40
50
60
70
80
24
FERTILE
GROUND FOR
PARTNERSHIP
Integrated report
1
24
40
50
60
70
80
APPENDICES
CONTENTS
Appendices
(stand-alone document)
For the interactive version of the
report, please visit our website at
www.phosagro.com
2
About this report
4
Fertile ground for partnership
Company
profile
8
Our mission and values
10
Navigator on UN SDGs
12
Key highlights
14
Key events in 2024
16
Investment case and credit
ratings
21
Business model
26
Stakeholder engagement
28
Material topics
Strategic
report
32
Chairman’s statement
35
CEO’s statement
38
Business environment
44
Market overview
48
Strategy
66
Strategic risks
Performance
review
78
Financial performance
86
Operational performance
92
Customers and product
management
106 Research, innovations and
education
128 Supply chain
142 People development
164 Industrial safety
182 Environmental review
220 Contributing to local
communities
Corporate
governance
248 Corporate governance
framework
250 Corporate governance practices
254 General Meeting
of Shareholders
254 Board of Directors
274 Executive bodies
276 Remuneration report
279 Corporate controls
286 Ethical practices
SHARE
CAPITAL
302 Ownership structure
302 Share performance
305 Analyst coverage
306 Debt management
308 Dividend policy
310 Relationship with shareholders
and investors
311
Information disclosure
Additional
information
314 The consolidated financial
statements
355 Additional information
to the sections
373 Independent limited assurance
report
378 GRI and SASB content index
388 Pilot disclosure in accordance
with IFRS S1 and S2
393 Sustainable development
indicators content index as per
the Order of the Ministry
of Economic Development
of Russia
396 Indicators of the responsibility
and transparency and
sustainable development
vector indices of the Russian
Union of Industrialists and
Entrepreneurs (RSPP)
400 Glossary
402 Contacts
ABOUT THIS REPORT
GRI 2-1, 2-2, 2-3
The Report was approved by the Board
of Directors of PhosAgro on 17 April
2025 (Minutes w/o No. dated 18 April
2025).
GRI 2-5, 2-14
This Report complies with
the following requirements and
recommendations:
• Bank of Russia’s Regulation
No. 714-P On Disclosure
of Information by the Issuers
of Issue-Grade Securities dated 27
March 2020;
• Bank of Russia’s Letter
No. 06–52/2463 On Corporate
Governance Code dated
10 April 2014;
• Bank of Russia’s Letter
No. IN-06–28/102 On Disclosure
in the Annual Report of a Public
Joint-Stock Company of a Report
on Compliance with the Principles
and Recommendations
of the Corporate Governance Code
dated 27 December 2021;
• UK Corporate Governance Code;
• Bank of Russia’s Information
Letter No. IN-06-28/49
On Recommendations on Disclosure
by Joint-Stock Companies of Non-
Financial Information Pertaining
to Their Activities dated 12 July 2021;
• Order of the Ministry of Economic
Development of Russia No. 764
On Approval of Methodological
Recommendations
for the Preparation of Sustainable
Development Reporting dated 1
November 2023;
• Listing Rules of the Moscow
Exchange and the London Stock
Exchange;
• AA 1000 and ISO 26000 standards;
• CDP standards;
• Value Reporting Foundation’s
standards;
• Industry-based SASB (Sustainability
Accounting Standards Board)
standards;
• Reference Performance Indicators
of the Russian Union of Industrialists
and Entrepreneurs (RSPP), and
BOUNDARIES AND STANDARDS
the MOEX–RSPP Responsibility and
Transparency, and Sustainability
Vector indices;
• Social Charter of the Russian
Business sponsored by the Russian
Union of Industrialists and
Entrepreneurs.
The Company takes into account
Russian and international best
practices for disclosing information
on sustainable development, including
IFRS S1 and IFRS S2 reporting
standards issued by the International
Sustainability Standards Board
(ISSB). In 2024, the Company
assessed its preparedness to apply
IFRS S1 General Requirements
for Disclosure of Sustainability-
related Financial Information and
IFRS S2 Climate-related Disclosures.
The Additional Information section
provides details on pilot disclosures
made in the formats required
by the standard. This information
shall not be treated as the statement
of compliance in accordance with
para. 72 of IFRS S1.
The Company’s report conforms to GRI
2021 standards (in accordance option).
Appropriate disclosure of qualitative
and quantitative information
prepared in accordance with the GRI
Standards (“Selected Information”)
has been assured by Joint-Stock
Company Technologies of Trust –
Audit (Technologies of Trust – Audit
JSC) in line with the International
Standard on Assurance Engagements
(ISAE) 3000 (Revised), Assurance
Engagements Other than Audits
or Reviews of Historical Financial
Information. The independent
assurance report and the GRI Content
Index are available in the Additional
Information section of this Report.
This Report provides insights into
the performance of parent company
PhosAgro and its subsidiaries
(hereinafter jointly referred
to as “PhosAgro Group”, the “Group”,
or the “Company”) across their
operations for the year 2024, while
also offering information on corporate
governance and corporate
responsibility. The key subsidiaries
of the Group and PhosAgro’s stake
in these subsidiaries are presented
in the Group’s 2024 IFRS consolidated
financial statements.
Financial results in the Report
were disclosed based on the IFRS
consolidated financial statements
of the Group for 2024 audited
by Technologies of Trust – Audit JSC
in accordance with the International
Standards on Auditing.
The boundaries of the Group
companies covered in this Report
differ from those in consolidated
financial statements when
it comes to specific non-financial
disclosures. To ensure compliance
with the materiality principle,
we determined such boundaries
in a way that this Report describes all
material aspects of PhosAgro Group.
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.
It is our pleasure to welcome you
to the 2024 Integrated Annual Report
(the “Report”) of PJSC PhosAgro
(PhosAgro). PhosAgro is a vertically
integrated Russian company and
one of the world’s leading producers
of phosphate-based fertilizers.
The Company maintains an annual
reporting cycle, with the previous
report released on 28 April 2024.
The Report highlights how
we integrate ESG principles into
everything we do. The reporting
period for the Company’s consolidated
financial statements is from 1 January
to 31 December 2024.
The Report’s theme is
FERTILE GROUND
FOR PARTNERSHIP
Soil is the source of life, but
its fertility is finite. This is why,
alongside producing fertilizers,
we integrate scientific knowledge,
technology, and best farming
practices. This enables us to
develop and promote new
approaches and technologies
focused on conserving soil and
restoring the fertility of degraded
land. In doing so, we contribute
to the creation of a sustainable
agricultural system for the
benefit of future generations.
We are confident that soil is the
foundation of the Earth’s future.
We unite efforts with those who
share our concern for the future.
In 2024, the Company expanded
its partnerships with international
organisations, R&D institutions,
businesses, and the expert
community. Our collaborative
initiatives encompass soil research
and monitoring, laboratory
development, implementation
of sustainable agricultural practices,
and the launch of educational
programmes. We implement
projects in partnership with
the Food and Agriculture
Organisation of the United
Nations (UN FAO), provide training
for farmers across BRICS countries,
and contribute to shaping
the global ESG agenda within
the Business Twenty (B20).
PhosAgro Group’s approach focuses
on transferring technology from
research labs to the field. Our
experts study soil structure to develop
fertilizers that make soil more resistant
to degradation and preserve its fertility
without damaging ecosystems.
We support farmers by producing
quality products while also sharing
our knowledge and teaching them
lean application of fertilizers and best
agricultural methods.
40
50
60
70
80
24
FERTILE
GROUND FOR
PARTNERSHIP
Integrated report
This idea is highlighted
by the Report’s visual concept. Tier
by tier, from exploring the molecular
structure of nutrients and creating
safe fertilizers to restoring
the fertility of fields and harvesting
sustainable crops, we are building
a system to protect soil.
For more information
on specific disclosures
and their boundaries
used in this Report, see
the GRI Content Index
section
p.
378
3
2
FERTILE GROUND FOR PARTNERSHIP
The leading fertilizer producer in Russia and overseas, PhosAgro Group is also
the key integrator of steps to protect soil sustainability and fertility across
the globe.
We apply a holistic approach
to reducing soil vulnerability
by joining forces with the world’s
leading agronomists, financing
the research of various soils and
fertilizer matching, raising farmers’
awareness in regions where soils
are most exposed to degradation,
and designing fertilizers with unique
nutrient compositions and properties.
These efforts pave the way to more
efficient use of soil and avoiding
its degradation.
PhosAgro Group and the UN
FAO announced a third stage
of the global soil protection
initiative thanks to building
the network of more than
one thousand soil labs in 160
developing countries.
PhosAgro acted as the general
partner of the All-Russian
Field Day 2024 showcasing
its innovative mineral fertilizers
along with tools and methods
to streamline agricultural
technologies, use resources
more efficiently, and increase
yields, product quality and profits
without a significant rise in costs.
PhosAgro-Region opened
its first in-house lab to perform
a wide range of agrochemical
soil tests across its footprint.
The Company took part in BRICS
symposium on environment-
smart agriculture presenting
successful cases in sustainable
agriculture.
PhosAgro and Peoples’
Friendship University of Russia
(RUDN) launched the BRICS
International School
for Sustainable Agriculture,
bringing together 60 students
from six BRICS nations.
PhosAgro Group became
the general partner of the sixth
IUPAC Summer School
on Green Chemistry, advancing
best practices in green fertilizer
production, promoting basic
sciences, sharing knowledge,
and forging international ties.
PhosAgro Group, AgroGard,
and Lomonosov Moscow
State University with UN FAO
support launched RECSOIL,
the first soil protection
initiative of its kind in Russia
aimed at supporting farmers,
sustainable soil management,
and increasing organic carbon
in soils.
PhosAgro-Region summarised
its agronomic programme,
which saw over 200 tests
of mineral plant nutrition
systems performed in 2024.
The Company presented
educational projects
for African farmers as part
of the Ministerial Conference
of the Russia–Africa
Partnership Forum, in particular
ProAgro Lectorium, a global
digital platform offering lectures
from the leading academics and
practitioners.
The Group spoke
of its contribution to advancing
the Green One national
platform at the Global Fresh
Market 2024 as the Company
had been promoting green
industrial and agricultural
products for over five years.
The Group helped arrange
an international symposium
on climate-smart and
eco-friendly agriculture
in St Petersburg which brought
together the world’s leading
experts in environmental
protection and agricultural
innovations.
The Company presented
sustainable farming initiatives
at the B20 forum at SPIEF-2024
highlighting its role in promoting
green fertilizers and pro-active
efforts as part of the B20
sustainable food systems and
agriculture task force.
1
4
2
5
3
7
10
8
11
9
12
6
Key events in the field of soil protection in 2024
1 Certified for environmental compliance under the Vitality Leaf international standard.
4
5
COMPANY
PROFILE
2024 key highlights
Phosphoric acid HзPO4
p.
12-13
in Russia for corporate
ESG practices, according
to RAEX ranking
No. 1
fertilizer grades produced
in 202458
Russian regions
covered by our
supplies74
Creating
the foundation
for change
PhosAgro integrates
sustainable development
principles into all business
operations, building
a robust foundation
for long-term growth.
Steady advancements
in production efficiency
empower the Company
to continue strengthening
its ESG practices and
redefining industry
standards.
8
Our mission and values
10
Navigator on UN SDGs
12
Key highlights
14
Key events in 2024
16
Investment case and credit ratings
21
Business model
26 Stakeholder engagement
28 Material topics
7
6
Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
OUR MISSION
and values
OUR VISION
CARE FOR THE
ENVIRONMENT
HEALTHY
LIFESTYLES AND
OCCUPATIONAL
HEALTH AND
SAFETY
ORGANIC
GROWTH AND
DEVELOPMENT
GLOBAL PRESENCE
SOCIAL
RESPONSIBILITY
INNOVATION
AND DIGITAL
TRANSFORMATION
As one of the world’s leading mineral fertilizer producers, PhosAgro
assumes a special responsibility for global food security.
We offer eco-sustainable fertilizers1, supply them, and train farmers
in their most efficient and responsible application.
OUR
MISSION
Caring for Earth
fertility
for prosperous
lives
OUR VALUES
Leadership. Our goals
are ambitious as we strive
for professional excellence and
continuous self-improvement
Teamwork. As a 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
1 Certified for environmental compliance under the Vitality Leaf international standard.
9
8
Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
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.
For more information on SDGs, see
the Commitment to UN Goals section
of the Company’s website
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.
Target
2.4
Target
6.1, 6.3
Target
3.4, 3.9
Target
11.3
Target
12.4
Target
4.4
Our key programmes
• Increasing sales efficiency
• Improvement
of the product mix
Our key programmes
• Initiatives to boost water
use efficiency as part
of the Company’s Water
Strategy
National project
• Demography: Sports as a Way
of Life federal project
Our key programmes
• Safety culture improvement
programme
• Minimising pollutant
emissions per unit of output
• Social benefits and employee
guarantees
• DROZD (Educated and
Healthy Children of Russia)
National project
• Housing and Urban
Environment: Creating
a Comfortable Urban
Environment federal project
Our key programmes
• Our Favourite Cities
programme
• Promotion of entrepreneurship
Our key programmes
• Programme to promote circular
economy elements, including
the use of phosphogypsum
in farming and other industries
• Improvement of production
processes
• Green procurement programme
and ESG assessment of suppliers
National projects
• Demography:
Sports as a Way
of Life federal
project
• Education: promoting
engineering professions
• Culture: establishing cultural
and educational museum
facilities
Our key programmes
• School–college/university–
facility educational model
• Cooperation with universities
and Russian and international
R&D centres
• Promotion of retraining and
professional development
• Improving safety competencies
Making a positive
impact
Minimising
the negative
impact
Target
8.3, 8.5, 8.8
Our key programmes
• Comprehensive production
development programme
• Incentives and rewards
• Our Favourite Cities programme
• Green procurement
programme and ESG
assessment of suppliers
Target
17.16, 17.17
Our key programmes
• Cooperation with universities
and Russian and international
R&D centres
• Collaboration with UN organ-
isations (FAO, UNESCO, UN
Global Compact)
• Joining efforts with the govern-
ments and municipal authori-
ties in Russian regions in which
the Company operates
• Mineral fertilizer consumer
surveys
For more information,
see page 104, 121, 216, 227
Target
15.1
Our key programmes
• Comprehensive programmes
to assess and preserve
biodiversity
• Partnership with UN FAO
in advancing sustainable
farming
• RECSOIL project in partnership
with Lomonosov Moscow State
University and UN FAO
National project
• Housing and Urban
Environment: Creating
a Comfortable Urban
Environment federal project
Our key programmes
• Logistics infrastructure
development programme
• Our Favourite Cities
programme
Our key programmes
• Energy Efficiency Programme
• Delivering on the Climate
Agenda project
• Green procurement
programme and ESG
assessment of suppliers
• Application improvement
For more information,
see page 120, 216
For more information,
see page 56, 228
For more information,
see page 118, 138, 190, 201
For more information,
see page 110, 138, 206
For more information, see
page 110, 138, 206
For more information,
see page 58, 139, 159, 228
For more information,
see page 179, 208, 236
For more information,
see page 212
For more information,
see page 54, 114
For more information,
see page 121, 154, 178, 232
Target
9.1
Target
13.1, 13.2
Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
11
10
KEY HIGHLIGHTS
FINANCIAL
HIGHLIGHTS
OPERATIONAL
HIGHLIGHTS
SUSTAINABLE DEVELOPMENT
HIGHLIGHTS
Revenue, RUB bln
Phosphate-based fertilizers
production, kt
GHG emissions (Scope 1),
kg per tonne of finished and
semi-finished products
Water withdrawal2,
m3 per tonne of products and
semi-finished products
Fatalities as a result of work-related
injuries (own staff),
per 1 mln of hours worked
Adjusted EBITDA1, RUB bln
Nitrogen-based fertilizers
production, kt
Pollutant emissions,
kg per tonne of finished and
semi-finished products
Share of recycled and
decontaminated hazard class 1–4
waste, %
Average annual training hours
per employee, hour
Dividend payments, RUB bln
Sales of phosphate-based and
nitrogen-based fertilizers, kt
Discharge of waste water
into surface water bodies3,
m3 per tonne of products and
semi-finished products
LTIFR4,
per 1 mln hours worked
Employee satisfaction and
loyalty, p.p.
Change 2024 to 2023
507.7
440.3
569.5
2022
2023
2024
15.3%
170.6
168.4
266.9
1.3%
Change 2024 to 2023
2022
2023
2024
109.2
94.5
142.1
2022
2023
2024
8,874.2
8,388.7
8,224.4
5.8%
Change 2024 to 2023
2022
2023
2024
2,593.2
2,605.3
2,546.6
–0.5%
Change 2024 to 2023
2022
2023
2024
11,604.3
11,138.7
10,953.6
4.2%
Change 2024 to 2023
2022
2023
2024
109.1
121.2
128.5
133.1
2028
target
2022
2023
2024
0.800
0.712
0.799
0.793
2022
2023
2024
2025
target
1.70
1.83
1.90
2.24
2022
2023
2024
2025
target
2.60
3.25
3.22
3.39
2022
2023
2024
2025
target
40.00
40.32
40.20
38.80
2022
2023
2024
2025
target
0.54
0.61
0.38
2022
2023
2024
Target: -10%/yr
0.00
0.00
0.05
2022
2023
2024
Target: 0 fatalities
123.0
116.6
99.4
99.8
2022
2023
2024
2025
target
65
76
73
68
2022
2023
2024
2025
target
!
PhosAgro Group stays true
to the priorities set out
in its long-term development
strategy. With an ongoing
focus on production expansion
and substantial capital
investments, the Company
continues to deliver consistent
production efficiency
improvements and strong
financial results, while
maintaining an unwavering
commitment to sustainability.
We believe that a successful
and efficient business
should contribute positively
to society and make
continuous efforts to reduce
its environmental footprint.
At all levels of the Company’s
management, from the Board
of Directors onwards,
we maintain a steadfast
focus on sustainable
development and social
responsibility.
Revenue went up primarily
due to increased sales of phosphate-
based fertilizers, especially NPK,
amid recovery in average global sales
prices from early 2024 and a shift
in the rouble rate.
Adjusted EBITDA improved by 1.3%,
while adjusted EBITDA margin came
in at 33.6%, driven by a rise in sales
and sales prices. At the same time,
the metric came under pressure
from higher costs associated with
the payment of export duties
introduced in 2023, increased
consumption of raw materials, and
an expansion in staff costs.
1 Adjusted EBITDA is calculated as operating profit
adjusted for depreciation and amortisation less
foreign exchange gain or loss from operating
activities.
2 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.
3 The Group specific disclosure was calculated as the ratio of the volume of waste water discharged into surface water bodies, excluding
mine and pit waters, to the total output of products and semi-finished products.
4 Employees + staff of external contractors (including subsidiaries, affiliates and managed companies, Boundary A – for more information,
see the Industrial Safety section on pages 164–181).
The bulk of the growth in 2024
was in phosphate-based fertilizer
production, attributable to the Volkhov
production site reaching its design
capacity, as well as the increased
production of key inputs such
as phosphoric (up 5.1%) and sulphuric
(up 5.3%) acids.
Mineral fertilizer sales grew by 4.2%
in 2024. The key growth factors were
robust production volumes, strong
efficiency of PhosAgro Group’s
distribution network in Russia, and our
solid position in global sales markets.
PhosAgro Group continued
to progress towards achieving
its goals in climate action, energy
efficiency, waste management, and
water management. The emissions
reduction and waste recycling
and decontamination targets
outlined in our Strategy to 2025
were successfully achieved ahead
of schedule as early as 2023.
In 2024, PhosAgro maintained
an impeccable safety record with zero
fatalities among its own employees,
as well as those of contractors,
subsidiaries and affiliates. LTIFR
for all personnel categories was 0.54
(compared to 0.61 in 2023), and
the number of transport incidents
decreased by approximately half
compared to 2022.
Employee satisfaction and loyalty
within PhosAgro Group have been
consistently improving each year,
thanks to a well-thought-out human
resources strategy, extensive
social programmes, and an active
communication policy. Over the past
three years, the average monthly
pay across the Group’s facilities rose
by 67%, with salaries of all employees
raised by 15% in 2024.
For more
information
on financial
performance, see
For more
information
on operational
performance, see
p.
78–85
p.
86–91
13
12
Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
KEY EVENTS
in 2024
JANUARY
JULY
NOVEMBER
DECEMBER
AUGUST
FEBRUARY
MARCH
APRIL
JUNE
MAY
• PhosAgro Group became
the leading Russian
producer of fertilizers.
• The Company increased
salaries for all employees
by an additional 15%.
• The share of the mining
and processing plant’s
production using green
electricity rose to 18.1%.
• Apatit’s Cherepovets
facility produced
its 150-millionth tonne
of nitrogen and phosphate
fertilizers.
• The +10 m level of the Kirovsky
mine was commissioned.
• Capacity for granulated
ammonium sulphate
production in Balakovo
was increased to 360 ktpa.
• A new high-tech production
facility was put into operation
at the Volkhov site.
• Expert RA and ACRA affirmed
PhosAgro’s credit rating
at the highest level, AAA(RU), with
a stable outlook.
• In 1Q 2024, the Company
increased its agrochemical
production by almost 7% to hit
a record of 3 mt.
• The agreement with RUSAL
on aluminium fluoride supplies
was expanded to 96 ktpa.
• PhosAgro issued
RUB-denominated
bonds for a total
of USD 100 mln.
• PhosAgro Group and
Russian Railways
signed a cooperation
agreement
at SPIEF-2024
to coordinate
long-term freight
transportation plans.
• PhosAgro Group
and Gazprombank
signed a cooperation
agreement on climate
projects during
SPIEF-2024.
• The Kirovsk branch of Apatit
produced the 750-millionth tonne
of phosphate rock in its 95th
anniversary year.
• PhosAgro’s Board of Directors
approved the progress of key
investment projects as part
of the Company’s Strategy to 2025.
• The Company received
the highest honour
at the Responsible Business
Leadership national award.
• PhosAgro Group joined the Arab
Fertilizer Association (AFA).
• The Company extended
its financial support and,
in partnership with the Food
and Agriculture Organisation
of the United Nations (FAO),
launched phase 3 of the global
project for sustainable soil
management, set to run until
2026.
• PhosAgro made
it to the Top 3 in RAEX
business stakeholder
engagement ranking.
• The Company completed
the implementation
of the Cyber Backup
information system,
ensuring reliable
protection of critical
data and the effective
operation of its entire
digital infrastructure.
SEPTEMBER
• A RUB 35 bln issue
of RUB-denominated bonds with
a variable coupon was placed.
• Apatit implemented
the LD.TaxMonitor information
system, becoming one of the first
taxpayers to integrate with Tax-3
AIS in accordance with the Federal
Tax Service requirements.
• PhosAgro Group’s Cherepovets site produced
a record 105-millionth tonne of sulphuric acid
in the 50th anniversary year of sulphuric acid
production.
• PhosAgro received the highest score
in the ranking of Russia’s best employers
by Forbes.
• Apatit’s Kirov branch mined its 2.2-billionth
tonne of apatite-nepheline ore in celebration
of its 95th anniversary.
• The Company offered bonds worth
RUB 20 bln.
• PhosAgro Group’s electronic HR document
management system received an honour
at CNews Awards 2024.
• PhosAgro was recognised among the top companies
in the CNews Awards 2024 Corporate Philanthropy
Leaders ranking.
• With support from FAO, PhosAgro and Lomonosov
Moscow State University launched a pilot
of the RECSOIL soil protection initiative in Russia.
• Victor Cherepov, Chairman of PhosAgro’s Board
of Directors, won the Best Independent Director award
in the Top 1,000 Russian managers ranking.
• PhosAgro’s Board of Directors noted the early
achievement of key Strategy to 2025 objectives:
investment in development exceeded RUB 330 bln
significantly surpassing the RUB 250 bln target set
for completion by 2025.
• PhosAgro won RAEX’s final ESG ranking for 2024,
reaffirming its leadership in the social domain.
OCTOBER
• PhosAgro became the first
recipient of RAEX’s top ESG
rating, AAA, leading all 80
companies on the list.
• PhosAgro won the Exporter
of the Year award, established
by the Russian Government.
• PhosAgro Group’s educational
project, ProAgro Lectorium,
won the international BRICS
Solutions Awards.
• The Company won CFO Russia’s
Best Electronic Workflow
in Russia and the CIS 2024
competition.
• PhosAgro Group won
the Exporter of the Year
award, established
by the Russian
Government
in the Northwestern
Federal District.
15
14
Company profile
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Corporate governance
Share capital
Appendices
INVESTMENT CASE
and credit ratings
PhosAgro Group’s position on global DAP production cost curve,
production, kt
Source: CRU Industry Cost Curves 2024
PhosAgro Group’s position on global urea production cost curve,
production, kt
Source: CRU Industry Cost Curves 2024
10,000
20,000
30,000
60,000
20,000
100,000
180,000
140,000
Share of PhosAgro Group’s supplies in key sales markets5,
estimates, %
Country
2022
2023
2024
Russia (share of total supplies)
45
54
58
Europe
24
17
15
Latin America, excl. Brazil
12
19
21
Africa
15
13
17
India
38
18
20
Brazil
12
20
23
2.
1.
UNIQUE RESOURCE BASE
AND SECTOR-LEADING MARGINS
A GLOBAL PRODUCER OF ECO-FRIENDLY
PHOSPHATE-BASED FERTILIZERS1
The largest global
producer of high-grade
phosphate rock with
a P2O5 content of 39%
(according to IFA).
The largest European producer
of phosphate-based fertilizers
(by total production capacity
for DAP/MAP/NP/NPK/NPS
according to CRU).
A key contributor to the safety
of the Company’s products
is the magmatic origin
of the phosphate rock mined
on the Kola Peninsula,
as it naturally limits the content
of harmful substances and
ensures higher fertilizer
quality4.
Wide range of ready-to-use
solutions for farmers.
A leading supplier of mineral
fertilizers in the domestic
market.
One of the highest margins
in the phosphate segment.
The only producer of feed-
grade monocalcium phosphate
(MCP) in Russia and one
of the leading producers
in Europe in this segment,
as well as Russia’s only
producer of nepheline
concentrate.
1 Certified for environmental compliance under the Vitality Leaf international standard.
2 By total production capacity for DAP/MAP/NP/NPK/NPS.
3 Monoammonium phosphate / diammonium phosphate.
4 Apatit is included in the Unified State Register
of Manufacturers of Agricultural Products, Food,
Industrial and Other Products with Improved
Characteristics.
5 Share of compound and complex fertilizers in the
region’s total imports.
PhosAgro
is Europe’s
largest producer
of phosphate
fertilizers2 and
a Top 5 global
producer of DAP/
MAP3 by capacity.
Customer focus.
A netback-
driven sales
model with
a global
presence.
Certification
for compliance
with key national
and international
standards testifies
to the highest
quality of our
products and
management
efficiency
throughout their
life cycle.
Our production
technologies
meet the highest
global standards.
P
30,974
15
17
16
Company profile
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Appendices
For more information on ESG certification
of the Group’s products, see the Customers
and Product Management section
Investment projects may get a go-ahead subject to their high IRR3 (in most cases 20%+),
compliance with the BAT and sustainability criteria along with the CAPEX/EBITDA target,
and a comfortable net debt / EBITDA covenant headroom.
Breakdown of CAPEX, RUB bln
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 Technical
Standards Association (ABNT2).
1 The audit was conducted by experts from the accredited certification body,
Ecological Union (registration number RA.RU.11NV64), from 29 September
to 13 November 2024.
2 Associação Brasileira de Normas Técnicas.
3 Internal rate of return.
RUB
75.2
bln
RUB
64.2
bln
RUB
63.0
bln
RUB
60.3
bln
RUB
53.2
bln
RUB
53.4
bln
RUB
62.9
bln
RUB
46.8
bln
2.2
3.3
2.5
2.8
27.0
31.3
33.9
34.5
24.1
Investment projects
Maintenance
Non-industrial
construction
Total excluding
capitalised repairs
Total including
capitalised repairs
18.8
26.5
25.6
2022 actual
2023 actual
2024 actual
2025 plan
3.
4.
ECO-FRIENDLY FERTILIZERS
SOUND CAPITAL ALLOCATION IN HIGHLY EFFECTIVE
INVESTMENT PROJECTS
PhosAgro Group made a Green
Label environmental claim
asserting that the product
is free from dangerous
cadmium concentrations
harmful to human health
and soils.
The Company successfully
completed voluntary Vitality
Leaf certification.
In 2024, Apatit
confirmed its right to use
the internationally recognised
Vitality Leaf label for mineral
fertilizers by successfully
completing a recertification
audit1.
PhosAgro has the right to mark
its products with a special
Green One label. In September
2024, all manufactured
agrochemicals underwent
recertification.
p.
100–105
19
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Performance review
Corporate governance
Share capital
Appendices
5.
WELL-BALANCED CORPORATE GOVERNANCE
Our corporate governance practices undergo an annual evaluation and
demonstrate a high level of compliance with the recommendations
of the Corporate Governance Code recommended by the Bank of Russia.
Throughout 2024, 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.
PhosAgro actively engages with
Russian rating agencies to secure
independent assessments, credit
ratings, and ESG ratings.
5
independent directors
on the Board of Directors
3
Board committees meeting
on a regular basis
87%
adherence to the Corporate
Governance Code principles
50%
Consistently strong positions in ESG ratings and indices
ESG rating/index
2022
2023
2024
(С to ААА scale)
А
AA↑
ААА↑
Responsibility and
Transparency index
(С to А scale)
A
A
A
Sustainable Development
Vector index
(С to А scale)
A
A
A
Expert RA
ESG transparency
(0.00 to 2.00 scale)
1.95↑
1.95
2.00↑
ESG rating/index
2022
2023
2024
National Rating Agency
(Group 5 to Group 1 scale with
scores from 0 to 1)
Group 2,
0.74
Group 1↑,
0.83
Group 1,
0.85
Donors Forum
Russian Leaders in Corporate
Philanthropy
(C to А+ scale)
А+↑
А+
А+
(Level 3 to Level 1 scale)
Level 1
Level 1
Level 1
Best Employers
(Bronze to Platinum scale)
Gold
Platinum ↑
Platinum
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.
A distinctive feature of the business model
is our emphasis on sustainable development
and the integration of green chemistry
principles, enabling us to develop innovative and
environmentally friendly solutions for agriculture.
This requires flexible 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 position among the most responsible
producers, while also ensuring improved quality1
and eco-friendliness of its fertilizers. We leverage
our competitive advantages and seek to meet
the highest operational standards throughout our
product lifecycle1.
For more information on the Company’s
Strategy to 2025 see
p.
48
STABLE CREDIT RATINGS
!
The Company’s bonds
are included in Level 1
quotation list of the Moscow
Exchange.
These were assigned credit
ratings of ruААА and ААА(RU),
respectively, from the Expert RA
and ACRA agencies.
BUSINESS
model
1 Apatit is included in the Unified State Register of Manufacturers of Agricultural Products, Food, Industrial and Other
Products with Improved Characteristics.
21
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Company profile
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Corporate governance
Share capital
Appendices
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
For more information,
see page 54, 92
For more information,
see page 56, 92
For more information,
see page 56, 92
For more information,
see page 92
For more information,
see page 86
For more information,
see page 58
VALUE CREATION CYCLE
GRI 2-6
Wide product range
58
RUB 2,635.3 mln
investments in R&D activities
USD 5.4 mln
Investments in a soil protection project1
Unique resource base in terms
of size and quality
Self-sufficiency in feedstock
100%
in phosphate
rock
93%
in sulphuric acid
74%
in ammonia
37%
in amonium
sulphate
37 distribution centres
in Russian regions
PROCESS AND PRODUCT
DEVELOPMENT
MINERAL
EXTRACTION
FERTILIZER
PRODUCTION
Our mining division
in the Murmansk region extracts
high-quality apatite-nepheline
ore for further production
of phosphate fertilizers.
Our Cherepovets, Volkhov, and
Balakovo facilities produce
our entire range of phosphate
and nitrogen-based fertilizers
as well as complex ones. With
a strong vertical integration,
we ensure maximum economic
efficiency of production while
maintaining full control over
product quality.
WE SECURE
MARKETING
AND SALES
The value creation cycle
at PhosAgro Group starts with
a thorough analysis of consumer
preferences and market trends.
Drawing upon analytical insights
and the latest research findings
in green chemistry, our R&D
centres in Cherepovets and
Moscow develop highly effective
and eco-friendly fertilizer brands
that enjoy steady demand from
consumers.
PhosAgro Group’s sales network
is the largest in the Russian
agrochemical industry. We have
a presence in all key agricultural
regions across the country and
globally and are committed
to becoming even closer to our
consumers. The digitisation of our
sales platforms and customer
services is rapidly advancing.
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
Supplies to
74 regions
in Russia
Ca. 200 thousand ha
of soils surveyed by agronomic experts
in 31 regions of six federal districts
The audience constantly using
the Company’s digital platforms
and services exceeded
157,000 people
Farmers made more than
300,000
calculations
(including partner integrations)
using Agro Calculator
Ore mined
41 mtpa
TRANSPORTATION
AND LOGISTICS
Thanks to our high-capacity railway
infrastructure, extensive own
fleet of railcars, and modern port
terminals, our transportation and
logistics services ensure reliable
supplies of PhosAgro Group’s
products to our customers in Russia
and worldwide. Effective inventory
management enables us to take
into account seasonal demand
for fertilizers, avoiding shortages
during peak periods and optimising
transport flows
Results of
>500
agronomic trials published
on the Company’s website
FERTILIZER APPLICATION
AND SERVICE
We use a service model where
customers receive a combination
of a fertilizer and our agronomic
expertise, all available in a digital
environment. Our industry-leading
agronomic service provides training,
agronomic advice, and support
to our customers. Customer
feedback serves as a valuable source
of information for improving existing
products and developing new ones.
agrochemical
brands, including all
types of fertilizers
and animal feed
Target
2.4, 12.4
Target
3.9, 6.3, 8.3, 12.4, 15.1
Target
9.1
Target
12.4
Target
2.4
Target
13.1, 13.2, 17.16, 17.17
Port transhipment capacity
9 mtpa
1 The Company’s total contribution since
collaboration with FAO began in 2018.
23
22
Company profile
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Performance review
Corporate governance
Share capital
Appendices
Our high-quality service for farmers, including
agronomic advice, coupled with the eco-
sustainable properties of our fertilizers, ensure
the strong performance of our products.
FERTILIZER APPLICATION AND
SERVICE
PhosAgro Group’s mineral fertilizers
and feed phosphates are in demand
by farmers in Russia and approximately
100 countries worldwide, thanks
to their eco-friendly properties
and our efficient logistics.
GRI 2-1, 2-6
GEOGRAPHICAL
footprint
For more information on our
geographical footprint, visit
the Company’s website
Kirovsk
Volkhov
Cherepovets
Moscow
Balakovo
74
regions of operation
22 regional offices
34 distribution centres
Murmansk
Ust-Luga (Leningrad region)
St Petersburg
Kotka (Finland)
Novorossiysk
Tuapse
The Kirovsk branch of Apatit produces
high-grade phosphate rock and nepheline
concentrate.
The Cherepovets site of Apatit produces phosphate fertilizers,
phosphoric and sulphuric acids, as well as NPK, ammonia,
and ammonium nitrate.
The Balakovo branch of Apatit produces phosphate fertilizers and
feed phosphates.
The Volkhov branch of Apatit produces mineral fertilizers.
With its railway infrastructure,
an in-house fleet of railcars, and a ca.
8 mtpa port transhipment capacity
across key export routes, the Company
can ensure reliable and timely product
supplies to customers both in Russia and
abroad.
MINERAL EXTRACTION
FERTILIZER PRODUCTION
TRANSPORTATION
AND LOGISTICS
PRODUCT AND SERVICE DEVELOPMENT
8.0 mt
of agrochemicals,
including
nitrogen fertilizers...........................2.5
phosphate fertilizers......................5.5
other products....................................0.1
1.3 mt
of agrochemicals,
including:
phosphate fertilizers........................1.1
sodium tripolyphosphate...........0.1
other products....................................0.1
2.5 mt
of agrochemicals,
including:
phosphate fertilizers.......................1.9
MCP...........................................................0.4
nitrogen fertilizers............................0.1
other products....................................0.1
VOLKHOV
BRANCH
OF APATIT
KIROVSK BRANCH
OF APATIT
Nepheline
concentrate
Apatite
concentrate
Apatite concentrate
Apatite concentrate
Apatite concentrate
Nepheline concentrate
BALAKOVO
BRANCH
OF APATIT
CHEREPOVETS
SITE (APATIT)
Apatite concentrate
PhosAgro Group’s network of sales offices covers
the majority of key agricultural regions in Russia
and the CIS, making its quality products available
to farmers in the local priority market and across
the globe.
MARKETING AND SALES
41 mtpa
of ore mined
Total
11.8 mt
For more information on the impact of risks and
opportunities on the business model and value
chain of the Company, see the Additional
Information section.
p.
366
PhosAgro Group runs
the Samoilov Scientific Research
Institute for Fertilizers and
Insectofungicides (NIUIF). We also
operate our Moscow-based
Innovations Centre that develops
advanced plant nutrition systems
in cooperation with leading R&D
centres.
25
24
Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
STAKEHOLDER
engagement
Stakeholder
engagement is the core
principle of our
business.
This principle
is implemented
through full, high-
quality, and timely
reporting. We maintain
a close dialogue with our
stakeholders to take into
account their interests
and expectations in our
operations.
For the third year running,
we won the Grand Prix
in the Moscow Exchange
Annual Reports competition
among companies with
capitalisation of over
RUB 200 bln, which proves
our commitment to high
standards of non-financial
disclosure. We highly value
the acknowledgement from
the investment community
and remain dedicated
to upholding best ESG
practices and the highest
standards of corporate
reporting going forward.
Alexander
Sharabaika
Chairman of the Strategy
and Sustainable
Development
Committee of the Board
of Directors
APPROACH TO STAKEHOLDER ENGAGEMENT;
IDENTIFYING AND SELECTING STAKEHOLDERS
GRI 3-1, 2-29, SASB EM-MM-210a.3
PhosAgro’s framework for stakeholder
engagement management covers
all tiers of corporate governance.
Our stakeholders include persons
or organisations that, in line with
the double materiality principle,
may be affected by our activities
or can influence our operations and
2 Economic value retained for 2023 was negative since the Company distributed to its shareholders both
profits for the reporting year and a portion of profits retained from the previous years.
Our key stakeholders
We disclose approaches to engaging
each stakeholder group in the relevant
sections of this Report.
Generated and distributed direct economic value1, RUB mln
GRI 201-1
Item
Stakeholder
2022
2023
2024
Direct economic value generated
573,966
444,682
514,323
Revenue from sales
Wide range of stakeholders
551,037
421,690
492,450
Revenue from
other sales
18,490
18,614
15,239
Revenue
from financial
investments
4,439
4,378
6,634
Economic value distributed
(520,253)
(478,495)
(485,616)
ability to create value, implement
the strategy, and achieve goals.
Furthermore, we seek to build partner
relationships with government
agencies in all countries where
we operate and ensure that we strictly
comply with all applicable regulatory
requirements.
Item
Stakeholder
2022
2023
2024
Operating expenses, including:
(320,792)
(291,455)
(358,193)
• wages and
other payments
to employees
Suppliers and contractors
Employees and trade unions
Wide range of stakeholders
(51,567)
(47,425)
(62,518)
• social expenses
(9,314)
(7,720)
(11,189)
Payments to providers of capital, including:
(146,669)
(139,733)
(86,457)
• declared
dividends
Investment and finance
community
(142,111)
(132,221)
(71,484)
• interest expense
(4,558)
(7,512)
(14,973)
Tax expenses and other payments to government,
including:
(52,792)
(47,307)
(40,966)
• income tax
expense
Regional and local
governments, and local
communities
(41,465)
(34,527)
(25,477)
Retained/(redistributed)2 economic value
53,713
(33,813)
28,707
RESEARCH
AND EDUCATION
COMMUNITY
EMPLOYEES
AND TRADE UNIONS
INTERNATIONAL
ORGANISATIONS
BUSINESS
AND INDUSTRY
ASSOCIATIONS
CONSUMERS
REGIONAL AND LOCAL
GOVERNMENTS, AND
LOCAL COMMUNITIES
SUPPLIERS AND
CONTRACTORS
INVESTMENT
AND FINANCE
COMMUNITY,
including investors,
shareholders, and
rating agencies
1 Calculated on accrual basis using data from
the Group’s IFRS consolidated financial
statements.
You can send your comments
and proposals regarding
corporate reporting
to esg@phosagro.ru
or ir@phosagro.ru.
Feedback from shareholders
and other stakeholders helps
PhosAgro improve reporting
transparency and quality.
FEEDBACK
For more information,
see page 109, 169, 185, 227
For more information,
see page 133, 169
For more information,
see page 109, 185
For more information,
see page 310–311
For more information,
see page 96, 185
For more information,
see page 109
For more information,
see page 96, 185
For more information,
see page 109, 147, 169, 185
27
26
Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
p. 190
p. 200
p. 205
p. 208
p. 212
p. 216
GRI
201,
305
GRI
302
GRI
306
GRI
305
GRI
303
GRI
101,
304
Climate
Energy efficiency
Waste
Air
Water
Biodiversity
Research and education
Personnel development and human rights
Employment
Training and education
Industrial safety
Contributing to local communities
p. 106
p. 142, 290
p. 150
p. 154
p. 164
p. 220, 226
GRI 202, 402, 405
GRI
401
GRI
404
GRI
403
GRI
203,
413
Economic impact
Tax policy
Product management
Corporate governance principles
Anti-corruption
Anti-competitive behaviour
Information security
Supply chain
Supplier ESG evaluation
Share capital
p. 26, 192, 220, 230
p. 83
p. 100
p. 248
p. 292
p. 299
p. 284
p. 128
p. 139
p. 300
GRI 201, 202, 203
GRI
207
GRI
417
GRI
205
GRI
206
GRI
410
GRI
204
GRI
308,
414
GRI
201
ENVIRONMENTAL CATEGORY
SOCIAL CATEGORY
GOVERNANCE CATEGORY
MATERIAL TOPICS
GRI 2-14, 2-29, 3-1, 3-2
PhosAgro looked into the topics
outlined in each GRI Topic Standard
and identified a list of 22 topics that
hold most importance for its key
stakeholders and the Company itself.
This selection was made taking into
account the position of the investment
and finance community, including
rating agencies, as well as feedback
from key stakeholders, along
with comments received during
the professional and public assurance
of the 2022 and 2023 non-financial
reporting. These topics were included
in this Report for disclosure.
In 2024, the number of disclosed
material topics (22) and GRI indicators
remained unchanged compared
to 2022 and 2023.
Selection of material topics:
approaches and steps in 2024
From 2021 to 2023
2024
• Listing the aspects
of the Company’s
operations.
• Assessing the impact
these aspects have
on the environment and society
along the value chain.
• Analysing how these aspects
are linked with priority UN
SDGs.
• Linking aspects with strategic
risks and opportunities.
• Reviewing and
confirming the
continued relevance of
the list of material topics
identified in 2023 (list 1).
• Surveying stakeholders
and identifying
the materiality of these
aspects as regards
the Company’s impact
on stakeholders and their
interests.
• Taking into account our
experts’ opinion and ESG
ratings.
• Assessing financial
materiality: identifying
the potential impact
of Strategy risks
on the Company’s operations
(weight – 80%) and
an international ESG rating
(weight – 20%) (list 2).
• Aligning 22 material
topics with GRI topics.
• Matching the two lists
and identifying priority
topics with the highest
impact and risks (double
materiality).
2
2
1
1
3
3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
S
E
G
Double materiality assessment
Low
Low
Medium
Medium
High
High
Impact materiality
Financial materiality
1
4
5
3
2
1
2
Priority 1
Priority 2
4
3
5
17
19
16
15
13
22
20
14
21
18
3
1
4
2
6
5
7
8
12
11
10
9
For more information on our approach to identifying material
topics and their impact on the value chain, see the Additional
Information section
p.
355-362
29
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Company profile
Strategic report
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Share capital
Appendices
2024 highlights
p.
50–51
Growing the future
The Company achieved
the key goals of its Strategy
to 2025 ahead of schedule,
while significantly exceeding
most targets. The 2024 results
unlock new opportunities
for PhosAgro’s development
and enable the pursuit
of its most ambitious
objectives.
of mineral fertilizers and
feed phosphates produced
in 2024 (target under our
Strategy to 2025 achieved)
11.5 MT
Ammonium sulphate [Lat. Ammonii sulfas
H(NH4PO3)nOH]
STRATEGIC
REPORT
32 Chairman’s statement
35 CEO’s statement
38 Business environment
44 Market overview
48 Strategy
66 Strategic risks
30
31
Company profile
Strategic report
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Corporate governance
Share capital
Appendices
Chairman’s statement
In 2024, our Company celebrated its 23rd anniversary –
a remarkable milestone marking both past achievements and
future opportunities for new successes, breakthroughs, and records.
These will be built on our experience, market expertise, refined
business model, and, most importantly, the concerted efforts of our
professional team.
Since its founding, PhosAgro Group has demonstrated consistent
growth in production and financial performance while integrating
principles of sustainability and social responsibility into daily
operations. The year 2024 proved no exception: we continued our
progressive growth, maintaining our priority focus on what matters
most – our people.
!
In 2024, PhosAgro Group
achieved several key objectives
of its Strategy to 2025 ahead of
schedule. Which results stand
out as particularly significant
for the Company?
In business, as in life, achieving
goals requires effort and systematic
action. Since 2019, when our
updated strategy was first unveiled,
we have steadily advanced toward
our strategic targets. During this
period, the Company invested
over RUB 330 bln in development,
substantially exceeding the target.
In 2024 alone, a record RUB 75 bln
was allocated to the Company’s
growth. As a result, we achieved some
of the key objectives of our Strategy
to 2025 ahead of plan.
As a vertically integrated business,
PhosAgro prioritises the development
of all segments. Since 2019, we have
been increasing feedstock self-
sufficiency: our ammonia production
in 2024 reached nearly 2 mt, and
sulphuric acid output exceeded 8.5 mt
(Strategy to 2025 targets: 1.9 mt and
ca. 7.8 mt respectively).
In 2024, we achieved a record 11.8 mt
output of agrochemical products,
including 11.5 mt of mineral fertilizers
and feed phosphates – another
early fulfilment of our Strategy
to 2025 goals.
PhosAgro-Region, Russia’s largest
mineral fertilizer distribution network1
with 11 regional companies serving
thousands of farms across Russia –
from Kaliningrad to Petropavlovsk-
Kamchatsky – and neighbouring
countries, achieved new milestones
in 2024. Deliveries to Russian farmers
rose to 3.34 mt. Storage capacity
for mineral fertilizers surpassed 1
mt (Strategy to 2025 target: 650 kt),
liquid complex fertilizer storage
capacity reached over 100 kt (Strategy
to 2025 target: 62 kt), and the number
of distribution centres in Russia grew
to 37 (Strategy to 2025 target: 35).
At every stage of the value chain –
from mining key feedstock to sales –
PhosAgro Group reaches new heights
and exceeds its plans.
Our integrated employee satisfaction
and loyalty index is steadily increasing.
Measured through external evaluation
in 2024, it rose to 76 p.p. (Strategy
to 2025 target: 65 p.p.).
We are now crafting a new strategy
through 2030, guided by ambitious
goals, the strengths of our business
model, and our team’s strong
expertise. Yet our core mission
remains unchanged: sustainable
business growth for the benefit of all
stakeholders.
!
In the reporting year, the
Company launched a new
million-tonne plant in Volkhov
into commercial operation.
How will this mega-project
impact future results?
Victor Cherepov
Chairman of the Board of Directors of PJSC PhosAgro
Dear shareholders
The Volkhov plant’s commissioning
is a cornerstone of our strategy.
We are confident this facility will set
the standard as a technological leader
in the chemical industry for decades.
The Volkhov site now produces high-
demand monoammonium phosphate
(MAP) fertilizers and has begun
manufacturing water-soluble MAP,
an essential input for greenhouse
farming, with its 2024 output
reaching 46 kt.
Significantly, the plant was built
by Russian contractors using world-
class domestic technologies.
It generated 700 skilled jobs, with
half represented by engineering roles
offering competitive salaries.
This plant is the successful
culmination of PhosAgro’s decade-
long investment cycle.
!
Does PhosAgro remain
committed to ESG principles
amidst a strong focus on
strategic goals and business
initiatives?
Absolutely. ESG principles are deeply
embedded in our business model:
we supply eco-friendly fertilizers2
to farmers in Russia and worldwide,
supporting global food security. Both
our industry and PhosAgro exist
for people. As the owner of major
mining and chemical facilities, one
of Russia’s largest employers, and
the backbone employer in cities like
Apatity and Kirovsk, we carry a special
responsibility to our diverse range
of stakeholders.
Nearly half of our Strategy to 2025
goals directly relate to sustainability:
environmental efficiency, climate
impact reduction, health and safety,
and social responsibility. Since
adopting our Strategy in 2019, we have
made significant progress across all
these areas.
When implementing investment
projects to upgrade and expand our
capacities, we consistently utilise
the best available technologies
that combine operational efficiency
1 By warehouse storage capacity among the distribution networks of mineral fertilizer producers
with membership in the Russian Association of Fertilizer Producers (RAFP, 2024).
2 Certified for environmental compliance under the Vitality Leaf international standard.
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with environmental responsibility.
For instance, at the Volkhov plant
mentioned earlier, we implemented
a process steam utilisation
system, which now fulfils over 80%
of the facility’s electricity requirements
through self-generation.
Sustainable development and our
business are inseparable. Our steady
production growth does not conflict
with our ESG commitments; rather,
it empowers us to continuously
expand support for employees,
as well as social and charitable
projects both our operating regions
and on a national scale.
Our social and charitable project
funding exceeded a record
RUB 14 bln in 2024, up 20% from
2023. This includes expanded support
for the Educated and Healthy
Children of Russia (DROZD) initiative
promoting youth sports; Our Favourite
Cities programme to improve urban
infrastructure in our regions; and
our education support programme
along the school–college–university–
enterprise pathway.
Our educational programmes
represent investments in both our
business future and the industry’s
long-term development. By training
talent from school level onwards,
we build a robust and steadily growing
pipeline of qualified graduates joining
PhosAgro Group. Over the past
decade, we have welcomed more than
3,500 engineers and skilled workers
trained through the Company’s
support initiatives.
Employee welfare and community
care have remained central to our
corporate ethos since inception.
Average wages at PhosAgro rose
by 67% over the past three years,
reaching RUB 183,700 in 2024 –
substantially outpacing inflation.
While we build a sustainable business
for people rather than accolades,
external recognition remains
gratifying.
In February 2024, PhosAgro secured
victory in most categories and received
the Grade 1 Responsible Business
Leadership national award established
by order of the Russian President.
In March 2025, the Company once
more won this award with the highest
final score.
In October 2024, RAEX, Russia’s
leading non-credit rating agency,
upgraded PhosAgro’s ESG rating
from AA to AAA – the highest possible
assessment. We became the first
company to achieve this top-tier rating
and led RAEX’s ESG ranking across
both chemical industry players and all
80 rated firms. Additionally, PhosAgro
is the leader of the MOEX-RAEX ESG
Balanced Index, with a maximum 7.7%
weighting.
I was personally honoured to receive
the Best Independent Director
award in the Top 1,000 Russian
managers ranking. Having served
as an independent director for over
a decade, I was elected Chairman
of PhosAgro’s Board in 2022 and
subsequently re-elected in 2023 and
2024. I am deeply grateful to the team
for their trust and for the collaborative
work we continue to undertake
for the benefit of PhosAgro Group and
the broader market.
!
How do you envision the
Company in 2025?
I am confident we will continue
on a trajectory of growth, further
enhancing production and financial
performance while simultaneously
expanding support for social and
charitable initiatives. PhosAgro
Group will continue to invest
in strengthening vertical integration,
particularly in key feedstock
inputs production, to maintain
a leading position among the most
competitive phosphate fertilizer
producers. I am optimistic about
the Company’s outlook, particularly
given the increasing global emphasis
on sustainable agricultural practices
and public health. Our eco-friendly
fertilizers are vital to both producing
high-quality crops and ensuring global
food security by effectively enriching
soils with essential nutrients.
My heartfelt thanks to everyone
contributing to our success:
employees, partners, and contractors
who have been instrumental
in implementing investment
programmes and achieving strategic
goals. I extend particular gratitude
to our shareholders and customers
– your trust and support inspire
PhosAgro to reach new heights.
CEO’s statement
The Company once again demonstrated the effectiveness of
its business model, the professionalism of its team, its deep market
expertise, and the ability to deliver strong results while adapting to
shifting market conditions.
This success stems from our unwavering commitment to sustainability
and responsible business practices, deeply embedded in our goals and
daily operations. While we update strategies and modernise production,
one constant remains: PhosAgro Group ensures farmers in our core
Russian market and globally have access to high-quality, eco-friendly
fertilizers1.
2024 was a year of sustainable growth in PhosAgro Group’s
operational and financial performance, laying a solid
foundation for further expansion.
Mikhail Rybnikov
Chief Executive Officer of PJSC PhosAgro
1 Certified for environmental compliance under the Vitality Leaf
international standard.
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!
In 2024, the Company
celebrated its 23rd anniversary,
but the year also marked a
significant milestone: the 95th
anniversary of the Kirovsk site.
What achievements define
this legacy?
The Kirovsk branch of Apatit operates
at one of the world’s largest and
richest deposits, enabling us to mine
high1 phosphate rock – the starting
point of our value chain. Today, the
Kirovsk branch comprises three
mines and two beneficiation plants,
maintaining its status as a global
leader in high-grade phosphate
rock production and Russia’s only
nepheline concentrate producer.
In its 95th anniversary year, the Kirovsk
branch produced its 750-millionth
tonne of phosphate rock. To better
illustrate this volume: it equals
10,715,000 railcars – enough to circle
the Earth’s equator over three times.
In 2024, the Kirovsky mine also
produced its 2.2-billionth tonne of
apatite-nepheline ore, the raw material
for eco-sustainable phosphate
fertilizers.
Vertical integration remains a
cornerstone of our competitive edge,
which is why we pay meticulous
attention to the production site where
our value chain begins.
!
2024 also marked the 50th
anniversary of sulphuric
acid production at the
Cherepovets site. Did this
milestone coincide with new
achievements?
The Cherepovets site of Apatit
achieved a remarkable landmark by
producing its 105-millionth tonne of
sulfuric acid in 2024, setting a new
record in a year that also celebrated
55 years of the chemical industry
development in the Vologda region.
Sustained growth in sulphuric
acid output – a strategically critical
product – is essential for expanding
phosphate rock processing and
phosphate fertilizer production.
In 2024, the Cherepovets site
produced 5.5 mt of phosphate-based
fertilizers, a 6% increase y-o-y. This
growth was driven, in particular, by
effective programmes to build new
and upgrade existing sulphuric acid
capacities along with the generations-
long dedication and expertise of our
sulphuric acid production team.
!
PhosAgro actively upgraded
and expanded capacities in
2024. What were the key
outcomes?
We made substantial progress
in 2024. In Cherepovets and Volkhov,
productivity upgrades to wet-process
phosphoric acid production systems
increased phosphate rock processing
by 400 ktpa.
The Volkhov site launched a ground-
breaking new mega-plant, boosting
its annual fertilizer production
by over 4x compared to 2019 (to more
than 1 mtpa) and phosphate rock
processing by over 5x (to more than
1.5 mtpa).
The Balakovo site began producing
diammonium phosphate (DAP),
expanded feed-grade monocalcium
phosphate (MCP) output by 100 ktpa,
and reached full capacity of nearly
3 mtpa at its SK-20 sulphuric acid unit
(an increase of 350 ktpa, or 13%).
The Balakovo site is also implementing
Phase 3 of its expansion, introducing
flexible MAP/DAP/NPS/NPK fertilizer
production and expanding output.
Upon completion, annual fertilizer
production will grow by almost 1 mtpa
to 3.5 mtpa.
Other key ongoing projects
at the Balakovo site include
the continued construction
of the SK-20/1 sulphuric acid unit
(launching in H2 2025 to add another
750 ktpa of sulphuric acid), the setting
up of a phosphogypsum conversion
facility, and the development
of in-house power generation (also set
for completion in 2025).
At the Kirovsk branch, the +10 m level
at the Kirovsky mine commenced
operations, and underground mining
began within the Gakman block
of the Yukspor deposit. Construction
of a new mine for the Rasvumchorr
Plateau deposit (RUB 38 bln capital
investment) and development
of the Vostochny mine (RUB 33 bln
investment through 2035)
are underway.
Our consistent efforts to expand
production, tap new deposits, and
upgrade key capacities underpin
the Company’s business resilience
and growth. These projects not
only boost output but also create
a platform for future expansion
and efficiency gains. In the coming
years, PhosAgro Group will continue
strategic development, strengthening
its industry position and offering
cutting-edge fertilizer and mineral
solutions.
!
What were the Company’s
financial highlights in 2024?
2024 results reflected multiple external
and internal factors, notably higher
production volumes and selling prices.
Our management team’s coordinated
efforts ensured effective cost control
and increased sales of high-margin
products.
We closed 2024 with revenue
exceeding RUB 507 bln, EBITDA of
over RUB 177 bln, adjusted net profit
above RUB 100 bln, and comfortable
net debt of RUB 325.4 bln (net debt /
EBITDA: 1.84x). Our EBITDA margin
stood at 34.9%, with free cash flow
reaching RUB 29 bln.
In 2025, we will prioritise debt
reduction and repayment over
refinancing, despite accessible debt
markets, to reduce servicing costs and
strengthen our position as a highly
rated, reliable borrower.
!
2024 was a year of milestones
for PhosAgro Group. What are
its 2025 prospects?
2025 promises to be equally
successful. Early signs are
encouraging: January saw historic
monthly production and shipment
records.
For the first time ever, the Company
produced over 1 mt of mineral
fertilizers, feed phosphates, and
sodium tripolyphosphate in a single
month. January also set two shipment
records: 1.07 mt of agrochemicals and
1.01 mt of apatite concentrate.
We are confident that 2024’s
achievements will propel future
successes. I extend my gratitude to the
entire PhosAgro Group team for their
professionalism and dedication, and to
our partners, clients, contractors, and
suppliers for their invaluable role in
these outstanding results.
1 Apatit is included in the
Unified State Register of
Manufacturers of Agricultural
Products, Food, Industrial
and Other Products with
Improved Characteristics.
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MARCH
APRIL
MAY
JUNE
Business environment
JANUARY
FEBRUARY
In January, Russian producers
increased fertilizer output by
20% compared to the same
period last year
The total volume of fertilizer
production in terms of 100%
nutrients reached 2.4 mt.
Nitrogen-based fertilizer
production rose by 3.7%, and
ammonia production increased
by 5.2%.
USA reduced tariffs on Russian
phosphate-based fertilizers
The U.S. Department
of Commerce lowered
countervailing duties
on phosphate-based fertilizers
imported from Russia in 2021,
establishing a new duty rate
of 14.3% for PhosAgro, 23.77%
for EuroChem, and 16.3%
for other Russian exporters,
which apply retroactively.
These new rates took effect
on 29 January.
Vladimir Putin set task to
ensure 25% growth of domestic
agricultural production by 2030
The head of state announced
plans to increase agricultural
production in Russia by at least
25% by 2030 compared to 2021,
with exports growing 1.5 times.
He emphasised that Russia
is not only fully self-sufficient
in food but also is a global
leader in the wheat market,
ranking among the top 20 food-
exporting nations.
EU significantly increased
fertilizer imports from Russia
and Belarus
In February, the EU purchased
a record 521.3 kt of Russian
fertilizers (worth EUR 167 mln),
the highest since 2022. As a
result, up to 60% of all potash
fertilizer imports into the EU now
come from Russia and Belarus,
while Russian nitrogen-based
fertilizers account for 31% of total
EU imports.
Russian fertilizer supplies to
USA hit an annual high
In March 2024, the USA
purchased USD 174 mln worth
of fertilizers from Russia, the
highest since February 2023.
Key imported fertilizers included
potash, phosphate, and nitrogen-
based products.
Russian government extends
fertilizer export quotas
Quotas for mineral fertilizers
were extended for a period from
1 June to 30 November 2024.
The total export quota volume
exceeded 19.7 mt, including
over 12.4 mt for nitrogen-based
fertilizers and approximately
7.3 mt for complex fertilizers.
Subsequently, the quotas were
extended further until the end
of May 2025.
Russia’s Ministry of Agriculture
reported that the country had
achieved food security in most
areas
According to Oksana Lut, First
Deputy Agriculture Minister,
Russian producers only need
to catch up in the production
of milk, fruit, and berries
to achieve complete food
security. She also noted
agricultural production in Russia
had grown by 87% since 2000.
Russia extends domestic price
caps on mineral fertilizers
Prices for fertilizers remained
capped at the 2022 level
through the end of 2024. This
decision followed the Russian
government’s decree to extend
fertilizer export quotas.
At the end of the year, the price
freeze was additionally extended
into 2025.
Fertilizer producers fully met
Russian farmers’ demand for
mineral fertilizers for spring
fieldwork
From January to May 2024,
domestic producers supplied
3.3 mt of fertilizers in terms
of 100% nutrients, exceeding
the required volume of 3.2 mt.
Russia and UN reaffirmed the
importance of securing grain
and fertilizer exports
This was announced following
a meeting between Rebeca
Grynspan, Secretary-General
of the UN Conference on Trade
and Development (UNCTAD),
and Sergey Vershinin, Russia’s
Deputy Foreign Minister.
Both sides reaffirmed their
commitment to ensuring
the implementation
of the relevant Russia-UN
memorandum, considering
Russia’s main share in the world
export of grain and fertilizers.
BRICS Conference on Food
Security and Sustainable
Agriculture held an industry
session under auspices of
RAFP1
Participants discussed key
initiatives, including creation
of a grain exchange, boosting
trade, reducing carbon footprint,
and strengthening agricultural
cooperation. Plans to increase
fertilizer and food supplies,
particularly to Global South
countries, were also addressed.
1 Russian Association of Fertilizer
Producers.
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JULY
AUGUST
SEPTEMBER
OCTOBER
Russia’s State Duma passed
a law increasing the mineral
extraction tax (MET), among other
things on feedstock for fertilizer
production
The State Duma approved
in its third reading a law
overhauling the tax system, which
raised the MET on diamonds, gold,
iron ore, coal, and mineral fertilizer
feedstock starting 1 January
2025. The updated amendments
eliminated fixed rent coefficients
for potash and phosphate ores
and introduced a MET formula tied
to export benchmarks (potash:
FOB Baltic/Black Sea; phosphates:
FOB Morocco). The formula also
accounts for the ore grade.
Roundtable on food security
for foreign journalists was held
in Moscow
Rossotrudnichestvo organised
a roundtable at the Russian
Chamber of Commerce and
Industry for foreign journalists
on food security. Representatives
of the RAFP informed leading
African media outlets about
the growth of Russian fertilizer
supplies to Africa, highlighting
a more than twofold increase
over the past five years.
Fertilizer producers already
fulfilled nearly 80% of Russian
farmers’ mineral fertilizer
requirements for 2024
Russian fertilizer producers had
already supplied nearly 80%
of the mineral fertilizers needed
by the country’s agricultural
sector for the entire 2024. Since
the start of the year, the sector
purchased 4.24 mt of minerals
in terms of 100% nutrients, with
the total annual requirement
standing at 5.45 mt.
Deputy Prime Minister Dmitry
Patrushev issued directives
on mineral fertilizer market
development
An extended meeting chaired
by Dmitry Patrushev discussed
addressing growing domestic
demand for mineral fertilizers
and regulating their distribution.
The Ministry of Agriculture
and the Ministry of Industry
and Trade were instructed
to approve a Strategic Plan
by the end of October to boost
regional procurement of mineral
fertilizers until 2030. The Ministry
of Transport and Russian
Railways were tasked with
ensuring uninterrupted supplies
to farmers, while the Federal
Antimonopoly Service and
the Ministry of Industry and
Trade were directed to explore
permanently prioritising fertilizer
shipments.
Russian government announced
it would not extend fertilizer
export duties
Deputy Finance Minister
Alexey Sazanov stated that
the government would abolish
the “exchange-rate” export duty
on fertilizers starting 1 January 2025,
due to the increase in the mineral
extraction tax.
Russian government increased
the mineral fertilizer export quota
The quota for the export of complex
mineral fertilizers was raised to 7.6
mt. The decision aims to allow
producers to export unsold surplus
finished products, as domestic
market demand has been fully met.
RAFP reported 90% fulfilment
of domestic farmers’ 2024
fertilizer demand
As of the first half of October,
Russian producers met over
90% of the agricultural sector’s
annual fertilizer demand,
according to Andrey Guryev,
head of the Russian Association
of Fertilizer Producers. He
highlighted that large-scale
investments exceeding RUB 1.8 trln
over the past decade had driven
the dynamic growth of Russia’s
fertilizer market.
BRICS countries supported
the initiative to set up a grain
exchange
This was outlined in the final
declaration of the 16th BRICS
Summit in Kazan. Member states
also committed to promoting
trade in agricultural products
and fertilizers under WTO rules
and minimising disruptions
to the supplies of food and inputs
for agricultural production.
Mineral fertilizer trading volume
exceeds 100 kt
Trading volume in the Mineral Raw
Materials and Chemical Products
section of the St Petersburg
International Mercantile Exchange
(SPIMEX) surpassed 100 kt from
January to July 2024 – more than
double the same period in 2023.
In monetary terms, trading reached
RUB 3.1 bln, a 170% increase
compared to 2023.
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DECEMBER
JANUARY 2025
Russia set a new record
for fertilizer production
Fertilizer production in Russia
surpassed 63 mt in 2024, a 7%
increase y-o-y. Exports hit a record
40 mt, while domestic supplies
reached 5.5 mt (in terms of 100%
nutrients).
Russian fertilizer producers fully
met annual domestic demand
ahead of schedule
By early December 2024, Russian
producers fully met the agricultural
sector’s mineral fertilizer demand
for the year and began deliveries
for spring fieldwork. According
to the Ministry of Agriculture, Russian
farmers purchased 5.5 mt of mineral
fertilizers.
Brazil, India, and China became
the top buyers of Russian
fertilizers in 2024
Total imports of Russian fertilizers
by these countries reached
USD 6.2 bln, with Brazil leading
at USD 3.4 bln, followed by India
(USD 1.5 bln) and China (USD 1.3 bln).
EU imposed tariffs on agricultural
imports from Russia
The European Commission
approved tariffs on select
agricultural products and nitrogen-
based fertilizers from Russia
and Belarus. Once enacted, all
Russian agricultural imports would
be subject to EU tariffs.
NOVEMBER
USA reduced import duties
for PhosAgro Group
The U.S. Department
of Commerce finalised its decision
following an administrative
review to retroactively lower
the countervailing duty
on phosphate fertilizer imports from
PhosAgro Group in 2022 – from
an initially proposed 28.5% to 18.2%.
Russia achieved full grain self-
sufficiency in 2024 due to strong
harvest
Russian Agriculture Minister
Oksana Lut announced this
at a government meeting. She
noted that the grain quality
of the new harvest exceeded last
year’s, with approximately one-third
of wheat classified as grades 1 and 3.
1 The 29th Conference of the
Parties to the UN Framework
Convention on Climate Change.
COP291 panel session on food
security was held
Andrey Guryev, President
of the Russian Association
of Fertilizer Producers, and
Andrey Razin, Deputy Minister
of Agriculture, participated
in the event. Attendees emphasised
the importance of international
cooperation, agricultural innovation,
and sustainable agribusiness
practices to ensure global food
security amid climate change.
Russia’s role as a major producer
and exporter of agricultural
products and fertilizers was also
highlighted.
Russian government reduced export
duties on mineral fertilizers through
the end of 2024
The decision applied to nitrogen,
phosphate, potash, and complex
fertilizers. Export duties were capped
at 7%, depending on the rouble
exchange rate, to alleviate financial
pressure on the industry and support
producers.
Regulatory authority over mineral
fertilizers transferred from the
Ministry of Industry and Trade
to the Ministry of Agriculture
This move aims to meet the targets
set for the agricultural sector
in the coming years, including
a significant boost in agricultural
output and improved fertilizer
accessibility for farmers.
With domestic demand fully
met, the focus will now shift
to expanding exports.
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1 Hereinafter based on data by the International Fertilizer Association (IFA), CRU, Argusmedia, and Profercy consulting agencies; expert estimates of industry
analysts in Russian and international media.
Market overview
The world’s mineral fertilizer
market responds to dynamic
shifts in global politics and
economics, with market
conditions determined by the
interplay of international and
regional factors, industry trends,
supply chain stability, and other
key elements.
In 2024, fertilizer demand
demonstrated a strong recovery,
bolstered by improved availability and
normalised trade flows. This positive
trend persisted despite ongoing and
tightening sanctions, protectionist
measures by several global exporters,
and various disruptions to production
and trade.
The global mineral fertilizer industry
and related sectors face significant
headwinds, including rising
operational costs, higher interest
rates, and working capital constraints.
These financial pressures are delaying
investment projects across numerous
countries, creating additional
challenges for industry development.
Despite these obstacles and
geopolitical tensions, most
governments maintained strong
support for the agricultural
sector throughout 2024, helping
maintain supply chains stability and
contributing to fertilizer demand
recovery. In the reporting year, price
volatility in mineral fertilizer markets
decreased compared to previous
periods, positively influencing crop
planning and supporting overall
fertilizer consumption.
Fluctuations in fertilizer affordability
were a key factor in the initial decline
and subsequent recovery of global
consumption. From mid-2021 to
mid-2022, fertilizer prices outpaced
agricultural prices, reducing
affordability and curtailing purchases.
This dynamic reversed between
mid-2022 and mid-2023, when fertilizer
prices declined more rapidly than crop
prices, enhancing affordability and
stimulating consumption.
From mid-2023 to late 2024,
affordability fluctuations moderated.
However, distinct differences between
nutrients became apparent. Potash
and nitrogen-based fertilizers
remained more attractive with respect
to crops (potash for oilseeds and
nitrogen for rice) while phosphate
fertilizer affordability remained lower,
partly due to price recovery.
In 2024, fertilizer consumption
continued to recover across all key
regions. The strongest growth rates
(up to 5+% y-o-y) were observed
in former Soviet Union countries
(excluding Ukraine and the Baltic
states), the Middle East (primarily
driven by Turkey), and Europe, where
a low base effect followed three years
of sustained decline. Africa, North
and South America, along with Asian
countries recorded more moderate
growth rates of 2–3%.
Estimate of changes in consumption by region in 2024,
mt nutrient
Consumption growth in 2024, mt nutrient
PHOSPHATE ROCK AND PHOSPHATE-BASED FERTILIZER MARKET
According to preliminary estimates,
global production of phosphate rock in
2024 stood at 209 mt, which is 1.5 mt,
or 2%, above the 2023 level. Production
growth in North Africa, predominantly
Morocco, amounted to 2.5 mt, but was
offset by a production decrease in the
Middle East (–0.8 mt). Other regions
maintained production at 2023 levels
or experienced slight declines.
The global phosphate rock market’s
price environment features a widening
price gap between high and low
nutrient content (Р2О5) grades.
This reflects the growing deficit of
high-grade materials, which drives
elevated prices for these resources
while low-grade rock prices remain
comparatively modest.
According to preliminary estimates,
global production of complex
phosphate-based fertilizers (DAP
+ MAP) in 2024 reached 61.2 mt, a
0.8 mt (–1%) decline compared to
2021. Increased production in North
Africa and Russia (totalling 1.0 mt)
was offset by reduced output due to
Global fertilizer consumption estimates,
mt nutrient
Nitrogen-based
fertilizers
2024
2023
113.8
46.7
112,0
199.2
2022
2021
2020
45,9
36,6
108,6
44,2
35,0
110,8
49,1
39,6
111,2
48,2
39,9
39.4
199.5
187.8
194.6
200.0
Phosphate-based
fertilizers
Potash fertilizers
N
Europe
CIS
Africa
North America
Latin America
Middle East
South Asia
East Asia
Oceania
0.2 0.3
0.4
0.2 0.2
0.1 0.1
0.1 0.2 0.2
0.2
0.6
0.1 0.1 0.1
0.3
0.4
0.1
0.6
1.5
-0.1 -0.1
0.2
0.7
0.8
0.2
0.5
0.8
0.2
0.7
2.0
-0.2
5%
8%
3%
2%
2%
5%
2%
3%
0%
P₂О₅
K₂О
Preliminary estimates by consulting
agencies and industry analysts1
suggest that in 2024, global
consumption of mineral fertilizes
stood at 200.0 mt nutrient, up 2.8%, or
5.4 mt nutrient, against 2023.
For instance, consumption of
nitrogen-based fertilizers was up
by 1.8 mt of N (+1.6%) to 113.8 mt,
while for phosphate fertilizers, it
increased by 0.8 mt of Р2О5 (+1.8%)
to 46.7 mt. The most robust growth
was projected for potash fertilizer
consumption, which climbed by 2.8 mt
of К2О (+7.7%) to reach 39.4 mt.
Phosphate rock prices, FOB Morocco, USD/t
100
130
160
190
220
250
30–31% Р₂О₅, USD/t, FOB, Morocco
32–33% Р₂О₅, USD/t, FOB, Morocco
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
2025
2024
process-related stoppages in North
America and the Middle East, export
restrictions in China, and weakening
domestic market conditions in India.
44
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Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
Global DAP/MAP prices, FOB Baltic, USD/t
NITROGEN-BASED FERTILIZER MARKET
The global nitrogen-based fertilizer
market demonstrated high price
volatility driven by seasonal factors
and significant trade flow shifts across
Asia. This volatility stemmed primarily
from China’s near-complete export
withdrawal as it redirected resources
to domestic markets. The average
urea price settled at USD 304/t (FOB
Baltic), slightly below the 2023 level
of USD 310/t. However, the spread
between minimum and maximum
quotes remained substantial
throughout the year, fluctuating
at USD 100–150/t.
Preliminary estimates indicate a 3.6%,
or 6.8 mt, growth in global urea
production in 2024, reaching a total
of 194 mt. China and Russia experienced
the strongest production growth,
leveraging increased utilisation of new
capacities commissioned in 2022–2023.
European domestic urea production
also expanded, benefiting from more
favourable gas market pricing.
Global urea trade volume was almost
flat compared to 2023 and amounted
to 54.5 mt. China’s dramatic pullback
from the export market (–4.0 mt)
was counterbalanced by increased
exports from Russia and the CIS
(+1.5 mt in total), the Middle East
(+1.8 mt), and growth in Western
European and Southeast Asian intra-
regional trade.
Global urea prices, FOB Baltic, USD/t
400
450
500
550
600
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
2025
2024
Global trade in DAP/MAP in 2024 was
29.4 mt, down by 0.4 mt, or 1%, y-o-
y. India recorded a significant drop in
DAP/MAP imports (–2.0 mt) on the back
of reduced subsidies for phosphate
and potash fertilizers, following a
period of record-high government
support in previous years. Brazil’s
MAP imports went down by 1.0 mt to
4.4 mt, driven by MAP’s relatively low
affordability compared to alternative
phosphate-based fertilizers such as
superphosphates and NPK. Meanwhile,
Europe, Southeast Asia, and Australia
increased their phosphate-based
fertilizer imports in the reporting year.
In 2024, the supply-demand balance
strongly influenced phosphate-
based fertilizer market pricing. Prices
began climbing in 2H 2024, propelled
by Chinese export restrictions and
reduced output from a number of key
manufacturers, partly due to technical
issues. The 2024 average DAP/MAP
price was USD 558/t (FOB Baltic) as
compared to USD 521/t in 2023.
POTASH FERTILIZER MARKET
The global potash fertilizer market
exhibited stable production and
export volumes in 2024, following a
nearly complete recovery in 2H 2023.
Relatively low potash fertilizer prices
enhanced their affordability compared
to the key agricultural products,
spurring significant import growth
across major markets including Brazil,
the USA, China, and Southeast Asia.
According to preliminary estimates,
global trade volumes for potassium
chloride amounted to 58.8 mt in 2024,
which is 4.5 mt, or 8%, more than
in 2023. Global potassium chloride
production hit a record high of 72.3 mt
in the reporting year, surpassing last
year’s output by 4.2 mt.
Global potassium chloride prices, standard, FOB Baltic, USD/t
150
175
200
225
250
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
2025
2024
200
250
300
350
400
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
2025
2024
Top 5 global phosphate fertilizer and feed phosphate production capacities in 20241
Top 5 global phosphate rock production capacities in 20241
1
1
17.1
mt
47.5
mt
13.9
mt
20.6
mt
8.9
mt
11.4
mt
7.7
mt
11.3
mt
7.0
mt
10.3
mt
2
2
3
3
4
4
5
5
OCP
OCP
MOSAIC
MOSAIC
MAADEN/SABIC
JPMC
YARA
MAADEN/SABIC
PHOSAGRO GROUP
PHOSAGRO GROUP
Morocco
Morocco
USA/Brazil
USA/Brazil
Russia
Russia
Saudi Arabia
Jordan
Norway
Saudi Arabia
1 Sources: CRU Group, publicly available company data.
46
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Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
Strategy
STRATEGY TO 2025
!
In 2024, PhosAgro
continued to be guided
by the Strategy to 2025
approved by the Company’s
Board of Directors in March
2019. Most of the strategic
goals remained relevant
in the reporting year, with
several key targets for 2025
achieved ahead of schedule.
In the reporting year, the Company’s
management presented proposals
to the Board of Directors with respect
to PhosAgro Group’s Development
Strategy to 2030, including key
targets and main avenues for growth.
The draft Strategy is expected
to be submitted to the Board
of Directors for review in 2Q 2025,
with the new Strategy to 2030
to be approved by the end of the year.
•
Expansion of the foothold in
the priority domestic market
and premium markets
•
Higher share of premium
fertilizer brands in the sales
mix
•
Capacity expansion
•
Higher self-sufficiency
in feedstock
•
Stronger operational
efficiency
The Company maintains a high level
of feedstock self-sufficiency. In 2024,
self-sufficiency in sulphuric acid
came in at 93% (vs the target of 91%
set in the Strategy to 2025).
Phosphate rock production increased
to 11.4 mt (vs the target of 11.1 mt set
in the Strategy to 2025).
The total storage capacity
of PhosAgro-Region, Russia’s largest
distribution network, exceeded 1 mt
in 2024 (vs the target of 650 kt set
in the Strategy to 2025).
In 2024, the Company expanded
its storage capacity for liquid complex
fertilizers to 101 kt (vs the target
of 62 kt set in the Strategy to 2025).
The number of the Company’s
distribution centres in Russia reached
37 in 2024 (vs the target of 35 set
in the Strategy to 2025).
The employee satisfaction and loyalty
index continues to grow, as it reached
76 p.p. in 2024 (vs the target of 65 p.p.
set in the Strategy to 2025) based
on Company-wide surveys.
G
S
E
Health and safety goals
Zero workplace incidents
and injuries
The Strategy to 2025 deeply integrates sustainability principles
across all its initiatives
•
Alignment of production
and sales
•
Reduction of per unit
transportation costs
•
Development of port
infrastructure
Increasing sales
efficiency
Boosting logistics
efficiency
Operational efficiency
and production growth
Environmental and climate
goals
Reduced emissions and water
use, increased waste recycling
Corporate social responsibility
goals
Contribution to the UN
Sustainable Development Goals
48
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Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
Progress against the Strategy to 2025 goals in 2024
Expansion of the foothold in premium markets
(own products: mineral fertilizers and feed-grade MCP)
2025 targets
2024 status (progress)
INCREASING SALES EFFICIENCY
BOOSTING LOGISTICS EFFICIENCY
Sales volume: Russia and the CIS
up 11% y-o-y
Target 2025
3.7 mt
Status 2024
3.1 mt
Sales volume: South
and North America
up 5% y-o-y
Target 2025
3.5 mt
Status 2024
4.0 mt
Target 2025
35
Status 2024
37
up 9% y-o-y
Number of distribution
and logistics centres:
Total storage capacity:
up 15% y-o-y
Target 2025
> 650 kt
Status 2024
1 mt
Liquid complex fertilizer storage
capacity:
up 19% y-o-y
Target 2025
62 kt
Status 2024
101 kt
Capacity expansion
Stronger operating efficiency
OPERATIONAL EFFICIENCY AND PRODUCTION GROWTH
Phosphate rock processing1:
Target 2025
8.4 mt
Status 2024
9.1 mt
up 4% y-o-y
Maintaining high feedstock
self-efficiency
Ammonia:
Target 2025
76%
Status 2024
74%
down 1% y-o-y
Sulphuric acid:
Target 2025
91%
Status 2024
93%
up 2% y-o-y
The actual effect of 2024 approved by project steering
committees:
>RUB 1.4 bln
Phosphate rock production:
up 7% y-o-y
Target 2025
11.1 mt
Status 2024
11.4 mt
up 4% y-o-y
Mineral fertilizer and feed
phosphate production1:
Target 2025
11.5 mt
Status 2024
11.5 mt
Ammonium sulphate:
Target 2025
75%
Status 2024
37%2
down 20% y-o-y
Higher share of premium
fertilizer brands (own
products: mineral fertilizers
and feed-grade MCP)
Share of complex fertilizers
(NPK/NPS/PKS) in total
output:
Target 2025
43.0% (5.0 mt)
Status 2024
33.3% (3.9 mt)
up 10% y-o-y
Reduction of transportation
costs
• Increased reliance on
corporate rolling stock
• Use of innovative railcar fleet
Development of port
infrastructure
up 12.5% y-o-y
Efficient mix of port capacities
in terms of costs and supply
reliability:
Target 2025
8.0 mt
Status 2024
9.0 mt
Alignment of production
and sales
up 4% y-o-y
Freight turnover by rail at key
production sites:
Target 2025
28.3 mtpa
Status 2024
27.5 mtpa
1 There was an error in the 2023 Annual Report on pages 52–53. The correct text should read:
“Phosphate rock processing: 2025 target — 8.4 mt”; Mineral fertilizer and feed phosphate production
target for 2025 – 11.5 mt.
2 Failure to meet the self-sufficiency target for ammonium sulphate is due to the fact that part of the
ammonium sulphate output (142 kt in 2024) 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.
50
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Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
SOCIAL RESPONSIBILITY
Aggregate satisfaction
and loyalty index:
Employee satisfaction
up +4% y-o-y
Target 2025
65 p.p.
Status 2024
76 p.p.
Fostering a safety culture and adhering to the highest occupational health and safety standards
HEALTH AND SAFETY
down 11% y-o-y
Occupational injuries:
Target 2025
Zero fatalities
Status 2024
No fatalities in 2024
Target 2025
Zero accidents
Status 2024
No accidents in 2024
Reduced Scope 1 GHG
emissions
CLIMATE IMPACT
Target 2028
4.2 mt of СО2-eq.
(2028)
Status 2024
4.7 mt of СО2-eq.
down 1.3% y-o-y
Gross GHG emissions (Scope 1):
ENVIRONMENTAL EFFICIENCY
Reduced emissions
Per unit emissions:
down 10.9% y-o-y
Target 2025
0.8 kg/t2
Status 2024
0.712 kg/t2
Reduced impact on water
bodies
Per unit waste water
discharge1:
down 3.7% y-o-y
Target 2025
1.7 m3/t
Status 2024
1.8 m3/t
Reduced waste generation
Share of recycled and disposed
of hazard class 1–4 waste:
up 0.13% y-o-y
Target 2025
40.0%
Status 2024
40.3%
Target 2025
annual reduction by 10%
Status 2024
LTIFR of 0.54
1 Excluding mining and pit waters.
2 Per tonne of finished and semi-finished products.
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Corporate governance
Share capital
Appendices
Expanding the foothold in premium markets
Sales of mineral fertilizers and feed phosphates (own products), kt
!
Targets 2.4, 12.4, 15.1.
Promoting and raising
awareness about best farming
practices and developing the
service model.
We remain strategically committed
to our home market, the core one,
which translated into a 9.6% increase
in domestic sales during the reporting
year, and a 10.6% increase if the CIS
market is included. In 2024, this
increase was the main driver behind
the 4.2% rise in total fertilizer sales,
including feed phosphates.
INCREASING SALES EFFICIENCY
The strategic sales goals of PhosAgro
Group include expanding its foothold
in premium markets and increasing
the share of premium product sales.
The Group is successfully pursuing
these goals in the evolving market
landscape both by actively engaging
in high-margin markets and
by developing and promoting new,
primarily complex grades of mineral
fertilizers.
These goals are interrelated,
as different geographical markets
have historically shown a preference
for specific fertilizer grades.
For instance, in South America, one
of our key regions, there is a strong
focus on dual fertilizer grades which
enable farmers to create individual
blends tailored to their crops, soils,
climate, and other agricultural factors.
Conversely, in Russia, the Company’s
primary market, consumers have
historically preferred compound and
complex fertilizer grades that are ready
for application and do not require
blending.
In line with this strategy, there
was a significant increase in shipments
to both the Russian and Brazilian
markets during the reporting year,
which largely drove accelerated
growth in the sales of complex and
compound fertilizer grades.
Progress towards our targets
2022 (actual)
2023 (actual)
2024 (actual)
2024 (actual) / 2023
(actual), %
Strategy to 2025
Distribution centres
33
34
37
8.8
35
Total storage capacity, kt
821
868
1,000
15.2
>650
Liquid complex fertilizer storage
capacity, kt
74
85
101
8.8
62
From 2018 to 2024, the Company
invested RUB 5.4 bln in developing
PhosAgro-Region, its own distribution
network operating in Russia and across
the CIS. By early 2025, the number
of the network’s distribution centres
reached 37, while the total storage
capacity came in at 1 mt, including
101 kt for the transhipment of liquid
mineral fertilizers (a new record
for the country). Since the launch
of the strategic initiatives, the storage
capacity for this type of fertilizers
has increased ninefold. In 2025,
PhosAgro Group will focus on further
expanding its distribution network,
upgrading the logistics infrastructure,
and launching new logistics centres
in Russia’s key agricultural regions.
In 2024, as part of its service model
development, the Company continued
to offer Russian farmers the service
of chemical soil analysis. During
the year, our agronomic experts
surveyed more than 100,000 ha,
marking an almost twofold increase
compared to the previous year. Since
the launch of the initiative, we have
surveyed nearly 200,000 ha across 31
regions in six federal districts. In 2025,
the Company plans to further enhance
its service business by offering Russian
farmers an expanded set of agronomic
and process solutions to improve
agricultural productivity.
In 2024, we continued to actively
develop new business areas –
the supply of crop protection products
and seeds of Russian breeders. Thus,
the Company’s customers gained
access to a comprehensive service,
including agrochemical analysis,
hybrid selection, development of plant
nutrition and protection systems,
product supply, and additional services.
Notably, in the very first year, sales
of domestically bred seeds reached
35,000 seed units.
Higher share of premium
fertilizer brands in the sales
mix
In the reporting year, the market
witnessed accelerated growth
in the sales of complex triple fertilizers,
with their share in the Company’s
product portfolio rising to 33.3%
in 2024 due to strong demand
in the key domestic market.
The flexibility of our production
assets enables us to respond swiftly
to changes in the market demand
while maintaining full capacity
utilisation.
Mineral fertilizer and feed phosphate sales mix, kt
2022 (actual)
2023 (actual)
2024 (actual)
2024 (actual) / 2023
(actual), %
Strategy to 2025
Urea/AN/AS
2,551
2,561
2,500
–2.4
2,515
MCP
350
377
399
6.0
472
APP
112
198
187
–5.4
213
NPK/PK/PKS
3,670
3,500
3,859
10.2
4,980
MAP/DAP
4,272
4,504
4,660
3.5
3,270
Total
10,954
11,139
11,604
4.2
11,450
Share of complex fertilizers,%
33.5
31.4
33.3
43.4
2,571
2,239
2,651
Russia and the CIS
Europe
Americas
Other
Markets identified as premium upon adoption of the Strategy to 2025
2022 (actual)
2023 (actual)
3,493
2,801
2,137
3,811
2,390
2024 (actual)
3,097
2,298
3,964
2,245
+10.6%
+7.5%
+4.0%
-6.1%
11,604
total
Strategy to 2025
3,700
3,100
3,500
1,255
11,555
total
11,139
total
10,954
total
+4,2%
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Company profile
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Performance review
Corporate governance
Share capital
Appendices
!
Targets 2.4, 12.4, 13.1, 13.2.
Expanding sales of eco-
friendly mineral fertilizers and
developing innovative plant
nutrition systems, including
those that limit greenhouse
gas emissions and help
adapt to climate change.
The Company continues to develop and
actively market new fertilizer grades
in an effort to meet the existing and
potential needs of farmers in Russia and
abroad to the fullest extent possible,
while taking into account the specifics
of crops, soil types, and farming
conditions.
PhosAgro Group is actively developing
the following premium products:
• fertilizers with micronutrients
are considered one of the most
potent ways to combat malnutrition
and reduce nutrient deficiencies,
as the micronutrients can
be accumulated by plants and thus
benefit the human diet;
• biological and biomineral fertilizers
are expected to become one
of the most effective solutions
to ensure global food security
by boosting agrochemical efficiency
of plant nutrition systems without
damaging the ecosystem.
BOOSTING LOGISTICS EFFICIENCY
The most part of the Company’s
freight (ca. 99%) is transported
via the Russian Railways network.
In 2024, freight turnover totalled
30.5 mt, up 1.0% against 2023, with
further growth to 31.0 mt expected
in 2025.
Rail shipments are also a focus area
of key initiatives aimed at improving
the reliability of product deliveries
and reducing transportation costs.
Ensuring a secure supply is a top
priority for us.
Reduction of transportation
costs
!
Target 12.4. Managing
chemicals and wastes wisely
throughout their life cycle,
including transportation.
As part of implementing the Strategy
to 2025, we have significantly
increased reliance on our own rolling
stock, buying mostly innovative
railcars with a higher capacity
and longer run life. Increased reliance
on PhosAgro’s own rolling stock
means:
• enhanced safety of operation and
more reliable supplies, as PhosAgro
Group’s production and logistics
processes are less dependent
on third-party services;
• higher cost efficiency, as corporate
railcars are cheaper in use than
third-party rolling stock;
• a positive environmental
effect, as the use of innovative
rolling stock with higher cargo
tonnage per railcar and train
reduces the negative impact
on the environment per tonne
of cargo.
Other areas of focus to ensure
transportation security and optimise
transportation costs in 2024 included:
• developing mutually beneficial
terms and entering into agreements
with Russian Railways to co-finance
the development of transport
infrastructure at railway stations
adjacent to the Company’s
production sites (Volkhov branch –
final stage);
• securing tariff preferences
for the shipment of liquid sulphur
and sulphuric acid;
• verifying the possibility
of receiving subsidies for export
transportation of industrial
products by rail in the period
from 2022 to 2024 according
to Decree of the Government
of Russia No. 1347 On State Support
of Russian Industrial Organisations
in Order to Compensate Expenses
for Transportation of Industrial
Products dated 28 July 2022.
Alignment of production
and sales
!
Target 9.1. Developing
rail infrastructure and
contributing to the
development of local
communities through
our value chain.
Corporate rail infrastructure
throughput capacity at the Company’s
key production facilities is critical
to efficient transportation. Thanks
to our comprehensive investment
programmes in the 2019–2025
strategic cycle, we have been able
to expand the throughput capacity
of our key production facilities’ railway
infrastructure to or above target levels.
In 2022, the Company launched
a rolling stock renewal programme
to 2034. As part of the programme,
we plan to procure 392 ore
dump cars and 11 electric
locomotives for the Kirovsk branch,
as well as 23 shunting locomotives
for the Cherepovets facility and
the Balakovo branch.
In 2024, we purchased three shunting
locomotives, two electric locomotives,
and 29 dump cars.
The construction of a container yard
and the installation of the required
equipment at the phosphate facility
in Cherepovets are underway, which
will allow for a significant increase
in future container shipments. As part
of a four-party agreement between
Apatit, Severstal, Russian Railways
and Lengiprotrans, we are modelling
the operation of Cherepovets
railway hub, with a list of measures
to be drawn up to handle both
current and future freight turnover.
These two projects are expected
to be completed in 2025.
In 2024, as part of a comprehensive
Volkhov branch development
project, we ramped up infrastructure
throughput at the Volkhov site
to boost freight turnover. Under
the second stage of the project,
we reached an agreement with
Russian Railways to co-finance
the construction of public
infrastructure.
We continued to work on a project
for expanding the transport
infrastructure at the Balakovo branch
to support an increase in finished
product shipments and acceptance
of new raw materials – potassium
chloride and ammonium sulphate.
Progress towards our targets, mtpa
Freight turnover of chemical facilities’ railway infrastructure
2022 (actual)
2023 (actual)
2024 (actual)
Strategy to 2025
Cherepovets site
15.4
15.3
16.1
16.5
Balakovo branch
6.7
7.2
6.9
8.0
Volkhov branch
3.8
4.0
4.5
3.8
Total
25.9
26.5
27.5
28.3
56
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Performance review
Corporate governance
Share capital
Appendices
OPERATIONAL EFFICIENCY AND PRODUCTION GROWTH
Capacity expansion
The long-term growth in demand
for mineral fertilizers has been steady.
In order to respond to stronger
demand, PhosAgro focuses on
expanding capacities to produce
its key products, which is one
of our key strategic goals for 2025.
!
Target 12.4. Making eco-
sustainable products in
line with sustainability
requirements and maximising
the use of production waste in
further processes.
Delivery on production targets, mt
2022 (actual)
2023 (actual)
2024 (plan)
2024 (actual)
Strategy to 2025
Production of nitrogen-based fertilizers
2.5
2.6
2.5
2.6
2.5
Production of phosphate fertilizers
and feed-grade MCP
8.2
8.4
8.7
8.9
8.9
Production of phosphate rock
10.9
10.7
11.1
11.4
11.1
In-house processing of phosphate rock
8.7
9.1
9.3
9.5
8.4
Development of port
infrastructure
!
Target 9.1. Enhancing port
network, along with offering
employment opportunities,
developing infrastructure
and implementing social
investment programmes.
In addition to developing logistics
and sales infrastructure across
Russia, we are working to increase
the reliability and efficiency
of our exports by both reducing
transshipment costs and providing
state-of-the-art transshipment
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.
The Company has already exceeded
its target transshipment capacity.
Given our plans to expand production
capacities, the work is underway
to consider the measures that would
increase the available transshipment
capacity to 10 mtpa.
The ports key to PhosAgro Group’s
operations are located in the North-
West of Russia. These include
European Sulphur Terminal,
Petrolesport, First Container
Terminal, and St Petersburg Port
in the Leningrad region and
St Petersburg, and Murmansk Bulk
Terminal in Murmansk. The Company
also uses a terminal at the Hamina
Kotka port in Finland. We rely
on specialised terminals and their
equipment designed to mitigate
the environmental impact.
1 Wet-process phosphoric acid.
2 Vacuum-evaporating installation.
Implementation of high-priority projects
Ramping up phosphate rock
processing at the hemihydrate
process WPA production
facility (WPA-1) (Cherepovets)
Project schedule
2021–2024
Project schedule
2024–2025
Targets
Targets
Status
As part of the project, we completed the technical upgrade of the mineral
salts unit, with new, more powerful equipment installed. In July 2024,
the unit achieved its target capacity.
Status
In 2024, we commenced the project, with key equipment contracted
for the main activities. In 2025, we plan to upgrade VEI-1 and VEI-5,
replacing heating chambers and axial pumps with more powerful units.
Additionally, there are plans to replace the buckets of carousel vacuum filter
No. 3 with new reinforced ones and to substitute the N120AS and N220AS
circulators with their upgraded versions.
Increasing feed-grade MCP
output (Balakovo)
Project schedule
2023–2024
Investments
RUB 2.3 bln
Targets
Status
In October 2024, we completed the upgrade of a phosphoric acid
production plant (WPAP-450), achieving the target phosphate rock
production capacity of 185 tonnes per hour.
Ramping up phosphate rock
processing (Volkhov)
Investments
RUB 3.3 bln
Investments
RUB 1.8 bln
Project schedule
2023–2024
Investments
RUB 4.4 bln
Targets
Status
In September 2024, we completed the installation of new belt filters
in sections 5.55/5.58, with the filters commissioned on schedule. We also
completed the assembly of the new VEI2-64, with the installation reaching
its design capacity. At section 5.58, the absorption system was upgraded
during the section’s shutdown for an overhaul. As a result of this project,
WPA-2 and WPA-3 reached the target phosphate rock production
capacity of 141 tonnes per hour.
Ramping up phosphate rock
processing at the dihydrate
process WPA1 production
facilities (WPA-2 and WPA-3)
(Cherepovets)
IRR 24 %
+218 ktpa
in phosphate rock
processing
+173 ktpa
in DAP
+153 ktpa
in phosphate rock
processing
+107 ktpa
in MAP
IRR of 22 %
+100 ktpa
in MCP
+40 ktpa
in phosphate rock
processing
+98 ktpa
in NPK 15-15-15
IRR of 24%
IRR of 25 %
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Maintaining high feedstock
self-sufficiency
Feedstock self-sufficiency
Strong vertical integration is
PhosAgro’s major competitive
advantage. With our phosphate
rock reserves covering 100% of the
Company’s needs for raw materials
required for phosphate mineral
fertilizers, we are ramping up the
production of other key types of
feedstock, thus increasing our
feedstock security and cutting costs.
Self-sufficiency in key types of feedstock
2022
(actual)
2023
(actual)
2024
(plan)
2024
(actual)
2025
(plan)
Strategy to
2025
Ammonia, %
76.0
75.0
74.0
74.0
71.4
76.0
• Production, mt
2.0
2.0
2.0
2.0
2.0
1.9
• Consumption, mt
2.6
2.6
2.7
2.7
2.8
2.5
Sulphuric acid, %
92.0
92.0
95.0
93.4
97.0
91.0
• Production, mt
7.9
8.1
8.7
8.5
9.4
7.8
• Consumption, mt
8.6
8.8
9.1
9.1
9.7
8.6
Ammonium sulphate1, %
51.0
46.0
49.0
37.0
57.0
75.0
• Production, mt
0.3
0.3
0.3
0.2
0.3
0.7
• Consumption, mt
0.6
0.6
0.6
0.5
0.5
0.9
1 Failure to meet the self-sufficiency target for ammonium sulphate is due to the fact that part of the ammonium sulphate output (142 kt in 2024) 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.
2 The minimum internal rate of return is reviewed from time to time, including by considering the current key interest rate set by the Bank of Russia.
3 CAPEX excluding capitalised repairs.
4 Including the following projects: increase in the feed-grade MCP output in Balakovo, and ramp-up of phosphate rock processing at the hemihydrate process
WPA production facility (WPA-1) in Cherepovets.
Capital investments
Progress against 2025 strategic goals
of capacity expansion and feedstock
self-sufficiency comes on the back of
effective planning and the successful
implementation of the Company’s
investment programme.
!
Minimum project IRR: approved
discount rate +2% (at least 15%2)
!
Annual CAPEX budget of up to
50% of EBITDA
!
More efficient working capital
management
Breakdown of CAPEX, RUB bln
2022 (actual)
2023 (actual)
2024 (plan)
2024 (actual)
Investment projects
24.1
18.8
25.6
26.5
Maintenance
27.0
31.3
34.5
33.9
Non-industrial construction
2.2
3.3
2.8
2.5
Total excluding capitalised repairs
53.2
53.4
62.9
62.9
Total including capitalised repairs
63.0
64.2
75.2
75.2
A DISCIPLINED APPROACH TO CAPEX
CAPEX funding in 2022–2024
2022 (actual)
2023 (actual)
2024 (actual)
CAPEX3, RUB bln
53.2
53.4
62.9
Adjusted EBITDA, RUB bln
266.9
168.4
170.6
CAPEX / adjusted EBITDA, %
20
32
37
Details of key investment projects in 2024, RUB bln
Phase 3 of developing the Balakovo branch of Apatit (implementing a flexible MAP, DAP, NPK, and NPS production
scheme)
8.4
Stripping and mine development at the Rasvumchorr Plateau (Kirovsk)
4.3
Ramp-up of phosphate rock processing at the dihydrate process WPA production facilities (WPA-2 and WPA-3)
(Cherepovets)
3.4
Development of the +10 m level at the Kirovsky mine (Kirovsk)
2.5
Development of the Vostochny mine, a block pillar under the Saami pit, and the Gakman block, and development of
ANBP-3 plant (Kirovsk)
2.5
Ramp-up of phosphate rock processing (Volkhov)
1.6
Construction of a phosphogypsum conversion unit (Balakovo)
1.3
Other investment projects4
2.5
Total for investment projects
26.5
Project schedule
2024–2025
Investments
RUB 6.2 bln
Targets
Status
Procurement of materials and
equipment is in progress, with
contractors selected for key types
of work. Earthworks and foundation
dismantling, as well as installation of
metal structures and core equipment
are ongoing.
Upgrade of the sulphuric
acid production and
infrastructure facilities to
increase the capacity by 93
tonnes of monohydrate per
hour (SK-20/1) (Balakovo)
Project schedule
2021–2024
Investments
RUB 6.7 bln
Targets
Status
In March 2024, the system reached its
target capacity of 135 tonnes per hour.
Upgrade of the SK-20
technological system with
replacement of the contact
process unit (Balakovo)
+350 ktpa
in sulphuric acid production
+750 ktpa
in sulphuric acid production
Implementation of high-priority projects
100% self-sufficiency in sulphuric
acid at the Balakovo site
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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.
!
Target 8.3. Maintaining and
developing existing operations
and creating innovative
facilities.
In the reporting year, the Group’s
entities successfully implemented
Russian software, including as part
of import substitution efforts:
!
The Mobile Voice Patrol project
powered by an AI technology
for speech recognition and
generation. The project
was partially funded
by the government (49.2%
of the total budget).
!
Introduction
of a manufacturing execution
system (automated enterprise
management system)
for a major holding company
in the chemical sector, the first
implementation of Russian-
made software of this kind
in the industry.
The project was included in the list
of high-priority projects under
the IT import substitution programme
of the Russian Government and
co-funded by the state.
!
In 2024, PhosAgro successfully
completed the project
for improving the performance
of Apatit’s business units and
branches in 2024.
Project schedule
January–December
2024
Economic effect in 2024
RUB 1,425 mln
Production site
Key project initiatives
• Higher volumes of phosphate
rock processing and MAP
production
• Reduction in end-to-end
phosphate rock losses
• Improvement in phosphate rock
recovery rates
Cherepovets, Kirovsk,
Balakovo, Volkhov
Project schedule
October 2023 –
November 2024
Project schedule
December 2022 –
February 2025
Production site
Production site
Key project initiatives
• Introduction of a voice data
input solution for registering
the processes and results
of technical and commercial
rolling stock inspections
• Standardisation and expansion
of recorded rolling stock failure
parameters
Key project initiatives
• Import substitution of foreign
software for managing
and controlling production
processes: replacement of PI
System by AVEVA (the company
exited the Russian market) with
the domestic ZIIoT Platform
from Tsifra Group
2024 highlights
A more than fivefold reduction
in the time required to transmit and
process technical inspection data
Creation of a statistical rolling stock
failure database for predicting
changes in the technical condition
of rolling stock by using AI
technologies
2024 highlights
Successful implementation
of the software with a warranty and
technical support
All production sites
Cherepovets chemical
facilities of Apatit
With the project proving
to be a success, the Company’s
business analysts and IT experts
have started exploring
the scalability of AI-based
speech recognition and
generation technologies to other
business processes of PhosAgro
Group.
The project ensured continuity
in production processes through
the use of Russian application
software. Its success enables us
to further enhance capabilities
and roll the solution out to other
facilities of the Company.
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S172 STATEMENT
According to Section 172
“Duty to promote the success
of the company” of the UK
Companies Act 2006, PhosAgro’s
Board of Directors acts in good
faith for the benefit of the Company
to promote its success, taking
into account possible long-term
consequences of its decisions
for the society and the environment,
as well as the interests
of the Company’s employees and
other stakeholders.
For the members of PhosAgro’s Board
of Directors, these standards mean
that the Company’s stakeholders
should be interacted with responsibly
and that their interests should
be respected to the maximum extent
possible.
At least once a year, the Strategy
and Sustainable Development
Committee (until 2022, the Sustainable
Development Committee)
of the Board of Directors reviews
feedback from stakeholders
on aspects of the Company’s
operations that are material to them.
Such feedback is used to identify
topics and indicators to be disclosed
in PhosAgro’s non-financial reporting
and to determine interaction priorities
and mechanisms for engagement
with the Company’s stakeholders,
including at the Board level.
In the reporting year, the Board
of Directors continued to hold
on-site meetings at the Company’s
production facilities. These meetings
help the Board reach a completely
new level in engaging with
the whole range of stakeholders,
including regional and municipal
governments, key management
of PhosAgro’s subsidiaries, production
teams, and local communities.
In 2024, the meetings were held
at the Cherepovets and Kirovsk
production sites. The Board members
explored the industrial assets, held
meetings with key employees, and
visited social facilities.
On-site meetings and other
Board activities at the Company’s
production facilities are a vital element
of feedback collection, which helps
the Board of Directors gain a thorough
understanding of the Company’s
economic, social, and environmental
impact.
Furthermore, in February 2024
the Chairman of the Board of Directors
acted as the head of PhosAgro’s
delegation during meetings with
the leadership of the UN Food and
Agriculture Organisation (FAO) and
the UN Educational, Scientific and
Cultural Organisation (UNESCO). These
are the two organisations with which
the Company has been partnering
for a long time to deliver a wide range
of join projects.
PROSPECTS
PhosAgro Group’s development
scenarios are reviewed by the Board
of Directors when approving
its Strategy. The strategic planning
cycle adopted by the Company is five
years.
Since 2019, the Board of Directors
has been considering a contingency
plan to prepare for critical changes
in the external operating environment
such as possible restrictions on our
supplies to key markets.
In 2024, countervailing duties and
the export quota system remained
in force. The restrictions caused
by international sanctions and supply
chain disruptions still made it difficult
for the Company to deliver its products
to its traditional markets. The expected
introduction of additional tariffs
on mineral fertilizers supplied
to the EU in 2025 will present
another challenge for PhosAgro
Group, requiring that we adopt new
management techniques, approaches,
and solutions.
In 2024, similarly to the previous two
years, the Company was adversely
affected by the termination
of operations in Russia by some
Western suppliers of equipment,
services, and technology,
as well as by difficulties in making
payments.
The Board of Directors weighed
the associated strategic risks when
approving the Strategy to 2025 and
continues to review them semi-
annually as part of the strategy
implementation monitoring. Each risk
has a dedicated risk management
map, containing a detailed description
along with mitigants and probability,
materiality and risk appetite
estimates. All of the above parameters
are updated on an annual basis.
For more information on the
Company’s strategic risks, see the
Strategic Report section on
Despite unprecedented
materialisation of these risks,
the Company continues to maintain
uninterrupted operations across all
its production sites, ensure timely
supply of fertilizers, and support
the well-being of its employees and
their families. PhosAgro Group’s team
manages to address new challenges
swiftly, maintaining business stability
and advancing to new heights.
Based on the foregoing, the Board
of Directors finds it reasonable
to believe that the Company will,
without any reservations, be able
to continue its operations and
meet all its obligations as they fall
due both during the implementation
of the Strategy to 2025 and through
to 2030.
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65
Strategic risks
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.
IMPACT ON SUSTAINABILITY
RISK APPETITE
In pursuing its goals, PhosAgro
is guided by risk appetite,
or the level of risk it deems
acceptable. Risk appetite
is an integral part of strategic
and operational decision-
making. The Board of Directors
defines the overall risk appetite
when reviewing the Company’s
risks and also as part
of approving its strategy, budget
and investment programme, and
considering other matters within
the Board’s scope of authority.
Risk appetite is then reflected
in the Company’s specific
procedures and key performance
indicators.
zero risk appetite (no operations)
minimum risk appetite (reduction
of risk exposure to the largest extent
possible)
low risk appetite (reduction of risk
exposure)
balanced risk appetite (risks and
opportunities are balanced)
focused on opportunities (increased
risk exposure)
maximum risk appetite (maximisation
of risk exposure)
STRATEGIC RISKS
PRODUCTION RISKS
REGULATORY RISKS
OPERATIONAL RISKS
FINANCIAL RISKS
PhosAgro aims to identify and
use opportunities that open
up in the market as a result
of changes in the external
environment. The Company
quickly responds to the changing
operating landscape and
targets priority markets that
offer the best terms and
conditions to sell its products.
At the same time, the Company’s
business model is designed
in a way that strikes an optimal
balance between sustainable
development and operational
efficiency.
The Company aims to minimise
unscheduled downtime
in production while at the same
time making sure that
its processes and end product
quality meet all applicable
requirements. Creating
a safe working environment
is the Company’s absolute
priority. PhosAgro makes every
effort to minimise the negative
impact of its production
processes on the environment
and climate.
PhosAgro aims to remain 100%
compliant with all applicable
statutory regulations, including
those related to taxation.
As part of industry associations,
the Company is involved
in developing regulatory
initiatives in order to minimise
any non-compliance risk.
In addition to laws and
regulations, the Company
operates in line with corporate
values and ethical principles
so as to minimise potential
reputational damage.
PhosAgro aims to prevent
any disruptions to its business
processes and IT infrastructure
performance and to also secure
maximum protection from
cyber threats and fraud. When
planning and implementing
its investment projects,
the Company works to deliver
against strategic priorities and
key performance indicators while
factoring in potential deviations
as a result of changing external
factors.
As a reliable borrower, the
Company seeks to raise
funding on the most attractive
terms available in the market.
PhosAgro’s core operations are
FX-linked, so we use natural
hedging methods to manage
our FX risk. We are not ready to
take on credit risk related to our
counterparties: in our relations
with them, we either seek to
secure terms and conditions we
see as most beneficial to us or
use risk transfer strategies.
2
4
focused on opportunities
3
balanced
2
low
1
minimum
low
1
3
5
0
2
4
Strategic risks are of a long-term
nature, influencing the Company’s
ability to achieve its long-term goals.
However, certain risks (FX, interest
rate, commodity, sanctions, etc.) may
be affected by the short- and medium-
term environment.
2024 is not a reporting period
for the application of IFRS S1.
However, for more comprehensive
disclosure of information,
the Company has classified
its risks based on their impact
on sustainability, and has described
this impact.
!
Effective starting 2023 is IFRS
S1 General Requirements
for Disclosure of Sustainability-
related Financial Information.
This standard requires
disclosure of information about
sustainability-related risks.
These are defined as risks that
can affect an entity’s cash
flows, its access to finance,
or cost of capital over the short,
medium, and long term. Under
the standard, said risks arise
as part of an entity’s interactions
with stakeholders, society,
the economy, and the natural
environment throughout
its value chain.
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STRATEGIC RISKS
1
Strategic planning
2
Failure to deliver
on sustainable
development goals
3
Social risk
4
HR risk
19 Climate risk
20 Sanctions risk
FINANCIAL RISKS
16 Credit risk
17 Currency risk
18 Commodity risk
21 Interest rate risk
REGULATORY RISKS
10
Tax risk
13
Regulatory risk
14
Corruption risk
15
Reputation risk
OPERATIONAL RISKS
8
Project risk
9
Business processes
and systems risk
11
Information security risk
12 Economic security risk
PRODUCTION RISKS
5
Production risk
6
Health and safety risk
7
Environmental risk
CHANGE IN THE RISK
Growing or continuing
tensions
Decreasing tensions
№
Risk
Description
Risk mitigants
Key indicators / risks
materialised
Strategic planning
Risk associated with
the adoption of an incorrect
strategic decision and ensuing
management decisions,
resulting from an erroneous
assessment of internal and
external factors that have
an impact on the Company’s
prospects for development
and its ability to achieve
strategic objectives.
The Company actively monitors both
internal and external factors that could
impact the strategy. PhosAgro also takes
a systematic approach to assessing
the potential costs and benefits of new
strategic projects to facilitate and improve
the decision-making process.
PhosAgro started updating its strategy
to 2030 to reflect the latest changes
in the external and internal environments.
Downside deviations
of actual strategic
performance from targets.
Geopolitical
developments cause
uncertainty to persist and
result in the assessment
of this risk as high.
Failure to deliver
on ESG and
sustainable
development goals
Risk factors include failure
to set ESG targets and
Sustainable Development
Goals (SDGs) or update
them in a timely manner,
as well as the lack of resources
and processes necessary
to achieve these targets and
goals.
Has an impact on sustainable
development through
goal setting and resource
planning to achieve said
goals
The Board of Directors’ Strategy and
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 as 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 10
Downside deviations
of actual ESG and SDG
performance from targets.
No material risk events
occurred.
Social
Risk of an adverse social
environment in the regions
of operation.
Has an impact on sustainable
development through
community relations
in regions of operation
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 cities and
towns where the Company operates.
Sustainable development in the regions
of operation is one of the key goals
the Group 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 220
Downside deviations
of actual ESG performance
(social dimension) from
targets.
No material risk events
occurred.
HR
Developments and decisions
related to the hiring,
development, and retention
of employees.
Has an impact on sustainable
development through
dependence on staff, which
are one of the Company’s key
resources
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.
For more information on the Company’s
activities in this area, see the Contributing
to Local Communities section on page 220
Personnel turnover and
skill mismatch.
No material risk events
occurred. However, labour
market developments,
including those related
to generational and
geopolitical factors, cause
the risk to persist.
1
2
3
4
Key risks associated with PhosAgro Group’s activities
Low
Low
Medium
Medium
High
High
Impact
Probability
12
3
1
2
19
14
13
15
21
7
17
4
9
16
11
18
10
8
5
6
20
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№
Risk
Description
Risk mitigants
Key indicators / risks
materialised
Production
Technical/industrial disruptions
of production processes
resulting 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 construction and upgrade
of equipment and carries out preventative
maintenance and major overhauls
by relying on backup equipment and
a reserve pool of components, accessories,
and spare parts.
The Company’s insurance programme
covers the risk of production disruptions.
Unscheduled equipment
downtime.
No material risk events
occurred.
Health and safety
Risks associated with
injuries, occupational
illnesses, incidents, accidents
at production facilities and
other incidents, including
acts of terrorism, and risks
arising from non-compliance
with statutory requirements
in the realm of health, safety,
and combating terrorism.
PhosAgro Group ensures health and
safety in workplaces and anti-terrorist
protection of facilities in line with
applicable laws and best global practices.
To that end, the Company trains staff
in health and safety and regularly checks
their knowledge, promotes safety
culture, ensures anti-terrorist protection
of facilities, 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. Initiatives and measures
to reduce the above risks are set out
in the relevant internal regulations
of the Company.
For more information on the Company’s
indicators in this area, see the Health and
Safety Review section on page 164
Workplace injuries and
other incidents.
2024 saw this risk
materialise (with no fatal
injuries). The Company
carefully investigated each
accident. All investigations
led to the implementation
of remedial action plans
to prevent the recurrence
of similar accidents.
Environmental
Risk of actual and potential
environmental damage
resulting from the Company’s
operations.
Has an impact on sustainable
development by affecting
the environment
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).
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.
For more information on the Company’s
activities in this area, see the Environmental
Review section on page 182
Exceeding maximum
permissible levels
of negative environmental
impact.
No material risk events
occurred.
5
6
7
№
Risk
Description
Risk mitigants
Key indicators / risks
materialised
Project
Risk associated with delays
and budget overruns
in construction and upgrade
projects, along with failure
to deliver project efficiency
targets.
PhosAgro strives to adhere to approved
project budgets and schedules and
to take a unified implementation
approach leveraging a variety of project
management tools. All projects go
through a multi-step review and approval
process. For large-scale and strategically
important projects, dedicated project
management offices are set up.
The Company regularly monitors progress
against project budgets and deadlines.
Downside deviations
of actual project efficiency
indicators from targets.
No material risk events
occurred. That said,
geopolitical developments
caused deviations related
to shipments of imported
equipment. The Company
sets up its business
processes in a way that
makes sure such risk
is minimised, including
by relying on import
substitution efforts.
Business processes
and systems
Inefficiency or disruption
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 conducted on a regular
basis to identify potential bottlenecks
and develop and implement efficiency
improvement initiatives.
The Group strives to minimise the risk
of disruptions in supplies of key materials
and feedstock. To that end, PhosAgro
uses multi-stage tender procedures and
enters into long-term contracts with
its most reliable suppliers. In addition,
it continuously works to optimise
the logistics infrastructure and ensure
sufficient rolling stock.
The Group also monitors
its IT infrastructure on an ongoing basis
and carries out a number of initiatives
to mitigate 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
caused deviations related,
among other things,
to shipments of imported
materials and use
of software. The Company
sets up its business
processes in a way that
makes sure such risk
is minimised, including
by relying on import
substitution efforts.
Tax
Potential claims lodged
by tax authorities in response
to the Company’s failure
to correctly file tax returns
or pay taxes in due time.
Has an impact on sustainable
development through
interaction with fiscal
authorities, which directly
impacts cash flows
PhosAgro complies with tax legislation
in the countries where it operates.
The Company tracks all changes
(including 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 coordination with the Federal
Tax Service.
Tax claims.
No material risk events
occurred.
Information security
Losses incurred
on the Company’s property
and assets as a result
of unauthorised access
to its information systems
or disclosure of confidential
data.
PhosAgro implements a number
of initiatives to prevent unauthorised
access to its information systems and
disclosure of confidential data. A wide
variety of technical and software solutions,
including those based on encryption,
are used to control access to information
resources and systems. Access rights
are granted to specific 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.
PhosAgro’s Board of Directors adopted
the Information Security Policy.
Unauthorised disclosure
of confidential data,
unauthorised access
to IT systems.
No material risk events
occurred.
8
9
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Risk
Description
Risk mitigants
Key indicators / risks
materialised
Economic security
Losses incurred
on the Company’s property
and assets as a result
of economic crimes
committed by employees
or third parties, including fraud
and theft.
The Company takes steps to prevent
potential damage to its property and
assets as a result of economic law
infringements, including, in particular,
by introducing access authorisations
to the Company’s administrative and
production facilities, clearly differentiating
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.
Regulatory
Untimely receipt/extension
of licences; legislative
changes that might bring
about higher cost of doing
business, restrictive policies
by regulators, weaker equity
story of the Company and/
or adverse transformation
of the competitive landscape.
Has an impact on sustainable
development through
interaction with
the regulatory environment
PhosAgro is in full compliance
with applicable laws. To make sure
it gets timely updates on potential
legislative changes, the Company
closely tracks initiatives of legislators,
the government, and regulators, and
takes part in discussing such initiatives
and drafting relevant recommendations
in partnership with professional
associations. The Company prepares and
submits documents in due time to receive
or extend licences or other permissions
required for its business.
Deviations related
to regulatory compliance.
No material risk events
occurred.
Corruption
Losses resulting from non-
compliance or inadequate
compliance with
applicable anti-corruption
laws by the Company
or its employees (penalties
levied against the Company
by government authorities and
other damages).
PhosAgro makes sure its facilities and
partners fully comply with applicable anti-
corruption laws. To that end, it provides
training in combating corruption and
administrating the anti-corruption law,
and promotes zero tolerance towards
corruption among the Company’s
employees and partners. Among other
things, PhosAgro 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-corruption laws.
The Company is a member of the Anti-
Corruption Charter of Russian Business.
Corrupt practices,
conflicts of interest.
No material risk events
occurred.
Reputation
Damage caused
to the Company’s business
reputation as a result
of misleading or defamatory
information or allegations
about the Company made
publicly available, leakages
of confidential information, and
breaches of business ethics
on the part of the Company’s
employees.
Has an impact on sustainable
development through
the Company’s business
reputation
In its operations, PhosAgro demonstrates
commitment to transparency
by disclosing all relevant material facts
and circumstances. The Company has
adopted an information policy and
a media engagement policy. Information
about the Company is available
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 integrity, good
judgement, fair play, and partnership
and designed to support the Company’s
success.
Stakeholder confidence.
No material risk events
occurred.
12
13
14
15
№
Risk
Description
Risk mitigants
Key indicators / risks
materialised
Credit
Financial losses caused
by the failure of buyers,
commercial contractors, and
other financial counterparties
to fulfil their financial
obligations to the Company
in full and on time.
Has an impact on sustainable
development through
interaction with
counterparties, whose credit
obligations directly impact
cash flows
PhosAgro has approved policies
on managing credit risks to institutionalise
a number of credit risk mitigation
techniques, including deliveries against
full or partial prepayments with full
or partial insurance of credit risks,
and use of letters of credit. Providing
advance payments to suppliers and
contractors is only considered after
the counterparties have proved their
reliability or after they have offered
adequate bank guarantees for advance
payments that exceed approved internal
limits. PhosAgro partners with banks,
financial organisations, and insurance
companies that boast a high level
of financial 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 consolidated
financial statements on page 352
Overdue accounts
receivable, provision
for bad debt.
No material risk events
occurred.
Currency
Financial losses arising from
unfavourable changes in FX
rates against the Company’s
base currency.
In the context of fluctuations 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 natural
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
positions 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 consolidated
financial statements on page 350
Adverse changes
in exchange rates.
No material risk events
occurred.
Commodity
Losses associated with
unfavourable changes
in the market prices for mineral
fertilizers and other products
or a hike in prices for key
feedstock and equipment
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 market priorities, as a way to maximise
margins. PhosAgro also continues
to increase the share of sales to end
consumers, improve production efficiency,
and offer its customers add-on services
such as packaging, blending, and storage.
To reduce its feedstock and equipment
expenses, PhosAgro invites multiple
suppliers to take part in tenders, enters
into long-term supply contracts, and
develops lasting relationships with
its suppliers.
Adverse changes
in product and feedstock
prices.
No material risk events
occurred.
16
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18
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№
Risk
Description
Risk mitigants
Key indicators / risks
materialised
Climate
Risks associated with
changes in natural processes
or phenomena amid climate
change (physical factors)
or with political, economic,
financial, or other decisions
made by governments,
multilateral organisations,
financial institutions,
or producer or consumer
associations or other NGOs
to curb climate change
by reducing GHG emissions
through carbon regulations
or restrictions on the use
of fossil fuels or non-renewable
energy (transitional factors).
Has an impact on sustainable
development through
the potential impact
of climate change and
the effect of regulatory
changes on the Company’s
operations
Processes to identify and assess climate
change risks are being set up throughout
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 opportunities, 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 programmes;
an internal energy efficiency programme,
and communication with energy suppliers
to improve the climate profile of energy
supplies (Scope 2); and a supplier and
customer engagement plan and supplier
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 2024, 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.
Sanctions
Foreign sanctions and
other restrictions imposed
on the Group’s companies.
Has an impact on sustainable
development through
the potential effect
of sanctions on cash flows,
access to financing, or cost
of capital
The global nature of international
economy and geopolitical developments
create a background for various
sanctions to be imposed on the Russian
economy and the Company’s operations
by individual countries or their groups.
The Company’s flexible business model
helps minimise any negative impact
of such sanctions or restrictions.
Losses associated with
sanctions and other
restrictions.
Geopolitical developments
have caused this risk
to materialise and
continue to support
its assessment as high.
By quickly developing and
putting in place response
measures, the Company
ensured business
continuity and delivered
on its targets.
19
20
№
Risk
Description
Risk mitigants
Key indicators / risks
materialised
Interest rate
The Company borrows money
to finance its investment
programme and working
capital requirements, including
via floating interest rate loans.
Rising floating rates might
lead to higher debt service
costs and adversely impact
the bottom line.
Has an impact on sustainable
development through
potential changes in interest
rates, which directly impacts
cash flows
PhosAgro closely monitors and manages
its fixed-to-floating debt ratio to mitigate
interest rate risk. By optimising the loan
portfolio, including through different
currencies, the Company successfully
minimised its debt service costs.
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 consolidated financial statements
on page
Costs associated with
changes in interest rates.
In 2024, the Bank of Russia
raised its key interest
rate from 16% to 21%,
which led to an increase
in servicing costs of RUB-
denominated loans.
21
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Scientific and
educational
partnerships
p.
120
Synergy of
opportunities
Despite economic volatility, in
2024 the Company ramped
up its exports, expanded the
product range, and made
investments in innovations,
demonstrating strong
production and financial
performance.
increase in investments
in social programmes for
employees in 2024
24%
Antioxidant food additive E342
[monoammonium phosphate NH4H2PO4]
PERFORMANCE
REVIEW
investments in
infrastructure facilities and
the development of local
communities in 2024
RUB 4,272
MLN
78 Financial performance
86 Operational performance
92 Customers and product management
106 Research, innovations and education
128 Supply chain
142 People development
164 Industrial safety
182 Environmental review
220 Contributing to local communities
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1 Adjusted EBITDA is calculated as operating profit adjusted for depreciation and amortisation less
foreign exchange gain or loss from operating activities.
FINANCIAL
performance
KEY EXTERNAL DRIVERS OF FINANCIAL RESULTS
REVENUE ANALYSIS
MED 1, 2, 3
Revenue for 12M 2024 grew 15.3%
y-o-y primarily due to increased sales
of phosphate fertilizers, especially
NPK (up more than 18% y-o-y) amid
!
an ongoing recovery of global
demand for fertilizers following a
crisis-induced decline in 2021–2022;
!
continued export restrictions in
China and weak competition in Asia
and Latin America;
!
limited commissioning of new
phosphate-based fertilizer
capacities;
!
diversification and expansion of
sales geography, mainly to the
Global South;
!
balanced markets and lower
price volatility as fertilizer prices
stabilised at high levels from
mid-2024.
IN ADDITION TO INCREASED SALES VOLUMES AND CONTINUOUSLY COMPETITIVE COST LEVELS, THE
STRONG FINANCIAL RESULTS IN 2024 WERE DRIVEN BY THE FOLLOWING MARKET EVENTS:
recovery in average global sales prices
from early 2024 and a shift in the
rouble rate.
In 2024, PhosAgro Group demonstrated strong
financial performance by maintaining its robust
progress despite external challenges.
The positive results across key metrics were achieved through
high production efficiency and an increase in the production of
high-margin fertilizers and key inputs along with a flexible sales
policy amid a recovery in global sales prices and changes in the
rouble rate.
The Group’s revenue grew by 15.3% y-o-y to RUB 507.7 bln
while EBITDA and adjusted net profit came in at RUB 177.0 bln and
RUB 100.4 bln, respectively. EBITDA margin stood at 34.9%.
PhosAgro remains one of the industry’s most efficient players.
The main way we ensure effective cost control is by emphasising
strong vertical integration and sourcing the key inputs and materials
from domestic suppliers.
The Company’s robust financial position is confirmed by the top
rating of AAA from reputable agencies Expert RA and ACRA, which
demonstrates that the Company is able to meet its debt obligations,
including those denominated in foreign currencies, on time and in full.
As at the end of 2024, PhosAgro maintained a comfortable leverage
position, with the net debt/EBITDA ratio at 1.84x.
One of the events after the reporting date that had an impact on
the Company’s debt profile was the January 2025 redemption of the
USD 500 mln Eurobond issue. This redemption was executed in full
across both the Russian perimeter and outside of it.
In 2025, the Group will focus on repaying rather than refinancing its
debt to reduce servicing costs and strengthen its positions as a top-
quality borrower with high credit ratings.
Alexander Sharabaika
Deputy CEO for Finance and International Projects at
PhosAgro
Revenue,
RUB mln
Net profit,
RUB mln
Adjusted EBITDA1,
RUB mln
507,689.00
440,304.00
569,527.00
Δ 2024/2023
2022
2023
15.30%
2024
Δ 2024/2023
84,469.00
86,141.00
184,714.00
2022
2023
2024
-1.94%
170,553.00
Δ 2024/2023
168,352.00
266,947.00
2022
2023
2024
1.31%
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1 Adjusted EBITDA is calculated as operating profit adjusted for depreciation and amortisation less foreign exchange gain or loss from operating activities.
2 Adjusted net profit means net profit less net foreign exchange gain or loss from operating and financing activities.
3 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.
Financial and operational highlights
Item
2022
2023
2024
Δ 2024/2023,%
Financial highlights
Revenue, RUB mln
569,527.00
440,304.00
507,689.00
15.30
EBITDA, RUB mln
257,879.00
183,038.00
177,005.00
(3.30)
EBITDA margin, %
45.30
41.60
34.90
Adj. EBITDA1
266,947.00
168,352.00
170,553.00
1.31
Adj. EBITDA, RUB mln margin, %
46.90
38.20
33.60
Net profit, RUB mln
184,714.00
86,141.00
84,469.00
(1.94)
Adj. net profit2, RUB mln
182,297.00
104,105.00
100,372.00
(3.59)
Adj. free cash flow3, RUB mln
141,024.00
70,208.00
28,986.00
(58.71)
Item
31.12.2022
31.12.2023
31.12.2024
Δ 2024/2023,%
Net debt, RUB mln
180,338.00
223,207.00
325,356.00
45.76
Net debt / adj. EBITDA
0.68
1.33
1.91
43.61
Net debt / EBITDA
0.70
1.22
1.84
50.82
Added value, RUB mln
340,632.00
249,320.00
293,113.00
17.56
Net added value, RUB mln
311,093.00
217,038.00
256,567.00
18.21
Sales volume
2022
2023
2024
Δ 2024/2023,%
Phosphate-based fertilizers and feed phosphates, kt
8,402.80
8,578.20
9,104.70
6.14
Nitrogen-based fertilizers, kt
2,550.80
2,560.50
2,499.60
(2.38)
Total fertilizers, kt
10,953.60
11,138.70
11,604.30
4.18
Other products, kt
270.10
287.00
294.40
2.58
Total fertilizers and other products, kt
11,223.70
11,425.70
11,898.70
4.14
Revenue breakdown by key product, RUB bln
Item
2022
2023
2024
Δ 2024/2023,%
Phosphate and nitrogen-based products
551.0
421.7
492.5
16.79
Other
18.5
18.6
15.2
(18.28)
Total
569.5
440.3
507.7
15.31
OPERATING COSTS ANALYSIS
Cost of sales, RUB mln
MED 24
Item
2022
2023
2024
Δ 2024/2023,%
Amortisation and depreciation
26,979
29,374
33,207
13.0
Materials and services
54,178
65,738
79,112
20.3
• Transportation of phosphate rock
11,610
13,468
16,739
24.3
• Repair and maintenance expenses
12,002
15,865
19,382
22.2
• Feedstock processing services
-
4,341
6,269
44.4
• Drilling and blasting operations expenses
3,217
3,101
3,152
1.6
• Other services and materials
27,349
28,963
33,570
15.9
Raw materials
108,323
63,335
64,670
2.1
• Ammonia
19,550
11,533
14,343
24.4
• Sulphur and sulphuric acid
40,798
11,507
12,255
6.5
• Potash
27,418
22,444
17,574
(21.7)
• Natural gas
14,226
15,033
16,948
12.7
• Ammonium sulphate
6,331
2,818
3,550
26.0
Salaries and social contributions
19,667
26,265
35,169
33.9
Electricity
6,754
7,317
8,340
14.0
Fuel
6,459
5,754
7,215
25.4
Products for resale
15,599
16,056
12,675
(21.1)
Customs duties
1,420
13,207
34,139
158.5
Freight, port and stevedoring expenses
16,382
9,924
11,441
15.3
Russian Railways infrastructure tariff and
operators’ fees
12,647
14,047
19,306
37.4
Other
610
599
885
47.7
Total
269,018
251,616
306,159
21.7
In 2024, the cost of sales grew by 21.7%
to RUB 306.2 bln mainly due to export
customs duties introduced in 2023
(up 158.5% y-o-y to RUB 34.1 bln), costs
for materials and services (up 20.3%
y-o-y to RUB 79.1 bln), and salaries
and social contributions (up 33.9%
y-o-y to RUB 35.2 bln).
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ADJUSTED EBITDA
In 2024, the Group’s adjusted EBITDA
increased by 1.3% y-o-y to RUB 170.6 bln.
Adjusted EBITDA margin for the
reporting period came in at 33.6%,
ADJUSTED FREE CASH FLOW
This was due to higher spending on
export customs duties introduced in
2023, planned CAPEX related to major
investment projects, higher interest
expenses driven by an increase in
the Bank of Russia’s key rate, and an
outflow of funds to finance working
capital in the second half of the year
amid more shipments to Latin America
and overall extended turnover of
accounts receivable.
Capital investments (including
capitalised repairs) for the year
amounted to RUB 75 bln and were
mainly focused on developing the
ore and raw material base in Kirovsk,
expanding production capacities in
Balakovo, and maintaining production
facilities across all process stages,
from mining and processing of raw
materials to the production of finished
products.
DEBT
Net debt as at 31 December 2024
increased y-o-y to RUB 325.4 bln. The
depreciation of the rouble against the
US dollar in 2024 and reassessment
of the Company’s foreign currency
debt using the year-end exchange
rate had a significant impact on the
RUB-denominated debt amount. The
increase in net debt was also associated
with reduced cash on the Company’s
balance sheet following the payment of
declared dividends for 2Q and 3Q 2024
at the year end.
With marginal growth of EBITDA,
the net debt / adjusted EBITDA ratio
increased to 1.91x as at 31 December
2024 from 1.33x a year earlier.
1 Debt amount under unsecured bank loans does not include the bank fee of RUB 4 mln.
2 Bond debt amount does not include the bank fee of RUB 464 mln.
Debt maturity profile, RUB bln
Item
2025
2026
2027
2028
2029
Total
Unsecured bank loans1
96.7
19.1
–
–
–
115.8
Bonds2
62.7
101.9
–
39.0
10.2
213.8
Interest payable
2.6
–
–
–
–
2.6
Total debt
162.0
121.0
–
39.0
10.2
332.2
TAX POLICY
GRI 3-3, 207-1, 207-2, 207-3
In 2023, the Board of Directors
approved a new version of PhosAgro’s
Tax Strategy. The approach to taxation
was developed in accordance with
the Company’s Strategy to 2025
and combines social responsibility
for developing and maintaining
the well-being of regions across
PhosAgro’s footprint, minimising
tax litigation risks, and maximising
the use of the Company’s leverage
toolkit stipulated by law for actively
investing companies, in particular
Investment Protection and Promotion
Agreements (IPPAs) and Special
Investment Contracts (SPICs).
Our approach to tax management,
participation in shaping government
tax policy, and organisational
arrangements pertaining to the
exercise of tax functions at PhosAgro
is described in the Company’s
Tax Strategy.
Adjusted EBITDA in 2024 vs actual 2023, RUB bln
Adjusted EBITDA to adjusted FCF conversion
in 2024, RUB bln
170.6
-61.6
15.6
Fertilizer prices
22.9
Sales
25.3
FX rates
168.4
2023
Costs
2024
170.6
-0.1
-42.1
Working capital
-21
Taxes paid
-14.7
Interest paid
92.7
OCF
-63.8
ICF
28.9
FCF
Adjustment
EBITDA
driven by a rise in sales and sales
prices. At the same time, the metric
came under pressure from higher
costs associated with the payment
of export duties introduced in 2023,
increased consumption of raw
materials, and an expansion in staff
costs.
!
In 2024, the Company’s
adjusted free cash flow was
59% lower y-o-y and amounted
to RUB 29 bln.
!
Our commitment to maintaining
high credit quality and ensuring
timely debt servicing continues
to be a priority for the
Company.
Loans and borrowings
breakdown by rate type as
at 31 December 2024, %
Loans and borrowings
breakdown by currency as
at 31 December 2024, %
Fixed rate
Floating rate
37
63
USD-denominated
RUB-denominated
CNY-denominated
26
1
40
33
Despite the accessibility of debt
markets, the Company will focus
on debt repayment rather than
refinancing throughout the year to
reduce servicing costs and strengthen
its positions as a top-quality borrower
with high credit ratings.
The full text of the
new version of the Tax
Strategy is available on
the Company’s website
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Strategic report
Performance review
Corporate governance
Share capital
Appendices
Tax jurisdiction
Statutory tax rate3, %
Average headcount, people
Tangible assets other than
cash and cash equivalents
Total employee remuneration
Intra-group loans received
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
Russia
20.00
20.00
20.00
19,846
21,839
23,617
320,961
367,857
430,233
55,318
53,745
70,948
103,233
137,911
213,642
Switzerland
12.05
–
–
36
0
0
0
0
0
528
0
0
0
0
0
Cyprus
12.50
–
–
30
0
0
0
0
0
57
0
0
0
0
0
Poland
19.00
–
–
15
0
0
0
0
0
55
0
0
0
0
0
Germany
32.27
–
–
7
0
0
0
0
0
33
0
0
0
0
0
France
25.00
–
–
6
0
0
0
0
0
58
0
0
0
0
0
Serbia
15.00
–
–
14
0
0
0
0
0
28
0
0
0
0
0
Lithuania
15.00
–
–
4
0
0
0
0
0
20
0
0
0
0
0
Romania
16.00
–
–
7
0
0
0
0
0
14
0
0
0
0
0
South Africa
28.00
–
–
2
0
0
0
0
0
10
0
0
0
0
0
Finland
20.00
–
–
1
0
0
0
0
0
2
0
0
0
0
0
Brazil
34.00
–
–
7
0
0
0
0
0
32
0
0
0
0
0
Singapore
17.00
–
–
3
0
0
0
0
0
8
0
0
0
0
0
Total
320,961
367,857
430,233
56,163
53,745
70,948
103,233
137,911
213,642
1 Income tax paid in 2023 includes windfall tax security payment in the amount
of RUB 6,355 mln.
2 Tax rates effective in any given jurisdiction apply to profit/loss before income
tax. 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, including
charitable expenses;
• other differences (including the 2023 windfall tax in the amount of RUB 6,355 mln).
3 For the Russian tax jurisdiction, an average statutory tax rate is used.
Country-by-country reporting, RUB mln
GRI 207-4, MED 6, MED 7
Tax jurisdiction
Unrelated party revenue
Revenue from intra-group
transactions with other tax
jurisdictions
Profit/(loss) before income tax
Income tax paid (cash basis)1
Income tax accrued2
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
Russian Federation
440,639
440,304
507,689
106,420
0
0
157,360
114,603
109,044
41,393
36,132
20,953
39,932
34,527
25,477
Switzerland
96,268
0
0
27,436
0
0
57,850
0
0
331
0
0
764
0
0
Cyprus
0
0
0
4
0
0
(4,243)
0
0
2
0
0
2
0
0
Poland
8,088
0
0
0
0
0
4,943
0
0
48
0
0
235
0
0
Germany
7,446
0
0
0
0
0
5,242
0
0
2
0
0
129
0
0
France
7,045
0
0
0
0
0
5,541
0
0
5
0
0
94
0
0
Serbia
2,020
0
0
58
0
0
1,063
0
0
1
0
0
65
0
0
Lithuania
1,598
0
0
0
0
0
1,038
0
0
26
0
0
0
0
0
Romania
4,050
0
0
0
0
0
1,916
0
0
0
0
0
63
0
0
South Africa
2,343
0
0
0
0
0
1,643
0
0
0
0
0
174
0
0
Finland
29
0
0
0
0
0
(2)
0
0
3
0
0
3
0
0
Brazil
0
0
0
0
0
0
(42)
0
0
0
0
0
4
0
0
Singapore
0
0
0
0
0
0
(13)
0
0
0
0
0
0
0
0
Total
569,527
440,304
507,689
133,918
0
0
232,297
114,603
109,044
41,811
36,132
20,953
41,465
34,527
25,477
The Company’s income tax rate in 2022–2024 was
20%
p.
366-367
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
84
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Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
Our customers
are at the heart of our business.
In 2024, our product mix included
58 grades, covering varied fertilizers,
feeds, and other products enjoying
robust market demand.
PRODUCT PORTFOLIO
PhosAgro Group is the largest producer of liquid
nitrogen-phosphorus fertilizers in Russia.
OPERATIONAL PERFORMANCE
In 2024, PhosAgro Group set a new record in annual
agrochemical production, with the output rising
by 4.3% to 11.8 mt.
This was driven by the implementation of investment projects under
the Company’s long-term development strategy designed to upgrade
the existing facilities and develop new capacities. The main growth
driver during the reporting year was the production of phosphate-based
fertilizers (the output of DAP/MAP increased by 1.0%, NPK by 23.3%, and
МСР by 10.0%). These results came on the back of the Volkhov production site
reaching its design capacity, as well as the increased production of key inputs
such as phosphoric (up 5.1%) and sulphuric (up 5.3%) acids.
In 2024, sales of the Group’s agrochemicals rose by 4.1% supported by higher
production volumes, strong efficiency of the Company’s distribution network
in Russia and PhosAgro’s solid position in global markets. The highest growth
rates in 2024 were recorded in Russia, Latin America, and Africa.
Growth was primarily driven by a 6.1% y-o-y hike in the sales of phosphate-
based fertilizers, while an accelerated rise in the sales of triple fertilizers was
attributable to increased shipments of agrochemicals to the priority domestic
market. Throughout the year, the demand for PhosAgro’s products remained
stable across key agricultural regions of Russia. The Black Earth and Southern
regions with their strong agricultural industry traditionally accounted for
the largest share of shipments, but the Far East and North-Western regions
also continued to show growing interest in our products. PhosAgro Group’s
leadership in the Russian market in 2024 helped increase the domestic sales
of fertilizers over the year, with total agrochemical sales to Russian farmers
rising to 3.34 mt.
Alexander Gilgenberg
General Director of Apatit
Nitrogen-phosphorus and
complex fertilizers
Nitrogen-phosphorus and
complex fertilizers with
micronutrients
Nitrogen-based fertilizers
Water-soluble and liquid
complex fertilizers
Feed grade urea
Feed grade monocalcium
phosphate
• High-grade phosphate rock
• Syenite alkali aluminium
concentrate
• Nepheline concentrate
• Sodium
tripolyphosphate
Sales of phosphate-
based and nitrogen-based
fertilizers, kt
Phosphate-based fertilizer
production, kt
Change 2024 to 2023
11,604.3
11,138.7
10,953.6
2022
2023
2024
4.2%
Change 2024 to 2023
8,874.2
8,388.7
8,224.4
2022
2023
2024
5.8%
Concentrate sale, kt
Change 2024 to 2023
2,811.3
2,548.1
3,217.6
2022
2023
2024
10.3%
Nitrogen-based fertilizers
production, kt
Change 2024 to 2023
2,593.2
2,605.3
2,546.6
2022
2023
2024
-0.5%
Concentrate production, kt
12,524.0
11,829.3
12,031.5
Change 2024 to 2023
2022
2023
5.9%
2024
Feedstock production, kt
14,261.4
Change 2024 to 2023
13,708.3
13,427.5
2022
2023
2024
4.0%
Mineral fertilizers
Feed additives
Concentrates
Industrial products
Industrial
phosphates
ApaSil®
Apagips/
Technogip
86
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Appendices
Performance review
UPSTREAM AND DOWNSTREAM
Upstream
Kirovsk Branch of Apatit mines
apatite-nepheline ore at six fields
of the Khibiny deposits in Russia’s
Murmansk region using both
underground and open-pit mining
methods. PhosAgro Group’s feedstock
reserves are of igneous origin,
which means that they do not have
concentrations of toxic heavy metals.
The Company’s phosphate rock is
extremely rich in P2O5.
PhosAgro Group’s ore reserves as at 1 January 2025
Deposit
Balance reserves, kt
(categories А + В + С1 + С2)
Average P2O5 content, %
Kukisvumchorr
322,935
14.09
Yukspor
436,928
13.72
Apatitovy Cirque
74,265
13.51
Rasvumchorr Plateau
350,015
12.06
Koashva
245,099
17.32
Njorkpahk
49,697
14.42
Total
1,478,939
14.02
Currently, the Company is shifting its
resource base development profile
from open-pit mining to a higher share
of underground mining.
In the reporting year, the share
of open-pit mining came in at
77.8%
The total apatite-nepheline ore
production in 2024 increased by
3.8%
y-o-y to 40.7 mt from 39.2 mt in
2023
In March 2024, we successfully
commissioned the +10 m level at the
Kirovsky mine. The development
of this underground level began
back in 2015 to compensate for the
depletion of existing horizons as the
scope of mining operations expanded
and thus to maintain and ramp up
production of apatite-nepheline ore.
This new level is expected to yield
approximately 94 mt of ore by 2035.
The Company proceeded with its
Vostochny mine development project
seeking to intensify open-pit mining.
In 2024, total ore production as part of
the project came in at 8.3 mt.
In 2024, the Company continued with
the investment project to construct
a new mine for the Rasvumchorr
Plateau deposit. The commissioning
of (start of ore mining at) the +430
m and +310 m levels is scheduled for
2025 and 2031, respectively. In 2024,
significant progress was made on the
construction of a ventilation system as
part of the VWVD1 and RSRS2 projects,
the main water drainage system and
communication networks.
Efforts are underway to complete
preparations for the mining of a
block pillar under the Saami pit: in
2024, we developed engineering
documentation, and finalised the
construction of hydraulic structures
and an auxiliary access road to the
near-entrance excavation site. Mining
and capital construction works
continue on the Gakman–Loparskaya
water diversion tunnel, with the
excavation of the Yuksporiok–Gakman
tunnel completed. Completion of
the works and start of ore mining are
scheduled for 2028.
1 Versatile wind vibration damper.
2 Reception, storage and regasification systems.
Concentrate production, kt
Item
2022
2023
2024
Change 2024 to
2023, %
Phosphate rock
10,855.7
10,667.3
11,391.0
6.8
Nepheline concentrate (incl. syenite concentrate)
1,175.8
1,162.0
1,133.0
–2.5
Total
12,031.5
11,829.3
12,524.0
5.9
CHEMICAL PRODUCTION
Feedstock
Feedstock production, kt
Item
2022
2023
2024
Change 2024 to
2023, %
Ammonia
1,985.3
1,982.8
1,982.5
–0.02
Phosphoric acid
3,199.4
3,345.3
3,515.4
5.1
Sulphuric acid
7,920.2
8,120.0
8,546.5
5.3
Ammonium sulphate
322.6
260.2
217.0
–16.6
Total
13,427.5
13,708.3
14,261.4
4.0
In 2024, the production of
phosphoric acid, the key
feedstock used in phosphate-
based fertilizers, reached
3.5 mt,
increasing by 5.1% y-o-y on
the back of earlier production
unit upgrades and increased
equipment utilisation efficiency
In 2024, sulphuric acid
production was up by 5.3% y-o-y
to
8.5 mt
due to the upgrade and greater
efficiency of sulphuric acid
production in Cherepovets, as
well as the modernisation of
equipment at the Balakovo site
in 2024
In 2024, the production of
phosphate rock and nepheline
concentrate increased by 5.9%
y-o-y to
12.5 mt
In December 2024, construction
works were completed at the Gakman
block, setting the stage for the start
of mining. Ore extraction and capital
mining operations in strategically
important areas are set to begin
in 2025.
In 2024, Apatit used 300 mln kWh
of carbon-free electricity at its
production sites. This means that
mineral fertilizers supplied by the
Volkhov and Balakovo production sites
in 2024 were manufactured using
exclusively green power purchased
from the hydroelectric power plants
of TGC-1.
Ammonia output was virtually flat
y-o-y at nearly
2 mt
The decline in ammonium
sulphate output in 2024 can be
attributed to the scaled-down
production of NPS grades in line
with the market environment
Ore processing
88
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Appendices
Performance review
PHOSPHATE-BASED FERTILIZERS
Phosphate-based fertilizer production, kt
Item
2022
2023
2024
Change 2024 to 2023, %
DAP/MAP
4,191.9
4,545.0
4,592.0
1.0
NPK
2,553.8
2,463.8
3,038.5
23.3
NPS
1,003.1
806.9
640.1
–20.7
APP
114.0
199.7
193.0
–3.4
MCP
361.6
373.3
410.6
10.0
Total
8,224.4
8,388.7
8,874.2
5.8
In 2024, the production of
phosphate-based fertilizers
grew by 5.8% y-o-y to almost
8.9 mt
driven by a surge in demand
and sales
Production of primary DAP/MAP
fertilizer grades rose by 1.0%
y-o-y to
4.6 mt
In 2024, production in the
nitrogen segment remained
practically flat y-o-y at
2.6 mt
Notably, the MAP output surge of 8.9%
y-o-y came, among other things, from
the new production facility in Volkhov,
erected as part of the Company’s long-
term development programme.
As part of phase 3 in the Balakovo
branch development project, this
production site started manufacturing
diammonium phosphate, while also
increasing the output of feed grade
monocalcium phosphate by 10.0%
after the implementation of a special
project to that end.
OTHER PRODUCTS
Nitrogen-based fertilizers production, kt
Item
2022
2023
2024
Change 2024 to 2023, %
Ammonium nitrate
693.0
723.4
728.6
0.7
Urea
1,688.2
1,714.4
1,722.9
0.5
Ammonium sulphate
165.4
167.5
141.7
–15.4
Total
2,546.6
2,605.3
2,593.2
–0.5
NITROGEN-BASED FERTILIZERS
SALES
In 2024, PhosAgro Group
increased total sales of
phosphate-based fertilizers
and feed phosphates by 4.2%
y-o-y to hit an all-time high of
11.6 mt
Sales of phosphate-based fertilizers
amounted to 9.1 mt, up 6.1% y-o-y.
Accelerated rise in the sales of triple
fertilizers was attributable to increased
shipments of agrochemicals to the
priority domestic market.
In the nitrogen segment, sales were
down by 2.4% y-o-y mainly due to
reduced exports.
Sales by key product, kt
Item
2022
2023
2024
Change 2024 to
2023, %
Phosphate rock
2,041.2
1,393.3
1,676.6
20.3
Nepheline concentrate
1,176.4
1,154.8
1,134.7
–1.7
Total
3,217.6
2,548.1
2,811.3
10.3
Phosphate-based fertilizers
DAP/MAP
4,272.2
4,503.6
4,659.6
3.5
NPK
2,660.7
2,696.0
3,181.4
18.0
NPS
1,008.8
803.9
677.2
–15.8
APP
111.6
198.1
187.4
–5.4
MCP
349.5
376.6
399.1
6.0
Total
8,402.8
8,578.2
9,104.7
6.1
Nitrogen-based fertilizers
Ammonium nitrate
661.6
688.3
679.5
–1.3
Urea
1,741.8
1,698.5
1,681.2
–1.0
Ammonium sulphate
147.4
173.7
138.9
–20.0
Total
2,550.8
2,560.5
2,499.6
–2.4
Total fertilizers
10,953.6
11,138.7
11,604.3
4.2
Other products
STPP
48.6
61.7
65.2
5.7
Other1
221.5
225.3
229.2
1.7
Total other products
270.1
287.0
294.4
2.6
1 The portfolio of other products expanded in 2024 to incorporate phosphogypsum, aluminium fluoride, sulphuric acid, phosphoric acid, sodium silicofluoride, and
aluminium sulphate. Sales of these new products for both 2022 and 2023 have been retrospectively adjusted to reflect this change.
Within the Russian market,
a focal point for PhosAgro Group,
deliveries saw a 9.6% increase,
equivalent to an additional 0.2 mt.
This uptick was instrumental in
boosting the total fertilizer and
feed phosphate sales figures for
2024 by
4.2%
In response to market demands,
interchangeable NPS, NPK, and
APP phosphate fertilizers varied as
follows in 2024: a 20.7% decline in
NPS production and a 23.3% increase
in NPK output, with APP production
down by 3.4%.
Output of other marketable
products, which primarily include
sodium tripolyphosphate and
sodium silicofluoride and others,
amounted to
301.7 kt
up 5.5% y-o-y
Production of granulated ammonium
sulphate declined by 15.4% while
the output of urea and ammonium
nitrate barely changed compared
to 2023.
90
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Performance review
CUSTOMERS
and product management
AREA, STRATEGIC GOALS AND HIGHLIGHTS OF 2024
Establishing business partnerships built on mutual trust and respectand ensuring a shared understanding
of obligations and expectations from the partnership
According to a survey of market players in the agribusiness sector:
2 SURVEYS OF MINERAL FERTILIZER CONSUMER
PREFERENCES
Actual
Target
17.16, 17.17
Target
Promoting the responsible and rational use of mineral fertilizers, i.e. green agriculture, and providing expert support
to agricultural producers and advancing a customised product offering
The Company confirmed its compliance with ESG certificates:
• Green One (Russia)
• Vitality Leaf (Russia)
• Environmental Quality Label (Brazil)
The Company continues to grow its digital learning platform, Pro
Agro Lectorium, as well as digital services for farmers
1 COMPLIANCE WITH THE REQUIREMENTS APPLIED
TO MINERAL FERTILIZERS
Actual
Target
Target
2.4, 17.16, 17.17
40%
of the respondents said that PhosAgro products make up the
majority of mineral fertilizers used in their farms
>85%
of customers who used the Company’s products before are
willing to opt for them next year1
1 Survey respondents whose farms
sourced the largest share of their
fertilizers from PhosAgro Group in 2024
primarily intend to purchase from the
same producer as their first choice.
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Appendices
Performance review
!
To provide consumers with
safe, eco-friendly, and quality
innovative products and
services, the Company’s
Strategy to 2025 has identified
the following focus areas
that reflect consumer needs
regarding product innovations
and new digital services:
•
Marketing products meeting
customer requirements and
stakeholder expectations
•
Taking into account
customer feedback
•
Information support
•
Digital services
for customers
STRATEGY
Social and geopolitical turmoil, climate
change, and increasing inequality
are just some of the challenges faced
by the world over the recent years.
Global food security remains one
of the most pressing issues, including
producing sufficient amount of quality
and safe food accessible to all.
In this context, we carry out
PhosAgro’s strategic and globally
important mission of supplying
safe and eco-friendly fertilizers
!
We believe that tackling global
problems is only possible
through open dialogue and
cooperation 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.
MANAGEMENT APPROACH
GRI 3-3
An open dialogue with customers
helps us understand their expectations
and requirements for our products,
services and the management
system, as well as their vision
of future products. This valuable
information creates a solid foundation
for the Company’s further strategic
growth and new product development.
PHOSAGRO GROUP’S
RESPONSIBLE PRODUCTION
MANAGEMENT
FRAMEWORK IS BASED
ON THE FOLLOWING
PRINCIPLES:
!
compliance with Russian and
international standards and
regulations;
!
integration of the production
management, quality
management, and HSE
management systems;
!
accurate traceability of materials,
elements and substances from
product development to the end
of life cycle;
!
open and transparent
information about
the properties and quality
of products for customers and
other stakeholders;
!
open dialogue with
stakeholders regarding their
expectations and satisfaction
with the Group’s products and
services.
PhosAgro Group’s vertically integrated
business model is a competitive
advantage. PhosAgro’s upstream
assets benefit from extensive and
high-quality resource base boasting
unmatched purity. Our production
facilities are located close to key
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
for the agricultural industry to ensure
food security in Russia and across
the world.
Enhancing PhosAgro’s
competitive strengths as one
of the world’s leading suppliers
of environmentally safe phosphate
fertilizers1 for farmers
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
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
mineral resources used as feedstock
for fertilizers and other products.
At PhosAgro Group, we have a product
management framework that relies
on the assessment of product life
cycle. It covers all production facilities
and stages of product life.
Product management framework
•
Product research and
development
•
Ensuring production
safety and product use
in compliance with regulatory
and other requirements
•
Drafting documents
•
Registration tests and receipt
of permits
•
Regulations and other
requirements
•
Expectations of stakeholders
•
PhosAgro’s strategic
initiatives, cooperation and
joint research projects with
R&D institutes
•
Elaboration of production
requirements and
opportunities
1 Certified for environmental compliance under the Vitality Leaf international standard.
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Performance review
System for planning and
defining criteria for product
development
Internal quality control
All processes that ensure compliance
of the product safety, quality and eco-
friendliness criteria with stakeholder
requirements and expectations
throughout the product life cycle,
from ore and material selection
to the supplies of products to end
consumers, are monitored, measured,
analysed and managed to ensure
continuous improvement of the
quality of specific processes and the
framework at large.
Interaction with customers and
product safety are closely related
issues regularly discussed by the
Board of Directors’ committees and
submitted to the Board of Directors for
consideration.
To support quality and HSE
management, PhosAgro facilities have
designated functions responsible
for internal control and support
of the quality and environmental
management systems, integrating
requirements into processes,
performing internal audits,
implementing targeted initiatives,
updating records, and collecting and
providing input data for review by top
management.
External quality control
Every year, PhosAgro Group facilities
undergo external compliance
reviews by certification authorities
in order to ensure compliance of the
Company’s management system with
international and national standards
for quality and HSE management.
Development of products and
manufacturing processes is
implemented in partnership with the
Company's Research and Innovations
Centre and Samoilov Scientific
Research Institute for Fertilizers and
Insectofungicides (NIUIF), Russia’s only
institute specialising in this area.
RISKS AND OPPORTUNITIES
The Company develops corrective
measures as necessary to mitigate
those risks.
We also work to unlock new
opportunities, including:
!
voluntary certification of our
products and enhancing consumer
awareness about our products and
services;
!
attracting our target audience’s
attention through training services
and agricultural technologies;
!
continually developing our product
line and services based on regular
consumer feedback.
The Company has a risk management system in place to identify
and mitigate product related risks in cooperation with customers.
This system, among other things, covers product related risks.
The following strategic risks, in particular, affect our product and
customer related objectives:
For more information, see
the Strategic Risks section
p.
66-75
environmental risk
7
9
13
risk related to business
processes and systems
regulatory risk
RISKS SPECIFIC TO THE GROUP’S OPERATIONS INCLUDE:
!
Risks associated with chemicals
management and regulatory
requirements for product safety
!
Risks associated with customer
satisfaction and innovation
!
Risks associated with ensuring
ethical research and production
principles
PLANNING IS AN IMPORTANT
ELEMENT OF PHOSAGRO
GROUP’S PRODUCT
MANAGEMENT FRAMEWORK
Planning involves complex and
comprehensive research to
determine a set of criteria for
the development of a future
product, including:
!
stakeholder requirements and
opinions about products and
services;
!
market expectations,
requirements and trends;
!
regulatory requirements
applicable to activities 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;
!
changes in factors and
risk assessment, with new
opportunities reviewed;
!
opportunities for
implementing the circular
economy principles and
contributing to UN SDGs.
The key stakeholders
for the Company in matters
of product development,
creation and application
are consumers, regulatory
bodies, and specialised research
institutes. Our stakeholder
engagement strategy is founded
on balancing interests and
effectively managing risks
and opportunities throughout
the life cycle of the Company’s
products. Engagement with
each stakeholder group is built
on the principles of transparency,
open and constructive dialogue,
and mutual respect.
Throughout 2024, PhosAgro
Group maintained a strong
focus on activities that
help make information
about the Company’s
products and services more
accessible for a wide range
of stakeholders. Customers
enjoy our digital services, which
are complementary to PhosAgro
Group’s core products and
allow us to expand consumer
opportunities, including
by offering faster access
to the relevant information and
competencies of PhosAgro
Group experts. PhosAgro
Innovation Centre provided
extensive expert support
to consumers during
the year.
STAKEHOLDER
ENGAGEMENT
Company profile
Strategic report
Corporate governance
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Appendices
Performance review
96
97
1 Regulation (EC) No. 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and
Restriction of Chemicals (REACH). The regulation took effect on 1 June 2007 and covers production and imports of chemical substances.
2 (AN) CAS 6484-52-2 EC No. 229-347-8.
3 CLP Regulation (for “Classification, Labelling and Packaging”) is Regulation (EC) No. 1272/2008 of the European Parliament and of the Council on classification,
labelling and packaging of substances and mixtures. It took effect on 20 January 2009.
4 Certified for environmental compliance under the Vitality Leaf international standard.
Foreign regulations and
certain requirements
applicable to mineral
fertilizers by the European
Union
REACH Regulation
PhosAgro Group’s products
exported to EU customers
have been registered pursuant
to Regulation (EC) concerning
the Registration, Evaluation and
Authorisation of Chemicals (REACH1).
For companies, REACH conformity
means greater responsibility
for assessing the risks associated
with the use of chemicals and
providing users with relevant
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.
CLP Regulation
The quality and safety of mineral
fertilizers produced by the Company
is confirmed by state registration
certificates, declarations of conformity,
and safety data sheets. According
to expert reviews, new fertilizer grades
of PhosAgro Group are environmentally
and toxicologically safe. The products
are properly classified, labelled
and packaged in accordance with
Regulation (EC) No. 1272/2008
(CLP Regulation).
All types of manufactured fertilizers
have safety data sheets (SDS).
FPR and ANSES
recommendations (cadmium
level requirements)
PhosAgro Group’s phosphate-
based fertilizers4 have cadmium
average content (considerably
lower than 20 mg per kg of P2O5),
making them among the safest
in the world. EU Regulation 2019/1009
(Fertilizing Products Regulation,
FPR) on fertilizers, establishes
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 no
more than 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 have a much lower
cadmium content than required
in the EU, which is reflected in our
product slogan: pure minerals
for healthy lives.
In 2022, in line with Regulation (EU)
2019/1009, PhosAgro Group 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.
KKDIK Regulation
To align with Turkey’s Regulation
on Registration, Evaluation,
Authorisation, and Restriction
of Chemicals (KKDIK), PhosAgro
obtained preliminary registration
of chemical substances imported into
Turkey as standalone substances and
their mixtures.
2024 METRICS AND HIGHLIGHTS
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 reducing
hazardous substances in its activities.
We ensure full transparency with
respect to the chemicals we use and
the content and properties of our
products.
Regulations and certain
requirements applicable
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 the Federal
Service for Supervision
of Natural Resources
(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
matter is addressed at the highest level
by the Board of Directors. Our position
on this is stated in our Code of Ethics:
the Company 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.
1 Compliance with the requirements applicable to mineral fertilizers
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,
the Group's products contain no
substances which are subject
to restrictions on their sales
in the European Union.
We produce ammonium nitrate2,
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. To assess conformity,
samples of ammonium nitrate
are sent quarterly to an accredited
laboratory 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, part 30 of Annex XVII
to REACH lists substances specified
in Part 3 of Annex VI to Regulation
(EC) No. 1272/2008 (CLP
Regulation)3 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
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1 Apatit is included in the Unified State Register
of Manufacturers of Agricultural Products, Food,
Industrial and Other Products with Improved
Characteristics
2 Registration number RA.RU.11НВ64.
3 Associação Brasileira de Normas Técnicas. ABNT
is a member of the Global Ecolabelling Network.
4 Standard on recyclable plastic containers and
packaging.
Green One
PhosAgro was the first Russian
company to be certified to
GOST R 58658–2019, a standard
for products with improved
characteristics which1 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.
In September 2024, all
manufactured agrochemicals
underwent recertification,
confirming the status of
products with improved
characteristics and retaining
the right to use the Green One
eco-label.
Vitality Leaf
The Company successfully
completed voluntary Vitality Leaf
environmental certification.
Vitality Leaf, a Russian eco-label
standard for mineral fertilizers,
is recognised by the Global
Ecolabelling Network (GEN) and
is included in Standards Map, a
global database of sustainable
development standards. Its
requirements for the content of
most heavy metals align with the
EU directive enacted on 16 July
2022. This ISO 14024-compliant
standard 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.
In 2024, the Company confirmed
its right to use the internationally
recognised Vitality Leaf eco-label.
During the year, a recertification
audit was conducted across all
Apatit sites, structured in several
phases:
• desk audit examining key activity
areas throughout all branches;
• product assessment against
environmental safety criteria
covering the entire lifecycle,
including mining and processing
of raw materials, their delivery to
the plant, storage, transportation
and use of finished products, and
packaging recycling;
• on-site audits of facilities.
Green Label
Additionally, PhosAgro
Group made a Green Label
environmental claim asserting
that the product is free
from dangerous cadmium
concentrations harmful to
human health and soils.
Certification for compliance
with Brazilian Association of
Technical Standards (ABNT)3
requirements
In 2024, the Group's
Cherepovets, Volkhov and
Balakovo production sites
and phosphate rock mining
and beneficiation facility in
Kirovsk successfully passed a
certification audit of mineral
fertilizers to confirm compliance
with requirements of the ABNT.
Key audit focus areas:
• comprehensive product
lifecycle assessment, with
special attention paid to safety
indicators of both raw material
components and finished
products;
• assessment of whether
packaging is compliant with
standard ABNT NBR 132304.
This comprehensive assessment
covered production,
environmental and social criteria,
such as:
• energy efficiency and use of
recycled materials and energy
resources;
• customer service in terms of
providing reliable information
on the properties and optimal
use of the mineral fertilizers.
The Brazilian standard contains
strict limits on levels of arsenic
and heavy metals, which
PhosAgro Group mineral
fertilizers are fully compliant
with.
The audit resulted in a certificate
of compliance with ABNT
requirements.
Voluntary ESG certification of products
GRI 2-28, 417-1
The audit was conducted by
experts from the Ecological Union
accredited certification body2. The
auditors verified that the products
meet all the requirements of the
Vitality Leaf eco-label standard for
mineral fertilizers. Fertilizers do
not contain dangerous levels of
heavy metals: cadmium, chromium,
mercury, or nickel, which can
harm the environment and human
health.
Following the completion of
state registration of new fertilizer
grades for the Volkhov branch, the
following grades were approved by
experts and certified:
• sulphur-containing nitrogen-
phosphorus fertilizer,
NP+S=14:40+7 grade;
• sulphur-containing nitrogen-
phosphorus fertilizer
NP+S=14:40+7+1Zn grade;
• sulphur-containing nitrogen-
phosphorus fertilizer
NP+S=16:20+14 grade.
Labelling in accordance with
European Union legislation
PhosAgro 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 per
kg of P2O5.
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1 Crops grown on the same plot in the previous year.
being rapidly adopted by farmers
worldwide. In 2024, PhosAgro Group
participated in the COP29 UN Climate
Change Conference in Baku, hosting
a session titled "Innovation and
Artificial Intelligence – Transformative
Technologies in Climate Action". There,
the Company showcased a wide
range of innovations already utilised
by Russian farmers and also discussed
new promising advancements.
In 2024, the audience constantly using
the Company's digital platforms and
services exceeded 157,000 unique
users.
PhosAgro Group is committed to
helping farmers efficiently calculate
mineral fertilizer applications and
easily order recommended nutrition
systems. The Company's digital
tools – PhosAgro’s online trading
platform and AgroResult mobile app
– are specifically designed for these
needs. They enable users to calculate
precise fertilizer application rates,
receive tailored recommendations
on application timing and methods,
and order our products online via any
device (computer, tablet, or mobile
phone).
The Agro Calculator supports 38 major
crops and 47 preceding crops1 relevant
to Russian agriculture. Nutrition
system recommendations draw from
a diverse product range, including the
ten most popular fertilizer brands in
PhosAgro Group's portfolio.
The Company continuously refines the
Agro Calculator algorithm to enhance
its precision. Calculations incorporate
not only yield parameters and nutrient
removal rates, but also site-specific soil
characteristics, based on scientifically
validated mineral nutrition data. The
database is regularly updated to
ensure users have access to the latest
information available. In 2024, farmers
conducted over 300,000 calculations
using the Agro Calculator service.
Pro Agro Lectorium innovative
training platform
Meeting the demand for skilled
professionals in the rapidly
growing agriculture sector is a
major concern worldwide. The gap
between educational programmes
and the industry's technological
advancements poses a significant
obstacle in training qualified experts
ready to tackle modern agro-industrial
challenges. To address this gap,
PhosAgro Group has established
For more information
on Pro Agro Lectorium,
see the Research
and Education section
Pro Agro Lectorium offers lectures in
Russian, English, and Portuguese. An
important outcome of the Pro Agro
Lectorium project was the signing
of ten agreements on scientific and
educational cooperation with BRICS
countries.
Pro Agro Lectorium, an innovative
educational programme for students,
postgraduates, university professors,
agricultural producers, and employees
of agricultural companies in Russia
and BRICS countries.
Through collaboration with universities,
Pro Agro Lectorium offers over 400
lectures and 18 additional professional
education courses with official state-
recognised qualifications. These include
"Digital Transformation of the Agro-
Industrial Sector", "Soil Health, Mineral
Plant Nutrition", "Economics of Organic
Agriculture", "Organic Farming", "Legal
Foundations of Entrepreneurial Activity
in Agriculture", and others.
RENEWAL OF EXISTING
CERTIFICATES
The monthly audience of the
Pro Agro Lectorium programme
exceeds
25,000
students
!
PhosAgro's ProAgro Lectorium
e-learning platform for foreign
farmers won the BRICS
Solutions Awards 2024, an
international competition held
as part of the BRICS Business
Forum.
!
The Pro Agro Lectorium
platform opens up career
opportunities for students,
while helping employers find
qualified workforce.
p.
118
Digital services for farmers
The agro-industrial sector is now
one of the most promising fields
for digital transformation, with
AI-powered digital technologies
!
The Agro Calculator is a
versatile software solution
capable of integrating with
various external data sources,
including weather services
and satellite monitoring
systems for agricultural land.
Additionally, its API support
functionality enables seamless
integration with other Russian
agri-tech services, with the
tool now embedded within
the leading precision farming
platforms.
!
Going forward, the Agro
Calculator will also incorporate
a low-carbon farming
component.
For more information on
our new solutions, see the
Research and Education
section
p.
106-127
PhosAgro's digital and
educational services for
customers
!
In 2024, PhosAgro underwent an
audit to renew its certificates of
compliance with ISO 9001 (GOST R
ISO 9001:2015), ISO 14001, and
ISО 45001:
• ISO 9001:2015
• GOST R ISO 9001:2015
• ISO 14001:2015
• ISO 45001:2018
!
The Company also confirmed
its compliance with the
national HACCP standard
(GOST R 51705.1 -2001) and new
requirements of the GMP+
international standard with the
transition to the new GMP+ FC
scheme 2020 for feed certification.
Having the GMP+FC 2020 and
НАССР (GOST R 51705.1 -2001)
certificates authorises production
and sale of feed additives in
Russia, CIS, and EU:
• GMP+ R1.0
• НАССР (GOST R 51705.1–2001)
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Performance review
Mineral fertilizer consumer
surveys
Between October and December
2024, we conducted a study to
assess consumer preferences among
agribusiness sector players across
all agricultural regions of Russia. The
study utilised a survey to identify
farmers' priorities regarding fertilizer
manufacturers, factors influencing
their product choices, and their
familiarity with various products,
including newly introduced grades.
The survey also explored consumers'
perceptions of services offered by
different companies.
2 Mineral fertilizer consumer surveys
!
PhosAgro Group remains the
leading manufacturer both
in terms of 2024 product
usage and anticipated 2025
purchases.
40%
of respondents indicated that
PhosAgro products accounted
for the largest share of mineral
fertilizers used on their farms
in 2024
47%
of participants intend to purchase
PhosAgro Group mineral fertilizers
in 2025
>85%
of existing customers intend to
continue using the Company’s
products next year1
The proportion of consumers with
strong awareness of the Company's
product brands has increased markedly
compared to 2023. The Company is
associated with well-recognised brand,
high product quality2, and a diverse
product range.
The Company also leads across all
three brand awareness metrics: first
mention, spontaneous recall, and
prompted awareness.
Customer satisfaction surveys
Customer satisfaction is central
to the Company’s operations. We
conduct regular research to assess
our consumers' satisfaction levels
with PhosAgro Group's products and
services. A dedicated questionnaire
is used to identify both existing and
potential customer expectations. The
collected data forms the basis for
evaluating customer satisfaction.
!
Prior to 2024, these surveys
were conducted annually,
revealing consistently high
levels of consumer satisfaction
regarding quality, product
range, and services.
Beginning in 2024,
the Company transitioned
to a biennial schedule for
customer satisfaction
evaluations.
To ensure greater coverage and
impartiality, we engaged an
independent polling agency to
conduct the survey.
Over 430 participants from eight
federal districts contributed to the
study. Notably, more than half the
respondents have over 15 years of
agricultural experience, and more than
50% identify as either business owners
or agronomists.
A key finding reveals that 87% of
participants hold higher education
degrees, while 13% have completed
secondary vocational or secondary
education. This underscores the
agricultural sector's growing
technological sophistication and
increasing demand for highly qualified
professionals.
According to the survey, consumers
prefer PhosAgro products to all other
fertilizers available in the market.
Additionally, survey participants
specifically emphasised the
Company's extensive product range
and complex fertilizer solutions as
distinctive advantages – features
uniquely attributed to PhosAgro's
portfolio.
Key brand associations for
PhosAgro:
Best known Russian producer
73%
High-quality products
67%
Wide product range
69%
Socially responsible company
67%
1 Survey respondents whose farms sourced the
largest share of their fertilizers from PhosAgro
Group in 2024 primarily intend to purchase from
the same producer as their first choice.
2 Apatit is included in the Unified State Register
of Manufacturers of Agricultural Products, Food,
Industrial and Other Products with Improved
Characteristics.
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RESEARCH, INNOVATIONS
and education
Actual
Target
Strengthening the Company’s technological sovereignty and expanding the capabilities of its IT infrastructure.
Development of artificial intelligence solutions will not only enhance production efficiency, but will also make
work more comfortable and safer for employees
• We continued implementing a domestic
automated enterprise management
system and automated process control
system
• With more than 180 robots already in
operation, we are scaling up their use
and integrating them into key business
processes
• The Company migrated its internal
communications to eXpress, a Russian
corporate platform
Actual
Target
Target
9.4
AREA, STRATEGIC GOALS AND HIGHLIGHTS OF 2024
Improvement of production processes to ensure high quality and eco-friendliness of our products,
including a process for the development of new products that respects safety and the environment
throughout its life cycle
• Efforts are underway to develop solutions for mining and
processing diatomite with a view to producing our own
vanadium sulphuric acid catalyst
• We continue to boost in-house power generation by capturing
heat from chemical reactions in sulphuric acid production
• A project is underway to treat mining water from the Kirovsky
and Rasvumchorrsky mines
• In collaboration with the Kolsky Research Centre of the Russian
Academy of Sciences, we are advancing research on ore
beneficiation and improving the efficiency of recovering valuable
components into mineral concentrates
Target
12.4
1 IMPROVEMENT OF PRODUCTION PROCESSES
2 DIGITAL TRANSFORMATION OF PRODUCTION-RELATED BUSINESS PROCESSES
3 IMPROVEMENT OF THE PRODUCT MIX
Promotion of sustainable farming practices, development of new fertilizer grades for increased
availability of best practices in farming
• We conducted in-depth testing to
study the carbon footprint of traditional
mineral fertilizers and their biologised
alternatives
• We patented a technology for
producing biologised fertilizers,
securing two patents for innovative
methods of manufacturing biologised
NP fertilizers
• We developed prototypes of protected
feed grade urea, offering a safe and
efficient source of non-protein nitrogen
for cattle
Actual
Target
Target
2.4
4 APPLICATION IMPROVEMENT
Soil safety, biodiversity conservation, fertility growth and lower GHG emissions in agricultural production and
throughout the product’s life cycle from mine to plate
• We tested carbon dioxide sequestration in forage grasses using
the Company’s fertilizers, including locally cultivated forage crop
varieties
• We received the results of tests conducted to study the carbon
footprint of mineral fertilizers and their biologised alternatives.
The tests showed a reduction in carbon footprint by 8–35%
• We launched a pilot to establish an interregional testing network
for evaluating the carbon footprint of the Company’s fertilizers
• We conducted a production trial using biologised adaptive
plant nutrition systems and a biological preservative for forage
conservation
• The Company continues to grow its digital learning
programme for Russian and foreign farmers, Pro Agro
Lectorium
• We launched the RECSOIL project in Russia in partnership
with Lomonosov Moscow State University and UN FAO
Actual
Target
Target
13.1, 13.2, 15.1
5 COOPERATION WITH UNIVERSITIES AND RUSSIAN
AND INTERNATIONAL R&D CENTRES
Implementation of a comprehensive phased programme to support sustainable agricultural practices and support young scholars
in running sustainable development projects
• The BRICS International School for Sustainable Agriculture was launched, bringing together 60 students from six BRICS nations
Actual
Target
Target
4.4, 17.16, 17.17
1 AEMS stands for automated
enterprise management system.
2 APCS stands for automated
process control system.
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STRATEGY
The Company’s innovations in
fertilizer production are a sustainable
development driver in agriculture and
make a meaningful contribution to
strengthening cooperation for food
security.
PhosAgro Group seeks to ensure
efficient and safe agricultural
production and develops innovative
fertilizers while also working hard to
minimise the environmental impact
of mineral fertilizer application and
production. In doing so, the Company
relies on Russian and international
experience and leading research and
production practices.
Our Strategy to 2025 envisages efforts
to increase the share of innovative
products, develop technology and
production, and ramp up potential for
cooperation with stakeholders and
partners in the area of innovation and
research.
In 2023, the Company developed the
Import Substitution Strategy and
the Import Substitution Programme,
ensuring systematic migration to
domestic software platforms and the
implementation of key infrastructure
projects.
MANAGEMENT APPROACH
GRI 3-3
Our innovation, product
development, and research and
education management system is
seamlessly integrated into the overall
management framework covering all
Company processes.
PhosAgro Group runs the Samoilov
Scientific Research Institute for
Fertilizers and Insectofungicides
(NIUIF), Russia’s only institute
specialising in this area.
The Group actively cooperates with
the Ministry of Agriculture, the Russian
Academy of Sciences, federal research
centres, universities, innovation funds,
and international R&D organisations
(University of Belgrade and Brazil’s
Federal University of Lavras), along
with recognised international
organisations with a view to providing
broad support to humanitarian and
research-intensive projects.
Apatit’s IT Department established
a division for developing artificial
intelligence solutions to drive
the integration of advanced AI
technologies into the Company’s
key business processes. The team
is focused on three core areas:
machine learning, video analytics,
and generative AI. The computing
capabilities are supported by a GPU-
powered server cluster housed by the
Company’s corporate data centres.
Research and education fall within the
remit of the Technical Development
Department and are discussed at
the meetings of the Strategy and
Sustainable Development Committee
of the Board of Directors. These
matters are subject to an annual
review by the Board of Directors.
2024 AWARDS
!
In December 2024, PhosAgro
Group won the competition
ComNews Awards.Best Solutions
for Digital Economy.
!
In November 2024 PhosAgro’s
electronic HR document
management system received
an honour at CNews Awards 2024.
!
PhosAgro’s ProAgro Lectorium
e-learning platform for foreign
farmers received a well-
deserved praise and won at the
BRICS Solutions Awards2024,
an international competition
held as part of the BRICS
Business Forum.
PhosAgro Innovation Centre was
established in 2018 to create cutting-
edge products and technologies in
partnership with research institutions
in Russia and abroad. The NIUIF and
PhosAgro Innovation Centre bring
together world-class researchers,
engineers, and experts from various
areas to address the most complex
operational issues as well as applied
and fundamental research problems.
The Company’s operations span
the entire production cycle from
mining apatite-nepheline ore
and processing it into mineral
fertilizers to their end use by
consumers.
Combined with our efforts to
develop advanced and efficient
plant nutrition systems, this
creates a wide network of
stakeholders which we seek
to engage with on a priority
basis. In its scientific and
educational pursuits, the
Company collaborates with
such stakeholders as scientific
institutions, university research
teams, the global community
and international organisations.
To drive innovations and the
latest information technologies,
we work closely with the
Company’s departments and
divisions, all production units
across the Group’s branches,
and PhosAgro’s employees
and counterparties. Our key
stakeholders also include
regional authorities, non-
governmental organisations,
schoolchildren, their parents and
educators.
We are committed to fostering
partnerships with the scientific
community, international
organisations and universities
through joint working groups
and collaborative projects aimed
at driving innovations, enhancing
the reputation of Russian science,
and unlocking its full potential.
STAKEHOLDER ENGAGEMENT
In 2024, NIUIF celebrated its
105th anniversary
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Performance review
MED 4
Investments in R&D
activities and development
of new products, RUB mln
RISKS AND OPPORTUNITIES
Among other things, the following strategic risks affect our research
and educational objectives
environmental risk
RISKS SPECIFIC TO THE COMPANY’S OPERATIONS INCLUDE:
!
non-compliance of products’
manufacturing process and their use
with carbon footprint standards and
other environmental requirements;
!
insufficient environmental
friendliness of production processes;
!
non-alignment of plant nutrition
systems with specific farming
conditions;
!
lack of awareness about the
Company’s products and services,
coupled with the level of expertise
prevailing among agricultural
professionals both in Russia and
abroad.
7
13
19
regulatory risk
climate risk
For more information, see the
Strategic Risks section on page
p.
66–75
2024 METRICS AND HIGHLIGHTS
Improvement of ore extraction
and processing
The Company is developing key
technical solutions for mining and
processing diatomite with a view to
producing its own vanadium sulphuric
acid catalyst. In 2024, we developed
as-built documentation for the design
and construction of the vanadium
sulphuric acid catalyst plant.
In collaboration with the Kolsky
Research Centre of the Russian
Academy of Sciences, we continue to
explore ore beneficiation and ways
to increase production volumes. The
Company is developing a roadmap for
making products from low-grade and
off-balance ores, tailings of ANBP-1, 2
and 3, and slurry discharges. In 2024,
we collected samples and transferred
them to the Kolsky Research
Centre so that it could develop the
concentrate for further research into
production options.
To enable the mining of a block pillar
under the Saami pit, we continue to
divert the Gakman and Loparskaya rivers.
The project to develop the reserves
of the Rasvumchorr Plateau deposit
through underground mining is
now subject to design supervision
and construction control, with the
diversification of coolants at the main
ventilation and hot-air heating unit
(use of liquefied natural gas at the
Rasvumchorrsky mine) designed to
improve energy efficiency and reduce
pollutant and GHG emissions.
Production efficiency
improvements and
introduction of elements of
circular economy
Improving the efficiency of using
resources, including water, and
increasing the energy efficiency of
production processes are crucial tasks
for the Company.
2,635.3
2,481.3
2,026.3
2022
2023
2024
1 IMPROVEMENT OF PRODUCTION PROCESSES,
SOLUTIONS AND PROJECTS BY NIUIF
!
In 2024, we developed
engineering documentation
and ensured design
supervision for the
construction projects at
Apatit’s Balakovo branch.
These new facilities are
intended to boost in-house
power generation by
capturing heat from chemical
reactions in sulphuric acid
production.
With the loads of process systems
increased following the upgrade
of wet-process phosphoric acid
production units in Cherepovets,
Volkhov and Balakovo, we reduced our
specific power consumption.
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.
!
Development of proprietary
technologies and import substitution
solutions
!
Introduction of new fertilizers with
enhanced environmental safety,
improved biological availability, and
adaptability to the climate change
!
Opportunities related to the
development of partnerships in science,
education, and awareness raising
!
At the same time, in addressing climate
change, related soil degradation
processes and the growing world
population, the Company recognises
its role as a responsible producer that
contributes to global food security.
PhosAgro is actively engaged in:
1. developing sustainable products and
nutrition systems;
2. promoting responsible agricultural
practices;
3. combating climate change across
value chains.
To achieve these goals, we leverage our
accumulated expertise and innovative
potential, while also working closely
with partners in the fields of science and
business.
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2 DIGITAL TRANSFORMATION OF PRODUCTION-RELATED
BUSINESS PROCESSES
Implementation of a domestic
automated enterprise
management system and
automated process control
system
PhosAgro Group is a member of the
Chemistry and Pharmaceuticals
industrial competency centre (ICC).
In this capacity, it acts as the anchor
customer for the projects to introduce
a domestic automated enterprise
management system and automated
process control system. These projects
are co-funded by the state through the
Skolkovo Foundation and are being
implemented at the Cherepovets
production site.
In 2024, the development of the
automated enterprise management
system was completed, and now it
is being piloted. The new enterprise
management system offers
comprehensive data collection tools
and data visualisation across the
entire range of processes, calculates
technical and economic indicators,
and generates production reports.
The platform architecture is based
exclusively on domestic solutions. The
project involved the creation of more
than 800 mnemonic diagrams and
collection of over 60,000 indicators
from 33 sources. To populate the
system with data, experts from
PhosAgro’s Engineering Centre
developed special software solutions
to automatically transfer calculations
and mnemonic diagrams from the old
system to the new one. The platform’s
scaling to other production sites is
slated for 2025–2026 following a test
run and performance analysis.
The second project aims to develop
an automated process control system
and implement it at continuous
chemical production sites. Launched
in late 2022, the project focuses on
replacing imported software and
hardware with domestic products.
The automated enterprise
management and process control
systems are of crucial importance
for chemical production, as they
are indispensable for today’s
management approaches and high
level of process automation. Migration
to domestic software ensures not only
technological independence, but also
the stability of production processes.
Import substitution project
to replace PhosAgro’s
robotisation platform
The Company presented a project on
the import substitution of its business
process robotisation platform, which
covers all of the Group’s companies.
The project to introduce a domestic
platform was launched back in
2023. The application of robotics
led to a 34% reduction in the time it
takes to prepare corporate reports.
Thanks to the project, the Company
migrated some 50% of its business
processes to the Russian platform.
The development approach was
standardised through the introduction
of a coding agreement, best practices,
version control systems and code
compliance checks. This helps
shorten implementation time, reduce
maintenance costs, and improve
business transparency.
!
To improve the quality
of discharged water, we
embarked on a comprehensive
reagent selection exercise in
2024, while also developing
engineering documentation
for the project to treat mining
water from the Kirovsky and
Rasvumchorrsky mines.
The NIUIF team completed a
broad range of tasks related to
increasing performance, including
the development of draft technical
specifications and the validation
of measurement methods for food
grade and technical grade purified
phosphoric acid and feed phosphates,
and state registration of the
Company’s new fertilizer grades.
One of the standout projects involves
the development of technical solutions
to extend the maintenance intervals
for sulphuric acid systems to three
years. In 2024, we developed key
technical solutions for the tail gas
treatment unit designed to reduce
sulphur dioxide content in emissions
from sulphuric acid systems.
Another important strategic
task completed in 2024 was the
development of key technical
solutions for the liquid sulphur dioxide
production unit.
ECTLM (Unified Centre for
Transport Logistics Management)
visualisation system, which serves
as a digital dispatcher for railway
transport management
Mobile voice patrol, which
enables track walkers to use voice
recognition for filling out complex
checklists
INNOVATIVE DIGITAL PROJECTS2 COMPLETED IN 2024:
Energy Management system,
which predicts electricity
consumption at the Kirovsk
branch through big data analytics
Development and scaling of
predictive diagnostics for the
central discharge ball mill at the
Kirovsk branch
1 Enterprise Resource Planning, a software
package for integrated management of
enterprise business processes
2 Not included in the import substitution
programme.
substitution of the RPA software
robot development system with
the domestic RPA PIX Robotics
solution;
implementation of the domestic
Vinteo video conferencing system
to replace Cisco;
migration of internal
communications to eXpress,
a Russian corporate platform;
1
2
3
4
5
6
7
8
installation of domestically
produced Protey PBX at the
Cherepovets and Kirovsk sites;
replacement of Cisco ASA firewalls
with the domestic Continent
solutions;
overhaul of the Kirovsk site’s data
centre, including the upgrade of the
uninterruptible power supply system
using domestic alternatives;
launch of a project to implement
Global ERP, a Russian ERP
system1, as a replacement for
Oracle eBS;
start of migration from Microsoft to Russian software, including Astra Linux
OS, R7 office suite and the domestic directory service.
Other import substitution projects completed in 2024:
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PhosAgro’s electronic HR
document management
system
Apatit’s electronic HR document
management system (EPDMS)
powered by WSS Docs started
operating in a pilot mode
in April 2024. As a result, the key
PhosAgro Group’s product mix
comprised over 58 grades of fertilizers
of all types in 2024. The Company’s
Strategy focuses on developing
products that address the evolving
challenges faced by farmers, including
solutions mitigating the impact of
climate change. PhosAgro Group
is currently preparing an updated
version of its Development Strategy
to 2030, which will encompass the
production of:
• micronutrient fertilizers and NP/
NPK blends with micronutrients and
mesoelements;
• water-soluble fertilizers;
• feed additives and feed phosphates;
• biological and biologised fertilizers;
• biological crop protection agents;
• growth enhancers.
The primary focus of all of these
solutions is biologisation of agriculture,
improvements in the quality of
agricultural products, reduction of the
environmental impact of chemicals
in intensive farming, and introduction
of specialised niche products, which
will bolster crop yields and improve
product quality, while also mitigating
the climatic and environment impact.
Development of new
fertilizers
Development of biologised
fertilizers
In 2024, PhosAgro Group continued
its research into the impact of
biologisation on GHG emissions
from fertilizers. In partnership
with the Russian State Agrarian
University – Moscow Timiryazev
Agricultural Academy, the Caspian
Federal Agrarian Research Centre
of the Russian Academy of Sciences
(CFARC of RAS) and Ulyanovsk
Research Institute of Agriculture (URIA,
a branch of Samara Federal Research
Centre of the RAS), the Company
ran in-depth trials to study nitrogen
emissions resulting from the use of
both traditional mineral fertilizers and
their biologised alternatives. The trials
took place in the Astrakhan Region
on irrigated lands typical for arid areas
of risky farming, which are especially
vulnerable to climate change and
associated stress factors for plants
and soils. Additional trials were carried
out in the Ulyanovsk Region on
chernozem soils with average national
crop yield levels and without irrigation.
The trials clearly demonstrated that
biologised fertilizers contributed to
an overall increase in biomass and a
notable boost in marketable crop yield.
HR documents that are essential
for employees’ daily work or are
generated as part of other processes
were fully digitised.
With the new system, employees
can produce HR documents from
a desktop, a shared workstation
or a mobile app. The process was
3 IMPROVEMENT OF THE PRODUCT MIX, SOLUTIONS FROM
THE INNOVATION CENTRE
streamlined to just a few steps:
all the employee has to do is fill
out a few fields in WSS Docs, and
then the required document will
be generated automatically. WSS
Docs also supports electronic
signature keys, which are issued,
renewed and revoked by PhosAgro’s
Certification Authority.
The results of testing biologised and non-biologised fertilizers under different climatic conditions
Fertilizers
Nitrogen dosage,
kg of nutrient / ha
CFARC of RAS (irrigation)
URIA (no irrigation)
Grain, t/ha
Straw, t/ha
Grain, t/ha
Straw, t/ha
Spring wheat
Control (no fertilizer)
0
2.04
3.07
2.58
1.97
Urea N 46.2
30
3.48
5.22
3.13
2.43
120
6.02
8.23
3.16
2.45
Bio-urea bio-N 46.2
30
4.87
6,98
3.20
2.51
120
6.58
9.22
3.23
2.49
NPK(S) 10:26:26(1)
12
4.23
6.21
3.33
2.59
46
4.27
5.81
3.54
2.77
Bio-NPK(S) 10:26:26(1)
12
5.12
7.35
3.05
2.36
46
4.34
5.94
3.33
2.59
Field peas
Control (no fertilizer)
0
0.82
1.11
2.57
1.99
Urea N 46.2
30
4.20
5.85
2.96
2.33
60
5.46
7.46
2.89
2.26
Bio-urea bio-N 46.2
30
5.56
7.62
3.04
2.39
60
5.62
7.30
3.14
2.48
NPK(S) 10:26:26 (1)
12
3.93
5.64
3.16
2.50
46
1.97
2.76
3.06
2.41
Bio-NPK(S) 10:26:26 (1)
12
5.20
7.28
3.25
2.58
46
2.26
3.16
3.14
2.48
The trials demonstrated that using
the Company’s biologised products
(compared to traditional fertilizers)
led to higher crop yields at the same
application rate. Notably, these
products also stimulated greater
straw biomass production. When
incorporated into the soil, this
additional biomass can contribute to
soil carbon accumulation.
In 2025, the Company plans to
conduct second-year interregional
trials on similar crops. These trials will
help expand and enrich the data array,
offering deeper insights into how
environmental and climatic factors
influence nitrogen emissions from
fertilizers applied at fields. They will
also support the development of a
mathematical model to predict and
assess N2O emissions.
Currently, carbon footprint calculations
rely on standardised emission factors
and the IPCC1 methodology, according
to which the rate of fertilizer-related
nitrous oxide (N2O) emissions is
estimated at 1% of the calculated
nitrogen content in a specific fertilizer
grade. However, the Company’s field
experiments suggest that actual
emissions may be lower. The emission
rate depends on factors such as the
dosage of nitrogen-based fertilizers,
fertilizer form, composition of the
nutrition system, crop type, soil
characteristics and climate conditions
(see the table N-N2O emission factor
for different fertilizers).
1 Intergovernmental Panel on Climate Change.
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1 At an application rate equivalent to 50 kg of nitrogen per hectare for soft spring wheat (Pamyati Konovalova variety) grown on soddy medium-podzolic
light-loam soil.
2 When applied jointly with monocalcium phosphate.
N-N2O emission factor for different fertilizers1
Option
Emission factor: N-N2O, %
Urea N 46.2 (grade B, granulated)
0.74
Nitrogen-based fertilizer bio-urea bio-N
46.2
0.65
NP 12-52
0.71
bio-NP 12-52
0.63
NP 18-46
0.68
bio-NP 18-46
0.55
NPK (S) 15:15:15 (10)
0.59
Bio-NPK(S) 15:15:15(10)
0.56
NPK(S) 10:26:26 (1)
0.62
Bio-NPK(S) 10:26:26(1)
0.56
NPK(S) 8:20:30 (2)
0.57
Bio-NPK(S) 8:20:30(2)
0.52
An important task planned for 2025
will consist in integrating the results
of biologised fertilizer trials and the
data on nitrous oxide emissions
into PhosAgro’s Agro Calculator.
This metric will be synergised with
other parameters to help calculate
customised plant nutrition systems.
With the Agro Calculator, users
will be able to evaluate the carbon
footprint of agricultural products and
streamline relevant nutrition strategies
to minimise emissions, which is of
particular importance for products
exported to markets with GHG
border tariffs.
The Company plans to launch full-
scale production of biologised mineral
fertilizers in 2025, with the first batch
scheduled for release in 2026. The
product line will include N, NP and
NPK fertilizers, allowing for smooth
integration of a biological component
into the existing nutrition system
through replacement of the traditional
counterpart with a view to ensuring
seamless transition to biologised
farming. The technology enables the
application of high concentrations
of biologically active strains that
are resilient to concentrated
inorganic salts.
Manufacturing and sales of new
products
Developed by PhosAgro’s Innovation
Centre, ApaSil is designed for seed
pre-treatment and foliar application
on a wide range of agricultural crops
and ornamental plants. Field trials
in different regions and on different
crops have shown that this product
helps plants cope with the stresses
associated with drought and diseases.
Between 2019 and 2024, PhosAgro’s
Innovation Centre conducted a
comprehensive analysis to identify
biological solutions suitable for
Russian agriculture. Based on this
research, the Group will expand its
product range in 2025 with biological
agents developed by partner
companies such as Innopraktika,
Bisolbi Plus, Biona Group, and Flora-Si.
The products will be sold through
a network of 16 official regional
distributors.
New products supporting agricultural biologisation
Product name
Purpose
ApaSil
Adaptogen
Metabacterin
Biological fungicide
Fermasil
Dry silage inoculant
Enzymesporin
Probiotic feed additive
Extrasol
Biological growth enhancer
BisolbiSan
Biofungicide
Energia-M
Combined growth enhancer
Effect Bio, SC
Stubble decomposer
Azofix, ZH (peas, lentils)
Inoculant
Azofix, ZH (chickpeas)
Inoculant
BioConsort Start
Amino acids for seed treatment
BioConsort Vegetation
Amino acids with micronutrients
Probactil
Liquid silage inoculant
Subtisporin
Liquid probiotic feed additive
Development of feed additives
In 2024, PhosAgro Innovation Centre
and the Mendeleyev University of
Chemical Technology developed
prototypes of protected feed grade
urea, offering a safe and efficient
source of non-protein nitrogen for
cattle. Jointly with the Skryabin
Moscow State Academy of Veterinary
Medicine and Biotechnology, we
conducted production trials of
the Enzymesporin2 feed additive,
which increased the live weight of
calves by 8.7%. The products will
be manufactured using our unique
proprietary technology, and in 2025
we plan to patent and develop the
technology to produce this additive.
In 2025, we plan to join efforts
with the Skryabin Moscow State
Academy of Veterinary Medicine
and Biotechnology to test new feed
additives that help reduce greenhouse
gas emissions from milk production
and address the prevention and
treatment of cryptosporidiosis
and parasitic infestations in farm
animals. When used in conjunction
with existing therapeutic products,
the solutions we are developing will
enable comprehensive animal care.
In 2023, at the livestock breeding
complex, a branch of the Federal
Williams Research Centre of Forage
Production and Agroecology, we
started trials of a biologised forage
grass nutrition system with the
Company’s fertilizer system, which
will be completed in 2026. The data
obtained will make it possible to
develop a comprehensive forage
growing programme and an animal
nutrition system based on PhosAgro
Group’s products.
Production trials of Enzymesporin probiotic feed additive on calves in 2024
Item
Population at the
beginning of the
experiment, AUs
Survival, %
Average live
weight at the
beginning of the
experiment, kg
Average live
weight on the 40th
day, kg
Live weight ratio
in relation to
benchmark, %
Benchmark
5
100
33.0
45.8
100
Monocalcium phosphate +
Enzymesporin
5
100
34.2
49.8
108.7
Furthermore, NIUIF upgraded
methods to control feed phosphate
production and improve product
quality. The project focused on
enhancing the consumer properties
(reducing the caking and dusting of
the finished product) of feed-grade
MCP produced by the Balakovo
branch of Apatit.
!
In 2024, we supplied to
agricultural producers 13,980
tonnes (vs 5.1 tonnes in 2023) of
the ApaSil adaptogen, a product
developed by PhosAgro's
Innovation Centre.
In 2024, we patented
a technology for producing
biologised fertilizers, securing
two patents for innovative
methods of manufacturing
biologised NP fertilizers.
Patents for the production
of nitrogen-based and NPK
fertilizers are expected
in 2025.
In 2024, the Company obtained
a patent for the production
of ApaSil, with registration in
the FSU countries expected
to start in 2025.
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Pro Agro Lectorium training
programme
Since 2021, PhosAgro Group has
been running Pro Agro Lectorium,
an new training programme for
a broad audience, students, and
university professors, reaching out
to 47 agricultural universities across
Russia. Most importantly, the platform
is convenient and serves as a source of
up-to-date information on innovations
in the industry from leading scientists
and experts for agricultural producers
and employees of agricultural
companies in Russia and BRICS.
Today, the platform features over
400 lectures, 18 additional professional
education courses culminating in the
awarding of official state qualifications.
Pro Agro Lectorium offers lectures in
Russian, English, and Portuguese.
In ProAgro Lectorium, university
students can access modern expertise
in agriculture and agricultural sciences
and better understand the nature
of their future profession, graduates
can use lectures for a smoother
onboarding at a new job, teachers can
align their knowledge with the latest
scientific developments and self-study,
and seasoned farmers can receive
additional training.
Equal opportunities and unhampered
access to knowledge make it easier to
adapt university curricula to modern
labour market requirements, providing
students with relevant knowledge and
practical skills.
Over 140 speakers from Russia, China,
India, Brazil, South Africa, and other
countries have already contributed
lectures in 22 areas to the platform.
Research as part of
PhosAgro’s carbon farm
project in the Vologda region
As part of a long-term climate action,
the Company has set up a carbon
farm to study CO2 compensation,
absorption of carbon emissions by
various ecosystems, as well as to test
hands-on solutions for establishing
large-scale carbon farms in agriculture
and forestry.
In 2025, PhosAgro Group and
the Centre for Forest Ecology
and Productivity of the Russian
Academy of Sciences will conduct
a comprehensive analysis of the
two-year dynamics of carbon
accumulation.
Key features of PhosAgro’s carbon farm project
Location
Cherepovets and Vologda districts of the Vologda region at a distance of 100 km from each other
Site area
100 ha of forest plantation and 100 ha of agricultural plantation
Study period
2022–2025 with a possible extension of up to 100 years within the forest plantation
Project participants
• PhosAgro Group
• Vologda region government
• Russian Academy of Sciences
Specifications and results
of experiments in forest
plantations
• 24 experimental forest sites at the carbon farm
• The technology of accelerated seedling cultivation was perfected: the Company’s fertilizers
reduced the period for coniferous species from seven to three years.
• Data were obtained on birch, willow, aspen, spruce, and pine survival (23% lost with a benchmark
of 50%), cost-effective soil preparation and crop planting practices.
• Methods were developed to calculate the carbon pool of forest sites with a total absorption
of 15.98 t of CO2-eq. / year, and 5.2 carbon units / ha / year using the CDM methodology.
Total sequestration: 20,092 carbon units within 40 years
Specifications and
results of experiments
in agricultural landscapes
• Study of the absorption capacity of various crops (forage grasses, grain cereals, and pulse crops)
with varying organomineral nutrition regimes.
• An additional average annual carbon sequestration of 2.6 carbon units / ha with a total accumulation
of 13.69 t of CO2-eq. / year and an increase in total yield to 11.6%
4 APPLICATION IMPROVEMENT
• together with the Russian
Agrarian State University –
Moscow Timiryazev Agricultural
Academy, develop calculation for-
mulas for assessing the carbon
footprint of the plant nutrition
system for 38 crops, which will be
Cutting-edge biologised
adaptive plant nutrition
systems
In 2023–2024, experts from the
Company and the Federal Williams
Research Centre of Forage Production
and Agroecology ran a production
trial to cultivate Verko alfalfa using
biologised adaptive plant nutrition
systems and a biological preservative
for forage conservation.
Two biofertilization options were
tested during the trial. The first option
involved additional use of the Extrasol
biological agent and the ApaSil
adaptogen (trial plot 1), while
the second one relied on replacing
ammonium nitrate with biologised
urea and using the same nitrogen
dose along with ApaSil (trial plot 2).
PLANS FOR 2025:
integrated into the Agro Calculator.
Further tests will enable validating
the methodology and calculation for-
mulas of Agro Calculator for three cli-
matic zones and three types of soils;
• fine-tune Agro Calculator simula-
tion models on the basis of a trial on
growing ten different crops, which
is planned for 2025 at PhosAgro’s
farming station in Zemlyaki;
Green mass weight in 2023, t/ha
Green mass weight in 2024, t/ha
Total in two
years, t/ha
1st cut
2nd cut
3nd cut
Total
in 2023
1st cut
2nd cut
3nd cut
Total
in 2024
Check strip
21.44
12.95
8.80
43.19
16.81
17.82
8.04
42.37
85.56
Trial plot 1
21.66
14.18
11.60
47.44
21.12
19.70
10.20
51.02
98.46
Trial plot 2
23.77
15.48
12.50
51.75
27.66
23.86
11.40
62.92
114.49
The programme aims to provide
unique up-to-date expertise
in various farming practices. It
includes lectures on topics such
as agronomy and agrochemistry,
crop and livestock production,
innovations and digitalisation
in agriculture, economics and
responsible farming with
free access for the target
audience.
Key results of the PhosAgro Innovation Centre in 2024:
1
2
3
4
8
Trials were carried
out to explore carbon
dioxide sequestration
in forage grasses
using the Company’s
fertilizers.
Results of testing to study the carbon
footprint of fertilizers and their biologised
counterparts were obtained at the
Russian State Agrarian University –
Moscow Timiryazev Agricultural Academy.
The nitrogen loss ratio of mineral fertilizers
is 0.62–0.94% and 0.59–0.83% for their
biologised counterparts with an 8
to 35% reduction in the carbon footprint
of the produce.
The centre and the Izrael Institute of Global Climate and Ecology (IGCE)
are drafting practical recommendations for 100 crops, which will include
50 subsections (methodologies) to be used by farmers. The work helped
us acquire experience in using the equipment to estimate carbon gain in
ecosystems and the carbon footprint of products.
Preliminary calculation formulas
were created for the Agro
Calculator for all crops and soil
types.
A pilot was launched to establish
an interregional testing network
for evaluating the carbon footprint
of fertilizers at the Ulyanovsk Research
Institute of Agriculture (URIA, a branch
of Samara Federal Research Centre of
the RAS), the Caspian Federal Agrarian
Research Centre of the Russian
Academy of Sciences (CFARC of
RAS), and the Russian Agrarian State
University – Moscow Timiryazev
Agricultural Academy.
• on the basis of the trial, the IGCE
will provide practical recom-
mendations for the voluntary
organisation of climate-friendly
agricultural practices for five
areas (100 crops).
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In trial plot 1, where the Extrasol
biological agent and the ApaSil
adaptogen were used, the green
mass harvest per area unit for two
years was 98.46 t/ha, which is 15%
higher than in the ordinary
practice.
The maximum yield was achieved
in trial plot 2, in the variant where
crops were fertilized with biologised
urea and treated with the ApaSil
adaptogen – 114.49 t/ha of green mass
in two years (six cuts), which is 33.8%
higher than initially.
Product quality for biologised nutrition
systems was also higher, suggesting a
high potential for biologised nutrition
systems to intensify farming, reduce
production costs, improve feed quality
for dairy farming, and increase carbon
sequestration by forage grass systems.
2023, two cuts
2024, three cuts
Dry matter, t/ha
Crude protein,
t/ha
Metabolic
energy, GJ/ha
Dry matter, t/ha
Crude protein,
t/ha
Metabolic
energy, MJ/ha
Check strip
7.34
1.22
69.950
9.43
1.65
88.240
Trial plot 1
7.61
1.24
72.585
11.91
2.06
108.050
Trial plot 2
8.20
1.42
78.987
13.46
2.52
124.300
Thus, the new types of fertilizers
developed by PhosAgro help
agricultural producers increase
crop yields despite the constraints
of limited land resources while also
improving forage quality, reducing
carbon footprint, enhancing soil
fertility, and increasing production
margins.
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
5 COOPERATION WITH UNIVERSITIES AND RUSSIAN
AND INTERNATIONAL R&D CENTRES
An important project deliverable
should be a model of carbon
accumulation in soil and calculation of
the product’s carbon footprint, which
will be integrated into PhosAgro’s
Agro Calculator. In addition, the
Company plans to develop model
methodologies for climate projects
similar to RECSOIL, which farmers
can use as a template for registering
projects as climate projects without
the costly step of developing a
customised methodology. All this
will contribute to building a pool of
carbon units formed by nature-based
projects, and, on top of that, establish
an effective mechanism for verifying
the carbon footprint of premium low-
carbon agricultural products.
Partner
Key results in 2024
The carbon farm project
continued with inventory of
seedlings made and data
obtained on carbon accumulation
by ecosystems with grain-grass
crop rotation and on the cost of
carbon units
Work is underway to improve
the Agro Calculator
14 research organisations
participated in the development
of new fertilizers and feed
additives, completing a total of
18 research projects
Work is underway to
develop low-carbon
agricultural practices for
100 crops
Further progress was made in
implementing other projects involving
leading Russian scientists to develop
and promote new products:
• biotechnologies and feed additives
developed;
• registration for new biologised
mineral fertilizers launched;
• a pipeline of new promising projects
built;
• three patents obtained, 18 videos
and 10 publications issued, including
three scientific articles
RUSSIAN ACADEMY
OF SCIENCES
Cooperation across a range of areas
related to the climate agenda and low-
carbon transition plan
RECSOIL PROJECT
RECSOIL is an international
mechanism established by the UN
Food and Agriculture Organisation
(UN FAO) for scaling up sustainable
soil management with a focus on
increasing soil organic carbon and
improving overall soil health.
In 2024, PhosAgro Group
supported by UN FAO and in
partnership with the Soil Science
Faculty at Lomonosov Moscow
State University and AgroGard
launched RECSOIL project
in Russia.
The project’s key objective is
to improve soil carbon content
while reducing greenhouse gas
emissions through sustainable soil
management practices.
2024 HIGHLIGHTS:
• suitable fields (sites) selected for pro-
ject implementation;
• soil of the selected fields described;
PLANS FOR 2025:
• adapt low-carbon agricultural
practices in the fields;
• produce crops with low carbon
footprint;
• conduct training jointly with UN
FAO;
• register RECSOIL as a climate
project.
• soil samples taken for lab analysis
for a set of physical and chemical
indicators.
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As part of the 10th IUPAC International Conference on Green Chemistry in Beijing,
PhosAgro jointly with UNESCO and IUPAC presented young scientists from Russia,
Brazil, Portugal, Pakistan, Tunisia, and the UAE with grants for green chemistry
research for the eighth time. Over the course of eight rounds of the programme,
more than 1,000 applications from young researchers across 120 countries were
submitted, with grants awarded to 55 scientists from 33 countries.
In 2024, PhosAgro Group was the general partner at the grant award ceremony of
UNESCO-Russia Mendeleyev International Prize.
Partner
Key results in 2024
UNESCO
Green Chemistry for Life, a joint
grant programme by PhosAgro,
UNESCO and the International Union
of Pure and Applied Chemistry
(IUPAC)
Financial support and scientific
guidance for young scientists doing
research in emerging Green Chemistry
technologies to address environmental
challenges and ensure sustainable use
of natural resources.
UNESCO-Russia Mendeleyev
International Prize in Basic Sciences
The prize aims to foster scientific
progress, basic research
popularisation, and international
cooperation. The prize is the only
award granted for sustainability-
focused research in fundamental
sciences under the auspices of
UNESCO.
Partner
Key results in 2024
The sixteenth session of the IUPAC Summer School on Green Chemistry took place
at Ca’ Foscari University of Venice, Italy from 1 to 7 July 2024. It brought together
70 young scientists from 33 countries, including 28 African researchers. Since the
project’s inception, it has attracted over 1,000 young researchers from 75 countries.
PhosAgro was the general sponsor and partner of the 22nd Mendeleyev Congress
on General and Applied Chemistry. Some 4,000 participants from 38 countries
attended the Congress, including leading Russian and foreign chemists.
INTERNATIONAL
UNION OF PURE AND
APPLIED CHEMISTRY
(IUPAC)
Summer Schools on Green Chemistry
project run jointly by PhosAgro,
IUPAC and Green Sciences
for Sustainable Development
Foundation
The project is an educational initiative
to improve the qualifications of young
scientists engaged in green chemistry
with a view to promoting innovations.
22nd Mendeleyev Congress on
General and Applied Chemistry
The Mendeleyev Congress is held once
every five years under the auspices
of IUPAC. In 2024, the Congress was
dedicated to the 300th anniversary
of the Russian Academy of Sciences
and the 190th anniversary of Dmitry
Mendeleyev.
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As part of the project, PhosAgro supports UN FAO in implementing the Global
Soil Doctors Programme and the Creation of the Global Soil Laboratory Network
(GLOSOLAN). Currently, the global network comprises over 1,000 laboratories across
160 countries As part of the Global Soil Doctors Programme, over 11,000 farmers
from 20 developing countries. Are improving their knowledge of soil management.
Partner
Key results in 2024
On the occasion of the World Soil Date, PhosAgro, AgroGard, and Lomonosov
Moscow State University supported by UN FAO launched a pilot project of the FAO
Global Soil Partnership for the Recarbonisation of Global Soils (RECSOIL) in Russia.
UN FOOD
AND AGRICULTURE
ORGANISATION (UN FAO)
Development of Sustainable
Agriculture through the
Implementation of the Global
Soil Doctors Programme and
the Creation of the Global Soil
Laboratory Network
The joint project of PhosAgro and
FAO promotes the expansion of the
Regional Soil Laboratory Network
(RESOLAN) in Africa, Asia, Latin
America, Russia, and the Middle East,
and sustainable soil management
among farmers.
Recarbonisation of Global Soils
(RECSOIL) project
The UN FAO initiative’s key objective
is to improve soil carbon content
while reducing greenhouse gas
emissions from farm lands through
the implementation of sustainable soil
management practices.
Partner
Key results in 2024
During the 29th session of the Conference of the Parties (COP29) to the UN
Framework Convention on Climate Change, PhosAgro arranged a session titled
“Innovation and artificial intelligence – transformative technologies in climate
action” to discuss how to limit the rate of global warming and reduce carbon
dioxide emissions.
UNITED NATIONS
GLOBAL COMPACT
PhosAgro contributes by providing
expert advice on a wide range
of topics on the UN’s global
socioeconomic agenda
PhosAgro remains a leader of the
UN Global Compact by vigorously
supporting the Climate Ambition
Accelerator and CEO Water Mandate
initiatives to combat climate change
and ensure the efficient use of water
resources.
In 2024, cooperation agreements were signed with leading African agricultural
associations – the South African Grain Farmers Association (SAGRA) and the
Association for Strengthening Agricultural Research in Eastern and Central Africa
(ASARECA).
Pro Agro Lectorium, the Company’s e-learning platform, was recognised as the
official platform of the BRICS Business Council Agribusiness Working Group and
won the BRICS Solutions Awards in 2024.
LEADING
AGRICULTURAL
ASSOCIATIONS FROM
AFRICA
PhosAgro’s expert contribution to
building Africa’s food sovereignty and
expanding scientific and educational
cooperation between Russian and
African universities
Development of scientific and
educational potential of African
countries, along with the training of
qualified personnel for agricultural and
chemical industries to build Africa’s food
sovereignty.
In 2024, PhosAgro Group and UN FAO signed an agreement to launch stage 3 of the
global project for sustainable soil management.
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In 2024, PhosAgro Group and Peoples’ Friendship University of Russia launched
the BRICS International School for Sustainable Agriculture, bringing together
60 students from six BRICS nations: Egypt, India, Iran, China, Russia, and
South Africa.
In 2024, PhosAgro Group awarded scholarships to 20 winners of the 5th and
6th competitions of the Laverov scholarship programme established for young
scientists from the Mendeleyev University of Chemical Technology in 2022. Since
that time, 60 gifted students have been recognised winners of the competition.
In 2024, PhosAgro Group awarded the first ten winners of the Sadykov scholarship
programme at the branch of the Mendeleyev University of Chemical Technology
in Tashkent.
PhosAgro Group and the Ministry of Science and Higher Education of the Russian
Federation made an agreement at 2024 SPIEF.
PhosAgro Group supported the 7th BRICS Young Innovators contest as part of the
4th Young Scientists Congress. The winners were young scientists from Brazil,
China, and Russia. More than 7,000 people from 63 countries took part in the
Congress.
Partner
Key results in 2024
PEOPLES’
FRIENDSHIP UNIVERSITY
OF RUSSIA (RUDN)
BRICS International School
for Sustainable Agriculture
Partnership in promoting scientific
and educational projects in sustainable
agriculture, environment, and
environmental protection.
MINISTRY OF
SCIENCE AND HIGHER
EDUCATION OF THE
RUSSIAN FEDERATION
Young Scientists Congress
Partnership in the international
promotion of basic research, scientific
and educational cooperation and
digital education technologies.
MENDELEYEV
UNIVERSITY OF
CHEMICAL TECHNOLOGY
OF RUSSIA
Partnership in promoting
basic sciences and research in
chemistry to further sustainable
development as well as the legacy
of great Russian scientists Dmitry
Mendeleyev
PhosAgro Group, the Diplomatic Academy of the Russian Ministry of Foreign
Affairs, and the Russian State Agrarian University – Moscow Timiryazev Agricultural
Academy with the support from FAO organised an international symposium for
the BRICS countries on climate-smart and eco-friendly agriculture. The event
attracted more than 300 participants from Russia, Latin America, Asia, and Africa.
In 2024, the Company participated in the 5th European Sustainable Phosphorus
Conference that brought together representatives of business, stakeholders,
regional and national authorities.
At the event, we presented our best practices of phosphogypsum application.
In 2024, PhosAgro Group took part in AFA’s 36th Technical Fertilizers Conference
and exhibition on the rational use of mineral fertilizers and food security.
Partner
Key results in 2024
DIPLOMATIC
ACADEMY OF THE
RUSSIAN MINISTRY
OF FOREIGN AFFAIRS
Partnership in scientific research
with a focus on sustainable
development and green economy
EUROPEAN
SUSTAINABLE
PHOSPHORUS PLATFORM
(ESPP)
Partnership on the European
political, scientific and technical
agenda for the sustainable use of
phosphate resources
ARAB FERTILIZER
ASSOCIATION (AFA)
PhosAgro Group’s expert
contribution to the Association’s
committees on a wide range of
matters as a representative of
Russia’s mineral fertilizer industry
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SUPPLY
chain
PROCUREMENT FUNCTION DEVELOPMENT
1 DIGITAL TRANSFORMATION
Actual
Target
Target
9.1
• Further development of Process Mining
and robotisation
• Development and implementation of new
digital tools
• Five new robotiс solutions developed, two robotic
solutions transferred to PIX Robotics, a new domestic
platform, with changes in the logic.
• Procurement Workstation tool implemented, providing
procurement managers with a work schedule
for the near future that prioritises tasks.
• Methodology for calculating a standard workload unit
for procurement managers developed and deployed
using system objects.
2 PROCUREMENT FUNCTION DEVELOPMENT
Actual
Actual
Target
Target
Target
12.4
• Enhancing long-term relationships with suppliers
• Developing direct and alternative supplies
of imported equipment and spare parts
• Increased procurement using embossed bank cards
• Further development of category strategies
38%
inventory procured as part of long-term
relationships (as a share of total purchase
order lines)
41%
direct procurement from Chinese
manufacturers (as a share of total
procurement from China)
27%
inventory procured through online stores
(as a share of total purchase order lines)
The category strategies cover:
16
raw material
categories
22
categories
of materials and
equipment
1
service category
36%
rise in procurement using
embossed bank cards
compared to 2023
3 ESG EVALUATION OF SUPPLIERS
Actual
Target
Target
8.3, 12.4, 13.2
Share of suppliers in 2024 that underwent
ESG evaluation
68%
Share of procurement from evaluated suppliers
63%
Training materials are available on
the Company’s official website in the
Procurement section
• ESG evaluation coverage of at least 50% of counterparties that participated in the procurement and at least 50%
of procurement volume from the evaluated counterparties
AREA, STRATEGIC GOALS AND HIGHLIGHTS OF 20241
1 Boundary 2 – Apatit, including its branches and
standalone business units.
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PHOSAGRO’S FUNDAMENTAL DOCUMENTS FOR SUPPLY CHAIN
MANAGEMENT
STRATEGY
GRI 3-3
PhosAgro’s procurement system seeks
to ensure that the Group’s subsidiaries
receive the required resources,
materials, and services of adequate
quality, in full and at reasonable
prices. However, there is much
more to the principles and business
processes underlying our procurement
activities. We believe that running
a supply chain in an efficient and
responsible manner is the cornerstone
of the Company’s sustainable
development.
Thousands of our suppliers and
contractors benefit directly from
these investments, and so do their
employees, who have to provide
for their families.
We contribute to the public budget
at various levels. What is even more
important is that the tools we use –
such as our environmental and social
assessments of suppliers, along with
anti-corruption mechanisms – directly
promote values of sustainability and
social responsibility across the Russian
business community. These values
are the bedrock of our business
philosophy.
MANAGEMENT APPROACH
GRI 3-3
Our supply chain represents a set
of interconnected processes
covering all stages of value creation,
from procurement to product
delivery. The Group’s supply chain
management focuses on ensuring
the achievement of production targets
via timely, complete, and high-quality
procurement, as well as boosting
the Company’s efficiency.
Legitimate, competitive, and
transparent procurement is among our
key principles. In our relationships with
competitors, we rely on mutual respect
and avoid using unethical methods
to gain a competitive advantage.
The Company ensures compliance
with Russian and other applicable anti-
monopoly laws in its operations.
Team development efforts
at the Procurement Department
of our subsidiary Apatit focus
on hiring talent and providing
support and encouragement
to help employees achieve
ambitious goals.
The Competitive Procurement
Leader Award is the first professional
competition in the field of trade
and procurement, bringing
together suppliers, government
officials, mass media, and non-
governmental organisations.
Established in 2012, the award aims
to raise awareness about the most
significant procurement projects
that make operations of companies
more efficient and contribute
to the development of the market
at large. In 2024, the competition
saw 183 applications from Russia’s
largest companies representing
various industries.
COMPETITIVE
PROCUREMENT LEADER
2024
!
In 2024, PhosAgro Group
won the Competitive
Procurement Leader contest
in the Unlocking Team
Potential category.
Procurement
Policy
Code of Conduct
for Counterparties
PhosAgro Group’s
Electronic Bidding
Platform (EBP)
Regulations
Anti-Corruption
Policy
Code of Ethics
The key focus of 2024 was to keep up our momentum.
We continued to implement the decisions made, looked
for exciting new ideas, engaged in systemic analysis and
enhancement of our business processes, and also went
on fostering our corporate values in the team. Thanks
to our targeted team efforts, we accomplished all
our goals. We are looking forward to the launch
of the project to transition to the new domestic
ERP1 for procurement.
Oleg Minnullin
Head of Procurement at Apatit
!
We work to ensure that our
procurement activities have
a strong positive impact on all
our stakeholders.
In 2024, our procurements
of goods and services
at PhosAgro Group amounted
to almost
RUB 216.7 bln
1 Enterprise Resource Planning, a software package for integrated management of enterprise business processes.
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For more information
on the Company’s relationships
with local and SME suppliers, see
p.
138
!
The Procurement Department
has in place key performance
indicators (KPIs) aligned
with the Company’s business
objectives to control and
assess the effectiveness
of its employees.
RELATIONSHIPS WITH SUPPLIERS AND CONTRACTORS
The Group’s potential suppliers can
participate in a fully transparent and
accessible procurement procedure
using the Company’s electronic
bidding platform.
KPIs are individual, and their
calculation accounts for the personal
contribution of each employee. Clear
KPIs enable employees to understand
what kind of performance
is expected, and motivate them
to work more productively. Ongoing
monitoring of KPIs helps identify
process vulnerabilities, make sound
decisions while minimising risks,
which results in higher effectiveness,
better performance, and enhanced
procurement strategy.
Continuous business process
development and improvement
underpins successful operation
of the Company on the whole and
of the Procurement Department
in particular. We never stop learning
and adopting best practices. PhosAgro
Group strives to use modern tools
to boost its business efficiency and
ensure maximum transparency
of its key processes.
The Group’s potential
suppliers can partic-
ipate in a fully trans-
parent and accessible
procurement procedure
using the Company’s
electronic bidding
platform
The hotline regulations
can be found here
The Company expects
its counterparties to report
in good faith any concerns related
to its activities.
As a way to ensure prompt response
to suspected corruption and fraud,
in 2016, PhosAgro launched a Group-
wide hotline for the management
to better handle all reports
of violations and issues, including
those related to procurement.
PhosAgro Group’s hotline is available
to everyone, including the Company’s
contractors and partners.
Department Director
Head of Division
Strategy and Sustainable
Development Committee
of the Board of Directors
•
Setting strategic priorities in procurement
•
Review of the executive management’s
procurement reporting
Board of Directors level
Procurement Department management level
Procurement Department operational level
Director
(Supervisor, officer-in-charge)
of the Department
•
Meeting the Company’s needs in a timely manner
•
Apatit’s warehouse inventory management
•
Day-to-day functioning of the Department,
supervising operations of the Department’s
structural units
•
Developing a strategy for re-engineering
of business processes in the Department, etc.
•
Organising the overall operation, allocation
of functions, business development strategies,
definition of methodologies and procedures
for the uninterrupted supply of equipment and
materials
•
Managing operations of subordinate business
units, selecting and deploying staff
•
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
•
Pursuing professional development and
upskilling
Heads of units and working
groups
Specialists
Cross-functional teams
Committed to fighting corruption,
the Company adheres to the Anti-
Corruption Charter of the Russian
Business. At PhosAgro Group,
we establish and maintain business
relationships with partners that operate
in a bona fide manner, care about their
own reputation, show commitment
to high ethical standards, combat
corruption, and take part in joint anti-
corruption initiatives in accordance
with Article 13.3 of the Federal Law
On Combating Corruption.
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133
132
RISKS AND OPPORTUNITIES
The following strategic risks affect our procurement objectives:
1 DIGITAL TRANSFORMATION
The Process Mining smart
platform helped:
• develop new dashboards
to analyse procurement cate-
gories, including a dashboard
with a ready-to-use ABC anal-
ysis tool;
• implement a system for auto-
mated calculation of EBP bid-
ding economic effect.
In 2024, the Company was actively working to develop and implement
digital tools in various procurement areas.
PROCUREMENT-SPECIFIC RISKS:
!
Suppliers’ failure to perform,
changes in the product range or late
delivery of materials and equipment,
including as a result of geopolitical
factors
!
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
corruption
risk
For more information, see
the Strategic Risks section
commodity
risk
sanctions
risk
The Group 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,
including:
!
implementation of digital
procurement tools;
!
development of relationships
with domestic manufacturers
and ensuring alternative supplies
of imported equipment and spare
parts;
!
enhancement of the procurement
efficiency and the quality
of procured materials and
equipment through building up
the procurement function and
assessing suppliers.
p.
66-75
The Procurement Workstation
tool was implemented to help
procurement managers
streamline their daily routines.
The system automatically
generates a schedule for all
items to be processed
in accordance with prescribed
timelines.
To ensure comprehensive end-
to-end recording of breaches
lacking systemic records
in the in-house ERP, new events
related to supplier breaches
of contractual obligations were
added to the Occurrences and
Events Record Book module
based on the WSS Docs EDMS
in 2024.
Bitrix24 was introduced
to create a single system for task
management and control within
the Procurement Department.
New robotic solutions were
developed and implemented
for tasks such as downloading
reports, searching for prices
in pricing records, updating
delivery schedules, etc.
An index and rating model
of the automatic counterparty
assessment was integrated
into the SCOUT system,
providing a comprehensive view
of counterparties based on data
from both PhosAgro Group’s
internal and external sources.
To address the lack of a workload
assessment tool for procurement
managers, all items handled
by procurement managers
were digitalised, with work
complexity quantified. This
data was then used to develop
a methodology for calculating
a standard workload unit
for procurement managers:
• the standard workload unit
is calculated using a BI report
sourced from the in-house
ERP;
• all necessary data is rep-
resented and visualised
in an Excel dashboard;
• data updating is configured
through exporting and using
Power Query.
2
7
5
1
6
3
4
14
18
20
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Performance review
2 PROCUREMENT FUNCTION DEVELOPMENT
Service procurement in 2024
KPI
Performance level
Actual
Threshold
Target
Stretch
2024
Average number of tender participants
in the reporting period
3
5
7
5
Tender price reduction in the reporting
period, %
20
30
35
32
Holding tenders on time, %
90
95
100
99
Commodity procurement in 2024, %
KPI
Performance level
Actual
Threshold
Target
Stretch
2024
Timeliness of procurement (integrated)
87
90
93
97
Reject rate at incoming control
5
3
2
4
Raw materials procurement in 2024
KPI
Performance level
Actual
Threshold
Target
Stretch
2024
Raw materials procurement index
1.05
1
0.95
1
Procurement highlights in 2024
Apatit procurement costs,
RUB bln
216. 7
183.8
213.9
2024
2023
2022
The Company’s procurement
costs1 in 2024 totalled
RUB 216.7 bln,
of which raw materials and fuel
accounted for 44%
Breakdown of procurement costs, %
57
17
26
44
25
31
44
23
33
Raw materials and fuel
Materials and equipment
Work and services
2022
2023
2024
!
In 2024, PhosAgro Group
successfully completed
the initiative to update
its stock item catalogue,
which resulted in several key
improvements:
A project for procuring low-value
items through Marketplace, an online
platform connecting suppliers and
customers, is underway, with trial
procurements conducted during
the reporting year.
• the procurement category struc-
ture was aligned with the needs
of the procurement process
participants;
• catalogue attributes within
the system, including adjusted
procurement categories, were
updated;
• duplicate items were removed.
We are actively developing
a process to transition procurement
to the Elektrotechmontazh (ETM)
online store, which will help reduce
delivery times by at least 14 days
and procure goods at prices that are,
on average, 33% below the market.
As a result of our efforts in 2024, goods
from 122 manufacturers are now
available for procurement through
the online store.
In addition, as part of streamlining
of the Procurement Department
business processes,
we implemented 18 initiatives
to enhance the Company’s
efficiency, with another nine
initiative currently in progress.
1 Boundary 2.
PhosAgro Group places special
emphasis on strengthening
its supply chain in response to global
geopolitical tensions. Adaptation
to new technologies, changes in trade
policies, and tightening sustainability
requirements are presenting both
new challenges for the Company.
We continued closer and more
efficient collaboration with Russian
manufacturers, with a variety of trials
held and agreements signed for long-
term cooperation and fine-tuning
of equipment (including sludge
pumps, filter materials, circulators
and mixers, spare parts for main
process equipment, self-propelled
underground machinery, and
automation and control equipment)
to meet the needs of Apatit.
Performance improvement
136
137
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Performance review
Local supplier management
GRI 204-1
3 ESG EVALUATION OF SUPPLIERS
PhosAgro Group is actively introducing
sustainability principles across
its operations. The Company has
an automated system in place
to evaluate suppliers on the basis
of ESG criteria, which results
in an individual rating of each
counterparty. This enables us to assess
our suppliers’ environmental, social,
and governance performance
paying special attention to supplier
engagement. To ensure reliability
and predictability of cooperation,
the Company runs technical supplier
audits, including requirements
as to their environmental and social
footprint. In 2024, we held 58 technical
audits of Russian manufacturers,
resulting in partnerships with six
of them ultimately declined.
In 2024, PhosAgro Group, as part
of the National ESG Alliance,
contributed to developing
methodological recommendations
for ESG evaluation of suppliers.
These recommendations include
several ESG checklists: a basic
checklist with 28 questions,
an advanced checklist, and
a market leader checklist.
The proposed checklists can
PhosAgro Group’s suppliers play
an important role in advancing
the Company’s sustainability strategy,
helping foster a more eco-friendly,
socially responsible, and economically
stable future.
Procurement value, RUB mln
MED 8, 9
2022
2023
2024
SMEs
42,143.22
57,957.23
65,095.13
Local
37,099.57
41,493.65
49,801.90
Imports
5,914.77
12,436.83
10,140.55
Share of local procurement, %
23
23
17
2024
2023
Total:
2022
Cherepovets site of Apatit
Balakovo branch of Apatit
Volkhov branch of Apatit
Kirovsk branch of Apatit
28
21
19
18
28
19
28
15
2024
2023
2022
20
13
14
18
Number of suppliers
in procurement
3,968
3,797
3,511
2024
2023
2022
For more information
about the project, visit
the website
Training materials
on engaging with
suppliers in sustainable
development
are available
in the Procurement
section on PhosAgro’s
official website
PhosAgro is also collaborating with
local enterprises by organising
Supplier Days and taking part
in forums and other initiatives run
by the Urban Development Agency
in Cherepovets as well as the regional
office of the Russian Union
of Industrialists and Entrepreneurs
in the Vologda region (e.g. https://
agr-city.ru/vidy-podderzhki/vii-
mezhdunarodnyj-promyshlennyj-
forum/).
In May 2024, an offline meeting
was held between representatives
of SMEs in Cherepovets and Apatit
employees. The meeting was also
live-streamed for the general public.
A total of 77 representatives of local
suppliers and contractors attended
the event, while the additional
677 participants joined online.
Such hybrid meetings enhance
collaborative processes, expand
cooperation opportunities,
and foster effective win-win
partnerships, allowing each party
to identify the best work strategies
for themselves and their partners.
The participants received a tutorial
deck covering the matters discussed
during the meeting.
!
PhosAgro Group is actively
engages in projects aimed
at supporting local suppliers
and developing SMEs.
The Company is participating
in the Synergy of Growth project
in the Vologda region, which seeks
to enhance the industrial potential
of the region by increasing
the share of the large businesses’
procurement from local SMEs.
The Synergy of Growth 3.0
project employs a cluster model
to advance the Vologda region’s
economy and builds upon
the Synergy of Growth initiative.
It establishes a new mode
of partnership between SMEs and
industrial giants, focusing on joint
development of required products.
be used by any company regardless
of their expertise in sustainable
procurement.
Alliance
138
139
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Performance review
Supplier environmental
assessment
GRI 308-1, 308-2
Environmental standards observed
by PhosAgro Group’s suppliers
include the use of environmentally
sound technologies, reduction
of GHG emissions, and sustainable
use of natural resources. This
approach helps minimise a
environmental footprint and
maintain ecosystems. In 2024,
suppliers with an environmental
management system certified
to ISO 14001 or a similar standard
represented 34% of the rated
producers of raw materials, fuel,
energy, and commodities, while
the overall number of suppliers went
up year-on-year.
Item
2022
2023
2024
Total number of rated suppliers
1,888
2,418
2,685
Number of rated suppliers producing raw materials, fuel, energy,
and commodities
847
908
949
Number of rated suppliers producing raw materials, fuel, energy,
and commodities with an environmental management system
certified to ISO 14001 or a similar standard
276
310
322
Share of rated suppliers producing raw materials, fuel, energy, and
commodities with an environmental management system certified
to ISO 14001 or a similar standard, %
33
34
34
Supplier social assessment
GRI 414-1, 414-2
The social assessment
of the Company’s suppliers takes
into account such factors as working
conditions, human rights, and
corporate social responsibility.
The analysis of changes in ESG
evaluation items shows that most
of the Group’s partner companies
seek to operate in compliance with
the labour laws and recognised safety
standards.
Item
2022
2023
2024
Total number of rated suppliers
1,888
2,418
2,685
Number of rated suppliers that adopted a zero-tolerance policy
on child labour
1,091
1,511
1,715
Share of rated suppliers that adopted a zero-tolerance policy
on child labour, %
58
62
64
Number of rated suppliers in the categories “Producers
of raw materials, fuel, energy”, “Commodity producers and
intermediaries”; “Logistics services”; “Construction and
installation, repairs”
1,524
1,926
2,129
Number of rated suppliers in the above categories that adopted
a zero-tolerance policy on discrimination
831
1,151
1,294
Share of rated suppliers in the above categories that adopted
a zero-tolerance policy on discrimination, %
55
60
61
Number of rated suppliers in the above categories that adopted
a zero-tolerance policy on forced labour
856
1,171
1,313
Share of rated suppliers in the above categories that adopted
a zero-tolerance policy on forced labour, %
56
61
62
Number of rated suppliers in the categories “Producers of raw
materials, fuel, energy, and commodities”, “Logistics services;
construction and installation, repairs”
1,174
1,303
1,362
Number of rated suppliers in the above categories with
an occupational health and safety management system certified
to OHSAS 18001 or a similar standard
452
518
542
Share of rated suppliers in the above categories with
an occupational health and safety management system certified
to OHSAS 18001 or a similar standard, %
39
40
40
The average supplier rating
remained unchanged at
65%
Key ESG evaluation indicators
Item
2022
2023
2024
Number of counterparties that participated in the evaluation
on PhosAgro’s EBP as at the end of the reporting period
7,605
11,191
14,885
Number of suppliers in the reporting year
3,511
3,797
3,968
Number of rated suppliers in the reporting year
1,888
2,418
2,685
Share of rated suppliers in the reporting year, %
54
64
68
Total supplies, RUB bln
213.9
183.8
216.7
Supplies from rated counterparties in the total volume of supplies
in the reporting year, RUB bln
74.8
108
137
Share of supplies from rated counterparties in the total volume
of supplies in the reporting year, %
35
59
63
Average supplier rating, %
62
65
65
In 2024, the total number of counterparties that underwent ESG evaluation
based on the Sustainable Procurement Indicators checklist reached
14,885
140
141
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Performance review
PEOPLE
development
1 ANNUAL EMPLOYEE SURVEY
Target
3.4, 8.3
Target
Actual
Maintaining employee satisfaction and loyalty at
no less than 65 p.p. by 2025
75 p.p.
employee engagement
76 p.p.
consolidated employee
satisfaction
and loyalty index
89%
of employees would
recommend PhosAgro
as an employer
91%
of employees trust
decisions
of the Group’s management
2 INCLUSIVE ENVIRONMENT
Target
8.5, 8.8
Actual
The Company strives to build an inclusive environment
for disabled people, help adapt workplaces and municipal
infrastructure to their needs, and employ more such people
depending on business requirements
Target
• We organised a job fair for disabled people
• We streamlined cooperation with employment centres
to facilitate the employment of disabled people
3 GENDER EQUALITY
Target
8.5, 8.8
21%
of women among managers of all levels
25%
of women in the Company’s Top Talent
Pool (10 out of 40)
33%
of women in the Company’s total
headcount
The Company is ready to provide all employees with opportunities for professional and career growth. This depends primarily on their
competencies and personal performance
5 INCENTIVES AND REWARDS
Target
8.3
Motivating the staff to increase productivity and deliver
strong operating results, retaining qualified talent
Training future top managers from among internal
candidates
Target
Actual
24%
average salary increase
in 2024
15%
wage indexation
on 1 February 2024
> 4,400
mentoring relationships
established in 2024
4 TRAINING AND EVALUATION
Target
4.4
Target
Actual
116.6
average annual training
hours per employee
RUB 325 mln
invested in employee
training
> 470 people
hired as part of career
guidance and youth
engagement initiatives
> 50%
of PhosAgro START
participants employed
by the Company were
promoted and included
in the talent pool
Increasing average annual training hours per employee
to 123 by 2025
Promoting retraining and professional development
Investing in future talent
6 SOCIAL BENEFITS AND EMPLOYEE GUARANTEES
Target
Actual
Target
3.4, 8.3, 8.8
+24%
more investments in social programmes for employees
95%
satisfaction with the social benefits offered
Providing comprehensive social support to our employees with annual increase in funding for social benefits and guarantees,
financial aid, and implementation of corporate social programmes
AREA, STRATEGIC GOALS AND HIGHLIGHTS OF 2024
Target
Actual
142
143
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One of the strategic objectives of our HR policy
is to support and improve the training and development
system for our personnel. The Company works to ensure
quality training for specialists, internal experts, and
future managers. To do that, we invest in enhancing
staff competence, fostering an internal talent pool, and
promoting young specialists’ professional growth.
Dmitry Borodich
Human Resources and Social Policy
Director
STRATEGY
PhosAgro employees are the key
to its seamless operation, successful
performance, and sustainable
development. Elements underpinning
the Company’s HR management
are professional growth and
development, safe and high-quality
working conditions, a culture
of equality and respect, decent
benefits and remuneration. PhosAgro
To deliver on our objectives, we:
!
PhosAgro made it to the Top 3 best
employers in Russia’s chemical
industry according to HeadHunter
and the Top 100 employers among
the country’s majors
!
The highest, platinum status
in the rating of best employers from
Forbes
!
Highest scores in RBC’s employer
rating
!
PhosAgro Engineering Centre
became the leader among
IT departments of the industrial
sector in the All-Russian annual
rating of IT employer brands
!
PhosAgro received an award and
special prize in the 11th “Creating
the Future” National Contest
for Best Employer Practices
in the Socio-humanitarian Sphere,
winning the High Start nomination
strives to increase the engagement
and efficiency of its personnel,
as well as to support and motivate
employees to achieve key
business goals.
Corporate HR Conference
!
In 2024, PhosAgro held its first
HR conference, bringing
together over 100 HR
professionals from all
regions where the Company
operates, with a view
to supporting its strategic
HR management objectives.
The event focused on fostering
effective collaboration,
enhancing participants’
professional competencies,
as well as studying and
disseminating best HR
practices.
Develop approaches to attracting
and retaining personnel
Design and implement
development and growth
programmes for employees
in key positions
Launch management
development programmes
to foster a positive and effective
leadership culture
Implement corrective measures
based on the results of Growth
Area, an annual employee survey
1
4
Improve the corporate knowledge management
system and introduce courses aimed at developing
personal competencies
5
Offer e-learning modules on
blue-collar jobs, occupational
safety, and managerial skills
8
2
3
Enhance mentoring and onboarding systems
6
Implement a comprehensive
system of career guidance
for school students and youth
7
2024 ACCOLADES
HR managers and specialists took
part in sessions dedicated to five key
areas: Staffing; Evaluation, Training,
and Development; Automation
and HR Analytics; Remuneration
and Organisational Performance
Management; Corporate Social
Policy. Each area had its dedicated
workshops and brainstorming, with
conference participants updating their
knowledge of the most effective and
up-to-date HR tools and methods with
the help of leading industry experts.
!
PhosAgro cemented its leadership
as the company with the most
effective social and charitable
programmes in the Russian Leader
in Corporate Philanthropy competition
!
PhosAgro secured victory in most
categories and received the Grade 1
Responsible Business Leadership
national award
!
The Balakovo and Volkhov
production facilities won
the Collective Agreement
As the Basis for the Protection
of Social and Labour Rights
competition
!
22 company employees received
state awards
!
The Kirovsk plant’s team
was awarded the Order for Valiant
Labour
144
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Performance review
STAKEHOLDER
ENGAGEMENT
• organisational change
management;
• personnel attraction and
recruitment;
• personnel training and
development;
• incentives and rewards;
• social benefits;
• corporate communication;
• working hours and leisure;
• respect for human rights
and non-discrimination.
Share of employees covered
with collective bargaining
agreements, %
Integrated HR management framework
• 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 their performance
against the targets set forth
in the incentive programme
• Succession planning
for executive bodies and other
key executives
• 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
1 In accordance with the materiality principle, this metric is presented for Apatit (Boundary 2) (Apatit
is a subsidiary of PhosAgro holding its production assets).
• Hotline: 8 8202 59 32 32,
help@phosagro.ru
• https://www.phosagro.ru/
contacts/#sucurity
• Employee support: 8 800 200 41 41,
hr-phach@phosagro.ru
Thanks to effective communication,
transparency, and willingness
to provide feedback, employee trust
has significantly increased – this covers
trust in their immediate supervisors,
the top management of the Group’s
facilities, and the Group as a whole.
100
100
100
2022
2023
2024
PhosAgro is committed to fostering
a culture of equal opportunity and
embracing fair and transparent
employment practices. The Company
does not tolerate any form
of discrimination in the workplace.
All our employees have equal access
to growth opportunities. A high
level of professional competence,
consistent performance results, and
alignment with company values
are the primary criteria for career
progression, irrespective of gender.
Board of Directors
Management
Operations
Remuneration and Human
Resources Committee
HR and Social Policy
Department
Local human resources and
social policy department
Open communication
channels
GRI 2-25, 2-26
A sufficient number of diverse
communication channels ensures
a high level of employee awareness
and provides opportunities
for employees to openly share their
opinions. These channels include
corporate media, an intranet portal,
a chatbot, a hotline, a mobile app,
information boxes for requests, and
social media accounts of the Company.
Regular information sessions
for the staff and management
are among the most crucial and
sought-after communication channels.
• 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
MANAGEMENT APPROACH
GRI 3-3
We rely on a robust performance
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.
High remuneration is often no
longer the main incentive, with self-
fulfilment coming to the forefront
if the Company invests heavily
in developing the professional
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.
The Company’s key production sites
are located in the Murmansk, Vologda,
Leningrad, and Saratov regions.
As a major contributor to the local
economy and one of the largest
employers in these regions, PhosAgro
has a significant positive impact
on social development and welfare
across its geography.
HR management principles
Relations between the Company
and its employees are governed
by the Russian Labour Code.
2023 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, our
employees have received more than
28,000 additional training courses
in human rights and corporate ethics.
!
In developing our production
and creating new jobs, we seek
to prioritise local residents
when filling our vacancies.
100% of the employees of Apatit1,
its branches, and standalone
business units).
PHOSAGRO’S HR
MANAGEMENT POLICIES
FOCUS ON:
89.6%
of on-site employees are hired
locally
!
The workforce is predominantly
male, reflecting the Company’s
industrial profile and the specific
nature of the chemical
and mining sectors. While
recognising the specific
nature of its operations,
PhosAgro strives to maintain
gender diversity across
both its production and
administrative functions.
Based on these considerations,
the Company develops
its income generation strategy
to ensure equal pay for equal
work and comparable levels
of professionalism.
PhosAgro maintains transparent
communication with
its employees and trade unions
through a variety of traditional
and digital channels, ensuring
effective reach across all target
audiences.
Key engagement mechanisms
include:
• joint committees, working
groups, consultations with
trade unions, and employee
social support programmes;
• employee opinion surveys,
including satisfaction surveys
regarding existing social
benefits and the Company’s
corporate social responsibility
policies, as well as other
targeted surveys;
• open communication
channels.
GRI 2-30, MED 32
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
146
147
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Performance review
RISKS AND OPPORTUNITIES
The following strategic risks affect our HR management
objectives (for more information, see the Strategic Risks section):
social risk
RISK AREAS SPECIFIC TO HR MANAGEMENT:
!
Compliance with human rights and
ethical standards
!
Workforce sufficiency, competence,
and development
!
Provision of competitive incentives
and social support to staff
!
Health and safety
Key elements of the school–college/university–facility educational model:
The PhosAgro Schools
project running in cooperation
with schools across our
footprint. By creating the right
environment at schools, we help
guide graduates in their career
choices. In 2024, we partnered
with six schools under
the project.
Cooperation with universities
serves to attract talented
graduates in priority areas
and create conditions for their
professional development.
Today, the Company actively
collaborates with 24 universities
that offer courses relevant
to its core activities.
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.
In 2024, the Company actively
liaised with ten technical
colleges.
1
2
3
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, including:
!
a comprehensive approach
to attracting highly qualified
personnel (referral programmes,
HR marketing tools, automated
recruitment solutions, and other
initiatives);
!
extensive opportunities
for employee self-development
through an online learning
platform, a corporate digital library,
etc.;
!
automated solutions and services
for personnel assessment and
training.
3
4
6
HR risk
health and safety risk
The Company is successful in its
recruitment efforts, maintaining
an overall staffing level of
97%
across the Group
The Code of Ethics
In our operations, we seek to maintain
an impeccable reputation and comply
with ethical business practices.
PhosAgro adopted a Code of Ethics
in 2014 and updated it in 2021.
It applies to all employees and
is the Company’s primary document
that clearly defines our corporate
culture, rules and regulations
for collective behaviour within
the Company, business and social
relationships, and interactions with
other stakeholders.
When agreeing and entering into
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.
Recruitment
The Russian labour market entered 2024
facing a significant imbalance between
supply and demand, with the shortage
of skilled labour emerging as one
of the economy’s primary challenges.
To address this constraint and attract
highly qualified employees, PhosAgro
implements a comprehensive approach
to recruitment. We utilise all available
talent acquisition channels, including
job boards, referral programmes, various
HR marketing tools, and are developing
automated recruitment solutions.
Given the current labour market
environment, the Company
continues to invest in vocational
training, employee learning and
development, and collaboration with
educational institutions through
its school–college/university–facility
model. This model aims to attract
highly educated, motivated, and
well-trained young professionals
to the Company by establishing
a system for continuous improvement
in education quality and targeted
career guidance.
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Appendices
Performance review
148
149
Productivity4, t per person
MED 5
1,555
1,601
1,763
2022
2023
2024
The decrease in productivity
was due to the growth
of the Company’s headcount
as a result of investment projects
and bringing equipment repair and
maintenance functions back in-house.
In 2024, the employee turnover
rate was 8.4%, up 0.3 p.p. y-o-y. This
is attributed to a rise in voluntary
resignations, driven by a greater
availability of competitive salaries and
benefits in the labour market.
Breakdown of employees by gender, region, types of employment and employment contracts,
number of employees
GRI 2–7, SASB EM-MM-000.B1
Permanent employees
Temporary employees
Number of employees
(headcount)2
Full-time employees
Part-time employees
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
Men
6,238
6,736
6,903
529
473
518
6,767
7,209
7,421
6,762
7,204
7,418
5
5
3
Women
2,321
2,426
2,517
168
229
252
2,489
2,655
2,769
2,476
2,635
2,742
13
20
27
Murmansk region, total
8,559
9,162
9,420
697
702
770
9,256
9,864
10,190
9,238
9,839
10,160
18
25
30
Men
3,721
4,433
4,741
105
110
154
3,826
4,543
4,895
3,825
4,538
4,890
1
5
5
Women
2,755
2,991
3,142
234
246
230
2,989
3,237
3,372
2,977
3,218
3,347
12
19
25
Vologda region, total
6,476
7,424
7,883
339
356
384
6,815
7,780
8,267
6,802
7,756
8,237
13
24
30
Men
1,594
1,792
2,061
63
112
146
1,657
1,904
2,207
1,654
1,901
2,205
3
3
2
Women
740
806
899
85
105
94
825
911
993
814
899
975
11
12
18
Saratov region, total
2,334
2,598
2,960
148
217
240
2,482
2,815
3,200
2,468
2,800
3,180
14
15
20
Men
1,100
1,192
1,307
117
144
156
1,217
1,336
1,463
1,215
1,335
1,463
2
1
0
Women
637
680
732
72
59
64
709
739
796
708
738
795
1
1
1
Leningrad region, total
1,737
1,872
2,039
189
203
220
1,926
2,075
2,259
1,923
2,073
2,258
3
2
1
Men
194
206
217
2
3
3
196
209
220
196
209
220
0
0
0
Women
147
157
158
3
8
5
150
165
163
150
160
162
0
5
1
Moscow, total
341
363
375
5
11
8
346
374
383
346
369
382
0
5
1
Men
557
563
580
7
1
2
564
564
582
561
550
576
3
14
6
Women
249
292
310
7
4
6
256
296
316
246
286
305
10
10
11
Other, total
806
855
890
14
5
8
820
860
898
807
836
881
13
24
17
Men
13,404
14,922
15,809
823
843
979
14,227
15,765
16,788
14,213
15,737
16,772
14
28
16
Women
6,849
7,352
7,758
569
651
651
7,418
8,003
8,409
7,371
7,936
8,326
47
67
83
Total
20,253
22,274
23,567
1392
1494
1,630
21,645
23,768
25,197
21,584
23,673
25,098
61
95
99
Average headcount3
of PhosAgro Group, people
MED 25
23,612.6
21,828.6
19,846.1
2022
2023
2024
1 For more information on the number of workers who are not employees, see page 371.
2 Headcount as at the end of the reporting period. The headcount includes employees with an employment contract.
3 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.
4 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.
Key personnel turnover
indicators, people
GRI 401-1
2024 METRICS AND HIGHLIGHTS
GRI 2-8
In 2024, there were 852 employees
working under civil law contracts with
the Company, or 3.6% of the average
headcount (vs 758 employees, or 3.5%
of the average headcount, in 2023).
They mainly provided documentation
support, cleaning, information and
consulting, accounting, social support,
and supervisory services.
In 2024, the Group’s average
headcount was
23,613 people
As at the end of 2024, the number
of employees with disabilities came
in at
157
(vs 128 in 2023 and 88 in 2022)
p.
368-370
For key personnel turnover
indicators by age, gender,
and region, see
Joiners
Leavers
Turnover
2024
2023
2022
4,888
3,584
5,747
9.8%
3,384
5,459
3,362
8.1%
8.4%
150
151
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Personnel breakdown, %
GRI 405–1
Age
Average headcount, %
2022
2023
2024
Men
Women
Men
Women
Men
Women
Employees by gender and age
Under 30 years
10.9
5.5
11.3
5.3
11.5
5.3
30–50 years
45.5
23.2
45.3
22.8
45.4
22.4
Above 50 years
9.3
5.6
9.7
5.6
9.7
5.7
Employees by category
Blue-collar employees
42.7
14.5
42.9
13.6
43.1
13.3
White-collar employees
12.6
16.9
12.9
17.2
12.7
17.3
Managers
10.5
2.9
10.5
2.9
10.8
2.8
Employees by education
Higher
25.4
19.7
25.5
19.6
26.0
19.7
Basic vocational
16.6
5.0
16.6
4.8
16.1
4.5
General
10.2
3.6
10.1
3.4
9.9
3.4
Secondary vocational
13.5
6.0
14.2
5.8
14.6
5.8
The annual Growth Area survey
provides insights into personnel
perceptions of PhosAgro’s initiatives
and measures aimed at professional
development and employee well-
being. Thanks to this survey, we can
assess employee satisfaction with
implemented improvements and
identify challenges perceived
as emerging issues for the Company.
Conducted for the 12th consecutive
year, the survey yielded the highest
ever scores across the majority
of metrics and indicators. With
an 83% participation rate (23% above
the target), the survey demonstrates
a high level of employee engagement
and a willingness to openly
share opinions.
The consolidated satisfaction
and loyalty index reached 76 p.p.,
a 33% increase over the past four
Trust in top management decisions
stands at 91%, while perceptions
of income competitiveness and
fairness have tripled in the last
two years.
!
What our employees value
most are the Company’s
reliability and continuous
development.
years. The engagement index rose
to 75 p.p., surpassing the industry-
wide benchmark for manufacturing
and mining industries (provided
by an independent consulting
firm by 12%.
Consolidated satisfaction
and loyalty index, p.p.
65
76
73
69
2023
2022
2024
2025 (target)
MED 25
!
As at the end of 2024,
the Group employed 157 people
with disabilities (128 in 2023
and 88 in 2022). 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
as required by applicable laws.
Beyond compliance, we actively hire
people with special needs, organising
workplaces to accommodate
individual rehabilitation/habilitation
programmes. Due to the limited
number of workplaces with acceptable
working conditions for people with
special needs, the Company signs
workplace lease agreements and
provides comprehensive assistance
in setting them up in other
organisations.
We support and provide an expert
opinion at Abilympics, a competition
for the promotion of disabled people’s
professional expertise, while actively
engaging in job fairs specifically
designed for people with disabilities.
21%
of women among managers
of all levels
25%
of women in the Company’s Team
of the Future (10 out of 40)
33%
of women in the Company’s
total headcount
MED 44
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.
Share of women taking part
in corporate programmes, %
30
31
36
2024
2023
2022
34
35
33
2024
2023
2022
25
23
19
2024
2023
2022
High-Potential Graduates
Corporate training initiatives
Team of the Future
(previously Top 40 Talent Pool)
!
Superfinals of the Young
Manager – 2024 competition.
7 men, 5 women.
!
Superfinals of the Mentor
of the Year – 2024 corporate
contest. 6 men, 2 women.
Winner of the superfinals
in the Mentor of Blue-
Collar Professions category:
a woman.
PARTICIPATION OF WOMEN
IN INTERNAL THEMATIC
EVENTS
The survey results demonstrate that
employees of PhosAgro Group hold
a positive view of the Company’s
overall strategy and the effectiveness
of its annual improvement plans.
89%
of employees would
recommend the Company
as an employer
3 GENDER EQUALITY
1 ANNUAL EMPLOYEE SURVEY
2 INCLUSIVE
ENVIRONMENT
152
153
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
PhosAgro management seeks to attract
highly skilled professionals and young
talents, establish a knowledge and
experience transfer system for new
generations of employees, and provide
continuous training and development
opportunities. We place heavy
emphasis on professional growth and
are committed to fostering production
initiatives and in-house expertise.
!
Our objective is to create
a corporate educational
environment that
encourages the development
of professionalism, self-
improvement, training,
and knowledge sharing.
We actively utilise new tools,
methods, and technologies
in this pursuit.
1 Boundary 2: Apatit, including its branches and standalone business units.
Average annual training hours per employee1
GRI 404-1, MED 30, 31
Item
UoM
2022
2023
2024
Change y-o-y, %
Number of employees trained
people
11,551
15,739
16,915
7.47
Average annual training hours per
employee
hours
99.8
99.4
116.6
17.3
Breakdown by gender
• Women
hours
86.5
73.5
79.8
8.5
• Men
hours
107.1
113.3
135.8
19.8
Breakdown by employee category
• Managers
hours
113.0
109.1
160.9
47.5
• White-collar employees
hours
85.4
73.5
93.8
27.6
• Blue-collar employees
hours
104.0
110.8
117.3
5.9
Average annual hours of mandatory
training per employee
hours
85.1
94.01
108.3
15.1
Average annual hours of optional
training per employee
hours
14.7
5.3
8.3
56.0
Total investments in training
RUB ‘000
271,872
262,497
324,595
23.7
Annual training investments per
employee
RUB ‘000
21.0
18.4
21.0
14.1
• Women
RUB ‘000
20.4
19.3
23.6
22.3
• Men
RUB ‘000
21.3
17.9
19.6
9.5
The Company promotes a remote
training system, creates online
courses and upgrades technical
capabilities by introducing computer
simulators, and implementing VR
technologies to support the learning
process. In 2024, our remote learning
experts developed 19 new courses
such as: “Procedure for verification
of purchased goods and materials”,
“Regulatory documents on protection
against avalanches”, “Competent
laboratory assistant”, video
instruction “Trade secret”, short video
“Environmental protection”, and more.
The remote training system counts
over 310 courses, while the VR library
offers 21 programmes on occupational
health and safety, as well as two
programmes on assembling and
disassembling of rotating equipment.
We also provide our employees with
opportunities for self-development
by giving them access to our corporate
electronic library and online training
Training expenses, RUB ‘000
Total training expenses
Training expenses per employee
2024
2023
2022
271,872
262,497
18.4
21.0
21.0
324,595
!
In 2024, we continued
to improve our corporate
training programme by rolling
out remote educational and
development tools, leveraging
digital technologies and
creating mixed training
formats.
platform. In 2024, our employees
completed over 8,300 courses
on the Eduson corporate educational
platform, attended 13,900 lectures,
and passed more than 57,000 tests,
investing over 4,200 hours in learning.
They also spent a total of over 5,500
hours using the corporate e-library,
Alpina.
Our corporate training framework relies on the following principles:
Assessing and prioritising actual
training needs of various staff
categories to build appropriate
processes
Introducing the most advanced
and efficient methods and
tools from an economic and
methodological perspective
Proactively identifying and
developing new leaders
to succeed current ones
Planning, coordination, quality
and efficiency audit
Developing new formats
Using an individual approach
to young talent
1
4
5
2
3
6
Total investments in employee
training during the year came
in at
RUB 324.6 mln
In 2024, we continued to develop
a distance learning system for our
employees and create internal
training materials. By leveraging
automated solutions and services
in personnel assessment and
training, we expanded the number
of methods and tools available
for personnel development.
!
In 2024, 16,915 employees
completed various types
of training programmes,
which is a 7.5% increase from
2023. The average annual
number of training hours per
employee exceeded 116.6
(up 17.3% y-o-y).
4 TRAINING AND EVALUATION
154
155
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Mentoring
The mentoring system in place
at our production facilities plays
a major role in enhancing the quality
of professional training, reducing
the number of errors, defects,
workplace injuries, and staff turnover
rates, which ultimately helps increase
labour productivity.
!
On top of that, PhosAgro
holds the annual Mentor
of the Year corporate contest
set to develop mentoring,
make it more prestigious,
raise employee awareness,
and encourage and recognise
mentors’ personal contribution
to the development of young
talents. In 2024, eight
employees from Apatit
production sites reached
the finals in two categories –
mentors of blue-collar
workers and mentors
of administrative and
managerial staff.
> 2,500
experienced and skilled staff
members from PhosAgro
facilities. In 2024, over 4,400
mentoring relationships were
established
!
Going forward, we plan to roll
out the project. In 2025,
there are plans to develop
25 teaching packages in order
to achieve 100% coverage
of the most popular
professions in the distance
learning format by 2026.
Talent pool programmes
GRI 404-2
The Company seeks to meet
its personnel needs by maximising
its use of the talent pool to select,
develop, and appoint employees
to new positions.
The talent pool programmes
include a variety of training options
for talent pool members helping
them to develop managerial and
professional competencies, and
to boost personal and business skills,
such as analysis and decision-making,
leadership, workflow management,
motivation and delegation
of powers, conflict settlement,
project management, effective
communications, etc.
In 2021, the Company started to use
mentoring as a vehicle for promoting
talent pool members. Senior managers
(mentors) share their experience and
knowledge with the participants
in an attempt to build a next-level
management culture, while talent
pool members get a chance to learn
the secrets of successful management
from executives.
The goal of the Team of the Future
programme is to foster conditions
for professional and personal growth,
share experience, and address new
challenges in the face of constant
change. The programme is open
for professional managers who
act as role models and are willing
to take on challenging tasks while
remaining true to the Company’s
values. The programme includes four
in-person sessions combining group
training and individual support, such
as work in groups of three, mentoring,
and project teams.
At the end of 2024, Moscow hosted
the programme’s final session, with
six teams showcasing their projects.
Three projects received the highest
scores: “Automation of Mineral
Fertilizer Packaging and Loading
Units”, “Foresight for PhosAgro
Strategy – 2050”, and “Digitalisation
of Maintenance and Repair Processes
at PromTransPort”. Leaders of projects
recommended in 2023 – “Automation
of the Register of Buildings and
Structures” and “Ideogora” (creation
of a single digital platform for new
ideas and expert communities
based on WebSoft) – presented
interim results.
The reporting year marked the first
graduation of the Team of the Future
programme. A total of 18 graduates
received approval to establish
the Team of Professionals expert
community to apply their skills
to Company challenges, share
experience, and promote effective
leadership values.
Starting 2023, members of the Team
of the Future act as mentors
for employees taking part
in the PhosAgro-START programme.
For mentors, it is also an opportunity
to take stock of their knowledge,
skills, and experience. Mentoring
is recognised as a valuable tool
for mentees as it enables them to seek
advice from seasoned managers,
better understand the corporate
culture and the role of the manager,
and build new connections.
Mentees can choose their mentor
via the corporate portal, where
the Mentoring section contains profiles
of all available mentors and a contact
form to initiate a kick-off meeting.
In 2024, mentoring was implemented
for Young Manager competition
participants, with first and second-
place superfinalists receiving guidance
from Team of the Future mentors.
For 2025, Team of the Future
participants will focus on developing
management and project teams
by enhancing knowledge of team
building methods, assessment
techniques, development
programmes, and remote team
management skills.
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.
In 2024, the programme continued
its roll-out across all four Apatit
production sites. New divisions joining
included the Kirovsky, Vostochny, and
Rasvumchorrsky mine at the Kirovsk
site; mineral fertilizer production unit,
urea production shop, and aluminium
fluoride shop at the Cherepovets site;
Balakovo branch of Mekhanik; and
Volkhov branch of Apatit.
Virtual teaching package
In 2024, we kept rolling out a virtual
teaching package and a distance
learning system to automate training
and development processes.
During the year, experts from various
business units developed 29 teaching
packages with e-courses covering
20 key professions.
The Company offers mentor
development programmes, provides
communicational and methodological
support for them, and organises
corporate competitions to motivate
the best Mentors. Group-wide efforts
to transfer knowledge and expertise
in order to develop new employees’
professional competencies, including
knowledge and skills related to
equipment, technology, and software
used in the workflow, cover.
In 2024, we also developed and launched 17 e-courses on additional competencies
and updated two courses.
As a result, by the end of 2024, the virtual teaching package included:
Additionally, we facilitate corporate
meetings for mentors from different
facilities to exchange experiences.
To acknowledge the importance
and value of what mentors do,
the Company has put in place
measures combining financial and
non-financial incentives. These
include a mentor recognition board,
remuneration for employees involved
in mentoring, letters of appreciation,
and more.
Matrix of 24 corporate, job-agnostic
and job-specific competencies
Teaching packages
for 15 corporate and job-
agnostic competencies (23%
of the theoretical course)
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
Personal accounts for key
structural units, containing
courses on general and
specialised competencies
of blue-collar workers,
as well as courses to develop
additional competencies, process
flowcharts, student atlases, etc.
27 e-courses on additional
competencies
33 teaching packages with
e-courses covering 24 key
professions
1
5
4
2
3
6
156
157
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Our robust system of financial and
non-financial rewards is aligned with
the Company’s performance and
1 Boundary 2: Apatit, including its branches and standalone business units.
2 Boundary 2: Apatit, including its branches and standalone business units.
Personnel assessment
Percentage of employees receiving regular performance and career development reviews1, %
GRI 404-3
Category
2022
2023
2024
Men
Women
Men
Women
Men
Women
Managers
1.6
0.2
2.4
0.5
1.0
0.3
White-collar employees
1.0
0.7
1.6
1.6
0.8
0.9
Blue-collar employees
5.1
0.8
1.8
0.3
1.0
0.2
Total by gender
7.7
1.6
5.7
2.4
2.9
1.4
Personnel evaluated in 20242, people
Managers
White-collar employees
Blue-collar employees
Total
Men
Women
Men
Women
Men
Women
Volkhov branch
32
9
25
23
6
15
110
Apatit (Cherepovets)
73
30
63
74
26
6
272
Kirovsk branch
33
2
19
21
3
0
78
Balakovo branch
22
6
17
17
122
11
195
Group total
160
47
124
135
157
32
655
3 Based on the statistics of the Bank of Russia, www.cbr.ru/eng.
Investing in PhosAgro Group’s future talent
PhosAgro has been implementing
a school–college/university–
facility career guidance model
since 2013. For more information
on programmes run under this
model, including collaboration with
Average wages at PhosAgro rose
by 67% over the past three years,
reaching RUB 183,700 in 2024 –
substantially outpacing inflation.
Beyond base salary, the Company
maintains a flexible system
of incentives and bonuses tied
!
The Company has a personnel
assessment system in place
aimed at aligning employees’
competencies with the job/
profession requirements
and personnel development
planning.
to production target achievement.
In 2024, alongside traditional bonuses
for professional holidays (RUB 100,000
each) and veterans (RUB 20,000
each), an additional bonus was paid
marking the 95th anniversary
of the Apatit mining and processing
plant: RUB 30,000 to Kirovsk branch
employees and veterans, and
RUB 20,000 to employees from other
locations.
PhosAgro prohibits any discrimination
in setting or adjusting salaries based
on an employee’s gender, age, race,
ethnicity, origin, or religion.
In 2024, the Company completed
a project of grade-based
compensations as a way to increase
schools, colleges and universities,
and the PhosAgro-START
programme for young professionals,
see the Contributing to Local
Communities section on page 220.
p.
121 and 236
For more information
on a large-scale programme
of cooperation with the leading
Russian agricultural
universities, see
Our incentives and rewards system ensures:
motivates all employees to improve
their performance. The purpose
of the system is to incentivise staff
in order to deliver strong operating
results and increase productivity,
as well as to retain qualified talent.
655 employees
underwent evaluation in 2024
In 2024, the salaries of all
employees were increased
by 15%
The indexation rate is higher
than the official inflation rate
for 2023 (7.42%)3
Decent pay
Implementation of incentive
programmes using a transparent
system of KPIs to calculate
managerial rewards
Employee coverage by social
programmes
Availability of financial and non-
financial rewards for employees
Availability of benefits for certain
employee categories
Implementation of incentive
programmes to motivate blue-
collar employees to deliver
against their targets
5 INCENTIVES AND REWARDS SYSTEM
Key applications of assessment results
include:
• planning personnel training
initiatives;
• creating educational programmes;
• building the talent pool;
• making personnel decisions
in the context of job appointments;
• drafting individual development
plans and development
programmes;
• drafting proposals
for the management team
on the review of salaries and other
employment conditions, and make
other organisational decisions;
• building project teams;
• selecting candidates to corporate
programmes and competitions.
3
4
2
5
1
6
fairness and market competitiveness
of PhosAgro’s remuneration
framework. Apatit evaluated
positions and determined grades
using a point-factor methodology,
which considers the knowledge
and skills of employees, complexity
of tackled issues, responsibility, and
impact on outcomes, while also
benchmarking compensation levels
through salary surveys. In 2025, grade-
based system implementation will
extend to subsidiaries and managed
companies.
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Ratios of standard entry-level wage by gender compared to local minimum wage
GRI 202-1
Region
Ratios between the standard entry-level wage and the minimum wage established in the significant
regions of operation2, including gender differentiation
2022
2023
2024
Men
Women
Men
Women
Men
Women
Vologda region
1.21
1.21
1.19
1.15
1.19
1.19
Leningrad region
1.20
1.24
1.75
1.30
2.64
1.62
Murmansk region
1.00
1.00
1.00
1.00
1.15
1.14
Saratov region
1.02
1.05
1.15
1.05
1.11
1.18
Moscow
1.98
1.30
2.16
1.41
2.09
1.37
Proportion of senior management4 hired from the local community5, %
GRI 202-2
Region
2022
2023
2024
Vologda region
47
50
58
Leningrad region
22
22
45
Moscow
92
90
91
Murmansk region
80
73
70
Saratov region
36
36
36
Average
61
62
68
Average monthly pay, RUB
MED 26
183,670
147,697
132,110
2022
2023
2024
In the period under review, pay rises
covered all personnel categories.
They came as a result of 15% salary
indexation starting from 1 February
2024, targeted remuneration
adjustments and the implementation
of incentive programmes.
Median salary, RUB3
130,355
108,201
90,106
2022
2023
2024
Correlation of the standard entry-level wage and remuneration of women and men1
GRI 405-2
Region/
category
Difference in remuneration of men and women
2022
2023
2024
Blue-collar
employees
White-
collar
employees
Managers
Blue-collar
employees
White-
collar
employees
Managers
Blue-collar
employees
White-
collar
employees
Managers
Vologda region
0.70
0.72
0.73
0.66
0.67
0.66
0.59
0.63
0.68
Saratov region
0.67
0.68
0.70
0.63
0.56
0.56
0.65
0.69
0.71
Leningrad
region
0.68
0.71
0.75
0.58
0.58
0.57
0.63
0.71
0.70
Moscow
0.52
0.47
0.46
0.75
0.80
0.79
0.17
0.22
0.18
Murmansk
region
0.60
0.61
0.60
0.69
0.69
0.69
0.63
0.65
0.65
Other
0.59
0.66
0.64
1.05
0.98
0.82
1.35
1.35
1.32
Total
0.61
0.63
0.64
0.68
0.68
0.66
0.51
0.59
0.56
Defined benefit plan obligations and other retirement plans
GRI 201-3
Region
Retirement-related obligations (other than employee benefit obligations)
Actual pension payments, RUB mln.
2022
2023
2024
Saratov region
Payment of retirement benefits
2.77
3.29
10.26
Merit benefit plans
0.00
0.00
0.00
Financial aid to retired former employees
16.72
21.03
42.50
Total
19.49
24.36
52.76
Murmansk region
Payment of retirement benefits
39.21
40.204
61.20
Merit benefit plans
0.00
0
0.00
Financial aid to retired former employees
148.83
157.736
357.74
Total
188.04
197.94
418.93
Leningrad region
Payment of retirement benefits
2.68
5.28
5.7
Merit benefit plans
0.00
0.00
0.0
Financial aid to retired former employees
31.65
30.10
58.8
Total
34.32
35.59
64.5
Vologda region
Payment of retirement benefits
13.05
14.03
20.5
Merit benefit plans
21.38
23.59
24.5
Financial aid to retired former employees
119.93
120.80
232.6
Total
154.37
158.43
277.6
Total
Payment of retirement benefits
57.71
62.81
97.75
Merit benefit plans
21.38
23.59
24.48
Financial aid to retired former employees
317.13
329.67
691.59
Total
396.22
416.31
813.82
4 Senior management includes managers at level N, N-1, N-2 (CEO, heads of functions, director for production, chief engineer of a company (branch), directors
of subsidiaries and affiliates, adviser to the CEO). The governance levels of managerial positions are determined by an order.
5 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. For facilities located
in the Leningrad region and Moscow, local communities also include residents of St Petersburg and the Moscow region, respectively.
1 2022–2023 data for the Leningrad region was revised to reflect improved calculation.
2 Significant regions of operation are those with the Company’s main production facilities, maximum headcount, and governance structures.
3 Median salary is the average monthly salary (excluding top management) per employee, where half of the positions have remuneration levels below this figure and
half have levels above it.
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Corporate events
To provide opportunities for leisure
activities, foster creativity, meet
the spiritual needs of employees, and
strengthen the unity of the workforce,
the Company stages corporate and
cultural events timed to coincide
with professional holidays or other
significant dates and occasions
(Chemist’s Day, Miner’s Day, charity
festivals, Theatre Day, Victory Day,
etc.), environmental games and
campaigns, family contests (PhosAgro
Generation), and sports challenges.
These events aim to increase
employee engagement and enhance
communication within the team.
GRI 401-2
We provide comprehensive social
support to our employees and their
families, increasing the funding
for social programmes, benefits and
guarantees each year while expanding
their scope and content.
Support for families, mothers,
and children
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. The Company
provides financial assistance
to employees supporting large families,
with separate payments made for each
child. Employees taking a parental
leave to take care of children aged
1.5 to 3 are also entitled to monthly
financial assistance. New Collective
Bargaining Agreements formalise
additional benefits for families raising
children with disabilities. All children
of employees aged 1 to 14 receive New
Year presents, while parents of children
under 1 year of age are entitled
to financial assistance equivalent
to the cost of a corporate New Year
present for their child. Parents of first
graders annually receive RUB 10,000
in financial assistance on the occasion
of the Knowledge Day.
Health care and improvement
of working conditions
Employees can seek psychological,
financial, and legal assistance and
receive active lifestyle and healthy
eating advice.
The Company implements a unified
health and well-being management
policy. Since 2024, we have introduced
corporate competitions (the Sport
Walkers championship, PhosAgro
Generation, and Healthy Lifestyle
Mania), family runs, health checkups,
and dedicated health days across our
sites. Specialists provide consultations
on personal counselling, nutrition,
and therapeutic exercise. We have
established psychological relaxation
rooms and health corners at our
facilities, with workplace exercises
conducted at workstations. In October
2024, we launched yoga classes
at the Cherepovets site as a pilot
initiative.
For over a decade, we have been
implementing a substantial
programme to improve social
and working conditions. In 2024,
we invested approximately
RUB 500 mln in projects to improve
the conditions at our facilities.
PhosAgro provides employees with
vouchers to local and southern
health (rehabilitation) resorts and
corporate health (rehabilitation)
resorts. Employees and their family
members can apply on a competitive
basis for a free health resort vacation
programme, with 50% of travel
expenses covered. Employees
and veterans of the Company,
as well as their family members, have
access to corporate health resorts
at a reduced price.
The Company offers financial support
to employees facing hardships
in life such as fire, flood, theft,
or bereavement.
Each employee is provided with
a supplementary health insurance
policy covering examinations, doctor’s
appointments, discounted dental
services including dental prosthesis,
and telemedicine access.
Housing programme
The Company runs a corporate housing programme by:
Offering compensation
of interest paid on mortgage
loans. Candidates are selected
using a point-based system.
The programme aims to retain
highly qualified professionals
with hard-to-find skills, including
workers from other regions.
Priority is given to employees
included in the talent pool,
participants of young talent
support programmes, and
employees with strong work
performance and a track record
of social activities
Building corporate housing
in the cities and towns where
it operates
Since the programme’s
inception, the Company has
helped around 3,000 employees
improve their living conditions
Providing corporate
accommodation equipped with
all the necessary amenities.
Additionally, employees who
lease private apartments receive
compensation for their rental
expenses
SUPPORT FOR VETERANS
!
Our veteran organisations
bring together retired
workers and use corporate
funding for a wide range
of social support measures
and leisure-time activities.
There is a dedicated corporate
pension programme in place
for retired staff.
6 SOCIAL BENEFITS AND EMPLOYEE GUARANTEES
3
2
4
1
162
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2 Occupational diseases registered among the Company’s own staff, excluding the employees of managed companies, subsidiaries and affiliates.
1 In accordance with the materiality principle, the quantitative metrics in this section are presented for Apatit (Boundary 2) (Apatit is a subsidiary of PhosAgro
holding its production assets).
INDUSTRIAL
safety
AREA, STRATEGIC GOALS AND HIGHLIGHTS OF 20241
0
fatalities across all employee categories
22%
reduction in injuries in 2021–2024
462
employees diagnosed with occupational diseases, or less than
0.2% of total headcount
0
fatalities caused by occupational diseases
0
accidents
1
transport incident with a victim
46%
reduction in transport incidents
in 2022–2024
1 WORK-RELATED INJURIES
3 OCCUPATIONAL DISEASES
4 EMPLOYEE TRAINING
2 TRANSPORT SAFETY
Target
3.4, 8.8
Target
3.4
Target
3.4
Target
Target
Target
Target
Actual
Actual
Actual
Actual
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
As part of occupational health and safety
training and knowledge assessment,
employees completed the following
types of courses:
3,210 employees
training on general occupational
health and safety matters and the OHS
management system
14,385 employees
training on methods and techniques
of staying safe during works involving
exposure to harmful and/or hazardous
production factors (as identified by
special assessment of workplace
conditions and occupational risk
assessment)
5,879 employees
first aid training
4,346 employees
training on methods and techniques of
staying safe during high-risk works that
are subject to additional requirements
under the government’s OHS regulations
9,374 employees
training on the use of personal protective
equipment (PPE)
Disease prevention and health improvement among the
employees of all production sites
Providing employees with access to high-quality affordable
healthcare
Improving safety competencies
Keeping employees motivated to stay safe and protect others
Reducing risks of traffic accidents
Target
4.4, 8.8
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STRATEGY
All employees of PhosAgro Group
and its contractors need to go back
from work to their loved ones in
perfect health. This is the underlying
principle of all our efforts to ensure
safe, healthy and comfortable
workplace conditions.
Our Strategy to 2025 focuses on
fostering a safety culture and adhering
to the highest occupational health
and safety standards. In 2024, we
started developing our Health and
Safety Strategy for 2025–2026, which
will define key focus areas and target
initiatives to reduce risks associated
with various operations of the Group.
!
PhosAgro Group is consistently
improving its safety culture,
employee responsibility
and awareness, hazard
identification procedures and
danger prevention measures
by putting managers at all
levels in charge and studying
and applying best health and
safety practices. We apply
continuous efforts to identify
and reduce health and safety
threats to PhosAgro Group
employees, contractors
and visitors to the
Company’s sites.
The Company’s relevant goals and
objectives, both strategic and day-
to-day, are based on huge volumes
of data derived from internal
and external audits, inspections,
incident investigations, employee
recommendations and feedback.
MANAGEMENT APPROACH
GRI 3-3, 403-1
We pay special attention to making
our health and safety system
compliant with applicable laws and
the highest international standards.
In December 2024, the Cherepovets
site of Apatit successfully completed
certification for compliance with ISO
45001:2018 (Occupational Health
and Safety Management System). In
April 2024, for the third time running,
the facility won the contest Best
Occupational Health and Safety
Practices in Branches, Representative
Offices and/or Subsidiaries Operating
in the Vologda Region on a Permanent
Basis in the category for the Best
Company in the Vologda region.
Health and safety management system
Board of Directors level
• Sets strategic priorities and develops relevant policy
• Reviews executive management’s health and safety
reporting
Strategy and Sustainable Development
Committee of the Board of Directors
Operational level
Operational OHS staff
• Oversee OHS policies and strategies at respective
production sites
• Arrange for the development and implementation
of effective response measures following internal
and external audits and accident investigations
• Monitor the site’s compliance with OHS regulations and
corporate standards
• Arrange for the development of target programmes and
monitor OHS events and trainings
• Interact with relevant regulatory authorities on behalf of the
site and facilitate inspections
• Conduct internal inspections and audits, produce and
present analytical reports to the local management
Heads of production sites
Local OHS management functions
Group Management level
• Define and oversee the health and safety policy
• Review all on-site incidents within the Group on a weekly
basis
• Supervises OHS management functions across the Group
to implement OHS policies and strategies
• Collects data, does analysis, and prepares OHS reports
for the Management Board and 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
Executive bodies
OHS Department
166
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GRI 403-3
Occupational health
and safety functions
Occupational health and safety
functions play a key role in ensuring
safety at our facilities.
Their main objectives are:
• taking steps to ensure compliance
with OHS requirements by workers
and third parties;
• monitoring workers’ compliance
with OHS laws and regulations, the
Collective Bargaining Agreement,
OHS agreement and other internal
regulations;
• preventing workplace injuries,
occupational diseases and
improving workplace conditions;
• advising workers and contractors on,
and raising their awareness about,
occupational health and safety;
• studying and promoting best OHS
practices.
Apart from applicable laws, these
activities are regulated by:
• health and safety SOPs at the facility
(shop) level;
• production SOPs;
• worker health and safety
instructions;
• corporate standards;
• process regulations;
• accident management action
plans, etc.
GRI 403-4
OHS interactions
and awareness raising
For better OHS communication
with employees, we have adopted
the Regulations on the OHS
Communication System. Pursuant
to the Regulations, the OHS
communication system is divided into
internal and external communications,
and provides for a feedback procedure:
• regular OHS meetings at business
units and enterprises;
• OHS meetings on production sites,
in departments and at facilities;
• union and union committee
meetings (for feedback from OHS
officers);
• corporate e-mail;
• corporate periodicals;
• local health and safety committees;
• employee loyalty surveys;
• OHS questionnaires.
Internal communication is achieved
through:
• local health and safety committees;
• management meetings and
conferences to discuss the health
and safety performance of our
enterprises;
• meetings with heads of enterprises
during leadership visits to
production units;
• regular OHS meetings in
departments, on production sites
and at facilities;
• 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.).
Local health and safety
committees
Since 2014, health and safety
committees have been functioning
at the Group’s companies. They are
both an integral part of our OHS
management system and a form of
employee participation in it. In their
work, these committees rely on the
principles of social partnership. As
part of their activities, health and
safety committees draft and improve
programmes to join efforts of the
employer, employees and trade unions
in ensuring occupational health and
safety.
Committee meetings are chaired by
heads of companies and held at least
once a month online or at least once
every two months offline. At meetings,
information exchange and reporting
are multilateral, as both health and
safety functions and local unit heads
report on health and safety progress.
All resolutions are documented in
minutes of the meetings.
As part of these workstreams, health
and safety committees consider
the following topics:
• Golden Rules of OHS;
• Safety Culture Transformation
Project;
• OHS leadership;
• OHS motivation;
• effective OHS communications;
• contractors’ safety;
• PPE effectiveness;
• trade union report.
Workers are represented at committee meetings by heads or representatives
of local unions.
Meeting agendas comprise nine workstreams:
23
meetings held by health and
safety committees in 2024
695
resolutions adopted
accident/incident investigation
occupational health and safety
industrial safety
1
safety assessments and audits
4
development of health
and safety management
education and training
7
5
road traffic safety
8
2
3
safety projects (programmes, initiatives)
9
fire safety
6
STAKEHOLDER
ENGAGEMENT
!
In industrial safety, the key
stakeholders are:
• Company management;
• representatives of third parties
engaged to perform works
at the Group’s sites;
• supervisory and statistical
government agencies;
• customers/consumers;
• employees.
To engage stakeholders on OHS
matters, we rely on:
• information and analytical
materials presented at safety
and committee meetings and
distributed through corporate
media;
• strategic sessions held
to discuss bottlenecks
and growth points, adopt
coordinated decisions, and
develop corrective actions;
• statistical data and factor
analysis shared with
stakeholders to track
the evolution of safety
performance;
• a system of meetings covering
all levels from company
directors to line managers of
business units;
• feedback tools such as Public
Scrutiny, information boxes for
requests, corporate chat, and
ProPhosagro mobile app.
p.
178
p.
170
p.
170
For more information on
OHS engagement with the
Company’s employees, see
Engagement with
contractors
Engagement with
government bodies
168
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Improving contractor safety
practices
Measures to ensure safety
of contractors’ employees working
at our production and other facilities
are an integral component of our OHS
strategy. They include the selection
of contractors based on a health
and safety qualification assessment,
briefings, enforcing their application
of our safety tools, and conducting
relevant OHS compliance audits.
In 2024, the Group delivered a project
focusing on the implementation
of the OHS Competency module
powered by the SCOUT platform as a
way to digitise and automate OHS skill
assessments and enhance their
transparency.
For contractors, we conduct training
and practical knowledge assessments
at the Company’s training grounds to
make sure contractor employees have
the required skills. The Company also
develops joint schedules for control and
preventive actions in collaboration with
the contractor’s OHS functions, with
the results of such actions discussed
at meetings.
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
(Rostechnadzor), State Labour
Inspectorate, Federal Service for
Surveillance on Consumer Rights
Protection and Human Wellbeing
(Rospotrebnadzor), and the Ministry
for Civil Defence, Emergencies and
Elimination of Consequences of Natural
Disasters (EMERCOM). 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 June 2024, the Department for
Supervisory and Preventive Activities
in the Balakovo District (part of the
Division for Supervisory and Preventive
Activities of the Main Division of the
EMERCOM of Russia for the Saratov
region) made a preventive visit to the
Balakovo branch of Apatit. No remarks
were made or prescriptions issued
following the visit.
p.
128-141
For more information, see the Supply
Chain section
175 audits
carried out by state supervisory
authorities at Apatit and its
managed companies in 2024
We also run internal audits conducted
by our OHS departments and
directorate, managers and employees
exercising production H&S control.
After external and internal audits,
the Company issues orders and
instructions outlining remedial action
plans and establishing the deadlines
and responsible persons. Identified
breaches are remedied within the
agreed time limits.
The Company has a procedure
for drafting, submitting and reviewing
reports on internal and external OHS
audits. The results of all internal and
external assessments and audits are
recorded in the Safety and Instructions
(Shift Assignments) management
systems offering instruments for
further analysis, gap identification,
and elimination monitoring. We also
submit all relevant reports to state
supervisory bodies and statistical
agencies in accordance with
the Russian laws.
RISKS AND OPPORTUNITIES
HR risk
OHS-SPECIFIC RISKS:
!
Occupational risks of the Group’s
business units, including
occupational disease risks
!
Safety culture risks, including
OHS communications and safety
incentives
!
Risks of OHS-related regulatory
changes
The Group 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, including:
!
reduction of occupational injuries
through training, awareness,
and motivation programmes on
occupational health and safety;
!
proactive OHS management as part
of the Company’s safety culture
transformation project;
!
stronger efficiency in interacting
with the Government’s OHS
supervision agencies thanks to
the development of remote and risk-
oriented control methods.
4
6
13
health and safety risk
GRI 403-2
The following strategic risks affect our OHS objectives:
regulatory risk
For more information, see the
Strategic Risks section
p.
66-75
!
ESG assessment is a key factor
in contractor selection.
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170
171
1 The total may differ from the sum of parts due to rounding.
PROJECT TO ROLL OUT THE OHS REMOTE MONITORING SYSTEM
AT THE CHEREPOVETS SITE OF APATIT
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 2024:
– 134 test alerts;
– 654 fire training sessions;
– 123 evacuation drills;
– 7 joint fire drills with EMERCOM;
• in 2024, Rostechnadzor supervised
all test drills conducted across
class 1 hazardous facilities and
assessed the results as positive;
• in 2025, we plan to hold joint drills
at the inter-plant ammonia pipeline
by engaging the manpower
and resources from the city of
Cherepovets.
KEY RESULTS IN 2024
!
In 2024, PhosAgro maintained
an impeccable safety record
with zero accidents or fatalities
among its own employees, as
well as those of contractors,
subsidiaries and affiliates.
LTIFR for all personnel
categories was 0.54 (compared
to 0.61 the previous year),
and the number of transport
incidents decreased by
approximately half compared
to 2022.
The significant increase in OHS
expenses is primarily related to
greater investments in providing
employees with personal
protective equipment, organising
and conducting professional risk
assessments with specialised
organisations, medical support for
employees, examination of industrial
safety, and the implementation
of two targeted programmes as
part of the Comprehensive Target
Programmes for Hazardous Facilities
and improving the operational
reliability of buildings and structures.
SASB RT-CH-320a.2
We are constantly working to assess
and mitigate risks. We perform risk
assessment and classify risks by
severity and frequency using our
dedicated proprietary methodology.
Following hazard identification and
risk assessment, the unit’s OHS
officer compiles a List of Occupational
Risks, which is then used as a basis
for the Company’s List of Material
Occupational Risks. 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.
The Company has instituted a
robust protocol that facilitates swift
communication from eyewitnesses
to the appropriate functions and
managerial personnel, including
PhosAgro’s CEO, by means of
corporate communication tools
such as text message alerts and
telephone calls.
All 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 employee
health and life.
For better OHS efficiency, and to
automate and streamline the relevant
processes, we have introduced and
now use the Safety and Instructions
(Shift Assignments) management
systems. Both systems include a
Risk Management module. The
OHS expenses of Apatit, RUB mln
MED 27
2022
2023
2024
2,428
3,996
1,971
1,087
9,4811
7,4351
4,9771
1,863
2,956
1,709
907
1,545
2,002
983
447
Cherepovets site of Apatit
Kirovsk branch
Balakovo branch
Volkhov branch
technology for hazardous production
facilities, and a relevant legal
framework. The technology is expected
to improve the overall reliability and
monitoring efficiency of safety systems,
and help reduce the associated
paperwork and bureaucracy.
The OHS remote monitoring system
was put into operation in April 2023,
with the process configured to enable
data transmission to the Automated
Information System of Rostechnadzor.
Representatives of Apatit took
part in a meeting convened by
Rostechnadzor to present the Report
on Accomplishments under the OHS
Remote Monitoring System Project at
the Fluosilicate Acid Storage Facility of
the Aluminium Fluoride Shop. The key
achievements were as follows:
• practical implementation of
a risk-oriented approach to
assessing industrial safety at the
hazardous facility;
module enables internal check list-
based OHS assessment at all units of
Apatit. The module’s new underlying
principles help enhance production
H&S control, while its new functions
facilitate operation, monitoring and
analysis.
The Company has a formal procedure
for addressing workplace hazards.
When a hazard is identified,
employees are required to suspend
work and report it to their supervisors
directly or via the Public Scrutiny
mobile app. The supervisor uses the
report to assess the risk and develop
a remedial action plan.
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
!
The Company endorses
the initiatives put forth by state
authorities as regards OHS data
disclosure, in order to facilitate
remote monitoring measures
and alleviate the regulatory
oversight burden.
TARGETED PROGRAMME FOR UPGRADING APATIT’S FIRE SAFETY
SYSTEMS IN 2025–2029
In 2024, the facilities of
the Cherepovets site, Kirovsk,
Volkhov and Balakovo branches
were audited by the OHS
Directorate (the customer)
for the availability and compliance
of fire protection systems with
the requirements of applicable
rules and regulations. The audit
helped identify facilities that
require repairs, replacement or
installation of new automated
fire safety systems. In 2024,
we completed the initial cost
assessment for the targeted
programme.
The programme is being
implemented as required by
a corporate order on the creation
of working groups across the
branches of Apatit, with the
following key requirements
established in its regard:
• introduction of operational
supervision tools to monitor
industrial safety at the hazardous
facility;
• enhancement of process
discipline among the hazardous
facility’s operating personnel;
• arrangements made to
transfer data to the Automated
Information System of
Rostechnadzor;
• discussion of challenges related
to the transfer of data from
Apatit to the local branch of
Rostechnadzor;
• implementation of corrective
measures to address data
transmission errors, with
solutions provided by Dynamic
Systems LLC, the general
contractor.
defining goals and objectives at
various management levels;
providing the implementation
timeline;
prioritising activities according
to the work stages;
outlining the financing
procedure.
172
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
LTIFR2, per mln of hours worked
Item
2022
2023
2024
Employees, including
0.32
0.37
0.56
Cherepovets site of Apatit
0.12
0.32
0.57
Kirovsk branch
0.22
0.41
0.59
Balakovo branch
0.80
0.00
0.31
Volkhov branch
0.88
0.80
0.76
Employees + staff of external contractors (including subsidiaries, affiliates, and managed companies,
Boundary А3)
0.38
0.61
0.54
Employees + staff of external contractors (including subsidiaries, affiliates and managed companies,
Boundary B4)
0.40
0.64
0.57
Fatalities as a result of work-related injury, per mln of hours worked
Item
2022
2023
2024
Employees
0.05
0.00
0.00
Staff of external contractors (including subsidiaries, affiliates, and managed companies, Boundary A)
0.00
0.00
0.00
Staff of external contractors (including subsidiaries, affiliates, and managed companies, Boundary B)
0.00
0.00
0.00
1 Include aspects such as inadequate control by distribution information systems, work permit violations, poor coordination, etc.
2 Lost time injury frequency rate, excluding fatalities.
3 Boundary A: the above data includes subsidiaries, affiliates and managed companies within the Group that are covered by the occupational injury accounting
system: Tirvas, Gorny Tsekh, PromTransPort, Korporativnoe pitanie, Construction Materials Centre, DROZD-Khibiny, NIUIF, Aeroport, SMART, Teleset, Khibiny
Electricity Retail Company, Ecoprom, Tirvas Public Catering, Khibiny Airport, PhosAgro Education Centre, Mekhanik, PhosAgro Engineering Centre, Trading House
PhosAgro. Some of them are non-profit organisations or are not subsidiaries or affiliates of Apatit.
4 Boundary B: the above data includes the following subsidiaries, affiliates and managed companies of Apatit: Tirvas, Gorny Tsekh, PromTransPort, Korporativnoe
pitanie, Construction Materials Centre, Aeroport, Teleset, Khibiny Airport, Mekhanik, Khibinskaya Teplovaya Kompaniya.
GRI 403-9, SASB RT-CH-320a.1, RT-CH-540a.1, MED 29
In 2024, there were no fatalities
across the Company’s facilities, and
the total number of minor work-
related injuries decreased. There was
a total of 32 injuries recorded in 2024
compared to 33 in 2023. Of these
injuries, 17 occurred to employees
of contractors, subsidiaries and
affiliates, and 15 to PhosAgro’s own
staff (compared to 24 and 9 in 2023,
respectively).
We were deeply saddened by the
accident which occurred at the
production site of Apatit’s Kirovsk
branch in October 2023, resulting
in an employee sustaining a serious
injury. Subsequently, the employee
died in a medical facility; however, the
WORK-RELATED INJURIES
injury sustained in the accident was
not the direct cause of his death. The
investigation has been completed.
We have thoroughly analysed the
circumstances of the fatality and
communicated conclusions and
recommendations on preventive
measures, including a range of
technical and organisational steps, to
the management and employees of
the facility.
The Company firmly believes that our
primary challenge lies in minimising
the “human factor” – dangerous
employee actions1 that account for
over 90% of all injuries. Rolling out
the existing methods and tools in the
field of occupational safety among
personnel of contractors, as well as
subsidiaries, affiliates and managed
companies, will further reduce the
level of occupational injuries among
this category of personnel.
Most of the injuries reported in 2024
were related to striking against
objects, falls while moving, and falls
from heights.
The main causes of work-related
injuries in 2024 were poor work
organisation, violations of labour
and industrial discipline, personal
negligence, and underestimation of
risks by the injured persons.
THE COMPANY PLANS TO CONTINUE IMPLEMENTING ITS SAFETY IMPROVEMENT STRATEGY
BY LEVERAGING ADVANCED SAFETY TOOLS AND MODERN COMPREHENSIVE SOLUTIONS AND
APPROACHES THAT HAVE ALREADY PROVEN EFFECTIVE, INCLUDING:
senior management’s leadership and
commitment to health and safety;
allocating sufficient funding to
ensure occupational, industrial and
fire safety;
knowing and applying international
and domestic best practices;
improving the internal incident
investigation process to identify and
eliminate root causes;
implementing project solutions and
targeted programmes to improve
workplace safety;
providing employees with modern
and effective personal and collective
protective equipment;
involving blue-collar workers (OHS
officers) in directly managing health
and safety in their business units;
reviewing the structure and
functions of occupational health,
industrial safety and fire safety
services with a focus on enhancing
control and preventive work;
developing and implementing
a system of incentives motivating
all categories of employees for safe
working practices;
developing and updating e-courses
to educate employees in corporate
health and safety requirements;
integrating corporate health and
safety requirements into the work of
contractors;
digitalising data management
processes to support high-quality
analysis and effective management
decision-making.
selecting and appointing highly
qualified leaders to key positions in
occupational health, industrial safety
and fire safety services;
Severe injuries (excluding fatalities), per mln of hours worked
Item
2022
2023
2024
Employees
0.00
0.04
0.19
Staff of external contractors (including subsidiaries, affiliates, and managed companies, Boundary A))
0.04
0.17
0.09
Staff of external contractors (including subsidiaries, affiliates, and managed companies, Boundary B)
0.04
0.19
0.10
Work-related injuries, per mln of hours worked
Item
2022
2023
2024
Employees
0.36
0.37
0.56
Staff of external contractors (including subsidiaries, affiliates, and managed companies, Boundary A)
0.44
0.82
0.53
Staff of external contractors (including subsidiaries, affiliates, and managed companies, Boundary B)
0.48
0.89
0.57
174
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
1 The 2023 Integrated Report included data for PhosAgro’s own staff only, while this table also covers staff of subsidiaries, affiliates, and managed companies.
GRI 403-6, 403-7, 403-10
PhosAgro places a strong emphasis
on disease prevention, health
improvement, and high-quality
affordable healthcare and prevention
for the employees of its facilities.
In the reporting year, 46 employees
of Apatit were diagnosed with
occupational diseases (compared
to 58 in 2023 and 15 in 2022), which
represents less than 0.2% of the
total average headcount. In 2024,
12 employees were diagnosed with
occupational diseases (compared
to 2 in 2023). These employees are
representatives of subsidiaries and
managed companies and perform
their duties at the Cherepovets site
and Kirovsk branch of Apatit.
The main causes of these occupational
diseases were lasting exposure to
general vibration beyond maximum
permissible levels, physical exertion, and
functional overstrain of individual organs
and systems in respective locations.
As part of preventive care and health
promotion efforts for employees
and veterans in 2024, the Company
purchased 4,900 vouchers for them
to go to health resort facilities.
Employees and members of their
families have access to corporate
recreation centres and health resorts
in Southern regions at a reduced price.
In 2024, over 1,200 vouchers were
granted for employees to spend their
holidays at southern health resorts.
More than 25,000 employees, their
family members, and pensioners
enjoyed vacations at corporate
recreation centres.
PhosAgro Group’s facilities have
corporate fitness centres, which
include game halls, gyms, and
swimming pools and are available to
employees on a daily basis. The pool of
our Cherepovets facility offers classes
in water aerobics and swimming
lessons, both very popular among
employees. In 2024, over 29,000
people visited the Cherepovets sports
and recreation facility.
An annual sports contest (Spartakiad)
is held for employees in 18 sports.
Teams in football, volleyball, and
other sports represent the Company
in various levels of competitions,
including national ones.
Since 2020, our production facilities
provide free psychological support
to employees, with in-house
psychologists available to them for
counselling and advice. As part of the
Employee Mental Health Support
programme, the Company offers
meetings in person, online interviews,
and comprehensive events such
as webinars, training sessions, and
marathons to minimise conflicts
in teams, improve psychological
resilience, and increase performance.
In 2024, on-site psychologists
received 4,280 requests from the
Company’s employees.
!
In 2024, the Balakovo branch
of Apatit opened three
psychological relief rooms
across its production units.
OCCUPATIONAL DISEASES
Number of employees diagnosed with occupational diseases1
Branch
2022
2023
2024
Cherepovets site of Apatit
1
2
0
Kirovsk branch
14
58
57
Volkhov branch
0
0
0
Balakovo branch
0
0
1
Total
15
60
58
GRI 403-10
The Company continued its active
implementation of the Well-being
and Health programme, successfully
launching projects such as PhosAgro
Sport Walkers club (Apatit), the Healthy
Lifestyle Mania movement (Balakovo
branch), and corporate running events
(Balakovo, Volkhov, and Cherepovets).
These initiatives were designed to
introduce employees to the benefits
of an active lifestyle and increase
participation in regular physical and
sporting activities.
To promote traditional spiritual values,
improve social and psychological
climate in the team, and enhance
emotional well-being, the Company
does a lot to help build and reconstruct
Orthodox churches.
Those employees whose children
are involved in the DROZD project
(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 tests.
!
In 2022–2024, there were
no fatalities caused by
occupational diseases.
SASB RT-CH-540a.2
From 2022 to 2024, PhosAgro Group
was able to reduce the total number
of traffic accidents (by 46%), from 13
accidents in 2022 to seven in 2024.
The initiatives implemented by the
OHS Department and transport
departments to mitigate traffic
accident risks includes drafting internal
regulations to ensure safe operation of
motor vehicles, self-propelled machines,
and rail transport, performing targeted
and full-scope inspections of vehicles
used by our contractors, subsidiaries,
enhancing the competencies and skills
of PhosAgro employees responsible
for operating all types of transport, and
introducing various technical solutions
to mitigate risks of traffic accidents.
In the Kirovsk branch, testing of
an electronic collision prevention
system on quarry dump trucks
has been successfully completed,
with installation preparations
now underway. Meanwhile, at the
Cherepovets site, pilot tests have
begun on shunting diesel locomotives
using an innovative onboard computer
vision system based on artificial
intelligence. Based on these test
results, the Company will decide
whether to scale the project across
the entire locomotive fleet. Mobile
road safety teams operate effectively
at all Company sites, monitoring
compliance with both federal and local
road safety requirements among all
road users. The Company also places
strong emphasis on driver and vehicle
operator development, with personnel
regularly undergoing defensive
driving training and participating in
professional skill competitions. The
winners of these events go on to
represent the Company at national
and international competitions, where
they consistently achieve award-
winning results.
Work-related injuries in 2022–2024
Branch
Minor injuries
Severe injuries
Fatal injuries
Total
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
Cherepovets site of Apatit
1
3
5
–
–
1
–
–
–
1
3
6
Balakovo branch
2
–
1
–
–
–
–
–
–
2
–
1
Volkhov branch
2
2
2
–
–
–
–
–
–
2
2
2
Kirovsk branch
2
3
2
–
1
4
1
–
–
3
4
6
Subsidiaries and affiliates, Boundary A
6
11
8
1
4
1
–
–
–
7
15
9
Subsidiaries and affiliates, Boundary B
6
11
8
1
4
1
–
–
–
7
15
9
External contractors
5
8
6
–
1
2
–
–
–
5
9
8
TRANSPORT SAFETY
Traffic accidents at Apatit
and its brances
Road
Rail
2022
2023
2024
5
2
7
8
13
5
3
10
3
Number of hours worked by the Company’s employees and staff of external contractors
Item
2022
2023
2024
Employees
22,196,069.58
24,508,418.38
26,565,896.28
Staff of external contractors (including subsidiaries, affiliates, and managed
companies, Boundary A)1
27,194,133.46
29,222,666.40
32,161,864.87
Staff of external contractors (including subsidiaries, affiliates, and managed
companies, Boundary B)2
25,096,915.52
26,884,527.13
29,648,573.59
176
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
1 Apatit, including its branches and standalone business units.
PhosAgro makes efforts to improve
OHS competencies and knowledge of
its staff. Employees of PhosAgro Group
undergo online and in-person training.
Our e-courses are easy to understand
since they are made in the form of
illustrated slides with key highlights
on them. In particular, we offer an
e-course on corporate OHS standards.
It is followed by tests to check the
knowledge and understanding of the
standards and requirements.
Whenever required, the courses
developed earlier are updated
following changes in the law and the
Company’s internal regulations. In
2024, we developed and updated the
following e-courses:
• Contractor safety requirements
• LOTO system in maintenance and
repairs
• “Golden Rules” of OHS;
• Regulations on Arranging and
Holding Leadership Visits at Apatit
Business Units;
• Regulations on Risk Hunting;
• Health and Safety Management
System at Apatit;
• Procedure for the Placement of
Mobile (Modular) Buildings and
Structures (Accommodation Units)
at Apatit’s Premises;
• Management of contractors’
organisational and technical
documents.
Employees undergo OHS training,
including that in basic fire safety and
electrical safety, industrial safety pre-
certification sessions, and drills in the
Vysota training centre.
All our employees, from managers to
blue-collar staff, receive occupational
health and safety briefing and
training as required by the Russian
laws. Furthermore, employees of the
Company and contractors are offered
a number of additional courses.
We use animated videos to improve
OHS training and remind employees
about workplace safety.
GRI 403-8, 403-1
In 2024, 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
representatives of contractors as part
of the introductory briefing.
Transformation of
safety culture and OHS
management system
Since 2021, we have been running
a project – Transformation of Safety
Culture and OHS Management
System – focused on switching
to proactive OHS management.
The project covers key business units
of Apatit, entities under management,
subsidiaries and affiliates, and key
third-party contractors engaged by
our production sites.
In December 2023, PhosAgro
conducted an assessment of safety
culture levels across all production
units of Apatit and its branches.
Following this evaluation, in 2024,
strategic sessions were held in each
structural unit to develop targeted
corrective measures for enhancing
safety culture performance.
In 2024, the Company decided to
extend this initiative.
As part of project 255PB
“Transformation of safety culture
and OHS management system”,
which aims to improve work permit
system efficiency and develop safety
leadership capabilities among N2–
N4 level managers, the Company
made a decision in 2024 to extend
the project timeline into 2025. The
diagnostic assessment measuring
achievement of the project’s target
goal (safety culture level 3.1 as per the
Bradley curve) has been rescheduled
for late 2025.
As part of OHS training and knowledge assessment, employees completed the following types
of courses in 2024:
GRI 403-5
Type of training
Training on OHS requirements
Training on the
use of PPE
First aid training
Training on general
occupational health
and safety matters and
the OHS management
system
Training on methods
and techniques of
staying safe during
works involving
exposure to harmful
and/or hazardous
production factors
(as identified by
special assessment of
workplace conditions
and occupational risk
assessment)
Training on methods
and techniques of
staying safe during
high-risk works that are
subject to additional
requirements under
statutory OHS
regulations
Number of own
staff
3,210
14,385
4,346
9,374
5,879
EMPLOYEE TRAINING
14,700
employees of Apatit completed
18 e-courses in occupational
safety1
Target model of work permit system
Work planning
Issuance of a permit
Risk assessment and development
of controls
Pre-work briefing
Controls implementation
Work performance and
monitoring of compliance
Audit of controls
Completion and closing of
the work permit
STEP 1
STEP 4
STEP 7
STEP 2
STEP 5
STEP 8
STEP 3
STEP 6
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
We launched a new tool titled Cascade of Meeting, a multi-level system of safety
meetings designed to escalate challenging issues requiring resolution to N1–N3
managers whilst ensuring effective feedback reaches technological personnel.
Throughout 2024, we continued implementing the following
tools:
!
In 2025, the Company plans to
implement the Leadership in
Safety programme, which will
include structured interviews
and targeted questionnaires for
managers designed to assess
and enhance their leadership
qualities.
!
Programme objectives:
• to raise awareness of safety
issues among N1–N3 managers;
• to shift from inspections and
penalties to mentoring and
proactive oversight;
• to enable managers to show
commitment to safety by
personal example;
• to build understanding of
leadership impact on safety
culture;
• to be able to tell the difference
between the notions of “leader”
and “manager”;
• to develop a desire to
influence safety culture and an
understanding of how to do so.
!
Following an audit of the
corporate work permit systems
in place at the Cherepovets
facility and Volkhov branch
conducted in 2022, in 2023 the
Company developed a target
model of the work permit system
to be rolled out across our assets
as early as in 2025.
Raising awareness about OHS
To keep our employees well-informed
about our safety measures, PhosAgro
constantly develops and updates OHS
check lists, presentations and other
visual materials that emphasise the
crucial information employees must
Changes to labour safety
promotion programmes
Senior executives (CEOs of the
Company and its business units, as
well as their direct subordinates)
recognise the importance of OHS and
are committed to safety and ready to
take necessary managerial decisions.
Since 2014, PhosAgro has had a system
of KPIs that uses uniform standards
linking the size of management
remuneration to the efficiency of OHS
measures, among other things.
Incentive programmes
Leadership visits –
comprehensive study of business
units by top executives of
enterprises to jointly address
identified risks and develop
improvement actions;
1
Standard operating procedures –
a step-by-step operating protocol
for employees when performing
work beyond the scope of high-risk
operations when servicing specific
process equipment;
2
Audits of high-risk operations –
improving the safety of hot
and gas hazardous works,
underground construction work,
maintaining standards by means
of audit based on a checklist for
a certain type of work;
4
Risk hunting – engagement of
managers at the business unit
level in ensuring appropriate
working equipment, exploring the
business unit’s site with the basic
question “what can go wrong?”, and
mitigating occupational safety risks;
3
Briefings for each shift – daily awareness efforts for subordinate personnel
to reiterate on hazardous factors and control measures prescribed when
issuing a shift assignment before the start of a shift, admission to work
in accordance with the expected types of work and planned production
operations.
5
!
The key objectives of such
briefings are:
• fostering leadership skills
among mid-level managers;
• developing managers’ com-
munication skills;
• obtaining employee feedback
on safety issues;
• maintaining direct com-
munication between
managers and their
subordinate staff.
The Company has developed
OHS promotion programmes to
maintain each PhosAgro employee’s
engagement in ensuring their own
safety and the safety of those around
them, as well as to encourage the
employees to take initiative and
implement OHS improvements.
The incentive system includes both
individual and collective programmes.
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.
In the reporting year, the Company
was actively carrying out briefings
for each shift – daily OHS trainings
for employees, revising industrial
dangers/hazards, OHS requirements
(as set out in the Company’s internal
regulations, OHS guidelines, technical
and operational documents), and safe
work practices.
INDIVIDUAL INCENTIVE
PROGRAMMES ONCE A
QUARTER
COLLECTIVE INCENTIVE
PROGRAMMES ONCE A
YEAR
The employee incentive
system is being improved
annually, with an increase
in funding, RUB
2,665,638
2,523,053
2,339,090
2022
2023
2024
Best OHS Employee
1st place — RUB 15,000
2nd place — RUB 10,000
3rd place — RUB 5,000
CEO’s OHS Achievement
Award — team recognition
that rewards employees
for implementing the most
outstanding occupational safety
project, specifically those involving
innovative working methods
in occupational health and
safety that improve workplace
conditions.
RUB 125,000
+ RUB 50,000 for teams
participating in the super final
Safety Ideas
RUB 30,000
+ two prize places with a bonus
of RUB 5,000 for every idea
implemented
Best Public Scrutiny User —
rewarding employees who have
recorded the highest number of
hazards using the Public Scrutiny
mobile app.
1st place — RUB 15,000
2nd place — RUB 10,000
3rd place — RUB 5,000
Best OHS Business Unit
RUB 100,000
!
KPIs with regard to OHS:
• LTIFR covering all staff
categories, including
contractors;
• zero fatalities among all
employee categories, including
contractors;
• timely implementation
of action items from
improvement notices issued
by supervisory authorities;
• industrial safety indicator;
• zero accidents.
180
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
ENVIRONMENTAL
review
Waste reduction
2025:
40%
of hazard class I–IV waste recycled
and decontaminated
3 WASTE
Target
12.4
For the second consecutive year, we exceeded our
40%
target for waste recycling and decontamination.
During 2024, Apatit production sites in Cherepovets
and Balakovo increased their use of phosphogypsum as
a construction material
Target
Actual
Climate action and reduction of GHG
emissions
The Company developed a universal internal algorithm and
automated the information collection system for product
carbon footprints.
The RECSOIL project was launched.
A new parameter was introduced to refine calculations of
our internal carbon price.
The cost of carbon units was calculated at the Company’s
carbon farm in the Vologda region
2028 gross emissions:
Scope 1 —
4,175.5 kt of СО2-eq.;
Scope 2 —
794.7 kt of СО2-eq.
2028 per unit emissions: Scope 1 —
109.1 kt of СО2-eq.
Scope 1 gross emissions —
4,716.3 kt of CO₂-eq.
Scope 1 per unit emissions1 —
121.2 kg СО2-eq./t
Scope 2 gross emissions —
909.4 kg СО2-eq.
1 CLIMATE
Target
12.4, 13.1, 13.2
Target
Actual
Reduction of Scope 2 GHG emissions —
to 794.7
kt of СО2-eq.
by 2028 as a result of implementing
the Energy Efficiency Programme
2 ENERGY EFFICIENCY
Target
12.4, 13.1
Target
Actual
Green electricity purchased from TGC-1 now covers
100%
of the need for purchased electricity at the Volkhov and
Balakovo branches
2.26 GJ/t
consumption of all types of energy per tonne of finished
and semi-finished products
Reduction in pollutant emissions
to the atmosphere
2025: per unit pollutant emissions —
0.80 kg/t
4 AIR
Target
3.9, 12.4,
13.1
Target
Actual
At the Cherepovets site, we modernised the SK-600/1 and
SK-600/2 technological systems, implementing domestic
energy-efficient sulphuric acid production technology.
At the Balakovo branch, we reconstructed the SK-20
sulphuric acid production unit with domestic energy-
efficient sulphuric acid production technology, replaced
catalysts at both SK-17 and SK-20 units, and completed
technical upgrades to absorption systems in the phosphate
fertilizer shop
Gross pollutant emissions to the atmosphere
decreased by
more than 2 kt
y-o-y
The reduction in per unit pollutant emissions
compared was
0.712 kg/t
Target
Actual
Responsible water use
2025: per unit waste water discharge into
surface water bodies —
1.7 m3/t
excluding mining and pit waters
Per unit waste water discharge into surface water bodies
in 2024 was
1.83 m3/t
excluding mining and pit waters
Per unit water withdrawal in 2024 was
3.25 m3/t
excluding mining and pit waters
2025: per unit water withdrawal —
2.6 m3/t
excluding mining and pit waters
5 WATER2
Target
3.9, 6.3,
12.4
We continue implementing our Water Strategy, supported
by the Energy Efficiency Programme that includes measures
to reduce water consumption in production processes.
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 In 2024, the Company conducted a review of per unit targets for water withdrawal and waste water discharge. The new 2025 targets account for water flows
excluding mining and pit waters, which are natural in origin and flow in and out without involvement in production processes. These new targets were
discussed at a meeting of the Board of Directors' Strategy and Sustainable Development Committee and subsequently approved by the Board of Directors.
6 BIODIVERSITY
Target
3.9, 15.1
Target
Actual
Preservation of biodiversity
in regions of the Company’s
operation at a level securing
sustainability
• The Company adopted an internal
internal technical regulation governing
biodiversity protection and monitoring
across our regions of operation.
• Scientific research within the footprint
of the Vostochny mine was conducted
as part of our biodiversity protection
programme development.
• The Company released young fish
into water bodies across its regions
of operation
–3.42% y-o-y
–10,9% y-o-y
–3.7% y-o-y
+1% y-o-y
–1.3% y-o-y
–5.7% y-o-y
+9.6% y-o-y
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Performance review
STRATEGY
SASB EM-MM-160a.1, RT-CH-410b.2
At PhosAgro Group, we attach
much importance to environmental
protection and safety, as well as
climate risk management. Proper
focus on all of these areas helps
secure the Company’s sustainable
development and well-being of the
regions across its geography. Our
We believe that our requirements
should be uniform both for us and
our partners engaged in PhosAgro’s
projects. Everything we require
of ourselves equally applies to our
counterparties and is enshrined in the
Code of Conduct for Counterparties.
APPROACH TO ENVIRONMENTAL MANAGEMENT
GRI 3-3, 101-1
Environmental stewardship has always
been a core priority for PhosAgro
Group. We operate in regions with
fragile and unique ecosystems,
and safeguarding their sustainable
natural integrity is our unwavering
commitment. Our operations undergo
a stringent assessment for compliance
with the Environmental Policy and the
Company’s internal regulations.
The effectiveness of our
environmental impact
management system serves
as a cornerstone for PhosAgro
Group's long-term business
sustainability. It also reflects our
fundamental commitment to
responsible corporate citizenship,
carefully balancing the interests
of diverse stakeholders, including
local residents in our regions of
operation, employees and their
families, and our technological
partners and contractors.
PhosAgro Group public discussions coverage
Item
2022
2023
2024
Number of public discussions
12
17
9
Average number of participants per discussion
6
22
7
Climate
Air
Energy efficiency
1
2
5
4
6
3
The key principle underlying our
interaction with local communities
is a meaningful dialogue through
a variety of communication
channels, from public hearings
and the involvement of Company
representatives in the work of local
legislative and representative bodies
and government authorities.
Public hearings represent one of the
legitimate and effective mechanisms
for establishing dialogue with
stakeholders using a discussion
platform to express their opinions
and make suggestions on the
initiatives under consideration. This
mechanism has a positive impact
on the decision-making process
and improves its efficiency.
Engaging the general public and
various groups of stakeholders in
discussion plays an important role
and helps ensure that all points of
view are considered.
WE ADOPTED A UNIFIED APPROACH TO ENVIRONMENTAL
MANAGEMENT THAT INCLUDES:
Company-wide control.
Putting Strategy to 2025 into action and compliance with the Company’s
Environmental Policy are overseen by the Strategy and Sustainable
Development Committee that regularly reports on the Company’s progress
to the Board of Directors. The Department of Ecology and Environmental
Management exercises executive control over the Company’s environmental
activities.
Environmental
management system
Our environmental management
system is integrated in the Company’s
overall management framework and
is a key element in our approach to
managing environmental responsibility.
In 2022, the environmental
management system passed a
recertification audit across the
Company’s production sites and was
found to be in full compliance with
ISO 14001. In 2024, it successfully
underwent an inspection audit under
the same standard.
PhosAgro’s environmental
management system embraces all
management levels and all stages
of the product’s life-cycle, from
R&D to manufacturing and finished
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 Company’s management
to analyse environmental
management efficiency.
For the full text
of PhosAgro's
Environmental Policy,
see the Company's
website
For the full text
of PhosAgro's
Environmental Policy,
see the Company's
website
STAKEHOLDER
ENGAGEMENT
Strategy to 2025 and Environmental
Policy incorporate provisions to ensure
strict compliance with statutory
environmental requirements and
minimise the environmental impact
of the Company’s operations across
the entire fertilizer lifecycle, from ore
mining to food production.
We conducted a comprehensive
assessment of our activities,
identifying the main areas of
environmental impact, both direct
and indirect. We then correlated
these findings with the UN SDGs and
Russia's national development goals.
Based on this analysis, we mapped
out six strategic focus areas of
environmental protection:
Waste
Water
Biodiversity
A unified management system. 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
built in line with the ISO 14001 standards.
Strict compliance with
applicable statutory and
regulatory requirements.
For the list of public
discussions, please
visit the Company’s
website
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Performance review
Environmental management framework
Board of Directors level
Group Management level
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
Board of Directors
Strategy and Sustainable Development Committee
Responsible for general management, organisation
and coordination of efforts to continuously enhance
environmental management
Department of Ecology and Environmental
Management of JSC Apatit
Operational level
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
Environmental Control
and Management Service
Officers in charge of environmental
protection
!
Our strategic environmental
protection goals are set out
in the Company’s Strategy
to 2025, as well as Water
and Climate strategies. Their
achievement is included in the
KPIs of managers and senior
executives.
Compliance with statutory
and regulatory requirements
Environmental compliance is key to
running a responsible business.
PhosAgro Group’s environmental
management practices ensure our
compliance with the applicable
environmental and nature
conservation regulations and
regulators’ decrees. To that end, the
Company has in place an internal and
external control framework, which
includes internal audit and external
compliance reviews, a reporting
system designed in accordance with
legislative requirements, and a staff
training system.
All our facilities that have an adverse
environmental impact are included
in dedicated state registers, with
relevant categories assigned to them.
PhosAgro has all necessary permits in
place for each of these facilities.
None of PhosAgro’s enterprises uses
ozone-depleting substances in the
production process. A small amount
(not more than 250 kg/year) of
carbon tetrachloride (CCl4) is used in
laboratory testing.
We do not undertake cross-border
hazardous waste transportation and
our production sites are not situated
in protected areas. Hence, there are
no significant restrictions on our
operations.
Spending on environmental protection, RUB mln
MED 21
Item
2022
2023
2024
Current environmental protection expenses (form 4-OS)
6,534.600
7,394.921
8,538.425
Investments in fixed assets aimed at environmental protection (form 18-KS)
2,396.700
3,544.013
5,891.585
Environmental impact payments
192.5321
204.927
187.038
Environmental fines and damages
2.464
1.584
3.002
Total
9,126.296
11,145.445
14,620.050
The Company takes steps to remedy
the harm caused by an emergency in
2019 by committing RUB 3,002,000 to
the reproduction of aquatic biological
resources in 2024.
In 2024, our environmental
investments in fixed assets
increased, driven among other
things by the upgrade of absorption
systems at the Balakovo branch
and the establishment of dry
phosphogypsum storage at the
Cherepovets site, while current
environmental protection
expenditures also rose.
No audits of Apatit by local bodies
of Rosprirodnadzor were held in
2024. There were no administrative
proceedings involving the Company,
and hence no fines.
1 In subsequent periods, payment for
the negative environmental impact
in 2022 was adjusted following
the submission of a corrective
declaration.
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Share capital
Appendices
Performance review
The reduction in the Company's
environmental impact payments
was associated with decreased
phosphogypsum disposal in
waste facilities, achieved through
its expanded application as a
construction material at both the
Cherepovets and Balakovo sites.
In 2024, over-limit payments
accounted for 0.036% of total
environmental impact payments
(vs 0.86% in 2023). They resulted
from exceeding the permissible
emission limit for nitrogen oxides by
one of the emission sources at the
Cherepovets facility.
Assessment, analysis,
and monitoring
Continuous improvement is inherent
in our environmental management.
The Company identifies areas for
improvement in its environmental
management by reviewing its
management system using an
effective mechanism, which combines
external and internal audits, and
performance monitoring and
evaluation, including those by a wide
range of stakeholders, with the review
findings analysed and assessed by the
Company’s management. These efforts
enable us to work out corrective action
plans and proposals on how to develop
and improve the system.
When assessing the Company’s
performance, much attention is paid
to the analysis of ESG ratings and
investor feedback.
RISKS AND OPPORTUNITIES
Environmental risk management is an integral part of the
Company’s risk governance framework.
The following strategic risks affect our environmental protection
objectives:
The general approaches to
managing risks are set out in
the Strategic Risks section
For more information, see
the Strategic Risks section
environmental
risk
7
13
19
regulatory
risk
climate
risk
OPERATIONAL ENVIRONMENTAL RISKS
!
non-compliance with the
existing regulations on
environmental impact
!
energy efficiency issues
To mitigate those risks, the
Company develops corrective
measures as necessary and unlocks
opportunities:
!
climate change opportunities,
including the development of
fertilizers with a positive climate
profile, new logistics capabilities,
and services for companies that
embrace climate sustainability;
!
energy efficiency opportunities
through expansion of in-house
power generation, reduction of
energy losses, implementation
of energy saving measures, and
increased utilisation of renewable
energy sources;
!
opportunities associated with
decreased waste, emissions and
discharges, achieved by applying
best available techniques during
construction of new facilities
and reconstruction of existing
production sites.
p.
66–67
p.
68–75
Environmental impact payments, RUB mln
MED 21
Item
2022
2023
2024
Atmosphere
Maximum permissible emissions
2.7071
2.815
2.373
Temporarily permitted emissions
0
0
0
O-limit
2.355
1.756
0.067
Aquatic environment
Standard permissible discharge
4.864
4.366
5.387
Temporarily permitted discharge
0
O-limit
0
0
0
Waste
Limit
182.606
195.990
179.210
O-limit
0
0
0
Total
192.532
204.927
187.038
Including o-limit
2.355
1.756
0.067
Share of o-limit in total payments, %
1.220
0.860
0.036
1 In subsequent periods, payment for the negative
environmental impact in 2022 was adjusted
following the submission of a corrective
declaration.
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Share capital
Appendices
Performance review
188
189
SASB RT-CH-110a.2 / EM-MM-110a.2
OUR TARGETS
2024 HIGHLIGHTS
Scope 1 per unit emissions
121.2 kg/t
of finished and semi-finished
products
–19.5% vs 2018
100%
of mineral fertilizers supplied
by the Volkhov and Balakovo
branches are made using
carbon-free purchased
electricity
The Company launched
RECSOIL, a project
implemented jointly with UN
FAO, Lomonosov Moscow
State University, and Kept
on the fields of the partner
AgroGard. The project focuses
on recarbonisation (increasing
carbon accumulation) in
agricultural soils.
1 CLIMATE
Reduce gross GHG emissions
(Scope 1, 2, 3) by
14%
by 2028 vs 2018
Gross and per unit GHG
emissions (Scope 1 and 2)
across the Group, СО2-eq.
794.7
109.1
4,175.5
Gross GHG emissions (Scope 1), kt
Gross GHG emissions (Scope 2), kt
Per unit GHG emissions (Scope 1),
kg/t of finished and semi-finished
products
2024
2023
2028
цель
2022
909.4
121.2
4,716.3
829.7
128.5
4,778.9
821.6
133.1
4,909.0
Strategy and management
approach
GRI 3-3
The Company focuses on climate
change in line with the double
materiality principle: on the one hand,
it identifies and assesses the impact
of its operations on climate all along
the value chain from extraction of
raw materials to consumption of
finished products. On the other hand,
it projects how climate change affects
PhosAgro’s business, strategy, and
financial planning.
Main principles of PhosAgro
Group’s Climate Strategy:
• setting up targets to reduce 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;
• utilising technology-related
measures along with proper
organisation and management, as
well as sound social and personnel
policy, 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;
• engaging stakeholders to reduce
GHG emissions along the value chain.
The Climate 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 develop innovative fertilizers and
efficient plant nutrition systems to
reduce Scope 3 GHG emissions from
the use of fertilizers by farmers;
• to enter into new emerging markets
for green products;
• to retain and expand the existing
market niches by ensuring
PhosAgro Group’s competitive
edge in terms of energy and carbon
intensity.
Climate matters feature prominently in
PhosAgro’s strategic and investment
decisions, as well as in its day-to-day
management. In our evaluation of
investment projects, we use internal
carbon price mechanisms. The
Company has identified, assessed, and
prioritised climate risks, establishing
their short, medium and long term
consequences for its production
and business processes. We make
our strategic plans and day-to-day
management decisions with full
awareness of the nature and extent
of climate impact (both environmental
and political) on the Company’s
business, strategy, and financial
planning. The Group develops and
takes consistent steps to reduce
its carbon footprint and closely
interacts with partners across its
value chain (suppliers and consumers)
and other stakeholders domestically
and worldwide.
!
PhosAgro’s Climate Strategy
was adopted in 2020. It is a
comprehensive document
setting out the Company’s
climate policy in the face of
growing climate change and
uncertainty.
PhosAgro Group has LEAD status
under the UN Global Compact and is
a participant of the Climate Ambition
initiative.
Starting 2021, the Company has been
making annual climate disclosures in line
with the TCFD logic and starting 2023,
with key requirements of the new IFRS
S2, which enables the most thorough
disclosure of the climate-related aspects
of PhosAgro Group’s strategy, risks and
opportunities, management approach,
results, and indicators.
The Company’s representatives
are members of climate change
and sustainable development task
and expert groups instituted by
government authorities and non-
governmental organisations, and are
actively engaged in discussions on
current global challenges.
190
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Share capital
Appendices
Performance review
Materiality
Low
High
Medium
High
Risks and opportunities
GRI 201-2
PhosAgro identifies its climate risks
and opportunities based on climate
change. The process is influenced by
physical (changes in natural processes
or phenomena) and transitional
factors of various nature (changes in
the policy and regulation with a view
to fulfilling low-carbon transition).
The Company is currently focused
on creating particular metrics
reflecting the impact of climate action
in production and management
processes on financial indicators. To
that end, we assessed the impact
of the carbon border adjustment
mechanism (CBAM) on PhosAgro’s
operating expenses. The mechanism
covers Russian industrial products,
including, most likely, mineral
fertilizers. In 2024, a cross-functional
working group refined and automated
our product carbon footprint
assessment mechanism, among other
things to ensure alignment with the
CBAM requirements. The mechanism
underwent evaluation by international
consultants, and its methodology
was validated. The mechanism
helps measure carbon footprint per
each tonne of fertilizer based on a
transparent calculation methodology
for GHG emissions, which covers
production processes and semi-
product flows fully in line with the
CBAM guidelines.
Actions to deliver the Climate
Strategy
In 2024, we continued to implement
the Climate Agenda project
aimed at creating the climate
action management system and
pushing forward the low-carbon
transition plan.
IN 2024, THE FOLLOWING
WORK WAS COMPLETED AS
PART OF THE PROJECT:
• The international certification
body conducted verification of
our product carbon footprint
calculation report, providing
positive conclusions for
20 product types.
• We purchased certificates
for electricity obtained from
renewable and low-carbon
sources. In 2024, carbon-free
electricity from hydroelectric
power stations accounted for
100% of the externally sourced
carbon-free electricity for
the Balakovo and Volkhov
branches.
The Company’s experts continued
to explore options for absorbing
greenhouse gases in order to select
the most suitable ones across Group
facilities. In 2024, we also 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.
As a result of our efforts in 2024:
• Methods were developed to
calculate the carbon pool of forest
sites with a total absorption of 15.98
t of CO2-eq. / year, and 5.2 carbon
units / ha / year using the CDM
methodology. Total sequestration:
20,092 carbon units within 40 years.
p.
106–127
For more information on our work at
the carbon farm, see the Research and
Education
• At two 100 ha sites (Rus LLC and
the Plemzavod Mayskiy agricultural
complex), we tested carbon dioxide
sequestration in forage grasses
using the Company’s fertilizers,
including locally cultivated forage
crop varieties.
• We achieved an additional average
annual carbon sequestration of
2.6 carbon units / ha with a total
accumulation of 13.69 t of CO2-eq.
/ year and an increase in total yield
to 11.6%. We acquired experience in
using the equipment to estimate
carbon gain in ecosystems and the
carbon footprint of products.
Risks
• R1 — disruptions in production
processes and logistics operations
due to increasing acute climatic
effects and other climate-related
factors.
• R2 — flaws in supply chains,
construction design, health and
safety; negative environmental
footprint and reduced flows
of ecosystem services; lower
resilience of infrastructure and
communications due to increasing
climatic effects.
• R3 — PhosAgro Group’s failure to
comply with regulations reducing
its negative environmental
footprint (following the adoption
of the carbon border adjustment
mechanism).
• R4 — deterioration of the Company’s
sustainability reputation.
• R5 — increased costs and losses
(as a result of customers’ failure
to meet their obligations, rising
prices for feedstock, materials and
services, higher borrowing rates)
and shrinking revenues (as a result
of a decline in sales, customers,
countries and regions of operation).
Opportunities
• O1 — boosting PhosAgro Group’s
appeal as an environmentally and
climatically responsible supplier of
products with a positive climate
profile.
• O2 — improved logistics driven
by the new export opportunities
amid shortened seasonal freeze-up
of rivers and lakes due to climate
change.
• O3 — new financial products that
open up new sources of cheaper
funding (such as green bonds)
for companies that embraced
environmental and climate
sustainability.
Climate risk priority map
As part of our comprehensive
risk management framework,
we identify, assess, and manage
Emerging
Manageable
Relevant
climate risks. Covered value chain
stages – direct operations up and
down the value chain. Climate risk
management process is baked in
the company-wide risk management
processes.
Probability
R3
R4
R2
R1
R5
ASSESSMENT FREQUENCY:
quarterly.
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.
COVERED TIME HORIZON:
short-term,
medium-term,
long-term.
A detailed description
of climate risks and
opportunities, as well
as corrective meas-
ures taken in 2024
remained unchanged
and is presented in the
TCFD report on the
Company's website
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Appendices
Performance review
Report on planned activities
Focus areas
Climate-related risk and
opportunities
Description and results
Improve and implement technological
measures to mitigate the negative
impact of climate change on production
processes
R1, R2
The economic analysis of the majority of measures to
reduce direct GHG emissions developed in 2021–2024
showed their insufficient ROI. The Company decided to
further enhance technological solutions and keep looking
for other promising technologies in this field.
At the same time, a number of initiatives were
implemented at our facilities, such as using neutralisation
heat for product drying with a corresponding reduction
in gas supply – this was implemented in process systems
No. 1–4 of MFPU section 2 at the Cherepovets site
Prepare feasibility studies (business
projects) for innovative climate-resilient
products based on carbon dioxide
utilisation. Develop production in high-
potential areas
R1, R2, R5, O1
Development and testing of the Company's new
products, including biological and biologised fertilizers
that provide higher resilience of agricultural crops to
fluctuations in climate parameters. The nitrogen loss ratio
of traditional mineral fertilizers is 0.62–0.94%, compared
to 0.59–0.83% for their biologised counterparts, resulting
in an 8 to 35% reduction in the carbon footprint of the
produce
Reduce the negative impacts of climate
change on operational processes such
as disruptions in transportation of
products and raw materials, increased
consumption of water for industrial
use and waste water, product dusting,
failures to use equipment in accordance
with operating instructions and failures
to create proper workplace conditions
R1, R2, O2
The Energy Efficiency Programme was reviewed and
an updated one developed, aimed at reducing energy
consumption and increasing resource efficiency.
We purchase certificates for electricity obtained from
renewable and low-carbon sources. In 2024, green
attribute certificates for 300 mln kWh of electricity were
purchased through the NP Market Council Association
mechanism. As a result, in 2024, hydroelectric power
stations supplied 100% of the externally sourced
electricity for the Balakovo and Volkhov branches.
Response plans are being developed and updated for
natural and man-made situations at the Company's
facilities that may potentially be related to climate
change. Activities include liaising with the Company's
personnel
Introduce an automated system to
collect and process primary climate data
R3, R4, O1
The Company developed an automated information
collection system for calculating product carbon
footprints. This work was implemented as part of the
carbon footprint assessment process and improving the
greenhouse gas emission management system in the
Company to respond to stakeholders' requests about the
carbon footprint of the Company's products. The project
allows for generating reports on the required product
mix, including within the framework of implementing the
CBAM
Climate scenario analysis
The Company views climate scenario
analysis as a tool to make its climate
strategy resilient to uncertainties
and risks related to climate change.
In line with that, we adopted climate
scenarios and determined respective
scenario parameters that are most
probable and significant for the
Company in the short, medium,
and long term.
PhosAgro Group assessed the
impact of climate-related risks and
opportunities on its operations under
two climate change scenarios: global
warming of 2°С and 4°С. The key
features of the scenarios are:
• 2°С scenario is expected to result in
stringent climate policy measures
that will increase market volatility
(goods, services, finances, etc.).
This is projected to bring about
low-carbon transition, putting in
place mechanisms of a low-carbon
economy that will slow down
physical climate-related impacts
going forward;
• 4°С scenario is expected to result
in less stringent climate policy
measures as compared to the 2°С
scenario, triggering faster physical
climate-related changes.
Experts assessed the 2°C scenario
as the most probable, hence it was
selected as the basis for setting
targets, evaluating risks and
opportunities, and developing plans
under the low-carbon transition.
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.
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.
Key initiatives in 2024
The Company is implementing a set
of initiatives designed to achieve the
targets of its Climate Strategy.
The Company launched
RECSOIL, a joint project aimed
at recarbonisation (carbon
accumulation in soil) of agricultural
lands. The project will not only
accumulate carbon but also increase
soil resilience to climate change
and improve its agrophysical and
agronomic characteristics. The project
is implemented jointly with UN
FAO, Lomonosov Moscow State
University, and Kept on the fields
of the innovative partner AgroGard.
It encompasses developing low-
carbon agricultural practices,
conducting detailed agrochemical and
soil research with expert organisations,
formalising a climate project, and
!
We purchased certificates
for electricity obtained from
renewable and low-carbon
sources. In 2024, hydroelectric
power stations supplied 100%
of the externally sourced
electricity for the Balakovo
and Volkhov branches.
developing standardised (simplified)
design documentation for agricultural
climate projects.
A new parameter was introduced
to refine calculations of our internal
carbon price. To complement our
existing approach to carbon balance
assessment of investment projects, we
incorporated the price per tonne of
CO2-eq. as a parameter, aligned with
the EU ETS.
The cost of carbon units was
calculated at PhosAgro’s carbon
farm in the Vologda region. The
estimated cost of carbon units
obtained from forest sites is RUB
658 per carbon unit.
The international certification
body TÜV AUSTRIA Standards and
Compliance conducted verification
of our product carbon footprint
calculation report.
194
195
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
1 The entire volume of purchased electricity is fully covered by purchases of certificates for electricity from renewable and
low-carbon sources. Throughout 2024, however, the Company continued to purchase heat energy; consequently, the
table reflects the greenhouse gas emissions associated with this heat consumption.
Assets
UoM
2022
2023
2024
Cherepovets site (Apatit)
kt
3,790.0
3,695.1
3,667.5
Per unit emissions, Cherepovets site
(Apatit)
kg per tonne of finished and semi-finished products
229.1
222.4
217.5
Total gross emissions
kt
4,909.0
4,778.9
4,716.3
Total per unit emissions
kg per tonne of finished and semi-finished products
133.1
128.5
121.2
Indirect (Scope 2) GHG emissions, СО2-eq.
GRI 305-2, 305-4
Assets
2022
2023
2024
Gross emissions of the Kirovsk branch, kt
588.2
577.2
661,8
GHG emissions of the Kirovsk branch, kg per tonne of finished and semi-finished
products
49.1
49.0
53.1
Gross emissions of the Balakovo branch, kt
51.9
46.0
01
GHG emissions of the Balakovo branch, kg per tonne of finished and semi-finished
products
9.1
7.5
0
Gross emissions of the Volkhov branch, kt
44.6
17.8
6.71
GHG emissions of the Volkhov branch, kg per tonne of finished and semi-finished
products
16.7
6.6
2.2
Cherepovets site (Apatit), gross emissions, kt
136.9
188.7
240.9
GHG emissions of the Cherepovets site (Apatit), kg per tonne of finished and semi-
finished products
8.3
11.3
14.3
Total gross emissions, kt
821.6
829.7
909.4
Total GHG emissions, kg per tonne of finished and semi-finished products
22.3
22.3
23.4
Note
Greenhouse gas emissions were
calculated in line with the Guidelines
for Climate Impact Management
of PJSC PhosAgro and other Group
Entities (using the IPCC methodology).
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.
In 2024, the Company purchased
green attribute certificates and used
them to fully offset the electricity
purchased by the Balakovo and
Volkhov branches of Apatit.
Plans for 2025
Focus areas
Climate-related risk and
opportunities
Description, current status, and expected outcomes
Review the Climate Strategy
R1, R2, R3, R4, R5, O1, O2, O3
As part of putting together the Company's Development
Strategy to 2030, a review of all Climate Strategy
parameters is planned
Implement a project to transfer the
settlement of Titan in the Murmansk
Region to a different heat supply scheme
R3, R4, R5, O1
Repair and installation is underway. Reduce Scope 1 GHG
emissions to 19.204 kt of CO2-eq. / year
Implement the Energy Efficiency
Programme
R1, R3, R4, R5, O1
Reduction of GHG emissions
Analyse the existing approach to assessing
Scope 3 GHG emissions in the Purchased
Goods and Services subcategory
R3
Revision of the list of purchased goods and services
included in the assessment of Scope 3 GHG emissions in
order to obtain more complete information
Metrics and targets
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, including
both existing and prospective metrics.
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). The
Company calculates greenhouse gas
emissions in accordance with the
international guidelines:
• 2006 IPCC (Intergovernmental Panel
on Climate Change) 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 of global anthropogenic
GHG emissions, in order to keep global
temperature rise below 2°C by 2100.
Direct (Scope 1) GHG emissions, СО2-eq.
GRI 305-1, 305-4, SASB RT-CH-110a.1 / EM-MM-110a.1
Assets
UoM
2022
2023
2024
Kirovsk branch
kt
690.9
657.8
625.0
Per unit emissions, Kirovsk branch
kg per tonne of finished and semi-finished products
57.7
55.9
50.1
Balakovo branch
kt
236.6
232.7
228.2
Per unit emissions, Balakovo branch
kg per tonne of finished and semi-finished products
41.5
37.9
34.8
Volkhov branch
kt
191.5
193.3
195.6
Per unit emissions, Volkhov branch
kg per tonne of finished and semi-finished products
71.8
72.4
64.3
The results of the GHG assessment for
purchased renewable electricity, using
the market-based method based on
the certificate data, align with the
results calculated using the location-
based method.
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
Analysis of factors affecting changes in GHG emissions in 2024 compared to 2018
GRI 305-5
Scope 1
Scope 2
Scope 3
2018
2024
2018
2024
2018
2024
Production volume, mt
30.73
38.93
30.73
38.93
30.73
38.93
GHG, kt
4,624.59
4,716.35
924.11
909.42
12,634.421
15,482.27
Change in GHG emissions in the
reporting year vs 2018, %
1.98
–1.59
22.54
Per unit GHG emissions, kg/t
150.47
121.20
30.07
23.36
411.08
397.72
Change in per unit GHG emissions
in the reporting year vs 2018, %
–19.48
–22.30
–3.25
Change in GHG emissions in the
reporting year vs 2018, output
growth factor, kt
1,232.77
246.34
3,367.95
Reduction in GHG emissions vs
2018 excluding the output growth
factor, kt
–1,141.06
–261.03
–519.95
In 2024, per unit GHG emissions
(Scope 1) declined by 29.3 kg/t or 19.5%
compared to 2018, whereas gross GHG
emissions (Scope 1) increased by 2% vs
2018 due to higher production volumes.
With adjustments made for the
output growth factor, gross emissions
decreased by 1,141.1 kt compared
to 2018. Improved production
efficiency (primarily reduced per
unit consumption of natural gas in
production processes) and changes in
the mix of semi-finished products used
in fertilizer production had the most
significant impact on the reduction of
emissions, as part of direct emissions
related to manufacturing of semi-
finished products decreased due to
replacing some of the Company’s own
products (for example, ammonia) with
third-party feedstock.
Per unit GHG emissions (Scope 2)
declined by 22.3% compared to the
baseline year of 2018, while gross GHG
emissions (Scope 2) (excluding the
output growth factor) decreased by
261.0 kt vs 2018. The reduction was
achieved thanks to procurement of
green electricity, as well as energy
efficiency initiatives.
Gross GHG emissions (Scope 3)
increased by 22.5% relative to the
baseline year, with per unit emissions
down by 3.3%. The key factor affecting
the growth in Scope 3 emissions was
the increased production volume,
which led to more purchases of
feedstock and increased emissions
from the application of sold products.
Excluding the output growth factor,
Scope 3 GHG emissions declined
by 519,9 kt vs the baseline year due
Calculation of other indirect GHG emissions
GRI 305-3
Category
GHG emissions, t of СО2-eq.
Share in total other indirect emissions, %
2022
2023
2024
2022
2023
2024
Purchased goods and services1
4,231,751
4,233,076
4,750,908
28.078
27.918
30.686
Fuel- and energy-related activities
not included in Scope 1 or Scope 2
350,275
427,877
476,046
2.324
2.822
3.075
Processing of sold products
720,223
642,002
631,219
4.779
4.234
4.077
Use of sold products
9,768,958
9,859,766
9,624,096
64.819
65.026
62.162
Total
15,071,207
15,162,721
15,482,269
100.000
100.00
100.00
Scope 3 greenhouse gas emissions
were calculated for four categories
after an expert review identified them
to be the most significant emission
sources for the Company.
Scope 3 GHG emissions, СО2-eq.
GRI 305-3, 305-4, MED 20
Category
2022
2023
2024
Total gross emissions of production assets, kt
15,071,207
15,162,721
15,482,269
Total GHG emissions of production assets, kg per tonne of finished and semi-finished
products
408.759
407.830
397.722
GRI 305-5
We have chosen 2018 as the base year
for calculations because it was the
Company’s first GHG inventory year
and we needed to set GHG reduction
targets for all three scopes based on
the available emission data. In 2018,
GHG emissions were as follows:
• direct GHG emissions (Scope 1) –
4,624.6 kt of CO2-eq.;
• indirect GHG emissions (Scope 2) –
924.1 kt of CO2-eq.;
• and other indirect GHG emissions
(Scope 3) – 12,634.41 kt of CO2-eq.
to higher volumes of purchased
feedstock and energy and tolling
arrangements.
In 2024, we modernised our product
carbon footprint data collection
process through substantial
automation within our Cognos
information system. This technical
advancement enables plant-specific
carbon footprint calculations across
the entire PhosAgro Group, supports
more sophisticated factor analysis
of changes, and generates required
reporting data for the EU CBAM, with
our calculation methodology validated
during this reporting year.
Our enhanced data capabilities now
support deeper analytics into factors
driving year-on-year carbon footprint
changes.
1 The data for comparable periods,
including the base year, for the
purchased goods and services
category have been adjusted due
to adjustments to the carbon
footprint data for products that the
supplier previously provided.
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
1 The diagrams illustrate the analysis of factors having the most significant impact on the year-on-year changes in the product carbon footprint. The product carbon
footprint calculation data excludes certain items that are included in the Company's total GHG emissions. For more information on the factors, see page 372.
2 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.
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.
factors contributing to this increase
in 2024 were higher sales volumes
and associated GHG emissions
from the use of products, as well as
the rise in per unit GHG emissions
from purchased goods, changes in
the consumption mix and rates of
purchased feedstock, and the sale of
products manufactured under tolling
arrangements.
List and description of existing metrics introduced for the monitoring of performance under
the Climate Strategy
Metric
2022
2023
2024
Gross global emissions (Scopes 1 and 2) per currency unit of total revenue (GRI 305-4)2,
t of CO2-eq. / USD mln
693.500
1,072.400
1,025.714
Gross global emissions (Scope 1 and 2) per FTE (GRI 305-4)3, t of CO₂-eq. / FTE
288.800
256.900
238.206
Electricity purchased per unit of finished and semi-finished products, ‘000 kWh / t
0.062
0.065
0.067
Share of feedstock suppliers providing necessary input data on GHG emissions
(Scope 3), %
7.5
9.5
13
Electricity generated by the Company’s own heat and power plants, mln kWh
Production site
2022
2023
2024
Change y-o-y, %
Cherepovets site
787.93
807.70
808.56
0.1
Balakovo branch
340.83
384.53
378.22
-1.7
Volkhov branch
184.89
251.86
271.00
7.6
Total
1,313.65
1,444.09
1,457.78
1.0
In 2024, the share of self-generated
electricity covering the Company’s
production facilities reached 37.4%,
down slightly compared to 2023.
However, with the re-commissioning
of a gas turbine power plant at
the Cherepovets production site
following repairs, the self-sufficiency
ratio is projected to exceed 40%
in 2025.
Going forward, the Company will
continue developing in-house
power generation. Construction
Change in Scope 2 emissions
in product carbon footprint,
kt of CO2-eq.1
Change in Scope 3 emissions
in product carbon footprint,
kt of CO2-eq.1
2023
Volumes
Precursors
Energy
Gas
consumption
rates
GHG in feedstock
New products
Other factors
2024
Growth driven by higher
production volume
Reduction
Growth driven by factors other
than higher production volume
806
46
3
45
5
898
2023
Volumes
Precursors
Energy
Gas
consumption
rates
GHG in feedstock
New products
Other factors
2024
Growth driven by higher
production volume
Reduction
Growth driven by factors other
than higher production volume
14,701
325
98
2
156
13
126
15,406
In Scope 2, gross emissions grew by
92 kt of CO₂-eq. (11.4%). Along with
higher sales, the most considerable
impact on Scope 2 GHG emissions
came from increased purchases of
energy (electricity) from third parties.
In 2024, Scope 3 gross GHG emissions
in the product carbon footprint grew
by 705 kt of CO₂-eq. vs 2023. The main
2 ENERGY EFFICIENCY
OUR TARGETS
Reduction of Scope 2 GHG
emissions
to 794.7
kt of СО2-eq.
by 2028 as a result of
implementing the Energy
Efficiency Programme
and installation works have
commenced in Balakovo for two gas-
piston power plants (2 MW each) and
an 18 MW exhaust gas turbine.
Change in Scope 1 emissions
in product carbon footprint,
kt of CO2-eq.1
4,729
Growth driven by higher
production volume
Reduction
91
57
31
32
7
4,694
2023
Volumes
Precursors
Energy
Gas
consumption
rates
GHG in feedstock
New products
Other factors
2024
2024 HIGHLIGHTS
In 2024, the total amount of electricity
generated internally by heat and
power plants in Cherepovets,
Balakovo, and Volkhov went up
1.0%
y-o-y.
300 mln kWh
of carbon-free electricity was
purchased in 2024.
In 2024, PhosAgro established a
new initiative to advance its Energy
Management System (EnMS) in
alignment with the ISO 50001
standard.
Consumption of all types of
energy per tonne of finished and
semi-finished products came
in at
2.26 GJ/t
down 3.42% y-o-y.
The analysis shows that, despite higher
sales volumes, Scope 1 gross emissions
in 2024 decreased by 34 kt of CO₂-eq.
(0.7%) y-o-y primarily due to the partial
replacement of internally produced
feedstock and energy with resources
purchased from third parties.
Production efficiency improvements
also had a positive impact, as they
helped reduce gas consumption rates
and the associated GHG emissions.
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
Strategy and management
approach
GRI 3-3, 302-4
In 2024, the Company continued
to follow the Climate Strategy and
the Energy Efficiency and Energy
Saving Policy approved by the
Board of Directors. We reviewed and
updated the list of initiatives set out
in the Energy Efficiency Programme,
which is tightly integrated into the
Company’s Strategy to 2025.
The Energy Efficiency and Energy
Saving Policy sets out the following
key goals:
• continuously improving energy
efficiency;
• using energy resources in a
sustainable and efficient manner;
• streamlining the energy
management process for all types of
operating activities.
Project
Description and results
Expenditures,
RUB mln
Completion
Cherepovets
Installation of metering units for utility and drinking water
1.95
4Q 2024
Volkhov
Upgrade of the facility’s street lighting system to LED. Ca.
65,000 kWh of annual reduction in electricity consumption
1.0
4Q 2024
Balakovo
Upgrade of the facility’s street lighting system to LED. Ca.
80,000 kWh of annual reduction in electricity consumption
1.95
4Q 2024
Initiatives planned for 2025
Project
Description and results
Expenditures,
RUB mln
Cherepovets site
Technical upgrades to the regulation system and automated process control system of
turbine generator No. 6. Reducing natural gas consumption by 1,600 m³ Annual savings of
ca. RUB 48 mln
83
Kirovsk branch
Developing a methodology and piloting the transition to fuel oil pressure of 12 kgf/cm2 for the
drum drier furnace. Saving diesel fuel by increasing combustion completeness, target: 1%
24
Kirovsk branch
Upgrades to the heat supply infrastructure of the Titan settlement to eliminate the
consumption of 6.175 ktpa of furnace fuel oil
177
Balakovo branch
Enhancement of in-house power generation from the sulphuric acid production exhaust
steam. 200 mln kWh annual replacement of purchased electricity
2,820
Volkhov branch
Complementing the industrial zero-discharge solution at the Volkhov branch of Apatit with
a similar zero-discharge domestic waste water system. Reduced reliance on river water by
utilising the chemical water treatment of domestic waste water for the heat and power
plant
287
Metrics and highlights
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.
In 2024, self-generated electricity
coverage for the Company’s
production assets stood at 37.4%,
down from 2023 levels. In absolute
terms, in-house electricity generation
decreased by 102.3 mln kWh y-o-y
due to the unavailability of critical
generating equipment from
foreign manufacturers impacted by
international sanctions against Russia.
Total electricity consumption grew
by 106.2 mln kWh (2.6%) y-o-y, which
is attributable to the upgrade of the
processing facilities.
In 2024, Apatit used 300 mln kWh
of carbon-free electricity at its
production sites. This means that
mineral fertilizers supplied by the
Volkhov and Balakovo production sites
in 2024 were manufactured using
exclusively green power purchased
from the hydroelectric power plants
of TGC-1.
Key initiatives in 2024
STAKEHOLDER
ENGAGEMENT
THE COMPANY PAYS
PARTICULAR ATTENTION
TO MANAGING ENERGY
EFFICIENCY RISKS.
The Company conducts an
annual analysis of the low-carbon
electricity market, benchmarking its
operations against leading industry
players and broader industrial
benchmarks. We prioritise aligning
our electricity consumption with
evolving requirements for electricity
generation and the development of
carbon-free (green) energy attribute
certificate market. Through active
participation in the energy industry
events, the Company shares
expertise with market stakeholders
and gathers critical insights on
energy efficiency trends and
innovations in the energy transition.
In 2024, the NP Market Council
Association1 launched a mechanism
and platform for transparent
tracking of green electricity
generation as well as certificate
issuance, sales, and redemption.
This mechanism ensures the
traceability of the electricity origin,
certification of green energy
producers, and mitigation of risks
linked to the sale of green attribute
certificates to sustainability-focused
consumers seeking to reduce their
carbon footprint through verified
purchases.
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;
• introduction of technologies
aimed at loss reduction and
energy savings (e.g. LED lighting,
frequency converters, less heat
energy losses).
In addition, the Company actively
studies and tests promising
solutions, including by increasing
the share of renewable energy
sources both as part of pilot projects
at PhosAgro’s own facilities and
through green electricity purchases.
In 2024, we implemented
comprehensive energy efficiency
projects at all of our sites.
A sufficient and reliable
energy supply is a material
aspect and major concern for
us. We thoroughly explore all
opportunities to transition to
renewable energy: among other
things, in 2024, we continued to
purchase electricity generated
by hydroelectric power plants.
Risk of Scope 2 GHG emissions
being included in carbon
regulation in the EU and other
jurisdictions. The Company’s
energy efficiency directly
affects Scope 2 GHG emissions,
which poses a potential risk,
for example after full-scale
implementation of carbon
border adjustment mechanisms.
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.
1 A self-regulatory organisation for the wholesale energy
market participants.
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
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 The Company excludes natural gas used as feedstock for ammonia production from the calculation of per unit energy consumption.
3 To convert energy consumption values into joules, the coefficients on the Berkeley Institute (USA) https://w.astro.berkeley.edu/~wright/fuel_energy.html.
Energy consumption, GJ3
GRI 302-1, 302-3, MED 23
Item
2022
2023
2024
Internal use of electricity
8,291,723
8,626,491
9,377,112
Internal use of heat energy
38,050,823
39,977,375
41,577,704
Item
UoM
Total for production assets
2022
2023
2024
Electricity
Purchased electricity, including
mln kWh
2,303.26
2,396.25
2,604.75
Purchased from renewable sources
mln kWh
300.00
300.00
300.00
Electricity purchased per unit of finished and semi-finished products
‘000 kWh / t
0.062
0.064
0.067
Heat energy
Purchased (in hot water)
'000 Gcal
352.07
423.36
415.75
Supplied (in hot water)
'000 Gcal
187.49
104.80
84.20
Exhaust steam
'000 Gcal
8,923.70
9,229.87
9,599.12
Per unit consumption of heat energy
'000 Gcal/t
0.246
0.257
0.255
Natural gas1
As feedstock for ammonia production
mln m3
1,968.06
1,969.34
1,971.45
As fuel, etc.
mln m3
771.72
745.51
726.59
Total
mln m3
2,739.781
2,715.05
2,698.05
Consumption per unit of finished and semi-finished products2
'000 m3 / t
0.021
0.020
0.019
LNG
Consumption
t
2,380.30
2,782.06
2,667.79
Fuel oil
Consumption
t
152,895.50
146,764.10
145,449.70
Heating oil
Consumption
t
766.40
789.80
802.60
Diesel fuel
Consumption
t
58,276.73
57,109.12
45,344.42
PhosAgro Group’s energy consumption
GRI 302-1, 302-3, SASB RT-CH-130a.1 / EM-MM-130a.1, MED 22
Item
2022
2023
2024
Internal consumption of natural gas (excluding gas consumed as feedstock during
production processes)
30,097,257
29,074,904
28,337,190
Internal consumption of LNG
129,488
151,344
145,128
Internal consumption of fuel oil
6,742,692
6,472,297
6,414,332
Internal consumption of heating oil
35,407
36,489
37,080
Internal consumption of diesel fuel
2,657,419
2,604,176
2,067,705
Total internal consumption
86,004,809
86,943,075
87,956,251
Total energy consumption per unit of finished and semi-finished products, GJ/t4
2.33
2.34
2.26
4 The Group's specific disclosure is calculated
as the ratio of class 1–4 waste recycled and
decontaminated to the total volume of class
1–4 waste.
3 WASTE
TARGET
2024 HIGHLIGHTS
By 2025, increase the share of
recycled and decontaminated
hazard class 1–4 waste
to 40%
40.3%
of hazard class 1–4 waste
recycled and decontaminated
Strategy and management
approach
GRI 3-3, 306-1
!
PhosAgro’s Development
Strategy to 2025 stipulates
an increase in the share of
recycled hazard class 1–4
waste to 40.00%.
Having developed a system for
accumulating and analysing data
on production 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.
Metrics and highlights
SASB RT-CH-150a.1
Share of recycled and
decontaminated hazard
class 1–4 waste5, %
2023
2024
Goal 2025
40.00
40.32
40.20
2022
38.80
+0.13% y-o-y
204
205
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
2 Hazardous means hazard class 1–4 waste; non-hazardous means hazard class 5 waste.
Waste generation by hazard class, t
GRI 306-3, MED 17
Waste hazard class
2022
2023
2024
I
4.22
3.82
3.12
II
0.39
3.23
2.11
III
1,436.71
1,278.12
1,848.45
IV
195,057.45
253,064.94
247,706.29
V
120,229,531.00
94,372,377.65
99,274,182.20
Total
120,426,029.77
94,626,727.75
99,523,742.16
Waste by type and disposal method2, t
GRI 306-4, 306-5, MED 18
Disposal method
2022
2023
2024
PhosAgro Group’s waste reused internally
27,753,191.6
26,418,490.4
20,722,469.5
• Hazardous waste
74,456.8
99,800.9
98,311.9
• Non-hazardous waste
27,678,734.8
26,318,689.5
20,624,157.6
Total waste landfilled
93,400,262.0
65,294,928.0
80,586,785.7
• Hazardous waste
120,688.6
153,525.5
148,801.6
• Non-hazardous waste
93,279,573.4
65,141,402.5
80,437,984.1
Including landfilled at the Company’s waste disposal facilities
93,390,463.8
65,285,342.7
80,579,179.0
• Hazardous waste
110,976.1
143,988.9
145,011.2
• Non-hazardous waste
93,279,487.7
65,141,353.8
80,434,167.8
Third-party recycled
63,010.9
83,219.2
24,409.6
• Hazardous waste
1,449.9
1,808.1
1,785.5
• Non-hazardous waste
61,561.0
81,411.1
22,624.1
Third-party decontaminated
299.8
612.2
539.1
• Hazardous waste
263.1
563.2
536.7
• Non-hazardous waste
36.7
49.0
2.4
Third-party processed
2,880.6
3,027.4
4,502.9
• Hazardous waste
45.1
314.2
278.7
• Non-hazardous waste
2,835.5
2,713.2
4,224.2
1 Ameliorant is a substance of industrial or fossil origin designed to improve physical and chemical properties and enhance the fertility of acidic, sodic, and
other soils.
A key focus is the use of
phosphogypsum as a soil ameliorant1
in diverse agricultural landscapes
across varying soil types and climatic
zones. Under the guidance of
Pryanishnikov All-Russian Research
Institute of Agricultural Chemistry,
research was initiated in 2024 on
applying Apagips (neutralised
phosphogypsum compliant with
GOST 58820-2020) to combat soil
desertification. Preliminary results
have been promising.
The management system covers:
PhosAgro’s waste management
is monitored on a regular basis
and discussed by the Strategy and
Sustainable Development Committee
before being communicated to the
Board of Directors.
Key initiatives in 2024
GRI 306-2
PhosAgro is implementing consistent
efforts to increase the share of
recycled and decontaminated hazard
class 1–4 waste. At each production
site, regular initiatives are conducted
to identify potential types of materials
that can be diverted for recycling.
Promoting phosphogypsum
utilisation
In 2024, PhosAgro expanded the use
of phosphogypsum as a construction
material at Apatit’s Cherepovets and
An inventory of resources
that are used to manufacture
products and become waste
afterwards;
Waste characteristics;
Continuous monitoring of
known and potential negative
characteristics of certain materials
after they become waste; measures
to remove environmental and
health hazards;
Identification of activities
and processes that generate
significant amounts of waste.
Properties that limit or prevent the
recycling (recovery) of the material
or product or limit its useful life;
Data on the amount of waste
generated from our own operations,
including future waste in the form
of products or their part provided
to customers;
1
2
3
5
6
4
Balakovo sites. This helped reduce the
volume of phosphogypsum sent to
waste disposal facilities.
The Company sold a total of
95 kt
of phosphogypsum in 2024
A notable example of Apagips
application is the chemical
amelioration of acidic soils across
1,000 ha at Vozrozhdenie LLC in
the Ulyanovsk region. Apagips
demonstrated excellent efficacy as a
soil ameliorant in pilot trials.
All contractors working at the
Company’s sites undergo training and
are informed of waste management
requirements, which are explicitly
outlined in work/service agreements.
Compliance with safe and proper
waste handling protocols is strictly
enforced.
206
207
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Reduce pollutant emissions by
2025 to
0.8 kg/t
of finished and semi-finished
products
Per unit emissions in 2024 came in at
0.712
–10.9% y-o-y
Waste generation (hazard class 1–4), kg per tonne of finished and semi-finished products
Production site
2022
2023
2024
Kirovsk branch
0.8
0.7
0.3
Balakovo branch
21.1
28.7
27.9
Volkhov branch
0.5
0.7
0.3
Cherepovets site (Apatit)
4.0
4.1
3.7
Total
5.3
6.8
6.4
Strategy and management
approach
GRI 3-3
PhosAgro Group has developed
and now maintains an emissions
management process that includes
assessment of planned activities,
discussion of relevant matters with a
wide range of stakeholders, as well as
monitoring and disclosing pollutant
emissions. To effectively reduce its
environmental impact, PhosAgro is
running a programme to re-equip
production facilities and cut pollutant
emissions.
PhosAgro takes part in the
government’s Clean Air initiative,
which aims to drastically reduce air
pollution in major industrial cities
across Russia. As part of the initiative,
the Company implemented a number
of measures, which helped reduce
gross pollutant emissions in 2024 by
24% vs the 2017 level (project launch).
Air quality in sanitary protection areas
near the Company’s production sites
complies with applicable hygienic
requirements.
Key initiatives in 2024
Apatit’s Cherepovets site completed
the fifth and final initiative as part of
the Clean Air national project.
Modernisation of the SK-600/1 and
SK-600/2 technological systems, along
with the adoption of domestically
developed energy efficient and
environmentally safe sulphuric acid
production technology, reduced
atmospheric pollutant emissions and
enhanced energy efficiency.
At the Volkhov branch, the key
activities of 2021–2024 to mitigate
the negative impact on the air
quality were implemented as part
of an investment project to develop
the Volkhov site: technical solutions
to reduce per unit emissions and
pollutant concentrations at the
sanitary protection zone boundaries
near residential areas were initially
integrated into the design of new
production lines and existing facility
upgrades. This approach achieved a
74% reduction in per unit pollutant
emissions compared to 2020 levels.
Key initiatives to reduce negative
air quality impacts at the Balakovo
branch included:
• reconstruction of the SK-20
sulphuric acid production unit,
including installation of a five-layer
contact apparatus and adoption
of a domestic energy efficient and
environmentally safe sulphuric acid
production technology;
• catalyst replacement at the SK-17
and SK-20 sulphuric acid production
units;
• technical upgrades to absorption
systems in the phosphate fertilizers
workshop.
These measures reduced per unit
atmospheric emissions at the
Balakovo site by 25.7% in 2024
compared to 2023.
At the Kirovsk branch, the 2024
activities to minimise dust emissions
from tailing dumps of beneficiation
facilities included:
• chemical stabilisation using binding
agents (PSKh-18, bitumen emulsion)
for dusty surfaces in the beach area
of tailing dumps:
– at ANBP-22 across 325.7 ha,
– at ANBP-3 across 336 ha;
• chemical stabilisation for dusty
surfaces on service roads of tailing
dumps:
– at ANBP-2 across 121 ha,
– at ANBP-3 across 67 ha;
Disposal of beneficiation waste and overburden at Kirovsk branch
SASB EM-MM-150a.1, EM-MM-150a.2
Item
Reused
Landfilled at waste disposal facilities
2022
2023
2024
2022
2023
2024
Apatite-nepheline ore processing
waste (tailings)
13,065,273.3
12,984,017.0
13,487,447.6
12,865,355.7
12,812,723.0
13,290,756.4
Rocks and overburden mix
11,276,148.0
9,916,198.0
4,547,241.0
72,281,414.0
43,680,591.0
60,385,005.0
Waste generation, tonne per tonne of finished and semi-finished products
Production site
2022
2023
2024
Kirovsk branch
9.100
7.000
7.211
Balakovo branch
0.900
0.900
0.697
Volkhov branch
0.001
0.001
0.001
Cherepovets site (Apatit)
0.400
0.400
0.298
Total
3.300
2.500
2.557
4 AIR
OUR TARGETS
2024 HIGHLIGHTS
!
Since 2019, PhosAgro has been
implementing a programme
to upgrade its sulphuric
acid production and adopt
a domestic energy efficient
and environmentally safe
sulphuric acid production
technology. This technology
utilises the Double Contact
Double Absorption (DCDA)
process for sulphuric acid
production, developed by the
Samoilov Scientific Research
Institute for Fertilizers and
Insectofungicides (NIUIF),
part of PhosAgro Group.
!
The programme covers
sulphuric acid production units
at the Company’s Cherepovets
site and its Balakovo and
Volkhov branches.
1 The Group’s specific disclosure is calculated as the ratio of pollutant emissions to the total output of products and semi-finished products.
2 Apatite-nepheline beneficiation plant.
Metrics and highlights
Pollutant emissions1, kg per
tonne of finished and semi-
finished products
2023
2024
Goal 2025
0.800
0.712
0.799
2022
0.793
208
209
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
NOX, SOX, and other significant air emissions1, t
GRI 305-7, SASB RT-CH-120a.1 / EM-MM-120a.1, MED 19
Pollutants
2022
2023
2024
Total
Kirovsk branch
10,141.30
10,056.80
10,022.10
Balakovo branch
7,323.80
8,217.00
6,522.61
Volkhov branch
1,575.00
1,203.40
1,365.06
Cherepovets site (Apatit)
10,193.50
10,235.00
9,788.55
Total
29,234.60
29,712.20
27,698.32
Solids
Kirovsk branch
5,011.10
4,969.60
3,521.84
Balakovo branch
497.10
745.50
796.20
Volkhov branch
234.90
214.60
287.11
Apatit (Vologda region)
771.70
768.00
1,250.47
Total
6,514.80
6,697.70
5,855.62
Pollutants
2022
2023
2024
Sulphur dioxide
Kirovsk branch
3,373.40
3,273.70
3,101.61
Balakovo branch
4,227.20
4,723.70
3,066.45
Volkhov branch
320.50
351.50
493.07
Cherepovets site (Apatit)
3,770.90
3,736.60
3,776.57
Total
11,692.00
12,085.50
10,437.70
Carbon monoxide
Kirovsk branch
798.10
908.20
1,364.66
Balakovo branch
949.40
927.60
821.47
Volkhov branch
106.30
153.40
175.87
Cherepovets site (Apatit)
1,324.20
1,332.60
893.31
Total
3,178.00
3,321.80
3,255.31
Nitrogen oxides (NOx as NO2)
Kirovsk branch
931.20
859.50
1,831.51
Balakovo branch
765.10
759.40
915.33
Volkhov branch
330.70
224.40
223.59
Cherepovets site (Apatit)
2,491.90
2,467.60
1,971.66
Total
4,518.90
4,310.90
4,942.08
Hydrocarbons (w/o VOCs)
Kirovsk branch
8.00
7.60
0.71
Balakovo branch
2.60
2.60
0.94
Volkhov branch
0.00
0.00
0.02
Cherepovets site (Apatit)
38.10
4.00
4.89
Total
48.70
14.20
6.56
Volatile organic compounds
Kirovsk branch
19.00
38.10
200.68
Balakovo branch
340.00
339.50
218.20
Volkhov branch
6.20
5.80
10.59
Cherepovets site (Apatit)
2.80
12.90
12.81
Total
368.00
396.30
442.28
Other gaseous and liquid pollutants
Kirovsk branch
0.50
0.10
1.10
Balakovo branch
542.40
718.70
704.02
Volkhov branch
576.40
253.70
174.82
Cherepovets site (Apatit)
1,793.90
1,913.30
1,878.83
Total
2,913.20
2,885.80
2,758.77
Effectiveness of dust suppression at ANBP-2 and ANBP-3 tailing dumps
Facility
Actual solid particulate (SP)
emissions, t
Prevented SP emissions to
atmosphere, t
Prevented SP emissions, %
Tailing dump at ANBP-2
28.3
15.8
36
Tailing dump at ANBP-3
14.7
9.3
39
TOTAL
43.1
25.1
37
• biological stabilisation of the
tailing dump’s dam slopes and
decommissioning of the tailing
dump’s beach area (via sowing of
regionally specific plant species)
across 7 ha;
• extra nutrition of crops planted in
the past years on the dam slopes
and in the beach area of tailing
dumps across 36 ha;
• piloting four new anti-dusting agent
prototypes.
To stabilise dust-emitting surfaces
at the tailing dumps in the Kirovsk
branch, the Company has been
conducting multi-year research in
collaboration with scientific institutions
to identify optimal surface stabilisation
and dust control methods. Studies
confirmed that specially selected plant
communities, tailored to the substrate
and regional climate, effectively
stabilise dam slopes and inactive areas
of the tailing dumps, preventing wind-
driven particle dispersal. This approach
has been successfully applied across
the Company’s operations.
Beach areas of the tailing dump,
where fresh material is continuously
deposited, as well as access roads, are
treated with custom binding agents.
Research into more efficient solutions
remains ongoing.
In 2024, the implementation of
biological and chemical measures
successfully prevented the emission
of over 25 t of particulate matter into
the atmosphere.
These initiatives reduced particulate
emissions from facility surfaces
by 37%.
1 Data are based on information regarding atmospheric air protection submitted to the local bodies of Rosprirodnadzor, in line with Order of the Federal State
Statistics Service (Rosstat) No. 661 On the Approval of Statistical Tools for the Organisation of Federal Statistical Observation of Atmospheric Air Protection by the
Federal Service for Supervision of Natural Resources dated 8 November 2018.
210
211
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
RT-CH-140a.2 / EM-MM-140a.2
Strategy and management
approach
GRI 3-3, 303-1
Water is an essential resource for the
Company. There is no shortage of
water sources in the regions where
our facilities are based. According to
the Water Risk Atlas and Water Risk
Filter, all PhosAgro production sites are
located in areas with low or moderate
fresh water scarcity. However, access
to clean water is a major issue facing
the world.
In 2024, the Company reviewed its
per unit targets for water withdrawal
and waste water discharge. The new
2025 targets account for water flows
excluding mining and pit waters,
which are natural in origin and flow
in and out without involvement in
production processes. These new
targets were discussed at a meeting
of the Board of Directors' Strategy and
Sustainable Development Committee
and subsequently approved by the
Board of Directors:
• reduction in water withdrawal,
excluding mining and pit waters, to
2.6 m3/t of products;
• reduction in waste water discharge
into surface water bodies, excluding
mining and pit waters, to 1.7 m3/t of
products.
Risks and opportunities
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
one’s negative impact on water
bodies.
PhosAgro has implemented closed-
loop water recycling systems at its
sites in Volkhov and Balakovo to reuse
water in production processes.
!
At the Cherepovets site, we
continued to implement the
second stage of the water
use optimisation programme
as part of our production
upgrade initiative for
2020–2025.
Phosphate facility
Design and engineering documents
were finalised for a waste water
treatment unit with a source water
capacity of at least 400 m3/h.
Engineering documents were finalised
for the technical upgrade of an acidic
waste water treatment station with
production capacity increase.
!
Measures to reduce water
consumption at the Kirovsk
branch.
The Saami pit water is now utilised for
process needs at the Kirovsky mine
workings. In 2024, the volume of water
substitution reached record high levels
due to the integration of an additional
pump into the system.
The reconstruction of the
Rasvumchorrsky mine compressor
station was completed, with the
cooling tower removed from the
circulation cycle.
5 WATER
OUR TARGETS
2024 HIGHLIGHTS
Reduction in water withdrawal,
excluding mining and pit waters,
to 2.6 m3/t1
of products by 2025.
Going forward, we plan to improve
waste water management by focusing
on maximum reuse of water through
closed-loop water recycling systems
and better treatment of effluents
discharged into water bodies in
addition to ongoing monitoring
of water bodies in the regions
of operation.
The regulatory risks include
tightened waste water quality
requirements, as well as restrictions
on the amount of water consumed
and discharged into both water
bodies and centralised waste water
systems. There were no incidents
of non-compliance associated with
water quality permits, standards, and
regulations in 2024.
To mitigate these risks, in 2020 we
adopted the Water Strategy that
sought to reduce water consumption
and discharge and improve waste
water quality.
The strategy is implemented at all
PhosAgro sites, and we regularly
analyse these measures to determine
whether they are sufficient and
effective enough to achieve
our targets.
Discharge of waste water
into surface water bodies,
m3 per tonne of products
and semi-finished products2
Water withdrawal,
m3 per tonne of products
and semi-finished products1
2023
2024
Goal 2025
1.70
1.83
1.90
2022
2.24
2023
2024
Goal 2025
2.60
3.25
3.22
2022
3.39
1 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.
2 The Group’s specific disclosure is 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.
To identify the impact 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.
Key initiatives in 2024
Metrics and highlights
Nitrogen facility
Basic design development for the
industrial waste water treatment
system is ongoing.
Engineering surveys were conducted
for the waste water reception,
accumulation, transportation, and
treatment at the industrial waste
water neutralisation and treatment
unit. Engineering documents for the
project are under development, with
priority measures currently being
implemented.
The Company's water
withdrawal, excluding
mining and pit waters,
in 2024 amounted to
3.25 m3/t1
of products.
+1% y-o-y
Waste water discharge into
surface water bodies, excluding
mining and pit waters, in 2024
stood at
1.83 m3/t2
of products.
–3.7% y-o-y
Reduction in waste water
discharge into surface water
bodies, excluding mining and
pit waters
to 1.7 m3/t2
of products by 2025.
212
213
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Measurement of total and per unit water withdrawal, including and excluding mining and pit waters
MED 16
Item
2022
2023
2024
Total water withdrawal, including mining and pit waters, ‘000 m3
236,873
224,903
232,117
Per unit water withdrawal, including mining and pit waters¹, m³ per tonne
6.42
6.05
5.96
Total water withdrawal, excluding mining and pit waters, ‘000 m3
125,122
119,878
126,708
Per unit water withdrawal from surface sources, excluding mining and pit waters2,
m3 per tonne
3.39
3.22
3.25
Total water discharge by source, '000 m3
GRI 303–4, MED 15
Item
Total
2022
2023
2024
Water discharge into surface water bodies
Total water discharge into surface water bodies, including:
194,447
175,618
176,525
• mining and pit waters
111,751
105,024
105,409
• drainage water
2,401
2,742
2,337
• waste water from other waste water discharge systems
13,782
6,872
8,649
Item
Total
2022
2023
2024
Supplies to third parties
Total water supplies to third parties:
4,406
4,019
3,476
• waste water to the public water discharge system (after use)
3,219
3,109
2,748
• waste water to the public water discharge system (unused)
523
353
295
• water supplies to third parties from surface sources
632
527
399
• water supplies to third parties from municipal sources
32
30
34
Total
198,853
179,637
180,001
Measurement of total and per unit waste water discharge, including and excluding mining and pit
waters
Item
2022
2023
2024
Total water discharge into surface water bodies, including mining and pit waters,
‘000 m3
194,447
175,618
176,525
Per unit water discharge into surface water bodies, including mining and pit waters3,
m³ per tonne
5.27
4.72
4.53
Total water discharge into surface water bodies, excluding mining and pit waters,
‘000 m3
82,696
70,594
71,116
Per unit water discharge into surface water bodies, excluding mining and pit waters4,
m3 per tonne
2.24
1.90
1.83
Treated effluents (reused in the production cycle)
Asset
2022
2023
2024
Total, mln m3
241.7
227.9
235.0
Share of reused water, %
86.0
83.0
81.6
The relative decrease in the share
of reused water can be attributed
to multiple factors, including the
implementation of energy and resource
efficiency enhancement programmes
and the transition from calculation-based
monitoring methods to instrumentation
metering. Additionally, 2024 saw arid
conditions and lower precipitation levels,
resulting in deteriorated water quality
and an increased reliance on fresh water
in production processes.
Water consumption, '000 m3
GRI 303-5, MED 13, 14
Item
Total
2022
2023
2024
Total water withdrawal (all sources)
236,873
224,903
232,117
Total water discharge (all sources)
198,853
179,637
180,001
Water consumption
38,020
45,266
52,116
The rise in water consumption is
driven by higher production volumes,
including increased ore mining and
processing, and higher output of
concentrates and mineral fertilizers.
1 The Group specific disclosure was calculated as
the ratio of 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 water withdrawn, excluding mining
and pit waters, to the total output of products
and semi-finished products.
3 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 volume of products and semi-
finished goods manufactured.
Total water withdrawal by source, '000 m3
GRI 303-3, SASB RT-CH-140a.1 / EM-MM-140a.1
Item
2022
2023
2024
Surface water
Total water withdrawal from surface sources, including:
182,276
176,760
180,997
• process water
62,163
63,029
68,018
• drinking water (internal use)
1,187
1,093
1,159
• drinking water (for supplies to third parties)
632
527
399
• mining and pit waters
111,751
105,024
105,409
• drainage water
2,401
2,742
2,337
• rainwater
4,142
4,345
3,675
Ground water
Water withdrawal from ground-water sources
3,357
3,507
3,495
Total water received from third-party suppliers, including:
51,240
44,636
47,626
• process water received from suppliers
28,644
30,359
31,478
• water from municipal supply (internal use)
8,400
7,022
7,170
• water from municipal supply (for supplies to third parties)
32
30
34
• waste water from other waste water discharge systems
14,164
7,225
8,944
Total
236,873
224,903
232,118
4 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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Water discharge, mln m3
GRI 303-4, MED 15
Item
2022
2023
2024
Waste water discharge into surface water bodies
Kirovsk branch
180.0
162.4
162.6
Balakovo branch
–
–
–
Volkhov branch
–
–
–
Cherepovets site (Apatit)
14.4
13.2
13.9
Total
194.4
175.6
176.5
Discharged without treatment (% of total water discharge)
Kirovsk branch
0.0
0.0
0.0
Balakovo branch
0.0
0.0
0.0
Volkhov branch
0.0
0.0
0.0
Cherepovets site (Apatit)
0.0
0.0
0.0
Total
0.0
0.0
0.0
Waste water discharge
Item
Receiving water body
Kirovsk branch
Discharge 1
Discharge from the tailing dump at ANBP-3
Zhemchuzhnaya River
Discharge 2
Discharge from the tailing dump at ANBP-2
Belaya River
Discharge 3
Rainwater at ANBP-2
Belaya River
Discharge 4
Mining waters of the combined Kirovsky, Central and
Rasvumchorrsky mines
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
Cherepovets site (Apatit)
Effluents from the phosphate facility
Rybinsk Reservoir
Effluents from the nitrogen facility
Rybinsk Reservoir
PhosAgro’s Environmental Policy
sets forth the Company’s obligations
to preserve biodiversity, natural
landscapes and habitats across its
footprint and prevent its projects from
causing any harm to the same.
The Company’s primary
biodiversity objective is to
conduct current and future
activities in compliance with
legal requirements and voluntary
commitments. In conducting
our operations, we seek to
conserve biodiversity and
minimise potential disruptions
to natural ecosystems across the
Company’s footprint.
Strategy and management
approach
GRI 101-1, 3-3
PhosAgro’s strategy for managing the
conservation of biodiversity, natural
landscapes, and ecosystems in its
regions of operation is anchored
in the provisions of the Company’s
Environmental Policy and is guided
by legal requirements and internal
documents of the environmental
management system.
Key initiatives in 2024
GRI 304-2, 101-2
• The Company developed and
implemented the Biodiversity
Conservation and Monitoring
Guidelines for Apatit to regulate
biodiversity conservation and
monitoring efforts across its
operational regions. The guidelines
define the scope, frequency, and
methodology for biodiversity
monitoring at production facilities.
• Compensatory afforestation was
conducted on a 2.4346 ha site in the
Volkhov Forestry District (Leningrad
region), where 1,461 Norway spruce
saplings were planted.
• The Company released young fish
into water bodies across its regions
of operation.
• The Company planted samplings of
tree and shrub species.
• A comprehensive environmental
survey was performed in the impact
zone of the Vostochny mine (Kirovsk
branch, Murmansk region) as
part of the biodiversity protection
programme development. The
initiative was independently
evaluated and received positive
feedback from experts at the
Forestry Research Institute of the
Karelian Research Centre, the
Russian Academy of Sciences
Comprehensive biodiversity
protection programmes
GRI 304-2, 101-2, 101-4
Comprehensive biodiversity protection
programmes were developed for the
Volkhov branch, three of the Kirovsk
branch’s facilities and the Cherepovets
production site.
The branch-specific monitoring
programmes outline the geographic
scope of monitoring zones, the
nature and extent of the Company’s
operational impacts on ecosystems,
indicator species, and metrics to
assess their biodiversity status and
its changes, as well as indicators
to evaluate the effectiveness of
biodiversity management measures.
6 BIODIVERSITY
OUR TARGETS
2024 HIGHLIGHTS
Over 1.5 million
juvenile fish of various species
and pike larvae were released
into water bodies across
PhosAgro’s geographies in
2019–2024.
In 2024, the Company invested
RUB 17,852,046 to release
204,071
juvenile fish.
In 2024,
1,572 saplings
of diverse tree and shrub
species (including spruce,
lilac, ash, apple, and fir) were
planted across the Company’s
operational regions.
A comprehensive environmental
survey in the impact zone of the
Vostochny mine (Kirovsk branch,
Murmansk region)
!
For a number of years, we
have been working to preserve
biodiversity and replenish
biological resources. Since
2020, the Company has been
developing comprehensive
biodiversity protection
programmes in partnership
with research institutions. The
effort is aimed at assessing
and restoring environmental
conditions across the
Company’s footprint and
establishing its priorities
in protecting biodiversity
based on indicator species
monitoring.
Investment in
biodiversity protection
programmes, RUB mln
2023
2024
24.7
16.7
2022
13.7
Metrics and highlights
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Surveys conducted at the Volkhov
branch, three Kirovsk branch facilities,
and the Cherepovets production
site revealed no significant adverse
changes in biodiversity within the
Company’s operational zones.
Ecosystems in these areas often
exhibited higher species diversity
compared to baseline zones, likely due
to restricted human access preserving
ecosystem integrity.
Key factors influencing biodiversity
include emissions of pollutants and
greenhouse gases, water withdrawal
and waste water discharge, and waste
disposal.
Land disturbance resulting from the
Company's operations occurs due to
mineral extraction, construction of
waste disposal facilities, and other
construction activities. Mineral
extraction is one of the Company’s
core activities. The expansion of
open-pit and underground mining
operations within permitted licence
areas drives production growth
and ensures stable product supply.
Mining activities are conducted
safely and with maximum efficiency.
Reclamation for these sites is best to
be implemented following resource
depletion. The Company’s mining
assets currently have operational
lifespans extending beyond 2030.
Waste disposal is managed within
pre-approved designated areas at
the Company’s facilities, with no
involvement of additional territories.
Increasing the share of waste diverted
for recycling reduces pressure on
these disposal sites and extends their
operational lifespan.
Area of disturbed and reclaimed land, ha
GRI 101-5
Item
2022
2023
2024
Disturbed land
188.39
184.49
306.30
Reclaimed land
0
0
0
In 2024, the increase in disturbed land
area was attributed to the expansion of
the phosphogypsum tailings disposal
facility at the Balakovo branch of Apatit.
A comprehensive environmental
study was conducted in the impact
zone of the Vostochny mine (Kirovsk
branch, Murmansk region) as part of a
biodiversity conservation programme
developed in collaboration with the
Polar-Alpine Botanical Garden-Institute,
a branch of the Kola Science Centre of
the Russian Academy of Sciences.
The study revealed that the terrestrial
ecosystems within the footprint of the
Vostochny mine host over 800 species
of fungi, liverworts, lichens, mosses,
and vascular plants, as well as 65 bird
and 16 mammal species.
The mammal species composition in
the area is generally limited. However,
the Vostochny mine demonstrates
a less pronounced negative impact
compared to the Kirovsky and
Rasvumchorrsky mines, as it directly
borders the forests of the Southern
Khibiny region.
Four rivers and two lakes within the
Vostochny mine’s impact zone were
studied. All water bodies were found
to be suitable for sustaining and
developing relatively high populations
of juvenile fish.
The Biodiversity Conservation
Programme for the Vostochny mine
of Apatit’s Kirovsk branch underwent
comprehensive review by researchers
from the Forestry Research Institute
at the Karelian Research Centre of
the Russian Academy of Sciences and
received a positive assessment.
In 2024, we held research at the
Volkhov branch as part of the
programme for environmental
monitoring of biota (flora and fauna)
within the sanitary protection zone.
The study of the area within the
footprint of the Volkhov branch
revealed that the structure of animal
species across the reviewed biotopes
is typical for the region in question.
A total of 59 bird species were found to
live within the facility’s footprint and in
adjacent areas.
Tree and shrub samplings planted1
GRI 304-3, 101-2
Site
2022
2023
2024
Cherepovets
134
30
43
Kirovsk branch
0
0
68
Balakovo branch
159
0
0
Volkhov branch
1,461
1,461
1,461
Total
1,754
1,491
1,572
Juvenile fish and pike larvae released into water bodies across the Company’s geographies
GRI 304-3, 101-2
Water body
2022
2023
2024
Volgograd Reservoir, Saratov region
60,838
35,838
60,838
Sukhona River, Vologda region
11,743
–
–
Umba River, Murmansk region
–
21,000
Rybinsk Reservoir, Vologda and Yaroslavl regions
70,404
11,142
45,559
Saratov Reservoir, Saratov region
28,151
53,151
45,031
Lake Ladoga, Leningrad region
1,584
1,539
1,390
Sheksna Reservoir, Vologda region
3,000
–
–
Kovdozero Reservoir, Murmansk region
11,502
–
–
Imandra Reservoir
15,520
29,483
Onega River
6,725
770
Total
187,222
123,915
204,071
1 Since 2024, the disclosure under GRI 304-3 includes information on the results of tree and shrub planting activities, as the Company currently assesses the
contribution of these activities to habitat conservation and restoration as significant.
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CONTRIBUTING
to local communities
Target
Target
Actual
Actual
Improving the quality of urban environment and promoting sustainable
development of the cities where we operate: Kirovsk, Cherepovets, Balakovo, and
Volkhov. Improving public spaces and social infrastructure facilities.
Interactive education centres
(museums)
Preserving the history of the nation, industry
or facility for all generations. Museums and
educational outreach activities.
Education project
Supporting scientific and educational institutions to attract
highly educated, motivated and skilled young talent to
innovative Russian facilities, including those of PhosAgro
Group.
RUB 4,272 mln
invested in infrastructure
and development of local communities
RUB 247 mln
spent under the programme
5,500
events
>12,000
people participated in career
guidance events
RUB 707 mln
invested in the school–
college/university–facility
educational model
470+
people hired as part of
career guidance and youth
engagement initiatives
RUB 238.6 mln
spent under the programme
+6.7%
increase in the number
of students over the year
2,300
children improved their health
index
1 OUR FAVOURITE CITIES
3 CONNECTING GENERATIONS
Target
Actual
Supporting nationwide infrastructure projects that benefit
both PhosAgro Group and the broader agricultural sector.
Timiryazev Centre, a training and exhibition venue
Research and Development Centre at the Kola Science
Centre of the Russian Academy of Sciences
6 FEDERAL PROJECTS
2 EDUCATION
Targeted Assistance
Promoting respect for traditions, the older generation, veterans,
and vulnerable population groups. Supporting community
organisations.
GRI 203-1
Target
8.3, 9.1, 11.3, 17.17
Target
4.4, 3.4
Target
4.4, 3.4
Target
Actual
Promoting high-performance and mass sports in the
regions where the Group operates. Supporting sports
federations and amateur clubs.
> RUB 501 mln
allocated for support programmes
5 PROMOTION OF SPORTS
Target
3.4
DROZD (Educated and Healthy Children of Russia)
project
Effective combination of high-quality education and physical
training to facilitate moral and ethical development
and promote health of the younger generation. Supporting a
network of sports and patriotic clubs and creative studios.
RUB 94 mln
spent under
the programme
>70
veteran and disability organisations
and charities received support
Target
Actual
Preserving and promoting orthodox values, ideas of humanity and spirituality, respect for our legacy and motherland. Supporting
the Patriarchate, churches, and parish communities.
RUB 704.3 mln
allocated for support programmes
4 SPIRITUAL REVIVAL
Target
3.4
904 events
held by the Andreyevsky Spiritual
and Educational Centre in Volkhov
The Church of the Acheiropaeic
Image of the Saviour Lord Jesus Christ
reconstructed in Kirovsk
108
new jobs created
in the Murmansk region
50
projects supported under
a grant competition
Target
Actual
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MANAGEMENT APPROACH
!
The Group’s social projects and
initiatives also fully comply
with the applicable laws and
regulations of the Russian
Federation, including:
• Federal Law on Charitable
Activities and Volunteering;;
• Unified Plan to Achieve
the National Development Goals
of the Russian Federation until
2024 and for the Planning Period
until 2030.
STRATEGY
While expanding its business,
the Company aims to contribute
to sustainable development of
the regions where it operates, foster
steady economic growth, and promote
well-being and social stability for
the sake of local communities.
To achieve that, we create new
jobs, make investments in urban
infrastructure, and run a programme
for social investments. Our strategy
is focused on long-term social and
economic development programmes
in the regions, cities, towns and
rural communities in which our key
production units operate. All our
programmes and initiatives involving
social investments are aligned
with the goals and objectives set
in the Group’s Strategy to 2025 (as
approved by the Board of Directors in
March 2019) and comply with Russia’s
national development goals and the
key UN Sustainable Development
Goals.
PUBLIC RECOGNITION
Russian Leaders in Corporate Philanthropy 2024
PhosAgro Group made it to the
A+ Leaders category of Donors
Forum’s Russian Leaders in
Corporate Philanthropy 2024 rating.
The Company joined the ranks of
18 most efficient Russian businesses
in terms of charitable activity.
• At the programme competition
of the Russian Leaders in
Corporate Philanthropy award,
PhosAgro’s Our Favourite
Cities social initiative became
the winner in the category
for the Best Corporate Social
Investment Programme for
Sustainability and Business
Strategy.
• PhosAgro’s School Laboratory –
a Forge for Engineering Talent
project earned the second place
in the category for the Best
Programme (Project) Promoting
the Development of Science
and Education in the Russian
Federation.
Responsible Business
Leadership national award
In 2024, PhosAgro won the
highest prize of the Responsible
Business Leadership national
award for the second time. The
award was established in 2023 by
the Russian Union of Industrialists
and Entrepreneurs upon the
instruction of the President
of the Russian Federation.
The Company scored the highest
among all participants, with three
of its programmes taking top spots
in individual award categories.
The Connecting Generations
programme became the winner
in the category Contribution to
Sustainable Regional Development
and Creating a Favourable Living
Environment in the Company’s
Regions of Operation.
GRI 3-3
PhosAgro Group’s social investment
programmes are based on the
notion of public benefit and aligned
with best Russian and international
sustainability practices. As part
of our social investment strategy,
we strive to build effective and
lasting partnerships with a wide
variety of stakeholders, including
local communities, regional and
local government authorities,
non-governmental organisations,
educational institutions and others.
KEY POLICIES AND REGULATIONS
!
Key focus areas of the Policy for
Managing Community Social
Programmes (2022 version) include:
• unlocking the social and economic
potential in the regions of opera-
tion, enhancing their environmental
resilience;
• improving the living standards of
employees, their families, PhosAgro
veterans and local communities;
• supporting culture;
• strengthening corporate culture
through employee engagement in
socially significant projects;
• offering career guidance for school
and university students;
• promoting advanced corporate
social responsibility standards.
Policy for Managing
Community Social
Programmes of
Apatit
Regulations on
Managing Community
Social Programmes
of Apatit (the
“Regulations”)
Assessment
criteria for Apatit’s
programmes
Charity and
Sponsorship Policy
of PhosAgro
Code of Ethics
of PhosAgro
Government Relations
Policy of PhosAgro
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RISKS AND OPPORTUNITIES
SASB RT-CH-210a.1, EM-MM-210b.1
Our social investment objectives are affected, among other
things, by the following strategic risks:
social risk
3
4
15
HR risk
reputational risk
SOCIAL INVESTMENT SPECIFIC RISKS ARE LISTED BELOW:
!
regulation of social investment
management processes;
!
evolution of public priorities of social
and economic development.
!
performance evaluation of social
investment programmes;
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,
including:
!
strengthening the talent pool in
the Company’s regions of operation
through investments in regional
development;
!
enhancing the Company’s
reputation through the successful
implementation of regional and
federal social projects;
!
boosting interest in the Company’s
products and services through
agricultural education and
awareness-raising initiatives.
For more information, see
the Strategic Risks section
p.
66–75
p.
281
See also the Risk
Management section
Management of social investment programmes
Corporate level
Operations
Reviews reports on the
implementation of social
investment and charitable
programmes during meetings
of the relevant Committees
of the Board of Directors, and
grants final approval for the
programmes.
Board of Directors
of PJSC PhosAgro
Oversees and coordinates
activities related to external
social investments, charity and
sponsorship.
Deputy Chief Executive Officer of
PJSC PhosAgro
•
Review other requests for
charitable support;
•
verify requests and prepare
required documentation;
•
make decisions on approving
support requests within
the budget allocated for
designated purposes by each
of the Company’s business
units.
Commissions for Social Issues and
Charity across
the branches of Apatit
Annually compiles the registry of charitable programmes, conducts
sociological research, collects and analyses other relevant data and
feedback from all production sites, evaluates the efficiency of ongoing
projects and programmes, provides relevant information to the
Company’s management, initiates the development and adoption of
appropriate by-laws, prepares proposals for inclusion in the Company’s
overall budget, compiles reports, etc.
Office for Community Social Projects
Approves the overall budget
for external social projects,
reviews and approves the
budget performance report
and general year-end report.
Management Board
of PJSC PhosAgro
Considers proposals for
supporting external social
investment, charitable and
sponsorship projects and
programmes within the
approved budget. Approves
relevant by-laws of the
Company.
Chief Executive Officer
of PJSC PhosAgro
•
Government Relations
Department
•
Information Policy Department
•
HR and Social Policy Department
•
Commission for Social Issues and
Charity
•
Register charity project
data sheets;
•
ensure compliance with
project participation
conditions;
•
exercise control over the
appropriate use;
•
submit and review draft
amendments to the
project participation and
financing terms;
•
track the project’s budget
performance and budget
adjustments;
•
administrate the
donation agreement;
•
make requests for
relevant reports;
•
review the submitted
financial reports;
•
prepare the annual
report.
Managers of charity and
sponsorship projects at Apatit and
its branches
Monitor and adjust programmes,
track performance and
reporting, submit proposals
on continued project
implementation and inclusion of
projects in the charitable budget
for the following fiscal year.
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225
From time to time, the Company
engages external experts to audit
its social programmes and revises
internal documents as needed.
Each programme is evaluated
using a specific set of performance
indicators, typically encompassing
from 2 to 20 mostly quantitative
metrics. The Company tracks
year-on-year evolution of each
indicator and uses the analysis
to make management decisions
on improving the programme
efficiency. The current criteria for
each programme are available the
Company’s website. The monitoring
and performance assessment
procedures were approved through
the relevant Regulations. Some of the
performance indicators are included
in this report and marked with
.
Annually
•
Financial and non-financial
audits by external experts
•
Employee surveys
•
Questionnaire-based surveys
for participants who are not
employees of the Company
•
Monitoring and performance
assessment against the
approved criteria
Once every two years
•
Public presentations of
external social projects
with the participation of
beneficiaries in the cities of
operation
•
Surveys for local residents
Once every five years
•
Expert review of
the regulatory framework for
programme implementation
PhosAgro Group has a long-
standing tradition of successful
engagement on sustainable
development matters with the
authorities in the regions, cities,
towns, and rural settlements where
the Company’s main facilities
operate.
Interactions with locally elected
officials provide valuable insights
into the most pressing social needs
of each municipality (region).
2024 HIGHLIGHTS
RUB 11,729 mln
worth of social investments
RUB 29,986 mln
in tax contributions to regional and
local budgets
Performance assessment
and feedback, stakeholder
engagement
GRI 413-1
In line with the Regulations on
Managing Community Social
Programmes, each programme has
a dedicated data sheet outlining its
key aspects, an officer responsible for
its implementation, and appropriate
internal control tools (primarily
managed by the Commission for
Social Issues and Charity, and the
Office for Community Social Projects).
The monitoring and performance
assessment procedures were also
approved through the relevant
Regulations.
More details will be provided
in PhosAgro Group’s Social Report
for 2024.
The Company also collects
a considerable amount of data used
for analysing the effectiveness of
its social investment programmes
from ongoing stakeholder feedback.
Tracking stakeholder opinions helps
the Company stay attuned to evolving
public priorities of social and economic
development.
To that end, the Company engages
in a constructive dialogue with local
communities, employing a variety
of communication channels ranging
from public hearings to community
liaison offices and other venues for
meetings with people.
participation in the activities of
advisory and consultative bodies
under regional and local public
authorities;
collaboration with non-governmental
organisations and representatives of
religious communities;
organising and hosting citywide
public events, including festivals for
charitable projects;
engagement through social media,
the Company’s website and the mass
media;
STAKEHOLDERS FEEDBACK CHANNELS:
public hearings on the Company’s
projects and public opinion research,
including through feedback on
completed projects;
partnerships in implementing
projects such as DROZD, PhosAgro
Schools, projects run with colleges,
universities, hospitals, sports clubs/
teams, and charity foundations;
questionnaires filled in by
beneficiaries of the Company’s
initiatives.
Social investments, RUB mln
In the reporting year, total spending
on social and charitable projects
increased by 25%. In 2024, expenses
in this area exceeded RUB 8 bln,
accounting for nearly 70% of total
social investments. The second
largest spending item is large-scale
nationwide projects: their share
grew substantially over the year from
2.6% to 9.5%, with allocated funding
increasing by 3.4 times. The share of
expenses on education and sports
in the reporting year did not differ
materially from the previous year
despite an increase in funding,
especially in the domain of sports
(up 17.5%). Allocations for supporting
non-governmental organisations also
grew by nearly 2.5 times.
2024
2023
11,729
2022
9,356
8,901
ENGAGING WITH
GOVERNMENT AUTHORITIES
TO FOSTER REGIONAL
DEVELOPMENT
Much of this collaboration is built
on the well-established practices
for responsible conduct exhibited
by our industrial facilities, paired
with adaptability to the emerging
challenges. With that in mind,
each year PhosAgro Group signs
cooperation agreements that help
strengthen partnerships focused on
social and economic development,
and implementation of investment
and social programmes in relevant
regions. In 2024, we signed such
agreements with the governments
of the Vologda, Leningrad and Saratov
regions. A similar agreement was
concluded with the government of
the Murmansk region in 2022 and
covered the period through 2024.
226
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In 2024, we completed the second
stage of the Khibiny Airport
reconstruction. This large-scale
project financed by PhosAgro
Group began in 2023, with
total investments reaching
RUB 708.5 mln. The reconstruction
will significantly improve passenger
safety and comfort, while also
helping to expand the airport’s
route network. Following the
upgrade, the airport features
revamped departure and arrival
halls. The departure hall now has
more check-in counters, which will
significantly accelerate the check-in
and baggage drop processes.
The airport also has a new baggage
claim area with a larger conveyor
belt.
In 2024, the Khibiny Airport earned
the Air Gate of Russia industry
award, coming in second in
the nomination for the Best Small
Airport of the Year (for airports
serving fewer than 500,000
passengers annually).
1 Our Favourite Cities programme
The programme seeks to create a comfortable urban environment that fosters comprehensive personal
development for the benefit of PhosAgro Group’s employees and residents of all the cities where
the Company operates (Kirovsk, Apatity, Cherepovets, Balakovo, and Volkhov).
schools and colleges under its
patronage, and builds or reconstructs
sports facilities.
Through ongoing dialogue with
stakeholders and close cooperation
with regional authorities that have
deep insights into the most pressing
local needs, the Company makes sure
that allocated funds are used in an
effective and consistent way to address
social issues. Moreover, broad-based
partnerships and co-financing models
help foster stronger engagement in
residents, local authorities and the
business community.
Funds allocated by
PhosAgro Group to finance
Our Favourite Cities, RUB
mln
Breakdown of social expenses, %
GRI 203-1, MED 34
According to a sociological survey
conducted in the reporting
year and feedback collected
in social networks, residents of
the Vologda, Saratov, Leningrad
and Murmansk regions are
generally satisfied with urban
improvements currently taking
place in these regions. For
example, in Volkhov, the residents’
satisfaction score reached 85%.
Comments of city residents
regarding the need to maintain
improved areas in due state
are taken into account when
creating PhosAgro Group’s
municipal and charitable
initiatives.
By building social infrastructure
and promoting commitment
to healthy lifestyle, the Company
partners with regional and local
authorities in ensuring balanced
regional development, and offering
high quality of life comparable to
living standards in large cities or
even surpassing them in terms of
accessibility for an average resident.
PhosAgro Group enhances urban
spaces and supports healthcare,
invests significant resources in
upgrading equipment in local
hospitals, renovates and re-equips
PhosAgro’s financing
External co-financing
3,935
1,608
2023
3,412
685
2022
4,272
1,800
2024
Number of urban improve-
ment initiatives submitted
by local authorities, pub-
lic institutions, non-profit
organisations and residents
in 2024
151
78
Total
Submitted
Implemented
In the reporting year, both
PhosAgro Group and external
partners increased their funding
for the Our Favourite Cities
programme, with the Company’s
allocations rising by 8.6%.
Despite a slight decline in the
number of partners involved,
total external co-financing
(including for projects
implemented in partnership with
regional and local authorities)
grew by 11.9%.
109 partners
were engaged
151 urban
improvement
initiatives
were submitted by government
authorities and local
communities in 2024, with 78
of them implemented with
support from PhosAgro Group
980
citywide events were held
in partnership with other
companies
RECONSTRUCTION OF THE KHIBINY AIRPORT
As part of Our Favourite Cities,
the Company also hosts mass cultural
and sporting events, including those
staged in partnership with other
companies.
KEY SOCIAL INVESTMENT PROGRAMMES
GRI 203-2
Nationwide projects1
Infrastructure facilities2
Educational expenses
Sports expenses
Expenses on organisations
of war veterans and disabled
people
Expenses to promote
spiritual values
Membership fees
2.62
22.45
62.65
5.23
0.52
6.51
233.1
RUB mln
1,998.4
5,576.5
465.7
45.8
579.4
2.129
0.02
2022
Total
8,901.0
RUB mln
RUB mln
2.63
77.68
2.62
7.02
2.75
7.21 0.09
Nationwide projects
Infrastructure facilities
Educational expenses
Sports expenses
Expenses on organisations
of war veterans and disabled
people
Expenses to promote
spiritual values
Membership fees
245.8
7,267.6
244.8
656.8
257.5
675.2
8,579
2023
Total
9,356.3
RUB mln
9.54
69.63
2.12
6.58
5.43
6.68 0.02
RUB mln
Nationwide projects
Infrastructure facilities
Educational expenses
Sports expenses
Expenses on organisations
of war veterans and disabled
people
Expenses to promote
spiritual values
Membership fees
1,118.9
8,167.9
248.3
771.5
636.9
783.0
2,607
2024
Total
11,729.1
RUB mln
1 Including expenses associated with membership fees.
2 Including spending on refurbishing educational institutions.
228
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Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Unlocking regional
potential and supporting
local businesses
GRI 203-2
PhosAgro Group makes a significant
contribution to the social and
economic development of the regions
where it operates. The Company is one
of the largest taxpayers for regional
and local budgets. In Kirovsk, Apatity
and Volkhov, PhosAgro’s facilities are
the only source of income for local
economies, while in Balakovo the
Group leads the charge by the volume
of social programmes, despite the
presence of other major companies.
89%
of on-site employees are hired
locally
PhosAgro also provides orders
to regional businesses, including
small and medium enterprises.
Local procurement accounts for
up to one fourth of all goods and
services purchased by the Company’s
production sites.
The Company supports a wide range
of SME development initiatives and
thus offers additional employment
opportunities for local communities.
Khibiny mountain tourism
cluster
One of PhosAgro’s key
social investment projects is
the development of the infrastructure
of the Khibiny mountain tourism
cluster. The cluster includes Bolshoi
Vudyavr Ski Resort in Kirovsk,
the largest facility of its kind
in Northwestern Russia, Tirvas Health
Resort, Apatit Museum and Exhibition
Centre, Khibiny Airport, and two
municipal facilities (ski arena and
the Apatit-Arena Sports Centre).
!
In 2024, PhosAgro Group’s
initiative to develop the
Khibiny mountain tourism
cluster was highly praised
during a meeting on
investment projects in
the Murmansk region chaired
by Yuri Trutnev, Deputy Prime
Minister and Plenipotentiary
Representative of
the Russian President in
the Far Eastern Federal
District.
The Company’s total investments
in the cluster came in at around
RUB 9 bln. Over the past five
years, the tourist flow to Khibiny
has quadrupled, leading to higher
demand for services provided by local
businesses. During the 2023–2024
winter season, the resort welcomed
over 405,000 guests, a 21% increase
compared to the previous season.
The southern slope of the Bolshoi
Vudyavr Ski Resort unveiled a new
cable car line. In the reporting year,
overall spending by tourists in Kirovsk
increased by 46% y-o-y.
The Company partnered with
the municipal authorities of Kirovsk
to create on a parity basis Tourism
and Entrepreneurship Development
Agency, an autonomous non-profit
organisation contributing to the
emergence of new hospitality facilities,
development of the hotel business,
job creation, and higher household
incomes and tax revenues. Over the
past ten years, the unemployment
rate in Kirovsk has decreased nearly
tenfold, with the number of small
and medium businesses growing by
almost 2.5 times.
To promote youth tourism and
engage teenagers in tourist activities,
the Tourism and Entrepreneurship
Development Agency has been
running the Young Tour Guide
School for the second year now.
The additional training programme
includes both theoretical and
practical components and lasts 72
hours spread over the school year. In
2024, the project made it to the list of
the Top 100 best practices compiled
by the Russian Ministry of Economic
Development.
23
new entrepreneurs in tourism and
allied businesses
29
new facilities launched
108
new jobs created
22
investment projects supported by
the Tourism and Entrepreneurship
Development Agency to develop
tourism infrastructure. Total
investments amounted to
RUB 7.8 bln, with the projects
expected to create 764 new jobs
PhosAgro Group’s social project
to improve the infrastructure and
recreational appeal of the Khibiny
mountain tourism cluster won
the Company of the Future 2024
award from the Russian Ministry
of Economic Development and
Company magazine.
Kirovsk took the top spot in
the international PRO Brand
competition sponsored by the
Eurasian Community of Tourism
Industry Experts for its project on
Branding the Khibiny Tourism and
Recreation Cluster.
Grant competitions
Regional grant competitions constitute
one of the key elements of the Our
Favourite Cities programme. The Group
has long supported social, cultural and
educational institutions, stepping in
with funding whenever needed. Over
the past three years, the Company has
moved to a competitive framework for
distributing this support with a view
to making the process more efficient
and transparent. These social project
competitions are held in all cities
For more information,
see the Local Supplier
Management section
2024 highlights
where PhosAgro operates and adhere
to the unified approach, while also
considering local singularities. Eligible
applicants include kindergartens
and schools, institutions of additional
education, social, cultural and sports
organisations, NGOs and local self-
government associations. The
participating projects must address
a specific social issue and aim to
improve the quality of life for local
residents. A mandatory condition is
the provision of co-financing at the
applicant’s own expense or from the
municipal budget. For organisations
with no prior competition experience,
the Company holds introductory
training sessions to teach the basics of
project development and application
preparation. Applications are reviewed
by expert commissions, which include
representatives of PhosAgro Group and
local authorities. The process has two
stages, with applicants pitching their
ideas in person to the panel during
the second stage. We are witnessing
growing interest, as more applications
are coming in each year.
p.
138
230
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Corporate governance
Share capital
Appendices
Performance review
1 Including expenses associated with refurbishments of educational facilities.
The Russian Federation Council
Committee on Science, Education
and Culture recommended that
the Government incorporate the
experience of PhosAgro Group in
training qualified engineers and skilled
workers into the Professionalism
federal project, and educational
and production clusters across key
industries.
Over RUB 14 bln
invested by the Company
in educational initiatives over
the past ten years
Over 3,500
graduates of the corporate
educational system employed
by the Company
School–college/university–
facility educational model
PhosAgro Group runs a unique
in-house educational model focused
on fostering engineering talent as a
way to address workforce challenges
amid growing competition in the
labour market. The multi-tiered
programme for training qualified
employees spans all stages of
education. The Company supports
school education, runs career
guidance projects for young people,
and cooperates with institutions of
secondary vocational and higher
education in the cities of operation,
but also in Moscow, St Petersburg,
Ivanovo, Kazan, and other university
hubs. Programme experts help
students define their career interests
while still in school and provide
ongoing support through every stage
of their education journey up to the
point of employment.
Financing of the school–
college/university–facility
educational model, RUB mln1
PhosAgro Schools
The first stage of the school–
college/ university–facility career
guidance model operates across
six PhosAgro Schools based in
Volkhov, Balakovo, Apatity, Kirovsk
and Cherepovets, with more
than 6,000 students enrolled.
In the 2024–2025 academic year,
343 students of PhosAgro Classes
pursue advanced studies of
mathematics, computer science,
physics, and chemistry. Once the
studies are completed, the students
will have an opportunity to enrol in
one of the Company’s 24 partner
universities or in its affiliated colleges.
342 teachers from educational
institutions involved in the programme
benefit from ongoing professional
development and additional
incentives. The Company provides
financial support to its affiliated
PhosAgro Schools, helping them with
building renovations and equipping
their classrooms and research labs.
PhosAgro also runs career guidance
projects to help students, teachers
and parents better understand the
Company’s operations and corporate
culture. At summer science schools,
8th and 9th graders are encouraged
to continue their studies in dedicated
high-school PhosAgro Classes so
that they could eventually enrol in
Russia’s top-tier vocational and higher
education institutions. Students from
the 10th and 11th grades of PhosAgro
Classes can take part in summer
intensive training programmes to
deepen their passion for chemistry, go
beyond the school curriculum, and get
prepared for academic competitions
and Olympiads in chemistry. These
efforts help spark a broader interest
in technical careers.
To get even more people involved,
PhosAgro organises mass community
events with grant recipients.
In February–March 2024, Apatity
and Kirovsk hosted Living in the
North – Doing Good!, the festival of
the Company’s social and volunteering
projects, with attendance reaching
2,000 people.
183 projects
submitted across PhosAgro’s
footprint, with 50 of them
winning financing
RUB 17.2 mln
allocated for the competition’s
grant pool
2 Education
Healthy, educated and professionally trained population is a critical driver of any region’s social appeal
and investment case. The Company is 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.
2024
2023
707
2022
612.1
602.8
RUB 237 mln
allocated for school support
programmes (including school
refurbishments)
37 graduates
of PhosAgro Schools in 2024
joined in various divisions of
the Company
113 out of 127
PhosAgro School graduates
were admitted to universities
in 2024, including 74 students
pursuing technical majors (of
them 12 were enrolled under
Company-sponsored and
scholarship agreements)
The average score of students
from PhosAgro Classes on
the unified state exams in core
subjects exceeded the national
average.
Three PhosAgro Schools from
Balakovo, Cherepovets and
Apatity made it to the list of Top
10 most successful educational
institutions in their respective
regions, according to RAEX.
2024 highlights
59.4%
of graduates have chosen
technical majors at universities
since the programme’s
inception
Number of programme
participants enrolled in
universities in 2015–2024
Total graduates
Including graduates enrolled
in universities
1,258
Including graduates choosing
technical majors
Employer-sponsored
technical education
1,108
658
216
School
College
University
Career with PhosAgro
Results of the grant
competition in 2024
Grant pool, RUB mln
Applications
Projects funded
17,2
50
183
232
233
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
College/university
College
At the next stage, we provide
the country’s leading technical
universities with funds for equipment
and supplies and participate in
adapting educational programmes
to the needs of modern production
facilities.
Cherepovets College of Chemistry and
Technology and Volga Region College
of Technology and Management
participate in the Professionalism
federal project and 70% of the
teaching time is devoted to practical
training, which takes place, among
other things, in the workplace.
In 2024, the Company helped Volkhov
Multidisciplinary Technical College
introduce two new specialities:
941 students
(up 11.3% y-o-y) obtained a blue-
collar profession at partner
colleges in 2024
48% of 885
graduates were employed in
their profession
2024 highlights
University
Cooperation with universities as part
of the school–college/university–
facility educational model 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, creating an environment,
conditions, and opportunities for
affordable and quality education, while
also supporting scientific research.
PhosAgro-START
programme
The PhosAgro START programme
(formerly High-Potential Graduates)
is aimed at attracting young
professionals and has been
implemented in cooperation with
universities for the past 12 years.
PhosAgro offers young talents
comprehensive professional
development and hands-on training,
and nurtures their personal and
management competencies via
corporate training sessions, workshops
and project presentations, all under
the supervision of seasoned mentors.
Those enrolled in the programme
enjoy competitive remunerations,
assistance with relocation and settling
in their new environment, and are
offered accommodation. Additionally,
every young professional is partnered
with a well-versed mentor colleague.
The programme prepares future
leaders (Leader career track) and
experts with a focus on a specific
domain (Expert career track).
694 graduates
have joined the Company since
the programme was launched
460
of them still work for
the Company. Over 50% of them
received promotions and were
included in our talent pool
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;
supporting students in
undergraduate and graduate
thesis research;
organising and engaging
students in sports, educational,
and research initiatives,
competitions, Olympiads.
!
Our collaboration with
vocational schools covers:
RUB 54 mln
allocated for partner college
support programmes
12 mentors
received basic pedagogical
training at Cherepovets College
of Chemistry and Technology
The Exciting Holidays
programme of Cherepovets
Chemical Technology College
was among the finalists in the
Best Additional Training Project‘
category of Russia – My Horizons,
a national vocational guidance
award. Kirovsk branch of Apatit
was on the shortlist in the Best
Corporate Employer category.
Chemical Technology of Inorganic
Materials and Inorganic Production
Operator to train professionals for the
Volkhov branch of Apatit. Students
can enter into a training agreement
with the Company and receive social
support, with 24 technical school
students benefiting from such
scholarship as of today.
There is unwaveringly strong demand
for training in technical professions,
especially in Cherepovets and Kirovsk.
In the reporting year, the number of
applicants per place in the colleges
was seven and five, respectively.
THE COMPANY HAS BEEN
CONSISTENTLY PARTNERING
WITH VOCATIONAL
SCHOOLS ACROSS ITS
FOOTPRINT, INCLUDING:
!
Kirovsk branch of Murmansk
Arctic State University
(Murmansk region);
!
Cherepovets College of
Chemistry and Technology;
!
Volkhov Multidisciplinary
Technical College;
!
Volga Region College of
Technology and Management;
!
Golovanov Apatity
Polytechnic College.
Students of specialised universities
who have chosen targeted training
enter into agreements with one
of Apatit’s branches. The Company
offers them paid internships
starting the third year of education,
pays additional scholarships, and
guarantees employment after
graduation.
We have cooperation agreements
and roadmaps with many universities.
The Company established the
Laverov scholarship programme at
Mendeleyev University of Chemical
Technology, with annual scholarship
awarded following a competition to
ten best students who do research in
ecology, environmental management,
new materials and substances. In
the reporting year, scholarships for
young chemists were conferred for
the sixth time. In 2024, the branch of
Mendeleyev University of Chemical
Technology in Tashkent hosted the
first similar Sadykov scholarship
contest initiated by PhosAgro Group.
In 2024, it was resolved to establish
a Higher School for Mining Engineer
Training at the branch of Murmansk
Arctic State University in Apatity.
The Company’s investment in this
project is estimated at almost
RUB 3 bln.
In 2024, a training laboratory for
mineral processing and a student café
were opened with the Company’s
support at the Apatity branch of
Murmansk Arctic State University.
AS PART OF ITS
COLLABORATION WITH
UNIVERSITIES, PHOSAGRO
GROUP:
!
invites students for hands-on
training;
!
offers scholarships to the most
successful students (based on
exam results);
!
invites university students to
take a career guidance tour of
the Company’s facilities;
!
offers students a job in one
of the Company’s popular
specialisations after they
graduate;
!
provides financial assistance
for the reconstruction and
re-equipment of laboratories at
the relevant universities;
!
takes part in job fairs, graduate
recruitment events, open days,
and other university activities,
while also attending student
graduation thesis defence.
Number of student interns at
PhosAgro Group’s entities
2024
2023
1,434
2022
2021
1,281
1,009
749
234
235
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
DROZD (Educated and
Healthy Children of Russia)
Since 2001, Educated and Healthy
Children of Russia (DROZD) has
been PhosAgro Group’s key social
programme in engaging young
people. The programme is aimed at
a balanced development of young
people in the cities where we operate.
This is a comprehensive system of
long-term interactions with children
aged 4 to 18 that combines sports,
spiritual, intellectual, and patriotic
education.
To facilitate the DROZD programme,
similar independent non-profit
organisations have been established
in five cities where the Group operates.
The coordination council defines
the strategy of their operation.
They all work closely with partner
organisations.
In 2024, raised funds accounted for 21%
of total programme expenditures,
roughly flat y-o-y, which indicates
the popularity and great interest in
the project not only from the region’s
local communities, but also from
the regional authorities.
Programme expenditures
and share of
co-financing, RUB mln, %
As at the end of 2024, 84 sports
clubs (vs 78 in 2023) were operating
in Kirovsk, Apatity, Cherepovets,
Volkhov and Balakovo as part of
the DROZD programme, covering
31 different sports. Alongside these,
the Company launched several
creative studios and additional
education classes. More than 8,500
children, including children of
the Company’s employees (21.5%),
attend them free of charge on
a regular basis
• 14.4% increase in the number
of the programme participants
in 2024 compared to 2022
• More than 150,000 students
have taken part in the DROZD
programme over the last 22 years
Number of DROZD
participants, persons
In addition to sports clubs, hobby
groups for popular science were
organised. Their number almost
doubled over the year, reaching 20.
In 2024, a total of 63,000 children
were engaged in DROZD project
activities – competitions in various
sports, educational programmes,
and artistic festivals (up 13.6% y-o-y).
Media, including PhosAgro
Group’s print outlets and social
media, actively spotlight DROZD’s
endeavours. 2024 saw some
6,000 publications and posts in the
printed media and online about
various events of the programme.
Total number of participants
in public events, corporate
festivals, and celebrations
staged by DROZD, persons
Number of PhosAgro-START
participants, persons
PhosAgro’s educational centres have
been opened in 21 of them to promote
the Company’s From Mine to Plate
educational programme.
Together with the Russian Ministry of
Agriculture, we launched the Pro Agro
Lectorium, an e-learning platform
featuring more than 420 video lectures
on various aspects of agronomy and
agriculture
2024
2023
61
2022
54
59
2024 highlights
RUB 116 mln
allocated for university support
programmes
61
young professionals recruited by
the Group facilities in 2024
50.5%
of the PhosAgro START
participants received
promotions and were
included in our talent pool
(47% in 2023)
Cherepovets State University
opened a Fertilizer Technology
and Comprehensive Research
Laboratory with the Company’s
support.
PhosAgro Group and St
Petersburg State University
announced the start of
cooperation in research and
development.
ProAgro Lectorium educational
project won the international
BRICS Solutions Awards.
Cooperation with Russian
agricultural universities
An important part of the Company’s
education initiatives is to share its
personnel training practices with the
educational system in the agribusiness
sector. A joint programme with
the Ministry of Agriculture for the
promotion of agricultural education
already covers three colleges and
47 agricultural universities.
2024 highlights
Apatit’s funds
Raised funds
2024
2023
238.6
203.6
2022
58.7
147.2
44.6
64
302.6
262.3
191.8
Number of participants
Including children
of PhosAgro employees
8,307
1,787
2024
7,785
1,695
2023
7,263
1,606
2022
2024
2023
39,840
2022
55,487
63,071
Total number of events
Events held
Offsite events
641
558
2023
563
413
2022
952
624
2024
Events for children with
disabilities
The DROZD programme also covers
more than 110 kids with disabilities.
In Balakovo, a rehabilitation sledge
hockey club was organised for children
and teenagers with musculoskeletal
disabilities and cerebral palsy, with
a group of children with disabilities
established in a kindergarten in
Volkhov to exercise using Chinese
jump rope. DROZD-Cherepovets
successfully implements the GTO
Without Borders project. In 2024,
11 sports facilities of the city’s
organisations were accessible for
pre-school and school-age children
with disabilities. As part of the project
implementation in 2024, nine clubs
were established. Another eight GTO
clubs for children with disabilities
are to be opened in spring 2025.
93 students
with disabilities were trained
and 60 of them successfully
passed the GTO fitness test
For more
information, see
the Research,
Innovations
and Education,
Customers
and Product
Management
sections
p.
106
p.
92
236
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Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
DROZD Village programme
DROZD goes far beyond city limits.
Since 2016, DROZD-Balakovo has
been promoting healthy lifestyles
among young people in rural
locations. The DROZD Village
programme covers 15 villages across
the Balakovsky district, with 650
people engaged in seven sports.
In the Cherepovetsky district,
the DROZD-Village programme
helped establish karate clubs in Suda
and Shulma, while the district centre
of Kaduy boasts a polyathlon club, full-
fledged training grounds at the local
sports facility, and a skiing track with
a shooting range. In 2024, DROZD-
Volkhov opened a basketball club in
Syasstroy. The Company covers all
expenses for equipment and repair
of gyms, purchase of sportswear,
necessary sports goods, and
remuneration of coaches.
FEEDBACK
To obtain feedback, each entity
conducts an annual survey
of children and their parents
to identify strengths and
weaknesses. In the reporting
year, 88% of parents surveyed
in Balakovo were satisfied
with the organisation of
education and sports training,
while in Cherepovets 91.3%
of respondents gave positive
feedback (vs 90.1% in 2023).
In Volkhov, training conditions
tend to improve, and the
qualifications of coaches were
rated as “excellent”.
Total number of children who
improved their health index,
persons
Sports achievements of DROZD students
2022
2023
2024
Winners and runners-up of competitions
International competitions
10
6
16
National competitions
71
86
164
Regional competitions
1,158
1,476
1,259
Municipal competitions
3,406
3,874
3,989
Candidate Masters of Sports
13
30
41
Masters of Sports
2
4
3
In 2024, DROZD-Cherepovets
won the Top 100 Russian
Companies competition.
The programme has been underway
since 2001 and is implemented
in cooperation with the Russian
Orthodox Church, local government
authorities, non-governmental
organisations, and local communities.
In 2024, the Company continued to
support the Moscow Patriarchate,
dioceses of the Russian Orthodox
Church and 47 churches in the regions
of operation and in other domestic
and international locations. Orthodox
churches (14 in total) were erected at
each of the Company’s production
sites, as well as in Moscow.
The Church of St Andrew at the
Volkhov branch of Apatit hosts the
Andreyevsky Spiritual and Educational
Centre supported by the Company.
The Centre has a library, various
2024 highlights
Health monitoring
For teachers and parents to be able
to adjust the types of activities to
the best of each child’s abilities, there
is a health monitoring procedures in
place for kids. In the reporting year,
43% of all children participating in
the programme were examined using
the Health Navigator methodology.
Nearly two-thirds of them increased
their Health Index score, with
the average Health Index rising from
4.5 to 4.7 over the year.
2024
2023
3,054
2022
1,930
2,302
3 Spiritual revival
The main objective of the programme is to preserve and promote orthodox values, spiritual ideas,
and respect for our legacy and motherland.
creative groups and educational
courses for children and adults on both
secular and Orthodox topics.
MURMANSK
VOLKHOV
KIROVSK
BALAKOVO
CHEREPOVETS
• At the end of 2024,
the construction of
the Transfiguration of
the Saviour Sea Cathedral
of St Nicholas began, with
PhosAgro Group acting as
the lead sponsor
• Six churches received support
from the Company
• 904 events hosted
by the Andreyevsky Spiritual
and Educational Centre were
attended by over 4,000 people
• The Church of the
Acheiropaeic Image of the
Saviour Lord Jesus Christ
opened after reconstruction
supported by the Company
• The Company provided
assistance to the Balakovo
Diocese and three churches
• The youth choir of the
Cherepovets Diocese took
part in the Winter Garden of
Arts festival of Russian culture
in Italy
• The Company sponsored
a documentary titled
“Athanasius and Theodosius of
Cherepovets. Devotees of the
Russian North”
• As part of the Chemist’s Day
celebrations, the Company
supported the Family Festival
of Spiritual Creativity
• The Company provided
assistance to the Cherepovets
Diocese and nine churches in
the Vologda region.
• 7,500 people attended
spiritual education events
238
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Performance review
Total visitors to the
Company’s museum and
exhibition centres, people
Number of events held
In 2024, more than 140,000
participants aged 6 to 18 attended
career guidance, cultural, and
educational events at museum
and exhibition centres.
The online audience totalled
300,000
Interactive Education
Centres (Museums) project
Corporate public spaces created and
supported by PhosAgro Group are
integral to the vocational guidance
programme targeting schoolchildren,
students, and young professionals. The
association of museum and exhibition
centres and centres for interactive
learning in the cities of the Company’s
operations is a part of PhosAgro’s
Interactive Education Centre, a private
institution of additional education.
All these sites have permanent
exhibitions with multimedia and
interactive equipment on chemistry,
geology, ecology, and history of
the Company’s assets. In addition
to sightseeing tours, they run
educational programmes, hold
chemical and geological workshops,
scientific lectures, and creative master
classes. The interactive education
centres provide information about
specialised educational programmes,
such as Talent Pool, PhosAgro-START,
and PhosAgro Schools. Schoolchildren
and students are invited to participate
in bespoke vocational guidance tests
and offered insights into professions
in high demand at the Company’s
facilities. 118 PhosAgro School students
were trained in interviewing, video
and photo editing, and social media
as part of the Media School project,
creating over 140 publications, articles,
and videos.
Museum and exhibition
centres
Corporate museums not only provide
schoolchildren and students with
essential career guidance, initiating
them into the history and modernity
of the Company’s assets and people
who work at them, but also play a
major role in the local community
engagement. They become centres of
cultural life in their cities, key tourist
and educational hubs.
In 2024, the Fertility Academy centre
for interactive learning reopened
in Balakovo after renovation, the
exhibitions of the Green Planet centre
for interactive learning in Cherepovets
were upgraded, and modernisation
and restoration work is underway
in Kirovsk and Volkhov. The centres
offer more than 150 programmes
in various areas. Accessibility of
services for visitors and high quality
of information, diversity of events
and use of new technologies all
contribute to the growing attendance
at the centres in the cities where the
Company operates.
4 Connecting Generations
The main goal of the programme is to preserve memory of the history of the nation, industry, or facility
for all generations; maintain traditions of respect for the older generation, veterans, and vulnerable
population groups.
PROJECT PARTICIPANTS:
!
Apatit museum and exhibition
centre for interactive education
in Kirovsk (since 1932);
!
Fifteenth Element, a museum
and exhibition centre in
Volkhov (since 2016);
!
Academy of Fertility, a centre
for interactive learning in
Balakovo (since 2008);
!
Green Planet, a centre for
interactive learning in
Cherepovets (since 2017).
Funding of museum and
exhibition centre, RUB mln
2024
2023
247
2022
134.3
103
2024
2023
85,544
2022
110,843
141,036
2024
2023
3,425
2022
4,560
5,471
Security Agents project
In 2024, the Company completed
its Security Agents project, which
it started in 2020. The efforts were
initiated by Apatit’s Economic Security
Department and the Ministry of
Internal Affairs’ Office in Cherepovets
and then rolled out across the regions
of our operation. The project is aimed
at promoting a responsible attitude
towards safe behaviour and raising
awareness in children, young people,
and their parents.
The project relied on the resources
of PhosAgro Group’s museum and
exhibition centres and included
excursions and classes in permanent
interactive spaces, lectures and
consultations by external experts,
mobile exhibitions, sporting events
and festivals.
Over the four years of the project,
more than 19,000 safety-related events
were organised, with more than
38,000 teenagers participating.
Five permanent and seven mobile
exhibitions were organised in the cities
where the Company operates, with
10 festivals, 65 thematic games and
more than 2,000 events held. The 2024
festival brought together a record
number of participants – 170 children
from five regions.
Thanks to the Company’s financial
support, participation in the events
was free of charge for all categories
of visitors. The project was highly
praised by participants and the expert
community. One of the important
project deliverables is the reduction
of juvenile delinquency.
.
2024 highlights
2,661
kids, schoolchildren, and
university students visited
museums of PhosAgro’s
Interactive Education Centre
12,506
people took part in career guid-
ance programmes
27%
and 20% increases in the
number of visitors and events,
respectively
97.3%
of surveyed visitors were
satisfied with the professional
educational programmes, free
excursions and events
Apatit museum and exhibition
centre in Kirovsk was ranked
among Top 25 by the Corporate
Museum National Award
The Green Planet interactive
educational centre was
awarded an honorary diploma
of the winner at the 2024 Top
100 Russian Companies award
in the category for the Best
Museum and Exhibition Centre.
+11% y-o-y
+24% y-o-y
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Performance review
Targeted
Assistance project
Vologda region
In the Name of Good charity
foundation provides assistance
to children with disabilities and serious
diseases. In 2024, 63 children received
assistance for taking treatment,
examination, and rehabilitation
courses, with another 27 children
provided with other types of
assistance.
The Company collaborates with
the Future Exists, Vologda’s regional
organisation supporting families with
disabled members. In 2024, Pottery,
a rehabilitation and career guidance
platform for children with disabilities,
continued to operate in Cherepovets.
The organisation’s teenage centre in
Cherepovets launched the region’s
first street service for teenagers.
The inclusive centre has created a
safe space for communication and
development, organised meaningful
leisure activities, and provided
sessions with a psychologist.
The Company assisted in renovation
of the premises. Now the centre is
attended by 76 children, including 23
with special needs.
In Cherepovets, the Company
cooperates with I CAN, a local
organisation that helps people with
special needs and implements a
project of supported employment for
people with disabilities.
Murmansk region
In the Kirovsk and Apatity municipal
districts, assistance was provided
to 24 volunteer movements/
organisations that offer targeted
support and assistance to veterans,
the older generation, and vulnerable
population groups. In remote areas,
veterans‘ and elderly people’s
clubs operate in the format of
volunteer centres.
The Company offers support to
volunteer centres in Kirovsk’s
microdistrict of Kukisvumchorr and
in Koashva, and the Dobrodeya and
Rodnik volunteer clubs in Titan and
Kirovsk, respectively. Support also
goes to the Veterans of War and
Labour organisation. In Apatity, two
pensioners’ associations and the
Children of War organisation operate
with the Company’s support.
Thanks to the Company’s financial
support, 60 people were trained
under the IT Cube digital education
programme in 2024.
A 22.8%
increase in the number of
elderly people who go to
volunteer centres
About 3,000
visits to sports events
About 2,800
visits to cultural and
entertainment events
Leningrad region
For the fourth year running, Volkhov
hosts the Veterans’ Backyard
gardening competition under the
Company’s auspices. As part of the
Targeted Assistance programme,
PhosAgro pays for health resort
vouchers for veterans, makes various
social payments, holds festive city
parties, and distributes fertilizers
among households.
We also support Valimsky Rubezh,
a war history non-governmental
organisation from the Leningrad
region with a focus on the patriotic
education of young people, preserving
historical memory, and engaging
schoolchildren in war relic search.
Corporate volunteering
development
Our corporate volunteering has a long
history and traditions. The Company’s
volunteers joined the #WeAreTogether
federal initiative. Corporate volunteers
assist in arranging and holding
corporate events, festivals of the
Company’s social and volunteering
projects, patriotic activities, and
various festivities.
!
with the Company’s support,
a renovated Museum
of the History of the Vologda
Police was opened in
Vologda, which, in addition
to the traditional historical
part, has new spaces such
as the Security Laboratory
and the Legal Affair mobile
exhibition;
!
a set of teaching packages
was produced for the Security
Agents additional general
education programme;
!
Cybersecurity Lab, a new
information space, was
created in Cherepovets, where
the basics of security in the
digital space are explained
to the target audience in
a comprehensible form.
IN 2024:
In 2024, the Company continued
to provide targeted assistance
to NGOs and support volunteer
initiatives in the regions where
it operates. PhosAgro Group
supported more than 70 non-
governmental organisations of
veterans and disabled people,
as well as charity foundations.
Saratov region
The main activities of the Targeted
Assistance programme in Balakovo
were focused on members of the
corporate veterans’ organisation. Two
groups regularly visit the NON-STOP
fitness cub and a fitness centre and
take part in sports competitions. The
Company provided funding to host
lectures by medical professionals and
organise medical tests, home visits
and presentation of gifts to veterans.
We also supported the facility’s Youth
Council.
90% of visitors are satisfied with
the facilities at the volunteer
centres and the care they
receive from PhosAgro.
Funding for the Targeted
Assistance programme,
RUB mln
2024
2023
62
2022
103
94
2024 highlights
14%
of employees took part in
some corporate charity
projects in 2024, with another
35% demonstrating interest
and willingness to join future
projects
Over 900
corporate volunteers took part
in 91 events in the regions where
the Company operates
More than 500
volunteers contribute to
the DROZD volunteering
movement
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Performance review
In October 2024, Timiryazev
Agricultural Academy unveiled
the Timiryazev Centre, Russia’s
first specialised training and
exhibition venue for the agribusiness
sector. The project spans an area
of over 40,000 sq m and was
sponsored by the Company, which
invested some RUB 5 bln in it,
including RUB 1.8 bln in 2024.
The Company contributed to the
financing of a project to establish
the Research and Development
Centre at the Kola Science Centre of
the Russian Academy of Sciences.
The project focuses on developing
technologies to increase the depth
of processing apatite-nepheline ores,
taking into account the variability
of their mineral composition at the
beneficiation plants of the Kirovsk
branch of Apatit. The Centre was
launched in Apatity in March 2024.
PhosAgro Group is a long-standing
partner of the Russian Cross-Country
Skiing Federation, organising the
final stage of the Russian Cup at the
Tirvas Ski Resort in Kirovsk. In 2024,
PhosAgro Group and the Russian
Cross-Country Skiing Federation
agreed to expand their strategic
partnership. In 2025, the Company
will act as the title sponsor of the
federation and raise payouts for
the winners of the Bolshoi Vudyavr
tour. In addition, as part of Our
Favourite Cities programme, the
Company will continue to develop
the Tirvas Ski Stadium and the sports
and tourist infrastructure of the
Khibiny Mountains.
PhosAgro Group is also a partner of
the Russian Paralympic Committee.
In 2024, the Company supported
the Committee in organising the
participation of Russian athletes
in the 17th Summer Paralympic
Games in Paris. In addition, PhosAgro
Group was the general sponsor
of the first international friendly
football tournament for professional
teams of blind players from BRICS
countries held in Moscow in late
December 2024.
2024 highlights
The Company provides support to
20
sports organisations operating
on the federal, regional and
municipal levels
The Company has sports facilities
available free of charge at all our
assets, while also building and
reconstructing sports venues
in the cities of operation.
The Company is a sponsor of Avtodor
Basketball Club (Saratov), Proton
and Severyanka Volleyball Clubs
(Cherepovets), and Turbina speedway
team (Balakovo).
The Company traditionally supports
competitive sports and has been
a long-time general partner of several
national sports federations.
PhosAgro’s support at the federal level
went to:
• Russian Olympians Foundation;
• Russian Gymnastics Federation;
• Russian Cross-Country Skiing
Federation;
• Russian Chess Federation;
• Russian Rugby Federation;
• Federation of Blind Footballers.
The Company’s support at the regional
level went to:
• Moscow Rhythmic Gymnastics
Federation;
• St Petersburg Regional Judo
Federation;
• Proton Volleyball Club
(Saratov region);
• Avtodor Basketball Club
(Saratov region);
• Turbina speedway team
(Saratov region);
• Severyanka Volleyball Club
(Vologda region);
• Kovrovets Motoball Club
(Vladimir region);
• Fellowship of Support and
Development of Children and Youth
Biathlon of Russia – Kid’s Cup
5 Promotion of sports
PhosAgro Group is committed to the development of youth sports and physical culture among its
employees, their families, and local communities in which we operate.
Programme
expenses, RUB mln
2024
2023
501.3
2022
447.6
319.4
KIROVSK
APATITY
Bolshoi Vudyavr Ski Resort
won in two nominations of the
Ski Business Awards (Best Ski
Resort in the Northwestern
Federal District, and Russia’s
Best Restaurant at a Ski Resort)
held as part of the business
programme of the 2nd Forum
of Tourist Areas
The second Sergei Fedorov
Cup, a New-Year hockey
tournament with prizes provided
by PhosAgro, was played in
December by teams of young
hockey players born in 2013–2014
from Kirovsk, Apatity, Murmansk,
and the Kolsky district
of the Murmansk region
6 Nationwide projects
PhosAgro Group allocates significant funds to support agribusiness infrastructure at the federal level:
244
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Appendices
Performance review
Sulphuric acid
[Lat. Acidum sulphuricum H2SO4]
Key initiatives
in 2024
p.
249
Fertile ground for
partnership
The sustainability principles are
brought to life throughout the
Company, uniting employees in
the drive towards a sustainable
future. Open and responsible
corporate governance is
key to creating a favourable
environment for nurturing a new
generation of leaders.
CORPORATE
GOVERNANCE
248 Corporate governance framework
250 Corporate governance practices
254 General Meeting of Shareholders
254 Board of Directors
274 Executive bodies
276 Remuneration report
279 Corporate controls
286 Ethical practices
246
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Corporate governance
Share capital
Appendices
Accountability of management
bodies
Equal rights
of shareholders
Transparency of operations
Responsibility to society,
the state, and stakeholders
INTERNAL DRIVERS
!
The Company’s mission and
values supported by our
Corporate Strategy.
EXTERNAL DRIVERS
!
Regulations and stakeholder
expectations.
Corporate governance framework
CORPORATE GOVERNANCE PRINCIPLES
PhosAgro’s corporate governance
principles, structure, practices and
procedures are set forth in its Charter
and Corporate Governance Code.
Provisions of the Company’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 (UK CGC, FRC, 2024).
SUSTAINABLE DEVELOPMENT GOVERNANCE
GRI 2-12, 2-13
Our governance framework
for sustainable development (SD)
relies on a number of internal and
external drivers.
For more information
on the six main
components
of the sustainable
development
governance
framework, please visit
the Sustainability section
on the official website
!
Basic principles of PhosAgro’s corporate governance:
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
1 Carbon Border Adjustment Mechanism.
2024 initiatives
GRI 2-14
1
2
3
4
5
Documentation support
• A transparency statement
under the UK Modern Slavery
Act (as amended) approved
IT
• Automation of a number
of GRI indicators and
the Methodological
Recommendations
of the Russian Ministry
of Economic Development
based on data from
the Company’s accounting
systems continued
• The products’ carbon footprint
(including for the CBAM
purposes) calculated
through the adaptation
of the Company’s existing
automated accounting system
verified successfully
Business processes
and organisation
• Comprehensive regulations
on interaction in preparing non-
financial reporting updated
• Regulations on interaction
in calculating and verifying
the carbon footprint of products
(including for the CBAM1
purposes) developed
• International and national
certificates of compliance
with the ISO 9001, ISO 14001,
ISO 45001, GMP+, GOST R 51705.1
(HACCP) and Qualidade ABNT
Ambiental standards confirmed
• Establishment of a non-financial
reporting section within
the Economics Department
of JSC Apatit approved
• An energy management
service created to improve
the management of energy
consumption
Competencies and people
• Participating in major
international and Russian
events and initiatives hosted
by the RSPP, ESG Alliance, UN
Global Compact, UN FCCC, etc.
Project management
• List and coverage
of sustainability key
performance indicators (KPIs)
expanded
• Coverage of the automated
supplier ESG assessment
system expanded
• Implementation of ESG
supplier assessment criteria
harmonised by ESG Alliance
commenced
Performance review and
reporting
• The integrated annual report
procedure updated and
approved
• Sustainability initiatives
developed based
on the analysis of external
ESG assessment tools
• Reporting to the Strategy and
Sustainable Development
Committee put in place
based on the monitoring
of the Company’s
sustainability projects
• Integration of the GRI,
CDP, IFRS, SASB, Bank
of Russia, and Ministry
of Economic Development
recommendations into non-
financial reporting continued
• Non-financial reporting
publicly verified by the Expert
Council of the RSPP
6
248
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Corporate governance
Share capital
Appendices
Performance review
Corporate governance practices
1 The data on Russian public companies comes from the annual Review of Corporate Governance Practices in Russian Public Companies compiled by the Central
Bank of Russia based on reports assessing compliance with the CGC principles and recommendations for 2023.
Functional departments in sustainable development
•
Ecology and Environmental
Management
•
Human Resources and Social
Policy
•
Technical Development, Capital
Construction and Repairs,
Samoilov Scientific Research
Institute for Fertilizers and
Insectofungicides (NIUIF)
•
Marketing and Development,
Innovations, NIUIF
•
Procurement
•
Project Management
•
Economic departments
•
Risk Management and Internal
Control
General meeting of shareholders
Board of Directors
Review
Committee
•
Audit Committee
•
Remuneration and
Human Resources
Committee
•
Strategy and Sustainable
Development Committee
Board of Directors
committees:
Internal Audit
Department
Legal and Corporate
Governance Department
Corporate Secretary
Chief Executive
Officer
Collective executive
body (Management
Board)
Administrative reporting
Functional reporting
Functional relationship
Sustainable Development
Department
Structure of corporate governance and sustainability management
GRI 2-9
Compliance with CGC principles at PhosAgro and other Russian companies, %1
CORPORATE GOVERNANCE ASSESSMENT
To assess corporate governance,
PhosAgro relies on the Corporate
Governance Code recommended
by the Bank of Russia, the UK
Corporate Governance Code (UK
CGC, FRC, 2024), and criteria from
key corporate governance and ESG
ratings as best practice benchmarks.
The actual compliance with the CGC
is evaluated on an annual basis
and disclosed in a dedicated report
(CGC Report), which is subject
to review by the Audit Committee
of the Board of Directors and approval
by the Board of Directors, and forms
a part of PhosAgro’s annual report.
In February 2025, the Board
of Directors reviewed the 2024
CGC Report and the performance
of the 2024 improvement plan.
The Board scrutinised the evolution
of compliance with the Code’s
principles and trends in the quality
of explanations for non-compliance
or partial compliance. Post-review,
the Board of Directors approved
the 2024 CGC Report, and issued
a positive assessment of compliance
with the CGC recommendation.
Compliance with the CGC recommendations
CGC section
Total
number
of matters
Full compliance
Partial compliance
Non-compliance
2022
2023
2024
2022
2023
2024
2022
2023
2024
1. Shareholders’ rights
13
11
11
11
1
1
1
1
1
1
2. Board of Directors
36
30
30
30
5
6
6
1
3. Corporate Secretary of PhosAgro
2
2
2
2
4. Remuneration
10
8
8
8
2
2
2
5. Risk management and internal control
6
6
6
6
6. Information disclosure
7
7
7
7
7. Material corporate actions
5
5
5
5
Total
79
69
69
69
8
9
9
2
1
1
Percentage of compliance with
the CGC principles, %
87
87
87
10
11
11
3
1
1
87
77
2023
87
76
2022
87
78
2021
PhosAgro
Russian public joint-stock companies
87
2024
11
19
2023
10
19
2022
11
17
2021
11
2024
1
4
2023
2
5
2022
1
6
2021
1
2024
Full compliance
Partial compliance
Non-compliance
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
1 The data on Russian public companies comes from the Review of Corporate Governance Practices in Russian Public Companies compiled by the Central Bank
of Russia based on reports assessing compliance with the CGC principles and recommendations for 2023.
Plans for 2025
Key initiatives to further enhance
compliance with the Code, along
with the factors that will impact
decisions on their implementation
in 2025, are provided in the table
“Changes in self-assessment
as regards compliance with corporate
governance principles”.
Additionally, PhosAgro plans
to implement the recommendations
submitted following the Board
of Directors’ self-assessment for 2024
For every case of partial compliance
or non-compliance, PhosAgro specifies
the measures taken to mitigate
the associated risks in the CGC Report.
In 2023, 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, remained unchanged
at 77%, while the average level
in the Russian Federation grew from
64% to 66%.
For detailed analysis of changes in self-
assessment as regards compliance
with corporate governance principles
in 2024 vs 2023
p.
104
p.
116
Changes in self-assessment as regards compliance with corporate governance principles
Number and
brief description
of the principle
Compliance status
Comments
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
2023
2024
In 2023, criterion 1 was partially complied with. A notice on one of the three
General Meetings of Shareholders held in 2023 was published 22 days (not
30 days) before the Meeting date. In 2024, notices on General Meetings
of Shareholders were published 30 days prior to the Meeting date.
In 2024, criterion 3 was partially complied with, as in the run-up to the Annual
General Meeting of Shareholders PhosAgro did not disclose on its website
information about nominees to the Company’s Board of Directors (biographies,
the Remuneration and Human Resources Committee’s assessment
of professional qualifications, experience and skills of Board candidates against
the Company’s present and future needs, and information on the candidate’s
compliance with the independence criteria). PhosAgro considered that publishing
such information could lead to the imposition of restrictive measures against
the Company and/or other parties.
Going forward, PhosAgro will continue to strive for full disclosure of all mandatory
information, except for cases where the release of specific details could result
in restrictive measures against PhosAgro and/or other parties.
1.1.5.
Ability
for shareholders
to freely exercise
their rights to vote
2023
2024
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 s shareholders of the Company hold their shares through nominee
shareholders (with the exception of only 56 out of 276,000 shareholders,
or 0.02%) 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.
Degree of disclosure
to explain non-compliance
(partial compliance) with CGC
principles at PhosAgro and
other Russian companies1, %
77
64
2022
76
59
2021
69
63
2020
77
66
2023
PhosAgro
Russian public joint-stock
companies
Number and
brief description
of the principle
Compliance status
Comments
2.3.2.
Availability
of information
on nominees
to the company’s
board of directors
to shareholders
2023
2024
In 2023, the criterion was partially complied with, as, due to the tight
timeframe of the Annual General Meeting, the shareholders were not provided
with the findings of the 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 present and future needs of PhosAgro.
In 2024, the criterion was partially complied with, as in the run-up to the Annual
General Meeting of Shareholders PhosAgro did not disclose on its website
information about nominees to the Company’s Board of Directors (biographies,
the Remuneration and Human Resources Committee’s assessment
of professional qualifications, experience and skills of Board candidates against
the Company’s present and future needs, and information on the candidate’s
compliance with the independence criteria). PhosAgro considered that publishing
such information could lead to the imposition of restrictive measures against
the Company and/or other parties.
Going forward, PhosAgro will continue to strive for full disclosure of all mandatory
information, except for cases where the release of specific details could result
in restrictive measures against PhosAgro and/or other parties.
2.8.2.
Performance
of the remuneration
committee
2023
2024
The description of partial non-compliance in 2023 and 2024 is identical.
Criterion 1 was only partially complied with, as one of the members
of the Remuneration and Human Resources Committee does not meet
the independence requirements.
Once the General Meeting of Shareholders elects new members of PhosAgro’s
Board of Directors in 2025, the Board will seek to staff the Remuneration and
Human Resources Committee with independent directors only.
Criterion 2 was only partially complied with, as the Chairman of the Remuneration
and Human Resources Committee does not meet the independence
requirements.
Upon the re-election of the Remuneration and Human Resources Committee
in 2025, 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 and
meets the current needs of the Company. When deliberating on amendments
to the Regulations on the Remuneration and Human Resources Committee
or the adoption of a new version of the Regulations (anticipated in 2025–2026),
specific triggers (events) for reviewing the above policy will be incorporated into
the draft documents.
2.8.5.
Composition
of committees
of the Board
of Directors
2023
2024
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 2025, the Board of Directors will seek to elect
an independent director as the Chairman of the Remuneration and Human
Resources Committee.
2.9.1.
Assessment
of the Board
of Directors’
performance
2023
2024
The description of partial non-compliance in 2023 and 2024 is identical.
Criterion 2 was not met with respect to the failure to conduct individual
assessment of each member of the Board of Directors in 2024 (for 2023), 2023
(for 2022) and 2022 (for 2021). Given the substantial 70% renewal of the Board’s
composition since July 2022, the Remuneration and Human Resources
Committee found it irrelevant to carry out an individual assessment. In this
context, the Board identified no significant risks associated with not proceeding
with an individual assessment. In 2025, the Company will resume the practice
of assessing each Board member individually, as part of the Board’s overall
performance assessment exercise
Partial compliance
Non-compliance
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Corporate governance
Share capital
Appendices
Performance review
General Meeting
of Shareholders
The activities of PhosAgro’s supreme
governing body – the General Meeting
of Shareholders – are governed
by the Regulations on the General
Meeting of Shareholders. In June
2024, the Annual General Meeting
of Shareholders was held in absentia
to elect new members of the Board
of Directors and Review Committee,
determine the Board of Directors’
remuneration, and resolve on other
matters within the Meeting’s remit.
The reporting year also saw two
extraordinary General Meetings
of Shareholders convened to vote
on interim dividends.
Board of Directors
Strategy and global
challenges
2025 is the final year of the Company’s
development strategy approved
back in 2019, and in the reporting
year the Board recognised
the achievement of strategic goals
across the majority of the indicators.
In December 2024, the Board
reviewed the main aspects and status
of the development of the Strategy
to 2030, including a set of investment
initiatives, made recommendations
regarding the structure and content
of the document, and plans to review
progress in mid-2025.
In the reporting year, the Board
of Directors continued the practice
that had proven effective in 2022
and 2023, and addressed anti-
crisis management issues related
to planning and evaluating measures
to ensure stable and sustainable
operation of the Company’s
production sites under current
conditions, primarily in the areas
of procurement and sales activities.
Sustainable development
and corporate governance
In the reporting year, the Board
of Directors continued to analyse
the compliance of the Company’s
practices with the Bank of Russia’s
recommendations on the consideration
of ESG and sustainable development
matters by the board of directors
of a public joint-stock company.
The Board’s performance has been
assessed since 2021 onwards in line
with the regulator’s recommendations,
including with the involvement
of third-party experts. The post-
assessment steps were also largely
based on this significant document
of the Bank of Russia, which reasserted
that the Company’s sustainable
development and high-quality
corporate governance are intertwined.
Full text
of the Regulations
on the General Meeting
of Shareholders
of PhosAgro is available
on the official website
of the Company
!
In 2024, the Board of Directors
continued to oversee strategic
focus areas and key decision-
making within its scope
of functions. Throughout
the year, the Board focused
on maintaining the seamless
operation of the Company’s
production assets, supporting
established supply chains
and building new ones.
Information technologies
and information security
The Board of Directors reviewed
the quality of countering
information security threats twice
during the reporting year. One
of the important topics on the agenda
was the Company’s IT strategy and
preparedness to replace software
products that are no longer supported
in Russia due to sanctions.
Ongoing tasks
Apart from the key activities above,
in 2024, the Board of Directors also
focused on the following traditional
areas:
• assessment and quarterly
monitoring of the risk management
process;
• assessment and quarterly
monitoring of subsidiary activities
with a focus on workplace health
and safety, industrial safety and
environmental protection;
• assessment of compliance with
the Inside Information Regulations;
• assessment of the quality
of investment and organisational
project management at PhosAgro’s
subsidiaries;
• appointment and evaluation
of the performance of PhosAgro’s
Management Board;
• oversight over management
relations with shareholders,
investors and other stakeholders;
• monitoring the implementation
of priority areas of PhosAgro’s
activities in 2024 and determining
priority areas of its activities
for 2025;
• reviewing PhosAgro’s budget
for 2025, as well as quarterly
follow-up on the 2024 budget
utilisation;
• performance, work plans, and
budget of the Internal Audit
Department;
• quarterly review and approval
of financial statements;
• convening General Meetings
of Shareholders of PhosAgro;
• assessing the quality of non-
financial reporting and approving
the Company’s annual report.
Participation in the Board
meetings
During the year, the Board
of Directors held
10 meetings
and considered a total
of 68 agenda items.
Meetings of the Board
of Directors
Physical meetings
Absentee meetings
2024
2023
9
1
12
10
2
10
12
12
2022
Participation in the Board meetings
MED 36, 38
Board of Directors
Audit Committee
Remuneration and
Human Resources
Committee
Strategy and
Sustainable
Development
Committee
Victor Ivanov
9/9 (100%)
3/3 (100%)
Yuri Krugovykh
9/9 (100%)
Siroj Loikov
9/9 (100%)
4/4 (100%)
Natalia Pashkevich
7/9 (78%)
Vladimir Trukhachev
7/9 (78%)
5/5 (100%)
4/4 (100%)
Alexander Seleznev
8/9 (89%)
Victor Cherepov
9/9 (100%)
5/5 (100%)
Mikhail Rybnikov
9/9 (100%)
Alexander Sharabaika
9/9 (100%)
3/3 (100%)
Andrey Sharonov
9/9(100%)
5/5 (100%)
4/4 (100%)
3/3 (100%)
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Corporate governance
Share capital
Appendices
Performance review
COMPOSITION OF THE BOARD OF DIRECTORS
GRI 2-9, 2-10, 405-1
In accordance with PhosAgro’s
Charter, shareholders with at least
2% of PhosAgro’s voting shares
may submit applications to form
the Board of Directors within
60 days after the end of the calendar
year. Additionally, the current
Board of Directors has the right
to nominate candidates for the new
Board of Directors. In both cases,
the number of nominees may
not exceed the number of Board
members (10). In preparation
for the Annual General Meeting
for 2023, candidates for the new
composition of the Board
of Directors were nominated by both
substantial shareholders and
the Board of Directors. The current
members of the Board of Directors
were elected at the Annual
General Meeting of Shareholders
by cumulative voting, meaning
the candidates with the highest
number of votes were elected.
The Company should aim for a well-
balanced composition of its Board
of Directors, where the qualifications,
experience, knowledge, business
acumen, and independence
of members are harmonised. Board
members should have a recognised,
including among investors and
shareholders, good business
reputation and no conflicts of interest
with PhosAgro.
Characteristics of PhosAgro’s Board
of Directors are benchmarked
against those from the analytical
research by the National Corporate
Secretaries Association (NCSA) Review
of Corporate Governance Practices.
Picture of the Board of Directors1.
MED 37
Board of Directors:
independence, %
Board of Directors: gender
split, %
Board of Directors:
age, %
Board of Directors: length
of continuous service, %
Independent directors3
Executive directors
Non-executive directors
PhosAgro
Studies by
NCSA
50
41
20
39
50
Men
Women
90
10
Above 60 years
50–60 years
40–50 years
50
20
30
<3 years
4–7 years
>7 years
70
10
20
Russian
Federation
place of residence
of all Board members
Board of Directors
independence
in 2021–20242, %
50
39
2023
40
37
2022
70
44
2021
50
41
2024
PhosAgro
NCSA research
1 The research was conducted in 2024 among Russian public companies whose shares or depositary receipts are traded on the A1 quotation list of the Moscow
Exchange. Sample size – 45 companies; data was collected in November 2024. Data sources for 2021, 2022 and 2023: Korn Ferry Russia study, Annual Review
of Russian Board Practices 2021; joint analytical studies by NCSA and KFR for 2022 and 2023, Review of Corporate Governance Practices. Board of Directors Index.
2 PhosAgro data as at the end of each reporting year.
Twice during the reporting year,
the characteristics of candidates,
and subsequently those elected
to the Board, were evaluated
at meetings of the Remuneration
and Human Resources Committee,
as well as by the Board of Directors
itself. The Committee also traditionally
assesses whether a candidate
or elected Board member has
sufficient time available for effective
work on the Board of Directors, taking
into account all of their external
appointments. The Committee’s
findings on these matters
are compiled as part of the documents
for the General Meeting
of Shareholders whenever elections
to the Board are on the agenda.
Each year, the Board of Directors
assesses its composition,
as well as the experience, professional
knowledge, competencies, and skills
of its members to ensure alignment
with the Company’s strategic goals
and objectives. This evaluation, which
also factors in risks, is carried out
by the Board members themselves,
either through self-assessment or with
the involvement of an external expert.
The Chairman of the Remuneration and
Human Resources Committee reports
the results of this evaluation, along with
other pertinent aspects, to the Board
of Directors as part of the Committee’s
quarterly activities report.
In May 2024, PhosAgro’s
Remuneration and Human Resources
Committee reviewed the alignment
of the competencies of the members
of the Board of Directors with
PhosAgro’s needs during its review
of the succession of governance
bodies and key executives.
In the reporting year, there were no
changes in the Board of Directors
composition.
Key competencies of Board members
GRI 2-17
Members of the Board
of Directors
Status
Key competencies (based on professional experience)
Equity interest, %
Information policy and
public relations
Strategy and innovation
Finance and audit
Risk management
Law and corporate
governance
Chemistry and mining
engineering
Personnel management
Corporate governance and
sustainable development
(ESG)2
International cooperation
Victor Cherepov
Chairman,
independent
none
Victor Ivanov
Independent
0.0013
Natalia Pashkevich
Independent1
none
Andrey Sharonov
Independent1
none
Vladimir Trukhachev
Independent
none
Yuri Krugovykh
Executive
none
Alexander Sharabaika
Executive
none
Alexander Seleznev
Executive
none
Siroj Loikov
Executive
none
Mikhail Rybnikov
Executive
0.024
3 On 7 November 2024, the Board of Directors recognised Natalia Pashkevich and Andrey Sharonov as independent, despite their formal affiliation with the Company
after serving for over seven years on its Board of Directors.
4 Including competencies in environment, health and safety.
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Appendices
Performance review
ROLE OF INDEPENDENT DIRECTORS
Independent directors make
a valuable contribution to the Board’s
decision-making as their opinions
rely solely on professional skills and
expertise, as well as a comprehensive
study of the matter. Their position
is unbiased, independent and free
from the influence of other members
of the Board and PJSC PhosAgro’s
management. Five of the ten
members of PhosAgro’s Board
of Directors are independent, and one
of the three committees is chaired
by an independent director.
The independence of Board
members and nominees is assessed
biannually by the Remuneration
and Human Resources Committee.
The assessment is based
on the criteria set out in PhosAgro’s
Regulations on the Board of Directors,
Clause 2.4 of the Code, Clause 2
of Appendix 2 (2.18) and Appendix 4
of the Listing Rules of the Moscow
Exchange, and Clause 10 of the UK
Corporate Governance Code (FRC,
2024). In 2024, the Board recognised
five members of the Board of Directors
(Victor Ivanov, Natalia Pashkevich,
Vladimir Trukhachev, Victor Cherepov,
and Andrey Sharonov) as independent,
including two members (Andrey
Sharonov and Natalia Pashkevich)
who were recognised as independent
despite their formal affiliation with
the Company after serving for over
seven years on its Board of Directors.
D&O LIABILITY INSURANCE
The Company has been taking
out D&O liability insurance every
year since 2012. Under the current
insurance contract (insurance period
from 1 June 2024 to 31 May 2025),
liability for third-party losses incurred
in the exercise of duties by directors
and officers of PhosAgro is covered up
to USD 50 mln in rouble equivalent,
with an extension of the aggregate
liability limit for all independent
directors by USD 2 mln. Apart from
directors’ liability, the above contract
includes the liability of the Company’s
officers.
ASSESSMENT OF THE BOARD OF DIRECTORS’ PERFORMANCE
GRI 2-18
In accordance with the Code
recommendations, PhosAgro
assesses the performance of its Board
of Directors on an annual basis,
with external experts engaged
for this purpose once in three years.
In January 2023, IDA – Association
of Professional Directors conducted
an external assessment of the Board
of Directors’ – performance for 2022.
The external assessment confirmed
that the Board and its committees
were functioning in accordance
with the recommendations
of PhosAgro’s Corporate Governance
Code and the Listing Rules
of the Moscow Exchange. Corporate
governance practices in such areas
as the organisation of activities and
operation of the Board of Directors,
interaction with committees,
the role of the Board Chairman,
the performance of the Corporate
Secretary, and the Company’s ESG
and sustainability activities were
noted as highly effective.
The assessment methodology applied
in 2023 by external experts was used
for the Board’s self-assessment
in 2024.
The self-assessment of the Board’s
performance for 2024 (completed
in early 2025) used the questionnaire
method, with the questions
remaining unchanged compared
to the external assessment
of the Board’s performance for 2022.
Thus, the assessments in different
periods are deemed comparable, and
evolution of results can be analysed.
According to the Board of Directors,
the composition and structure
of the Board comply with PhosAgro’s
Corporate Governance Code and
the Listing Rules of the Moscow
Exchange. The organisation
of the Board’s activities and
its interaction with committees
have been traditionally appreciated.
The consistent improvement
in the Board’s ESG and sustainability
performance is noteworthy.
Interaction with external
stakeholders remains an area
for development. Board members
emphasise the need for a broader
perspective on the Company and
the context in which the Group
operates, including through channels
unrelated to the management team,
such as external experts, partners,
and customers.
Board of Directors’ self-assessment (scale 1 to 4)
Expanding the range of employees
with whom Board members
communicate, including the heads
of PhosAgro Group’s regional entities,
particularly during off-site meetings
of the Board and its committees
2023
2024
2022
Role of the Board
of Directors
Composition and
structure of the
Organisational and
operational aspects of
the Board of Directors
Effectiveness of the
Board of Directors
Strategy and risks
External
stakeholder
engagement
Senior management
engagement
Board committees
engagement
Chairman of the
Board of
Directors
Corporate
Secretary
assessment
ESG and sustaina-
ble development
3.5
3.5
3.6
3.3
3.3
3.3
3.7
3.8
4.0
3.9
3.6
3.5
3.2
3.5
3.3
3.4
3.1
3.3
3.5
3.6
3.6
3.5
3.4
3.4
3.6
3.4
3.4
3.3
3.5
3.7
3.6
3.7
3.7
Integral assessment
3.4 3.5
3.5
!
The assessment identified
the following general areas
of improvement for the Board
of Directors:
Intensifying communication
between Board members
and the Company’s external
partners (primarily customers),
as well as consultants and experts
Enhancing the professional
development of Board members
through lectures, seminars, analysis
of research papers in relevant
fields, and discussions on their
application by the Company
Board members’ participation
in public events organised
by the Company in the regions
where it operates
1
4
2
3
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Share capital
Appendices
Performance review
!
Education
Karaganda State Medical Institute,
Degree in General Medicine
School of Medicine, Boston University
School of Public Health, USA
Euromanagement Institute, Germany
MD, Professor, Member of the Russian
Academy of Medical and Technical
Sciences, Member of the International
Academy of Energy Information
Sciences
MEMBERS OF THE BOARD OF DIRECTORS
Information on the members of the Board of Directors
Year of election: 2022
Date of birth:
15 January 1951
!
Professional experience
2024 – Pr. – NPF Blagosostoyanie,
Advisor
2023 – Pr. – Social Fund of Russia,
Member of the Management Board
2022 – Pr. – PhosAgro, Chairman
of the Board of Directors, Chairman
of the Audit Committee
2022 – Pr. – Kompaniya Ust-Luga,
Member of the Board of Directors
2022–2023 – Kashira Steel Structures
and Boiler Building Plant, Member
of the Board of Directors
2021 – Pr. – RC Novotrans, Advisor
2021 – Pr. – Russian Union
of Industrialists and Entrepreneurs,
Vice President for Social Policy and
Labour Relations
2021–2022 – HC Novotrans, Member
of the Board of Directors
2020 – Pr. – Public Council under
the Ministry of Health of the Russian
Federation, Deputy Chairman
of the Public Council
2019–2024 – NPF Blagosostoyanie,
Chairman of the Human Resources
and Remuneration Committee,
Member of the Strategic Planning
Committee
2018–2024 – NPF Blagosostoyanie,
Member of the Board of Directors
2018–2023 – AB Energo, Member
of the Board of Directors
2016–2023 – Krasnoyarskii Kotelnyi
Zavod, Member of the Board
of Directors
2016–2020 – Public Council under
the Ministry of Health of the Russian
Federation, Member of the Board
of Directors
2015 – Pr. – Pharmaceutical and
Medical Industry Investors Club,
President
2010–2022 – Machine-Building Factory
of Podolsk, Member of the Board
of Directors
2010 – Pr. – National Medical Chamber,
Member of the Council for Professional
Qualifications in Healthcare
2008 – Pr. – Federal Compulsory
Health Insurance Fund, Member
of the Management Board
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
Victor
Cherepov
Chairman of the Board of Directors
at PhosAgro, independent director
Deputy Chairman of the Board
of Directors at PhosAgro, Deputy CEO
for Finance and International Projects
at PhosAgro
Member of the Board of Directors
at PhosAgro, independent director
Year of election: 2022
Date of birth:
25 February 1977
Year of election: 2022
Date of birth:
17 January 1943
!
Professional experience
2024 – Pr. – HC ExOil Group,
Member of the Management Board,
independent director
2022 – Pr. – PhosAgro, Deputy
Chairman of the Board of Directors,
Chairman of the Strategy and
Sustainable Development Committee
2019 – Pr. – PhosAgro, Deputy CEO
for Finance and International Projects
!
Education
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
!
Professional experience
2023 – Pr. – PhosAgro, Member
of the Strategy and Sustainable
Development Committee
2022–2023 – PhosAgro, Member
of the Remuneration and Human
Resources Committee
2022 – Pr. – PhosAgro, Member
of the Board of Directors
!
Education
Tomsk Polytechnic Institute, Degree
in Chemical Process Engineering
Academy of National Economy under
the USSR Council of Ministers
Alexander
Sharabaika
Victor
Ivanov
2018–2022 – PhosAgro, Member
of the Management Board
2017–2019 – Apatit, Member
of the Management Board
2015 – Pr. – PhosAgro-Region, Member
of the Management Board
2014–2019 – PhosAgro, Director
for Economic Affairs and Finance
2014 – Pr. – Apatit, Advisor to the CEO
(part-time)
2017 – Pr. – Reatex, Member
of the Board of Directors
2017 – Pr. – Agrochiminvest, Chairman
of the Board of Directors
2013 – Pr. – Pigment, Member
of the Board of Directors
2012 – Pr. – Russian Chemists Union,
President
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Performance review
Member of the Board of Directors
at PhosAgro, independent director1
Year of election: 2017
Date of birth
5 November 1939
Natalia
Pashkevich
1 On 7 November 2024, the Board of Directors recognised Natalia Pashkevich as independent, despite her formal affiliation with the Company after serving for over
seven years on its Board of Directors.
2 On 7 November 2024, the Board of Directors recognised Andrey Sharonov as independent, despite his formal affiliation with the Company after serving for over
seven years on its Board of Directors.
!
Professional experience
2024 – Pr. – St. Petersburg Mining
University, First Vice Rector
2022 – Pr. – PhosAgro, Member
of the Board of Directors
2021 – Pr. – Priority 2030 Strategic
Academic Leadership Programme,
Head of the programme
!
Education
Leningrad Mining Institute, Degree
in Mining Engineering and Economics
PhD in Economics, professor
2017–2022 – PhosAgro, Member
of the Board of Directors, Member
of the Environmental, Health and
Safety Committee
2009 – Pr. – National Research
University, Head of the development
programme
1999–2024 – St Petersburg Mining
University, First Vice Rector
!
Professional experience
2023 – Pr. – PhosAgro, Member
of the Board of Directors, Member
of the Remuneration and Human
Resources Committee, Member
of the Audit Committee
2020 – Pr. – Russian Professors’
Assembly, Head of Agriculture section
!
Education
Stavropol Agriculture Institute, Degree
in Veterinary
Russian Academy of Sciences, PhD
in Agriculture, PhD in Economics,
Professor
Member of the Board of Directors
at PhosAgro since 24 March 2023,
independent director
Year of election: 2023
Date of birth:
16 July 1955
Vladimir
Trukhachev
2019 – Pr. – Russian State Agrarian
University – Moscow Timiryazev
Agricultural Academy, Rector
2018 – Pr. – Agroeducation Association
of Agrarian Universities of Russia,
Chairman
2018 – Pr. – Member of the Russian
Academy of Sciences
Member of the Board of Directors
at PhosAgro, independent director2
Year of election: 2017
Date of birth:
11 February 1964
Andrey
Sharonov
!
Professional experience
2022 – Pr. – PhosAgro, Member
of the Board of Directors, Member
of the Audit Committee, Member
of the Remuneration and Human
Resources Committee, Member
of the Strategy and Sustainable
Development Committee
2022–2022 – PhosAgro, Chairman
of the Board of Directors
2022 – Pr. – ESG Alliance, CEO
2021 – Pr. – Profilum, Chairman
of the Board of Directors
2021–2022 – Sberbank, Vice President
2020 – Pr. – Foundation
for Development of the Centre
for Elaboration and Commercialisation
of New Technologies (Skolkovo
Foundation), Member of the Board
of Directors, Chairman of the Human
Resources and Compensation
Committee
2019 – Pr. – En+ Group, independent
non-executive director, Member
of the Audit Committee, Chairman
of the Corporate Governance and
Nominations Committee
2019–2022 – Rosseti, Member
of the Board of Directors (independent
director), Member of the Personnel
and Remuneration Committee
2018 – Pr. – Medicina, Chairman
of the Board of Directors
2017–2022 – PhosAgro, Member
of the Board of Directors, Member
of the Audit Committee, Member
of the Remuneration and Human
Resources Committee, Member
of the Sustainable Development
Committee
2016–2022 – SKOLKOVO Endowment
Fund, Director
2016–2022 – Association
for the Development of Moscow
School of Management SKOLKOVO,
Managing Director
2016–2021 – Moscow School
of Management SKOLKOVO, President
2015 – Pr. – Sovcomflot, Chairman
of the Audit Committee, Member
of the Compensation Committee
2014–2022 – International Business
Leaders Forum, Chairman of the Board
of Trustees
2014 – Pr. – MC NefteTransService,
Chairman of the Board of Directors
2014 – Pr. – Sovcomflot, Member
of the Board of Directors (independent
director), Member of the Innovative
Development and Technical Policy
Committee
2009–2020 – National Research
University Higher School
of Economics, Professor (part-time)
at the School of Finance of the Faculty
of Economic Sciences
!
Education
Ufa Aviation Institute, Degree
in Aviation Instrument Making
Institute of Socio-Political Research
under the Russian Academy
of Sciences, PhD in Sociology
Russian Academy of Public
Administration under the President
of the Russian Federation, Degree
in Law
INSEAD international business
school, France/Singapore, Leadership
Excellence through Awareness and
Practice (LEAP) programme
Moscow School of Management
SKOLKOVO, Executive Coaching
for the Development of Executives,
Top Management Teams and
Organisations
Bocconi University, Italy, DBA
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!
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
Bauman Moscow State Technical
University, Degree in Comprehensive
Information Security of Automated
Systems
Member of the Board of Directors, Chief
of Staff for the CEO of PhosAgro
Year of election: 2022
Date of birth:
6 July 1984
Alexander
Seleznev
!
Professional experience
2023 – Pr. – PhosAgro, Chairman
of the Remuneration and Human
Resources Committee
2022 – Pr. – PhosAgro, Member
of the Board of Directors
2020 – Pr. – PhosAgro, First Deputy
CEO
!
Education
Tashkent State University
of Economics, International Economic
Relations
University of Nottingham (UK),
Bachelor’s degree in Business
Management
Diplomatic Academy of the Russian
Ministry of Foreign Affairs, Degree
in World Economy and International
Economic Relations
Member of the Board of Directors,
First Deputy CEO of PhosAgro
Year of election: 2022
Date of birth:
9 September 1972
Siroj
Loikov
2020 – Pr. – Apatit, Advisor to the CEO
(part-time)
2018–2020 – PhosAgro, Deputy CEO
2018–2020 – Apatit, Deputy CEO
(part-time)
2013–2022 – PhosAgro, Member
of the Management Board
Member of the Board of Directors, First
Deputy CEO of PhosAgro, Deputy General
Director for Information Policy of Apatit
Year of election: 2022
Date of birth:
29 May 1955
Yuriy
Krugovykh
!
Professional experience
2022 – Pr. – PhosAgro, First
Deputy CEO of PhosAgro, Member
of the Board of Directors
2022–2022 – PhosAgro, Member
of the Management Board
2015 – Pr. – Apatit, Deputy CEO
for Information Policy (part-time)
2013 – Pr. – PhosAgro-Region, Member
of the Management Board
2010–2022 – PhosAgro, Deputy CEO
!
Education
Moscow University for the Humanities,
Degree in History
!
Professional experience
2022–2023 – PhosAgro, Member
of the Strategy and Sustainable
Development Committee
2022 – Pr. – PhosAgro, Deputy CEO
2022 – Pr. – PhosAgro, Member
of the Board of Directors, Chairman
of the Management Board
2021–2022 – PhosAgro, Deputy CEO
2020–2021 – PhosAgro, Managing
Director
2018 – Pr. – NIUIF, Member
of the Board of Directors
!
Education
Lomonosov Moscow State University,
Master’s degree in Economics
Moscow School of Management
SKOLKOVO, Executive Coaching
for the Development of Executives,
Leadership In Action
Chairman of the Management Board,
Member of the Board of Directors and
CEO at PhosAgro
Year of election: 2022
Date of birth:
30 November 1975
Mikhail
Rybnikov
2018–2022 – Apatit, Adviser to the CEO
(part-time)
2018–2020 – PhosAgro, First Deputy
CEO
2016–2022 – PhosAgro, Member
of the Board of Directors, Chairman
of the Environmental, Health
and Safety Committee, Member
of the Strategy Committee, Member
of the Sustainable Development
Committee
2016 – Pr. – PhosAgro-Region, Member
of the Management Board
2013–2022 – PhosAgro, Member
of the Management Board
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CORPORATE SECRETARY
The Corporate Secretary is responsible
for day-to-day interactions with
the shareholders, coordination
of the Company’s efforts to protect
shareholder rights and interests,
and support provided to the Board
of Directors to ensure its efficient
performance. The Corporate
Secretary is appointed by the Board
of Directors. The operating
procedures of the Corporate Secretary
are governed by the Regulations
on the Corporate Secretary approved
by the Company’s Board of Directors.
!
Professional experience
2023 – Pr. – PhosAgro-Region,
Corporate Governance Advisor
to the CEO (part-time)
2022 – Pr. – PhosAgro, Advisor
to the Deputy CEO for Sales and
Marketing (part-time)
2021 – Pr. – AgroGard-Finance,
Member of the Board of Directors
2017 – Pr. – Apatit, Advisor to the CEO
(part-time)
2016 – Pr. – PhosAgro, Corporate
Secretary
!
Education
St Petersburg State University
of Economics, Degree in Engineering
and Economics
St Petersburg University, Degree
in Law
National Research University Higher
School of Economics, Executive MBA
!
Achievements
Professional award of the Semyonov
National Corporate Secretaries
Association (NCSA) in the Cutting-
Edge Practices in Corporate
Governance for Board of Directors’
Support and Exemplary Disclosure
Leadership categories (2023)
2020 and 2023 Director of the Year
National Award for the best corporate
governance directors / corporate
secretaries.
For the full text
of PhosAgro’s
Regulations
on the Corporate
Secretary, please visit
our website
Year of appointment: 2016
Date of birth:
1 October 1976
Sergey
Samosyuk
COMMITTEES OF THE BOARD OF DIRECTORS
!
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.
!
In the reporting year, the Board
of Directors had three
committees:
Audit Committee
Remuneration and Human
Resources Committee
Strategy and Sustainable
Development Committee
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.
!
At the meeting held on 3 July
2024, the Board of Directors
decided to keep the existing
committee structure.
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Committee members
as at 31 December 2024
For the full text
of PhosAgro’s
Regulations on the Audit
Committee, please visit
the Company’s website
Audit Committee
The Committee’s activities
are governed by the Regulations
on the Audit Committee.
Information on committees’
performance
The Committee’s
statistics
MED 38
Meetings
Including in person
2024
2023
5
2022
6
5
2024
2023
26
2022
35
30
Matters
1 On 7 November 2024, the Board of Directors recognised Andrey Sharonov as independent, despite his
formal affiliation with the Company after serving for over seven years on its Board of Directors.
Key highlights in 2024
In the reporting year, the Committee
focused on the quality, reliability
and timeliness of financial and non-
financial corporate reporting.
Based on the 2024 results,
the Committee is happy to report
an invariably high quality of financial
reporting, observance of previously
established release deadlines, and
the growing scope and improved
quality of non-financial reporting.
Victor Cherepov
Committee Chairman, independent director
Vladimir Trukhachev
Committee member, independent director
Andrey Sharonov
Committee member, independent director1
Victor Cherepov
Chairman of the Audit Committee
The approach to assessing external
audit’s independence and efficiency,
as well as appointment and
re-appointment of the external auditor
is set out in the External Auditor
Selection and Cooperation Policy
of PhosAgro as approved by the Board
of Directors in August 2023.
For more information,
please visit our website
The Committee focused
on the following:
• analysis, review and discussion
of the Company’s annual financial
and operating performance based
on the IFRS consolidated financial
statements, including reasons
for deviations from the previous
periods;
• review of quarterly IFRS condensed
consolidated financial statements,
along with ensuring the adequacy
of disclosures;
• review and discussion of the results
of the annual audit and quarterly
reviews by the external auditor
in accordance with RAS and IFRS;
• review of the external auditor plan
for the assurance of 2024 financial
statements;
• approval of the plan and budget,
and assessment of the Internal Audit
Department’s performance;
• analysis of the Company’s
compliance with Russian
and European legislation
on the protection and use of insider
information;
• analysis of the quality
of the PhosAgro’s corporate
governance, including compliance
with the Corporate Governance
Code;
• discussion with legal and tax
department heads about ongoing
issues that may have an impact
on financial statements.
• development of non-financial
reporting regulations, analysis
of quality and completeness of ESG
reporting in 2023 as compared
to previous periods.
Ongoing tasks
External auditor
All additional services related
and unrelated to audit were duly
approved by the audit partner,
as well as by the Chairman of the Audit
Committee, with due regard
to appropriate independence
considerations.
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The Committee’s
statistics
Meetings
Including in person
2024
2023
4
2022
4
3
2024
2023
13
2022
15
12
Matters
For the full text
of PhosAgro’s Regulations
on the Remuneration
and Human Resources
Committee, please visit
the Company’s website
Remuneration and Human
Resources Committee
The Remuneration and Human
Resources Committee (within
this section, the “Committee”)
is governed by the Regulations
on the Remuneration and Human
Resources Committee.
Committee members
as at 31 December 2024
Twice a year, initially when assessing
nominations to the Board of Directors
and subsequently when appraising
its final composition, the Committee
analyses the adequacy of the Board
members’ skills, experience, expertise,
and business acumen for their
service on the Board of Directors,
assesses the Board members against
independence criteria, and identifies
reasons (if any) that could disqualify
them from serving on the Board
of Directors.
The Committee’s conclusions
with respect to the nominees
to the Board of Directors are included
in the materials for the General
Meeting of Shareholders voting
on the election of Board members.
While preparing the shareholder
information for the Annual General
Meeting, the Committee, among
other factors, analysed the effect
of important external nominations
of independent directors on their
ability to duly discharge their
responsibilities as the Company’s
Board members.
Independent directors’ external
nominations as at 31 December 2024:
• Victor Cherepov: Russian
Union of Industrialists and
Entrepreneurs, State University
of Management, Pharmaceutical
and Medical Industry Investors
Key highlights in 2024
Andrey Sharonov
Committee member, independent director1
Vladimir Trukhachev
Committee member, independent director
Siroj Loikov
Committee Chairman, executive director
The Committee focused
on the following:
• assessment of professional skills,
independence, engagement and
important external nominations
or appointments to the Board
of Directors;
• performance assessment
of the Company’s executive
bodies, other key employees, and
the Corporate Secretary;
• assessment of the incentive system
for the members of executive bodies
and other key employees;
• succession planning for members
of the management bodies and
other key executives;
• assessment of social and employee
training programmes, including
the progress towards a sustainability
target approved in the Strategy
to 2025 – the number of employee
training hours;
Siroj Loikov
Chairman of the Remuneration and
Human Resources Committee
Club, Novotrans Repair Company,
NPF Blagosostoyanie, Kompaniya
Ust-Luga;
• Victor Ivanov: Russian Chemists
Union, AgroChimInvest, Reatex,
Pigment;
• Andrey Sharonov: ESG Alliance,
Sovcomflot, MC NefteTransService,
Profilum, En+ Group, Medicina;
• Natalia Pashkevich: St Petersburg
Mining University, Priority 2030
Strategic Academic Leadership
Programme, National Research
University at the St Petersburg
Mining University;
• Vladimir Trukhachev: Russian State
Agrarian University – Moscow
Timiryazev Agricultural Academy,
Agroeducation Association
of Agrarian Universities, Russian
Academy of Sciences.
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.
The Committee expanded its scope
to include reviewing a report
on the implementation of vocational
guidance projects in the cities where
the Company’s facilities operate.
• review of the outcomes following
the annual staff loyalty and
satisfaction survey, including
progress towards a sustainability
target approved in the Strategy
to 2025 – integrated employee
loyalty index;
• best practice guidance and
analysis following the self-
appraisal of the Board of Directors’
performance.
Ongoing tasks
1 On 7 November 2024, the Board of Directors recognised Andrey Sharonov as independent, despite his
formal affiliation with the Company after serving for over seven years on its Board of Directors.
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The Committee’s
statistics
Meetings
Including in person
2024
2023
3
2022
4
2
2024
2023
19
2022
25
14
Matters
Strategy and Sustainable
Development Committee
The Strategy and Sustainable
Development Committee (within
this section, the “Committee”)
is governed by the Regulations
on the Strategy and Sustainable
Development Committee.
Committee members
as at 31 December 2024
For the full text
of PhosAgro’s Regulations
on the Strategy and
Sustainable Development
Committee, please visit
the Company’s website
As a successor to the Strategy
Committee since 2022, the Committee
focuses on monitoring the progress
against the Strategy to 2025.
The Committee regularly checks such
actual metrics as production volumes,
sales in priority markets, expansion
of sales and transport infrastructure
and ESG metrics, including the targets
of the Climate and Water strategies,
against the goals set by the Strategy.
Monitoring the activities under
the Climate Strategy and
the low-carbon transition plan
continues to be an essential part
of the Committee’s agenda.
The Committee takes over
from the dissolved Sustainable
Development Committee to monitor
and regularly update the action
plan set to deliver on the strategic
sustainability goals.
Sustainability reporting and non-
financial disclosure supervision
were among key agenda items
as well. In April 2024, the Committee
reviewed the status of the 2023
integrated Annual Report, including
the alignment of the material
topics for disclosure approved
by the Committee in November
2023, with the concept of the Report
and the standards applied
in its development. Also, in December
2024, the Committee traditionally
reviewed the quality of disclosure and
feedback on the integrated Annual
Andrey Sharonov
Committee member, independent director1
Alexander Sharabaika
Committee chairman, executive director
Victor Ivanov
Committee member, independent director
1 On 7 November 2024, the Board of Directors recognised Andrey Sharonov as independent, despite his
formal affiliation with the Company after serving for over seven years on its Board of Directors.
• The Committee focused
on the following:
• implementation status
of the Company’s Development
Strategy to 2025;
• creation and analysis of PhosAgro’s
framework for sustainable
development bylaws, control over
their drafting process, relevance,
effectiveness and quality;
• control over progress against
internal sustainability objectives;
• review of sustainability reporting
and supervision of disclosures
on the Company’s sustainability
activities;
• analysis of the Company’s practices
and bylaws in terms of compliance
with sustainable development rating
and competition requirements and
management of efforts to maintain
and improve the Company’s
standing in ratings/competitions;
• monitoring of compliance with
HSE laws and progress in reducing
negative climate impact from
the Company’s production activities;
• assessment of environmental, social,
technological, climate, and industrial
risks associated with the Company’s
production activities;
• review of investigation records
on industrial accidents and
incidents, environmental law
violations, and breach of climate
impact regulations;
• consideration of proposals
on improving working conditions,
complying with safety regulations,
reducing injury frequency rates,
greenhouse gas emissions, pollutant
discharges, waste generation and
disposal, and enhancing energy
efficiency;
• analysis of progress on programmes
and initiatives to introduce resource
and energy efficiency solutions and
climate protection technologies.
Alexander Sharabaika
Chairman of the Strategy and
Sustainable Development Committee
Report, and praised the Company’s
non-financial disclosure practices
in the 2023 Report.
Following proposals received from
the Board of Directors as part
of the external assessment,
the Committee invited other Board
members and relevant experts
to discuss such items as challenges
and trends in agriculture and allied
industries, report on the carbon farm
project in the Vologda region, and
PhosAgro’s innovations.
In the reporting year, the Committee
began reviewing the matters related
to NIUIF’s activities in developing
new products and processes,
as well as cooperation with suppliers
on ESG assessment.
The Committee members also
remained focused on HSE compliance
by reviewing, among others, draft
laws, which are yet to be considered
and approved.
Key highlights in 2024
Ongoing tasks
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Executive bodies
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).
Breakdown and number
of matters considered
For more information, see
the Remuneration Report
section
In May 2024, the number of Management
Board members was approved at three.
Since that date and as at 31 December
2024, members of the Management
Board are Mikhail Rybnikov, Alexei
Sirotenko, and Dmitry Morozov.
INFORMATION ON MEMBERS
OF THE MANAGEMENT BOARD
!
In 2024, the Management
Board held seven meetings
and reviewed ten matters,
most of which were related
to the budget discipline.
At least twice a year, at the end of six
months and full calendar year, the CEO
submits a report on the performance
of the Company’s executive bodies
to the Board of Directors for review
and approval. The report traditionally
includes highlights of the Company’s
production, sales, logistics, and
procurement operations, and data
on progress against key investment
and target projects. It also focuses
heavily on the executive team’s
environmental and occupational
safety performance, social support
for employees, and external social
investments.
p.
276
Year of election: 2022
Date of birth:
30 November 1975
Mikhail
Rybnikov
Member of the Management Board,
Member of the Board of Directors and
CEO at PhosAgro
Revision and approval
of PhosAgro’s quarterly
and annual budgets
Review of operating
and financial reports
Approval of internal
regulations
2024
2023
4
4
2
4
4
10
8
8
2022
4
2
2
!
In the reporting year,
the Company delivered robust
HSE results, ticking off most
relevant KPIs. In addition to that,
PhosAgro continued to honour
all its social commitments
to develop the regions
of operation, keeping its support
for social and charitable
projects unchanged from
the previous year’s record level.
The Board of Directors praised
the performance of executive
bodies and key executives
for their due consideration
of ESG factors and addressing
sustainability issues.
The executive bodies
and management team
of the Company focuses
on PhosAgro’s strategy and
long-term sustainable business
development for the benefit
of shareholders and other
stakeholders by linking
executive remuneration
to the Company’s goals,
including those
in the realm of ESG.
For more information
on Mikhail Rybnikov
see the Board of Directors section
p.
264
Year of election: 2013
Equity interest / stake
of ordinary shares: none
Date of birth:
3 January 1969
!
Professional experience
2017 – Pr. – Apatit, Legal Affairs
Director
2013 – Pr. – PhosAgro, Member
of the Management Board
2010 – Pr. – PhosAgro, Deputy CEO
for Corporate and Legal Affairs
(part-time)
!
Education
Lomonosov Moscow State University,
Degree in Jurisprudence, Lawyer
!
Key competencies
•
Law and corporate governance
Year of election: 2022
Equity interest / stake
of ordinary shares: none
Date of birth:
5 June 1964
!
Professional experience
2022 – Pr. – PhosAgro, Member
of the Management Board
2022 – Pr. – PhosAgro, Advisor
to the CEO (part-time)
2019 – Pr. – Apatit, Director
for Economic Affairs
2019–2022 – PhosAgro, Director
for Economic Affairs
!
Education
Moscow State Institute of International
Relations (Russia), Degree
in International Economic Relations,
Economist for International Economic
Relations
!
Key competencies
•
Strategy and innovation
•
Economics, finance and audit
Alexei
Sirotenko
Member of the Management Board,
Deputy CEO of PhosAgro for Corporate
and Legal Affairs, Legal Affairs Director
at Apatit
Dmitry
Morozov
Member of the Management Board,
Advisor to the CEO of PhosAgro
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REMUNERATION OF THE MANAGEMENT
Remuneration report
BOARD OF DIRECTORS REMUNERATION
GRI 2-19, 2-20
When deciding on the Board
composition, the General Meeting
of Shareholders approves the amount
and the rules for determining
and paying remuneration and
compensation to the Board
members. The Board remuneration
shall be in line with current market
conditions and shall be sufficient
to enable the Company to attract,
motivate and retain highly skilled
professionals to help drive the future
growth and performance.
At the same time, the Company
avoids higher-than-necessary
remuneration. The existing amounts
and rules for determining and paying
remuneration and compensation
to the Board members were
approved by the General Meeting
of Shareholders on 30 June 2024.
Board of Directors’ remuneration, RUB
Full name of the member of the Board of Directors:
2022
2023
2024
Sven Ombudstvedt
12,171,879.00
–
–
James Rogers
10,143,232.50
–
–
Marcus Rhodes
10,143,232.50
–
–
Xavier Rolet
5,717,786.80
–
–
Irina Bokova
5,115,232.97
–
–
Ivan Rodionov
9,581,287.50
5,781,472.50
–
Andrey Sharonov
14,418,297.00
15,805,053.00
16,762,783.5
Victor Cherepov
12,746,475.00
42,146,808.00
44,700,756
Victor Ivanov
5,748,772.50
15,805,053.00
16,762,783.5
Vladimir Trukhachev
–
12,336,169.50
16,762,783.5
Total
85,786,195.77
91,874,556.00
94,989,106.50
Remuneration principles
PhosAgro’s remuneration policy
for executive bodies and other
key employees is determined
by the Board of Directors based
on the recommendations
of the Remuneration and Human
Resources Committee.
The Remuneration and Human
Resources Committee conducts
a detailed bi-annual review
of the incentive system, evaluating
its effectiveness and, if necessary,
making recommendations
for its improvement.
The remuneration
due to the Company’s senior
executives consists of a monthly base
salary plus additional compensation
payable twice a year. Additional
remuneration is linked to achieving
the Company’s KPIs and completeness
and quality of accomplishment
of additional tasks, as determined
by the Board of Directors and
!
All KPIs are aligned with
the Company’s strategic goals
defined in its Strategy to 2025
and oriented towards their
achievement.
The amount of additional
remuneration ranges from 30%
to 150% of the annual base salary and
depends on the level of the position
held and the functional area
of the manager. The Remuneration
and Human Resources Committee
of the Board of Directors, during
its annual evaluation of the incentive
system, ensures an effective
proportion of fixed and variable
components of remuneration.
KPIs for each senior manager are set
annually and take into account
metrics related to operational
efficiency and individual contribution
to the corporate growth and strategic
performance.
To assess the performance
of Phosagro’s CEO, a number
of indicators are used, which
aim to improve the efficiency
of investments and sales, control costs,
and reduce employee injury rates
for the Company and its contractors.
Values of the CEO KPIs in the range
of base case / target / challenge,
as well as their actual values
at the end of the reporting period
are approved by the Chairman
In 2024,
387 officers
of PhosAgro Group were
benchmarked against 2,126 KPIs.
When determining the amount
of additional annual remuneration
for the top management, we look
at the achievement of the EBITDA
target as an integral indicator
of the Company’s performance.
The managers’ performance
is adjusted by the percentage
of delivering on the EBITDA target.
The Company does not provide
for any compensation payable
to managers in case of their
dismissal or voluntary resignation
or the Company’s takeover
or the change of its owner (golden
parachutes). Neither does it use
options, pre-determined unconditional
bonuses or a clawback mechanism.
Number of officers holding
KPIs by year
2024
2023
387
2022
352
307
Commitment
to sustainability
39%
of KPIs
TOP 3 KPI DRIVEN AREAS
Expansion of production capacities
through improved operational efficiency
37%
of KPIs
Development in high-
potential areas
20%
of KPIs
!
KPIs of the CEO and N-1
level managers, including
sustainable development
indicators, are cascaded
down and decomposed into
KPI scorecards of lower-level
management. The indicators
themselves and their weights
are modified depending
on the nature of a particular
manager’s focus area with
due regard to their strategic
fit. Specific KPI wordings and
their weights are established
by PhosAgro’s KPI Committee,
taking into account
the opinion of the KPI holder
and their immediate
supervisor.
of the Board of Directors. Taken
together, these indicators contribute
to the achievement of the Company’s
strategic goals and serve the interests
of shareholders both in terms
of the Company’s development and
in terms of minimising the risks arising
from incentivising excessively risky
management decisions.
the CEO for the reporting period,
as well as the Company’s achievement
of the EBITDA target.
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Appendices
Performance review
!
As can be seen from the above
statistics, PhosAgro Group
is focused on sustainable
development, and the KPI
framework includes the following
indicators:
• reduction of unit emissions
to the atmosphere;
• share of waste recycling, neutrali-
sation, and processing;
• efficiency of the second line
of defence in the area of negative
environmental impact facilities
(discharges, emissions, waste);
• implementation of a programme
to improve the energy efficiency
of Apatit’s facilities and branches;
!
No loans were
extended to members
of the Board of Directors
or the Management Board
as at 31 December 2024.
EXTERNAL AUDITOR’S REMUNERATION
PhosAgro engaged independent
auditor JSC Technologies of Trust –
Audit to audit its IFRS consolidated
financial statements for 2023 and
2024. The actual remuneration paid
to the auditor for the audit of the IFRS
consolidated financial statements
of PJSC PhosAgro and the RAS
accounting statements of the entities
controlled by PJSC PhosAgro
amounted to RUB 28.2 mln for 2024 (vs
RUB 24.9 mln for 2023), net of VAT and
overhead costs.
In addition to that, in 2024 JSC
Technologies of Trust – Audit
and its affiliated companies
performed review of the IFRS
consolidated financial statements
of PJSC PhosAgro and the entities
controlled by it and provided
other services for the total amount
of RUB 25.5 mln (vs RUB 21.4 mln
in 2023), net of VAT. All additional
services provided by the external
auditor were duly approved
by the Chairman of the Audit
Committee of PhosAgro’s Board
of Directors in line with the applicable
independence requirements.
The actual remuneration of JSC Unicon
to audit PhosAgro’s RAS financial
statements for 2024 was RUB 883,700
(vs RUB 752,100 in 2023), net of VAT.
Additionally, in 2023 JSC Unicon
provided tax consulting services
to PJSC PhosAgro and the entities
controlled by it for the total amount
of RUB 200,000 net of VAT.
For information on total remuneration paid to all members
of the Company’s executive bodies over the year with a breakdown
by type of remuneration, see the issuer’s report for the reporting year
Remuneration of members
of executive bodies
The amount of remuneration
and additional compensation
due to PhosAgro’s CEO is regulated
by a contract between them and
the Company, which is signed
by the Chairman of the Board
of Directors. The total remuneration
reflects the CEO’s qualifications
and their personal contribution
to the Company’s financial results.
COMMITMENT TO SUSTAINABILITY: KPIS
• growth in subscriptions
to the ProAgro Lectorium communi-
cation platform (online lectures and
training from leading agricultural
technology experts and consultants);
• work under the Carbon Farm project;
• implementation of key social projects;
• % of completion of the programme
to improve social and working
conditions;
• increase in the number of employ-
ees involved in healthy lifestyle
programmes;
• industrial safety indicator within
the framework of the Safety Culture
Transformation Project;
• percentage of staff covered
with methods and tools imple-
mented under the Safety Culture
Transformation Project;
• zero accidents;
• zero occupational injuries among
the Company and contractor
employees.
• reduction in the number of acci-
dents (incident, fire, ignition, road
traffic accident, railway transport
accident).
Corporate controls
RISK GOVERNANCE AND INTERNAL CONTROL
Organisational structure of the risk management and internal control framework
GRI 2-12
Other structural departments
Internal Audit Department
Risk Management and Internal
Control Department
Audit Committee
Board of Directors
Review Committee
Executive bodies
(Management Board and CEO)
Administrative reporting
Functional reporting
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Appendices
Performance review
The Annual General Meeting
of Shareholders held in June 2024
elected the following members
to the Review Committee:
• Lusine Agabekyan, Deputy Head
of Group Financial Control and
Management Reporting at PhosAgro;
• Ekaterina Viktorova, Deputy Head
of Treasury at PhosAgro;
• Olga Lizunova, head of unit
(functional in other areas), budgeting
office, Economics Department
at Apatit.
The Review Committee’s goals,
objectives and powers are outlined
in the Regulations on the Review
Committee of PhosAgro
as approved by the General Meeting
of Shareholders on 12 May 2011.
The Committee endorsed PhosAgro’s
financial statements for 2024, with
its report dated 4 March 2025 included
in the materials for the shareholders
to prepare for the Annual General
Meeting of Shareholders.
For the full text
of PhosAgro’s
Regulations
on the Review
Committee, please
visit our website
Following the audits, the Internal
Audit Department provides
the Board of Directors and executive
bodies with recommendations and
reports, including, among other
things, the assessment of the current
status, reliability and effectiveness
of the corporate governance, risk
management and internal control
framework.
The Risk Management and Internal
Control Department is charged
with the general supervision of risk
management, including related
activities, and consolidated reporting
to the executive bodies and the Board
of Directors.
As part of their duties, heads of other
organisational units are responsible
for building, documenting,
implementing, monitoring and
developing the risk management
and internal control framework
in their respective functional
areas. The framework requires
the Company’s employees to identify
and assess relevant risks and
efficiently implement the controls and
risk management initiatives.
The risk management and
internal control framework is a set
of organisational measures, methods,
practices and standards of corporate
culture. It also embraces actions
taken by the Company to strike
the right balance between value
growth, profitability and risks,
support sustainable development,
and ensure efficient operations,
protection of its assets, compliance
with applicable laws and internal
documents, along with timely and
accurate reporting.
The Board of Directors defines
the key principles of, and approaches
to, risk management and internal
controls, oversees the Company’s
executive bodies, and performs other
key functions, including setting
the overall risk appetite and reviewing
material risks and ways to manage
them.
The Board’s Audit Committee focuses
on assessing and making proposals
to improve the risk management
and internal controls. On top of that,
its members supervise the preparation
of accounting (financial) statements
and the measures taken to prevent
fraudulent behaviour of the Company’s
employees or third parties.
The Review Committee
elected by the General Meeting
of Shareholders exercises control over
the financial and business operations
of the Company.
The executive bodies establish and
maintain an efficient risk management
and internal control framework.
To this effect, they have set up a Risk
Commission that monitors the status
and effectiveness of risk management
initiatives. The monitoring results serve
as a basis for the relevant proposals
issued by the Commission to executive
bodies and the Board of Directors.
For more information on key
risks and risk management, see
the Strategic Risks section
• adoption of most of the leading
risk management practices such
as alignment with the Company’s
development strategy, risk appetite,
key risk indicators, automation and
robotisation in risk management,
as well as integration into
the Company’s incentive system and
governance framework.
The reporting year saw both
the production sites and PhosAgro
Group as a whole complete a full-
year cycle of risk management and
internal control, including:
• ongoing risk monitoring;
• analysis of key risk indicators;
• development of corrective actions;
• follow-up control and review.
In 2024, the Company sustained
its focus on addressing risks across
certain business areas, including
the continuity of procurement,
logistics, and software and
IT infrastructure operation,
in response to geopolitical
developments. We also continued
work to develop risk management
competencies among managers
at different levels, alongside further
implementation of a risk-oriented
approach within certain functions
and business units.
Plans for 2025
PhosAgro Group looks to maintain and
further develop the existing elements
of its risk management framework
based on best practices, while also
taking into account the changing
external and internal factors.
p.
66–75
In 2024, PhosAgro’s risk management
and internal control framework
performed strongly thanks to timely
identification and assessment
of risks, as well as development and
implementation of risk management
measures. On a quarterly basis,
the Board of Directors reviewed
reports on the management
of PhosAgro’s key risks. PhosAgro’s
executives paid special attention
to managing these key risks. The Risk
Commission continuously monitored
the status of risk management
activities and, when necessary,
initiated changes to improve those
related to key risks.
Development of the risk
management and internal
control framework in 2024
The Company is making a consistent
effort to develop its risk management
and internal control framework.
In February 2025, the Board of Directors
reviewed the results of the framework’s
assessment, which showed that
it was on par with those adopted
by the industry’s leading companies,
including:
• compliance with applicable
regulatory requirements;
RISK MANAGEMENT
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Share capital
Appendices
Performance review
INTERNAL AUDIT
PhosAgro’s Internal Audit Department
assists the Company’s governance
bodies in improving the management
of business processes and enhancing
the risk management and internal
control framework. In doing this, it uses
a risk-oriented approach and works
closely with the Risk Management,
Internal Control and Economic Security
Departments, and the Company
management.
The Company’s internal audit
procedure is defined by the Internal
Audit Department’s management.
Internal audit goals, objectives and powers are outlined
in the Internal Audit Policy as approved by the Board of Directors
on 18 May 2021 (for the full text of the document, please visit
our website)
The 2025 audit plan covers business
processes related to managing
production capacity expansion,
procurement of materials and
equipment, review of repair efficiency,
IT, and corporate governance.
Team development
In order to achieve the strategic
goals in internal audit, we continue
working to develop and diversify
the competencies of our team
by holding regular training sessions,
which focus on sourcing data from
information systems and further
processing and visualising it. Training
initiatives addressing this focus area
are scheduled for 2025.
Self-assessment and
external assessment
The internal audit quality is assured
through regular external independent
assessments and self-assessment.
Audits
Scheduled
Unscheduled
5
20
2023
5
15
2022
5
20
2024
Audit of business processes
The audit plan for the calendar year
is subject to review, discussion and
approval by the Audit Committee
and the Board of Directors. Audits
are performed at the Group level,
as well as at specific subsidiaries
and their standalone business
units. In addition, the Internal
Audit Department monitors
the effectiveness and efficiency
of corrective actions taken
by the management following
the audit, and reports to the Audit
Committee on a quarterly basis and
to the Board of Directors annually.
In 2024, the Internal Audit Department
fully met the annual action plan,
conducting audits of business
processes related to the management
of logistics, repairs, health and safety, IT,
and insider information handling. Based
on the audit findings, recommendations
were issued to improve the efficiency
of logistics and repair management
and enhance health and safety.
The management developed and
approved corrective action plans, with
the progress monitored by the Internal
Audit Department.
EXTERNAL AUDIT
A key element of the Audit
Committee’s operations is ongoing
interaction with external auditors and
development of recommendations
for the Board of Directors regarding
the choice and approval of auditors.
When selecting an auditor,
we evaluate the following factors
in addition to the cost of their services:
• composition of the audit team
(in terms of experience and
qualifications), which should ensure
that the statements are audited
within acceptable deadlines and
with adequate quality;
• the auditor’s independence
evaluated based on a variety
of factors, including assessment
of the scope of non-audit services
provided to us by the candidate
company during the relevant
periods. Each offer from the current
auditor for non-audit services
requires confirmation by the audit
partner to make sure there is no risk
to independence and is submitted
to the Company’s Audit Committee
for consideration and approval.
The Committee consents
to the contract only if the scope
of the non-audit services does
not call into question the ability
to perform the audit service
independently and impartially.
The Committee’s assessment
of the auditor’s independence
is also significantly influenced
by the auditor’s internal procedures
for controlling the impartiality and
professional ethics of the auditor’s
staff, including requirements
for periodic rotation of the audit
partner, training arranged in this
area and the use of specialised
software to perform the respective
audits;
• balance between the benefits
of long-term cooperation with
the auditor and the need for a fresh
look at the Company’s financial
statements and preparation
procedures;
• the auditor’s performance over
the previous period. The Committee
may form its opinion on the quality
of the external auditor’s work
during in-person Committee
meetings, where the external
auditor’s mandatory participants
are a manager and a partner,
as well as during meetings between
the audit team and the Chairman
of the Audit Committee held prior
to the Committee meetings.
PhosAgro’s auditor performs the audit
of its financial and business operations
in compliance with Russian laws
and regulations and the agreement
signed with the Company. The auditor
is approved by the Company’s General
Meeting of Shareholders. The Company
engaged JSC Technologies of Trust –
Audit (14/3 Krzhizhanovsky street,
bldg. 5/1, Moscow, Russia) to audit
its 2024 IFRS financial statements,
while the Company’s 2024 RAS
accounting statements were audited
by JSC Unicon (8 Preobrazhenskaya
Ploshchad, Preo 8 Business Centre,
Moscow, Russia).
The approach to assessing external
audit’s independence and efficiency,
as well as appointment and
re-appointment of the external auditor
is set out in the External Auditor
Selection and Cooperation Policy
of PhosAgro as approved by the Board
of Directors on 30 August 2023.
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, see the Company’s semi-annual reports,
as well as the respective sections of this Report that discusses
the Audit Committee’s activities and the Remuneration Report
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Performance review
INFORMATION SECURITY
GRI 3-3
The Information Security Policy
is the Company’s fundamental
document defining the general
provisions and principles for ensuring
information security. Its adoption
ensues from the risks and hazards
faced by the Group companies
in their operations and the respective
need to respond to the hazards and
minimise the risks.
The Policy states high priority
of information security activities
and sets up its key principles. They
cover the target setting and planning
of information security activities,
as well as their implementation,
quality management and process
improvement. The above principles
define the contents of the lower-level
documents such as the Information
For the full text
of the Information
Security Policy, please
visit the Company’s
website
Security Framework and other internal
documents covering respective
issues. This set of documents reflects
modern solutions and best practices
in information security.
Information security issues
are submitted for consideration
by the Board of Directors every six
months.
INSIDER INFORMATION
For the full text of the Insider Information
Regulations, please visit our website
The list of insider information is available
on our website
PhosAgro has adopted an Insider
Information Regulations compliant with
the Russian laws and the EU Market
Abuse Regulation (MAR).
In accordance with its provisions,
the Corporate Secretary’s
office keeps a list of insiders,
persons discharging managerial
responsibilities (PDMR) and persons
closely associated with them (PCA).
The Regulations define the scope
of responsibilities for each insider
group, which the Corporate
Secretary Office from time to time
communicates to respective persons.
First and foremost, these include
the limitations on the use
of insider information and trading
in the Company’s securities.
Depending on the group, an insider
may be prohibited from such
transactions or obliged to notify
the Company or obtain its consent
for such transactions. Every quarter,
the Corporate Secretary Office checks
the list of shareholders to identify
transactions that may have been
executed in breach of such limitations.
!
In 2024, the Internal Audit
Department held an audit
to evaluate the Company’s
insider information practices,
which revealed the following:
• there are no regulatory fines
and complaints;
• the Company fully discloses
material developments;
• the Company put in place
all the necessary insider
information regulations.
Security personnel who
completed human rights
training, %
2024
2023
100
2022
100
100
!
In 2024, the Company
implemented the following
initiatives to enhance
information security:
Stakeholder engagement
in information security
!
Ensuring information security
is the responsibility of each
employee. To this end,
the Group regularly holds
events to raise employee
awareness of information
security issues and develop
practical skills to deal with
modern threats.
GRI 410-1
All employees of the Economic
Security Department receive training
in terrorism prevention and the main
goals and principles of PhosAgro
Group Code of Ethics.
2024 highlights
In 2024, the Company held drills
on responding to computer incidents
for production staff and employees
in charge of the automated process
control system.
• recording of around 3.6 million
events and avoiding some
1.3 thousand information
security incidents;
• performance monitoring
and support of 15 security
equipment items;
• raising employee awareness
of information security;
• improving processes to comply
with legal requirements: a total
of 59 internal regulations
were issued, with measures
taken to ensure their
implementation;
• enhancing protection
of the automated process
control system: replacement
of foreign firewalls with
domestically developed ones,
organising drills for employees
responsible for the operation
and support of the system;
• improving the management
of access to information
resources, transition
to the shared system
for access rights management;
• improving processes
for managing security events
and incidents, establishing
a 24/7 service at the operations
centre;
• assessing the security
of the Group’s information
resources, putting into action
plans to enhance security
safeguards;
• identifying and blocking
39 fraudulent IT resources
linked to the generation
of fake commercial offers
on behalf of the Group.
Over 13 thousand employees
completed courses and testing
on the corporate platform. Corporate
media published 23 materials
on various aspects of information
security.
The counterparties of the Group
companies that are engaged
in an electronic information exchange
and whose employees have access
to the Group’s internal information
resources contribute to information
security. Dedicated regulations apply
to interactions with external parties,
and contracts contain provisions
on personal data processing,
confidential information, and penalties
in case of violations.
Counterparty employees take
part in training, testing and drills
in information security.
Today information protection goes
beyond workplaces. The Group pays
special attention to creating a stable
social environment in the cities
of operations, and works with local
residents to enhance information
security and cyber hygiene. To that
effect, we conduct regular classes
and interactive events for school
students of various ages and their
parents, organise lectures for regional
administrations, teachers and non-
governmental organisations, and
publish articles in corporate and
local media.
This, together with the use
of modern information security
tools and well-coordinated work
of the department, helped avoid
information security incidents
in 2024 and in previous periods that
could have caused tangible material
or reputational damage.
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Appendices
Performance review
GRI 2-23, 2-24
VALUES, PRINCIPLES, STANDARDS AND NORMS OF BEHAVIOUR
PhosAgro Group has a well-deserved
reputation of a reliable business
partner, attractive employer,
responsible taxpayer, and partner
to the Russian government and
regions where the Company
operates. The trust that our investors,
employees, customers, contractors
and authorities place in the Company
is underpinned by the high ethical
standards that we have adhered
to since PhosAgro’s inception.
We take an integrated approach
to business ethics; in other words,
we believe that ethical considerations
are intrinsic to all aspects of our
operations, from procurement
and teamwork to safety and trade.
We systematically analyse risks in this
area and develop and implement
measures to manage them.
To achieve the above, we need
to ensure that our ethical principles
and standards are clearly defined and
communicated to employees and
counterparties. We also need to have
relevant legal, organisational and
informational mechanisms in place
to support and, more importantly,
monitor compliance with these
principles and standards, which
should also be overseen at the highest
corporate governance level.
By consistently implementing this
approach for years, PhosAgro has
been able to become a company
operating to the highest global
standards in human rights, industrial
safety, environmental protection, anti-
corruption, etc. We recognise that
it is hardly possible to fully eliminate
ethical risks in a large and diverse
organisation that has an almost global
presence. We believe that by adhering
to our ethical principles and standards
we minimise unnecessary risks,
maintain our business reputation and
keep ourselves on track to achieve our
ambitious production and financial
targets for the benefit of PhosAgro’s
shareholders and other stakeholders.
Management approach
PhosAgro Group does its best
to eliminate violations of human
rights, corrupt practices, and other
instances of non-compliance with
corporate ethical principles. This helps
us enhance and protect our reputation
as an honest, open, and bona fide
company among shareholders,
investors, employees, and clients,
while minimising the risk of legal
consequences or sanctions against
the Group companies and their
officers. Elimination of any possible
occurrences bearing the signs
of the above, and strengthening
the commitment of PhosAgro
Group’s employees to the highest
ethical standards are at the forefront
of the Group’s activities.
To ensure PhosAgro Group’s
observance of ethical practices
and generally recognised business
standards, the Company put
in place an anti-fraud and anti-
corruption system fully covering all
areas of operation. We developed
and adopted a set of corporate,
legal, information and educational
measures to strengthen our shared
corporate culture underpinned
by high ethical standards and
maintain an atmosphere of trust,
mutual respect and integrity among
employees. All controlled entities
of PhosAgro approved anti-corruption
standards. Our implemented anti-
corruption measures were in line
with the Anti-Corruption Plan
for 2022–2024.
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 other employees must
comply with. Employees who
have violated them are subject
to the respective sanctions, including
social condemnation, public censure
through publication in the corporate
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 regulations governing the compliance of the Company with the key
principles and standards of ethical conduct are currently in effect:
SASB EM-MM-510a.1, RT-CH-530a.1
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
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 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
Apatit’s Procurement Policy
The Policy defines the goals,
key principles, roles and
employee responsibilities
in procurement
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
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
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 Internal
Checks
Regulations on Inspections
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
Charity Policy
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
Ethical practices
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
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Performance review
Reports received via PhosAgro Hotline by category,
number of reports by category
1 Appendix No. 1 to the Anti-Corruption Policy.
ORGANISATIONAL AND INFORMATIONAL MECHANISMS IN PLACE
TO ENSURE COMPLIANCE WITH ETHICAL PRINCIPLES AND STANDARDS
PhosAgro Group has a well-designed
set of tools in place to ensure
that the Group’s employees and
counterparties are kept abreast of and
trained in ethical business practices
and that cases of potentially unethical
and corrupt behaviour are effectively
reported to relevant officers and units.
Tools to notify the relevant PhosAgro Group executives of any instances of misconduct and
corrupt practices
GRI 2-25, 2-26
Tool
Description
Obligation
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.
Communication
The procedures for reporting and reviewing violation reports are defined in the Anti-Corruption
Policy, the Code of Ethics, the Regulations on Conflict of Interest, and the Anti-Corruption
Agreement1, as well as Apatit’s Order No. 9-U On Improving the Procedure for Reporting
Economic Security Violations to Management of Apatit, its Subsidiaries and Affiliates dated
10 January 2024.
Confidentiality and protection
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.
Advice
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 and/or respective business units
(officers) of the Company in line with their remit.
PhosAgro Hotline
The Hotline is in place to improve the efficiency of measures taken to prevent fraud, corruption,
theft, and conflict of interest, as well as to mitigate compliance and reputational risks resulting
from the violation of professional and ethical standards by PhosAgro Group’s employees. There
are several ways to report to the Hotline:
• by phone at +8 8202 59 32 32;
• by e-mail help@phosagro.ru;
• by regular mail at the following address: Economic Security Department, 75 Severnoye
Highway, Cherepovets, Vologda Region, 162625, Russia.
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.
Reports received
via PhosAgro Hotline
Total reports received
Reports related to corruption
2024
2023
110
6
2022
106
2
111
7
37
2022
110
total
27
20
9
6
5
4 2
35
2024
111
total
16
10
1
7
38
4
Other (non-compliance with sanitary
and epidemiological rules or internal
regulations)
Violations of law and tender procedures
Fraud in foreign and domestic markets
HSE
Corruption
Workplace conditions
Theft
Confidential information
Foreign trading
Violations of human rights
35
2023
106
total
25
15
1
2
23
2 3
!
In 2022–2024, there were
no employee reports
or complaints about violations
of labour practices, human
rights, or discrimination.
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Performance review
The register of submissions received
via the PhosAgro Hotline over the past
three years shows that there has
been no increase in the total number
of reports received. 29% of submissions
came from Company employees,
with their concerns primarily
focused on labour issues, workplace
relationships, and interactions with
business unit management that
all fall under Workplace Conditions
category. 15% of the submissions
were from Company contractors
providing feedback on the potential
inefficiencies in the tender committee
performance. These were typically
submitted following unsuccessful
attempts to participate in bids
for providing services or work. 9%
of the submissions originated from
potential buyers of the Company’s
products (mineral fertilizers),
who had encountered fraudulent
activities by unidentified individuals
falsely representing the PhosAgro
Group brand.
The review of submissions received
in 2024 revealed that in 55 cases,
the information provided could
not be reliably verified. In 41
cases, the reported information
was confirmed, while 15 cases were
subject to ongoing verification
HUMAN RIGHTS
PhosAgro’s Code of Ethics
recognises labour rights
as integral part of human rights.
In its operations, PhosAgro
Group respects labour rights
of employees as provided
by law, recognises the right
of employees to decent
remuneration, helps prevent
any form of discrimination and
forced labour, and supports
employee participation in key
matters pertaining to the Group’s
development.
The Company implements
personnel development
programmes that provide
for employee training and
personal growth and offer social
benefits, incentives, and leisure
and recreation opportunities.
PhosAgro Group appreciates
and encourages diversity among
its employees. We provide
equal opportunities for them
to unlock 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. Each
year, the Board of Directors
and the Remuneration and
Human Resources Committee
reviews human rights, focusing
on staff diversity and equality
of genders.
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.
PhosAgro Group encourages
family generations of employees
and corporate traditions that
help retain teams, improve
labour discipline, performance,
and morale.
The Group supports professional
and personal growth
of its employees. The key
goal here is to create a talent
pool of professionals with
strong knowledge of theory
and practical skills required
to support the operations
of PhosAgro Group’s sites.
The Company’s internal documents
that govern human rights
compliance include the following
documents:
• Code of Ethics (clauses 3.3, 4.1
and 5.2);
• Personnel Management Policy
(clause 5.8);
• Code of Conduct
for Counterparties (in terms
of requirements related
to human rights compliance);
• UK Modern Slavery Act
Transparency Statement.
PhosAgro is committed
to respecting employees’ rights
as required by the International
Bill of Human Rights and the ILO
Declaration on Fundamental
Principles and Rights at Work,
including zero discrimination,
not using child or forced labour,
respecting their right to exercise
freedom of association and
collective bargaining, and creating
a safe and favourable working
environment for both its own
employees and the employees
of its contractors, which are also
expected to comply with such
requirements and regulations.
We expect our employees to treat
their colleagues and everybody
else, including customers,
suppliers and other stakeholders,
with due professionalism, respect
and fairness.
We consider unacceptable
any restriction of employee
rights or freedoms, whether
at workplace or in any other job-
related environment.
Since 2013, we have been
conducting annual employee
surveys enabling each
employee to give feedback
on the performance
of the Company and
its management. Throughout
the history of such surveys,
we have not received
any negative feedback or reports
of violations of human rights.
This clearly indicates that all
obligations to PhosAgro’s staff
are respected and met.
!
PhosAgro’s Internal Audit
Department reports
on a quarterly basis
to the Audit Committee
on all reports received
by the PhosAgro Hotline,
actions taken, the results
of audits and measures
to address violations
of the Group’s ethical
standards. The Chairman
of the Audit Committee
provides this information
to members of PhosAgro’s
Board of Directors.
activities. The number of anonymous
submissions increased 2.5 times (from
9 to 23), but only three of them were
found to be substantiated, all related
to misconduct by managers. In all
cases, discussions were held with
the workforce, and employee surveys
were conducted by the HR and Social
Policy Department.
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ANTI-CORRUPTION
GRI 3-3, MED 41
We consider it unacceptable
for PhosAgro Group’s executives
and employees at all levels
to take advantage of their official
position. To prevent fraud and
corruption, PhosAgro has put
in place its Anti-Corruption Policy
together with a system covering
the entire range of its activities,
and set up a commission on fraud,
corruption, and conflicts of interest.
The Company seeks to identify and
assess corruption risks on a regular
basis to keep track of functions and
positions exposed to such risks.
PhosAgro also regularly prepares
and reviews reports on the progress
of anti-corruption initiatives and
the performance of the anti-fraud and
anti-corruption system.
In addition, we make an ongoing
effort to build a culture of zero
tolerance to corruption underpinned
by high ethical standards,
as well as maintain an atmosphere
of trust, mutual respect and integrity
among employees.
Operations assessed
for risks related
to corruption
When building an effective anti-
corruption policy, it is of utmost
importance to understand what
corruption offences employees may
be inclined to commit depending
on their positions, what business
processes are most likely to involve
the commission of such offences,
what ways or schemes are available
for committing them and what
consequences they may lead to.
For this purpose, the Group has defined
lists of corruption-prone functions
and positions. PhosAgro1 and its key
controlled entity Apatit2 have lists
of positions exposed to corruption
risks. The activities of employees
in these positions are closely monitored
by the Economic Security Department
and the heads of relevant business
units. They evaluate whether these
employees adhere to high ethical
standards and comply with internal
1 Order No. 39 dated 7 April 2022.
2 Order No. 486-U dated 10 December 2022.
PhosAgro’s Board of Directors receives
regular reports on the progress
of anti-corruption initiatives and
the performance of the anti-
fraud and anti-corruption system
in accordance with PhosAgro’s Risk
Management and Internal Control
Policy. In addition, the process
of identifying risks and preventing
wrongdoings is monitored by line
managers on the basis of, among
other things, the Risk Management
Regulations. The corruption risk
is assessed by an independent unit
– the Risk Management Methodology
Department. For 2024, the corruption
risk was assessed as minimal.
Informing, advising, and
training employees
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
thereof.
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.
In 2022–2024
0.3136%
of PhosAgro Group employees
held positions exposed to high
corruption risks
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.
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.
Training methodology
MED 42
Target audience
Managers of levels N-1, N-2, N-3,
N-4, N-5, as well as managers
without assigned levels, white-
collar workers, 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, a student
should 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 anti-
corruption standards adopted
in the Company; responsibility
for failure to comply with anti-
corruption practices
The average duration of anti-
corruption training per
employee across PhosAgro
Group, hours
!
To train and inform employees,
PhosAgro Group annually
develops anti-corruption
courses with final tests, which
are posted on the corporate
intranet portal. The themes
of the courses depend
on the remit (job duties)
of business units (employees)
and the established system
of anti-corruption standards.
0,20
0,24
0,30
2024
2023
2022
anti-corruption regulations that outline
these standards. Specifically, there
is continuous monitoring of compliance
with prohibitions and restrictions
related to anti-corruption efforts,
as well as measures to prevent and
address conflicts of interest.
PhosAgro Group seeks to identify and
assess corruption risks on a regular
basis to update the list of functions
and positions exposed to such
risks. These efforts entail three key
components:
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Performance review
Completed training programmes
Training period
Completed programmes
2022
Main Goals and Principles of the PhosAgro Group Code of Ethics
2023
Training and Testing of Employees of Apatit, its Branches and Companies Managed by Apatit, in Preventing and
Resolving Conflict of Interest
2024
Training and Testing of Apatit Employees on the Principles of the PhosAgro Hotline Operation in line with PhosAgro
Group’s Anti-Fraud and Anti-Corruption Policy
To implement anti-corruption
measures, PhosAgro’s Economic
Security Department drafts an annual
training plan. It includes periodic
updates for employees regarding
existing internal regulations on anti-
corruption, anti-corruption standards,
responsibility for failure to comply with
them, as well as any amendments
and additions to these documents.
The Group’s management
actively engages in these periodic
communications, underscoring
the importance of adhering
to established anti-corruption
standards. PhosAgro Group’s
employees and counterparties have
free and easy access to information
about the Company’s anti-corruption
practices. PhosAgro’s official website
features a special section on anti-
corruption, which contains CEO’s
message about the need to strictly
comply with established anti-
corruption standards, as well as copies
of internal documents aimed
at preventing corruption (the Anti-
Corruption Policy, Code of Ethics,
Regulations on Conflict of Interest
and on PhosAgro Hot Line). Internal
documents are supplemented
by methodological materials
(handouts, presentations),
which explain in easy terms
the anti-corruption policy, standards
of conduct, responsibility, and
provide examples of corruption-
prone situations that employees
may encounter in the course of their
employment.
Every new employee receives
training on the basic requirements
of the Anti-Fraud and Anti-
Corruption Policy, the Code of Ethics,
Regulations on Conflict of Interest and
on PhosAgro Hot Line by watching
a respective video and putting their
signature in briefing log to confirm
the above. Employees’ job descriptions
stipulate their obligation to comply
with anti-corruption standards
and PhosAgro Group’s internal
regulations, as well as to receive
respective training. When employees
perform functions involving a high
risk of corruption, those responsible
for the implementation of the Anti-
Corruption Policy additionally
explain to them the Russian laws
and the Group’s internal policies
on anti-corruption. Employees and
counterparties can inquire about
the Company’s anti-corruption
standards through PhosAgro’s
hotline portal, where they can obtain
professional legal assistance and
expert clarification.
Total number and share of members of governance bodies, employees and business partners
trained in anti-corruption measures, by region
Region
Total number of members
of governance bodies
Share of members of governance
bodies, %
Total number of employees
Share of employees, %
Total number of business partners
Share of business partners, %
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
Saratov
region
283
307
218
33
98
88
852
961
980
67
99
87
104
98
102
100
100
100
Murmansk
region
888
861
939
34
79
82
2,621
2,671
7,096
66
86
77
71
85
88
100
100
100
Moscow
region
87
91
83
39
71
86
225
215
193
61
78
91
898
852
789
100
100
100
Leningrad
region
266
260
21
35
84
88
770
751
128
65
90
74
487
410
435
100
100
100
Vologda
region
943
946
992
28
96
98
3,346
3,415
4,135
72
97
94
167
170
174
100
100
100
Other
132
0
2
32
0
100
408
0
36
68
0
90
1,401
1,386
1,951
100
100
100
Total
2,599
2,465
2,255
32
88
90
8,222
8,013
12,568
68
92
83
3,128
3,001
3,539
100
100
100
Total number and share of members of governance bodies and employees familiarised with
the Company’s Anti-Corruption Policy and procedures, by region
Region
Total number of members
of governance bodies
Share of members
of governance bodies, %
Total number of employees
Share of employees, %
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
Saratov
region
234
307
218
83
98
88
747
961
980
88
99
87
Murmansk
region
718
861
939
81
79
82
2,275
2,671
7,096
87
86
77
Moscow
region
68
91
83
78
71
86
181
215
193
80
78
91
Leningrad
region
209
260
21
79
84
88
636
751
128
83
90
74
Vologda
region
910
946
992
97
96
98
3,206
3,415
4,135
96
97
94
Other
102
0
2
77
0
100
335
0
36
82
0
90
Total
2,241
2,465
2,255
86
88
90
7,380
8,013
12,568
90
92
83
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Performance review
Total number of business
partners registered
on the electronic bidding
platform and acquainted with
anti-corruption standards
2024
2023
3 539
2022
3 001
3 128
PhosAgro Group’s partici-
pation in collective efforts
to combat corruption
PhosAgro Group’s Anti-Corruption
Policy is implemented in accordance
with applicable anti-corruption
laws and international conventions
(including the UN Convention
against Corruption and Russian anti-
corruption laws). PhosAgro Group
actively engages with the business
community to prevent and combat
corruption through participation
in various public associations.
to encompass relationships with
business partners, engagement with
government agencies, procurement
processes through open bidding,
financial controls, and anti-corruption
training for employees.
Anti-Fraud Working Group
of the Russian Association
of Fertilizer Producers (RAFP)
PhosAgro Group actively
participates in the development
and implementation of initiatives
by RAFP’s Anti-Fraud Working
Group, which address illegal activities
conducted by unidentified individuals
misusing the brands of major mineral
fertilizer producers.
Each year, as the preparation
for seasonal fieldwork begins, RAFP
observes a rise in the activities
of unscrupulous organisations
established to mislead consumers
and unlawfully obtain their funds.
To combat this, RAFP proactively
informs agricultural producers about
fraudulent schemes involving supply
contracts for mineral fertilizers that
are never fulfilled – often in the names
of non-existent entities. Additionally,
RAFP clarifies the legitimate
purchasing process through
the official websites of mineral fertilizer
manufacturers, which are listed
on the association’s main online
platform.
Chamber of Commerce and
Industry of Russia (CCI)
As a CCI member, PhosAgro Group
actively engages in a dialogue
between the business community
and the government to forge social,
economic, and industrial policies,
remove administrative hurdles,
improve the business and investment
climate, promote entrepreneurship,
and ensure adherence to ethical
business practices.
Annual anti-corruption legislation
knowledge assessment
Each year, employees of PhosAgro
Group participate in the All-Russian
Anti-Corruption Dictation organised
by the Chamber of Commerce and
of special anti-corruption control and
audit, measures to prevent conflicts
of interest and commercial bribery,
and compensation for material
damage.
The Group is committed
to establishing and maintaining
business relationships with companies
that operate in line with high ethical
standards and combat corruption.
We have improved the registration
process at the electronic bidding
platform (PhosAgro’s official website –
Procurement – Tenders – Supplier
Registration Form). Every potential
supplier of goods or services
interested in establishing a business
relationship with PhosAgro Group
is required to read the relevant internal
regulations (the Company’s Anti-
Corruption Policy, Code of Ethics,
Anti-Fraud and Anti-Corruption
Policy of Apatit, Code of Conduct
for Counterparties, etc.), and familiarise
themselves with information
on PhosAgro’s Hotline. Only after
becoming aware of these standards
may they proceed with the registration
at the electronic bidding platform.
This helps to ensure that all potential
counterparties seeking to do business
with PhosAgro Group are familiar with
the applicable standards.
!
PhosAgro and Apatit are listed
in the Register of Parties
to the Anti-Corruption Charter
of the Russian Business.
!
PhosAgro features in RSPP’s
annual Anti-Corruption Rating,
which assesses compliance
with best business conduct
practices both in Russia and
globally.
PHOSAGRO IS A MEMBER
OF RSPP’S SOCIAL
CHARTER OF THE RUSSIAN
BUSINESS.
Industry. This educational initiative
aims to raise public awareness about
anti-corruption efforts in an engaging
and interactive way. The dictation
is held annually and consists of 40
questions to be completed within
30 minutes. It includes both general
knowledge questions and practical
cases that assess participants’
understanding of anti-corruption
practices. For Company employees,
this serves as an excellent opportunity
to evaluate their understanding
of anti-corruption laws.
To counteract corruption,
we cooperate successfully with state
and local government authorities
and non-governmental organisations
based on the principles of partnership,
mutual respect, trust and
professionalism. We have entered into
a number of long-term agreements
on preventing and detecting crime,
as well as helping to build security
infrastructure through the creation
of police stations at PhosAgro Group’s
production sites. Joint activities
are widely covered in the corporate
media.
Informing business
partners of PhosAgro
Group’s anti-corruption
standards and procedures
SASB EM-MM-510a.1
PhosAgro recognises that corruption
risks can arise not only within but
also outside the Company, primarily
when interacting with counterparties,
including business partners, suppliers,
contractors, etc.
PhosAgro Group has approved
a procedure for incorporating
an anti-corruption clause and
a clause of good faith in every
contract signed by the parties.
These clauses contain clear and
detailed rules and procedures aimed
at preventing corruption, including
special management procedures,
requirements for counterparties, rules
!
We ensure that all potential
counterparties seeking to do
business with the Company
complete anti-corruption
training on the electronic
bidding platform.
Internal investigations into
reported corrupt behaviour
2024
2023
48
2022
36
35
2024
2023
2
2022
3
4
Including corruption-related
violations
Number of internal investigations
into various failures to comply with
internal regulations
Share of business partners
in this category, %
2024
2023
100
2022
100
100
Russian Union of Industrialists
and Entrepreneurs (RSPP)
PhosAgro Group’s participation
in RSPP initiatives is essential
for engaging with government
authorities in the regions where
it operates and for contributing
to the development and
implementation of regional
economic policy programmes and
projects. Through its collaboration
with the RSPP, the Group conducts
monitoring and self-assessment
of its own anti-corruption programmes
and practices. These efforts go beyond
the Company’s internal activities
GRI 205-3
In 2024, a total of 48 internal
investigations were carried out
to address failures in compliance with
the internal regulations. Two of them
pertained to the following alleged
instances of corruption and fraud:
• illegal receipt of RUB 1,669,000
by the head of section
of the Procurement Department
at Apatit in exchange for exercising
their official powers for the benefit
of a contractor (the investigation
was launched in 2023 and is still
ongoing); the internal investigation
has not yet been finalised, with
a criminal case opened under Part
8, Article 204 of the Criminal Code
of the Russian Federation and
investigative actions ongoing;
• illegal receipt of RUB 3.882 mln
by the head of section
of the OHS Department at Apatit
in exchange for unlawful
actions; a criminal case has been
opened under Part 8, Article 204
of the Criminal Code of the Russian
Federation regarding the illegal
receipt of RUB 3,882 mln
by the head of the fire safety
section of the OHS Department
in exchange for unlawful actions;
investigative actions are ongoing,
and the employment contract with
the employee has been terminated.
Incidents of corruption identified
and actions taken
GRI 205-1
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PhosAgro Group’s commitment
to upholding anti-corruption
standards is evidenced, among other
things, through its active engagement
with law enforcement authorities,
which includes:
• publicly pledging to report
to the relevant law enforcement
authorities any instances
or signs of corruption the Group
or its employees become aware of;
• ensuring no retaliation against
employees who report to law
enforcement authorities any actual
or potential corruption incidents that
they become aware of in the course
of their employment.
Confirmed incidents of corruption and actions taken
GRI 205-3
Indicator
2022
2023
2024
Total number of confirmed incidents of corruption
4
5
1
Total number of confirmed incidents in which employees were dismissed or disciplined
for corruption
3
1
0
Total number of confirmed incidents when contracts with business partners were
terminated or not renewed due to violations related to corruption
2
1
0
Public legal cases1 regarding corruption brought against the organisation or its employees
2
3
1
1 All corruption-related cases are included
in the official statistics of law enforcement
agencies.
CONFLICTS OF INTEREST
GRI 2-15
PhosAgro’s Code of Ethics and
Regulations on Conflict of Interest
require employees to report
any potential or actual conflicts
of interest to their line manager
or an anti-corruption officer.
!
As part of the efforts to develop
a framework for preventing,
identifying and resolving
conflicts of interest, three
designated collegial advisory
bodies were established:
Commission on Conflict
of Interest between Employees
of PhosAgro chaired by the CEO
Commission on Fraud,
Corruption and Conflicts
of Interest at PhosAgro-Region
(to act for the downstream
business)
Commission on Fraud,
Corruption and Conflicts
of Interest at Apatit
(to streamline anti-corruption
efforts across the Company’s pro-
duction units)
1
2
3
PhosAgro places a strong emphasis
on timely prevention, identification
and resolution of potential conflicts
of interest. The Company puts in place
verification procedures to be carried
out when personnel decisions
are made and responsibilities
are distributed and requires all
candidates to report personal interest,
if any, at the time they are offered
employment with the Company and
regularly from then onwards.
The Company regularly conducts
anti-corruption review of its internal
regulations, including orders,
directives, contracts, standards, etc.
to detect and remedy factors that may
lead to anti-corruption law breaches
or pose risks to its interests.
The Risk Management and Internal
Control Department, an independent
body, performs annual internal
control exercises to ensure adherence
to corruption prevention procedures
and frameworks, in accordance with
the CEO’s order. The assessment
of Apatit’s anti-corruption efforts
confirmed alignment with
the Anti-Corruption Charter
of the Russian Business.
The Company did not identify
any conflicts of interest related
to joint ownership with suppliers
and other stakeholders; controlling
shareholders; related parties and
their relations, transactions and
outstanding balances.
!
In 2024, a total of 12 potential
conflict of interest situations
were reviewed. Signs
of an actual conflict of interest
were confirmed in three
cases. As a result, one notice
was issued to the management
of a business unit regarding
possible disciplinary action
against an employee, one
employee received a reprimand
for failing to report an existing
conflict of interest, and
one member of the Board
of Directors was required
to resign from their position
in the collective governing
body of a subsidiary.
In the remaining nine cases,
no credible evidence
of a conflict of interest
was found.
LEGAL ACTIONS FOR ANTI-COMPETITIVE BEHAVIOUR, ANTI-TRUST, AND
MONOPOLY PRACTICES
GRI 3-3, 206-1
The Company has approved trade
policies for the sale of phosphate rock
(Apatit’s Marketing Policy for Domestic
Sales of Phosphate Rock) and
for the sale of certain fertilizer grades
to agricultural producers.
There are no pending lawsuits filed
on charges of breach of applicable
antitrust laws, or any similar lawsuits
settled in 2022–2024 to which
the Company could be identified
as a party.
Identification, prevention and settlement of conflicts of interest in the actions of PhosAgro
Group’s employees
Indicator
2022
2023
2024
Total number of conflict of interest cases pertaining to joint ownership with suppliers and other
stakeholders
0
0
0
Total number of conflict of interest cases pertaining to controlling shareholders
0
0
0
Total number of conflict of interest cases pertaining to related parties and their relations,
transactions and outstanding balances
0
0
0
Total number of conflict of interest cases pertaining to membership in the Board of Directors
0
0
1
Total number of potential conflict of interest cases
15
10
12
Number of conflict of interest cases considered at the meeting of the Commission on Fraud,
Corruption and Conflicts of Interest
9
6
9
The respective
documents
are available in the Our
Products section
of the Company’s
website
298
299
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Share performance
in 2024
p.
302
Formula of
confidence
PhosAgro is committed
to delivering consistent
returns for its shareholders.
The Company’s record-
breaking growth in
production, sales volumes,
and investments establishes
a solid foundation for future
dividend payments.
Ammonium polyphosphate
H(NH4PO3)nOH
SHARE
CAPITAL
of investments
(17% vs 2023)
RUB 75 BLN
300 Share capital
302 Ownership structure
302 Share performance
305 Analyst coverage
306 Debt management
308 Dividend policy
310 Relationship with shareholders and investors
311 Information disclosure
Despite the reduction in dividends
per share for 2024, shareholders
firmly endorsed PhosAgro’s
strategic focus on sustainable
development and debt reduction
in the coming year.
300
301
Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
OWNERSHIP
structure
The authorised capital of PhosAgro
as at 31 December 2024 amounted
to RUB 323,750,000 consisting
of 129,500,000 ordinary shares with
a par value of RUB 2.5 per share.
The register of holders of PhosAgro’s
securities is maintained by Joint-Stock
Company Reestr.
Share performance
PhosAgro’s shares are traded on the A1
quotation list of the Moscow Exchange
under the ticker symbol PHOR (ISIN:
RU000A0JRKT8), CFI code: ESVXFR.
Global depositary receipts (GDR;
three GDRs represent one share)
are admitted to listing on the London
Stock Exchange under the ticker
symbol PHOR. On 3 March 2022,
trading in the Company’s GDRs
was suspended.
Shares of PhosAgro are included
in the following indices of the Moscow
Exchange:
• MOEX Russia;
• RTS.
Citigroup Global Markets
Deutschland AG acts as the depositary
for the Company’s GDR programme.
Tickers
Stock exchange
Bloomberg
Reuters
ISIN
Moscow Exchange
PHOR RU
PHOR.MM
RU000A0JRKT8
London Stock Exchange
PHOR LI
PHORq.L
US71922G3083
US71922G4073
Codes for Global Depositary
Receipts
Under Regulation S
Under Regulation S
Under Rule 144A
CUSIP
71922G308
71922G407
71922G100
ISIN
US71922G3083
US71922G4073
US71922G1004
Common code
065008939
065008939
065008939
SEDOL
0B62QPJ1
0B62QPJ1
0B5N6Z48
RIC
PHOSq.L
PHOSq.L
GBB5N6Z48.L
Share performance on MOEX in 2024
For more information,
see the Company’s
website
0
1,400
2,800
4,200
5,600
7,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
!
Key factors affecting
PhosAgro’s share
performance in 2024 include:
Share performance
Item
As at 30 December
2021
As at 30 December
2022
As at 29 December
2023
As at 30 December
2024
Weighted average trading price of a share
on the Moscow Exchange, RUB
5,857.00
6,390.00
6,592.00
6,408.00
GDR price on the London Stock Exchange1, USD
21.58
–
–
–
Market capitalisation2, RUB mln
758,611.00
827,505.00
853,664.00
829,836.00
1
Trading in PhosAgro’s GDRs on the London Stock Exchange was suspended starting 3 March 2022.
2
Based on the weighted average share price.
Strong demand for phosphate
and nitrogen-based fertilizers over
the year
Recovery in fertilizer prices over
the year
Availability of fertilizers to farmers
remaining at an acceptable level
Low fertilizer stocks in the Group’s key
sales markets
Strong operational and financial
performance of the Company and
regular dividend payments
Market expectations regarding
shifts in the fiscal burden on sector
companies following tax legislation
revisions
PhosAgro’s active engagement
with retail investors (who
currently account for over 70%
of trading volume) through
participation in specialised
conferences (Smart Lab, Profit),
webcasts, and investor calls
302
303
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Analyst coverage
PhosAgro is covered by analysts from leading Russian and international brokers.
Company
Analyst
Tel.
ATON
Andrey Lobazov
+7 (495) 213-03-37
Alfa Bank
Boris Krasnojenov
+7 (495) 795-36-12
BCS Global Markets
Kirill Chuyko
+7 (495) 213-15-26
Sberbank CIB
Georgiy Ivanin
+7 (495) 665-56-00
Sinara Financial Corporation
Dmitriy Smolin
+7 (916) 555-79-97
Veles Capital
Vasily Danilov
+7 (495) 258-19-88, ext. 728
Euler
Nikanor Khalin
nikanor.khalin@euler.team
Finam
Alexey Kalachev
+7 (495) 796-93-88, ext. 2357
T-Bank
Alexander Alekseevsky
+7 (993) 960-15-00
Capitalisation vs peers in 2020–2024, %
Global stock indices, %
Moscow Exchange sector indices, %
For more information on our historical share
performance, please visit the Company’s website
EXCERPTS FROM RESEARCH REPORTS COVERING PHOSAGRO SHARES
Fertilizer producers
Rouble depreciation enhances
sector appeal
We have increased our target
price for PhosAgro shares
by 23% to RUB 7,750, reflecting
the downward revision
of the rouble exchange rate
forecast (export revenue
growth) and incorporating
the impact of proposed tax
initiatives affecting mineral
extraction tax and gas excise
tax calculations. The positive
effects of these factors were
partially offset by rising
capital costs. The principal
risk to fertilizer producers’
investment case remains
potential government
intervention to capture
additional revenues generated
from rouble depreciation, which
we have accounted for through
an elevated risk premium. Our
revised target price suggests
PhosAgro offers growth
potential exceeding 30%
alongside a projected dividend
yield of approximately
15% for 2025, prompting
us to upgrade our
recommendation from
“hold” to “buy”.
PhosAgro
Exchange rate and reduced tax
burden already priced in
The elimination of export duties
beginning in 2025 combined
with rouble depreciation
creates favourable conditions
for PhosAgro’s EBITDA
to grow by 46% y-o-y in rouble
terms for 2025. Based on our
projections of modest fertilizer
price normalisation, the current
market environment positions
PhosAgro to generate a foreign
currency free cash flow (FCF)
yield of 14% this year, which
we consider appropriate
at prevailing exchange
rates. We initiate coverage
on PhosAgro with a “hold”
recommendation and a target
price of RUB 7,100 per share
(representing a total return
of 17%).
In our view, PhosAgro
maintains its position
as the world’s most efficient
producer of phosphate
fertilizers.
The recovery of phosphate
fertilizer prices to above
USD 500 per tonne (DAP
Baltic) in the current year has
provided significant support
to the company’s earnings
performance.
The company faces minimum
logistical constraints
by utilising low-tonnage vessels
for its export operations,
including those from “friendly”
states. Brazil and India
represent PhosAgro’s primary
export markets.
Currently, PhosAgro trades
at 5.5x EV/EBITDA 2026P,
offering a substantial discount
compared to global industry
peers and the company’s own
historical valuation multiples.
420%
370%
320%
270%
220%
170%
120%
70%
20%
PhosAgro-MOEX
Yara
Mosaic
MOEX
ICL
Jan
2020
May
2020
Sep
2020
Jan
2021
May
2021
Sep
2021
Jan
2022
May
2022
Sep
2022
Jan
2023
May
2023
Sep
2023
-6
Transport
Financials
Oil & gas
Consumer
Electric utilities
Metals & mining
Telecoms
Chemicals
0
-8
-9
-15
-15
-15
-12
-17
MOEX Russia Index
Bovespa Brazil
-10
19
23
27
5
15
18
Nikkei 225
SP 500
Dubai Financial Market
FTSE 100
Shanghai Composit
Hang Seng Index
304
305
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Debt management
The Company uses a conservative
approach to leverage and believes that
a comfortable net debt/EBITDA ratio
should be below 2x. As at 31 December
2024, the Company’s leverage
was comfortable, with the net debt/
EBITDA ratio standing at 1.84x.
When determining its borrowing
requirements, the Company
assesses the cost of borrowing from
banks and public debt markets,
the amount and maturity available
while striving to ensure that this
fits into the Group’s long-term debt
reduction strategy. The choice
of the currency of borrowings is based
on the availability of currencies and
the structure of the Company’s
revenue, with almost 67% of total
amount denominated in foreign
currency in 2024.
In line with the investment policy
designed to meet PhosAgro’s
investor obligations and strengthen
its investment case, the investment
budget shall not exceed 50%
of planned EBITDA.
One of the events after the reporting
date that had an impact
on the Company’s debt profile
was the January 2025 redemption
of the USD 500 mln Eurobond issue.
This redemption was executed in full
across both the Russian perimeter and
outside of it.
The record high capital investments
and charitable expenses in 2024 did
not affect the Company’s leverage,
which remained comfortably below
the net debt/EBITDA target.
Eurobonds
ISIN
XS2099039542
XS2384719402
Borrower
PJSC PhosAgro
PJSC PhosAgro
Issuer
PhosAgro Bond
Funding Limited
PhosAgro Bond
Funding Limited
Currency
USD
USD
Offering date
23 January 2020
16 September 2021
Maturity date
23 January 2025
(redeemed)
16 September 2028
Issue value, USD mln
500
500
Including replacement bonds, USD mln
RU000A106G31
356.915
RU000A106G56
383.470
RUB-denominated exchange bonds
ISIN
RU000A106516
RU000A109К40
RU000A10A4S7
Series
BO-P01
BO-P02
BO-02-01
Issuer
PJSC PhosAgro
PJSC PhosAgro
PJSC PhosAgro
Currency
RUB
RUB
RUB
Offering date
21 April 2023
18 September
2024
22 November 2024
Maturity date
17 April 2026
8 August 2026
12 November 2026
Coupon rate
9.4%
Key rate + 1.10%
Key rate + 2.00%
Coupon payments
Semi-annual
Monthly
Monthly
Issue value, RUB mln
20,000
35,000
60,000
CNY-denominated exchange bonds
ISIN
RU000A1063Z5
Series
BO-P01-CNY
Issuer
PJSC PhosAgro
Currency
CNY
Offering date
13 April 2023
Maturity date
9 April 2026
Coupon rate
China Loan Prime Rate (LPR 1Y) + 1.2%
Coupon payments
91 days
Issue value, CNY mln
2,000
USD-denominated exchange bonds
ISIN
RU000A108LP2
Series
BO-P01-USD
Issuer
PJSC PhosAgro
Currency
USD
Offering date
6 June 2024
Maturity date
31 May 2029
Coupon rate
6.25%
Coupon payments
91 days
Issue value, USD mln
100
In June, PhosAgro issued a USD 100 mln five-year
exchange-traded bond with settlements in roubles. Despite
heightened volatility in the Russian capital market, which saw
several other issuers cancel their offerings, we managed to reduce
the initial coupon guidance by 25 bps to 6.25%. This transaction
aligned perfectly with PhosAgro’s debt policy of securing financing
in foreign currencies.
In September, we launched our debut issue of rouble-denominated
exchange-traded bonds with a variable coupon, totalling RUB 35 bln
with a two-year maturity. The coupon rate was set as the Bank
of Russia’s key rate plus a spread of 110 bps. Strong investor demand
enabled us to reduce the initial spread guidance by a total of 30 bps,
achieved through three consecutive reductions. This offering became
the largest placement among corporate issuers in the Russian market.
In November, we completed another bond offering – a five-year
exchange-traded bond totalling RUB 20 bln, with a variable coupon
and a put option in two years. The coupon rate was set as the Bank
of Russia’s key rate plus a spread of 200 bps. We secured these terms
thanks to our established track record of successful public offerings
and our premium credit rating.
All offerings were executed on the most favourable terms aligned with
prevailing market conditions. The proceeds were used to support our
investment programmes and refinance our existing loan portfolio.
In 2024, we successfully completed three bond
offerings, generating strong interest from both
institutional and private investors.
Alexander Sharabaika
Deputy CEO for Finance and International Projects
at PhosAgro
306
307
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
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
The General Meeting of Shareholders did not approve profit distribution for 1H 2023, including payment of dividends.
Dividend per
share, RUB
Dividend
per GDR,
RUB
Governance
body deciding
on the payment
of dividends
Date of the General
Meeting of Shareholders
where the relevant
resolution
on the payment
of dividends
was adopted and
No. of the minutes
Dividend payment
timeframes1
2023
1Q 2023
216
72
30 June 2023
No later than 25 July
2023/15 August 2023
Retained earnings
as at 30 June 2022
48
16
30 June 2023
No later than 25 July
2023/15 August 2023
1H 20233
126 (no
resolution
passed)
42
30 September 2023
No later than 25 October
2023/16 November 2023
9M 2023
291
97
14 December 2023
No later than 16 January
2024/6 February 2024
FY 2023
294
98
30 June 2024
No later than 25 July
2024/15 August 2024
2024
1H 2024
15
5
30 June 2024
No later than 25 July
2024/15 August 2024
1H 2024
117
39
11 September 2024
No later than 4 October
2024/25 October 2024
9M 2024
126
42
11 December 2024
No later than 14 January
2024/4 February 2024
Extraordinary General Meeting of Shareholders
Dividend policy
PhosAgro is committed to striking
an effective and reasonable balance
between the payment of dividends
and reinvestment of profit in further
development.
Higher transparency and predictability
of dividend payments are a priority
for the Company as it seeks to ramp
up its growth and strengthen
its investment case.
All resolutions on the payment
of dividends and the timing and
amount of such payment are subject
to approval by the General
Meeting of Shareholders, based
on recommendations provided
by PhosAgro’s Board of Directors.
When preparing recommendations
for the General Meeting
of Shareholders on any dividend
payout (declaration), in addition
to the current financial standing
assessment, the Board of Directors
takes into account the relevant
provisions of PhosAgro’s dividend
policy whereby the amount
of distributed dividends may range
from 50% to over 75% (subject
to PhosAgro’s leverage ratio)
of PhosAgro’s consolidated free cash
flow for the respective year under
IFRS. At the same time, the amount
of declared dividends should not
be lower than 50% of adjusted net
profit for the year under IFRS.
At its meeting on 13 February 2025,
PhosAgro’s Board of Directors
recommended that the Annual General
Meeting of Shareholders approve
the distribution of profits and losses
of PhosAgro for 2024 and use part
of PhosAgro’s net profit for 2024 to pay
out dividends of RUB 171 per ordinary
registered uncertificated share.
The full text
of PhosAgro’s Dividend
Policy is available
on the Company’s
website
Report on dividends declared and paid
Dividend per
share, RUB
Dividend
per GDR,
RUB
Governance
body deciding
on the payment
of dividends
Date of the General
Meeting of Shareholders
where the relevant
resolution
on the payment
of dividends
was adopted and
No. of the minutes
Dividend payment
timeframes1
2021
Retained earnings
as at 31 March 2021
105
35
22 June 2021
No later than 6 July 2021/9
August 2021
Retained earnings
as at 30 June 2021
156
52
13 September 2021
No later than 8 October
2021/29 October 2021
Retained earnings
as at 30 September 2021
234
78
8 December 2021
No later than
21 December
2021/1 February 2022
Retained earnings
as at 31 December 2021
(based on 2021 results)2
390 (no
resolution
passed)
130 (no
resolution
passed)
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
318
106
8 December 2022
No later than 9 January
2023/30 January 2023
FY 2022
465
155
24 March 2023
No later than 18 April
2023/12 May 2023
of 30 June 2022
For
38,088,321
Against
56,540,778
Abstained
0
of 24 March 2023
For
94,790,985
Against
0
Abstained
0
of 30 June 2024
For
76,585,045
Against
555
Abstained
221
Annual General Meeting of Shareholders
!
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
For more information on the Company’s dividend
payment history, please visit the Company’s website
308
309
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Relationship with shareholders
and investors
!
At PhosAgro,
we are committed
to transparency and
consistency, and maintain
an ongoing dialogue with
the investor community This
dialogue is conducted through
all available communication
channels with participation
from PhosAgro Group’s senior
management team.
In 2024, PhosAgro continued
to strengthen its engagement
with retail investors by holding
webinars and conference calls with
assistance of major Russian brokers,
taking part in conferences for retail
investors, and organising site visits
for investors.
For more information
on our initiatives and
their accompanying
presentations, please
visit the Company’s
website
OUR STRONG ENGAGEMENT
PROGRAMME ENABLES US TO:
• Raise investor awareness
of the Company’s potential value
and long-term sustainability
• Update investors on PhosAgro’s
strategic priorities and progress
we have made
• Attract a wider pool of investors
to improve liquidity, share price
and borrowing costs
• Increase our access to a variety
of capital market instruments
• Provide transparency on how our
corporate governance systems
work
• Seek and generate new ideas
through dialogue with investors
• Clarify the Company’s contri-
bution to the UN Sustainable
Development Goals
WHY WE INTERACT
• Provide investment community with
reliable and relevant information
on the key aspects of the Company’s
operations, its development plans
and long-term goals
• Identify risks and opportuni-
ties for the Company as seen
from the perspective of members
of the investment community after
they have analysed the provided
information
• Communicate investor feed-
back 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
HOW WE INTERACT
The Company interacts with
the investment community in a vari-
ety of ways
• Virtual non-deal roadshows covering
general topics for broader investor
audiences and deal roadshows relat-
ing to Eurobond offerings and ESG
disclosures, etc.
• One-on-one calls with investors
• Online investor conferences
• Selective communication with
members of the analyst com-
munity to raise their awareness
of the Company’s operations
• Interaction with credit and ESG rat-
ing agencies
• Regulatory press releases
• Annual General Meetings
of Shareholders and formal
reporting
• Corporate website of the Company
• Corporate pages on investment-fo-
cused social media platforms
• A dedicated in-house investor rela-
tions team
KEY TOPICS AND OUTCOMES
IN 2024
• In 2024, closer contacts
of the Company with
shareholders, debt investors
and analysts (in the form
of one-on-one and online
meetings) were of critical
importance due to the impact
of external challenges.
• The Company’s credit ratings
were affirmed at the highest
level of AAA.
• The Company offered several
exchange bond issues
on the Moscow Exchange
denominated in RUB and USD.
All the issues were rated on par
with the Company’s rating
at AAA.
• 115 publications were made
in line with Russian disclosure
regulations via the Interfax
Corporate Disclosure Centre
Information
disclosure
In its declarations and disclosures,
PhosAgro strictly follows
the requirements imposed by Russian
securities market laws, as well as rules
for the companies traded on the LSE.
The Company publicly discloses all
required information to shareholders
and investors in a timely manner
through authorised newswires,
the corporate website, PhosAgro’s
official disclosure page on the Interfax
portal, and on the LSE webpage.
4Q and FY 2024
13 February 2025
FINANCIAL CALENDAR
FOR 2025
PhosAgro’s official disclosure page on the Interfax portal
The Company’s page
on the official LSE
website
Disclosure
on the Company’s
official website
IV / 2025
I / 2025
II / 2025
III / 2025
Financial results disclosure
1Q 2025
13 May 2025 (TBD)
2Q and 6M 2025
7 August 2025 (TBD)
3Q and 9M 2025
13 November 2025 (TBD)
!
In 2023 and 2024,
the Company exercised
its right to disclose and/
or provide only some
of the information that must
be disclosed and/or provided
under federal laws
On Joint-Stock Companies
and On the Securities
Market, guided by Russian
Government Resolution
No. 1102 dated 4 July 2023
On Details of Disclosure and/
or Provision of Information
that Must be Disclosed
and/or Provided under
Federal Law On Joint-
Stock Companies, and
by the Federal Law
On the Securities Market.
The Company launched its pages
on investment-focused social
networks SmartLab and BCS
Profit, where it publishes
information materials featuring
performance overview, descriptions
of key production processes,
updates on significant corporate
developments, etc. Within
specialised forum discussions,
the Company maintains dialogue with
the investment community, providing
responses to investor inquiries.
310
311
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Sodium tetraborate,
sodium borate
[Lat. Borax Na2B4O7 ]
ADDITIONAL
INFORMATION
314 The consolidated financial statements
355 Additional information to the sections
372 Independent limited assurance report
378 GRI and SASB content index
388 Pilot disclosure in accordance with IFRS S1 and S2
392 Sustainable development indicators content index as per the Order
of the Ministry of Economic Development of Russia
396 Indicators of the responsibility and transparency and sustainable
development vector indices of the Russian Union of Industrialists and
Entrepreneurs (RSPP)
400 Glossary
402 Contacts
312
313
Company profile
Strategic report
Performance review
Corporate governance
Share capital
Appendices
Joint-Stock Company
“Technologies of Trust – Audit”
(“Technologies of Trust – Audit” JSC)
Ferro-Plaza Business Centre,
14/3 Krzhizhanovsky street, bldg. 5/1,
Akademichesky municipal district,
Moscow, Russian Federation, 117218
T: +7 495 967 60 00
www.tedo.ru
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” (PJSC “PhosAgro”) and its subsidiaries (together – the “Group”) at
31 December 2024, and the Group’s consolidated financial performance and consolidated cash flows for the year
then ended in accordance with IFRS Accounting Standards.
What we have audited
The Group’s consolidated financial statements comprise:
•
the consolidated statement of profit or loss and other comprehensive income for 2024;
•
the consolidated statement of financial position at 31 December 2024;
•
the consolidated statement of cash flows for 2024;
•
the consolidated statement of changes in equity for 2024; and
•
the notes to the consolidated financial statements, which include material accounting policy information and
other explanatory information.
Basis for qualified opinion
The Group’s management did not disclose segment information for the year ended 31 December 2024 and for the
year ended 31 December 2023 in the notes to the consolidated financial statements as required by IFRS 8,
Operating Segments. Disclosing the omitted segment information within this Basis for qualified opinion section is
not practicable as it would be unduly voluminous in relation to this auditor’s report.
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.
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Key audit matter
How our audit addressed the key audit matter
Recoverability of deferred tax assets
Refer to Note 16 to the consolidated financial
statements of the Group
In the consolidated statement of financial
position at 31 December 2024, the Group
recognised deferred tax assets of RUB
15,189 million in respect of the Group
companies’ accumulated tax losses carried
forward.
Under IAS 12, Income Taxes, a deferred
tax asset in respect of unused tax losses
shall be recognised to the extent that it is
probable that future taxable profit will be
available against which the unused tax
losses can be utilised.
The Group’s management analysed
probability of receiving future taxable
profits by the Group companies and
concluded that the deferred tax assets are
recoverable. This analysis was based on
management’s plans in respect of
recoverability of the Group’s deferred tax
assets and projections of the future taxable
profit.
We pay special attention to verifying the
existence of sufficient evidence that the
Group’s deferred tax assets are recoverable
as the Group’s management applies
significant judgements and estimates in
respect of the size of the future taxable
profit, timing when it would be available, and
available mechanisms to recover the
deferred tax assets.
We performed the following audit procedures to address the key
audit matter:
•
We received and analysed the management’s plan in respect
of recoverability of the deferred tax assets.
•
We assessed the current status of implementation of the
management’s plan to recover the deferred tax assets.
•
We received the projection of the future taxable profit
prepared by the Group’s management and reviewed, on a
sample basis, the assumptions related to future income and
expenses reflected in the projection, including their
comparison to the industry and market trends. We also
assessed the quality of the Group’s management projections
by comparing the previous periods projections to actual
results.
•
We assessed, on a sample basis, the mathematical accuracy
of calculations applied by the Group’s management.
•
We assessed whether the management used reasonable
judgements related to applying the mechanisms available to
the Group to recover the deferred tax assets, among other
things, by engaging our taxation experts.
•
We analysed written representations of the Group’s
management in relation to their assessment of recoverability
of deferred tax assets.
Acceptability of the management’s current estimates in relation to
the deferred tax assets recoverability for the purpose of the
consolidated financial statements of the Group for 2024 does not
guarantee that future events which are inherently uncertain will not
lead to a significant change in these estimates.
We also assessed a compliance of the information disclosed in
Note 16 to the consolidated financial statements with the IFRS
Accounting Standards disclosure requirements.
Compliance with debt and bonds covenants
Refer to Notes 23 and 27 to the consolidated
financial statements of the Group
At 31 December 2024, the Group had RUB
331,623 million of current and non-current
loans and borrowings. Loan and bonds
agreements include financial and non-
financial covenants, including cross-default
provisions, which in case of breach result in
creditors obtaining the right to claim early
repayment. At 31 December 2024, the
Group did not have a right to defer the
settlement of certain outstanding loans if
creditors would claim early repayment after
the reporting period (Note 27 (e)).
We performed the following audit procedures in respect of the key
audit matter:
•
We updated our understanding of long-term and short-term
debt and bonds covenants, including additions and
amendments.
•
We tested compliance with financial covenants by
recalculating the ratios and comparing our results with the
thresholds set by the loan agreements and issue
prospectuses.
•
We tested, on a sample basis, compliance with non-financial
covenants by inspecting the supporting documents and
confirming the relevant facts.
The consolidated financial statements
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Key audit matter
How our audit addressed the key audit matter
We consider this as a key audit matter due
to the volume of the loans and borrowings
and materiality of the effect which short-term
or long-term classification of loans and
borrowings has on the consolidated
statement of financial position.
•
We reviewed the bank's waiver letter regarding the
identified non-compliance of loan agreement covenant.
•
We verified loans and borrowings classification in the
consolidated statement of financial position, assessed
necessity and completeness of classification of non-current
loans and borrowings as current and additional disclosure
requirements.
Additionally, we assessed whether the information disclosed in
Notes 23 and 27 to the consolidated financial statements is
sufficient in accordance with IFRS 7 “Financial Instruments:
Disclosures” and IAS 1 “Presentation of Financial Statements”
presentation and disclosure requirements.
Other matter – Materiality and Group audit scope
Overview
Materiality
Overall Group materiality: Russian Roubles (“RUB”) 5,450 million, which represents
5% of profit before tax.
Group scoping
•
We conducted audit procedures covering all financial information of the
significant components.
•
Our audit scope addressed 99.9% of the Group’s revenues and 97% of the
Group’s absolute value of underlying profit before tax.
Materiality
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.
Overall Group materiality
RUB 5,450 million (2023: RUB 5,730 million)
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.
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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.
We selected components based on the assessment of risk of material misstatement of the Group’s consolidated
financial statements associated with components, taking into account a relative significance of the components for
the Group. The Group auditor performed further audit procedures for the selected components on their entire
financial information not engaging the component auditors. We also included information systems and tax
specialists in our engagement team.
By performing the above audit procedures at the components, combined with the centralized audit procedures and
audit procedures with respect to the process of preparation of the consolidated financial statements, we have
obtained sufficient and appropriate audit evidence regarding the consolidated financial statements of the Group as
a whole.
Other information
Management is responsible for the other information. The other information comprises Integrated annual report of
PJSC “PhosAgro” for 2024 (but does not include the consolidated financial statements and our auditor’s report
thereon) and the Securities issuer’s report for the 12 months 2024, 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 do 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 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.
If, based on the work we have performed on the Integrated annual report of PJSC “PhosAgro” for 2024 and the
Securities issuer’s report for the 12 months 2024, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
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 Accounting Standards, 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.
Auditor’s responsibilities for the audit of the consolidated financial statements
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.
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5
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.
•
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.
•
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed
for purposes 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 Fegetsin Alexey
Iakovlevich.
13 February 2025
Moscow, Russian Federation
Fegetsin Alexey Iakovlevich 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)
PJSC “PhosAgro”
Consolidated Statement of Profit or Loss and Other Comprehensive Income for 2024
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the
notes to, and forming part of, the consolidated financial statements set out on pages 322 to 354.
RUB million
Note
2024
2023
Revenues
6
507,689
440,304
Cost of Group products sold
7
(293,484)
(235,560)
Cost of products for resale
(12,675)
(16,056)
Gross profit
201,530
188,688
Administrative and selling expenses
8
(41,620)
(32,282)
Taxes, other than income tax
9
(15,489)
(12,779)
Other expenses, net
10
(10,414)
(7,557)
Foreign exchange gain from operating activities, net
27 (c)
6,452
14,686
Operating profit
140,459
150,756
Finance income
11
6,497
3,353
Finance costs
11
(15,694)
(7,881)
Gain from revaluation of investments in equity instruments measured
at fair value through profit or loss
17
137
1,025
Foreign exchange loss from financing activities, net
27 (c)
(22,355)
(32,650)
Profit before tax
109,044
114,603
Income tax expense
12
(24,575)
(28,462)
Profit for the year
84,469
86,141
Attributable to:
Shareholders of the Company
84,430
86,084
Non-controlling interests*
39
57
Basic and diluted earnings per share (in RUB)
22
652
665
Other comprehensive income/(loss)
Items that will never be reclassified to profit or loss
Actuarial gains/(losses)
25
132
(35)
Other comprehensive income/(loss) for the year
132
(35)
Total comprehensive income for the year
84,601
86,106
Attributable to:
Shareholders of the Company
84,562
86,049
Non-controlling interests*
39
57
*Non-controlling interests are the minority shareholders of the subsidiaries of PJSC “PhosAgro”
The consolidated financial statements were approved on 13 February 2025:
Chief executive officer
Deputy CEO for Finance and International Projects
M.K. Rybnikov
A.F. Sharabaiko
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Performance review
PJSC “PhosAgro”
Consolidated Statement of Cash Flows for 2024
The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 322 to 354.
3
RUB million
Note
2024
2023
Cash flows from operating activities
Operating profit
140,459
150,756
Adjustments for:
Depreciation and amortisation
7, 8
36,546
32,282
(Gain)/loss on disposal of property, plant and equipment and intangible
assets
10
(70)
365
Cash flows from operations before changes in working capital
176,935
183,403
(Increase)/decrease in trade and other receivables1
(45,712)
6,063
Increase in inventories, catalysts and non-current spare parts
(13,263)
(11,624)
Increase/(decrease) in trade and other payables1
10,380
(46)
Cash flows from operations before income tax and interest paid
128,340
177,796
Income tax paid
(20,953)
(29,777)
Finance costs paid
(14,670)
(7,378)
Windfall tax security payment
1 (b)
-
(6,355)
Cash flows from operating activities
92,717
134,286
Cash flows from investing activities
Finance income
4,958
2,000
Acquisition of property, plant and equipment and intangible assets
(75,152)
(64,232)
Borrowing cost capitalised paid
13
(4,702)
(1,896)
Loans issued
(2,577)
43
Advances issued for right-of-use assets
(136)
(94)
Other
13,878
101
Cash flows used in investing activities
(63,731)
(64,078)
Cash flows from financing activities
Proceeds from borrowings, net of transaction costs
23
212,336
172,906
Repayment of borrowings
23
(154,961)
(155,306)
Dividends paid to shareholders of the Company
21
(109,169)
(94,487)
Repayment of dividends previously refunded to shareholders of the
Company
(587)
(182)
Refund of dividends paid2
3,132
17,416
Dividends paid to non-controlling interests
-
(131)
Lease payments
24
(1,448)
(1,416)
Cash flows used in financing activities
(50,697)
(61,200)
Net (decrease)/increase in cash and cash equivalents
(21,711)
9,008
Cash and cash equivalents at 1 January
29,163
13,356
Effect of exchange rates fluctuations
2,946
6,799
Cash and cash equivalents at 31 December
20
10,398
29,163
1 Changes in trade and other receivables and changes in trade and other payables include effect of foreign exchange
differences from operating activities.
2 The Group received cash refund from depositories paid as dividends to parties who were entitled to receive them, but
didn’t receive dividends due to reasons beyond the depositories’ control.
PJSC “PhosAgro”
Consolidated Statement of Financial Position at 31 December 2024
The consolidated statement of financial position is to be read in conjunction with the notes to, and forming part of, the
consolidated financial statements set out on pages 322 to 354.
2
RUB million
Note
31 December
2024
31 December
2023
Assets
Property, plant and equipment
13
357,577
308,663
Deferred tax assets
16
14,081
9,751
Non-current spare parts
13,564
8,059
Advances issued for property, plant and equipment
8,818
10,140
Right-of-use assets
14
6,419
7,240
Intangible assets
2,991
2,773
Catalysts
2,987
2,667
Other non-current assets
17
1,310
8,262
Investments in associates and joint ventures
15
715
636
Non-current assets
408,462
358,191
Trade and other receivables
19
104,653
66,274
Inventories
18
56,105
48,468
Cash and cash equivalents
20
10,398
29,163
VAT and other taxes receivable
9,628
7,611
Other short-term assets
17
3,125
5,083
Income tax receivable
99
1,703
Security payment for windfall tax
1(b)
-
6,355
Current assets
184,008
164,657
Total assets
592,470
522,848
Equity
Share capital
21
372
372
Share premium
7,494
7,494
Retained earnings
157,590
144,658
Actuarial losses
(871)
(1,003)
Equity attributable to shareholders of the Company
164,585
151,521
Equity attributable to non-controlling interests
137
84
Total equity
164,722
151,605
Liabilities
Loans and borrowings
23
169,962
161,710
Deferred tax liabilities
16
17,031
13,603
Lease liabilities
24
3,056
2,818
Defined benefit obligations
25
1,029
1,129
Non-current liabilities
191,078
179,260
Loans and borrowings
23
161,661
86,429
Trade and other payables
26
48,394
40,705
Dividends payable
19,779
54,919
Income tax payable
3,128
208
VAT and other taxes payable
2,633
1,954
Lease liabilities
24
1,075
1,413
Windfall tax payable
1(b)
-
6,355
Current liabilities
236,670
191,983
Total equity and liabilities
592,470
522,848
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PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
1
BACKGROUND
(a)
Organisation structure and operations
PJSC “PhosAgro” (the “Company” or the “Parent”) 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 Company’s address
is Leninsky prospekt 55/1 building 1, Moscow, Russian Federation, 119333.
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.
At 31 December 2024 and at 31 December 2023, the Company’s major shareholder is the entity registered
in Russia – ILLC Adorabella holding approximately 23.35% of the ordinary shares. As of 31 December
2024, and 31 December 2023, the Parent does not have the ultimate controlling party in accordance with
the definition 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 29). The Russian economy continues to be negatively impacted by ongoing political
tension in the region and international sanctions against certain Russian companies and individuals.
Geopolitical tension caused by the Ukrainian case in February 2022 continued in 2024. Geopolitical
situation escalation resulted in significant exchange rates fluctuations and increased volatility in financial
and commodity markets. Sanctions and restrictions have been and continue to be imposed towards a
number of Russian entities such as access termination to European and USA financial markets, SWIFT
international system and others. Price cap on Russian oil and gas and embargo on Russian petrochemicals
were introduced. In June 2024, restrictive measures were introduced by the USA against Moscow Stock
Exchange Group, which led to USD and EUR trading interruption and short-term delays in official exchange
rate determination of these currencies against the rouble.
At the end of 2023, Central Bank of Russian Federation increased key rate to 16% per annum with
subsequent increase up to 18% on 29 July 2024, up to 19% on 16 September 2024 and up to 21% on
28 October 2024.
There is no way to determine how long the increased volatility will continue and when the above factors
will stabilise. 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.
The Russian Government Resolution that came into effect starting from 2023 introduced export duties on
mineral fertilisers followed by the subsequent changes to the customs duty calculation method and rates.
From 1 October 2023 to 31 December 2024, the following customs duty rates depending on the official
exchange rate of US dollar to Russian Rouble set by the Central Bank of Russia are applied:
•
on nitrogen-based fertilisers – 7% of their customs value, but not less than RUB 1,100 per tonne, if
the average US dollar exchange rate over the monitoring month is below RUB 80, or 10% of their
customs value, but not less than RUB 1,100 per tonne, if the average US dollar exchange rate over
the monitoring month is above RUB 80;
•
on phosphate-based and compound fertilisers – 7% of their customs value, but not less than
RUB 2,100 per tonne, if the average US dollar exchange rate over the monitoring month is below
RUB 80, or 10% of their customs value, but not less than RUB 2,100 per tonne, if the average US
dollar exchange rate over the monitoring month is above RUB 80.
From 13 December 2024 to 31 December 2024, 7% rate of customs duties was applied. From 1 January
2025 0% customs duties rate depending on the official exchange rate of US dollar to Russian Rouble is
applied due to the termination of the Russian Government Resolution.
On 4 August 2023, the President of Russian Federation signed Federal Law No. 414-FZ On Excess Profits
Tax (the so-called “Windfall Tax”) effective from 1 January 2024. The law introduces 10% tax rate applied
to the excess of the arithmetic average profits for 2021-2022 over the arithmetic average profits for 2018-
2019. In November 2023, the Group made a windfall tax security payment. At 31 December 2023, the
Group's windfall tax liability
was
calculated at 5% tax rate considering security payment of
RUB 6,355 million.
PJSC “PhosAgro”
Consolidated Statement of Changes in Equity for 2024
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 322 to 354.
Note
Attributable to shareholders of the Company
RUB million
Share capital
Share
premium
Retained
earnings
Actuarial
(losses)/
gains
Total
Attributable to non-
controlling
interests
Total equity
Balance at 1 January 2023
372
7,494
190,664
(968)
197,562
158
197,720
Total comprehensive income/(loss)
Profit for the year
-
-
86,084
-
86,084
57
86,141
Actuarial losses
25
-
-
-
(35)
(35)
-
(35)
Transactions with owners recognised
directly in equity
Dividends
21
-
-
(132,090)
-
(132,090)
(131)
(132,221)
Balance at 31 December 2023
372
7,494
144,658
(1,003)
151,521
84
151,605
Balance at 1 January 2024
372
7,494
144,658
(1,003)
151,521
84
151,605
Total comprehensive income/(loss)
Profit for the year
-
-
84,430
-
84,430
39
84,469
Actuarial gains
25
-
-
-
132
132
-
132
Transactions with owners recognised
directly in equity
Dividends
21
-
-
(71,484)
-
(71,484)
-
(71,484)
Increase of non-controlling interests in a
subsidiary
-
-
(14)
-
(14)
14
-
Balance at 31 December 2024
372
7,494
157,590
(871)
164,585
137
164,722
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Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
1
BACKGROUND (CONTINUED)
The security payment and liability for windfall tax were reflected in the consolidated statement of financial
position at 31 December 2023. In January 2024, the Group exercised its right to a tax deduction for the
above security payment, and offset asset and liability for this tax.
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.
2
BASIS OF PREPARATION
(a)
Statement of compliance
These consolidated financial statements have been prepared in accordance with IFRS Accounting
Standards as issued by the International Accounting Standards Board.
The Group additionally prepares IFRS Accounting Standards consolidated financial statements in the
Russian language in accordance with the Federal Law No. 208-FZ On consolidated financial reporting.
(b)
Basis of measurement
The consolidated financial statements are prepared on the historical cost basis, except for financial
instruments initially recognised at fair value with subsequent revaluation through profit or loss.
(c)
Functional and presentation currency
The national currency of the Russian Federation is the Russian Rouble (“RUB”), which is the functional
currency of the Parent and its subsidiaries.
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.
(d)
Use of estimates and judgments
The preparation of consolidated financial statements in accordance with IFRS Accounting Standards
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 (b) (iii) – estimated useful lives of property, plant and equipment;
•
Note 16 - recognition of deferred tax assets: availability of future taxable income for offsetting with
appropriate tax losses.
(e)
Adoption of new and revised standards and interpretations
The following revised standards, issued by the International Accounting Standards Board (IASB) and
approved for use on the territory of Russian Federation, became effective from January 1, 2024, but didn’t
have a material impact on the Group, except for the disclosure of information about the covenants related
to the non-current liabilities in accordance with Amendments Non-current Liabilities with Covenants to IAS
1 (note 23).
•
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, the effective date
subsequently modified to 1 January 2024).
•
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, the
effective date subsequently modified to 1 January 2024).
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
2
BASIS OF PREPARATION (CONTINUED)
•
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).
•
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).
•
Supplier Finance Arrangements – amendments to IAS 7 and IFRS 7 (issued on 25 May 2023 and
effective for annual periods beginning on or after 1 January 2024).
(f)
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 2025 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 (issued on 11 September 2014 and effective for annual periods beginning on
or after a date to be determined by the IASB).
•
Lack of exchangeability – Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates
(issued on 15 August 2023 and effective for annual periods beginning on or after 1 January 2025).
•
IFRS 18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024 and effective
for annual periods beginning on or after 1 January 2027).
•
IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on 9 May 2024 and effective
for annual periods beginning on or after 1 January 2027).
•
Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS
9 and IFRS 7 (issued on 30 May 2024 and effective for annual periods beginning on or after
1 January 2026).
•
Annual Improvements to IFRS Accounting Standards – Volume 11 (issued on 18 July 2024 and
effective for annual periods beginning on or after 1 January 2026).
3
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements.
(a)
Foreign currencies
Foreign exchange gains and losses that relate to loans and borrowings as well as cash and cash
equivalents are presented in the consolidated statement of profit or loss and other comprehensive income
within the line item “Foreign exchange loss/gain from financing activities, net”. All other foreign exchange
gains and losses are presented in the consolidated statement of profit or loss and other comprehensive
income within the line item “Foreign exchange gain/loss from operating activities, net”.
(b)
Property, plant and equipment
(i)
Initial recognition
Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses.
The cost of property, plant and equipment at the date of transition to IFRS Accounting Standards
(January 1, 2005) 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 includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a working condition for their intended use and capitalised borrowing costs. Purchased
software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
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PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
3
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ii)
Subsequent expenditure
Expenses related to current repairs and maintenance of property, plant and equipment are recognised
within profit or loss and other comprehensive income as incurred.
The Group recognises expenses related to current repairs and maintenance of property, plant and
equipment incurred less than once per 12 months with the cost of more than RUB 100 thousand as assets,
and depreciates these assets on a straight-line basis until the next repair.
Expenses related to the replacement of major spare parts and renewal of property, plant and equipment
are capitalised and depreciated in the ordinary course.
(iii)
Depreciation
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, from the month when an asset is completed and ready for use. Land is not depreciated.
Tangible fixed assets are depreciated over the following useful lives:
Buildings
10 to 60 years;
Plant and equipment
5 to 35 years;
Fixtures and fittings
2 to 25 years.
(iv)
Capitalisation of borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily
take a substantial time to get ready for intended use or sale (qualifying assets) are capitalised as part of
the costs of those assets.
Capitalisation of borrowing costs continues up to the date when the assets are substantially ready for their
use or sale.
The Group capitalises borrowing costs that could have been avoided if it had not made capital expenditure
on qualifying assets. Borrowing costs capitalised are calculated at the Group’s average funding cost (the
weighted average interest cost is applied), except to the extent that funds are borrowed specifically for the
purpose of obtaining a qualifying asset. Where this occurs, actual borrowing costs are capitalised.
Borrowing costs capitalised are presented as part of cash flows from investing activities in the consolidated
statement 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 to be obtained after one year, or when the prepayment relates to an asset which will itself be
classified as non-current upon initial recognition.
(c)
Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other
receivables, long-term accounts receivables, cash and cash equivalents, loans and borrowings, and trade
and other payables.
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.
The Group's financial assets measured at amortised cost include trade and other receivables (excluding
receivables measured at fair value under provisionally priced sales agreements), long-term receivables,
cash and cash equivalents, and loans issued.
The Group's financial assets measured at fair value through profit or loss include receivables under
provisional pricing agreements and investments in equity instruments.
The Group's financial liabilities measured at amortised cost include loans and borrowings, lease liabilities,
trade and other payables, dividends payable.
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
3
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d)
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 penalties or that can be
redeemed/withdrawn, subject to the interest income forfeited, are classified as cash equivalents 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 of an early withdrawal.
(e)
Inventories
In the case of manufactured inventories and work in progress, cost includes an appropriate share of
production overheads based on normal operating capacity. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and selling expenses.
The cost of inventory (finished goods and goods for resale) for distribution companies is determined on the
first-in, first-out (FIFO) basis. The cost of inventories for production companies is based on the weighted
average principle and includes expenditure incurred in acquiring the inventories and bringing them to their
existing location and condition.
Spare parts to be used for construction and in repairs capitalised are classified as non-current assets and
are included in line item “Non-current spare parts”.
Catalysts to be used in production during the period of more than 1 year are classified as part of non-current
assets and written-off to the production cost based on the volume of goods produced. Catalysts to be used
in production within 1 year are classified as part of inventories.
(f)
Impairment
Financial assets
The Group recognises loss allowances for expected credit losses (ECLs) on financial assets measured at
amortised cost. The Group estimates loss allowances either based on ECLs that result from default events
possible within 12 months after the reporting date or based on lifetime ECLs that result from all possible
default events over the expected life of a financial instrument.
For purposes of measuring probabilities of default, the Group defines default as a situation when the
exposure meets one or more of the following criteria:
•
the debtor is more than 90 days past due on its contractual payments;
•
the debtor meets the unlikeliness-to-pay criteria listed below:
•
the debtor is insolvent;
•
the debtor is in breach of financial covenant(s);
•
it is becoming likely that the debtor will enter bankruptcy.
The Group estimates loss allowance for trade receivables using the simplified approach in the amount
equal to the lifetime ECL of the financial instrument. To calculate expected credit losses, the Group
segments counterparties based on their geographic location and considers their credit rating, adjusted for
current and future factors specific to the debtors, historical credit loss experience and economic
environment in which they operate.
The Group estimates loss allowances for other financial assets either based on ECLs that result from default
events possible within 12 months after the reporting date or until contract maturity, if shorter, until there has
been a significant increase in credit risk since the initial recognition of the asset. In assessing ECL and
credit risk, the Group considers quantitative and qualitative information and performs an analysis that is
based on the Group's actual credit loss experience and considers forward-looking information. A significant
increase in credit risk is presumed if a debtor is more than 30 days past due.
If credit risk has increased significantly since the initial recognition or there is evidence that a financial asset
is impaired, the expected credit losses for that asset are measured based on the lifetime ECLs. If the fair
value of an impaired financial asset subsequently increases and such increase can be objectively attributed
to an event occurring after the impairment loss was recognised in profit or loss for the period, the amount
written off as a loss is reversed and the reversed amount is recognised in profit or loss for the period.
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PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
3
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g)
Leases
As a lessee
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.
Lease payments included in the measurement of the lease liability comprise fixed payments.
The Group separates lease cash flows into principal lease payments (financing activities) and interest lease
payments (operating activities) in the consolidated statement of cash flows.
Lease liability is measured at amortised cost using the effective interest method. It is revalued when there
is a change in future lease payments arising from adjusted interest rate, extension or termination option
and other events.
Under IFRS 16, right-of-use assets are tested for impairment in accordance with IAS 36 Impairment of
Assets.
For short-term leases (lease term of 12 months or less) and leases of low-value assets the Group has opted
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 comprehensive income.
(h)
Employee benefits
(i)
Defined benefit plans
The Group’s net obligation in respect of defined benefit post-employment plans, including pension plans,
is calculated separately for each plan by estimating the amount of future benefit that employees have
earned in return for their service in the current and prior periods. That benefit is discounted to determine its
present value, and the fair value of any plan assets, if any, is deducted. The discount rate is the yield at the
reporting date on government bonds that have maturity dates approximating the terms of the Group’s
obligations. The calculation is performed using the projected unit credit method.
When the benefits of a plan are improved, the portion of the increased benefit relating to past service by
employees is recognised immediately as an expense in the consolidated statement of profit or loss and
other comprehensive income. To the extent the benefits vest immediately, the expense is recognised
immediately in the consolidated statement of profit or loss and other comprehensive income.
All actuarial gains and losses are recognised in full as they arise in other comprehensive income.
(ii)
Long-term service benefits other than pensions
The Group’s net obligation in respect of long-term service benefits, other than pension plans, is the amount
of future benefits that employees have earned in return for their service in the current and prior periods.
The obligation is calculated using the projected unit credit method and is discounted to its present value
and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on
government bonds that have maturity dates approximating the terms of the Group’s obligations. All actuarial
gains and losses are recognised in full as they arise in other comprehensive income.
(iii)
Defined contribution plans
The Group makes mandatory contributions to the Social Fund of Russian Federation (until January 1, 2023
– Russia’s State pension fund). These amounts are written off as expenses in the period when the Group's
employees provided services related to these accruals.
(i)
Income tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
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 in force or put into force by the reporting date.
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
3
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred tax assets and liabilities are offset if they relate to income taxes levied by the same tax authority
on the same taxable entity.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(j)
Windfall tax
Windfall tax is within the scope of IAS 12 Income taxes, it is recognised as a current income tax and is
subject to respective income tax accounting policy.
Windfall tax is a one-off tax. Windfall tax liability and expenses are recognised in the consolidated financial
statements starting from the moment when the Federal Law has been substantively enacted.
Windfall tax liability and expenses are measured at the amount calculated using the tax rates considering
security payment made.
The security payment and liability for windfall tax were reflected in the consolidated statement of financial
position at 31 December 2023. In January 2024, the Group exercised its right to a tax deduction for the
above security payment, and offset asset and liability for this tax (note 12).
(k)
Revenues
Revenue from contracts with customers is recognised when control of the goods or services is transferred
to a customer. The amount of revenue recognised reflects the consideration the Group expects to be
entitled in exchange for goods or services, taking into account any trade, volume and other discounts.
The selling price for goods or services can be fixed or provisionally priced, with subsequent determination
of the final price within the period established by the contract (provisionally priced contracts). Revenue
under such contracts is initially recognised at a predetermined price. Accounts receivable under
provisionally priced contracts are measured at fair value through profit or loss with appropriate adjustments
recorded in revenue until the final price is determined.
Advances received before the control passes to a customer are recognised as the contract liabilities. The
amount of consideration does not contain a significant financial component as payment terms for the
majority of contracts are less than one year. No information is provided about remaining performance
obligations at the reporting date that have an original expected duration of one year or less, as allowed by
IFRS 15.
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 goods the Group undertakes to provide
delivery and the related delivery services after the transfer of control over the goods to the buyer at the
loading port. Under IFRS 15, these services are a separate performance obligation, which revenue must
be recognised during the period 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.
Group`s revenue include the proceeds from transportation services. Transportation services costs are
mainly represented by logistics costs and included in cost of Group products sold.
(l)
Export customs duties
Starting from January 1, 2023, customs duties were introduced on export revenue of mineral fertilisers
(note 1), which are considered by the Group as an additional fee and are recognised as logistics expenses
as part of the cost of products sold.
(m)
Taxes, other than income tax
The Group presents taxes, other than income taxes in a separate line item in the consolidated statement
of profit or loss and other comprehensive income “Taxes other than income taxes” (note 9). The Group
does not classify these expenses according to their function in the line items of cost of sales, administrative
and selling expenses. According to the Group’s management opinion the presentation in a separate line
item in the consolidated statement of profit or loss and other comprehensive income, transparently and fully
presents information about taxes, other than income tax impact on the financial results of the Group.
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PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
3
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(n)
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 in profit or loss. Dividend income is recognised in profit or loss on the date that
the Group’s right to receive payment is established.
Finance costs comprise interest expense on borrowings, interest expense on lease liabilities, bank fees,
interest expense on defined benefit obligations, securitisation fees, increase in credit loss for financial
investments, share of loss of associates and foreign exchange losses on financing activities.
Foreign currency gains and losses, arising from operations with foreign currency and share of profit and
losses of associates are reported on a net basis.
(o)
Overburden removal expenditure
In open pit apatite rock mining operations, it is necessary to remove the overburden and other waste in
order to access the economically recoverable resources.
According to the Group’s approach to stripping, the ore, which becomes accessible after the overburden
removal, is extracted within no more than four months. Therefore, the stripping ratio (volume of overburden
removed over the volume of resources extracted) is expected to stay relatively constant over the future
periods and stripping costs incurred during the production phase of the open pit mine are recognised in the
profit or loss as incurred.
4
CHANGE IN THE ACCOUNTING POLICY AND RECLASSIFICATIONS
Starting from 1 January 2024, the Group disclosed advances issued and received net of VAT in the
consolidated statement of financial position.
The table below reconciles carrying amounts of assets and liabilities as presented in accordance with the
previous accounting policy and the new amounts after the changes were adopted
Extract from the Consolidated Statement of Financial Position:
RUB million
31 December 2023
(as previously
reported)
Adjustment /
reclassification
31 December 2023
(as presented)
Assets
Advances issued for property, plant and
equipment
10,337
(197)
10,140
Non-current assets
358,388
(197)
358,191
Trade and other receivables
66,362
(88)
66,274
VAT and other taxes recoverable
10,119
(2,508)
7,611
Current assets
167,253
(2,596)
164,657
Total assets
525,641
(2,793)
522,848
Liabilities
Trade and other payables
42,653
(1,948)
40,705
VAT and other taxes payable
2,799
(845)
1,954
Current liabilities
194,776
(2,793)
191,983
Total equity and liabilities
525,641
(2,793)
522,848
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
5
FAIR VALUE DETERMINATION
When measuring a fair value of an asset or a liability, the Group uses market observable data
as far as possible. Fair values are categorised into different levels of a fair value hierarchy based
on the inputs used in the valuation techniques as follows:
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
•
Level 2: inputs other than quoted prices included in Level 1 that are observable, either directly
(i.e. as prices) or indirectly (i.e. derived from prices);
•
Level 3: inputs for the asset and liability that are not based on observable market data (unobservable
inputs).
If inputs used to measure a fair value of an asset or a liability might be categorised into different levels
of fair value hierarchy, then fair value measurement is categorised in its entirety in the same level of the fair
value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.
Fair values have been determined for measurement and / or disclosure purposes based on the methods
described 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 value of financial assets and liabilities represented by short-term loans issued, trade and other
receivables (except for receivables measured at fair value under provisional pricing agreements), cash and
cash equivalents, trade and other payables is categorised into level 3 of fair value hierarchy and
approximate their carrying amounts at the reporting date.
Bonds’ fair value is measured based on quoted market prices for disclosure purposes and categorised into
level 1 of the fair value hierarchy. Loans and borrowings and non-current receivables fair value is
categorised into level 3 of the fair value hierarchy.
(b)
Financial instruments measured at fair value
The fair value of investments measured at fair value through profit or loss and receivables under
provisionally priced sales agreements measured at fair value through profit or loss is determined using the
valuation techniques and categorised into level 3 of the fair value hierarchy.
Investments value measured at fair value through profit or loss is estimated based on the model of
discounted cash flows from the investee's operating activities.
Receivables fair value under provisionally priced sales agreements is calculated based on mineral fertiliser
market prices expected at the date when the price is finalised. These assumptions are based on consensus
prices forecasts prepared by independent analytical agencies, adjusted in accordance with price calculation
formulas specified in existing delivery contracts.
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PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
6
REVENUES
RUB million
2024
2023
Phosphate-based and nitrogen-based products
492,450
421,690
Other
15,239
18,614
Revenues
507,689
440,304
7
COST OF GROUP PRODUCTS SOLD
RUB million
2024
2023
Production expense for Group goods sold
(227,713)
(197,783)
Salaries and social contributions
(35,169)
(26,265)
Depreciation
(33,207)
(29,374)
Materials and services
(26,097)
(22,158)
Repair and maintenance expenses
(19,382)
(15,865)
Potash
(17,574)
(22,444)
Natural gas
(16,948)
(15,033)
Transportation of phosphate rock
(16,739)
(13,468)
Ammonia
(14,343)
(11,533)
Sulphur and sulphuric acid
(12,255)
(11,507)
Electricity
(8,340)
(7,317)
Fuel
(7,215)
(5,754)
Feedstock processing services
(6,269)
(4,341)
Anti-clodding agent
(3,909)
(3,785)
Reagents
(3,564)
(3,020)
Ammonium sulphate
(3,550)
(2,818)
Drilling and blasting operations expenses
(3,152)
(3,101)
Logistics expenses for Group goods sold
(65,771)
(37,777)
Customs duties
(34,139)
(13,207)
Russian Railways infrastructure tariff and operators’ fees
(19,306)
(14,047)
Freight, port and stevedoring expenses
(11,441)
(9,924)
Other services and materials
(885)
(599)
Cost of Group products sold
(293,484)
(235,560)
In 2024, the Group's contributions to Russian Social Fund of RUB 8,203 million (2023: RUB 6,116 million)
were included in salaries and social contributions line.
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
8
ADMINISTRATIVE AND SELLING EXPENSES
RUB million
2024
2023
Administrative expenses:
(35,547)
(27,185)
Salaries and social contributions
(24,260)
(18,684)
Professional services
(2,546)
(2,197)
Security and fire safety services
(2,033)
(1,539)
Depreciation and amortisation
(1,874)
(1,561)
Representative and travel expenses
(1,095)
(831)
Office equipment and stationery
(1,086)
(866)
Repair and maintenance services
(691)
(362)
Insurance
(462)
(174)
Advertising and brand promotion
(400)
(206)
Utilities
(386)
(281)
Other services
(714)
(484)
Selling expenses:
(6,073)
(5,097)
Salaries and social contributions
(3,089)
(2,476)
Depreciation and amortization
(1,465)
(1,347)
Advertising and brand promotion
(456)
(458)
Repair and maintenance services
(438)
(322)
Other services
(625)
(494)
Administrative and selling expenses
(41,620)
(32,282)
In 2024, the Group's contributions to Russian Social Fund of RUB 4,847 million (2023: RUB 3,841 million)
were included in salaries and social contributions line.
9
TAXES, OTHER THAN INCOME TAX
RUB million
2024
2023
Mineral extraction tax
(12,288)
(10,026)
Property tax
(2,296)
(2,030)
Land tax
(372)
(184)
VAT included in expenses
(221)
(206)
Environment pollution payment
(183)
(225)
Using water objects payment
(86)
(67)
Other taxes
(43)
(41)
Taxes, other than income tax
(15,489)
(12,779)
10
OTHER EXPENSES, NET
RUB million
2024
2023
Social expenditures
(11,189)
(7,720)
Increase in credit loss allowance
(302)
(76)
(Increase)/decrease in allowance for inventory write-down
(202)
6
Fines, penalties and compensations received
810
173
Gain on disposal of inventories
454
485
Reversal/(accrual) of contingent liabilities
102
(108)
Gain/(loss) on disposal of property, plant and equipment and intangible assets
70
(365)
Other (expenses)/income, net
(157)
48
Other expenses, net
(10,414)
(7,557)
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PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
11
FINANCE INCOME AND FINANCE COSTS
RUB million
2024
2023
Interest income
5,383
1,967
Unwinding of discount (note 17)
890
1,308
Other finance income
224
78
Finance income
6,497
3,353
Interest expense on borrowings (note 23)
(14,530)
(7,179)
Interest expense on lease liabilities (note 24)
(429)
(284)
Bank fees
(279)
(171)
Interest expense on defined benefit obligations
(130)
(103)
Other finance costs
(326)
(144)
Finance costs
(15,694)
(7,881)
12
INCOME TAX EXPENSE
The Company’s applicable corporate income tax rate is 20% (2023: 20%).
RUB million
2024
2023
Current tax expense
(25,477)
(28,172)
Deferred tax effect from the increase in the tax rate to 25%
370
-
Deferred income tax - origination and reversal of temporary differences
532
6,065
Windfall tax expense
-
(6,355)
Income tax expense
(24,575)
(28,462)
Reconciliation of income tax:
RUB million
2024
2023
Profit before tax
109,044
114,603
Income tax at applicable tax rate
(21,809)
(22,921)
Tax effect of items which are not deductible/taxable
(3,949)
(1,818)
Tax effect on foreign exchange differences on receivables recognised from
disposal of Phosint Group
167
475
Deferred tax effect from the increase in the tax rate to 25%
370
-
Tax effect from reduced tax rate
646
2,157
Windfall tax
-
(6,355)
Income tax expense
(24,575)
(28,462)
On 12 July 2024, Federal Law No. 176-FZ "On amendments to parts one and two of the Tax Code of the
Russian Federation, certain legislation acts of Russian Federation and consideration of certain legislation
acts provisions of Russian Federation to have lost force" was adopted. This Law provides income tax
increase from 20% to 25% since 1 January 2025. At 31 December 2024, the Group revalued deferred tax
assets and liabilities using 25% tax rate. This resulted in increase of deferred income tax by RUB 370 million.
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
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 2023
137,820
234,836
23,414
44,001
440,071
Additions
4,693
11,657
3,235
47,392
66,977
Transfers
6,102
19,577
-
(25,679)
-
Disposals
(1,924)
(6,236)
(451)
(123)
(8,734)
Gross book value at 31 December 2023
146,691
259,834
26,198
65,591
498,314
Additions
5,076
9,757
5,043
63,154
83,030
Transfers from right-of-use assets (note
14)
-
1,973
-
-
1,973
Transfers
18,945
25,883
-
(44,828)
-
Disposals
(2,269)
(6,614)
(272)
(18)
(9,173)
Gross book value at 31 December 2024
168,443
290,833
30,969
83,899
574,144
Accumulated depreciation
at 1 January 2023
(36,708)
(114,368)
(14,473)
-
(165,549)
Depreciation
(8,572)
(21,512)
(2,191)
-
(32,275)
Disposals
1,889
5,844
440
-
8,173
Accumulated depreciation
at 31 December 2023
(43,391)
(130,036)
(16,224)
-
(189,651)
Depreciation
(9,939)
(22,594)
(2,693)
-
(35,226)
Transfers from right-of-use assets (note
14)
-
(529)
-
-
(529)
Disposals
2,105
6,471
263
-
8,839
Accumulated depreciation
at 31 December 2024
(51,225)
(146,688)
(18,654)
-
(216,567)
Net book value at 1 January 2023
101,112
120,468
8,941
44,001
274,522
Net book value at 31 December 2023
103,300
129,798
9,974
65,591
308,663
Net book value at 31 December 2024
117,218
144,145
12,315
83,899
357,577
During the year ended 31 December 2024, the Group capitalised borrowing costs of RUB 4,702 million
(2023: RUB 1,896 million) in the value of property, plant and equipment using the weighted average interest
rate of 6.37 % per year (2023: 4.43% per year).
At 31 December 2024, the most significant construction in progress balances were represented by the
following investment projects:
•
Kirovsk branch of Apatit, JSC: Kirovsk mine extension and modernization of RUB 11,712 million at
31 December 2024 and RUB 18,674 million at 31 December 2023;
•
Kirovsk branch of Apatit, JSC: Rasvumchorrskiy mine extension and modernization of RUB 9,635
million at 31 December 2024 and RUB 6,903 million at 31 December 2023;
334
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
13
PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
•
Kirovsk branch of Apatit, JSC: apatit-nepheline beneficiation plants extension and modernization of
RUB 4,501 million at 31 December 2024 and RUB 3,835 million at 31 December 2023;
•
Balakovo branch of Apatit, JSC: phosphate-based fertilisers facilities modernization of
RUB 11,260 million at 31 December 2024 and RUB 3,211 million at 31 December 2023;
•
Balakovo branch of Apatit, JSC: sulphuric acid facilities extension and modernization of
RUB 7,148 million at 31 December 2024 and RUB 5,605 million at 31 December 2023;
•
Balakovo branch of Apatit, JSC: phosphoric acid facilities support and modernization of
RUB 2,812 million at 31 December 2024 and RUB 1,416 million at 31 December 2023;
•
Balakovo branch of Apatit, JSC: feed monocalcium phosphate production facilities modernization of
RUB 2,362 million at 31 December 2024 and RUB 1,903 million at 31 December 2023;
•
Apatit, JSC, Cherepovets: sulphuric acid facilities support and modernization of RUB 5,756 million
at 31 December 2024 and RUB 1,831 million at 31 December 2023;
•
Apatit, JSC, Cherepovets: phosphoric acid facilities support and modernization of RUB 7,231 million
at 31 December 2024 and RUB 2,909 million at 31 December 2023;
•
Apatit, JSC, Cherepovets: tailing pond modernization for transition to dry method of phosphogypsum
storage of RUB 3,397 million at 31 December 2024 and RUB 2,077 million at 31 December 2023;
•
Apatit, JSC, Cherepovets: ammonia production facilities support and modernization of
RUB 2,276 million at 31 December 202 and RUB 3,198 million at 31 December 2023.
14
RIGHT-OF-USE ASSETS
The Group has the following types of right-of-use assets: railway wagons, production equipment, containers
for bulk cargo, offices. The leases typically run for a period of 5 years, with an option to renew the lease
after that date.
RUB million
Buildings
Plant and
equipment
Fixtures and
fittings
Total
Net book value at 1 January 2023
148
4,129
-
4,277
New lease contracts or modification
on existing lease contracts
216
1,102
2,851
4,169
Depreciation
(63)
(978)
(88)
(1,129)
Disposals
(15)
(62)
-
(77)
Net book value at 31 December 2023
286
4,191
2,763
7,240
New lease contracts or modification
on existing lease contracts
139
1,384
65
1,588
Transfers to property, plant and equipment (note
13)
-
(1,444)
-
(1,444)
Depreciation
(92)
(543)
(198)
(833)
Disposals
(17)
(115)
-
(132)
Net book value at 31 December 2024
316
3,473
2,630
6,419
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
14
RIGHT-OF-USE ASSETS (CONTINUED)
Amounts recognised in the consolidated statement of profit or loss and other comprehensive income:
RUB million
2024
2023
Depreciation expense on right-of-use assets
833
1,129
Expenses relating to leases with variable payments
670
562
Expenses relating to short-term leases
609
387
Interest expense on lease liabilities
429
284
Amounts recognised in the consolidated statement of cash flows:
RUB million
2024
2023
Principal lease payments (note 24)
(1,448)
(1,416)
Expenses relating to leases with variable payments
(670)
(562)
Expenses relating to short-term leases
(609)
(387)
Interest payments (note 24)
(429)
(284)
Total payments
(3,156)
(2,649)
15
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Carrying values of the Group’s investments in associates and joint ventures are as follows:
31 December 2024
31 December 2023
RUB million
Carrying
value
Share of
ownership
Carrying
value
Share of
ownership
JSC Khibinskaya Teplovaya Kompaniya (Russia)
607
50%
534
50%
JSC Giproruda (Russia)
61
25%
62
25%
JSC Soligalichskiy izvestkovyi kombinat (Russia)
47
26%
39
26%
LLC VC Temiryazev
-
48%
-
-
LLC Avrora-Khibiny (Russia)
-
50%
1
50%
Total
715
636
16
DEFERRED TAX ASSETS AND LIABILITIES
(a)
Deferred tax assets and liabilities by type of temporary difference
Deferred tax assets and liabilities are attributable to the following items:
Assets
Liabilities
Net
Assets
Liabilities
Net
RUB Million
31 December 2024
31 December 2023
Property, plant and equipment
75
(25,096)
(25,021)
85
(16,866)
(16,781)
Right-of-use assets and intangible
assets
-
(1,605)
(1,605)
-
(1,448)
(1,448)
Other non-current assets
48
(3,635)
(3,587)
39
(3,147)
(3,108)
Current assets
1,249
(4,706)
(3,457)
716
(2,307)
(1,591)
Liabilities
15,625
(94)
15,531
6,413
(49)
6,364
Tax loss carryforwards
15,189
-
15,189
12,712
-
12,712
Deferred tax assets/(liabilities)
32,186
(35,136)
(2,950)
19,965
(23,817)
(3,852)
Offset
(18,105)
18,105
-
(10,214)
10,214
-
Net deferred tax
assets/(liabilities)
14,081
(17,031)
(2,950)
9,751
(13,603)
(3,852)
336
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
16
DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED)
The deferred tax assets on tax loss carryforwards relate to the Russian entities of the Group. In accordance
with Russian tax legislation tax losses accumulated at 31 December 2024 can be carried forward without
limitation of utilisation period.
Management has developed a tax strategy to utilise the above tax losses. In assessing the tax losses
recoverability, management considers a forecast of the Group’s future taxable profits and the Group’s tax
position to make sure it is probable that relevant taxable profit will be received based on restructuring
arrangements available to the Group to utilise the accumulated losses. During 2024, part of the tax loss
carryforwards with previously recognized deferred tax asset of RUB 1,735 million was utilised against the
taxable income.
At 31 December 2024, the Group revalued deferred tax assets and liabilities using the rate of 25% in
accordance with Federal Law No. 176-FZ "On amendments to parts one and two of the Tax Code of the
Russian Federation, certain legislation acts of Russian Federation and consideration of certain legislation
acts provisions of Russian Federation to have lost force" (note 12).
At 31 December 2024, no deferred tax liability on taxable temporary differences of RUB 101,896 million
from investments in subsidiaries was recognised (31 December 2023: on taxable temporary differences of
RUB 88,627 million), either because the Parent can control recovery period of temporary differences and it
is probable that these temporary differences will not recover in the foreseeable future, or because applicable
income tax rate on intragroup dividends is expected to be 0%.
(b)
Movement in temporary differences during the year
RUB million
31 December
2024
Recognised in
profit or loss
Deferred tax effect
from the increase
in the tax rate to
25%
1 January
2024
Property, plant and equipment
(25,021)
(3,236)
(5,004)
(16,781)
Right-of-use assets and intangible
assets
(1,605)
164
(321)
(1,448)
Other non-current assets
(3,587)
238
(717)
(3,108)
Current assets
(3,457)
(1,175)
(691)
(1,591)
Liabilities
15,531
6,062
3,105
6,364
Tax loss carry-forwards
15,189
(1,521)
3,998
12,712
Net deferred tax (liabilities)/assets
(2,950)
532
370
(3,852)
RUB million
31 December 2023
Recognised in profit
or loss
1 January 2023
Property, plant and equipment
(16,781)
(1,754)
(15,027)
Right-of-use assets and intangible assets
(1,448)
(593)
(855)
Other non-current assets
(3,108)
(2,338)
(770)
Current assets
(1,591)
(795)
(796)
Liabilities
6,364
7,761
(1,397)
Tax loss carry-forwards
12,712
3,784
8,928
Net deferred tax (liabilities)/assets
(3,852)
6,065
(9,917)
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
17
OTHER NON-CURRENT AND CURRENT ASSETS
RUB million
31 December
2024
31 December
2023
Other non-current assets
Investments in equity instruments measured at fair value through profit or loss
1,167
1,025
Loans issued to employees, at amortised cost
99
65
Long-term accounts receivable
30
45
Loans issued to third parties, at amortised cost
9
9
Financial assets, at fair value through profit or loss
5
11
Receivable accrued as a result of Phosint Group disposal
-
7,178
Allowance for expected credit losses
-
(71)
Total other non-current assets
1,310
8,262
Other current assets
Loans issued to third parties, at amortised cost
2,051
59
Interest receivable
466
42
Loans issued to employees, at amortised cost
47
91
Other assets
578
-
Short-term part of receivable accrued as a result of Phosint Group disposal
-
4,959
Allowance for expected credit losses
(17)
(68)
Total other current assets
3,125
5,083
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
2024
2023
Balance at 1 January
12,137
8,454
Unwinding of discount (note 11)
890
1,308
Foreign currency translation difference
834
2,375
Receivables redeemed
(13,861)
-
Balance at 31 December
-
12,137
At 31 December 2024, fair value of the Group’s 5% investment in Phosint Limited (currently PUREFERT
LIMITED) measured at fair value through profit or loss was determined based on the model of discounted
cash flows from the investee’s operating activities and amounted to RUB 1,162 million (at 31 December
2023: RUB 1,025 million).
338
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
18
INVENTORIES
RUB million
31 December
2024
31 December
2023
Raw materials and spare parts
26,450
23,767
Finished goods:
Chemical fertilisers
16,130
12,641
Apatite concentrate
868
698
Other products
1,057
1,066
Work-in-progress:
Chemical fertilisers and other products
8,220
8,250
Chemical fertilisers and other products for resale, purchased from third parties
3,347
1,965
Other goods
331
177
Allowance for inventory write-down
(298)
(96)
Total inventories
56,105
48,468
19
TRADE AND OTHER RECEIVABLES
RUB million
31 December
2024
31 December
2023
Financial assets
Trade accounts receivable
86,958
51,403
Other receivables1
2,983
430
Credit losses allowance
(599)
(474)
Non-financial assets
Advances issued
14,524
9,870
Advances issued on custom duties
654
4,816
Deferred expenses
106
204
Receivables from employees
34
40
Provision for doubtful accounts and expected credit losses allowance
(7)
(15)
Total trade and other receivables
104,653
66,274
1At 31 December 2024, other receivables include advances on export duties of RUB 2,256 million, which
will be fully repaid at 0% export duties rate depending on the official exchange rate of US dollar to Russian
Rouble since 1 January 2025 as a result of the Russian Government Resolution termination.
At 31 December 2024 and at 31 December 2023, the Group performed revaluation of receivables under
provisionally priced sales agreements measured at fair value through profit or loss and recognised an
adjustment within revenue.
The following information shows the movement of the Group's receivables under provisionally priced sales
agreements:
RUB million
2024
2023
Balance at 1 January
33,586
2,711
Receivables recognised
131,612
90,813
Receivables redeemed
(116,746)
(62,097)
Foreign exchange gain, net
5,785
2,233
Gain/(loss) from revaluation at fair value (unrealised)
206
(74)
Balance at 31 December
54,443
33,586
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
19
TRADE AND OTHER RECEIVABLES (CONTINUED)
A 5% increase/(decrease) in forecasted market prices, with all other variables held constant, will lead to
increase/(decrease) fair value of the Group's receivables under provisionally priced sales agreements at
31 December 2024 by RUB 2,002 million (at 31 December 2023: RUB 1,493 million).
The movements of credit losses allowance are as follows:
RUB million
2024
2023
Balance at 1 January
(489)
(492)
Increase in credit losses allowance
(331)
(28)
Reversal of allowance
29
16
Use of allowance
185
15
Balance at 31 December
(606)
(489)
See note 27 (e) for the analysis of overdue trade and other accounts receivable.
20
CASH AND CASH EQUIVALENTS
RUB million
31 December
2024
31 December
2023
Cash in bank
10,139
9,095
Call deposits
251
20,058
Petty cash
8
10
Total cash and cash equivalents
10,398
29,163
At 31 December 2024 and 31 December 2023, the most significant cash and cash equivalent balances
(more than 95%) are kept with large Russian banks rated at АА+ and ААА by independent Russian rating
agencies (AСRA, Expert RA).
21
EQUITY
(a)
Share capital
At 31 December 2024 and 31 December 2023, 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.
At 31 December 2024 and 31 December 2023, the number of ordinary shares authorised for additional
issue is 994,977,080, with a par value of RUB 2.5 per share.
(b)
Dividend policy
The Group’s dividend policy is based on the following principles:
•
balanced approach to the distribution of profits between shareholders and investment needs of the
Company;
•
dividend payments should support investment profile of the Company.
340
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Strategic report
Corporate governance
Share capital
Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
21
EQUITY (CONTINUED)
Amount of such payment is subject to approval of the General Shareholders’ Meeting, based on
recommendations provided by the Company’s 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 Accounting Standards. 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. Interim
dividends payment decision is made at the General Shareholders’ Meeting within three months after the
relevant reporting period end. The payment period for dividends payable to a nominal holder or a trustee,
which is a professional participant of the securities market, who are registered in the share register, shall
be not more than 10 business days. The payment period for dividends payable to other parties registered
in the shareholders register shall not exceed 25 business days after the date when the parties entitled to
receive dividends are determined. Holders of PhosAgro GDRs are also entitled to receive dividends on
shares in accordance with Depositary Agreements terms. In accordance with 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 debt leverage) of the Company’s consolidated free cash flow for the respective
period under IFRS Accounting Standards. At the same time, the amount of declared dividends shall not be
lower than 50% of net profit for the relevant period under IFRS Accounting Standards 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. At 31 December 2024, the Company had cumulative retained earnings
of RUB 41,635 million (31 December 2023: RUB 38,453 million).
Proposed
Approved
Amount per
share
Amount of
dividends
by the Board of Directors in
by shareholders in
RUB
RUB million
May 2024
June 2024
309
40,015.5
August 2024
September 2024
117
15,151.5
November 2024
December 2024
126
16,317.0
Total
71,484.0
Proposed
Approved
Amount per
share
Amount of
dividends
by the Board of Directors in
by shareholders in
RUB
RUB million
March 2023
March 2023
465
60,217.5
May 2023
June 2023
264
34,188.0
November 2023
December 2023
291
37,684.5
Total
132,090.0
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
22
EARNINGS PER SHARE
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.
2024
2023
Weighted average number of ordinary shares in issue
129,500,000
129,500,000
Profit for the year attributable to shareholders of the Company, RUB million
84,430
86,084
Basic and diluted earnings per share, RUB
652
665
23
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 24. For more information about the Group’s exposure to foreign
currency risk, interest rate risk and liquidity risk, see note 27.
RUB million
31 December
2024
31 December
2023
Current loans and borrowings
Unsecured bank loans
96,684
84,610
Replacement bonds
36,291
-
Eurobonds
26,398
-
Interest payable
2,588
1,819
Bank commission (short-term)
(300)
-
Total current loans and borrowings
161,661
86,429
Non-current loans and borrowings
Bonds RUB-denominated
75,000
20,000
Replacement bonds
38,991
66,404
Bonds CNY-denominated
26,854
25,152
Unsecured bank loans
19,117
27,231
Bonds USD-denominated
10,168
-
Eurobonds
-
23,284
Bank commission (long-term)
(168)
(361)
Total non-current loans and borrowings
169,962
161,710
Total loans and borrowings
331,623
248,139
In April 2023, the Company issued two series of 3-year bonds on the Moscow Stock Exchange:
•
CNY 2,000 million, with a coupon period of 91 days and coupon income China Loan prime rate
(LPR 1Y) + 1.2%;
•
RUB 20,000 million, with a coupon period of 182 days and coupon income 9.4%.
In accordance with the Russian President Decree from 5 July 2022 № 430 On repatriation of foreign
currency and Russian Federation currency by the residents as a foreign economic activity participants, in
July 2023 the Company issued replacement bonds of ZO25-D series for USD 356.9 million and ZO28-D
series for USD 383.5 million in exchange for Eurobonds with maturity in 2025 and 2028 respectively.
Replacement bonds have the same terms as Eurobonds including rate, coupon payment terms, par value
and maturity date. Bonds repayment during issue was made by the Eurobonds, rights on which
are registered by Russian depositaries. Repayment of ZO25-D and ZO28-D series bonds and appropriate
coupon is made in Russian roubles applying Bank of Russia exchange rate at the repayment date.
In June 2024, the Company issued USD 100 million in BO-P01-USD series 5-year bonds on the Moscow
Stock Exchange with quarterly coupon rate of 6.25% per year.
342
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Strategic report
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Share capital
Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
23
LOANS AND BORROWINGS (CONTINUED)
In September 2024, the Company issued RUB 35,000 million in BO-P02 series 2-year bonds on the
Moscow Stock Exchange with a floating coupon rate of key rate of Central Bank of Russia plus 1.1% per
year.
In November 2024, the Company issued RUB 20,000 million in BO-02-01 series 5-year bonds on the
Moscow Stock Exchange with floating coupon rate of Russian Central Bank key rate plus 2% per year with
early repayment offer available after two years.
Information on the Group's bond loans is presented below:
RUB million
31 December 2024
31 December 2023
Currency
Expiry
date
Rate,
%
Carrying
value
Fair value
Rate, %
Carrying
value
Fair value
RUB-denominated
bonds
RUB
08.09.2026
22.10%
35,000
34,885
-
-
-
RUB
17.04.2026
9.40%
20,000
18,492
9.40%
20,000
19,589
RUB
12.11.20261
23.00%
20,000
20,250
-
-
-
Replacement
bonds
USD
23.01.2025
3.05%
36,291
36,443
3.05%
32,011
31,531
USD
16.09.2028
2.60%
38,991
33,649
2.60%
34,393
31,261
CNY-denominated
bonds
CNY
09.04.2026
4.55%
26,854
25,592
4.65%
25,152
25,190
Eurobonds
USD
23.01.2025
3.05%
14,549
12,221
3.05%
12,833
10,877
USD
16.09.2028
2.60%
11,849
7,958
2.60%
10,451
6,994
USD-denominated
bonds
USD
31.05.2029
6.25%
10,168
9,800
-
-
-
Total bonds
213,702
199,290
134,840
125,442
1 The date of early repayment offer
The breakdown of the loans and borrowings denominated in different currencies is as follows:
RUB million
31 December
2024
31 December
2023
USD-denominated
134,256
117,677
RUB-denominated
109,639
47,254
CNY-denominated
85,383
80,280
EUR-denominated
2,345
2,928
Total
331,623
248,139
The maturity of the loans and borrowings is as follows:
RUB million
31 December
2024
31 December
2023
Less than 1 year
161,961
86,429
1-2 years
120,971
53,298
2-3 years
-
61,225
3-4 years
38,991
2,704
4-5 years
10,168
44,844
Bank commission
(468)
(361)
Total
331,623
248,139
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
23
LOANS AND BORROWINGS (CONTINUED)
Analysis of Group's loans and borrowings changes related to cash and non-cash movements is presented
below:
RUB million
2024
2023
Balance at 1 January
248,139
190,758
Cash inflows
212,336
172,906
Cash outflows
(154,961)
(155,306)
Foreign exchange differences
25,251
39,316
Interest accrued
14,530
7,179
Interest paid
(13,851)
(6,840)
Amortisation of bank commission
179
126
Balance at 31 December
331,623
248,139
Under the terms of the Group’s long-term bank loans and bonds with a carrying amount of
RUB 19,117 million at 31 December 2024 (at 31 December 2023: RUB 50,360 million), the Group is
required to comply with certain financial and non-financial covenants at the end of each annual and interim
reporting period.
Financial covenants include the following:
•
the ratio of consolidated total debt to EBITDA of the Group at the end of each reporting period must
be not more than 3.5:1;
•
the ratio of consolidated net debt to consolidated EBITDA of the Group at the end of each reporting
period must be not more than 3:1;
•
the ratio of consolidated net debt to equity of the Group at the end of each reporting period must be
not more than 1.5:1;
•
the ratio of consolidated EBITDA to interest expense/ net interest expense of the Group at the end
of each reporting period must be not less than 3:1.
Financial covenants are calculated by the Group in accordance with definitions stipulated in the respective
agreements.
Non-financial covenants include compliance with a set of conditions, for example, intended use of loans,
providing the documents specified in the respective loan agreements and financial statements, restriction
on significant assets disposal, pledge of property, reorganisation and other.
In 2024, the Group exceeded the net debt to equity ratio of 1.5 set by the loan agreement with one of the
foreign banks. At 31 December 2024, the carrying amount of this loan was RUB 11,301 million, including
interest payable. In January 2025, the Group received a waiver letter from the bank in relation to exceeding
this ratio.
As a result, at 31 December 2024, the Group did not have unconditional right to defer settlement of a non-
current portion of certain loans for at least twelve months after the reporting period (note 27 (e)).
344
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Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
24
LEASE LIABILITIES
RUB million
Lease liability
without subsequent
asset buyout
Lease liability with
subsequent
asset buyout
Total
Balance at 1 January 2023
731
2,205
2,936
New lease contracts or modification of existing
lease contracts
581
2,064
2,645
Principal lease payments
(401)
(1,015)
(1,416)
Interest expense on lease liabilities
66
218
284
Interest lease payments
(66)
(218)
(284)
Disposal
(63)
(4)
(67)
Foreign exchange differences
(2)
135
133
Balance at 31 December 2023
846
3,385
4,231
New lease contracts or modification of existing
lease contracts
463
979
1,442
Principal lease payments
(474)
(974)
(1,448)
Interest expense on lease liabilities
137
292
429
Interest lease payments
(137)
(292)
(429)
Disposal
(144)
-
(144)
Foreign exchange differences
1
49
50
Balance at 31 December 2024
692
3,439
4,131
25
DEFINED BENEFIT OBLIGATIONS
RUB million
31 December 2024
31 December 2023
Pension obligations, long-term
773
308
Post-retirement obligations other than pensions
256
821
Total defined benefit obligations
1,029
1,129
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. The movement in the present value of the defined benefit obligations is as follows:
RUB million
2024
2023
Defined benefit obligations at 1 January
1,129
1,050
Benefits paid
(136)
(101)
Current service costs and interest
168
145
Actuarial (gain)/loss in other comprehensive income
(132)
35
Defined benefit obligations at 31 December
1,029
1,129
The key actuarial assumptions used in measurement of the defined benefit obligations are as follows:
31 December 2024
31 December 2023
Discount rate
17.78%
12.0%
Future pension increases
7%
5.7%
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
26
TRADE AND OTHER PAYABLES
RUB million
31 December 2024
31 December 2023
Financial liabilities
Trade accounts payable
30,506
22,130
including accounts payable for property, plant and equipment
and intangible assets
10,277
7,661
Other payables
121
870
Non-financial liabilities
Advances received (liabilities under the contracts with customers)
10,705
11,055
Payables to employees
6,618
5,990
Accrued expenses and provisions
247
349
Other payables
197
311
Total trade and other payables
48,394
40,705
Contract liabilities balance at the beginning of the year was fully recognised in revenue during the reporting
period.
27
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 Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework. The Group’s risk management policies are established to identify and analyse the
risks faced by the Group, 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 conditions, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s profit 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.
(c)
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 currency of Group entities. The currencies giving rise to this
risk are primarily USD, CNY and EUR.
In respect of monetary assets and liabilities denominated in foreign currencies, the Group ensures that its
net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when
necessary to address short-term imbalances.
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 the Group’s sales agreements are
denominated.
346
347
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Strategic report
Corporate governance
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Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
27
FINANCIAL RISK MANAGEMENT (CONTINUED)
The Group has the following net monetary position on financial assets and liabilities denominated in foreign
currencies:
31 December 2024
31 December 2023
RUB million
USD
denominated
CNY
denominated
EUR
denominated
USD
denominated
CNY
denominated
EUR
denominated
Non-current assets
-
-
-
7,178
-
-
Current assets
84,217
20
4,043
64,290
-
1,667
Non-current liabilities
(59,519)
(33,380)
-
(108,875)
(28,937)
(2,185)
Current liabilities
(80,461)
(53,300)
(3,943)
(12,822)
(51,959)
(1,910)
Net position of the
Group companies
(55,763)
(86,660)
100
(50,229)
(80,896)
(2,428)
Management estimates that a 10% strengthening/(weakening) of RUB against USD, CNY and EUR, based
on the Group’s total net position in USD, CNY and EUR at the reporting date would have
increased/(decreased) the Group’s profit for the year by RUB 14,232 million, before any tax effect
(2023: would have increased/(decreased) the Group’s profit for the year by RUB 13,355 million).
This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is
performed on the same basis for 2023.
The net foreign exchange loss recognised in profit or loss of RUB 15,903 million (net foreign exchange loss
of RUB 17,964 million for the comparative period) resulted from Russian rouble depreciation against major
currencies during the reporting period (Russian rouble appreciation against major currencies during the
comparative period).
The breakdown of the net foreign exchange loss by nature is presented below:
RUB million
2024
2023
Foreign exchange gain from trade and other receivable
8,228
13,072
Foreign exchange gain from other current assets
834
-
Foreign exchange loss from trade and other payables
(749)
(403)
Foreign exchange gain from other non-current assets
-
2,376
Other
(1,861)
(359)
Foreign exchange gain from operating activities, net
6,452
14,686
Foreign exchange gain from cash and cash equivalents
2,946
6,799
Foreign exchange loss from lease liabilities
(50)
(133)
Foreign exchange loss from loans and borrowings
(25,251)
(39,316)
Foreign exchange loss from financing activities, net
(22,355)
(32,650)
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
27
FINANCIAL RISK MANAGEMENT (CONTINUED)
(d)
Interest rate risk
Interest rate risk is the risk that changes in interest rates will adversely impact the financial results of the
Group. Management does not have a formal policy of determining how much of the Group’s exposure
should be to fixed or variable rates. However, at the time of raising new loans or borrowings management
uses its judgment to decide whether it believes that a fixed or variable rate would be more favourable to
the Group over the expected period until maturity.
The interest rate profile of the Group’s interest-bearing financial instruments at their carrying values is as
follows:
RUB million
31 December 2024
31 December 2023
Fixed rate instruments
Call deposits and other financial assets
322
20,208
Other non-current assets
108
74
Lease liabilities
(4,131)
(4,231)
Short-term borrowings
(123,472)
(75,107)
Long-term borrowings
(85,852)
(132,309)
Total fixed rate instruments
(213,025)
(191,365)
Variable rate instruments
Call deposits and other financial assets
2,027
-
Long-term borrowings
(84,278)
(29,762)
Short-term borrowings
(38,489)
(11,322)
Total variable rate instruments
(120,740)
(41,084)
Sensitivity analysis for financial instruments with variable interest rates
At 31 December 2024, 2 percentage points 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 2,415 million
(31 December 2023: RUB 822 million).
(e)
Credit risk
Credit risk is the risk of financial loss to the Group if a customer and supplier or counterparty to a financial
instrument fails to meet its contractual obligations, and arises from the Group’s receivables from customers,
current and non-current financial assets and cash and cash equivalents.
At 31 December 2024, the Group’s maximum exposure to credit risk is represented by the carrying amount
of its financial assets and amounted to RUB 103,008 million (31 December 2023: RUB 92,842 million) and
is presented in the tables below by class of asset.
The Group’s financial assets measured at amortised cost is presented below:
RUB million
Note
31 December
2024
31 December
2024
Trade receivables excluding receivables under provisionally priced
sales agreements
19
32,515
17,817
Cash and cash equivalents
20
10,398
29,163
Other receivables
19
2,983
430
Loans issued to third parties, at amortised cost
17
2,060
68
Other assets
17
1,074
87
Loans issued to employees, at amortised cost
17
146
156
Receivable accrued as a result of Phosint Group disposal
17
-
12,137
Allowance for expected credit losses
17,19
(616)
(613)
Total
48,560
59,245
At 31 December 2024, 96% of the Group's trade receivables is represented by one counterparty (31
December 2023: 95%).
348
349
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
27
FINANCIAL RISK MANAGEMENT (CONTINUED)
The Group’s financial assets measured at fair value through profit or loss are presented below:
RUB million
Note
2024
2023
Trade receivables under provisionally priced sales agreements
19
54,443
33,586
Financial assets measured at fair value through profit or loss
17
5
11
Total
54,448
33,597
Trade and other receivables
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 customers operate, have less of an influence on credit risk.
Management has established a credit policy under which each new customer is analysed individually 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 for each customer, which represent the maximum amount of outstanding receivables;
these limits are reviewed quarterly. Customers that fail to meet the Group’s benchmarks of creditworthiness
may transact with the Group only on a prepayment basis.
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 and other receivables relate mainly to the Group’s wholesale customers.
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 expected credit losses that represents its estimate of the expected
credit losses in respect of trade and other receivables and other financial assets. The Group estimates the
allowance for expected credit losses for trade receivables in the amount equal to lifetime expected loss
allowance of the financial instrument. 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 allowance for expected credit losses on accounts receivable has been accrued in accordance with the
risk matrix presented in the table below:
RUB million
31 December 2024
Not past due
Past due
0-90 days
Past due
91-180 days
Past due
181-365 days
More than
one year
Total
Loss rate
0.1-5%
0.1-10%
11.39%
16.70%
100%
Gross carrying amount
87,491
1,122
729
491
108
89,941
Lifetime ECL
(273)
(53)
(83)
(82)
(108)
(599)
Net carrying value
87,218
1,069
646
409
-
89,342
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
27
FINANCIAL RISK MANAGEMENT (CONTINUED)
RUB million
31 December 2023
Not past due
Past due
0-90 days
Past due
91-180 days
Past due
181-365 days
More than
one year
Total
Loss rate
0.1-6%
0.1-10%
8.62%
10.53%
100%
Gross carrying amount
50,148
1,338
58
57
232
51,833
Lifetime ECL
(165)
(66)
(5)
(6)
(232)
(474)
Net carrying value
49,983
1,272
53
51
-
51,359
Current and non-current financial assets
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.
Cash and cash equivalents are primarily held with large banks with high credit rating and minimal risk of
default, which provides high-level credit risk limits. All bank account balances and term deposits are not
overdue or impaired.
(f)
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 approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses
for a period of 30 days, including the servicing of financial obligations; this excludes the potential impact of
extreme circumstances that cannot reasonably be predicted, such as natural disasters. In addition, the
Group maintains several lines of credit in various Russian and international banks.
At 31 December 2024, Group’s current liabilities exceeded current assets by RUB 52,662 million. The
Group manages its liquidity and ensures timely fulfilment of its obligations using Group’s own and borrowed
funds. In January – February 2025, the Group obtained long-term financing of RUB 40,000 million from
additional bonds issue and repaid RUB 58,277 million of loans and bonds.
At 31 December 2024, the Group recognised non-current portion of certain borrowings of RUB 20,059
million within current borrowings (note 23) as the Group did not have unconditional right to defer settlement
of liabilities for at least twelve months after the reporting period. Total amount of borrowings for which early
repayment might be demanded by lenders in accordance with loan agreements was RUB 46,255 million
as at 31 December 2024. There were no such claims by the date of issue of these consolidated financial
statements and the Group’s management does not expect to receive them. In January 2025, the Group
received the bank’s letter waiving a breach of net debt to equity ratio (note 23).
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 are the contractual undiscounted cash flows:
31 December 2024
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
Loans and borrowings
332,091
364,7811
180,7932
133,243
634
39,626
10,485
-
Lease liabilities
4,131
6,114
1,609
1,261
868
645
577
1,154
Trade and other payables
30,627
30,627
30,627
-
-
-
-
-
Dividends payable
19,779
19,779
19,779
-
-
-
-
-
Total
386,628
421,301
232,808
134,504
1,502
40,271
11,062
1,154
350
351
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
27
FINANCIAL RISK MANAGEMENT (CONTINUED)
31 December 2023
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
Loans and borrowings
248,500
267,696
94,081
59,358
64,308
3,939
46,010
-
Lease liabilities
4,231
5,823
1,770
1,003
758
522
355
1,415
Dividends payable
54,919
54,919
54,919
-
-
-
-
-
Trade and other payables
23,000
23,000
23,000
-
-
-
-
-
Total
330,650
351,438
173,770
60,361
65,066
4,461
46,365
1,415
1For bonds with early repayment offer cash flow is indicated by the offer date (note 23).
2The category "0-1 year" includes short-term loans and borrowings of RUB 46,255 million, for which lenders
could demand early repayment in accordance with loan agreements terms (note 23).
(g)
Capital management
The Group’s Board of Directors pursues a policy aimed at maintaining high capital levels to keep investor,
lender and market confidence and to provide future sustainable business development. The Board of
Directors keeps under control the return on invested capital and dividends paid to shareholders. To maintain
and adjust the capital structure, the Group may adjust periods of dividend payment to shareholders, revise
its investment programme and obtain new or repay existing loans and borrowings. There were no changes
in the Board’s approach to capital management during the year.
The Group defines capital under management as the amount in “Equity attributable to shareholders of the
Company” line item in the consolidated statement of financial position. At 31 December 2024, the
Group’s capital under management amounted to RUB 164,585 million (31 December 2023:
RUB 151,521 million).
The Group's management regularly reviews external capital requirements and indicators of the Company
and its subsidiaries including requirements established by the law and loan agreements (note 23 and 27
(f)).
28
COMMITMENTS
At 31 December 2024, the Group had contractual commitments for the purchase of property, plant and
equipment for RUB 48,972 million (31 December 2023: RUB 52,917 million), including VAT where
applicable.
29
CONTINGENCIES
(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)
Tax contingencies
Russian tax and customs 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.
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
29
CONTINGENCIES (CONTINUED)
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.
Tax liabilities arising from controlled transactions are determined based on their actual transaction prices.
It is possible, with the evolution of the interpretation of TP rules, that such prices could be challenged. The
impact of any such challenge cannot be reliably estimated; however, it may be significant to the financial
position and/or the Group's operations.
As Russian tax legislation does not provide definitive guidance in certain areas, the Group adopts, from
time to time, interpretations of such uncertain areas that reduce the overall tax rate of the Group. While
management currently 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.
The Group is involved in chemical production, which is inherently exposed to significant environmental
risks. The Group 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.
30
RELATED PARTY TRANSACTIONS
Parties are generally considered to be related if the parties are under common control or if one party has
the ability 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, having significant influence on the Group.
The balances and transactions with related parties are usually unsecured and denominated in RUB.
(a)
Transactions with related parties
RUB million
Nature of relationship
2024
2023
Sales of goods and services
Associates
28
27
Purchases of goods and services
Associates
(1,018)
(879)
Other expenses, net
Associates
(178)
-
Sales of goods and services
Other related parties
1,362
1,082
Other expenses, net
Other related parties
(512)
(400)
Financial expenses, net
Other related parties
(404)
-
Purchases of goods and services
Other related parties
(4)
(60)
In 2024, the Company declared dividends, including RUB 31,209 million (2023: RUB 77,113 million) to the
shareholders holding more than 20% of the Company’s shares.
In 2024, the Group received and repaid unsecured loans of RUB 17,100 million from the related party. The
loans were received at interest rate of 16.65% per annum.
In 2023, the Group received and repaid unsecured loan of RUB 10,000 million from the related party. The
loan was received at interest rate of 13.65 – 15.65% per annum.
352
353
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
PJSC “PhosAgro”
Notes to the Consolidated Financial Statements for 2024
30
RELATED PARTY TRANSACTIONS (CONTINUED)
(b)
Balances with related parties
RUB million
Nature of relationship
31 December 2024
31 December 2023
Trade and other receivables
Associates
17
57
Trade and other payables
Associates
(91)
(60)
Trade and other receivables
Other related parties
506
-
Trade and other payables
Other related parties
(11)
(2)
(c)
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 social security costs. The remuneration of
the Board of Directors and key management personnel recognised as part of administrative and selling
expenses amounted to RUB 3,964 million (2023: RUB 3,553 million).
31
SIGNIFICANT SUBSIDIARIES OF THE GROUP
Effective ownership (rounded)
Subsidiary
Country of
incorporation
31 December
2024
31 December
2023
Apatit, JSC (including Balakovo, Volkhov and Kirovsk branches)
Russia
100%
100%
Mekhanik, LLC
Russia
100%
100%
NIUIF, JSC
Russia
94%
94%
PhosAgro-Region, LLC
Russia
100%
100%
PhosAgro-Belgorod, LLC
Russia
100%
100%
PhosAgro-Don, LLC
Russia
100%
100%
PhosAgro-Kuban, LLC
Russia
100%
100%
PhosAgro-Kursk, LLC
Russia
100%
100%
PhosAgro-Lipetsk, LLC
Russia
100%
100%
PhosAgro-Oryol, LLC
Russia
100%
100%
PhosAgro-Stavropol, LLC
Russia
100%
100%
PhosAgro-Volga, LLC
Russia
100%
100%
PhosAgro-SeveroZapad, LLC
Russia
100%
100%
PhosAgro-Tambov, LLC
Russia
100%
100%
PhosAgro-Sibir, LLC
Russia
100%
100%
32
SUBSEQUENT EVENTS
In 2025, the Group obtained long-term financing of RUB 40,000 million from additional bonds issue and a
short-term loan of RUB 20,000 million from a related party, and repaid loans and borrowings of
RUB 68,277 million, including short-term loan to a related party of RUB 10,000 million.
In February 2025, the Company made a decision to issue CNY 1,000 million in BO-02-02 series bonds with
a fixed coupon rate of 10.4% per annum and maturity period of 1.5 years.
MANAGEMENT RESPONSIBILITY STATEMENT
The PhosAgro’ management
hereby confirms that, to the best
of its knowledge, the financial
statements prepared in accordance with
the International Financial Reporting
Standards as issued by the International
Accounting Standards Board give a true
and fair view of the assets, liabilities,
financial position and profit or loss
of the Company and the undertakings
included in the consolidation taken
as a whole.
The management report includes
a fair review of the development
and performance of the business
and the position of the PhosAgro
and the undertakings included
in the consolidation taken as a whole,
together with a description
of the principal risks and uncertainties
that they face.
This integrated report was reviewed
and approved at PhosAgro’s Board
of Directors meeting on 17 April 2025.
The consolidated financial statements
for the year ended 31 December
2024 were approved by the Board
of Directors on 13 February 2025.
Mikhail Rybnikov
Chief Executive Officer and Chairman
of the Management Board of PhosAgro
Additional information to the sections
DEFINING MATERIAL TOPICS
GRI 3-1
Approach to defining
material topics
In 2022 and 2023, PhosAgro Group
revised the Regulations on Collecting,
Processing and Presenting
Non-Financial Reporting Data
in accordance with GRI standards,
including the GRI Universal Standards
updated in 2021. The Regulations
include GRI-compliant data collection
forms for the Report and establish
approach to defining material
topics based on double materiality.
This approach relies on the review
of the impact that social, economic,
regulatory and governance and/
or environmental factors or aspects
have on the Company and vice versa.
In 2023, the Company added
the following new sources
of information to the materiality
analysis process: feedback and
comments received during
the RSPP public assurance process,
as well as opinions of external experts
on the quality of the Company’s
reports and its compliance with
the best market practices, in particular,
opinions of experts from Telegram
channels.
In 2024, the Company determined
financial materiality: it assessed the
potential impact of strategic risks
on its activities (weight 80%) and
the international ESG rating (weight
20%) and, by comparing the two lists,
identified the highest priority topics:
the most significant impacts and the
highest risks (double materiality).
The Group compared material topics
against its strategic priorities and
risk profile. The impact of material
aspects on our value chain from
mine to plate (for more information,
see the Business Model section
on page 21-23) was rated as high,
medium or low. When assessing
the degree of impact on processes
under our control such as product
development and manufacturing,
purchase and mining of mineral
resources, logistics and sales,
we took into account the scale
of an actual and potential impact
and the nature of the assessed topic
with due regard to industry specifics.
With the application of our products
seen as an important stage in value
creation, we assessed the effect
of this element on the selection
of material topics by analysing both
the Company’s impact on the end
consumer and customer needs,
expectations and requirements with
regard to our products and practices.
To illustrate our approach to impact
assessment, let us look at the GRI
404 Training and Education. For this
topic, we rated the impact as high
at every stage of the value chain
due to an important role our highly
qualified staff plays along the way
from product development to sales.
As regards the application stage,
we assume that the customer
gets a 2-in-1 product, including
a fertilizer and our service expertise
(training, agronomic advice and
support). Employees are also
directly interested in improving their
professional qualifications as a means
of facilitating their career development
in the Company and obtaining
a competitive edge in the labour
market. Personal development tools
help employees to harmoniously
develop their skills in other
areas of interest. Hence, relevant
competencies and skills acquired,
in particular, as part of the provided
training are highly relevant.
For more information
on approaches and steps to select
material topics in 2024, see
the Material Topics section
p.
28–29
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
355
354
KEY ASPECTS OF 2024 REPORTING THAT DESERVE A SPECIAL MENTION
1. Material topics disclosed in the 2023
Annual Report are still relevant
in 2024.
2. To assess them, we applied
a double materiality principle.
3. 45 GRI indicators underwent
external independent audit
by Technologies of Trust – Audit JSC
providing limited assurance.
Notably, we did not receive
any communications from
stakeholders via the hot line
and email (esg@phosagro.ru
and ir@phosagro.ru) in 2024.
p.
378-387
For more information,
see the GRI Content Index
section
№
Material topics
Corresponding GRI standard
Impact on the value chain
Average
score (impact
materiality)
Risks
Related risks
UN SDGs
Product
development
Mineral
resources
Production
Logistics
Sales
Application
1
Economic impact
201 Economic performance
H
H
H
H
H
M
4.80
3.43
Strategic planning,
production, project,
sanctions, interest rate,
credit, currency risks
2
Share capital
201 Economic performance
H
H
H
M
H
L
4.80
3.43
Strategic planning,
production, project,
sanctions, interest rate,
credit, currency risks
3
Climate
305 Emissions
H
H
H
M
M
H
4.76
3.33
Climate, environmental,
regulatory risks
4
Air
305 Emissions
H
H
H
M
M
H
4.76
3.33
Climate, environmental,
regulatory risks
5
Industrial safety
403 Occupational health and
safety
H
H
H
H
H
H
4.67
4
HR, health and safety,
infectious diseases risks
6
Waste
306 Waste
M
H
H
L
H
H
4.67
3
Environmental, regulatory
risks
7
Energy efficiency
302 Energy
M
H
H
M
L
L
4.65
3.5
Production, climate risks
8
Contributing to local
communities
Economic impact
203 Indirect economic
impacts
L
L
H
H
H
H
4.54
4
Failure to deliver on SDGs
and ESG, climate,
sanctions risks
Impact degree
High
H
Medium
M
Low
L
356
357
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
№
Material topics
Corresponding GRI standard
Impact on the value chain
Average
score (impact
materiality)
Risks
Related risks
UN SDGs
Product
development
Mineral
resources
Production
Logistics
Sales
Application
9
Supply chain
204 Procurement practices
L
H
H
H
H
L
4.43
3.67
Commodity, corruption,
sanctions risks
10
Water
303 Water and waste water
H
H
H
L
L
H
4.43
3
Production, climate risks
11
Personnel development
and human rights
Economic impact
202 Market presence
H
M
M
M
H
H
4.40
4.5
Strategic planning,
sanctions risks
12
ESG evaluation
of suppliers
308 Supplier environmental
assessment
L
H
H
H
L
L
4.35
3
Failure to deliver on SDGs
and ESG, climate,
sanctions risks
13
Biodiversity
304 Biodiversity
H
H
H
L
L
H
4.33
3
Production, climate risks
Double
Personnel development
and human rights
402 Labour/management
relations
H
H
H
H
H
L
4.31
3.5
HR, business process risks
Double
Contributing to local
communities
413 Local communities
M
H
H
L
L
H
4.31
3
Social risks
14
Employment
401 Employment
H
H
H
H
H
M
4.18
3
Social, HR risks
Double
Personnel development
and human rights
405 Diversity and equal
opportunity
H
M
H
M
H
H
4.12
3
HR, business process risks
15
Motivation and training
404 Training and education
H
H
H
H
H
H
4.05
3
HR, business process risks
ESG evaluation
of suppliers
414 Supplier social
assessment
L
H
H
H
L
L
4.01
3
Failure to deliver on SDGs
and ESG, climate,
environmental risks
358
359
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
№
Material topics
Corresponding GRI standard
Impact on the value chain
Average
score (impact
materiality)
Risks
Related risks
UN SDGs
Product
development
Mineral
resources
Production
Logistics
Sales
Application
16
Anti-corruption
205 Anti-corruption
H
H
H
H
H
H
3.96
2
Corruption risks
17
Anti-competitive
behaviour
206 Anti-competitive
behaviour
H
H
H
H
H
H
3.96
2
Reputational risks
18
Tax policy
207 Taxes
L
H
H
L
H
L
3.81
3
Tax risk
19
Information security
410 Security practices
H
H
H
M
M
M
3.75
2.5
Information and
economic security risks
20
Product management
417 Marketing and labelling
L
L
L
L
H
H
3.59
4
Commodity risks
Additional material topics mandatory for disclosure:
21
Corporate governance
principles
–
H
H
H
H
H
H
3
2
Corruption, reputational
risks
22
Research and education
–
H
H
H
M
H
H
4
3.67
Strategic planning,
regulatory, climate risks
Impact degree
High
H
Medium
M
Low
L
Risk assessment scale
Probability
Impact
3
4
5
2
3
3
1
2
3
360
361
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Impact of risks and opportunities on the business model and value chain of the Company
Stage of the business model
Opportunities
Risks
Development
• Development of proprietary technologies and import substitution.
• Introduction of new types of fertilizers offering enhanced
environmental safety and improved biological availability.
• Development of fertilizers adapted to the climate change.
• Sanctions
• Strategic planning
Mining
• Development of logistics infrastructure to simplify the delivery of raw
materials to processing facilities.
• Development of conveyor lines for transporting ore from open pits
to beneficiation plants.
• Use of remotely operated machinery to improve the efficiency and
safety of mining and transportation.
• Production
• Health and safety
• Environmental
Fertilizer production
• Introduction of energy efficient technologies.
• Development of water-saving technologies for production purposes,
including the reuse of industrial waste water.
• Automation and digitalisation of production
• Production
• Health and safety
• Environmental
Application and service
• Growing demand for fertilizers due to declining soil fertility.
• Development of special fertilizers tailored to different climate
conditions.
• Development of educational programmes to teach customers how
to use fertilizers effectively.
• Business processes and
systems
Transportation and logistics
• Investments in digital solutions for cargo tracking.
• Entering into long-term contracts with port operators and carriers
to reduce costs and increase logistics reliability.
• Business processes and
systems
Marketing and sales
• Launch of educational programmes and workshops for foreign
farmers, demonstrating the advantages of PhosAgro fertilizers.
• Expanding the range of special fertilizers tailored to different regional
climates.
• Use of the ESG approach in marketing to emphasise the environmental
safety of PhosAgro fertilizers.
• Business processes and
systems
• Credit
Charitable giving and community and infrastructure development investment, RUB ‘000
GRI 203-1
Allocations
2022
2023
2024
Contributions to charities, NGOs and research institutions (not related
to the organisation’s commercial research and development)
3,083,504
802,874
2,302,684
Funds allocated to support community infrastructure (recreational facilities,
etc.)
1,838,886
7,335,597
7,945,884
Direct spending on social programmes, including arts and educational
activities
3,978,562
1,217,822
1,480,575
Total
8,900,952
9,356,293
11,729,143
GRI 403-10
Employee category
Main types of occupational diseases
Causes
Employees
Lumbosacral radiculopathy of
occupational aetiology
Prolonged exposure to a harmful production factor: physical
exertion and functional overstrain of individual organs and
systems in respective locations
Cervical radiculopathy of occupational
aetiology
Reflex lumbosacral muscular-tonic
syndrome of occupational aetiology
Reflex cervical muscular-tonic
syndrome of occupational aetiology
Lumbosacral radiculopathy (vascular
compression syndrome)
Persistent bilateral sensorineural
hearing loss
Prolonged exposure to a harmful production factor: industrial
noise
Vibration syndrome
Prolonged exposure to a harmful production factor: general
vibration in excess of permissible exposure limits
Workers who are not
employees but whose
work and/or workplace
are controlled by the
organisation
Lumbosacral radiculopathy of
occupational aetiology
Prolonged exposure to a harmful production factor: physical
exertion and functional overstrain of individual organs and
systems in respective locations
Cervical radiculopathy of occupational
aetiology
Reflex cervical muscular-tonic
syndrome of occupational aetiology
Vibration syndrome
Prolonged exposure to a harmful production factor: general/
local vibration
Persistent bilateral sensorineural
hearing loss
Prolonged exposure to harmful production factors: industrial
noise
362
363
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Budget contributions other than income tax and excess profit tax, RUB mln
GRI 207-4
Item
Group
Russia
Poland
Switzerland
France
Germany
Serbia
Lithuania
Romania
Africa
Brazil
Singapore
Cyprus
Finland
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
2022
2023
2024
VAT1
20,425
17,700
20,181
21,650
17,700
20,181
(108)
0
0
(707)
0
0
(447)
0
0
148
0
0
30
0
0
0
0
0
(43)
0
0
(99)
0
0
0
0
0
0
0
0
0
0
0
2
0
0
Personal
income tax
(7,324)
(5,508)
(7,311)
(7,199)
(5,508)
(7,311)
(13)
0
0
(53)
0
0
(11)
0
0
(15)
0
0
0
0
0
(5)
0
0
0
0
0
(5)
0
0
(5)
0
0
0
0
0
(16)
0
0
(1)
0
0
Social
contributions
(9,902)
(11,822)
(14,963)
(9,595)
(11,822)
(14,963)
(14)
0
0
(238)
0
0
(21)
0
0
(4)
0
0
(1)
0
0
(5)
0
0
(7)
0
0
0
0
0
(4)
0
0
0
0
0
(12)
0
0
0
0
0
MET
(8,028)
(9,873)
(11,944)
(8,028)
(9,873)
(11,944)
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
Property tax
(1,737)
(2,067)
(2,204)
(1,737)
(2,067)
(2,204)
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
Pollution fees
(187)
(203)
(215)
(187)
(203)
(215)
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
Land tax
(226)
(194)
(324)
(226)
(194)
(324)
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
Water use
charges
(56)
(64)
(82)
(56)
(64)
(82)
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
Transport tax
(17)
(18)
(20)
(17)
(18)
(20)
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
Water tax
(4)
(5)
(5)
(4)
(5)
(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
0
0
0
0
0
0
0
0
0
0
0
Regular subsoil
use fees
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
Other taxes
(19)
(22)
(27)
(15)
(22)
(27)
0
0
0
0
0
0
(1)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(3)
0
0
0
0
0
0
0
0
0
0
0
Tax fines and
penalties
(8)
(4)
0
(8)
(4)
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
Unified tax
account2
0
(53)
36
0
(53)
36
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
Dividend
income tax
(1)
(608)
(591)
(1)
(608)
(591)
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
1 Information on input/output VAT is presented on a net basis: the amount was obtained by offsetting VAT paid and refunded by PhosAgro Group companies in each
jurisdiction.
2 Starting 1 January 2023, the Russian Federation introduced a new mandatory accounting procedure for assessment and payment of taxes and insurance
contributions. The procedure provides for every taxpayer to have the so-called single tax account, which is to be replenished with a single tax payment before
the tax payment deadline. The amount credited to the account is then distributed to cover the taxpayer’s liabilities.
364
365
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Tax jurisdiction
Name of the resident entities
Primary activity of the organisation
Brazil
PhosAgro Americas (until 31.03.2022)1
Service company
Germany
PhosAgro Deutschland GmbH (until
31.03.2022)1
Foreign trader
Cyprus
Phosint Trading Limited Ltd (until 31.03.2022)1
Foreign trader
Phosint Ltd (until 31.03.2022)1
Holding company
Okmus Oy (until 31.03.2022)1
Holding company
Lithuania
UAB PhosAgro Baltic (until 31.03.2022)1
Foreign trader
Poland
PHOSAGRO POLSKA Sp.z o.o. (until
31.03.2022)1
Foreign trader
Romania
PhosAgro Balkans SRL Romania (from
01.09.2020 until 31.03.2022)1
Foreign trader
Serbia
PhosAgro Balkans d.o.o. Beograd (until
31.03.2022)1
Foreign trader
Singapore
Phosagro Asia Pte Ltd (until 31.03.2022)1
Foreign trader
Finland
Bulk Terminal Kotka Oy (until 31.03.2022)1
Service company
Logifert Oy (until 31.03.2022)1
Service company
France
Phosagro France SAS (until 31.03.2022)1
Foreign trader
Switzerland
PhosAgro Trading SA (until 31.03.2022)1
Foreign trader
PhosAgro Logistics AG (until 31.03.2022)1
Logistics and distribution
PhosAsset GmbH (until 31.03.2022)1
Holding company
South Africa
PhosAgro South Africa Proprietary Limited
(01.11.2020 until 31.03.2022)1
Foreign trader
Country-by-country reporting
Tax jurisdiction
Name of the resident entities
Primary activity of the organisation
Russian Federation
PhosAgro, PJSC
Parent company
Apatit, JSC
Core production
Tirvas, LLC
Social services
Gornyy tsekh, LLC
Capital mining operations
Teleset, LLC
Social services
Tsentr stroitelnyh materialov, LLC
Repair services
Aeroport, OJSC
Social services
Korporativnoe pitanie, LLC
Social services
PromTransPort, LLC
Transportation services
Mekhanik, LLC
Repair services
PhosAgro-Region, LLC
Domestic trader
PhosAgro-Oryol, LLC
Domestic trader
PhosAgro-Belgorod, LLC
Domestic trader
PhosAgro-Volga, LLC
Domestic trader
PhosAgro-Lipetsk, LLC
Domestic trader
PhosAgro-Kursk, LLC
Domestic trader
PhosAgro-Don, LLC
Domestic trader
PhosAgro-Kuban, LLC
Domestic trader
PhosAgro-Stavropol, LLC
Domestic trader
PhosAgro-Tambov, LLC
Domestic trader
PhosAgro-SeveroZapad, LLC
Domestic trader
Smart Bulk Terminal, LLC
Stevedoring services
Samoilov Scientific Research Institute
for Fertilizers and Insectofungicides (NIUIF),
JSC
R&D
Trading House PhosAgro, LLC
Trading
RBTS PhosAgro, LLC
Service company
PhosAgro Engineering Centre, LLC
Service company
PhosAgro-Service, LLC
Service company
PhosAgro-Sibir, LLC
Domestic trader
Tirvas Public Catering, LLC
Social services
Aeroport Khibiny, LLC
Social services
1 In March 2022, the Group lost control over all of its foreign companies.
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Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
New hires
GRI 401-1
Region
Gender
2022
2023
2024
under 30 years
30–50 years
above 50 years
Share, %
Total
under 30
years
30–50 years
above 50
years
Share, %
Total
under 30
years
30–50 years
above 50
years
Share, %
Total
Vologda region
M
405
526
107
18.06
1,038
388
601
132
20.53
1,121
352
382
34
15.71
768
F
197
354
50
10.46
601
199
350
48
10.93
597
173
277
20
9.62
470
Total
602
880
157
28.52
1,639
587
951
180
31.47
1,718
525
659
54
25.33
1,238
Saratov region
M
143
310
33
8.46
486
124
292
30
8.17
446
179
308
40
10.78
527
F
65
156
26
4.30
247
67
107
12
3.41
186
67
108
21
4.01
196
Total
208
466
59
12.75
733
191
399
42
11.58
632
246
416
61
14.79
723
Leningrad region
M
201
374
35
10.61
610
150
271
14
7.97
435
153
303
37
10.09
493
F
68
118
18
3.55
204
56
72
7
2.47
135
74
96
17
3.83
187
Total
269
492
53
14.16
814
206
343
21
10.44
570
227
399
54
13.91
680
Moscow
M
3
20
8
0.54
31
9
27
7
0.79
43
8
28
12
0.98
48
F
3
17
2
0.38
22
8
17
1
0.48
26
9
8
2
0.39
19
Total
6
37
10
0.92
53
17
44
8
1.26
69
17
36
14
1.37
67
Murmansk region
M
449
1,237
123
31.48
1,809
501
1,170
118
32.77
1,789
467
960
114
31.53
1,541
F
161
287
47
8.61
495
145
290
45
8.79
480
170
230
41
9.02
441
Total
610
1,524
170
40.09
2,304
646
1,460
163
41.56
2,269
637
1,190
155
40.55
1,982
Other
M
19
98
39
2.71
156
24
69
30
2.25
123
11
92
26
2.64
129
F
13
26
9
0.84
48
12
55
11
1.43
78
14
47
8
1.41
69
Total
32
124
48
3.55
204
36
124
41
3.68
201
25
139
34
4.05
198
Men, total
1,220
2,565
345
71.86
4,130
1,196
2,430
331
72.47
3,957
1,170
2,073
263
71.73
3,506
Women, total
507
958
152
28.14
1,617
487
891
124
27.51
1,502
507
766
109
28.27
1,382
Total
1,727
3,523
497
100.00
5,747
1,683
3,321
455
100
5,459
1,677
2,839
372
100.00
4,888
Turnover1, %
GRI 401-1, MED 33
Region
Gender
2022
2023
2024
under 30 years
30–50 years
above 50 years
Total
under 30 years
30–50 years
above 50
years
Total
under 30
years
30–50 years
above 50
years
Total
Vologda region
M
0.47
0.81
0.12
1.40
0.21
0.45
0.05
0.71
0.30
0.60
0.08
0.97
F
0.31
0.72
0.09
1.12
0.19
0.64
0.08
0.90
0.19
0.57
0.04
0.79
Total
0.79
1.53
0.21
2.52
0.39
1.09
0.13
1.62
0.49
1.16
0.11
1.77
Saratov region
M
0.18
0.45
0.04
0.67
0.13
0.43
0.06
0.62
0.19
0.48
0.07
0.74
F
0.07
0.21
0.06
0.33
0.09
0.18
0.03
0.31
0.14
0.17
0.04
0.35
Total
0.25
0.66
0.10
1.00
0.22
0.61
0.09
0.93
0.33
0.65
0.11
1.09
Leningrad region
M
0.38
0.72
0.10
1.20
0.28
0.60
0.05
0.93
0.26
0.59
0.06
0.92
F
0.10
0.19
0.05
0.34
0.14
0.16
0.03
0.33
0.13
0.20
0.02
0.36
Total
0.48
0.91
0.15
1.54
0.42
0.77
0.08
1.27
0.39
0.80
0.08
1.27
1 Turnover takes into account voluntary resignations (excluding retirements) – 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 1.6e, article 81 of the Labour Code
of the Russian Federation; part 1.7, article 81 of the Labour Code of the Russian Federation.
368
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Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Region
Gender
2022
2023
2024
under 30 years
30–50 years
above 50 years
Total
under 30 years
30–50 years
above 50
years
Total
under 30
years
30–50 years
above 50
years
Total
Moscow
M
0.01
0.06
0.03
0.09
0.00
0.05
0.01
0.07
0.00
0.06
0.03
0.09
F
0.01
0.05
0.01
0.07
0.01
0.03
0.00
0.04
0.00
0.05
0.00
0.05
Total
0.01
0.11
0.04
0.15
0.01
0.09
0.01
0.11
0.00
0.11
0.03
0.14
Murmansk region
M
0.69
2.18
0.22
3.09
0.61
1.83
0.23
2.68
0.63
1.80
0.27
2.70
F
0.24
0.57
0.09
0.91
0.29
0.54
0.09
0.91
0.28
0.53
0.06
0.87
Total
0.93
2.75
0.31
4.00
0.90
2.37
0.32
3.59
0.91
2.33
0.33
3.57
Other
M
0.06
0.33
0.14
0.52
0.04
0.27
0.15
0.46
0.05
0.24
0.12
0.41
F
0.01
0.07
0.02
0.10
0.01
0.10
0.05
0.16
0.02
0.10
0.03
0.14
Total
0.07
0.40
0.16
0.62
0.05
0.37
0.20
0.61
0.07
0.34
0.14
0.55
Men, total
1.79
4.55
0.63
6.97
1.28
3.65
0.56
5.48
1.44
3.77
0.62
5.83
Women, total
0.74
1.81
0.32
2.87
0.72
1.65
0.28
2.65
0.75
1.62
0.19
2.55
Total
2.52
6.36
0.95
9.84
2.00
5.30
0.84
8.14
2.19
5.39
0.81
8.4
Social investments1, RUB mln
GRI 401-2, MED 28
Programme
2022
2023
2024
Δ 2024/2023, %
Financial aid
to employees
72.2
98.0
109.99
12
Recreation,
rehabilitation, health
resort treatment, and
VHI programme
506.2
586.5
824.2
41
Improvement of working
conditions
390.1
509.7
489.5
–4
Corporate housing
programme
88.5
112.0
150.1
34
Other social benefits and
guarantees
227.1
329.7
394.96
20
Corporate and cultural
events
186.4
243.4
325.1
34
Support to the trade
union (special purpose
funding and bonuses)
233.1
315.9
434.6
38
Total
1,703.7
2,195.2
2,728.50
24
Parental leave in the reporting year, people
GRI 401-3
Item
2022
2023
2024
M
F
Total
M
F
Total
M
F
Total
Number
of employees
entitled
to parental leave
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Employees
on parental leave
15
827
842
16
828
844
42
846
888
Employees who
returned to work
after parental
leave
2
198
200
0
188
188
2
177
179
Employees who
returned to work
after parental
leave and
stayed at work
12 months after
return
3
165
168
1
187
188
0
179
179
Return to work
ratio
40.0
86.5
85.5
0.0
97.4
96.9
100.0
98.88
98.90
Retention ratio
100.0
93.8
93.9
50.0
94.4
94.0
0.0
95.2
95.2
1 Boundary 2: Apatit, including its branches and standalone business units.
370
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Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Independent limited assurance report
LIST OF PHOSAGRO GROUP COMPANIES
1.
PhosAgro, PJSC
2.
Kirovsk Branch of Apatit, JSC
3.
Tirvas, LLC
4.
Gorny tsekh, LLC
5.
Teleset, LLC
6.
Tsentr stroitelnyh materialov, LLC
7.
Aeroport, JSC
8.
Balakovo Branch of Apatit, JSC
9.
Korporativnoe pitanie, LLC
10. PromTransPort, LLC
11.
Mekhanik, LLC
12. Volkhov Branch of Apatit, JSC
13. Apatit, JSC
14. PhosAgro-Region, LLC
15. PhosAgro-Oryol, LLC
16. PhosAgro-Belgorod, LLC
17. PhosAgro-Volga, LLC
18. PhosAgro-Lipetsk, LLC
19. PhosAgro-Kursk, LLC
20. PhosAgro-Don, LLC
21. PhosAgro-Kuban, LLC
22. PhosAgro-Stavropol, LLC
23. PhosAgro-Tambov, LLC
24. PhosAgro-SeveroZapad, LLC
25. Smart Bulk Terminal, LLC
26. NIUIF, JSC
27. Trading House PhosAgro, LLC
28. RBTS PhosAgro, LLC
29. ITS PhosAgro, LLC
30. PhosAgro-Service, LLC
31. PhosAgro-Sibir, LLC
32. Tirvas OP, LLC
33. Khibiny Airport, LLC
Joint-Stock Company
“Technologies of Trust – Audit”
(“Technologies of Trust – Audit” JSC)
Ferro-Plaza Business Centre, 14/3
Krzhizhanovsky street, bldg. 5/1,
Akademichesky municipal district,
Moscow, Russian Federation, 117218
F: +7 495 967 6001
www.tedo.ru
Independent Auditor’s Limited Assurance Report
To the Management of Public Joint Stock Company “PhosAgro”:
Introduction
We have been engaged by the Management of Public Joint Stock Company “PhosAgro” (hereinafter – the
“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 2024 (hereinafter – the “Integrated
Annual Report”). The Integrated Annual Report represents information related to the Company and its subsidiaries
(hereinafter together – the “Group”), unless otherwise stated in the Integrated Annual Report.
Selected information
We assessed the quantitative and qualitative information specified in Appendix 1 to this report 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 “Selected Information”).
The scope of our limited assurance procedures was limited to the Selected Information for the year ended
31 December 2024 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.
Reporting criteria
We assessed the Selected Information using relevant criteria, including reporting requirements in the respective
GRI Sustainability Reporting Standards 2, 3, 201, 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
management methodology as set forth in the criteria defined in the notes to the Group’s specific disclosures in the
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
given the purpose of our limited assurance engagement.
Responsibilities of the Group’s management
Management of the Group is responsible for:
•
designing, implementing and maintaining internal control relevant to the preparation of the Selected Information
that is free from material misstatement, whether due to fraud or error;
•
establishing internal methodology and guidelines (including the PhosAgro Methodology) for preparing and
reporting the Selected Information in accordance with the Reporting Criteria;
•
preparing, measuring and reporting of the Selected Information in accordance with the Reporting Criteria; and
•
the accuracy, completeness and presentation of the Selected Information.
Our responsibilities
We are responsible for:
•
planning and performing the engagement to obtain limited assurance about whether the Selected Information
is free from material misstatement, whether due to fraud or error;
•
forming an independent conclusion, based on the procedures we have performed and the evidence we have
obtained; and
•
reporting our conclusion to the Management of the Group.
Description of drivers exerting material impact on GHG emissions
Volumes
Sales growth driver
Precursors
Reduction in the share of internally produced ammonia and ammonium sulphate leads
to a decrease in Scope 1 emissions (consumption of natural gas in production processes)
and a slight decline in Scope 2 emissions (energy consumption in production processes).
Replacement of proprietary precursors with purchased ones results in an increase in Scope 3
emissions from purchased goods.
Energy
Smaller share of internally generated energy leads to a reduction in Scope 1 GHG emissions
from combustion of natural gas, while also boosting Scope 2 emissions from purchased power.
Gas consumption rates
Lower gas consumption rates in ammonia production (including overhaul shutdowns).
GHG in feedstock
Changes in GHG emissions per unit of purchased goods. Changes in the structure and
consumption rates of purchased feedstock, including the substitution of certain types of raw
materials with others.
Other products
Inclusion of tolling products in the GHG Emission Report.
372
373
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
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 websitei, 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.
i 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.
www.tedo.ru
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 2024 has not
been prepared, in all material respects, in accordance with the Reporting Criteria.
29 April 2025
Moscow, Russian Federation
Fegetsin Alexey Iakovlevich 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)
374
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Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
www.tedo.ru
Appendix 1 to the Independent Auditor’s Limited Assurance
Report dated 29 April 2025
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
Narrative
2-7
Employees
2-27
Compliance with laws and regulations
3-1
Process to determine material topics
3-2
List of material topics
3-3
Management of material topics
201-1
Direct economic value generated and distributed
202-1
Ratios of standard entry level wage by gender compared to local minimum wage
202-2
Proportion of senior management hired from the local community
203-1
Infrastructure investments and services supported
205-3
Confirmed incidents of corruption and actions taken
207-1
Approach to tax
207-2
Tax governance, control, and risk management
207-3
Stakeholder engagement and management of concerns related to tax
207-4
Country-by-country reporting
302-1
Energy consumption within the organization
302-3
Energy intensity
303-3
Water withdrawal
303-4
Water discharge
303-5
Water consumption
304-3
Habitats protected or restored
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
305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
306-3
Waste generated
306-4
Waste diverted from disposal
306-5
Waste directed to disposal
401-1
New employee hires and employee turnover
401-2
Benefits provided to full-time employees that are not provided to temporary or part-time employees
403-1
Occupational health and safety management system
403-2
Hazard identification, risk assessment, and incident investigation
403-3
Occupational health services
403-4
Worker participation, consultation, and communication on occupational health and safety
403-5
Worker training on occupational health 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
Work-related ill health
404-1
Average hours of training per year per employee
404-2
Programs for upgrading employee skills and transition assistance programs
404-3
Percentage of employees receiving regular performance and career development reviews
413-1
Operations with local community engagement, impact assessments, and development programs
www.tedo.ru
PhosAgro Methodology
(the Group’s specific
disclosure)
Related description
Pollutant emissions
Pollutant emissions, kg per tonne of finished and semi-finished products
Waste water discharge
Waste water discharge into surface waters, m3 per tonne of finished and semi-finished products
Specific water withdrawal
Specific water withdrawal, including mining and pit waters, m3 per tonne of finished and semi-
finished products
Specific water withdrawal
Specific water withdrawal from surface sources, excluding mining and pit waters, m3 per tonne
of finished and semi-finished products
Recycled and
decontaminated waste
Share of recycled and decontaminated hazard class 1–4 waste, %
376
377
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
GRI and SASB 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
SASB Indicator
Page number (or link)/Comments
Boundary
2
General disclosures (2021)
2-1
Organisational profile
2, 24
EM-MM-160a.1
Description of environmental
management policies and practices for
active sites
184
RT-CH-410b.2
Discussion of strategy to (1) manage
chemicals of concern and (2) develop
alternatives with reduced human and/
or environmental impact
184
RT-CH-000.A
Production broken down by reporting
segments
86
2-2
Entities included in
the organisation’s
sustainability reporting
2
2-3
Reporting period,
frequency, and point of
contact
2
2-4
Restatements of
information
The GRI 305-3, 305-4 and 305-5 data was adjusted
in the 2024 report. The information on Scope 3 GHG
emissions for 2024 and comparable periods, including
the baseline year, was revised due to adjustments
in the carbon footprint data previously provided by
the supplier
2-5
External assurance
3
2-6
Activities, value chain
and other business
relationships
22-25
1
2-7
Employees
EM-MM-000.B
Total number of employees,
percentage contractors
150
1
2-8
Workers who are not
employees
151
1
2-9
Governance structure and
composition
250, 256
1
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
2-10
Appointment and
selection of the supreme
governance body
256
PhosAgro Group has an onboarding
programme for new Board
members. Newly appointed
directors also visit PhosAgro Group’s
production sites and meet with
functional managers
1
2-11
Chair of the supreme
governance body
260
1
2-12
Role of the supreme
governance body
in overseeing the impacts
248, 279
1
2-13
Delegation
of responsibility for impact
management
248
1
2-14
Role of the supreme
governance body
in sustainability reporting
3, 28-29, 248
1
2-15
Conflicts of interest
298
1
2-16
Communication of critical
concerns
272
1
2-17
Collective knowledge
of the supreme
governance body
257
1
2-18
Supreme governance body
performance assessment
258
1
2-19
Remuneration policies
276
1
2-20
Process to determine
remuneration
276
1
2-21
Annual total compensation
ratio
The information is sensitive, and its disclosure could
potentially cause damage to the PhosAgro Group in
the form of additional labor costs, as well as the risk of
losing key management personnel to the Company as a
result of competition in the labor market
2-22
Statement on sustainable
development strategy
33
1
2-23
Policy commitments
286
1
2-24
Embedding policy
commitments
287
1
2-25
Processes to remediate
negative impacts
147, 288
1
2-26
Mechanisms for seeking
advice and raising
concerns
147, 288
1
378
379
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
2-27
Compliance with laws and
regulations
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
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.
In 2024, there were no cases of
violation of laws and regulations
by the Group that resulted in
significant fines or significant
other sanctions. The Company
compensates for damage caused
in 2019 as a result of an emergency
situation by reproducing
aquatic biological resources
in 2024 in the amount of RUB
3,002 thousand. Information of
cases of non-compliance with
laws and regulations related
to environmental protection is
disclosed on p. 187
1
2-28
Membership associations
100
1
2-29
Approach to stakeholder
engagement
EM-MM-210a.3
Discussion of engagement processes
and due diligence practices with
respect to human rights, indigenous
rights, and operation in areas
of conflict
26
1
2-30
Collective bargaining
agreements
147
2
3
Material topics (2021)
3-1
Processes to determine
material topics
26-29, 355-361
1
3-2
List of material topics
28-29
1
3-3
Management of material
topics
83, 95, 109, 131, 146, 223, 284, 292
1
201
Economic performance (2016)
3-3
Management of material
topics
29
201-1
Direct economic value
generated and distributed
26
1
201-2
Financial implications
and other risks
and opportunities
due to climate change
192
1
201-3
Defined benefit plan
obligations and other
retirement plans
161
1
201-4
Financial assistance
received from government
Not disclosed owing to the confidential nature of this
information
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
202
Market presence (2016)
3-3
Management of material
topics
29
202-1
Ratios of standard entry
level wage by gender
compared to local
minimum wage
160
1
202-2
Proportion of senior
management hired from
the local community
161
1
203
Indirect economic impacts (2016)
3-3
Management of material
topics
29
203-1
Infrastructure investments
and services supported
363
1
203-2
Significant indirect
economic impacts
228, 230
1
204
Procurement practices (2016)
3-3
Management of material
topics
29
204-1
Proportion of spending
on local suppliers
at significant locations
of operation
138
2
205
Anti-corruption (2016)
3-3
Management of material
topics
29
205-1
Proportion of spending
on local suppliers
at significant locations
of operation
EM-MM-510a.1
Description of the management
system for prevention of corruption
and bribery throughout the value
chain
287, 296-297
1
EM-MM-510a.2
Production in countries that have
the 20 lowest rankings in Transparency
International’s Corruption Perception
Index
The Company does not carry
out production in countries that
have the 20 lowest rankings
in Transparency International’s
Corruption Perception Index
205-2
Communication of and
training in anti-corruption
policies and procedures
293
1
205-3
Confirmed incidents
of corruption and actions
taken
297-298
1
206
Anti-competitive Behavior (2016)
3-3
Management of material
topics
29
206-1
Legal actions for anti-
competitive behavior,
anti-trust, and monopoly
practices
299
1
207
Tax (2019)
3-3
Management of material
topics
83
207-1
Approach to tax
83
1
380
381
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
207-2
Tax governance, control,
and risk management
83
1
207-3
Stakeholder engagement
and management of tax-
related concerns
83
1
207-4
Country-by-country
reporting
84-85, 368
1
302
Energy (2016)
3-3
Management of material
topics
202
302-1
Energy consumption
within the organisation
RT-CH-130a.1, EM-MM-130a.1
(1) Total energy consumed, (2)
percentage grid electricity, (3)
percentage renewable, (4) total self-
generated energy
204-205
2
302-2
Energy consumption
outside of the organization
not applicable
302-3
Energy intensity
204-205
2
302-4
Reduction in electricity
consumption
202
2
302-5
Reductions in energy
requirements of products
and services
There was no significant reduction
in energy consumption
2
303
Water and effluents (2018)
3-3
Management of material
topics
212
303-1
Responsible water
consumption
212
2
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
2
303-3
Water withdrawal
RT-CH-140a.1, EM-MM-140a.1
(1) Total water withdrawn, (2) total
water consumed, percentage of each
in regions with High or Extremely High
Baseline Water Stress
214
2
RT-CH-140a.2, EM-MM-140a.2
Number of incidents of non-
compliance associated with water
quality permits, standards, and
regulations
RT-CH-140a.3
Description of water management
risks and discussion of strategies and
practices to mitigate them
303-4
Water discharge
214-216
2
303-5
Water consumption
215
2
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
304
Biodiversity (2016)
3-3
Management of material
topics
212
304-1
Operational sites owned,
leased, managed in,
or adjacent to, protected
areas and areas of high
biodiversity value outside
protected areas
EM-MM-160a.3
Percentage of (1) proved and (2)
probable reserves in or near sites
with protected conservation status
or endangered species habitat
The Group’s operations are not located in protected
areas or areas of high biodiversity value outside
protected areas
304–2
Significant impacts
of activities, products, and
services on biodiversity
217
2
304-3
Habitats protected
or restored
219
2
304-4
IUCN Red List species
and national conservation
list species with habitats
in areas affected
by operations
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
1011
Biodiversity (2024)
101-1
Policy aimed at halting and
preventing biodiversity
loss
184,217
101-2
Biodiversity impact
management
217, 219
101-4
Identification
of biodiversity impacts
217
101-5
Location of areas with
biodiversity impact
218
305
Emissions (2016)
3-3
Management of material
topics
191, 209
305-1
Direct (Scope 1)
GHG emissions
RT-CH-110a.1, EM-MM-110a.1
Gross global Scope 1 emissions,
percentage covered under emissions-
limiting regulations
196-197
2
RT-CH-110a.2, EM-MM-110a.2
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
190
305-2
Energy indirect (Scope 2)
GHG emissions
197
2
305-3
Other indirect (Scope 3)
GHG emissions
198
Changes have been made to the
data for 2024 and for comparable
periods, including the base year, in
the category of purchased goods
due to adjustments to the carbon
footprint data provided by the
supplier earlier
2
305-4
GHG emissions intensity
197-198
2
305-5
Reduction
of GHG emissions
198
2
1 With full-fledged biodiversity disclosures under the GRI 101 standard expected in 2026,
the Company conducted a pilot disclosure as required by the standard, except for items 101-3, and 101-6 – 101-8.
382
383
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
305-6
Emissions of ozone-
depleting substances
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
RT-CH-120a.1, EM-MM-120a.1
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)
210-211
2
306
Waste (2020)
3-3
Management of material
topics
205
306-1
Waste generation and
significant waste-related
impacts
RT-CH-150a.1
Amount of hazardous waste
generated, percentage recycled
205
2
306-2
Management of significant
waste-related impacts
206
2
306-3
Waste generated
207
2
306-4
Waste diverted from
disposal
EM-MM-150a.1
Total weight of tailings waste,
percentage recycled
EM-MM-150a.2
Total weight of mineral processing
waste, percentage recycled
207
2
306-5
Waste directed to disposal
207
2
308
Supplier environmental assessment (2016)
3-3
Management of material
topics
29
308-1
New suppliers that
were screened using
environmental criteria
140
2
308-2
Negative environmental
impacts in the supply
chain and actions taken
140
2
401
Employment (2016)
3-3
Management of material
topics
401-1
New employee hires and
employee turnover
151, 368
1
401-2
Benefits provided
to full-time employees
that are not provided
to temporary or part-time
employees
162
Benefits established by collective
bargaining agreements apply
to all employees of Company,
its branches, standalone business
units and subsidiaries and
do not depend on conditions
of employment
1
401-3
Parental leave
375
1
402
Labor/Management Relations (2016)
3-3
Management of material
topics
29
EM-MM-310a.2
Number and duration of strikes and
lockouts
No cases
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
EM-MM-210b.2
Number and duration of non-technical
delays
146
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
1
403
Occupational health and safety (2018)
3-3
Management of material
topics
166
403-1
Occupational health
and safety management
system
166, 178
2
403-2
Hazard identification, risk
assessment, and incident
investigation
171
2
403-3
Occupational health
services
168
2
403-4
Worker participation,
consultation, and
communication
on occupational health
and safety
168
2
403-5
Worker training
on occupational health
and safety
178
2
403-6
Promotion of worker
health
177
2
384
385
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
403-7
Prevention and mitigation
of occupational health
and safety impacts
directly linked by business
relationships
177
2
403-8
Workers covered
by an occupational health
and safety management
system
179
2
403-9
Work-related injuries
RT-CH-320a.1
(1) Total recordable incident rate
(TRIR) and (2) fatality rate for (a) direct
employees and (b) contract employees
174
2
RT-CH-320a.2
Description of efforts to assess,
monitor, and reduce exposure
of employees and contract workers
to long-term (chronic) health risks
172
RT-CH-540a.1
Process Safety Incidents Count (PSIC),
Process Safety Total Incident Rate
(PSTIR), and Process Safety Incident
Severity Rate (PSISR)
174
RT-CH-540a.2
Number of transport incidents
176
403-10
Occupational diseases
177
2
404
Training and education (2016)
3-3
Management of material
topics
29
404-1
Average hours of training
per year per employee
155
2
404-2
Programmes
for upgrading employee
skills and transition
assistance programmes
156
2
404-3
Percentage of employees
receiving regular
performance and career
development reviews
158
2
405
Diversity and equal opportunity (2016)
3-3
Management of material
topics
29
405-1
Diversity of governance
bodies and employees
152, 256
1
405-2
Correlation of the standard
entry-level wage and
remuneration of women
and men
160
1
410
Security Practices 2016
3-3
Management of material
topics
29
410-1
Security personnel trained
in human rights policies
or procedures
285
1
Code
GRI Indicator
SASB Indicator
Page number (or link)/Comments
Boundary
413
Local Communities 2016
3-3
Management of material
topics
29
RT-CH-210a.1
Discussion of engagement processes
to manage risks and opportunities
associated with community interests
225
EM-MM-210b.1
Discussion of process to manage risks
and opportunities associated with
community rights and interest
225
413-1
Operations with local
community engagement,
impact assessments, and
development programs
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
2
413-2
Operations with significant
actual and potential
negative impacts on local
communities
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.
More information on page 226
2
414
Supplier Social Assessment 2016
3-3
Management of material
topics
29
414-1
New suppliers that were
screened using social
criteria
140
2
414-2
Negative social impacts
in the supply chain and
actions taken
140
2
417
Marketing and labelling (2016)
3-3
Management of material
topics
95
417-1
Requirements for product
and service information
and labelling
100
1
417-2
Incidents of non-
compliance concerning
product and service
information and labelling
No such cases registered, not
applicable
1
417-3
Incidents of non-
compliance
concerning marketing
communications
No such cases registered, not
applicable
1
386
387
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Pilot disclosure in accordance with
IFRS S1 and S21
IFRS S1
Reporting element
Report page / comments
GOVERNANCE
27 (a) The governance body or individual responsible for oversight of sustainability-related risks and opportunities:
(i) how responsibilities for sustainability-related risks and
opportunities are reflected in the terms of reference, mandates,
role descriptions and other related policies applicable
to governance bodies or individuals
184-186, 272-273
(ii) how the body(s) or individual(s) determines appropriate skills
and competencies are available or will be developed to oversee
strategies designed to respond to sustainability-related risks and
opportunities
257
(iii) how and how often the governance bodies or individuals
are informed about sustainability-related risks and opportunities
272-273
(iv) how the governance bodies or individuals take into account
sustainability-related risks and opportunities when overseeing
the entity’s strategy, its business decisions and its risk
management processes
66-77
(v) how the governance bodies or individuals oversee the setting
of targets related to sustainability-related risks and opportunities,
and monitor progress towards those targets, including
whether and how related performance metrics are included
in remuneration policies
48-49, 277-281
27(b) Management’s role in the governance processes, controls and procedures used to monitor, manage and oversee sustainability-related
risks and opportunities, including information about:
(i) whether the role is delegated to a specific management-level
position or management-level committee and how oversight
is exercised over that position or committee
132, 146, 166, 186, 224, 272-273
(ii) whether management uses controls and procedures
to support the oversight of sustainability-related risks and
opportunities and, if so, how these controls and procedures
are integrated with other internal functions
132, 146, 166, 186, 224
STRATEGY
30(a) Sustainability-related risks and opportunities that could
reasonably be expected to affect the entity’s prospects
66-75, 97, 110, 134, 149, 171, 189, 225
32(a) a description of the current and anticipated effects of
sustainability-related risks and opportunities on the entity’s
business model and value chain
360-366
33(a) How the entity has responded to, and plans to respond to,
sustainability-related risks and opportunities in its strategy and
decision-making
65-75
Reporting element
Report page / comments
33(b) The progress against plans the entity has disclosed
in previous reporting periods, including quantitative and
qualitative information
Strategy–2025 — 50-53
Research, innovations and education — 106-107
Customers and product management — 92-93
Supply chain — 128-129
People development — 142-143
Industrial safety — 164-165
Environmental review — 182-183
Contributing to local communities — 220-221
RISK MANAGEMENT
44(a) The processes and related policies the entity uses
to identify, assess, prioritise, and monitor sustainability-related
risks, including information about:
For the most part, information related to the management of key
risks and opportunities is disclosed
(i) the inputs and parameters the entity uses
151, 174-176
(iii) how the entity assesses the nature, likelihood and magnitude
of the effects of those risks
66-75
(iv) whether and how the entity prioritises sustainability-related
risks relative to other types of risk
66-68
(v) how the entity monitors sustainability-related risks
202, 212
METRICS AND TARGETS
46(a) Metrics for each sustainability-related risk and opportunity
that could reasonably be expected to affect the entity’s prospects
Research, innovations and education — 110-127
Customers and product management — 96-105
Supply chain — 134-141
People development — 150-163
Industrial safety — 172-181
Energy efficiency — 203-205
Waste — 205-208
Air — 209-211
Water — 212-216
Biodiversity — 217-219
Contributing to local communities — 226-245
46(b) Metrics the entity uses to measure and monitor
a sustainability-related risk or opportunity; and its performance
in relation to that sustainability-related risk or opportunity,
including progress towards any targets the entity has set, and
any targets it is required to meet by law or regulation
Research, innovations and education — 106-107
Customers and product management — 92-93
Supply chain — 128-129
People development — 142-143
Industrial safety — 164-165
Energy efficiency — 201
Waste — 205
Air — 208
Water — 212
Biodiversity — 216
Contributing to local communities — 220-221
1 The tables below only provide disclosures made in this report in accordance with the standard. The Company continues to improve its governance, accounting, and
risk management systems to disclose the remaining elements of the standard in future reporting periods.
388
389
Company profile
Strategic report
Corporate governance
Share capital
Appendices
Performance review
Reporting element
Report page / comments
51(a) Metric used to set the target and to monitor progress
towards reaching the target
Research, innovations and education — 106-107
Customers and product management — 92-93
Supply chain — 128-129
People development — 142-143
Industrial safety — 164-165
Energy efficiency — 201
Waste — 205
Air — 208
Water — 212
Biodiversity — 216
Contributing to local communities — 220-221
51(b) The specific quantitative or qualitative target the entity has
set or is required to meet
Research, innovations and education — 106-107
Customers and product management — 92-93
Supply chain — 128-129
People development — 142-143
Industrial safety — 164-165
Energy efficiency — 201
Waste — 205
Air — 208
Water — 212
Biodiversity — 216
Contributing to local communities — 220-221
51(c) The period over which the target applies
52-53
The company has set goals for the period up to 2025:
• for environmental indicators (air, water, waste);
• for indicators in the field of occupational safety and industrial
safety;
• for indicators in the field of social responsibility (personnel
development)
51(f) Performance against each target and an analysis of trends
or changes in the entity’s performance
Research, innovations and education — 106-107
Customers and product management — 92-93
Supply chain — 128-129
People development — 142-143
Industrial safety — 164-165
Energy efficiency — 203-205
Waste — 205-208
Air — 209-211
Water — 212-216
Biodiversity — 217-219
Contributing to local communities — 220-221
The relevant thematic sections provide an analysis of the dynamics of
indicators and a description of activities that contribute to achieving
the targets.
IFRS S2
Reporting element
Report page / comments
GOVERNANCE
6 (а) The governance bodies or individuals responsible for oversight of climate-related risks and opportunities:
(i) how responsibilities for climate-related risks and opportunities are reflected in the terms of reference,
mandates, role descriptions and other related policies applicable to those governance bodies
or individuals
184-186, 272-273
(ii) how the governance bodies or individuals determine whether appropriate skills and competencies
are available or will be developed to oversee strategies designed to respond to climate-related risks and
opportunities
257
(iii) how and how often the governance bodies or individuals are informed about climate-related risks and
opportunities
272-273
(v) how the governance bodies or individuals oversee the setting of targets related to climate-related
risks and opportunities, and monitor progress towards those targets, including whether and how related
performance metrics are included in remuneration policies
48-49, 200, 277-288
6(b) Management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks
and opportunities, including information about:
(i) whether the role is delegated to a specific management-level position or management-level committee
and how oversight is exercised over that position or committee
186, 272-273
(ii) whether management uses controls and procedures to support the oversight of climate-related
risks and opportunities and, if so, how these controls and procedures are integrated with other internal
functions
184-185, 188
STRATEGY
9(a) Climate-related risks and opportunities that could reasonably be expected to affect the entity’s
prospects
193
TCFD, 18-24
9(c) The effects of those climate-related risks and opportunities on the entity’s strategy and decision-
making, including information about its climate-related transition plan
74
TCFD, 24-30
10(a) Climate-related risks and opportunities that could reasonably be expected to affect the entity’s
prospects
193
10(b) Explain, for each climate-related risk the entity has identified, whether the entity considers the risk
to be a climate-related physical risk or climate-related transition risk
TCFD, 20-23
10(с) Specify, for each climate-related risk and opportunity the entity has identified, over which time
horizons (short, medium or long term) the effects of each climate-related risk and opportunity could
reasonably be expected to occur
TCFD, 34-35
10(d) Explain how the entity defines ‘short term’, ‘medium term’ and ‘long term’ and how these definitions
are linked to the planning horizons used by the entity for strategic decision-making.
TCFD, 18
14 (a) Information about how the entity plans to achieve any climate-related targets it has set and any targets it is required to meet by law
or regulation:
(ii) current and anticipated direct mitigation and adaptation efforts
195-196
(iii) current and anticipated indirect mitigation and adaptation efforts
195-196
(iv) any climate-related transition plan the entity has, including information about key assumptions used
in developing its transition plan, and dependencies on which the entity’s transition plan relies
192
(v) how the entity plans to achieve any climate-related targets, including any greenhouse gas emissions
targets
190-192
14(b) Information about how the entity is resourcing, and plans to resource, the activities disclosed
in accordance with paragraph 14(a)
The Company has
a dedicated budget
for climate-related initiatives
14(c) Quantitative and qualitative information about the progress of plans disclosed in previous reporting
periods in accordance with paragraph 14(a)
190, 196-200
22(a) Information that enables users to understand the resilience of the entity’s strategy and business model to climate-related changes,
including:
(i) the implications, if any, of the entity’s assessment for its strategy and business model, including how
the entity would need to respond to the effects identified in the climate-related scenario analysis
190-192
22(b) Indicate how and when the climate-related scenario analysis was carried out
TCFD, 24
1 The tables below only provide disclosures made in this report in accordance with the standard. The Company continues to improve its governance, accounting, and
risk management systems to disclose the remaining elements of the standard in future reporting periods.
390
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Reporting element
Report page / comments
RISK MANAGEMENT
25 (a) The processes the entity uses to identify, assess, prioritise and monitor climate-related risks, including information about:
(i) the inputs and parameters the entity uses
(ii) whether and how the entity uses scenario analysis to inform its identification of climate-related risks
194
(iv) whether and how the entity prioritises climate-related risks relative to other types of risk
66-68
(v) how the entity monitors climate-related risks
TCFD, 20-23
(vi) whether and how the entity has changed the processes it uses compared with the previous reporting
period
The approaches to
risk identification and
assessment have not
changed with respect to the
materials presented in the
TCFD report
25(b) The processes the entity uses to identify, assess, prioritise and monitor climate-related opportunities,
including information about whether and how the entity uses climate-related scenario analysis to inform
its identification of climate-related opportunities
TCFD
METRICS AND TARGETS
29(a) Information relevant to the cross-industry metric categories of greenhouse gases, including:
(i) absolute gross greenhouse gas emissions (Scope 1, 2 and 3) generated during the reporting period,
expressed as metric tonnes of CO2 equivalent
196-198
(ii) measurements of greenhouse gas emissions in accordance with the Greenhouse Gas Protocol
196-198
(iii) approach used to measure greenhouse gas emissions
196-198
29(e) The amount of capital expenditure, financing or investment deployed towards climate-related risks
and opportunities
187, 203
29(f) Information on whether the entity applies internal carbon prices
194
29(g) Information on remuneration, including:
(i) a description of whether and how climate-related considerations are factored into executive
remuneration
278
33(a) Metric used to set the climate-related target
190
33(c) The part of the entity to which the target applies
Boundary 2 – Apatit,
including its branches and
standalone business units
33(d) The period over which the target applies
Until 2028
33(e) The base period from which progress is measured
190
Progress in reducing gross
greenhouse gas emissions
(coverage scope 1, 2, 3) is
calculated by the base year
2018
33(g) Information on whether the quantitative target is an absolute target or an intensity target
182
34(b) The entity’s processes for reviewing the target
196
TCFD
34(c) The metrics used to monitor progress towards reaching the target
190, 196
35 Information about the entity’s performance against each climate-related target and an analysis
of trends or changes in the entity’s performance
190-200
36(a) Which greenhouse gases are covered by the target
190
36(b) Whether Scope 1, Scope 2 or Scope 3 greenhouse gas emissions are covered by the target
190
TCFD REPORT
For more information on GHG emissions
and climate risks, see the TCFD report 2020
Sustainable development indicators
content index as per the Order
of the Ministry of Economic
Development of Russia
No.
Indicator
Page number/Comments
Boundary
Economic
MED 1
Revenue (or a similar indicator), RUB’000
79
1
MED 2
Added value, RUB’000
79
1
MED 3
Net added value, RUB’000
79
1
MED 4
Total R&D expenses, RUB’000
111
1
MED 5
Labour productivity, RUB’000 per person
151
2
MED 6
Total accrued payments to government (except for fines
and penalties), including, RUB’000:
• Taxes and other charges
• Social contributions
• Other payments to government
84
1
MED 7
Total actual payments to government (except for fines
and penalties), including, RUB’000:
• Taxes and other charges
• Social contributions
• Other payments to government
84
1
MED 8
Share of Russian goods, work and services in the total
procurement volume, %
138
2
MED 9
Share of goods, work and services purchased from
SME in the total procurement volume from Russian
organizations, %
138
2
1 Order of the Ministry of Economic Development of Russia No. 764 dated 1 November 2023.
392
393
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Performance review
No.
Indicator
Page number/Comments
Boundary
MED 10
Sustainable investments (including green investments),
RUB’000
The indicator is not measured
MED 11
Investments into projects aimed at promoting
the technological sovereignty and the structural
adaptation of the Russian economy, RUB’000
MED 12
Index of economic vulnerability of business and other
activities to climate risks, %
Environmental
MED 13
Water consumption from all sources of water supply
215
2
MED 14
Recycled and recirculated water supply
215
2
MED 15
Total waste water discharged, including untreated waste
water
214-216
2
MED 16
Water use efficiency (water use per unit of product)
214
2022 – 0,0007614
2023 – 0,0010362
2024 – 0,0009047
2
MED 17
Total hazard class 1-5 waste generation, including:
• Class 1
• Class 2
• Class 3
• Class 4
• Class 5
207
2
MED 18
Total hazard class 1-5 waste handled, including:
• Disposed waste
• Decontaminated waste
• Buried waste
• Reused waste
• Recycled waste
• Reduction in waste generation
207
2
MED 19
Emission load from stationary pollution sources
210-211
2
MED 20
Greenhouse gas emissions
198
2
MED 21
Total expenses for environmental activities, including:
• Atmospheric air protection and climate change
prevention
• Waste water collection and treatment
• Waste management
• Conservation of biodiversity and protection of natural
areas
187, 188
2
MED 22
Consumption of renewable and low-carbon energy
204
Consumption of renewable and
low-carbon energy, kWh
Consumption of renewable and
low-carbon energy, %
2022 – 1.26%
2023 – 1.24%
2024 – 1.22%
2
MED 23
Energy efficiency: electricity consumption per unit of net
added value
204
2022 – 7.404
2023 – 11.041
2024 – 10.152
2
Social
MED 24
Total payroll expenses, RUB’000
81
2
MED 25
Total average headcount, including disabled employees,
people
151, 153
2
No.
Indicator
Page number/Comments
Boundary
MED 26
Total average monthly pay, RUB’000 including:
• By occupation group
• By gender
• By age group
160, partial disclosure
1
MED 27
Total health and safety expenses, including average costs
per employee, RUB’000
173, partial disclosure
2
MED 28
Expenses on organising and holding social, fitness,
recreational, and healthcare activities for employees and
their families, RUB’000, %
370
2
MED 29
Number of persons injured as a result of industrial
accidents where lost time of one or more days
was involved, including fatalities, people, %
174-176
Information about the parameters used to calculate the
indicators can be found in the corresponding section
MED 30
Total training expenses, including average costs per
employee, RUB’000
155
2
MED 31
Average training hours per year per employee
by occupation group, units
155
2
MED 32
Share of employees covered by collective bargaining
agreements in total average headcount, %
147
2
MED 33
Turnover, %
368-371
1
MED 34
Total expenses on supporting social programmes
not aimed at employees and their families, including,
RUB’000, %
• Charity
• Housing
• Healthcare
• Education
• Support of people in need of social assistance
228
1
Governance
MED 35
Availability of a sustainable development policy and/
or other strategic documents in this area
The principles of sustainable
development are integrated into
PhosAgro’s Strategy 2025. The
Company has adopted Climate and
Water Strategies. The rest of the
corporate documents in the field of
sustainable development can be found
on the Company’s website in the
Documents section of the Sustainable
Development section
1
MED 36
Number of Board of Directors meetings and
the attendance rate
255
1
MED 37
Total number of directors, including age structure
256
1
MED 38
Number of the Audit Committee meetings and
the attendance rate
255, 268
1
MED 39
Inclusion into sustainable development (ESG) indices and
ratings, number
20
1
MED 40
Number of reported violations of the rights of indigenous
peoples living in the Russian Federation
Not applicable
MED 41
Share of employees filling positions exposed to high
corruption risks, %
292
1
MED 42
Average hours of anti-corruption training per employee,
units
293
1
MED 43
Number of administrative proceedings against
the Company, its subsidiaries and affiliates for corruption
offences
The company has not been held
accountable for corruption violations
(three years)
1
MED 44
Share of female managers in the total number
of managers, including members of the Board
of Directors (Supervisory Board)
153
1
394
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Performance review
Indicators of the RESPONSIBILITY
AND TRANSPARENCY and
SUSTAINABLE DEVELOPMENT
VECTOR indices of the Russian Union
of Industrialists and Entrepreneurs
(RSPP)
RSPP indicator
Page
METRICS AND INDICATORS OF THE RESPONSIBILITY AND TRANSPARENCY INDEX
Economic, social, and environmental impact indicators
1. Labour productivity
Indicator 1: Labour productivity
151
2. CAPEX
Indicator 2: CAPEX/investments
61
3. Taxes paid
Indicator 3: Taxes paid (payments to government, including excise taxes and export duties, current income tax, and
other taxes)
83-85
4. Quality of products and services
92
Indicator 5: Customer satisfaction (customer satisfaction surveys, claims/returns dynamics, customer loyalty
measurements, etc.)
104
5. Share of local procurement and procurement from SMEs
128
Indicator 6: Share of local procurement
138
Indicator 7. Procurement from SMEs
138
6. Innovations
106
Indicator 8: R&D expenses
111
Indicator 10: Economic and environmental impact of innovations
112-120
7. Headcount
Indicator 12: Headcount (average or total at the end of the reporting period)
151
8. Personnel profile
150
Indicator 13: Personnel breakdown by gender
152
Indicator 14: Personnel breakdown by age
152
Indicator 15: Personnel breakdown by category
152
Indicator 16: Share of female managers in the total number of managers
153
Indicator 17: Share of employees with disabilities
153
9. Occupational health and safety (performance)
164
Indicator 18: Lost time injury frequency rate (LTIFR)
174
Indicator 19: Fatalities
174
Indicator 20: Occupational diseases
177
RSPP indicator
Page
10. Occupational health and safety expenses
Indicator 21: Occupational health and safety expenses
173
11. Occupational health and safety management systems
164
12. Payroll
Indicator 24: Personnel expenses (payroll and social payments)
370
Indicator 26: Average wages (main)
160
Indicator 27: Average wages at the Company’s facilities as compared to local average wages / Comparative figures
for minimum wages
160
13. Expenses related to social programmes for employees
Indicator 28: Expenses related to social programmes for employees
370
15. Management remuneration
276
Indicator 30: Remuneration of the Board of Directors / Supervisory Board
276
Indicator 31: Remuneration of the Management Board
278
16. Employee turnover
Indicator 32: Employee turnover rate
151
17. Personnel training
155
Indicator 33: Hours of training per year per employee
155
Indicator 34: Number of employees trained
155
18. Personnel training expenses
Indicator 35: Personnel training expenses
154
19. Labour relations
Indicator 36: Share of employees covered with collective bargaining agreements
Collective
agreements
cover 100% of the
employees of Apatit
JSC, its branches and
separate divisions
20. Protecting human rights
290
Indicator 38: Human rights monitoring results
289
21. Emissions into the atmosphere
208
Indicator 39: Gross air emissions of major pollutants, including their type and weight
210-211
Indicator 40: Specific air emissions of major pollutants, including their type and weight
209
22. Greenhouse gas emissions
196
Indicator 41: Gross direct and indirect GHG emissions with weight values
196-198
Indicator 42: Specific direct and indirect GHG emissions with weight values
190
23. Energy efficiency and consumption
201
Indicator 43: Specific energy intensity
205
Indicator 44: Energy saved (in physical terms)
204-205
Indicator 45: Economic effect of energy saving
201
Indicator 46: Fuel and energy consumption
204-205
Indicator 47: Consumption of renewable and low-carbon energy
182
24. Water consumption
212
Indicator 48: Total water withdrawal per year
214
Indicator 49: Specific water consumption
212
Indicator 50: Recycled and recirculated water supply
215
1 The indicator is relevant for financial market entities. It is used instead of indicator 25, which is irrelevant for such entities.
The indicator is not applicable for entities operating in other industries.
396
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RSPP indicator
Page
25. Discharge into water bodies
214
Indicator 51: Total waste water discharge
214-215
Indicator 52: Specific discharge
212
26. Waste management
205
Indicator 53: Total hazard class I–V waste broke down by class
207
Indicator 54: Waste generation
208
Indicator 55: Share of decontaminated and landfilled waste
207
Indicator 56: Share of recycled waste
207
27. Environmental protection expenses
Indicator 57: Environmental protection expenses
187
29. Recording and assessing environmental risks of financed projects
Indicator 59: Green project financing
The indicator
is relevant
for financial
institutions.
30. Financing environmental initiatives and programmes1
Indicator 60: Funds allocated to finance initiatives and programmes under Resolution of the Russian Government
No. 1587 dated 21 September 2021 (green and adaptation projects)
The indicator
is relevant
for financial
institutions.
31. Cybersecurity
284
Indicator 62: Banking service downtime due to cyberattacks
The indicator
is relevant
for financial
institutions.
32. Social investment
220
Indicator 63: Investment in social programmes aimed at developing local communities
220-245
Indicator 64: Charity spending
220-245
Indicator 65: Number of beneficiaries under external social programmes
220-245
Indicator 67: Breakdown of charity spending / investment in social programmes aimed at developing local
communities
220-245
Management and engagement indicators
33. Board of Directors / Supervisory Board: structure, independence, core activities, performance assessment
254-259
34. Top management’s engagement in corporate social responsibility and sustainability management
249-250, 254
35. Including sustainability risks in the key risk management system, and measures to reduce sustainability risks
66-77
36. Climate risk identification and assessment
193
37. New opportunities in sustainable development
110, 149, 171, 189, 225
38. Adoption of an ethics code, its key principles and implementation mechanisms
286-288
39. Anti-corruption: policy, mechanisms, measures, results
286-288
40. Adoption of a corporate policy on sustainability (corporate social responsibility): contents, document link
Corporate
documents in the
field of sustainable
development are
available on the
Company’s website
41. Detailed reflection of approaches to sustainability (corporate social responsibility) in corporate policies
Corporate
documents in the
field of sustainable
development are
available on the
Company’s website
42. Sustainability (corporate social responsibility) management along the supply chain: policies, mechanisms,
indicators
138-141
RSPP indicator
Page
43. Inclusion of sustainability (corporate social responsibility) KPIs in the Company’s strategic KPI system
276-278
44. Sustainability (corporate social responsibility) management structure
250
45. Focus areas and formats of interaction with the government, key programmes/projects
227
46. Focus areas and formats of interaction with communities, key projects
220-245
SUSTAINABLE DEVELOPMENT VECTOR INDEX INDICATORS
1) labour productivity;
151
2) occupational health and safety;
164
3) payroll and expenses related to social programmes for employees;
158-163
4) employee turnover;
151
5) personnel training;
154
6) air pollutant emissions;
208-211
7) greenhouse gas emissions;
196-198
8) energy consumption and efficiency;
200-205
9) water consumption and discharge into water bodies;
212-216
10) waste management;
205-208
11) social investment;
220-221
12) management (top management’s engagement in sustainability management);
248-250
13) risk and opportunity management;
110, 149, 171, 189, 225
14) commitment to sustainability / corporate social responsibility.
48, 52-53
398
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Glossary
ABNT (Associação Brasileira
de Normas Técnicas) – Brazilian
Association of Technical Standards
ACRA – Russian rating agency
AN – ammonium nitrate
ANBP – apatite-nepheline
beneficiation plant
APP – ammonium polyphosphate
bln – billion
bps – basis point
BRICS – an association of ten
countries: Brazil, Russia, India, China,
South Africa, the UAE, Iran, Egypt,
Ethiopia and Indonesia (BRICS –
an abbreviation for Brazil, Russia, India,
China and South Africa)
CAPEX – capital expenditures
CBAM – Carbon Border Adjustment
Mechanism
CCI – Chamber of Commerce and
Industry of Russia
CDP – Carbon Disclosure Project
CGC – Corporate Governance Code
of the Bank of Russia
CIS – Commonwealth of Independent
States
CO2 – carbon dioxide
CO2-eq. – a conventional unit
used to measure greenhouse gas
emissions (including carbon footprint
calculations).
CUSIP – Committee on Uniform
Security Identification Procedures
DAP – diammonium phosphate
EBITDA – earnings before interest,
taxes, depreciation and amortisation
EBP – electronic bidding platform
ESG – environmental, social and
governance
Expert RA – Russia’s largest credit
rating agency accredited by the Bank
of Russia
FAO – Food and Agriculture
Organisation
FOB (Free on Board) – Incoterms
shipment term used to specify delivery
conditions and determine which party
is responsible for transportation costs
GDR – global depositary receipt
Global Compact LEAD – a platform
for sustainable corporate leadership
under the United Nations Global
Compact
GRI – Global Reporting Initiative
ha – hectare
IFA – International Fertilizer
Association
IFRS S1 and S2 (International
Financial Reporting Standards
S1 and S2) – sustainability
standards published in June 2023
by the International Sustainability
Standards Board (ISSB)
IFRS – International Financial
Reporting Standards
IRR – internal rate of return
ISIN – international securities
identification number
IT – information technology
IUPAC — International Union of Pure
and Applied Chemistry
JSC – joint-stock company
K2O – potassium oxide
kg – kilogram
KPI – key performance indicator
kWh – kilowatt-hour
LLC – limited liability company
LTIFR – lost-time injury frequency rate
m – metre
MAP – monoammonium phosphate
MAR – Market Abuse Regulation
of the European Union
MCP – feed grade monocalcium
phosphate
mg – milligram
mln – million
MOEX Index (formerly the MICEX
Index) – a price-based composite
stock index weighted by market
capitalisation. Ticker – MCX: IMOEX.
The derivatives market of the Moscow
Exchange trades in non-deliverable
futures contracts with the MOEX Index
as the underlying asset.
MW – megawatt
n/a – no data available
NP – nitrogen-phosphorus fertilizer
NPK – nitrogen-phosphorus-
potassium fertilizer
NPS – sulphur-containing nitrogen-
phosphorus fertilizer
OJSC – open joint-stock company
p.p. – percentage point
P2O5 – phosphoric pentoxide
PhosAgro Group – PJSC PhosAgro
and legal entities controlled by it
PJSC – public joint-stock company
PKS – phosphorus-potassium granular
fertilizer
RAEX (RAEX Analytics) – Russia’s
largest non-credit rating agency
RAFP– Russian Association of Fertilizer
Producers
RAS – Russian Accounting Standards
RIC – Reuters Instrument
(Identification) Code
RSPP – Russian Union of Industrialists
and Entrepreneurs
RTS – Russian Trading System,
one of the leading Russian stock
exchanges until December 2011,
when it merged with MICEX to form
the MICEX-RTS exchange (Moscow
Exchange since 2012). RTS Index
(MCX: RTSI) – stock market index and
the main benchmark for the Russian
stock market. Its calculation began
on 1 September 1995 with a base value
of 100 points. Currently, the RTS Index
is calculated by the Moscow Exchange.
Denominated in US dollars, it shares
a common calculation base with
the MOEX Index, which is measured
in Russian roubles.
RUB – Russian rouble
SDG – UN Sustainable Development
Goal
SEDOL – Stock Exchange Daily Official
List used in the UK and Ireland
SPIEF – St Petersburg International
Economic Forum
STPP – sodium tripolyphosphate
Strategy to 2025 – PhosAgro’s
Development Strategy to 2025
TCFD – Task Force on Climate-related
Financial Disclosures
Total volume of manufactured
products and semi-finished
products – the total volume of
manufactured products and semi-
finished products corresponds to the
amount of the Company’s products
produced during the reporting period,
including mineral fertilizers, feed,
technical phosphates and industrial
products, apatite and nepheline
concentrates
UN – United Nations
UNCTAD – United Nations Conference
on Trade and Development, a body
of the UN General Assembly
UNESCO – United Nations Educational,
Scientific and Cultural Organisation
USA – United States of America
USD – United States dollar
VAT – value-added tax
WPA – wet-process phosphoric acid
400
401
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Contacts
PJSC PhosAgro address
55/1 Leninsky Prospekt, bldg. 1,
Moscow, 119333, Russia
Tel.: +7 (495) 232 96 89
Fax: +7 (495) 956 19 02
Registrar
JSC Reestr
20 B. Balkansky Lane, bldg. 1,
Moscow, 129090, Russia
Tel.: +7 (495) 617 01 01
Fax: +7 (495) 680 80 01
Email: reestr@aoreestr.ru
Website: www.aoreestr.ru
Investor Relations
Andrey Serov
Head of Investor Relations
Tel.: +7 (495) 231 31 15
Email: ir@phosagro.ru
Contacts for employees
and potential employees
Dmitry Borodich
HR and Social Policy Director
Tel.: +7 (495) 231 31 15
Email: info@phosagro.ru
Contacts for media
Andrey Podkopalov
Director of Information Policy
Tel.: +7 (495) 232 96 89, ext. 2651
Timur Belov
Press Officer
Tel.: +7 (495) 232 96 89, ext. 2652
Email: pr@phosagro.ru
Sustainability contacts
Sergey Kudryashov
Head of Sustainable Development
Department
Tel.: +7 (495) 231 27 47
Email: esg@phosagro.ru
Irina Lukina
Senior specialist, Sustainable
Development Department
Tel.: +7 (495) 232 96 89
Email: esg@phosagro.ru
Corporate Secretary
Sergey Samosyuk
Tel.: +7 (495) 232 96 89, ext. 2712
Email: ks@phosagro.ru
Auditors
JSC Technologies
of Trust – Audit
14 Krzhizhanovsky street, bldg. 3, office
5/1, Moscow 125047, Russia
Tel.: +7 (495) 967 60 00
Fax: +7 (495) 967 60 01
Website: www.tedo.ru
JSC Unicon
8 Preobrazhenskaya Ploshchad, Preo
8 Business Centre, Moscow 107061,
Russia
Tel.: +7 (495) 797 56 65
Fax: +7 (495) 797 56 60
Website: www.unicon.ru
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