Industrial safety

Our Strategy to 2025 focuses on fostering a safety culture and adhering to the highest occupational health and safety standards. We are implementing a Health and Safety Strategy for 2025–2026, which defines key focus areas and targeted initiatives to reduce the risks associated with various operations of the Group.

PhosAgro Group is consistently improving its safety culture, employee responsibility and awareness, hazard identification procedures and danger prevention measures by putting managers at all levels in charge and studying and applying best health and safety practices. We apply continuous efforts to identify and reduce health and safety threats to PhosAgro Group employees, contractors and visitors to the Company’s sites.

The Company’s relevant goals and objectives, both strategic and day‑to‑day, are based on huge volumes of data derived from internal and external audits, inspections, incident investigations, employee recommendations and feedback.

The health and safety management system also encompasses emergency preparedness.

In December 2024, the Cherepovets site of Apatit successfully reaffirmed certification for compliance with ISO 45001:2018 (Occupational Health and Safety Management System). In 2025, for the fourth time running, the facility won the contest Best Occupational Health and Safety Practices in Branches, Representative Offices and/or Subsidiaries Operating in the Vologda Region on a Permanent Basis in the category for the Best Company in the Vologda region.

Occupational health and safety functions

Occupational health and safety functions play a key role in ensuring safety at our facilities.

Their main objectives are:

• taking steps to ensure compliance with OHS requirements by workers and third parties;
• monitoring workers’ compliance with OHS laws and regulations, the Collective Bargaining Agreement, OHS agreement and other internal regulations;
• preventing workplace injuries, occupational diseases and work‑related illnesses and improving workplace conditions;
• advising workers and contractors on, and raising their awareness about, occupational health and safety;
• studying and promoting best OHS practices.

Apart from applicable laws, these activities are regulated by:

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

OHS interactions and raising awareness

For better OHS communication with employees, we have adopted the Regulations on the OHS Communication System. Pursuant to the Regulations, the OHS communication system is divided into internal and external communications, and provides for a feedback procedure:

• regular OHS meetings at business units and enterprises;
• OHS meetings on production sites, in departments and at facilities;
• union and union committee meetings (for feedback from OHS officers);
• corporate e‑mail;
• corporate periodicals;
• local health and safety committees;
• employee loyalty surveys;
• OHS questionnaires.

Internal communication is achieved through:

• local health and safety committees;
• management meetings and conferences to discuss the health and safety performance of our enterprises;
• meetings with heads of enterprises during leadership visits to production units;
• regular OHS meetings in departments, on production sites and at facilities;
• health and safety bulletin boards, posters and other visuals;
• corporate television (screens), intranet site, e‑mail;
• corporate periodicals;
• education by OHS officers (including one‑on‑one meetings, training, mentoring, supervision, etc.).

Local health and safety committees

Since 2014, health and safety committees have been functioning at the Group’s companies. They are both an integral part of our OHS management system and a form of employee participation in it. In their work, these committees rely on the principles of social partnership. As part of their activities, health and safety committees draft and improve programmes to join efforts of the employer, employees and trade unions in ensuring health and safety.

Committee meetings are chaired by heads of companies and held at least once a month online or at least once every two months offline. At meetings, information exchange and reporting are multilateral, as both health and safety functions and local unit heads report on health and safety progress. All resolutions are documented in minutes of the meetings.

Workers are represented at committee meetings by heads or representatives of local unions.

As part of these workstreams, health and safety committees consider the following topics:

• Golden Rules of OHS;
• OHS leadership;
• OHS motivation;
• effective OHS communications;
• contractors’ safety;
• PPE effectiveness;
• trade union report.

Improving contractor safety practices

Measures to ensure safety of contractors’ employees working at our production and other facilities are an integral component of our OHS strategy. They include the selection of contractors based on a health and safety qualification assessment, briefings, enforcing their application of our safety tools, and conducting relevant OHS compliance audits.

Since 2024, the Group has had the OHS Competency module powered by the SCOUT platform as a way to digitise and automate OHS skill assessments and enhance their transparency.

For contractors, we conduct training and practical knowledge assessments at the Company's training grounds to make sure contractor employees have the required skills. The Company also develops and implements joint schedules for control and preventive actions in collaboration with the contractor's OHS functions, with the relevant follow‑up. In addition, there are monthly meetings with all contractors where urgent OHS matters are discussed.

In 2025, we settled the process of placing the legally relevant electronic Company documents on PhosAgro’s official website (www.phosagro.ru) with a view to providing unhindered access of contractor representatives to key documents, including OHS‑related ones.

ESG assessment is a key factor in contractor selection. For more information, see the Supply Chain section

Internal and external industrial safety audits

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

In December 2025, the Department for Supervisory Activities in Civil Defence and Protection of Population and Territories from Emergencies of the Division for Supervisory and Preventive Activities of the Main Division of the EMERCOM of Russia for the Vologda region made a preventive visit to the Cherepovets facility of Apatit. No remarks were made or prescriptions issued following the visit.

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

After external and internal audits, the Company issues orders and instructions outlining remedial action plans and establishing the deadlines and responsible persons. Identified breaches are remedied within the agreed time limits.

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

The following strategic risks affect our OHS objectives:

OHS‑specific risks:

• Occupational risks of the Group’s business units, including occupational disease risks
• Safety culture risks, including OHS communications and safety incentives
• Risks of OHS‑related regulatory changes

We are constantly working to assess and mitigate risks. We perform risk assessment and classify them by severity and frequency using our dedicated proprietary methodology. Following hazard identification and risk assessment, the unit’s OHS officer compiles a List of Occupational Risks, which is then used as a basis for the Company’s List of Material Occupational Risks. Risk assessment takes into account the following aspects:

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

The Company has instituted a robust protocol that facilitates swift communication from eyewitnesses to the appropriate functions and managerial personnel, including PhosAgro’s CEO, by means of corporate communication tools such as text message alerts and telephone calls.

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

For better OHS efficiency, and to automate and streamline the relevant processes, we have introduced and now use the Safety and Instructions (Shift Assignments) management systems. Both systems include a Risk Management module. The module enables internal check list‑based OHS assessment at all units of Apatit. The module’s new underlying principles help enhance production H&S control, while its new functions facilitate operation, monitoring and analysis.

The Company has a formal procedure for addressing workplace hazards. When a hazard is identified, employees are required to suspend work and report it to their supervisors directly or via the Public Scrutiny mobile app. The supervisor uses the report to assess the risk and develop a remedial action plan.

To harmonise the process of OHS risk mitigant development and management, in 2026 we will implement the Safety Framework project embracing measures using risk data sheets and the violation assessment function (the work algorithm combines using risk data sheets and violation assessment; analysis of repeatable violations based on risk data sheet barriers). The initiative is aimed at improving the effectiveness of measures to remedy violations identified, in order to minimise the likelihood of repeatable violations (based on statistics of violations linked to risk data sheets, it identifies ineffective measures (barriers) and suggests reviewing risk data sheets for complementing them with additional measures).

Emergency response procedures

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

• accident management action plans for all hazardous industrial facilities as defined by the Russian laws;
• training sessions and drills held in 2025:
  • seven joint team‑headquarters emergency training exercises, with Agrokhimbezopasnost, Russian Ministry of Defence, National Guard and EMERCOM taking part;
  • 75 personnel sheltering training sessions;
  • six headquarters training exercises with civil defence and emergency situations management bodies;
  • 266 fire training sessions;
  • 160 evacuation drills;
  • six joint fire drills with EMERCOM.

Targeted programme for upgrading Apatit’s fire safety systems in 2025–2029

The increase in OHS expenses is primarily related to greater investments in engaging specialised consulting entities, examination of industrial safety, improving the operational reliability of buildings, and purchase of personal protective equipment.

We were deeply saddened by the fatality involving our employee which occurred at the production site of Apatit’s Balakovo branch in February 2025. The fatality was due to ammonia fume exposure. There was an investigation carried out. We have thoroughly analysed the circumstances of the fatality and communicated conclusions and recommendations on preventive measures, including a range of technical and organisational steps, to the management and employees of the facility. This tragic incident highlights the importance of consistent efforts to improve occupational safety.

In the meantime, a considerable decrease in the number of major accidents (two cases in 2025 versus eight in 2024) and the overall workplace injury rate in 2025 witnesses that the efforts invested in safety yield positive results.

There was a total of 29 injuries recorded in 2025 compared to 32 in 2024. Of these injuries, 17 occurred to employees of contractors, subsidiaries and affiliates (with the same number in 2024), and 12 to PhosAgro’s own staff (compared to 15 in 2024).

Most of the workplace injuries in 2025 were related to falls while moving, striking against objects, and chemical and thermal burns.

The main causes of work‑related injuries in 2025 were poor work organisation, lack of control over safety of workplaces and routes of movement, violations of labour and industrial discipline, and underestimation of risks by the injured persons.

The Company firmly believes that our primary challenge lies in minimising the “human factor” – dangerous employee actions Include aspects such as inadequate control, work permit violations, poor coordination, etc. that account for over 50% of all injuries . Rolling out the existing methods and tools in the field of occupational safety among personnel of contractors, as well as subsidiaries, affiliates and managed companies, will further reduce the level of occupational injuries among this category of personnel.

The Company plans to continue implementing its safety improvement strategy by leveraging advanced safety tools and modern comprehensive solutions and approaches that have already proven effective, including:

• senior management’s leadership and commitment to health and safety;
• allocating sufficient funding to ensure occupational, fire safety;
• knowing and applying international and domestic best practices;
• improving the internal incident investigation process to identify and eliminate root causes;
• implementing project solutions and targeted programmes to improve workplace safety;
• providing employees with modern and effective personal and collective protective equipment;
• Involving blue‑collar workers (OHS officers) in directly managing health and safety in their business units;
• reviewing the structure and functions of occupational health, industrial safety and fire safety services with a focus on enhancing control and preventive work;
• selecting and appointing highly qualified leaders to key positions in occupational health, industrial safety and fire safety services;
• developing and implementing a system of incentives motivating all categories of employees for safe working practices;
• developing and updating e‑courses to educate employees in corporate health and safety requirements;
• integrating corporate health and safety requirements into the work of contractors;
• digitalising data management processes to support high‑quality analysis and effective management decision‑making.

From 2023 to 2025, PhosAgro Group was able to reduce the total number of traffic accidents (by 50%), from eight accidents in 2023 to four in 2025.

The initiatives implemented by the OHS Department and transport departments to mitigate traffic accident risks includes drafting internal regulations to ensure safe operation of motor vehicles, self‑propelled machines, and rail transport, performing targeted and full‑scope inspections of vehicles used by our contractors, subsidiaries, enhancing the competencies and skills of PhosAgro employees responsible for operating all types of transport, and introducing various technical solutions to mitigate risks of traffic accidents.

In the Kirovsk branch, quarry dump trucks are being equipped with an electronic collision prevention system. At the Cherepovets site, pilot tests have been successfully completed on shunting diesel locomotives using an innovative onboard computer vision system based on artificial intelligence (introduced on TM18DM locomotives). Mobile road safety teams operate effectively at all Company sites, monitoring compliance with both federal and local road safety requirements among all road users. There is regular training in defensive driving for them, as well as professional skill competitions.

In the reporting year, 33 employees of Apatit were diagnosed with occupational diseases (compared to 46 in 2024 and 58 in 2023), which represents about 0.1% of the total average headcount.

In 2025, one employee was diagnosed with an occupational disease (compared to 12 in 2024 and 2 in 2023). This employee is a representative of a subsidiary, an affiliate or a managed company and performs their duties at a branch of Apatit.

The main causes of these occupational diseases were lasting exposure to general vibration beyond maximum permissible levels, physical exertion, and functional overstrain of individual organs and systems in respective locations.

Healthcare infrastructure

100% of PhosAgro Group’s industrial facilities have on‑site medical facilities that feature modern equipment for preventive check‑ups (including ECG, spirometry, arterial blood pressure measurements, and vaccinations).

Disease prevention and preventive programmes

The Company implements an employee counselling programme, which includes:

• counselling hotlines;
• roundtable discussions and support teams for employees experiencing excessive stress (i.e. in case of technology or schedule changes);
• stress management training (212 training sessions run so far).

The Company has a multi‑level prevention system in place

As part of OHS training and knowledge assessment, employees completed the following types of courses in 2025:

PhosAgro makes efforts to improve OHS competencies and knowledge of its staff. Employees of PhosAgro Group undergo online and in‑person training. Our e‑courses are easy to understand since they are made in the form of illustrated slides with key highlights on them. In particular, we offer an e‑course on corporate OHS standards. It is followed by tests to check the knowledge and understanding of the standards and requirements.

Whenever required, the courses developed earlier are updated following changes in the law and the Company’s internal regulations. In 2025, we developed and updated the following e‑courses:

• Golden Rules of OHS;
• Regulations on Risk Hunting;
• Risk Visualisation Tools Procedure.

Employees undergo OHS training, including that in basic fire safety and electrical safety, industrial safety pre‑certification sessions, and drills in the Vysota training centre.

All our employees, from managers to blue‑collar staff, receive occupational health and safety briefing and training as required by the Russian laws. Furthermore, employees of the Company and contractors are offered a number of additional courses.

We use animated videos to improve OHS training and remind employees about workplace safety.

All our employees (executives together with blue‑ and white‑collar staff) take OHS training as required by the national laws, as well as additional training. The minimum required training is provided to each and everyone, including all visitors and representatives of contractors as part of the introductory briefing.

In 2025, the Company started work on the Leadership in Safety project with the following goals:

to shift from an inspection to a partnership approach in safety management

to enable managers to show commitment to safety by personal example

to change employees’ ideas through engagement of managers in occupational safety matters

As part of the project, in 2025 the model for leadership in safety was updated, with assessment check lists and testing questionnaires developed, assessments and surveys run in groups of employees, individual development plans drafted, etc.

In 2026, we plan to continue with Leadership in Safety, including assessment of managers’ leadership qualities dynamics and changes in employees’ ideas.

Raising awareness about OHS

To keep our employees well‑informed about our safety measures, PhosAgro constantly develops and updates OHS check lists, presentations and other visual materials that emphasise the crucial information employees must rely on in various situations, including working on particular assignments, in order to stay safe.

To raise awareness about occupational health and safety, each month the Company issues check lists on the month’s topic.

In 2025, the Company was actively carrying out briefings for each shift – daily OHS trainings for employees, revising industrial dangers and hazards, OHS requirements (as set out in the Company’s internal regulations, OHS guidelines, technical and operational documents), and safe work practices.

The objectives of such briefings are as follows:

Changes to labour safety promotion programmes

Senior executives (CEOs of the Company and its business units, as well as their direct subordinates) recognise the importance of OHS and are committed to safety and ready to take necessary managerial decisions. Since 2014, PhosAgro has had a system of KPIs that uses uniform standards linking the size of management remuneration to the efficiency of OHS measures, among other things. In particular, the Company established the following KPIs with regard to OHS:

• LTIFR covering all staff categories, including contractors;
• zero fatalities among all employee categories, including contractors;
• timely implementation of action items from improvement notices issued by supervisory authorities.
• industrial safety indicator;
• zero accidents.

The Company has developed OHS promotion programmes to maintain each PhosAgro employee’s engagement in ensuring their own safety and the safety of those around them, as well as to encourage the employees to take initiative and implement OHS improvements.

The incentive system includes both individual and collective programmes.

Individual incentive programmes

Collective incentive programmes