Goal 13
Climate Action
Target 13.1
Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
Impact of stakeholders The important role of fertilizers in improving the quality of soils — natural sinks of greenhouse gases.
Management approach
Our Company has developed a climate strategy that includes climate scenario analysis, climate risk assessment, a low-carbon transition plan and the setting up of scientifically justified goals to reduce total greenhouse gas emissions in all three coverage areas by 14 % by 2028 as compared to the 2018 level, as well as a goal to reduce greenhouse gas emissions in the coverage area 1 by 30.9 % ton the level of 109.1 kg per tonne of product and a semi-finished product by the year 2028 vs the 2018 level. The Board of Directors approves GHG reduction goals and measures.
Contribution
To resolve this task, our Company:
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as part of the climate strategy, takes measures to reduce greenhouse gas emissions and publishes reporting materials on the activities of PhosAgro enterprises in the climate area in accordance with the CDP questionnaire;
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started to implement the Energy Efficiency Enhancement Programme already in 2003 in the Balakovo branch of Apatit JSC. The plant provides itself with 80 % of its own electricity;
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has launched a project on the use of renewable energy sources (RES) at industrial and social facilities. The first experimental site was the corporate health resort and hotel complex Izumrud in Balakovo.
Commitments and Targets
A set of measures aimed at reducing the environmental impact and enhancing the environmental safety of production processes is one of the most important parts of the sustainable development strategy of our Company.
By the year 2028:
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reduce specific greenhouse gas emissions of coverage area 1 to 109.1 kg in CO2-eq./t;
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reduce total greenhouse gas emissions (coverage areas 1, 2 and 3) by 14 %.
Our Results
In 2021, the values of target indicators demonstrate a positive dynamics:
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The specific greenhouse gas emissions of the coverage area 1 amounted to 132.7 kg in CO2 eq./t of products and semi-finished products, which is 16% lower than in the base year 2018;
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The specific greenhouse gas emissions of the coverage areas 2 show a positive dynamic. The decrease was 16% as compared to the indicators of the base year 2018.
More detailed information about all main results of the Company’s activities in the area of environment is presented in the data book and Integrated Reports.
Target 13.2
Integrate climate change measures into national policies, strategies and planning.
Impact of stakeholders We directly contribute to fertilizers that help to adapt to the effects of climate change by strengthening the sustainability of agricultural crops.
Management approach
The responsibility for reviewing and resolving climate change issues is vested in the Occupational Health, Safety and Environment Protection Committee headed by the Member of the Board of Directors, Executive Director of PhosAgro. The Committee’s climate-related functions include monitoring greenhouse gas emissions, developing and implementing GHG emission reduction projects, including initiatives aimed at enhancing energy efficiency of production processes.
The Risk Committee reviews climate change risks and opportunities.
Contribution
To resolve this task, our Company:
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developed a climate strategy that includes a climate scenario assessment in accordance with the recommendations by the TCFD (Task Force on Climate-Related Financial Disclosures), the identification of climate risks and opportunities, determination of scientifically justified target levels of greenhouse gas emissions, as well as measures to achieve them — the low carbon transition plan through 2028;
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products with positive climatic characteristics are being developed: fertilizers that help to adapt to the effects of climate change by strengthening the sustainability of agricultural crops;
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keeps records of greenhouse gas emissions associated with the products supplied for the production of goods.
The Company carries out energy efficiency management and work within a low-carbon transition plan.
Commitments and Targets
By the year 2028:
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reduce greenhouse gas emissions by 14 % as compared to the base level of the year 2018;
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expand the area of climatically responsible businesses in Russia and worldwide as a result of responsible selection of suppliers;
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reduce climate-related risks of production and business processes; use emerging climate-related opportunities to expand and strengthen the business;
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increase the Company’s openness and transparency, in particular, by way of enhancing interaction with stakeholders and international platforms with a view to promoting a climate agenda;
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integrate climate-related issues in all internal management and decision-taking processes of the Company.
Our Results
In 2021:
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The gross emissions of the coverage areas 1 and 2 made up 5,569.1 thousand tons of CO2 equivalent;
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energy indirect (Scope 2) emissions also dropped by 30.8 kt, or 3.3%, vs 2018 thanks to the green electricity procured by the Kirovsk branch of Apatit, as well as energy efficiency initiatives;
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increased the output of urea with urease inhibitors, a modern low-carbon fertilizer that helps deliver a material positive environmental effect by reducing emissions of nitrous oxide (N2O), which is a greenhouse gas (in 2021, emissions were reduced by 16.9 kt of CO2 eq.);
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we used green energy (hydroelectric power produced by small hydroelectric power plants and purchased from TGC-1 as part of our pilot project) to produce some 18% of phosphate rock and nepheline concentrate.
The strategic direction of the Company’s activity is to develop approaches to creating landfills where carbon will be captured from the atmosphere and will be bound in soil and plants, the so-called carbon farms. Now, such work is being carried out by the institutes of the Academy of Sciences.
In 2021, the Russian Academy of Sciences and the Vologda Region signed an agreement on cooperation in the field of climate change control and environmental impact minimization.
More detailed information about all main results of the Company’s activities in the area of climate change is presented in the TCFD Report.