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Sustainability Corporate responsibility continued Key stakeholders Our environmental management systems apply to all of our production and logistics operations, therefore we engage with many different stakeholders. Regional administrations • Co-operation agreements signed with regional government cover environmental and social responsibility. Customers • Our sales and agricultural teams advise our retail and wholesale customers on safe and appropriate use of our fertilizer and chemical products. All of our products carry the relevant safety and usage information as guided by international laws and best practice. Governmental authorities • Our production facilities are regulated and monitored by more than 20 government agencies in Russia, Kazakhstan and EU member countries (Belgium, Lithuania, etc). We work closely with these agencies to improve our compliance with statutory requirements. Shareholders • Shareholders are updated on our environmental management indicators, chiefly investment, energy use, atmospheric emissions, fresh water use and effluent discharge. Suppliers/contractors • We expect our suppliers to demonstrate best practice in relation to their own environmental management. We also ensure that all equipment supplied to EuroChem carries appropriate safety and usage permits. Our contractors are also instructed in and expected to comply with the requirements of our management systems. Trade unions • Collective bargaining agreements are in place at all of our operating companies, including commitments to provide employees with necessary guidance and equipment enabling them to comply with environmental management targets. Employees • All employees are trained and certified according to their environmental responsibilities and specific management routines. Local communities • Our community liaison team organizes regular site visits for local communities to view environmental management processes. The data from our air quality monitoring stations are also made available via government agencies and local media. Targets and objectives Our strategic objective is to continually reduce our environmental footprint. In relation to our key indicators we have the following objectives: • Reduce atmospheric emissions and waste water year-on-year • Reduce volumes of solid waste and increase recycling year-on-year • Continuously improve environmental management systems and compliance In 2015 we focused on environmental impact assessments (EIA) and actions plans for major investment projects. These included the Northwest ammonia project in Kingisepp and the Usolskiy potash project, both of which required a detailed social and environmental impact assessment in order to meet the requirements of lenders, in accordance with the Equator Principles. Promoting active lifestyles For many years our team at Phosphorit has been working closely with local and regional authorities on community development projects. A key development in 2015 was the opening of the ‘Olymp Ice Arena’. Partly funded by EuroChem, the construction of the arena falls within our strategic focus to promote healthy lifestyles among the communities where we have a presence. The arena is a key part of Kingisepp plans to promote and enable children’s sports and to drive improvements in health and quality of life in the city. As well as the infrastructure, EuroChem promotes and organizes ice hockey tournaments that match players from Kingisepp and the greater Leningrad region with teams from outside Russia. “ EuroChem’s goal is to establish eight new regional youth sport centers and schools. Our program has been acclaimed as the best industry and community collaboration in Russia. We believe that such public-private partnerships offer benefits to local people, business and government authorities.” Igor Schelkunov Head of HR, HSE and Business support 42 EuroChem Annual Report and Accounts 2015
Strategic Report EuroChem Northwest – lowering emissions with the latest technology • Once completed, set to be the most technologically advanced European ammonia plant • Full environmental impact assessment complies with Equator Principles • EIA covered air emissions, waste, resource use, effluent, biodiversity, safety In September 2015, we started building a new state of the art ammonia plant in Kingisepp, Russia. Aptly named Eurochem Northwest on account of its location, the plant is expected to be the most technologically advanced of its kind in Europe. It has a design capacity of 1 million tonnes per annum and the US$1 billion investment will also support the creation of utility and warehouse infrastructure. All of the Engineering, Procurement and Construction (EPC) work is expected to be completed in late 2018 and will be accomplished by subsidiaries of Maire Tecnimont, a leading global engineering contractor. The latest control and process technologies will be deployed, in particular, environmental and safety features. The project has secured financing from a club of banks, which meant the provision of a full Environmental Impact Assessment (EIA), in order to comply with the Equator Principles (EPs). The latter is a risk management framework which enables financial institutions to assess and manage environmental and social risks in projects. Its primary purpose is to provide a minimum standard for due diligence and support decision making. The EIA covers all aspects of the plant’s operations, including air emissions, waste, resource use, effluent, biodiversity and safety. Corporate Governance Financial Statements EuroChem Annual Report and Accounts 2015 43
Page 1 and 2: Committed to growth 2015 ANNUAL REP
Page 3 and 4: At a glance How we measure up A glo
Page 5 and 6: Our sustaining capitals Our interre
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Page 9 and 10: Configured for superior returns Low
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Page 31 and 32: Strategic Report Sales (US$m) 2,322
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As at 31 December 2015, trade recei
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Term deposits at 31 December 2015 a
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Such put option was exercised in re
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27 Distribution costs Distribution
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At 31 December 2015, the Group had
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Financial statements caption Nature
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Acquisition of CJSC ‘Berezniki me
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36 Financial and capital risk manag
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31 December 2014 US$ EUR RUB Other
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Gearing ratio The gearing ratio is
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Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2
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Forward-looking statements This ann
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