Moscow – The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, has approved the Company’s draft budget for next year.
Commenting on the results of the meeting, Andrey Guryev, PhosAgro’s CEO and a member of the Company’s Board of Directors, said: “the Company’s approved budget reflects PhosAgro’s commitment to bolstering its status as one of the most efficient producers of mineral fertilizers in the global industry and to continuing its steady development by further expanding the Company’s production capacities and solidifying its vertical integration.
“The total volume of capital investment for next year is expected to be around RUB 41.5 billion (excluding capital repairs). Key projects include further development of mining operations; construction in Volkhov of a state-of-the-art phosphate-based fertilizers production facility and supporting infrastructure, including a power plant; implementation of the second stage of development at the Balakovo branch of PhosAgro; and the development of aluminium fluoride capacities in Cherepovets.”
The Board of Directors also approved the Company’s climate and water strategies and adopted a low-carbon transition plan as the basis. The main focal areas in terms of reducing greenhouse gas emissions include cutting the Company’s own emissions and emissions throughout the value chain, as well as implementing energy-efficiency measures at the Company’s production and infrastructure facilities.
In addition, the Board of Directors approved an updated list of the Company’s priority UN Sustainable Development Goals (SDGs). In line with the Company’s adoption of a carbon strategy and low-carbon transition plan, SDG 13 (climate action) was added to the 10 goals the Company had previously approved.
According to Irina Bokova, an independent member of PhosAgro’s Board of Directors and Chair of the Company’s Sustainable Development Committee, “the Company’s adoption of climate and water strategies, as well as a low-carbon transition plan, and the increase in the number of priority SDGs confirm that environmental responsibility and the fight against climate change are an integral part of the Company’s day-to-day operations.
“The investment programme aimed at modernisation and production efficiency is designed with the Company’s environmental footprint in mind, which will enable the Company to reduce its direct greenhouse gas emissions. There is still a great deal to be done: PhosAgro plans to reduce emissions together with suppliers, for which we are developing a ‘green procurement’ system. We are developing solutions for the entire value chain – from factory to farm and from farm to fork – that will increase the sustainability of the entire production and consumption system.”
The Board of Directors also approved the 2021 work plan for the Company’s Internal Audit Department and took note of details related to information security and cyber-risk management within the Company. Based on a proposal from the Audit Committee, the Board of Directors approved PricewaterhouseCoopers (“PwC”)as the Company’s IFRS auditor for its 2021 financial statements, and recommended that PhosAgro’s CEO sign a contract with PwC.