Uralchem’s Board of Directors approved the ESG Strategy for the period up to 2025. The document aims to provide a consistent approach to the promotion of sustainable development practices and lay the foundation for business’ further ESG transformation. Uralchem views the ESG Strategy as an integral part of the overall corporate strategy and plans to integrate the principles of sustainable development into all of the company's core business processes.
The ESG Strategy contains ten priority areas, which are divided into fundamental areas and New Challenges. The fundamental areas have been pillars of the company’s sustainable development for many years. New Challenges reflect current global ESG trends, including climate change, sustainable agriculture, human rights, and sustainable supply chain development. For each ESG Strategy area, quantitative and qualitative targets have been established, based on which the Board of Directors will track progress in implementing the strategy on an annual basis.
The Strategy focuses on consistent improvements in all three aspects: Environmental (E), Social (S), and Corporate Governance (G). As part of the environmental aspect, in the coming years, special attention will be paid to the climate agenda – in 2022 Uralchem plans to develop and approve a climate strategy that will best prepare for the introduction of national and transboundary carbon regulation.
Despite the high priority of the environmental agenda, equal attention is paid to the social aspect within the ESG Strategy. The safety and well-being of our employees and residents of the regions where the company operates are the values that underlie its work in this area. In the coming years, Uralchem plans to make significant efforts to develop and promote sports, support education and science, create conditions for successful socialization and efficient self-realization of youth, develop the potential of youth and use it for the benefit of innovative development of the company and the regions of its operation.
In addition, a significant part of the ESG Strategy’s social aspect is the development of sustainable agriculture. Within the scope of this area, the company plans to reach more than 20,000 farmers with educational programs to increase the level of agronomic literacy, which in turn will help to increase the yield and quality of major field crops, including in African countries. Through these activities, the company contributes to the achievement of the UN Sustainable Development Goal #2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
As part of the governance aspect, along with the issues of improving the corporate governance system and anti-corruption activities, Uralchem will focus on the development of a sustainable supply chain. The target for 2025 is to assess compliance with ESG principles for suppliers that account for 50% of procurement by value.
Angelina Verba, Chief Sustainability and IR Officer, Uralchem:
“The primary goal of our ESG Strategy is to create a solid foundation for further improvement in the field of sustainable development. We see how the world is changing, and we are prepared to these changes. Uralchem’s mission is to help improve the efficiency of agriculture and ensure food security, realizing our own responsibility. At the same time, we focus both on solving global problems and on sustainable production, quality and safety of products, environmental protection in the regions of our operations, and the well-being of our employees.”
It will be recalled that in early December, Dmitry Mazepin, Chief Executive Officer of Uralchem, took part in the first conference dedicated to the creation of the National ESG Alliance, during which the participants signed a cooperation agreement. “Uralchem and Uralkali are pleased to become part of the ESG Alliance. Uralkali is the first company in the industry to receive a loan linked to ESG indicators,” Dmitry Mazepin commented.
The key mission of the ESG Alliance is to facilitate the transition to a sustainable economic development model that ensures the conservation of nature, the well-being of society, and the long-term prosperity of business within the framework of the existing limitations of natural resources, based on the commitment, cooperation, and partnership of all parties involved.
ESG-Strategy of Uralchem