Moscow - PhosAgro (“the Company”, “the Group”, MOEX, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces that following its annual review, ESG rating provider Sustainalytics has considerably improved its assessment of PhosAgro: from 43.8 points to 26.9 points (medium risk).
With this new rating, PhosAgro has strengthened its leading position among the best-rated companies in the global agricultural chemicals subindustry according to Sustainalytics (the top 3 also include UPL with a rating of 26.2 and ICL Group with 33.3). It also places PhosAgro in top 15% best-rated chemical companies worldwide.
Sustainalytics rated PhosAgro’s management of ESG-related challenges as “strong”. The agency’s assessment includes an analysis of the Company’s exposure to sustainability risks, as well as an analysis of the quality of the Company’s ESG programmes, practices and policies. The agency noted, inter alia, considerable improvements in PhosAgro’s climate-related activities and management of its impacts on the environment. Human capital management and adherence to high standards of business ethics and best corporate governance practices were other important areas where strong performance contributed to the major improvement in the Company’s risk rating.
Xavier Rolet, Chairman of PhosAgro’s Board of Directors, said: “PhosAgro continues to focus on implementation of its Strategy to 2025, which was approved by the Board of Directors in 2019 following the successful early achievement of all of the objectives in the previous development strategy. The implementation of the Strategy to 2025 will further strengthen PhosAgro’s position as one of the most efficient producers in the industry and as a leading producer of fertilizers that help grow more environmentally-friendly agricultural products.
“I am happy to announce that the implementation of all strategic initiatives, without exception, is on track despite the pandemic, including in terms of sustainable development, aspects of which have historically been the focus of PhosAgro’s attention. In addition to improving its position in the Sustainalytics ESG risk rating, MSCI ESG Research upgraded PhosAgro’s rating to BBB in August 2020. In October, the Company was once again awarded the most prestigious business award in Russia: the Grand Prix at the Russian Business Leaders: Dynamics and Responsibility awards held by the Russian Union of Industrialists and Entrepreneurs. As the Chairman of the Board of Directors, I highly appreciate this recognition of PhosAgro, and I am confident that the management team led by CEO Andrey Guryev will continue to make tangible progress.”
Irina Bokova, Chair of the PhosAgro Board of Directors Committee on Sustainable Development, noted: “Farmers in 102 countries around the world use the Company’s environmentally friendly fertilizers, which means PhosAgro fertilizers play an important role in ensuring the safety of agricultural products. That’s why the aspiration to contribute to the achievement of the SDGs was designated as a key priority of the Company’s Development Strategy to 2025. As of today, we are making direct contributions to the achievement of 10 of the 17 SDGs.
“Earlier this year, the UN reaffirmed PhosAgro’s Global Compact LEAD status, which has been granted to only 41 companies worldwide. In addition, PhosAgro supports the environmental initiatives of leading international and industrial associations. In the context of the Company’s extensive work in the area of sustainable development, Sustainalytics’ decision is a powerful impetus for further improvement and clearly demonstrates that PhosAgro has chosen the right path.”