chemicals
Rospotrebnadzor – Federal Service
for Surveillance on Consumer Rights
Protection and Human Wellbeing
Rostekhnadzor – Federal Service
for the Supervision of Environment,
Technology and Nuclear
Management
RSPP – Russian Union
of Industrialists and Entrepreneurs
RUB – Russian rouble
SASB – Sustainability Accounting
Standards Board
SO2 – sulphur dioxide
USA – United States of America
STPP – sodium tripolyphosphate
USD – United States dollar
VAT – value-added tax
VHI – voluntary health insurance
VOC – volatile organic compound
Strategy to 2025 – PhosAgro Group's
Development Strategy to 2025
t – metric tonne
Total output of finished and semi-
finished products – total output of
the Company’s finished and semi-
finished products for the reporting
period, including mineral fertilizers,
animal feed, industrial phosphates
and industrial products, phosphate
rock and nepheline concentrate.
398
399
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile Contacts
GRI 2-1
Investor Relations
Auditor
Andrey Serov
Head of Investor Relations
JSC Technologies of Trust – Audit
JSC Unicon
Tel.: +7 (495) 231 31 15
Business Centre, Moscow 125047,
8 Business Centre, Moscow, Russia
10 Butyrsky Val, White Square
8 Preobrazhenskaya Ploshchad, Preo
Email: ir@phosagro.ru
Russia
Tel.: +7 (495) 967 60 00
Fax: +7 (495) 967 60 01
Website: www.tedo.ru
Tel.: +7 (495) 797 56 65
Fax: +7 (495) 797 56 60
Website: www.unicon.ru
Corporate Secretary
Registrar
Sergey Samosyuk
Tel.: +7 (495) 232 96 89, ext. 2712
Email: ks@phosagro.ru
JSC Reestr 20 B. Balkansky Lane,
bldg. 1, Moscow 129090, Russia
Tel.: +7 (495) 617 01 01
Fax: +7 (495) 680 80 01
Contacts for employees
and potential employees
Dmitry Borodich
HR and Social Policy Director
Tel.: +7 (495) 231 31 15
55/1 Leninsky Prospekt, bldg. 1,
Email: reestr@aoreestr.ru
Email: info@phosagro.ru
Moscow 119333, Russia
Tel.: +7 (495) 232 96 89
Fax: +7 (495) 956 19 02
Website: www.aoreestr.ru
Contacts for media
Sustainability contacts
Andrey Podkopalov
Director of Information Policy
Tel.: +7 (495) 232 96 89, ext. 26 51
Timur Belov
Press officer
Tel.: +7 (495) 232 96 89, ext. 26 52
Email: pr@phosagro.ru
Sergey Kudryashov
Head of Sustainable Development
Department
Tel.: +7 (495) 231 27 47
Email: esg@phosagro.ru
400
401
Strategic reportPerformance reviewCorporate governanceShare capitalADDITIONAL INFORMATIONCompany profile