Environmental review
Area, strategic goals and highlights of 2025
Target
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Climate action and reduction of GHG emissions -
2028 gross emissions: -
Scope 1 – 4,175.5 kt of СО 2 ‑eq. -
Scope 2 – 794.7 kt of СО 2 ‑eq.
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2028 per unit emissions: Scope 1 — 109.1 kg of СО 2 ‑eq. per tonne of finished and semi‑finished products
Actual
Target
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Reduction of Scope 2 GHG emissions to 794.7 kt of СО 2 ‑eq. by 2028 through the Energy Efficiency Programme
Actual
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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 .
Target
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Waste reduction 2025: 40 % of hazard class I–IV waste recycled and decontaminated
Actual
Target
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Reduction in pollutant emissions to the atmosphere -
2025: per unit pollutant emissions — 0.800 kg/t of products and semi‑finished products
Actual
Target
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Responsible water use -
2025: per unit waste water discharge into surface water bodies – 1.7 m 3 /t of products and semi‑finished products, excluding mining and pit waters -
2025: per unit water withdrawal – 2.6 m 3 /t of products and semi‑finished products, excluding mining and pit waters
Actual
Target
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Preservation of biodiversity in regions of the Company’s operation at a level securing sustainability
Actual
For the full text of PhosAgro's Environmental Policy, see our website
Stakeholder engagement
For the list of public discussions, please visit our website
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Environmental management system
For the full text of PhosAgro's Environmental Policy, see our website
Environmental management framework
Compliance with statutory and regulatory requirements
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Assessment, analysis, and monitoring
Operational Environmental risks:
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non‑compliance with the existing regulations on environmental impact -
energy efficiency issues
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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.
Our targets
2025 highlights
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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.
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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
Strategy and management approach GRI 3‑3
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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.
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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.
Actions to deliver the Climate Strategy
For more information on our work at the carbon farm, see the Research and Education section
Climate Agenda initiatives in 2025
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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 gri d 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.
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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.
Risks and opportunities GRI 201‑2
A detailed description of climate risks and opportunities, as well as corrective measures taken in 2025 remained unchanged and is presented in the TCFD report on our website
Risks
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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
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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
quarterly
short‑term medium‑term long‑term
Climate scenario analysis
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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.
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Metrics and targets
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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.
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| 625.0 | ||||
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| 46.0 | | | ||
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| 100.000 | 100.000 | 100.000 | ||||
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| | 407,830 | |
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direct GHG emissions (Scope 1) – 4,624.6 kt of CO 2 ‑eq.; -
indirect GHG emissions (Scope 2) – 924.1 kt of CO 2 ‑eq.; -
other indirect GHG emissions (Scope 3) – 12,634.4 ktThe 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 CO 2 ‑eq.
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| 4,711.80 | 835.80 | |||||
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| 118.10 | ||||||
| | 1,072.400 | ||
| | 256.900 | ||
| 371.900 | | 500,0 | |
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Our targets
2025 highlights
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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.
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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
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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.
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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.
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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).
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AI projects
Boiler unit emergency simulator for the heat and power plant
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Realistic boiler operation simulation -
Normal condition process training -
Abnormal and emergency situation training
Digital advisor for optimal 4.0 MPa steam generation load distribution at the nitrogen facility in Cherepovets site
Metrics and highlights
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| 300.00 | 300.00 | 375.00 | ||
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| 104.80 | 84.20 | |||
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Our targets
2025 highlights
Strategy and management approach
GRI 3‑3, 306‑1
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.
Key initiatives in 2025 GRI 306‑2
Promoting phosphogypsum utilisation
Aluminium fluoride production expansion
Metrics and highlights SASB RT‑CH‑150a.1
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| 49.0 | ||
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| 0.400 | |||
| 2.500 |
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Our targets
2025 highlights
Strategy and management approach GRI 3‑3
Key initiatives in 2025
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Metrics and highlights
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| 745.50 | 796.20 | ||
| 214.60 | |||
| 768.00 | |||
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| 351.50 | |||
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| 908.20 | |||
| 927.60 | |||
| 153.40 | |||
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| 859.50 | |||
| 759.40 | |||
| 224.40 | |||
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| 7.60 | |||
| 2.60 | |||
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| 4.00 | |||
| 14.20 | |||
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| 38.10 | |||
| 339.50 | 218.20 | 135.30 | |
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Our targets
2025 highlights
Strategy and management approach GRI 3‑3, 303‑1
Risks and opportunities SASB RT‑CH‑140a.3
Key initiatives in 2025
Metrics and highlights
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Our targets
2025 highlights
Strategy and management approach GRI
101‑1The indicators are partially disclosed.
Key initiatives in 2025
Comprehensive biodiversity protection programmes
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Metrics and highlights