Industrial safety

PhosAgro goes to great lengths to ensure compliance of its OHS system with the Russian laws and international standards. To this end, the Company has put in action a multi-tier OHS management system at all management levels. Following the introduction of a public scrutiny mechanism by Apatit in 2019 and its roll-out in all branches in 2020, our OHS management now involves dedicated officers and all employees of business units.

All our employees (executives together with blue- and white-collar staff) take OHS training as required by the national laws, as well as additional safety training. All visitors, including contractor representatives, are tested for the required level of OHS training. Everyone without exception undergoes introductory briefing in accordance with statutory requirements and the Company’s internal regulations.

The Environmental, Health and Safety Committee of the Board of Directors is the central element of the OHS system, which provides a forum for resolving health and safety issues by the joint efforts of production and other divisions’ managers and the Company’s employees. In its work, the Committee relies on the principles of social partnership.

Its members interact with the Company’s executive body responsible for health and safety, state supervisory bodies overseeing compliance with the Russian health and safety laws, other government watchdogs, and the Company’s trade union.

Occupational health services

To enforce and monitor compliance with health and safety requirements, we have established occupational health services at our facilities.

Key objectives of occupational health services:

• taking steps to ensure employees’ compliance with health and safety requirements;
• monitoring employees’ compliance with OHS laws and regulations, the collective agreement, OHS agreement and other internal regulations;
• preventing workplace injuries, occupational diseases and work-related illnesses and improving workplace conditions;
• advising employees on, and raising their awareness about occupational health and safety;
• studying and disseminating best OHS practices and promoting occupational health.

The Company’s operations are regulated by the Russian health and safety laws, as well as:

• health and safety SOPs at the facility (shop) level;
• production SOPs;
• worker health and safety instructions;
• corporate standards;
• process regulations;
• accident management action plans, etc.

In 2020, the Company launched a project to evaluate and improve the safety culture and the OHS management system at Apatit. The project focuses on comprehensive evaluation of the safety culture and the OHS management system’s performance, as well as development and finalisation of action plans to improve them in line with established targets.

For better OHS efficiency, and to automate and streamline the relevant processes, we have been successfully using the Safety and Instructions (Shift Assignments) management systems.

They helped us achieve the following goals:

• improve the manageability of employees and equipment safety;
• optimise administrative expenses associated with managing the safety of employees and equipment;
• obtain reliable and complete information about the safety of employees and equipment.

With these systems, we also reached the following objectives:

• centralised health and industrial and fire safety management;
• faster collection, processing and analysis of employee and equipment safety data;
• real-time reporting across the Group, including reports to government authorities;
• 24/7 access to current information about every employee and site.

In line with statutory requirements, the Company is subject to scheduled external audits by Russian regulatory authorities, including the Federal Service for the Supervision of Environment, Technology and Nuclear Management (Rostekhnadzor), State Labour Inspectorate, Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor), and Ministry for Civil Defence, Emergencies and Elimination of Consequences of Natural Disasters (EMERCOM). We may also engage consulting companies, or international associations of which the Company is a member to conduct additional external audits, or may organise such audits as part of a special assessment of workplace conditions.

In 2020, state supervisory authorities carried out 146 audits at Apatit and its managed companies. A considerable decrease in the number of audits (vs 286 in 2018 and 368 in 2019) was driven by the COVID-19 pandemic, which led to some of them (including scheduled audits) being cancelled or postponed.

We also run internal audits conducted by our OHS departments, managers and employees exercising production H&S control.

The results of internal and external audits serve as the basis for orders and instructions issued to Group enterprises. Orders contain remedial action plans, including the deadlines and persons responsible for their implementation. Identified breaches are remedied within the agreed time limits, and gaps that can be eliminated at no additional cost are addressed immediately.

The Company has a procedure for drafting, submitting and reviewing reports on internal and external OHS audits. The results of all internal and external assessments and audits are recorded in the Safety and Instructions (Shift Assignments) management systems for further analysis, gap identification and elimination monitoring. We also submit all relevant reports to state supervisory bodies and statistical agencies in accordance with the Russian laws.

Workers covered by an occupational health and safety management system

The Company has implemented a systems-based approach to hazard identification, risk assessment, and incident investigation as a fully integrated process. This approach seeks to integrate occupational health and safety management into the Company’s overall business processes.

We have adopted a system that moves through a “plan–do–check–act” cycle, promoting leadership and best practices through meaningful consultation and participation of employees from all job levels in the Company.

The Company has introduced audits and assessments to ensure compliance with and PhosAgro’s corporate standards.

We are constantly working to assess and mitigate risks. We perform risk assessment and identify material risks using our proprietary methodology. Following hazard identification and risk assessment, the unit’s OHS officer compiles a list of local occupational risks, which is then used as a basis for the Company’s list of material occupational risks. Risk assessment takes into account the following aspects:

• degree of personnel exposure;
• impact on personnel;
• frequency of occurrence;
• compliance with the applicable regulatory and other OHS requirements.

The list of material occupational risks is available on our intranet site. We update the lists of hazards and risks to factor in new inputs.

In 2020, we implemented a Risk Management module in the Safety and Instructions (Shift Assignments) management systems to enable the use of check lists for systems-based internal OHS assessments at all business units of Apatit. The module will simplify control and analysis and boost the efficiency of production H&S control.

The Company has a formal procedure for address ing workplace hazards. When a hazard is identified, employees are required to suspend work and report it to their supervisors directly or via the Public Inspector mobile app (the report is then used to develop a remedial action plan).

In accordance with an established procedure, information about incidents is provided by eyewitnesses to the supervisors in charge and by those supervisors to the dispatcher of the enterprise. Next, the dispatcher notifies the designated persons using text messages and phone calls.

Industrial accidents and incidents are investigated in accordance with legislative requirements and internal procedures to determine the root causes. The Company encourages its staff to disclose information on potential sources of danger to employee health and life.

In 2020, the Company successfully continued the implementation of the LOTO system to avoid hazards associated with unauthorized supply of electricity, gases, liquids, ensure proper shutdown, and prevent restart of dangerous equipment before completion of all maintenance and repair work.

The roll-out was completed in three stages:

Stage 1 (August): auditing the business unit (performing a technical audit, estimating the number of required lockout devices, developing energy isolation plans, tagging the isolation points, and installing lockout devices);

Stage 2 (August–November): drafting the documents;

Stage 3 (December): training the personnel and launching the system.

At our sites, we have introduced the following emergency response and prevention measures compliant with the Russian laws:

• accident management action plans for all hazardous industrial facilities;
• training sessions, test alerts for different scenarios, and emergency response exercises, with EMERCOM and other services also taking part. In 2020, the Company arranged 245 internal training sessions and two joint training sessions with EMERCOM;
• Apatit’s programme for developing gas and mine rescue, fire-fighting and prevention activities for 2019–2021 (approved and ongoing).

Mobile teams formed at Cherepovets-based Apatit and its Balakovo branch to monitor compliance with laws and internal regulations on road traffic safety (RTS mobile teams) inspect vehicles on a daily basis.

In 2020, Apatit and its branches, assisted by the RTS mobile teams, carried out 7,188 vehicle inspections (vs 3,357 in 2018 and 4,120 in 2019), identified around 1,300 violations (vs 1,169 in 2018 and 1,259 in 2019), and charged fines for a total of RUB 6,067,000 (vs RUB 2,308,000 in 2018 and: RUB 4,559,000 in 2019).

For better OHS communication with employees, we have adopted Regulations on the OHS Communication System. The system provides for both internal and external communication and includes a feedback procedure.

Internal communication is achieved through:

• health and safety committees;
• management meetings and conferences to discuss the health and safety performance of our enterprises; regular OHS meetings in departments, on production sites and at facilities;
• health and safety bulletin boards, posters and other visuals;
• corporate television (screens), intranet site, e-mail;
• corporate periodicals;
• preventive practices by OHS officers at business units (including one-on-one meetings, training, mentoring and supervision).

There are health and safety committees in place at all Group enterprises. They are both an integral part of our OHS management system and a form of employee participation in it. In their work, these committees rely on the principles of social partnership. In 2020, we revised the rules of procedure of our health and safety committees to enhance their efficiency. Now, they meet on a monthly basis (instead of at least once in three months previously) to review reports on 13 focus areas:

• Assessment of workplace conditions, and healthcare
• Trade union
• Accident/incident investigation
• Safety assessments and audits
• PPE effectiveness
• Education and training
• Contractors’ safety
• OHS leadership, promotion and communication
• Industrial safety
• Fire safety
• Transport safety
• Safety Culture Transformation Project
• LOTO system implementation – stage 2

Working groups have been created to cater to these areas.

Employees are represented on the committees by heads/representatives of local unions. In 2020, the committees met 15 times, passing more than 250 resolutions.

We are making special efforts to strengthen the role of OHS officers, the key and most common element in unions’ health and safety monitoring. These people stand out from other monitors thanks to their omnipresence and continuous work. Always in contact with employees, they can influence their attitudes to safety and ongoing OHS compliance.

Channels for health and safety feedback:

• regular OHS meetings at business units and enterprises;
• OHS meetings on production sites, in departments and at facilities;
• union and union committee meetings (for feedback from OHS officers);
• one-on-one meetings, and supervision;
• OHS training sessions and briefings;
• industrial and fire safety drills;
• corporate e-mail;
• corporate periodicals;
• health and safety committees;
• employee loyalty surveys and OHS questionnaires.

Employees can also use the Public Scrutiny application to submit their health and safety proposals.

Employees of the Group can train either online or in person at PhosAgro Education Centre.

Since 2020, we introduced training in. Our e-courses are easy to understand and are followed by tests to evaluate the students’ progress.

PhosAgro Education Centre organises OHS training, including that in basic fire safety and electrical safety, industrial safety pre-certification sessions, and drills in the Vysota training centre, to develop employee hands-on knowledge and skills.

All our employees, from managers to blue-collar staff, receive health and safety briefing and training as required by the Russian laws. On top of that, we offer a number of additional in-house courses.

The training is provided to employees of the Group, as well as some of our contractors (Agrokhimbezopasnost, Universal-Elektrik, Infrastructure TK).

To improve OHS training and remind employees about workplace safety, PhosAgro Education Centre has created a number of animated videos.

During the year, we also developed and rolled out seven online courses on key regulations:

• Health and safety promotion at Apatit
• Contractor safety requirements
• Working at heights
• Lockout/tagout (LOTO) system at Apatit
• LOTO system in maintenance and repairs
• Investigation and communication of OHS accidents/incidents
• Management of contractors’ organisational and technical documents

Additional (thematic) training courses:

• Safe operation of conveyors
• Job permits for electrical works
• Safe detection and elimination of misfires in the pit face of the Vostochny mine
• Signals used in underground blasting,
• Briefing methodology, etc.

PhosAgro places a strong emphasis on disease prevention and treatment, health improvement, high-quality medical aid and health resort rehabilitation. Group companies organise initial and regular check-ups and examinations of staff involved in potentially hazardous and/or dangerous activities. Most employees are offered long-term voluntary health insurance (VHI) covering a broad range of risks.

Apatit JSC and its branches have special wellness and health programmes in place. Voluntary health insurance plans include:

• health resort treatment for PhosAgro employees and retired staff;
• treatment (expensive, dental, medical counselling);
• services of outpatient clinics and health posts at divisions and production units (on-site clinics can provide accident and emergency care and specialist advice from therapist, endocrinologist, neurologist, ophthalmologist, and dentist);
• vaccination of employees, their family members and retired employees.

Employees of the Company and members of their families have access to health resorts at a reduced price. Since October 2020, Apatit (Cherepovets) has provided its employees and their families with free health resort vouchers and a compensation for 50% of the travel expenses.

Employees working in harmful conditions receive health and dietary meals, milk. Food quality is monitored under the supervision of a trade union. Quality is assessed based on employee surveys, books of complaints, frequency of visits to the canteen, and ratio of dietary and health meals taken to dietary and health meals prescribed.

As part of healthcare initiatives, staff canteens provide nutrition according to Diet No. 10 targeting patients with cardiovascular diseases.

The fitness centres at PhosAgro facilities include gyms, fitness halls, air rifle shooting ranges, as well as game halls (for volleyball, badminton, basketball, futsal, table tennis, billiards, and darts) and swimming pools.

Under the health improvement programme, employees can visit both on-site and off-site fitness centres and pools.

Each of the Company’s facilities has an on-site church to promote spiritual and moral health. Twice a year, PhosAgro organises employee pilgrimages to visit the relics of St Nicholas in the Basilica of St Nicholas in Bari (Italy).

An on-site psychotherapist is available to assist employees in addressing mental health and wellbeing in the workplace.

Apatit employees have access to psychological counselling online and by telephone (with automatic registration of calls, a free hotline, corporate e-mail of a psychologist, and instant messengers).

An effective diagnostic toolkit was developed and tested to measure employees’ psychological and emotional state, the level of wellbeing, performance, and emotional burnout, which affect the team’s morale and their general productivity.

The company uses corporate media, information stands, lectures and brochures to distribute information on all its initiatives. The announcement page of the corporate portal provides information on currently available social programmes.

As part of an experiment, there have also been installed Social Policy stands with feedback boxes.

Performance monitoring and measurement are key prerequisites for achieving sustainable long-term results in line with our OHS strategy.

Most of the injuries were caused by moving or rotating objects and equipment, or by falling while in motion.

In 2020, the number of accidents decreased by 29%, with zero fatal injuries (in 2019 – three cases)The accidents indicator is calculated for Apatit, including its branches and standalone business units.. Looking at PhosAgro facilities separately as two groups – chemical production facilities (Apatit and its branches in Balakovo and Volkhov) and mining facilities (Kirovsk Branch), there is a clear downward trend in injuries at the mining facilities, with the number of accidents decreasing from nine cases in 2019 to four in 2020. This was achieved through tighter 24/7 H&S control measures at underground mines and a six-fold increase in unscheduled inspections – from 625 to 2,302.

Another major factor contributing to lower injury rate is a new system motivating employees to work safely. The system aims:

• to keep all employees motivated to protect their own safety and the safety of others;
• to encourage initiative and introduce improvements in this area.

In 2016–2020, the Company recorded 174 cases of occupational diseases, with the Kirovsk branch of Apatit accounting for 99% of them. No cases of death as a result of occupational diseases were recorded.

Occupational diseases

The main causes of occupational diseases are:

• hard labour;
• vibration (general or local);
• noise;
• predominantly fibrogenic aerosols.

In line with the order on measures to prevent occupational diseases, the following initiatives were introduced:

• ensuring that employees undergo regular medical examinations in a timely manner;
• timely maintenance and inspection of equipment;
• control of PPE use at workplaces with higher risk of occupational diseases;
• oversight of compliance with the work and rest regime and regulated workplace breaks;
• compliance with sanitary rules at workplaces with higher risk of occupational diseases;
• unscheduled special audits of working conditions at workplaces with higher risk of occupational diseases caused by harmful and/or hazardous production factors.

Occupational disease types

Occupational diseases are divided into three groups:

Group 1: HAVS, stage 1 and 2, Polyneuropathy of the upper and lower limbs, Cervical/lumbosacral radiculopathy, Hard labour, Myofibrosis of the forearms, Bilateral humeroscapular periarthrosis, Osteoarthritis deformans of the shoulder and elbow joints, Bilateral humeroscapular periarthrosis, Reflex myotonic syndrome of the cervical/lumbosacral area;

Group 2: Respiratory diseases associated with exposure to complex chemical aerosols;

Group 3: Chronic bilateral sensorineural hearing loss, 1st and 2nd degree.

Apatit

To ensure fire, gas and mining safety at Apatit and be better prepared for accidents and emergencies, PhosAgro is implementing Apatit’s programme for developing gas and mine rescue, fire-fighting and prevention activities for 2019–2021.

The programme focuses on:

• improving training facilities and equipment of gas/mine rescue and fire-fighting units;
• enhancing the quality of hands-on training for young hires;
• ensuring compliance with gas, mine and fire rescue regulations and personnel training;
• re-equipping gas/mine rescue and fire fighting units.

Apatit Cherepovets branch

Seven additional jobs were created in the gas emergency and fire-fighting services of Apatit’s Cherepovets production site. The company purchased machinery, equipment, and PPE: a rescue simulator, a SKAD-1 breathing apparatus control system, a GS-16 lung ventilator, a TC-41M testing unit for fire escapes and rescue safety equipment, high pressure breathing air compressors, breathing apparatuses.

Apatit Kirov branch

The Kirov branch of Apatit adopted a new procedure for servicing and repairing automatic fire safety units in order to transfer them to a single qualified contractor – of PhosAgro Engineering Center.

Five FTEs were added to the fire safety, civil defence, emergencies, health and safety management team.

Apatit Volkhov branch

At the Volkhov branch of Apatit, the commanders of gas rescue squads underwent the Gas Rescue Unit Management training at the Training and Consulting Centre of Emergency Rescue Forces in Novomoskovsk, and another 15 received rescue training for contingency emergency rescue teams. New equipment purchased by the branch included a tripod with a winch, a gas cutter, breathing apparatus, a glowing guiding wire, two gas-tight protective suits, two cutting blades, ten hardhats, testing unit for fire-fighting equipment, a CPR mannequin, a hydraulic rescue tool kit.

Apatit Balakovo Branch

The Balakovo Branch of Apatit commissioned a smoke and heat simulation training facility and purchased a special operation vehicle, a ventilator, four chemical protection suits, a thermal imaging system, and a breathing air compressors.