Case study navigator on UN SDGs

LETTER FROM IRINA BOKOVA, CHAIR OF THE BOARD OF DIRECTORS’ SUSTAINABLE DEVELOPMENT COMMITTEE

IRINA BOKOVA Chairman of the PhosAgroBoard of Directors‘ Committee on Sustainable Development

The UN Sustainable Development Goals (SDGs) were developed to address the challenges faced by humankind. Each SDG relies on rigorous studies that have identified such potential consequences of these challenges that no one will remain uninvolved.

It is obvious that SDGs are global in nature and are relevant to all countries, people, institutions, companies, etc. It is also clear that they receive attention from investors and consumers of our products, as people want to enjoy a clean environment and expect companies to supply safe foods and products.

Businesses, including those in Russia, are set to play a key role in achieving the Goals. Such insight gave rise to the Global Compact, the largest association of businesses seeking to implement the SDGs. Its mission is to make sure that businesses adhere to and deliver on the Global Compact’s 10 principles in the areas of human rights, labour, environment and anti-corruption, as well as contribute to achieving the SDGs. Importantly, Russian companies are actively joining its ranks, while some of them, like PhosAgro, are among the few LEAD businesses in the world.

Joining climate change initiatives was a trend among companies in 2020. Industry leaders define and endorse science-based targets to cut GHG emissions, develop roadmaps to meet them and undertake to file reports on their activities in this area. PhosAgro is no stranger to this. In December 2020, the Board of Directors approved the Climate Strategy and the plan for low-carbon transition to 2028. We are delighted to present our first separate report on climate related aspects of our business under the framework developed by the Task Force on Climate-related Financial Disclosures (TCFD).

The ESG agenda can be called a driver of sustainable business transformation. As part of the Company’s Development Strategy to 2025, we are seeking to contribute to 11 UN SDGs, keeping a close eye on our progress. This report is intended to give a clear view of how we integrate these SDGs into the Company’s strategic priorities and operations.

Setting UN SDG priorities

The approach:

• We identified the key areas of impact on the society and the environment by PhosAgro as a mining and processing company, based on academic and industry articles and reports.
• For each area identified, we compiled a list of goals and indicators that are used to measure and report on the impact of mining and processing companies (with a focus on phosphate mining and fertilizer production) on the society, including the UN SDGs, GRI, UNCTAD, and Social Life Cycle Assessment and SDG Compass.
• We matched the list of goals and indicators with the categories and principles of responsible investment (including Green and Social Bonds, Sustainable Bond Guidelines, Green Loan Principles, Sustainability Linked Loan Principles).
• We matched the list of goals and indicators with material topics for PhosAgro Group’s key stakeholders, and conducted interviews with responsible divisions to prioritise the impacts.

Project results:

• A list of priority impact areas was compiled
• The list of priority SDGs was updated to reflect the identified impact areas
• A list of priority SDG objectives was compiled
• For each objective:
  • The measures being taken by Company were indicated
  • The management approach was described
  • The Company’s obligations were defined
  • The quantitative targets were selected
  • The relevant GRI indicators were defined

Prioritization results