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Uralkali publishes 2019 ESG Report

29.06.2020

PJSC Uralkali (the Company; Uralkali, Moscow Exchange: URKA), one of the worlds largest potash producers, today announces the publication of its 2019 ESG Report. The full report is available at link.

The Report, which has been assured by an independent third party, covers all areas related to the responsible operation and sustainable development of Uralkalis business in the interest of all of the Companys stakeholders. In particular, it includes an overview of Uralkalis Sustainable Development Strategy, which was reviewed and enhanced during the reporting period, its progress towards its 2022 environmental targets, its plans to improve transparency and reporting around its sustainability initiatives and the Companys broader role in providing global food security.

Report highlights:

Enhanced Sustainable Development Approach

Uralkali takes a proactive approach to managing Sustainable Development and in 2019 established a Working Group on Sustainable Development led by Dmitry Osipov, CEO, and including the heads of all the Companys divisions. The Companys enhanced Environmental, Social and Governance (ESG) strategy focuses on four main areas: reducing negative environmental impact, ensuring the health and wellbeing of employees, sustainable economic development, and stakeholder engagement.

Following a comprehensive assessment of existing ESG practices, in 2019 Uralkali developed a 2020-2021 Sustainable Development Roadmap that reflects the Companys sustainability priorities.

The Company also confirmed its alignment to seven of the UN Sustainable Development Goals (SDGs): Goal 2: Zero Hunger; Goal 3: Good health and Wellbeing; Goal 6: Clean Water and Sanitation; Goal 8: Decent Work and Economic Growth; Goal 9: Industry, Innovation and Infrastructure; Goal 12: Responsible Consumption and Production; and Goal 13: Climate Action.

Progress towards achieving Uralkalis 2022 environmental goals in 2019

  • Uralkali has set a goal of reducing water intake by 10% 2017-2022, and has achieved a 9.8% reduction of water intake to date (down 8.4% y-o-y in 2019)
  • Energy consumption reduced by 6.5% 2017-2019 (down 6% y-o-y); well on track to meet the Companys target of energy consumption reduction by 10% from 2017 by 2022
  • Energy intensity levels reduced by 2.6% y-o-y
  • Specific direct GHG emissions (greenhouse gas emissions) decreased by 9.4% y-o-y
  • US$ 76.8 million allocated towards specific environmental protection initiatives over the course of the reporting period

Commitment to best-in-class corporate policies and reporting

  • Uralkali aims to follow the best international corporate governance standards. Sustainable development management is integrated into the corporate governance system and delegated at all levels of the Companys management
  • Uralkali is conducting a full review of its internal documents regulating the management of various ESG issues, under this review the Human Rights Policy was developed and approved in 2020
  • The Company is committed to increasing its level of disclosure on ESG matters, and in 2019 initiated dialogues with leading ESG ratings agencies

Addressing global issues

  • Uralkalis mission as one of the key players in the fertilizer industry is to provide global food security through promoting the efficient and responsible production and use of potash fertilizers. The Company runs regular educational projects for farmers to help them achieve higher crop yields, prioritizing countries where the issue of food security is most critical
  • COVID-19: Uralkali is taking a proactive and comprehensive approach to minimising the risk of coronavirus infection to its employees, partners and local communities

Dmitry Osipov, Uralkali CEO, commented:

I am pleased to present Uralkalis 2019 ESG Report, which has been approved by the Board of Directors. The Report outlines our strong progress and achievements in 2019, as well as our enhanced Sustainable Development focus and strategy. In particular, I would like to highlight that in 2019 we worked with independent experts to complete a comprehensive review of the Companys ESG practices, leading to the development of a roadmap that will ensure that we continue to improve our ESG management over the forthcoming years.

Uralkali is committed to being a leader in Sustainable Development  this encompasses not only how we responsibly operate our business and address the interests of our immediate stakeholders, but also our commitment to playing an active role in helping address the critical issue of global food security by working with some of the worlds most affected communities.

In 2020 the unprecedented COVID-19 pandemic has reminded us of our vulnerability to disease and the importance of addressing health as part of social development. Whilst we continue to put the safety and wellbeing of our employees and local communities first during this challenging time, Uralkali recognises the need for organisations such as ourselves to take greater positive action to protect our planet for future generations. We remain focused on proactively addressing all of our sustainability priorities of health and safety, environmental protection, sustainable economic development and stakeholder engagement, and aim to keep our stakeholders informed on progress across all of these areas.

Uralkali (www.uralkali.com) is one of the worlds largest potash producers and exporters. The Companys assets consist of 5 mines and 7 ore treatment plants in the towns of Berezniki and Solikamsk (Perm Region, Russia). Uralkali employs more than 12,000 people in the main production unit.

CORPORATE SOCIAL RESPONSIBLIITY POLICY OF OJSC "URALKALI"

OJSC "Uralkali" (OJSC "Uralkali", Company,) is one of the world’s leading potash producers. Our aim is to produce potash fertilizers to satisfy the worldwide demand for the high-quality food; we develop potash deposits in an efficient and responsible manner in order to ensure continuous development of the Company.

We follow the principles of social responsibility and we know how important it is to respect the interests of all our stakeholders (employees, partners, investors, shareholders, government authorities, public organizations, the media and the residents of the regions of Uralkalis corporate presence). We know that, as a large industrial company, we are expected to be reliable, open and stable. We aspire to fully meet these expectations in full by consistently implementing the strategy of sustainable development.

Planning our work for years ahead, we care about the well-being of the future generations and honor the obligations that we have undertaken voluntarily:

  • Securing the well-being and personal development of our employees;
  • Taking into account the unique social features of the regions where we work both when solving current problems and when making decisions regarding the Companys new projects;
  • Taking all necessary actions in order to reduce the negative impact on the safety, health and living conditions of our employees, partners and residents of the territories of Uralkalis corporate presence;
  • Maintaining an open dialogue with all the Companys stakeholders, regularly informing all interested parties of the situation in the Company and the status of the actions taken in order to reduce and eliminate environmental and social risks;
  • Taking into account the opinions of the stakeholders when making decisions in the sphere of industrial, environmental and social safety when realizing current and future projects.

Our social policy serves as a guide for each employee of OJSC "Uralkali" and it is reflected in all our programs and plans. We understand how important it is to fulfill our obligations in a full and timely way and we are committed to finding a balance between the interests of the Company, its employees and other stakeholders. We believe that this balance is the only true foundation for the harmonious growth and development of OJSC "Uralkali" and society as a whole.

URALKALIs Health, Safety and Environment Policy

OJSC “Uralkali” aims to be a leader in every aspect of its operations.

Health, safety and environment are key priorities for us and serve as a framework for every action and decision we make, irrespective of the type of activity.

We fully realise that no achievement or economic benefit may justify death of people or damage to human health and the environment of our planet. Each and every employee of OJSC Uralkali has the right to be provided with safe and comfortable conditions of labour. With that, the Company expects that every employee will strictly abide by safety regulations and will demonstrate responsible attitude towards own and fellow colleagues life and health. Only through maintaining a mutually responsible behaviour in health, safety and environment will we be able to achieve a greater level of development for our business.

Our goals are very simple and clear:

  • Zero accidents;
  • Zero industrial emergencies;
  • Reduction of environmental impact.

To achieve these goals and to ensure the maximum compliance with legal and regulatory requirements, we must create a health, safety and environment management system based on established standards.

An efficient management and continuous improvement of the corporate health and safety culture will enable us to gain significant progress in preventing and/or mitigating HSE-related issues.

We strongly believe that a successful implementation of these efforts will create conditions for the sustainable development of OJSC Uralkali.

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