2025 Phosagro Integrated Report

Environmental review

Area, strategic goals and highlights of 2025

1

Climate

Targets 12.5, 13.2

Target

  • Climate action and reduction of GHG emissions
  • 2028 gross emissions:
    • Scope 1 – 4,175.5 kt of СО2‑eq.
    • Scope 2 – 794.7 kt of СО2‑eq.
  • 2028 per unit emissions: Scope 1 — 109.1 kg of СО2‑eq. per tonne of finished and semi‑finished products

Actual

Gross emissions:

Scope 1
4,711.8 –0,1% y-o-y kt of CO2‑eq.
Scope 2
835.8 –8.1% y-o-y kt of CO2‑eq.
Scope 1 per unit emissions, kg of СО2‑eq./t of products and semi‑finished products:
118.1 –2.6% y-o-y kg/t

Climate project “Improving Energy Efficiency at the Balakovo branch of Apatit” formalised

RECSOIL project, second year

2

Energy efficiency

Target 12.5

Target

  • Reduction of Scope 2 GHG emissions to 794.7 kt of СО2‑eq. by 2028 through the Energy Efficiency Programme

Actual

Scope 2 gross emissions:
835.8 –8.1% y-o-y kt of CO2‑eq.

Green electricity purchases increased by 25% y‑o‑y to 375 mln kWh from TGC‑1, covering 100% of the purchased electricity needs of the Volkhov and Balakovo branches of Apatit. In addition, carbon‑free electricity was supplied to the Cherepovets site for the first time.

Self‑generated electricity as a share of the Company's production assets’ needs in 2025: 41.3% (+3.9% y‑o‑y)

Energy Management System development at the Cherepovets site (pilot):

  • an EnMS team was formed
  • three‑year energy efficiency programme running to 2027 was established; savings from programme implementation in 2025 amounted to RUB 271.49 mln.
3

Waste

Target 12.5

Target

  • Waste reduction 2025: 40% of hazard class I–IV waste recycled and decontaminated

Actual

Target achieved
For the third consecutive year, we exceeded our
40 %
target for hazard class I–IV waste recycling and decontamination
Amount of hazard class I–IV waste recycled and decontaminated:
40.75 +0,45% y-o-y %

The use of phosphogypsum in construction at the Company's production sites reduced the amount of phosphogypsum sent to waste disposal facilities

4

Air

Targets 3.9, 12.5

Target

  • Reduction in pollutant emissions to the atmosphere
  • 2025: per unit pollutant emissions — 0.800 kg/t of products and semi‑finished products

Actual

Target achieved

The SK‑714 sulphuric acid production process system at the Cherepovets site upgraded, with gas cleaning systems were reequipped and core equipment optimised

In 2025, the Company's gross pollutant emissions to the atmosphere decreased by more than
1 kt
y‑o‑y.
Pollutant emissions, kg per tonne of finished and semi‑finished products: compared with 2018, decreased by 36%
0.667 +6.3% y-o-y kg per tonne of products and semi‑finished products
5

WaterIn 2024, the Company conducted a review of per unit targets for water withdrawal and waste water discharge. The new 2025 targets account for water flows excluding mining and pit waters, which are natural in origin and flow in and out without involvement in production processes. These new targets were discussed at a meeting of the Board of Directors' Strategy and Sustainable Development Committee and subsequently approved by the Board of Directors.

Targets 3.9, 6.3, 12.5

Target

  • Responsible water use
  • 2025: per unit waste water discharge into surface water bodies – 1.7 m3/t of products and semi‑finished products, excluding mining and pit waters
  • 2025: per unit water withdrawal – 2.6 m3/t of products and semi‑finished products, excluding mining and pit waters

Actual

Per unit waste water discharge into surface water bodies, excluding mining and pit waters
1.63 –14.4% y-o-y m3/t
of products and semi‑finished products
The Company's per unit water withdrawal, excluding mining and pit waters
2.95 –10.1% y-o-y m3/t
of products and semi‑finished products
6

Biodiversity

Targets 3.9, 12.5

Target

  • Preservation of biodiversity in regions of the Company’s operation at a level securing sustainability

Actual

Commitments regarding biodiversity impact management have been incorporated into PhosAgro's Environmental Policy.

A comprehensive environmental survey was conducted within the sanitary protection zone of Apatit’s nitrogen facility as part of the biodiversity conservation programme development.

The Company released young fish into water bodies across its regions of operation

SASB EM‑MM‑160a.1, RT‑CH‑410b.2

At PhosAgro Group, we attach much importance to environmental protection and safety, as well as climate risk management. Effective management of these areas contributes both to the well‑being of the regions where the Company operates and to its sustainable development.

Our Strategy to 2025 and Environmental Policy incorporate provisions to ensure strict compliance with statutory environmental requirements and a reduction in the environmental impact of the Company’s operations across the entire fertilizer lifecycle, from ore mining to food production.

We believe that our requirements should be uniform both for us and our partners engaged in PhosAgro’s projects. Everything we require of ourselves equally applies to our counterparties and is enshrined in the Code of Conduct for Counterparties.

We conducted a comprehensive assessment of our operations, identifying key areas of both direct and indirect impact, and mapped it against the UN Sustainable Development Goals (UN SDGs) and Russia’s national development goals. Based on the assessment results, we defined six strategic focus areas of environmental protection:

Climate

Energy efficiency

Waste

Air

Water

Biodiversity

GRI 3‑3, 101‑1

Environmental stewardship has always been a core priority for PhosAgro Group. We operate in regions with fragile and unique ecosystems, and safeguarding their sustainable natural integrity is our unwavering commitment. Our operations undergo a stringent assessment for compliance with the Environmental Policy, laws and regulations, and the Company’s internal requirements.

A unified approach to environmental management:

1

Company‑wide control

The implementation of the Strategy to 2025 and compliance with the Company’s Environmental Policy and its Energy Efficiency and Energy Saving Policy are overseen by the Strategy and Sustainable Development Committee that regularly reports on the Company’s progress to the Board of Directors.

The Department of Ecology and Environmental Management exercises executive control over the Company’s environmental activities, while the Chief Power Engineer's Service is responsible for energy efficiency.

2

Unified management system

The consistency of PhosAgro’s activities aimed at environmental protection and strengthening of the Company’s environmental performance is ensured through the ongoing enhancement of the environmental management system built in line with the ISO 14001 standards.

In the field of energy efficiency, the Company is implementing a programme to establish a unified energy management system, together with measures set out in its Energy Efficiency Programme.

3

Strict compliance with applicable statutory and regulatory requirements

Stakeholder engagement

The effectiveness of our environmental and energy management systems is key to PhosAgro Group's long‑term business sustainability. It also reflects our commitment to responsible corporate citizenship, balancing the interests of diverse stakeholders, including local residents, employees and their families, and our technological partners and contractors.

In 2025, the Company conducted an assessment of material topics among a broad range of stakeholders. Climate change issues emerged as a high priority for both external internal stakeholders.

Financial materiality was also assessed as part of this study. The survey involved Company employees with deep industry expertise and knowledge of corporate finance, risk management, and sustainable development. Participants were asked to assess PhosAgro’s sustainability risks and opportunities. The survey results showed that climate‑related risks and opportunities rank among the highest priorities for both impact materiality and financial materiality.

The key principle underlying our interaction with local communities is a meaningful dialogue through a variety of communication channels, from public hearings and the involvement of Company representatives in the work of local legislative and representative bodies and government authorities.

Public hearings are a legitimate and effective way to organise dialogue. They bring stakeholders together to exchange views and proposals on the initiatives under discussion, positively influencing decision‑making. Involving the wider community and ensuring that different stakeholder groups have a say helps ensure that all perspectives are taken into account.

The Company actively engages with the industry community and participates in relevant events, exchanging experience with market participants and gathering information on trends and innovations in energy efficiency and the energy transition. We prioritise aligning our electricity consumption with evolving requirements for electricity generation and the development of carbon‑free (green) energy attribute certificate market. The Company annually reviews the low‑carbon electricity market, compares its energy efficiency and green electricity performance with leading companies in the fertilizer industry and across the industrial sector, and presents the results to the Board of Directors.

PhosAgro Group public discussions coverage
Item 2023 2024 2025
Number of public discussions 17 9 6

Environmental management system

Our environmental management system is integrated in the Company’s overall management framework and is a key element in our approach to managing environmental responsibility.

In 2025, the environmental management system passed a recertification audit across the Company’s production sites and was found to be in full compliance with ISO 14001.

PhosAgro’s environmental management system embraces all management levels and all stages of the product’s life‑cycle, from R&D to manufacturing and finished product application by customers. This approach ensures uniform management requirements across all aspects of the Company’s operations.

The facilities have also put in place a procedure for conducting internal audits of the environmental management system. Every year, they develop internal audit programmes taking into account the environmental significance of the reviewed processes, changes affecting the facility and previous audit outcomes. The audits provide input data for the Company’s management to analyse environmental management efficiency.

Our strategic environmental and energy management goals are set out in the Company’s Strategy to 2025, as well as Water and Climate strategies. Their achievement is included in the KPIs of managers and senior executives.

As part of an integrated approach to building the environmental management system, the Group's facilities have a dedicated limit under the corporate voluntary property insurance programme to cover costs related to remedying potential pollution incidents.

Environmental management framework
Department of Ecology and Environmental Management of JSC ApatitGroup Management level• Responsible for general management, organisation and coordination of efforts to continuously enhance environmental managementStrategy and Sustainable Development CommitteeBoard of DirectorsBoard of Directors level• Defines the Company’s environmental policy and sets strategic goals to ensure environmental protection and reduce the negative impact of its operations• Maintains and regularly assesses PhosAgro's internal sustainability regulations and monitors their development, relevance, quality and efficiency, as well as compliance with applicable laws and internal sustainability objectives• Engages with key stakeholders and fosters healthy and sustainable communities across all regions of operation• Prepares recommendations to the Board of Directors on determining the Company's strategic sustainability objectivesOfficers in charge of environmental protectionEnvironmental Control and Management ServiceOperational level• Fulfils commitments to the ongoing environmental improvement and reduction of the environmental footprint• Production units, which have the greatest environmental impact, have introduced a procedure for identifying and assessing risks and opportunities. Based on the results, we develop measures to bring risks pertaining to significant environmental aspects to an acceptable level• Managers and experts responsible for making operational and other decisions that may adversely affect the environment take a specially designed training course in environmental safety

Compliance with statutory and regulatory requirements

Environmental compliance is key to running a responsible business.

PhosAgro Group’s environmental management practices ensure our compliance with the applicable environmental and nature conservation regulations and regulators’ decrees. To that end, the Company has in place an internal and external control framework, which includes internal audit and external compliance reviews, a reporting system designed in accordance with legislative requirements, and a staff training system.

All our facilities that have an adverse environmental impact are included in dedicated state registers, with relevant categories assigned to them. PhosAgro has all necessary permits in place for each of these facilities.

None of PhosAgro’s enterprises use ozone‑depleting substances in the production process. A small amount of carbon tetrachloride (not more than 250 kg/year) is used for some laboratory testing processes.

We do not undertake cross‑border hazardous waste transportation and our production sites are not situated in protected areas. Hence, there are no significant restrictions on our operations.

Spending on environmental protection, RUB mln PCSB 10, 15, 17
Item 2023 2024 2025
Current environmental protection expenses Form No. 4‑OS “Information on Current Environmental Protection Expenses”. 7,394.921 8,538.425 10,223.944
Investments in fixed assets aimed at environmental protection Form No. 18‑KS “Information on Investments in Fixed Assets for Environmental Protection and Sustainable Use of Natural Resources”. 3,544.013 5,891.585 3,658.617
Environmental impact payments 204.927 187.038 168.959
Environmental fines and damages 1.584 3.002 2.426
Total 11,145.445 14,620.050 14,053.946

In the reporting year, the Company was taking steps to remedy the harm caused by an emergency in 2019 by committing RUB 2,274.19 thousand to the reproduction of aquatic biological resources. In addition, an administrative fine of RUB 50 thousand was paid for an excess ammonia emission at the Balakovo branch on 19 February 2025.

Environmental impact payments, RUB mln PCSB 14
Item 2023 2024 2025
Atmosphere
Maximum permissible emissions 2.815 2.373 1.689
Temporarily permitted emissions 0 0 0
O‑limit 1.756 0.067 0.162
Aquatic environment
Standard permissible discharge 4.366 5.387 7.838
Temporarily permitted discharge 0 0 0
O‑limit 0 0 0
Waste
Limit 195.99 179.21 159.27
O‑limit 0 0 0
Total 204.927 187.038 168.959
Including o‑limit 1.756 0.067 0.162
Share of o‑limit in total payments, % 0.86 0.036 0.096

The reduction in the Company's environmental impact payments in 2025 was associated with decreased phosphogypsum disposal in waste facilities, achieved through its expanded application as a construction material at both the Cherepovets and Balakovo sites.

In 2025, over‑limit payments accounted for 0.096% of total environmental impact payments (vs 0.036% in 2023). They resulted from exceeding the permissible ammonia emission limit at the Balakovo branch.

Assessment, analysis, and monitoring

Continuous improvement is inherent in our environmental management. Improvement opportunities are identified by analysing our existing environmental management system, drawing on an effective mechanism of external and internal audits, monitoring, and performance evaluation involving stakeholders. Management reviews the resulting data and produces corrective action lists and system development proposals.

When assessing the Company’s performance, much attention is paid to the analysis of ESG ratings and investor feedback.

The following strategic risks affect the Company’s environmental protection objectives:

7
Environmental risk
13
Regulatory risk
19
Climate risk

Operational Environmental risks:

  • non‑compliance with the existing regulations on environmental impact
  • energy efficiency issues

The Company develops corrective measures as necessary to mitigate those risks.

The Company also pursues climate and environmental opportunities, including:

  • climate change opportunities, including the development of fertilizers with a positive climate profile, new logistics capabilities, and services for companies that embrace climate sustainability;
  • energy efficiency opportunities through expansion of in‑house power generation, reduction of energy losses, implementation of energy saving measures, and increased utilisation of renewable energy sources;
  • opportunities associated with decreased waste, emissions and discharges, achieved by applying best available techniques during construction of new facilities and reconstruction of existing production sites.
SASB RT‑CH‑110a.2 / EM‑MM‑110a.2

Our targets

Reduce gross GHG emissions (Scope 1, 2, 3)
by 14 %
by 2028 vs 2018
Reduce Scope 1 per unit emissions
to 109.1 kg of CO2‑eq. / t
of finished and semi‑finished products by 2028

2025 highlights

Scope 1 per unit emissions:
118.1 kg of СО2‑eq./t
of finished products and semi‑finished products (–21.52% vs 2018)
100 %
of mineral fertilizers supplied by the Volkhov and Balakovo branches are made using carbon‑free purchased electricity
  • The Company continued implementing RECSOIL, a joint project aimed at recarbonisation (carbon accumulation in soil) of agricultural lands.
  • The Company developed a universal internal algorithm and automated the information collection system for calculating product carbon footprints. This work was implemented as part of the carbon footprint assessment process and the improvement of the greenhouse gas emission management system to respond to stakeholders' requests about the carbon footprint of the Group's products. The project allows for generating reports on the required product mix, including within the framework of implementing the EU carbon border adjustment mechanism (CBAM).
  • Research continued at the Company’s carbon farm in the Vologda region, where specialists study compensatory CO₂ absorption by different ecosystems and carbon footprint reduction, along with testing hands‑on solutions for establishing large‑scale carbon farms in agriculture and forestry.
  • The climate project “Improving Energy Efficiency at the Balakovo branch of Apatit” was formalised. The project aims to reduce greenhouse gas emissions from purchased electricity consumption.
  • We purchased certificates for electricity obtained from renewable and low‑carbon sources.

Gross and per unit GHG emissions (Scope 1 and 2) across the Group

PCSB 9
Gross GHG emissions (Scope 1), kt СО2‑eq.
‘23 ‘24‘25‘28 Target4,778.94,716.34,711.84,175.5
Gross GHG emissions (Scope 2), kt СО2‑eq.
‘23 ‘24‘25‘28 Target829.7909.4835.8794.7
Per unit GHG emissions (Scope 1), kg of СО2‑eq./t of finished and semi‑finished products
‘23 ‘24‘25‘28 Target128.5121.2118.1109.1

PhosAgro Group has LEAD status under the UN Global Compact and is a participant of the Climate Ambition initiative.

Starting 2021, the Company has been making annual climate disclosures in line with the TCFD logic and starting 2023, with key requirements of the new IFRS S2, which enables the most thorough disclosure of the climate‑related aspects of PhosAgro Group’s strategy, risks and opportunities, management approach, results, and indicators.

The Company’s representatives are members of climate change and sustainable development task and expert groups instituted by government authorities and non‑governmental organisations, and are actively engaged in discussions on current global challenges.

Strategy and management approach GRI 3‑3

The Company focuses on climate change in line with the double materiality principle: on the one hand, it identifies and assesses the impact of its operations on climate all along the value chain from extraction of raw materials to consumption of finished products. On the other hand, it projects how climate change affects PhosAgro’s business, strategy, and financial planning.

Climate matters feature prominently in PhosAgro’s strategic and investment decisions, as well as in its day‑to‑day management. In our evaluation of investment projects, we use internal carbon price mechanisms. The Company has identified, assessed, and prioritised climate risks, establishing their short, medium and long term consequences for its production and business processes. We make our strategic plans and day‑to‑day management decisions with full awareness of the nature and extent of climate impact (both environmental and political) on the Company’s business, strategy, and financial planning. The Group develops and takes consistent steps to reduce its carbon footprint and closely interacts with partners across its value chain (suppliers and consumers) and other stakeholders domestically and worldwide.

PhosAgro’s Climate Strategy was adopted in 2020. It is a comprehensive document setting out the Company’s climate policy in the face of growing climate change and uncertainty.

Main principles of PhosAgro Group’s Climate Strategy:

  • setting up targets to reduce GHG emissions in line with the Science Based Targets initiative; using climate scenario analysis;
  • integrating climate risks into the comprehensive risk management framework for investment and day‑to‑day business activities;
  • utilising technology‑related measures along with proper organisation and management, as well as sound social and personnel policy, to reduce GHG emissions;
  • identifying not only risks, but also attractive climate‑related investment opportunities and making long‑term plans for them;
  • promoting awareness of the Company’s climate initiatives and plans, as well as cooperation in specific areas;
  • engaging stakeholders to reduce GHG emissions along the value chain.

The Climate Strategy has set the following goals:

  • to minimise GHG emissions while increasing output;
  • to improve energy efficiency and environmental performance of the key production processes;
  • to reduce energy and carbon intensity per unit of output;
  • to develop innovative fertilizers and efficient plant nutrition systems to reduce Scope 3 GHG emissions from the use of fertilizers by farmers;
  • to enter into new emerging markets for green products;
  • to retain and expand the existing market niches by ensuring PhosAgro Group’s competitive edge in terms of energy and carbon intensity.

The Company is currently focused on creating particular metrics reflecting the impact of climate action in production and management processes on financial indicators. To that end, we assessed the impact of the carbon border adjustment mechanism (CBAM) on PhosAgro’s operating expenses. The mechanism covers Russian industrial products, including, most likely, mineral fertilizers. In 2024, a cross‑functional working group refined and automated our product carbon footprint assessment mechanism, among other things to ensure alignment with the CBAM requirements. The mechanism underwent evaluation by international consultants, and its methodology was validated. The mechanism helps measure carbon footprint per each tonne of fertilizer based on a transparent calculation methodology for GHG emissions, which covers production processes and semi‑product flows fully in line with the CBAM guidelines.

Actions to deliver the Climate Strategy

In 2025, we continued to implement the Climate Agenda project aimed at creating the climate action management system and pushing forward the low‑carbon transition plan.

Climate Agenda initiatives in 2025
  • The joint RECSOIL project, aimed at soil carbon accumulation, improving soil agrophysical and agronomic properties, and enhancing resilience to climate change, is being implemented. Work on the project has been ongoing since 2024 in partnership with the UN FAO, Lomonosov Moscow State University, and Kept, on the fields of AgroGard’s partner innovation farm in the Oryol region. Company specialists, together with partners, carried out a range of field activities, performed mathematical modelling of soil carbon accumulation on the farm, and launched a series of scientific and practical workshops on soil recarbonisation. Project documentation was developed, and the project was registered as a climate project.
  • The Company formalised the climate project “Improving Energy Efficiency at the Balakovo branch of Apatit”. The project aims to reduce greenhouse gas emissions by replacing carbon‑intensive grid electricity with the branch’s own energy generated by turbine generator No. 4 using waste heat from sulphuric acid production. The climate project successfully passed validation and received a positive opinion from the validator confirming compliance with GOST R ISO 14064‑3. The expected greenhouse gas emission reduction from the project’s implementation through to 2035 is 509,995 t CO₂‑eq.
  • We purchased certificates for electricity obtained from renewable and low‑carbon sources. In 2025, the purchase volume increased by 25% y‑o‑y, reaching 375 mln kWh. Carbon‑free electricity from hydroelectric power stations accounted for 100% of the externally sourced electricity for the Balakovo and Volkhov branches of Apatit. In addition, a substantial volume of carbon‑free electricity was supplied to the Cherepovets site for the first time.
  • We also continued with the Carbon Footprint Compensation project aimed at absorbing (offsetting) GHG emissions, with a carbon farm being developed in the Vologda region for this purpose.
    • Together with the Centre for Forest Ecology and Productivity of the Russian Academy of Sciences, the Company developed a two‑tier monitoring system. The experimental farm was handed over to the Vologda State Dairy Farming Academy as part of the Centre’s large‑scale Carbon Rhythm research project, enabling scientists to continue their work. Data from the farm was submitted to the Centre for patenting as a database.
    • The Academy's Forestry Department and Tolshmenskoye prepared the forest section of the farm for research, creating natural conditions where trees compete for survival. The result is a unique scientific facility with a lifespan of up to 100 years.
    • The Russian Agrarian State University – Moscow Timiryazev Agricultural Academy developed calculation formulas for assessing the carbon footprint of the plant nutrition system for 38 crops, which will be integrated into the Agro Calculator in 2026.
  • Based on 2022–2025 data, the Institute of Global Climate and Ecology issued practical recommendations for voluntary climate‑friendly agricultural practices across five areas covering 104 crops. The carbon farm also yielded analytical data on changes in forest carbon stock over five‑year modelling periods. The analysis showed that over the first 30 years, all forest management scenarios with selective logging and additional planting of target species accumulated 29.9 and 65.02 t C/ha more carbon than the baseline. Over 50 years, the most effective scenario reached 117.58 t C/ha. Over the long term, for example over 100 years, the plantation forestry scenario proved best for carbon accumulation.

In 2025, the Company also continued to explore greenhouse gas absorption options to identify those best suited for its facilities.

Risks and opportunities GRI 201‑2

PhosAgro identifies its climate risks and opportunities based on climate change. The process is influenced by physical (changes in natural processes or phenomena) and transitional factors of various nature (changes in the policy and regulation with a view to fulfilling low‑carbon transition).

Risks

  • R1 – disruptions in production processes and logistics operations due to increasing acute climatic effects and other climate‑related factors.
  • R2 – flaws in supply chains, construction design, health and safety; negative environmental footprint and reduced flows of ecosystem services; lower resilience of infrastructure and communications due to increasing climatic effects.
  • R3 – PhosAgro Group’s failure to comply with regulations reducing its negative environmental footprint (following the adoption of the carbon border adjustment mechanism).
  • R4 – deterioration of the Company’s sustainability reputation.
  • R5 – increased costs and losses (as a result of customers’ failure to meet their obligations, rising prices for feedstock, materials and services, higher borrowing rates) and shrinking revenues (as a result of a decline in sales, customers, countries and regions of operation).

Opportunities

  • O1 – boosting PhosAgro Group’s appeal as an environmentally and climatically responsible supplier of products with a positive climate profile.
  • O2 – improved logistics driven by the new export opportunities amid shortened seasonal freeze‑up of rivers and lakes due to climate change.
  • O3 – new financial products that open up new sources of cheaper funding (such as green bonds) for companies that embraced environmental and climate sustainability.
Climate risk priority map
LowLowMediumHighMaterialityProbabilityEmergingManageableRelevantR2R3R4R1R5
Assessment frequency:
  • quarterly
Covered time horizon:
  • short‑term
  • medium‑term
  • long‑term
Process description:

the Company’s climate risk management forms an integral part of its comprehensive risk management system (RMS), with all its elements embedded in PhosAgro’s existing structure. The RMS relies on the Company’s Risk Management and Internal Control Policy and other internal policies and procedures, as well as the applicable Russian and international standards.

As part of our comprehensive risk management framework, we identify, assess, and manage climate risks.

Covered value chain stages – direct operations up and down the value chain. Climate risk management process is baked in the company‑wide risk management processes.

Climate scenario analysis

The Company views climate scenario analysis as a tool to make its climate strategy resilient to uncertainties and risks related to climate change. In line with that, we adopted climate scenarios and determined respective scenario parameters that are most probable and significant for the Company in the short, medium, and long term.

PhosAgro Group assessed the impact of climate‑related risks and opportunities on its operations under two climate change scenarios: global warming of 2°С and 4°С.

The key features of the scenarios are:

  • 2°С scenario is expected to result in stringent climate policy measures that will increase market volatility (goods, services, finances, etc.). This is projected to bring about low‑carbon transition, putting in place mechanisms of a low‑carbon economy that will slow down physical climate‑related impacts going forward;
  • 4°С scenario is expected to result in less stringent climate policy measures as compared to the 2°С scenario, triggering faster physical climate‑related changes.

Experts assessed the 2°C scenario as the most probable, hence it was selected as the basis for setting targets, evaluating risks and opportunities, and developing plans under the low‑carbon transition.

PhosAgro identified projected changes in climate risks and opportunities under the adopted climate scenarios based on risks, opportunities, scenario parameters, and time frames. In doing so, the Company focused on its operations, strategy, and financial planning.

Processes to identify and assess climate change risks are being integrated throughout the value chain – from design, procurement and apatite‑nepheline ore mining to finished product delivery.

Climate scenario analysis
Key initiatives in 2025
Focus areas Climate‑related risk and opportunities Description and results
Improve and implement technological measures to mitigate the negative impact of climate change on production processes R1, R2 The economic analysis of the majority of measures to reduce direct GHG emissions developed in 2021–2025 showed their insufficient ROI. The Company decided to further enhance technological solutions and keep looking for other promising technologies in this field.

At the same time, a number of initiatives were implemented at our facilities, such as using neutralisation heat for product drying with a corresponding reduction in gas supply – this was implemented in process systems No. 1–4 of MFPU section 2 at the Cherepovets site
Prepare feasibility studies (business projects) for innovative climate‑resilient products based on carbon dioxide utilisation. Develop production in high‑potential areas R1, R2, R5, O1 Development and testing continued for new Company products, including biological and biologised fertilizers that provide higher resilience of agricultural crops to fluctuations in climate parameters.

Solutions to combat soil degradation and desertification are being explored.

Based on experimental data, carbon farming practices were developed for 100 crops in collaboration with the Institute of Global Climate and Ecology.
Reduce the negative impacts of climate change on operational processes such as disruptions in transportation of products and raw materials, increased consumption of water for industrial use and waste water, product dusting, failures to use equipment in accordance with operating instructions and failures to create proper workplace conditions R1, R2, O2 The Energy Efficiency Programme was reviewed and an updated one developed, aimed at reducing energy consumption and increasing resource efficiency.

We purchase certificates for electricity obtained from renewable and low‑carbon sources.

Introduce an automated system to collect and process primary climate data R3, R4, O1 The Company developed a universal internal algorithm and automated the information collection system for calculating product carbon footprints.

Implement a project to transfer the settlement of Titan in the Murmansk Region to a different heat supply scheme R3, R4, R5, O1 Reduce Scope 1 GHG emissions to 19.204 kt of CO2 ‑eq. / year
Plans for 2026
Focus areas Climate‑related risk and opportunities Description, current status, and expected outcomes
Review the Climate Strategy R1, R2, R3, R4, R5, O1, O2, O3 The Strategy to 2030 proposes setting climate targets. These include minimising GHG emissions while increasing product output, improving the energy and environmental efficiency of core production processes, developing innovative fertilizers and effective crop nutrition systems to reduce GHG emissions during fertilizer application by farmers, and formalising climate projects to obtain carbon credits that can be used to offset the Company’s own GHG emissions and reduce the carbon footprint of its products.
Implement the Energy Efficiency Programme R1, R3, R4, R5, O1 Reduction of GHG emissions
Analyse the existing approach to assessing Scope 3 GHG emissions in the Purchased Goods and Services subcategory R3 Revision of the list of purchased goods and services included in the assessment of Scope 3 GHG emissions in order to obtain more complete information

Metrics and targets

PhosAgro’s climate metrics are aligned with the goals of the Climate Strategy approved by its Board of Directors.

The Company is working to expand and enhance the quality of climate‑related measurements, including both existing and prospective metrics. Most metrics are locked on targets which are aligned with the goals of the Climate Strategy and other commitments of the Company.

The metrics are monitored and reported annually to stakeholders.

The Company’s primary focus is on GHG emissions (carbon dioxide CO2, methane CH4 and nitrous oxide N2O) in all three Scopes (1, 2, and 3).

The Company calculates greenhouse gas emissions in accordance with the international guidelines:

  • 2006 IPCC (Intergovernmental Panel on Climate Change) Guidelines for National Greenhouse Gas Inventories;
  • The Greenhouse Gas Protocol: Scope 2 Guidance;
  • The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition);
  • ISO 14064‑1 – Specification with Guidance at the Organisation Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals.

Calculations are based on global warming projections of the IPCC report “Climate Change 2021: The Physical Science Basis”.

The Company’s efforts include end‑to‑end monitoring of raw data (Scopes 1, 2, and 3) and analysis of supply chain participants’ data (Scopes 2 and 3).

The targets are set in line with minimum qualitative and quantitative criteria based on RCP 2.6, a representative concentration pathway for reduction of global anthropogenic GHG emissions, in order to keep global temperature rise below 2°C by 2100.

Direct (Scope 1) GHG emissions, СО2‑eq. GRI 305‑1, 305‑4, SASB RT‑CH‑110a.1 / EM‑MM‑110a.1, PCSB 8
Assets UoM 2023 2024 2025
Kirovsk branch kt 657.8 625.0 624.6
Per unit emissions, Kirovsk branch kg per tonne of finished and semi‑finished products 55.9 50.1 49.7
Balakovo branch kt 232.7 228.2 248.4
Per unit emissions, Balakovo branch kg per tonne of finished and semi‑finished products 37.9 34.8 35.4
Volkhov branch kt 193.3 195.6 170.9
Per unit emissions, Volkhov branch kg per tonne of finished and semi‑finished products 72.4 64.3 59.2
Cherepovets site (Apatit) kt 3,695.1 3,667.5 3,667.9
Per unit emissions, Cherepovets site (Apatit) kg per tonne of finished and semi‑finished products 222.4 217.5 210.6
Total gross emissions kt 4,778.9 4,716.3 4,711.8
Total per unit emissions kg per tonne of finished and semi‑finished products 128.5 121.2 118.1
Indirect (Scope 2) GHG emissions, СО2‑eq. GRI 305‑2, 305‑4, PCSB 8
Assets UoM 2023 2024 2025
Gross emissions of the Kirovsk branch, kt kt 577.2 661.8 701.8
GHG emissions of the Kirovsk branch, kg per tonne of finished and semi‑finished products kg per tonne of finished and semi‑finished products 49.1 53.1 55.8
Gross emissions of the Balakovo branch, kt kt 46.0 0The entire volume of purchased electricity is fully covered by purchases of certificates for electricity from renewable and low-carbon sources. Throughout 2024 and 2025, the Company continued to purchase heat energy; consequently, the table reflects the greenhouse gas emissions associated with this heat consumption. 0The entire volume of purchased electricity is fully covered by purchases of certificates for electricity from renewable and low-carbon sources. Throughout 2024 and 2025, the Company continued to purchase heat energy; consequently, the table reflects the greenhouse gas emissions associated with this heat consumption.
GHG emissions of the Balakovo branch, kg per tonne of finished and semi‑finished products kg per tonne of finished and semi‑finished products 7.5 0 0
Gross emissions of the Volkhov branch, kt  kt 17.8 6.7The entire volume of purchased electricity is fully covered by purchases of certificates for electricity from renewable and low-carbon sources. Throughout 2024 and 2025, the Company continued to purchase heat energy; consequently, the table reflects the greenhouse gas emissions associated with this heat consumption. 6.7The entire volume of purchased electricity is fully covered by purchases of certificates for electricity from renewable and low-carbon sources. Throughout 2024 and 2025, the Company continued to purchase heat energy; consequently, the table reflects the greenhouse gas emissions associated with this heat consumption.
GHG emissions of the Volkhov branch, kg per tonne of finished and semi‑finished products kg per tonne of finished and semi‑finished products 6.6 2.2 2.3
Cherepovets site (Apatit), gross emissions, kt kt 188.7 240.9 127.3
GHG emissions of the Cherepovets site (Apatit), kg per tonne of finished and semi‑finished products kg per tonne of finished and semi‑finished products 11.3 14.3 7.3
Total gross emissions, kt  kt 829.7 909.4 835.8
Total GHG emissions, kg per tonne of finished and semi‑finished products kg per tonne of finished and semi‑finished products 22.3 23.4 20.9

Note

Greenhouse gas emissions were calculated in line with the Guidelines for Climate Impact Management of PJSC PhosAgro and other Group Entities (using the IPCC methodology).

In 2025, the Company purchased green attribute certificates and used them to fully offset the electricity purchased by the Balakovo and Volkhov branches of Apatit. In addition, a substantial volume of carbon‑free electricity was supplied to the Cherepovets site for the first time.

The results of the GHG assessment for purchased renewable electricity, using the market‑based method based on the certificate data, align with the results calculated using the location‑based method.

Calculation of other indirect GHG emissions GRI 305‑3
Category GHG emissions, t of СО2 ‑eq. Share in total other indirect emissions, %
2023 2024 2025 2023 2024 2025
Purchased goods and services The data for comparable periods, including the base year, for the purchased goods and services category have been adjusted due to adjustments to the carbon footprint data for products that the supplier previously provided. 4,233,076 4,750,908 4,693,395 27.918 30.686 30.018
Fuel‑ and energy‑related activities not included in Scope 1 or Scope 2 427,877 476,046 469,777 2.822 3.075 3.005
Processing of sold products 642,002 631,219 626,339 4.234 4.077 4.006
Use of sold products 9,859,766 9,624,096 9,846,005 65.026 62.162 62.972
Total 15,162,721 15,482,269 15,635,516 100.000 100.000 100.000

Scope 3 greenhouse gas emissions were calculated for four categories after an expert review identified them to be the most significant emission sources for the Company.

Scope 3 GHG emissions, СО2‑eq. GRI 305‑3, 305‑4
Category 2023 2024 2025
Total gross emissions of production assets, t 15,162,721 15,482,269 15,635,516
Total GHG emissions of production assets, kg per tonne of finished and semi‑finished products 407,830 397.722 391.878
GRI 305‑5

We have chosen 2018 as the base year for calculations because it was the Company’s first GHG inventory year and we needed to set GHG reduction targets for all three scopes based on the available emission data. In 2018, GHG emissions were as follows:

  • direct GHG emissions (Scope 1) – 4,624.6 kt of CO2‑eq.;
  • indirect GHG emissions (Scope 2) – 924.1 kt of CO2‑eq.;
  • other indirect GHG emissions (Scope 3) – 12,634.4 kt The data for comparable periods, including the base year, for the purchased goods and services category have been adjusted due to adjustments to the carbon footprint data for products that the supplier previously provided. of CO2‑eq.
Metrics and targets
Analysis of factors affecting changes in GHG emissions in 2025 compared to 2018 GRI 305‑5
Scope 1 Scope 2 Scope 3
2018 2025 2018 2025 2018 2025
Production volume, mt 30.73 39.89 30.73 39.89 30.73 39.89
GHG emissions, kt 4,624.59 4,711.80 924.11 835.80 12,634.42 15,635.52
Change in GHG emissions in the reporting year vs 2018, % +1.89 –9.56 +23.75
Per unit GHG emissions, kg/t 150.47 118.10 30.07 20.95 411.08 391.88
Change in per unit GHG emissions in the reporting year vs 2018, % ‑21.52 –30.33 ‑4.67
Change in GHG emissions in the reporting year vs 2018, output growth factor, kt 1,378.92 275.54 3,767.22
Reduction in GHG emissions vs 2018 excluding the output growth factor, kt –1,291.71 –363.85 –766.13

In 2025, per unit Scope 1 GHG emissions declined by 32.37 kg/t, or 21.52%, vs 2018, whereas gross Scope 1 GHG emissions increased by 1.89% vs 2018 due to an increase in output. Excluding the output growth factor, gross emissions decreased by 1,291.71 kt compared to 2018, with the most considerable impact coming from: 1) increased production efficiency, primarily a reduction in per unit natural gas consumption in production processes, and 2) changes in the structure of semi‑finished product consumption in fertilizer production.

Per unit Scope 2 GHG emissions declined by 30.33% compared to the baseline year of 2018, while gross Scope 2 GHG emissions (excluding the output growth factor) decreased by 363.85 kt vs 2018. The reduction was achieved thanks to procurement of green electricity, as well as energy efficiency initiatives.

Gross Scope 3 GHG emissions increased by 23.75% relative to the baseline year, with per unit emissions down by 4.67%. The key factor affecting the growth in Scope 3 emissions was the increased production volume, which led to more purchases of feedstock and increased emissions from product use. Excluding the output growth factor, Scope 3 GHG emissions decreased by 766.13 kt vs the baseline year.

Back in 2024, we modernised our product carbon footprint data collection process through substantial automation within our Cognos information system. This technical advancement enables plant‑specific carbon footprint calculations across the entire PhosAgro Group, supports more sophisticated factor analysis of changes, and generates required reporting data for the EU CBAM, with our calculation methodology validated during this reporting year.

Our enhanced data capabilities now support deeper analytics into factors driving year‑on‑year changes.

Change in Scope 1 emissions in product carbon footprint, kt of CO2‑eq.The charts present an analysis of the factors that had the greatest impact on y‑o‑y changes in the product’s carbon footprint. Data used to calculate the product’s carbon footprint exclude certain items that are included in the Company’s total GHG emissions.
‘25‘244,7324,69410911531440001912153726489
Change in Scope 2 emissions in product carbon footprint, kt of CO2‑eq.The charts present an analysis of the factors that had the greatest impact on y‑o‑y changes in the product’s carbon footprint. Data used to calculate the product’s carbon footprint exclude certain items that are included in the Company’s total GHG emissions.
‘25‘24153726489000008988201125631
Change in Scope 3 emissions in product carbon footprint, kt of CO2‑eq.The charts present an analysis of the factors that had the greatest impact on y‑o‑y changes in the product’s carbon footprint. Data used to calculate the product’s carbon footprint exclude certain items that are included in the Company’s total GHG emissions.
00153726489‘25‘2415,75815,406586121223505344
Change in total emissions in product carbon footprint, kt of CO2‑eq.The charts present an analysis of the factors that had the greatest impact on y‑o‑y changes in the product’s carbon footprint. Data used to calculate the product’s carbon footprint exclude certain items that are included in the Company’s total GHG emissions.
‘25‘2415372648920,998706533172519350446521,310
Growth driven by higher production volumeReductionGrowth driven by factors other than higherproduction volume1.Volumes2.Ammonia consumption structure3.Heat energy4.Grid electricity5.Green electricity6.Gas consumption rates, etc.7.GHG in purchased feedstock8.Scope 3 GHG emissions in the Processing of Sold Products category9.Other factors
List and description of existing metrics introduced for the monitoring of performance under the Climate Strategy
Metric 2023 2024 2025
Gross global emissions (Scopes 1 and 2) per currency unit of total revenue (GRI 305‑4) The indicator was calculated as the ratio of the sum of Scope 1 and 2 gross emissions under GRI 305-1 and GRI 305-2 respectively to PhosAgro Group revenue according to consolidated financial statements converted into USD mln at monthly average USD/RUB exchange rates., t of CO2‑eq. / USD mln 1,072.400 1,025.714 807.511
Gross global emissions (Scope 1 and 2) per FTE (GRI 305‑4) The indicator was calculated as the ratio of the sum of Scope 1 and 2 gross emissions under GRI 305-1 and GRI 305-2 respectively to the average headcount under GRI 207-4., t of CO2‑eq. / FTE 256.900 238.206 225.677
Electricity purchased per unit of finished and semi‑finished products, ‘000 kWh / t 0.064 0.067 0.062
Energy efficiency improvement costs, RUB mln 371.900 4.95The expenditure level reflects our 2024 focus on projects commissioned in 2025, including the large‑scale facility in Balakovo. 500,0
Share of feedstock suppliers providing necessary input data on GHG emissions (Scope 3), % 9.5 13 22

Our targets

Reduction of Scope 2 GHG emissions to
794.7 kt of СО2‑eq.
by 2028 through the Energy Efficiency Programme
Energy efficiency

2025 highlights

Scope 2 GHG emissions totalled
835.8 kt CO2‑eq,
down 8% from 2024. The reduction was underpinned by the implementation of the Company’s Strategy to 2025 and Energy Efficiency Programme, combined with and green electricity purchases.
In 2025, the consumption of all types of energy resources per tonne of finished and semi‑finished products decreased by 1.17% y‑oy to
2.91 GJ1 In 2025, the methodology for allocating natural gas between fuel and feedstock in ammonia production units was changed.
The reduction was underpinned by the implementation of the Company’s Strategy to 2025 and Energy Efficiency Programme.
PCSB 18

In 2025, as part of developing the energy management system (EnMS) in line with ISO 50001 requirements, the Cherepovets complex (pilot site) introduced organisational changes to improve energy management processes.

  • An EnMS team of over 30 members, including key managers, was formed. Responsible EnMS personnel from business units received training on “Enterprise Energy Management. Organisation and Implementation Practices. Internal Audit”.
  • A new energy performance indicator was introduced to give better control over power generation, increasing the share of self‑generated electricity by 4.6%.
  • The process for developing and monitoring the energy efficiency programme was updated. As a result, a three‑year programme was developed for the Cherepovets site, targeting total energy savings of RUB 549.42 mln, of which RUB 271.49 mln was actually achieved in 2025.
  • Work began on developing dashboards for energy efficiency metrics, with automatic data collection and analysis. Automation of the monthly calculation of specific production energy intensity is also underway.
  • An energy analysis of the Volkhov branch led to a decision to roll out the EnMS there. Energy efficiency targets for 2026 have been set.

1 In 2025, the methodology for allocating natural gas between fuel and feedstock in ammonia production units was changed.

In 2025, total self‑generated electricity at the Cherepovets site and the Volkhov and Balakovo branches reached a record high of 1,752.17 mln kWh, up 20.2% y‑o‑y. The increase was mainly driven by the completion of repairs and the start‑up of a gas turbine power plant at the Cherepovets site. Lower electricity output at the Balakovo and Volkhov branches was due to repairs on generating equipment and temporary restrictions related to investment projects at the Balakovo branch.

Electricity generation, mln kWh
Production site 2023 2024 2025 Change y‑o‑y, %
Cherepovets site 807.70 808.56 1,141.69 41.2
Balakovo branch 384.53 378.22 349.91 –7.5
Volkhov branch 251.86 271.00 260.57 –3.8
Total 1,444.09 1,457.78 1,752.17 20.2
In 2025, self‑generated electricity covered
41.3 %
of the Company's production asset needs, up 3.9 y‑o‑y.

A further increase in the share of self‑generated electricity is expected in 2026, following the start‑up of two 2 MW gas-piston power plants and an 18 MW exhaust gas turbine at the Balakovo branch.

Strategy and management approach GRI 3-3, 302-4

In 2025, the Company continued to follow the Climate Strategy and the Energy Efficiency and Energy Saving Policy approved by the Board of Directors. We reviewed and updated the list of initiatives set out in the Energy Efficiency Programme, which is tightly integrated into the Company’s Strategy to 2025.

Key goals of the Energy Efficiency and Energy Saving Policy

  • Continuously improving energy efficiency
  • Using energy resources in a sustainable and efficient manner
  • Streamlining the energy management process for all types of operating activities

The Company pays particular attention to managing energy efficiency risks

  • A sufficient and reliable energy supply is a material aspect and major concern for us. We thoroughly explore all opportunities to transition to renewable energy: among other things, in 2025, we continued to purchase electricity generated by hydroelectric power plants.
  • Risk of Scope 2 GHG emissions being included in carbon regulation in the EU and other jurisdictions. The Company’s energy efficiency directly affects Scope 2 GHG emissions, which poses a potential risk, for example after full-scale implementation of carbon border adjustment mechanisms.

The Company also evaluates potential energy efficiency opportunities, including:

  • Market availability of electricity from renewable energy sources. The Company continuously monitors the market to ensure a sufficient supply of electricity from renewable energy sources.
  • Development of an energy management system using AI tools that can quickly and efficiently forecast energy consumption, identify hidden energy losses, and optimise equipment operation in real time, thereby reducing both costs and the carbon footprint.

Stakeholder engagement

The Company conducts an annual analysis of the low‑carbon electricity market, benchmarking its operations against leading industry players and broader industrial benchmarks. We prioritise aligning our electricity consumption with evolving requirements for electricity generation and the development of carbon‑free (green) energy attribute certificate market. Through active participation in the energy industry events, the Company shares expertise with market stakeholders and gathers critical insights on energy efficiency trends and innovations in the energy transition.

The NP Market Council Association A self‑regulatory organisation for the wholesale energy market participants. launched a mechanism and platform for transparent tracking of green electricity generation as well as certificate issuance, sales, and redemption. This mechanism ensures the traceability of the electricity origin, certification of green energy producers, and mitigation of risks linked to the sale of green attribute certificates to sustainability‑focused consumers seeking to reduce their carbon footprint through verified purchases.

The initiatives set out in the Energy Efficiency Programme are aimed at improving energy efficiency, developing energy management at each production site, and achieving strategic objectives in the following focus areas:

  • in‑house power generation through utilisation of sulphuric acid production steam;
  • introduction of technologies aimed at loss reduction and energy savings (e.g. LED lighting, frequency converters, less heat energy losses).

In addition, the Company actively studies and tests promising solutions, including by increasing the share of renewable energy sources both as part of pilot projects at PhosAgro’s own facilities and through green electricity purchases.

In 2025, we implemented comprehensive energy efficiency projects at all of our sites.

Key initiatives in 2025
Initiative Result Expenditures, RUB mln Timeline

Cherepovets site

Introduction of an electricity generation index for the heat and power plant and ammonia unit No. 3

Increased generation through comparative analysis of generating equipment capabilities and actual performance No capital expenditures; implemented using the Company's own personnel 2025

Kirovsk branch

Upgrades to the heat supply infrastructure of the Titan settlement

Removal of 6,175 t/year of M‑100 heating oil from the Kirovsk branch’s balance 177 2024–2025

Kirovsk branch

Modification of the water transport scheme between process tanks as part of phosphate rock processing

Reuse of 250–300 m³/hour of water in the process cycle 36 2024–2025

Volkhov branch

Implementation of a zero‑discharge domestic waste water system at the Volkhov branch of Apatit

Reduced reliance on river water by utilising the chemical water treatment of domestic waste water for the heat and power plant 287 2024–2025
Key initiatives planned for 2026
Project Result Expenditures, RUB mln

Cherepovets site

Implementation of a digital advisor for optimal 4.0 MPa steam generation load distribution at the nitrogen facility

Digital advisor for optimal 4.0 MPa steam generation load distribution at the nitrogen facility No capital expenditures; to be implemented using the Company's own personnel

Kirovsk branch

Kirovsky mine. Construction of a cooling tower for K‑500 compressors

Reduction in utility and drinking water consumption by switching from a wet cooling tower to a dry cooling tower with a closed cooling loop 150

Balakovo branch

Development of in‑house electricity generation using turbine and piston units Construction and installation work was completed in 2025, with commissioning and documentation activities to be carried out in 2026.

200 mln kWh annual replacement of purchased electricity 2,563

Volkhov branch

Implementation of centralised lighting control with motion sensors in the heat and power plant’s turbine halls

Reduced electricity consumption 0.24

AI projects

Boiler unit emergency simulator for the heat and power plant

Machine learning

In 2025, we completed the piloting of the computer simulator for emergency training on boiler units at the heat and power plant and launched into commercial operation.

Operating principle: neural network technologies generate realistic scenarios and simulate equipment behaviour, using a data analysis system.

Functionality:

  • Realistic boiler operation simulation
  • Normal condition process training
  • Abnormal and emergency situation training

Impact: improved training quality for boiler unit personnel and reduced errors.

Digital advisor for optimal 4.0 MPa steam generation load distribution at the nitrogen facility in Cherepovets site

Machine learning

The project aims to save fuel gas through more efficient steam generation achieved by optimally distributing the load among generating units. The performance of nine steam generation sources is assessed online using an AI‑based multi‑parameter model. The system then determines the most efficient operating mode for the entire steam network, respecting all technological constraints Optimal settings are displayed on operators' screens as recommendations. After each run, the system evaluates the efficiency of the chosen mode and the operators' actions.

Metrics and highlights

The energy efficiency metrics are used to monitor the Company’s progress towards its energy efficiency improvement target and are set forth in PhosAgro’s Energy Efficiency Programme, which helps keep track of electricity generation and consumption, energy intensity, etc.

The energy efficiency metrics are based on PhosAgro’s raw data and are calculated in accordance with the approved statistical methodologies.

In 2025, self‑generated electricity covered 41.3% of the Company’s production asset needs, up 3.9% y‑o‑y. In absolute terms, in‑house electricity generation rose by 194.1 mln kWh y‑o‑y, mainly due to the restart of a gas turbine power plant at the Cherepovets site after repairs. Total electricity consumption increased by 81.8 mln kWh (2.0%) y‑o‑y, driven by modernisation programmes at processing facilities and higher apatite ore mining at the Kirovsk branch of Apatit.

In 2025, Apatit used 375 mln kWh of carbon‑free electricity at its production sites, up 25% y‑o‑y. This means that mineral fertilizers supplied by the Volkhov and Balakovo production sites in 2025 were manufactured using exclusively green power purchased from the hydroelectric power plants. In addition, carbon‑free electricity was supplied to the Cherepovets site for the first time, totalling 108.9 mln kWh.

PhosAgro Group’s energy consumption GRI 302‑1, 302‑3, SASB RT‑CH‑130a.1 / EM‑MM‑130a.1
Item UoM Total for production assets
2023 2024 2025
Electricity
Purchased electricity, including mln kWh 2,396.25 2,604.75 2,492.46
Purchased from renewable sources mln kWh 300.00 300.00 375.00
Electricity purchased per unit of finished and semi‑finished products ‘000 kWh / t 0.064 0.067 0.062
Heat energy
Purchased (in hot water) '000 Gcal 423.36 415.75 364.73
Supplied (in hot water) '000 Gcal 104.80 84.20 53.35
Exhaust steam '000 Gcal 9,229.87 9,599.12 9,893.34
Per unit consumption of heat energy Gcal/t 0.257 0.255 0.256
Natural gas
As feedstock for ammonia production mln m3 1,294.82 1,291.88 1,288.32
As fuel, etc. mln m3 1,420.23 1,406.17 1,425.71
Total mln m3 2,715.05 2,698.05 2,714.03
Consumption per unit of finished and semi‑finished products The Company excludes natural gas used as feedstock for ammonia production from the calculation of per unit energy consumption. '000 m3 / t 0.038 0.036 0.036
LNG
Consumption t 2,782.06 2,667.79 2,408.43
Fuel oil
Consumption t 146,764.10 145,449.70 143,750.30
Heating oil
Consumption t 789.80 802.60 762.20
Diesel fuel
Consumption t 57,109.12 45,344.42 50,796.63
Energy consumption, GJ GRI 302‑1, 302‑3, PCSB 12
Item 2023 2024 2025
Internal use of electricity 8,626,491 9,377,112 8,972,853
Internal use of heat energy 39,977,375 41,577,704 42,725,113
Internal consumption of natural gas (excluding gas consumed as feedstock during production processes) In 2025, the methodology for allocating natural gas between fuel and feedstock in ammonia production units was changed. 55,388,969 54,840,482 55,602,641
Internal consumption of LNG 151,344 145,128 131,019
Internal consumption of fuel oil 6,472,297 6,414,332 6,339,388
Internal consumption of heating oil 36,489 37,080 35,214
Internal consumption of diesel fuel 2,604,176 2,067,705 2,316,326
Total internal consumption 113,257,141 114,459,543 116,122,554
Total energy consumption per unit of finished and semi‑finished products, GJ/t 3.05 2.94 2.91

Our targets

By 2025, increase the share of recycled and decontaminated hazard class 1–4 waste
to 40 %
Waste

2025 highlights

40.75 %
of hazard class 1–4 waste recycled and decontaminated
Class 1–5 waste generation fell
by 9.5 %
y‑o‑y.
Waste generation per tonne of finished and semi‑finished products dropped by more than
12 %
compared with 2024.

Strategy and management approach GRI 3‑3, 306‑1

PhosAgro’s Development Strategy to 2025 stipulated an increase in the share of recycled hazard class 1–4 waste
to 40 %

Having developed a system for accumulating and analysing data on production and consumption waste from our operations, we are now implementing a range of projects aimed at minimising waste generation and increasing the share of recycled waste.

PhosAgro’s waste management is monitored on a regular basis and discussed by the Strategy and Sustainable Development Committee before being communicated to the Board of Directors.

Waste

The management system covers:

an inventory of resources that are used to manufacture products and become waste afterwards;

data on the amount of waste generated from our own operations, including future waste in the form of products or their part provided to customers;

measures to remove environmental and health hazards;

waste characteristics;

identification of activities and processes that generate significant amounts of waste.

properties that limit or prevent the recycling (recovery) of the material or product or limit its useful life;

continuous monitoring of known and potential negative characteristics of certain materials after they become waste.

Management approach

Key initiatives in 2025 GRI 306‑2

PhosAgro is implementing consistent efforts to increase the share of recycled and decontaminated hazard class 1–4 waste. At each production site, measures are taken to identify potential types of materials that can be diverted for recycling.

All contractors working at the Company’s sites undergo training and are informed of waste management requirements, which are explicitly outlined in work/service agreements. Compliance with safe and proper waste handling protocols is strictly enforced.

Promoting phosphogypsum utilisation

The Company sold a total of
95.4 kt
of phosphogypsum in 2025. +400 tonnes y‑o‑y

PhosAgro continued the use of phosphogypsum as a construction material at Apatit’s Volkhov and Balakovo sites. This helped reduce the volume of phosphogypsum sent to waste disposal facilities.

The Company completed testing of a new phosphogypsum‑based land reclamation agent designed for land restoration and fertility enhancement. Test results confirmed the environmental safety of the substance under recommended application conditions, and the draft technical documentation received a positive state environmental expert review. Production is planned at Apatit’s sites in Cherepovets, Balakovo, and Volkhov.

In the reporting year, extensive research was conducted into the properties of phosphogypsum as a road base material, including an assessment of the environmental impact of structures built from this material. The research confirmed the absence of environmental contamination. Using phosphogypsum in road pavement construction not only reduces waste but also lowers road‑building costs and extends road service life through improved surface quality.

Aluminium fluoride production expansion

The Company is developing a project for the further modernisation of production to raise aluminium fluoride output to 96 ktpa – sufficient to fully localise production of this product in Russia and meet 100% of domestic demand. Aluminium fluoride is a critically important component for the raw material security of Russia’s non‑ferrous metal industry. Its primary feedstock is fluosilicate acid – a by‑product of the Company’s mineral phosphate‑based fertilizer production. In metal industry applications, aluminium fluoride improves process efficiency by reducing energy consumption and environmental load.

Metrics and highlights SASB RT‑CH‑150a.1

Share of recycled and decontaminated hazard class 1–4 wasteThe Group specific disclosure was calculated as ratio of hazard class 1–4 waste recycled and decontaminated to the total volume of hazard class 1–4 waste., %
‘23 ‘24‘25‘25Goal40.2040.3240.7540.00
Waste generation by hazard class, t GRI 306‑3, PSCB 5
Waste hazard class 2023 2024 2025
I 3.82 3.12 23.98
II 3.23 2.11 1.27
III 1,278.12 1,848.45 2,483.87
IV 253,064.94 247,706.29 246,481.02
V 94,372,377.65 99,274,182.20 89,839,875.07
Total 94,626,727.75 99,523,742.16 90,088,865.20
Waste by type and disposal method, tHazardous means hazard class 1–4 waste; non‑hazardous means hazard class 5 waste. GRI 306‑4, 306‑5, PCSB 6
Disposal method 2023 2024 2025
PhosAgro Group’s waste reused internally 26,418,490.4 20,722,469.5 19,337,089.6
  • Hazardous waste
99,800.9 98,311.9 98,603.5
  • Non‑hazardous waste
26,318,689.5 20,624,157.6 19,238,486.1
Total waste landfilled 65,294,928.0 80,586,785.7 65,384,442.9
  • Hazardous waste
153,525.5 148,801.6 144,710.0
  • Non‑hazardous waste
65,141,402.5 80,437,984.1 65,239,732.9
Including landfilled at the Company’s waste disposal facilities 65,285,342.7 80,579,179.0 65,376,232.6
  • Hazardous waste
143,988.9 145,011.2 143,929.1
  • Non‑hazardous waste
65,141,353.8 80,434,167.8 65,232,303.5
Third‑party recycled 83,219.2 24,409.6 25,295.2
  • Hazardous waste
1,808.1 1,785.5 1,473.8
  • Non‑hazardous waste
81,411.1 22,624.1 23,821.4
Third‑party decontaminated 612.2 539.1 1,382.1
  • Hazardous waste
563.2 536.7 1,376.7
  • Non‑hazardous waste
49.0 2.4 5.4
Third‑party processed 3,027.4 4,502.9 5,343.8
  • Hazardous waste
314.2 278.7 1,818.8
  • Non‑hazardous waste
2,713.2 4,224.2 3,525.0
Disposal of beneficiation waste and overburden at Kirovsk branch, t SASB EM‑MM‑150a.1, EM‑MM‑150a.2
Item Reused Landfilled at waste disposal facilities
2023 2024 2025 2023 2024 2025
Apatite‑nepheline ore processing waste (tailings) 12,984,017.0 13,487,447.6 14,035,163.2 12,812,723.0 13,290,756.4 13,829,945.8
Rocks and overburden mix 9,916,198.0 4,547,241.0 3,123,468.0 43,680,591.0 60,385,005.0 47,096,592.5
Waste generation, tonne per tonne of finished and semi‑finished products
Production site 2023 2024 2025
Kirovsk branch 7.000 7.211 6.636
Balakovo branch 0.900 0.697 0.357
Volkhov branch 0.001 0.001 0.002
Cherepovets site (Apatit) 0.400 0.298 0.236
Total 2.500 2.557 2.258
Waste generation (hazard class 1–4), kg per tonne of finished and semi‑finished products
Production site 2023 2024 2025
Kirovsk branch 0.7 0.3 0.2
Balakovo branch 28.7 27.9 23.0
Volkhov branch 0.7 0.3 0.4
Cherepovets site (Apatit) 4.1 3.7 4.8
Total 6.8 6.4 6.2
Waste generation

Our targets

Reduce pollutant emissions by 2025
to 0.8 kg/t
of finished and semi‑finished products
Air

2025 highlights

Per unit pollutant emissions in 2025 came in at
0.667 kg/t
of finished and semi‑finished products, down 36% from 2018
In 2025, the Company's gross pollutant emissions to the atmosphere decreased by more than
1 kt
y‑o‑y.

All measures under the Clean Air federal project within the Ecology national programme at the Cherepovets production site were completed on schedule.

Strategy and management approach GRI 3‑3

PhosAgro Group has developed and now maintains an emissions management process that includes assessment of planned activities, discussion of relevant matters with a wide range of stakeholders, as well as monitoring and disclosing pollutant emissions. To effectively reduce its environmental impact, PhosAgro is running a programme to re‑equip production facilities and cut pollutant emissions.

PhosAgro takes part in the government’s Clean Air initiative, which aims to drastically reduce air pollution in major industrial cities across Russia. As part of the initiative, the Company implemented a number of measures, which helped reduce gross pollutant emissions in 2025 by 25% vs the 2017 level (project launch).

Air quality in sanitary protection areas near the Company’s production sites complies with applicable hygienic requirements.

Since 2019, PhosAgro has been implementing a programme to upgrade its sulphuric acid production and adopt a domestic energy efficient and environmentally safe sulphuric acid production technology. This technology utilises the Double Contact Double Absorption (DCDA) process for sulphuric acid production, developed by the Samoilov Scientific Research Institute for Fertilizers and Insectofungicides (NIUIF), part of PhosAgro Group. The programme includes the launch of sulphuric acid production units at the Company’s Cherepovets site and its Balakovo and Volkhov branches.

Key initiatives in 2025

Apatit participates in the Clean Air federal project as part of the Ecology national programme. In 2018–2025, Apatit focused on reducing air pollutant emissions at its production sites.

The Cherepovets branch fully implemented a comprehensive action plan, took additional measures to achieve emission quotas, modernised SK‑714 technological system, and introduced a domestic environmentally safe sulphuric acid production technology. During the upgrade, gas cleaning systems were reequipped and core equipment optimised.

At the Volkhov branch, the key activities to mitigate the negative impact on the air quality were implemented as part of an investment project to develop the Volkhov site: technical solutions to reduce per unit emissions and pollutant concentrations at the sanitary protection zone boundaries near residential areas were initially integrated into the design of new production lines and existing facility upgrades. This approach achieved a 68% reduction in per unit pollutant emissions compared to 2020 levels.

Key initiatives to reduce negative air quality impacts at the Balakovo branch included:

previously implemented measures at the sulphuric acid units enabled the positive downward trend in per unit atmospheric emissions to be maintained for the second consecutive year.

At the Kirovsk branch, annual dust suppression measures were carried out at beneficiation facilities’ tailings dumps, including chemical and biological stabilisation of dust‑emitting surfaces and industrial pilot testing of new dust‑suppression agents. As a result, more than 28 t of particulate matter – equivalent to 40% of total particulate emissions at the site – were prevented from entering the atmosphere.

Effectiveness of dust suppression at Kirovsk branch’s tailing dumps
Facility Solid particulate (SP) emissions, t Prevented SP emissions to atmosphere, t Prevented SP emissions, %
Tailing dump at ANBP‑2 28.3 19.0 40
Tailing dump at ANBP‑3 14.7 9.7 40
TOTAL 43.1 28.7 40

Metrics and highlights

Pollutant emissions, kg per tonne of finished and semi‑finished productsThe Group’s specific disclosure is calculated as the ratio of pollutant emissions to the total output of products and semi‑finished products.
‘23 ‘24‘25‘25Goal0.7990.7120.6670.800
NOX, SOX, and other significant air emissions, t GRI 305‑7, SASB RT‑CH‑120a.1 / EM‑MM‑120a.1, PCSB 7
2023 2024 2025
Total
Kirovsk branch 10,056.80 10,022.10 8,852.11
Balakovo branch 8,217.00 6,522.61 6,494.44
Volkhov branch 1,203.40 1,365.06 1,585.72
Cherepovets site (Apatit) 10,235.00 9,788.55 9,681.48
Total 29,712.20 27,698.32 26,613.75
Solids
Kirovsk branch 4,969.60 3,521.84 3,422.81
Balakovo branch 745.50 796.20 1,377.75
Volkhov branch 214.60 287.11 377.13
Apatit (Vologda region) 768.00 1,250.47 1,320.84
Total 6,697.70 5,855.62 6,498.53
Sulphur dioxide
Kirovsk branch 3,273.70 3,101.61 2,456.25
Balakovo branch 4,723.70 3,066.45 2,749.82
Volkhov branch 351.50 493.07 572.28
Cherepovets site (Apatit) 3,736.60 3,776.57 3,674.48
Total 12,085.50 10,437.70 9,452.83
Carbon monoxide
Kirovsk branch 908.20 1,364.66 1,130.51
Balakovo branch 927.60 821.47 391.13
Volkhov branch 153.40 175.87 244.3
Cherepovets site (Apatit) 1,332.60 893.31 982.29
Total 3,321.80 3,255.31 2,748.23
Nitrogen oxides (NOX as NO2)
Kirovsk branch 859.50 1,831.51 1,658.66
Balakovo branch 759.40 915.33 811.12
Volkhov branch 224.40 223.59 308.95
Cherepovets site (Apatit) 2,467.60 1,971.66 1,857.35
Total 4,310.90 4,942.08 4,636.08
Hydrocarbons (w/o VOCs)
Kirovsk branch 7.60 0.71 0.71
Balakovo branch 2.60 0.94 0.17
Volkhov branch 0.00 0.02 0.03
Cherepovets site (Apatit) 4.00 4.89 6.45
Total 14.20 6.56 7.36
Volatile organic compounds
Kirovsk branch 38.10 200.68 183.02
Balakovo branch 339.50 218.20 135.30
Volkhov branch 5.80 10.590 28.510
Cherepovets site (Apatit) 12.9 12.81 13.08
Total 396.30 442.28 359.91
Other gaseous and liquid pollutants
Kirovsk branch 0.10 1.10 0.16
Balakovo branch 718.70 704.02 1,029.14
Volkhov branch 253.7 174.82 54.53
Cherepovets site (Apatit) 1,913.30 1,878.83 1,827.00
Total 2,885.80 2,758.77 2,910.83
Other gaseous and liquid pollutants
RT‑CH‑140a.2 / EM‑MM‑140a.2

Our targets

Reduce water withdrawal, excluding mining and pit waters, to
2.60 m3/t
of products by 2025.
Reduce waste water discharge into surface water bodies, excluding mining and pit waters
to 1.70 m3/t
of products by 2025.

2025 highlights

The Company's water withdrawal, excluding mining and pit waters, decreased by 10.1% from the 2024 level and amounted to
2.95 m3/t
of products.
Waste water discharge into surface water bodies, excluding mining and pit waters, dropped by 14.4% y‑o‑y and stood at
1.63 m3/t
of products.

Strategy and management approach GRI 3‑3, 303‑1

Water is an essential resource for the Company. There is no shortage of water resources in the regions where our facilities are based. According to the Water Risk Atlas and Water Risk Filter, all PhosAgro production sites are located in areas with low or moderate fresh water scarcity. However, access to clean water is a major issue facing the world.

Risks and opportunities SASB RT‑CH‑140a.3

The main risks related to water consumption are water quality deterioration in water bodies across PhosAgro’s footprint and the Company’s non‑compliance with statutory requirements for limiting one’s negative impact on water bodies.

PhosAgro has implemented closed‑loop water recycling systems at its sites in Volkhov and Balakovo to reuse water in production processes.

Going forward, we plan to improve waste water management by focusing on maximum reuse of water through closed‑loop water recycling systems and better treatment of effluents discharged into water bodies in addition to ongoing monitoring of water bodies in the regions of operation.

The regulatory risks include tightened waste water quality requirements, as well as restrictions on the amount of water consumed and discharged into both water bodies and centralised waste water systems.

There were no incidents of non‑compliance associated with water quality permits, standards, and regulations in 2025.

To mitigate these risks, in 2020 we adopted the Water Strategy that sought to reduce water consumption and discharge and improve waste water quality.

The strategy is implemented at all PhosAgro sites, and we regularly analyse these measures to determine whether they are sufficient and effective enough to achieve our targets.

To identify the impact of the Company’s operations on water bodies, we monitor these bodies in accordance with adopted programmes by engaging our own certified laboratory and external certified laboratories.

Key initiatives in 2025

At the Cherepovets site, we continued to implement the second stage of the water use optimisation programme as part of our production upgrade initiative for 2020–2025. The unit for pumping treated effluent back to phosphate facility consumers was reconstructed, reducing waste water discharge by 0.87 mln m³ per year from 2022. At the nitrogen facility, basic design for a production waste water treatment system was completed, and engineering documentation for the industrial waste water management system at the neutralisation and treatment unit was finalised.

At the Kirovsk branch, a water reuse circuit following compressors at the ANBP‑2‑2 beneficiation plant was commissioned, reducing water consumption by 4.8 mln m³ per year.

At the Volkhov branch, the facility transitioned to a zero‑discharge water management scheme: domestic and municipal waste water treatment facilities were commissioned and discharge into the municipal network discontinued. Work continued on replacing river water with recirculated plant water in sulphuric acid production, reducing water withdrawal from natural sources by 14.7% compared with 2024.

The Balakovo branch worked to fully eliminate the transfer of domestic and municipal waste water to third parties, with loop closure through the treatment station planned.

Metrics and highlights

Discharge of waste water into surface water bodiesThe Group specific disclosure was calculated as the ratio of the volume of waste water discharged into surface water bodies, excluding mine and pit waters, to the total volume of products and semi‑finished goods manufactured., m3 per tonne of products and semi‑finished products
‘23 ‘24‘25‘25Goal1.901.831.631.70
Water withdrawalThe Group specific disclosure was calculated as the ratio of total water withdrawn, excluding mining and pit waters, to the total output of products and semi‑finished products., m3 per tonne of products and semi‑finished products
‘23 ‘24‘25‘25Goal3.223.252.952.60

The per unit water withdrawal target was not achieved in the reporting year. Withdrawal volumes rose due to the need to reduce total salt content in the circulating water systems at the Balakovo branch and Cherepovets facility to improve heat transfer coefficients.

Total water withdrawal by source, '000 m3 GRI 303‑3, SASB RT‑CH‑140a.1 / EM‑MM‑140a.1, PCSB 1, PCSB 2
Item 2023 2024 2025
Surface water
Total water withdrawal from surface sources, including: 176,760 180,997 196,976
  • process water
63,029 68,018 66,887
  • drinking water (internal use)
1,093 1,159 1,462
  • drinking water (for supplies to third parties)
527 399 460
  • mining and pit waters
105,024 105,409 123,118
  • drainage water
2,742 2,337 2,289
  • rainwater
4,345 3,675 2,760
Ground water
Water withdrawal from ground‑water sources 3,507 3,495 3,376
Total water received from third‑party suppliers, including: 44,636 47,626 40,524
  • process water received from suppliers
30,359 31,478 27,736
  • water from municipal supply (internal use)
7,022 7,170 7,230
  • water from municipal supply (for supplies to third parties)
30 34 39
  • waste water from other waste water discharge systems
7,225 8,944 5,519
Total 224,903 232,118 240,876
Measurement of total and per unit water withdrawal, including and excluding mining and pit waters
Item 2023 2024 2025
Total water withdrawal, including mining and pit waters, ‘000 m3 224,903 232,117 240,876
Total water withdrawal, excluding mining and pit waters, ‘000 m3 119,878 126,708 117,758
Per unit water withdrawal from surface sources, excluding mining and pit watersThe Group specific disclosure was calculated as the ratio of total water withdrawn, excluding mining and pit waters, to the total output of products and semi-finished products., m3 per tonne 3.22 3.25 2.95
Total water discharge by source, '000 m3 GRI 303‑4, PSCB 4
Item Total
2023 2024 2025
Water discharge into surface water bodies
Total water discharge into surface water bodies, including: 175,618 176,525 188,022
  • mining and pit waters
105,024 105,409 123,118
  • drainage water
2,742 2,337 2,289
  • waste water from other waste water discharge systems
6,872 8,649 5,214
Supplies to third parties
Total water supplies to third parties: 4,019 3,476 3,330
  • waste water to the public water discharge system (after use)
3,109 2,748 2,526
  • waste water to the public water discharge system (unused)
353 295 305
  • water supplies to third parties from surface sources
527 399 460
  • water supplies to third parties from municipal sources
30 34 39
Total 179,637 180,001 191,352
Measurement of total and per unit waste water discharge, including and excluding mining and pit waters
Item 2023 2024 2025
Total water discharge into surface water bodies, including mining and pit waters, ‘000 m3 175,618 176,525 188,022
Total water discharge into surface water bodies, excluding mining and pit waters, ‘000 m3 70,594 71,116 64,905
Per unit water discharge into surface water bodies, excluding mining and pit waters, m3 per tonne 1.90 1.83 1.63
Treated effluents (reused in the production cycle) PCSB 3
Item 2023 2024 2025
Total, mln m3 227.9 2350 241.8
Share of reused water, % 830 81.6 83
Water consumption, '000 m3 GRI 303‑5
Item Total
2023 2024 2025
Total water withdrawal (all sources) 224,903 232,117 240,876
Total water discharge (all sources) 179,637 180,001 191,352
Water consumption 45,266 52,116 49,524

The decline in water consumption is driven by higher production volumes, including increased ore mining and processing, and higher output of concentrates and mineral fertilizers.

Water discharge, mln m3 GRI 303‑4
Item 2023 2024 2025
Waste water discharge into surface water bodies
Kirovsk branch 162.4 162.6 173.7
Balakovo branch – – ‑
Volkhov branch – – ‑
Cherepovets site (Apatit) 13.2 13.9 14.3
Total 175.6 176.5 188
Discharged without treatment (% of total water discharge)
Kirovsk branch 0 0 0
Balakovo branch 0 0 0
Volkhov branch 0 0 0
Cherepovets site (Apatit) 0 0 0
Total 0 0 0
Waste water discharge
Item Receiving water body
Kirovsk branch
Discharge 1 Discharge from the tailing dump at ANBP‑3 Zhemchuzhnaya River
Discharge 2 Discharge from the tailing dump at ANBP‑2 Belaya River
Discharge 3 Rainwater at ANBP‑2 Belaya River
Discharge 4 Mining waters of the combined Kirovsky, Central and Rasvumchorrsky mines Lake Bolshoi Vudyavr
Discharge 5 Mining waters of the Koashva and Njorkpahk open pits Lake Kitchepahk
Discharges 6, 9 Waters of water‑lowering wells of the Vostochny mine Vuonnemyok River
Cherepovets site (Apatit)
Effluents from the phosphate facility Rybinsk Reservoir
Effluents from the nitrogen facility Rybinsk Reservoir

Our targets

The Company’s primary biodiversity objective is to conduct current and future activities in compliance with legal requirements and other commitments. In conducting our operations, we seek to conserve biodiversity and minimise potential disruptions to natural ecosystems across the Company’s footprint.

Biodiversity

2025 highlights

The Company updated its Environmental Policy, incorporating the key principles of the Kunming‑Montreal Framework and formalising its biodiversity conservation commitments.

In 2025, the Company to release
233,158 juvenile fish.
In 2025,
2,318
saplings of diverse tree and shrub species (including spruce, linden, apple, cherry, and ninebark) were planted across the Company’s operational regions.

PhosAgro’s Environmental Policy sets forth the Company’s obligations to preserve biodiversity, natural landscapes and habitats across its footprint and prevent its projects from causing any harm to the same.

Strategy and management approach GRI 101‑1The indicators are partially disclosed.

PhosAgro’s strategy for managing the conservation of biodiversity, natural landscapes, and ecosystems in its regions of operation is anchored in the provisions of the Company’s Environmental Policy and is guided by legal requirements and internal documents of the environmental management system.

In 2025, the Environmental Policy was revised: the updated version incorporates the key principles of the Kunming‑Montreal Framework and formalises the Company's biodiversity conservation commitments.

For a number of years, we have been working to preserve biodiversity and replenish biological resources. Since 2020, the Company has been developing comprehensive biodiversity protection programmes in partnership with research institutions. The effort is aimed at assessing and restoring environmental conditions across the Company’s footprint and establishing its priorities in protecting biodiversity based on indicator species monitoring.

Key initiatives in 2025

GRI 101‑2

A comprehensive environmental survey was conducted within the sanitary protection zone of Apatit’s nitrogen facility as part of the biodiversity conservation programme development

Compensatory afforestation was conducted on a 2.4 ha site in the Volkhov Forestry District (Leningrad region), where more than 1,460 Norway spruce saplings were planted.

The Company planted samplings of tree and shrub species.

The Company released young fish into water bodies across its regions of operation

Surveys conducted at the Volkhov branch, Kirovsk branch facilities, and the Cherepovets production site revealed no significant adverse changes in biodiversity within the Company’s operational zones.

Comprehensive biodiversity protection programmes

GRI 101‑2, GRI 101‑4 The indicators are partially disclosed.

Comprehensive biodiversity protection programmes were developed for the Volkhov branch, three of the Kirovsk branch’s facilities and the Cherepovets production site. Each programme includes a biodiversity monitoring plan covering descriptions of survey territories, the character and nature of operational impacts, information on indicator species, and parameters for assessing the effectiveness of biodiversity impact management measures and indicator species status.

Ecosystems in these areas often exhibited higher species diversity compared to baseline zones, likely due to restricted human access preserving ecosystem integrity.

Area of disturbed and reclaimed land, ha
Item 2023 2024 2025
Disturbed land 184.49 306.30 138.85
Reclaimed land 0 0 0

Key aspects influencing biodiversity include emissions of pollutants, water withdrawal and waste water discharge, and waste disposal.

Waste disposal is managed within pre‑approved designated areas at the Company’s facilities, with no involvement of additional territories. Increasing the share of waste diverted for recycling reduces pressure on these disposal sites and extends their operational lifespan.

Land disturbance from mining, waste disposal facility construction, and other construction work represents a further dimension of biodiversity impact. Mineral extraction is one of the Company’s core activities. The expansion of open‑pit and underground mining operations within permitted licence areas drives production growth and ensures stable product supply. Mining activities are conducted safely and with maximum efficiency. Reclamation for these sites is best to be implemented following resource depletion. The Company’s mining assets currently have operational lifespans extending beyond 2030.

In 2025, environmental surveys were conducted within the sanitary protection zone of Apatit’s nitrogen facility as part of the biodiversity conservation programme development, involving researchers from Cherepovets State University. The aim was to obtain information about the baseline status of the environment in the area.

A biodiversity conservation programme was developed for Apatit’s nitrogen facility.

Environmental surveys conducted involved researchers from Cherepovets State University.

At the Volkhov branch, research was carried out under the Biota Environmental Monitoring Programme

The surveys recorded 231 species of higher plants, 85 species of terrestrial vertebrates, and 43 families of invertebrates, all found to be in satisfactory condition, with no special restoration or conservation measures required.

In 2025, we held research at the Volkhov branch as part of the programme for environmental monitoring of biota (flora and fauna) within the sanitary protection zone. The study revealed that the structure of animal species across the reviewed biotopes is typical for the region in question. 62 bird species from 12 orders were recorded across both the facility’s footprint and adjacent areas, and phytocoenosis composition and structure were monitored.

Metrics and highlights

Investment in biodiversity protection programmes, RUB mln
‘23 ‘24‘2516.724.721.8
Juvenile fish and pike larvae released into water bodies across the Company’s geographies
Water body 2023 2024 2025
Volgograd Reservoir, Saratov region 35,838 60,838 60,838
Umba River, Murmansk region – 21,000 –
Rybinsk Reservoir, Vologda and Yaroslavl regions 11,142 45,559 91,498
Saratov Reservoir, Saratov region 53,151 45,031 45,031
Lake Ladoga, Leningrad region 1,539 1,390 1,816
Imandra Reservoir 15,520 29,483 725
Onega River 6,725 770 ‑
Mologa River ‑ ‑ 33,250
Total 123,915 204,071 233,158
Tree and shrub samplings planted
Site 2023 2024 2025
Cherepovets 30 43 857
Kirovsk branch 0 68 0
Balakovo branch 0 0 0
Volkhov branch 1,461 1,461 1,461
Total 1,491 1,572 2,318
Tree and shrub samplings planted