Staying Focused on Sustainable Development
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Staying focused on sustainable development Sustainability Report 2016 Introduction Staying focused on sustainable development EuroChem is one of the world’s leading We have a 15 year record of consistent Our Clean Water Program is also improving producers of mineral fertilizers. We have improvements in environmental performance. the quality of waste water management achieved this position through sound financial This is exemplified by our investment in at all production sites in Russia. These and and economic governance, industry-leading a state-of-the-art ammonia plant at our other investments in environmental controls employee relations and safety culture, Phosphorit site in Russia. The ammonia plant make us one of the leading adopters of BAT community investment and sophisticated construction project was started in 2015 within the agrochemicals sector in Russia/CIS. environmental management. and is currently expected to be completed in Q3 2018. This plant will use Best Available Technologies (BAT) to significantly reduce energy consumption and waste water. Contents Introduction Environmental responsibility 1 About our business 2 Sustainability timeline Read more page 30 4 Staying focused on implementing best available technologies 6 Staying focused on achieving zero waste water 8 Staying focused on promoting safety culture Health and safety 10 Staying focused on responsible product stewardship Read more page 38 12 Staying focused on improving the social environment 14 Challenges of food security 16 Sustainability strategy 18 Governance and ethics Social responsibility 22 Stakeholder engagement Read more Additional information page 40 54 GRI disclosure tables 56 Key facts 57 Awards 58 Corporate information Economic sustainability Read more page 50 B EuroChem Sustainability Report 2016 About our business Introduction At at glance Environmental responsibility Environmental EuroChem, headquartered in Zug, Switzerland, The Group is vertically integrated, with Production at Usolskiy is set to commence is a leading global agrochemical company activities spanning mining, hydrocarbon from late 2017, while VolgaKaliy is expected producing primarily nitrogen and phosphate extraction, fertilizer production, logistics to start in 2018. The Group operates fertilizers, as well as certain organic and distribution. EuroChem is currently production facilities in Belgium, China, synthesis products and iron ore, more developing two sizeable, greenfield potash Kazakhstan, Lithuania, and Russia and than 100 products in total. deposits at VolgaKaliy and Usolskiy in Russia. employs more than 25,000 people globally. As one of the fastest growing fertilizer majors, we aim to become a top five producer by nutrient capacity. 2016 highlights H&S Sales EBITDA Customers globally (US$) (US$) 4.38bn 1.1b n >6,000 Social responsibility EBITDA margin Lost time injury frequency rate Fertilizer sales volume (LTIFR; per 1m man-hours) 25% 0.97 13.6 mmt sustainability Economic Divisions Mining Oil and Gas Fertilizers We have secured access to a low-cost, Natural gas is the primary raw material We manufacture a broad range of quality high-quality resource base, which used to produce ammonia, the main nitrogen, phosphate and complex includes an estimated 10 billion tonnes component of nitrogen-based fertilizers. fertilizers. From basic to high-end, our of potash reserves and resources in two Our own oil and gas operations help products provide the right solution for key Russian deposits; magnetite-apatite reduce natural gas costs, boost our every application. Configured to retain ore in the Kola Peninsula, and phosphate ammonia gas efficiency and strengthen their nutrient properties longer, our line rock in southern Kazakhstan. our cost advantages. of specialty fertilizers ensures an optimal supply of nutrients to plants, especially information Additional during critical phases of growth. Throughout our production chain, our production processes also yield Logistics Sales a wide range of industrial, mining Our sophisticated and flexible logistics Our efficient global distribution and feedstock products, which add infrastructure supports our business network enables us to serve our considerable depth and value to model and ultimately ensures that our extensive customer base of more our product portfolio. products are delivered to customers than 6,000 clients in over 100 countries. in the most efficient way. It comprises It also plays a key role in advising trucks, storage and port facilities, customers on the selection and use rail rolling stock, chartered river barges of fertilizers to optimize their crop yields. and warehouses. EuroChem Sustainability Report 2016 1 Sustainability timeline Continuous improvement of our environmental management system We aim to minimize our impact on the environment through the operation of effective management systems and processes that are aligned with leading international standards. • Embracing sustainable development • 1st generation emissions reduction program • GRI reporting • Understanding environmental footprint and responsibility 2004–2007 2001–2003 2 EuroChem Sustainability Report 2016 Introduction Environmental responsibility Environmental • Leading in Best Available Technologies (BAT) • Clean Water Program (3rd generation emissions reduction program) • Equator Principles financing for major projects (potash, Baltic ammonia) H&S • Building corporate citizenship • Responsible care • ISO 14001 (along with ISO 9001 • Environmentally friendly and OHSAS 18001) crop enhancing solutions • Product stewardship • Outreach to international best practices Social responsibility • Global reach and internationalization • 2nd generation emissions reduction program • REACH compliance 2013 –2016 2008–2012 sustainability Economic Additional information Additional EuroChem Sustainability Report 2016 3 Spotlight Staying focused... ...on implementing the best available technologies 4 EuroChem Sustainability Report 2016 Introduction Planned investment in the Kingisepp ammonia project (US$) 1bn responsibility Environmental H&S Social responsibility CASE STUDY Employing the newest sustainability Economic technology We are applying Best Available and each year requires more BAT is also widely deployed at our Technologies (BAT) across all than 100,000 tonnes of ammonia new potash projects, which will see three segments of our business. feedstock. This material is brought in production from two key deposits from other EuroChem sites, however begin in 2017/18. The state-of-the-art Throughout 2016 we continued the US$1 billion investment in the mine design, leading edge water and to deploy BAT across our nitrogen, new plant (due to start operating solid waste management systems, phosphate and potash segments. in 2018), will make Phosphorit self low energy costs and proximity We are now a leading exponent sufficient. It is the first of five such to our own ports should generate of BAT within the agrochemicals plants planned by the Group. The the lowest ‘delivered to’ costs and information Additional sector in Russia/CIS. BAT applied at the plant includes highest environmental performance the KBR Purifier process, renowned in the industry. The ammonia plant that we are for its high levels of reliability and building at our Phosphorit site sets a flexibility, with world class energy new standard in BAT for our industry. efficiency. The plant will also operate Construction began in August 2015 a state-of-the-art closed loop on this state-of-the-art, 1 million water use and treatment system, tonne ammonia plant in Kingisepp, significantly reducing the volume near the Baltic Sea. The plant of treated waste water entering produces phosphate-based the Luga River by up to 75%. fertilizers and associated products There will also be a significantly lower demand for fresh water. EuroChem Sustainability Report 2016 5 Spotlight Staying focused... ...on achieving zero waste water 6 EuroChem Sustainability Report 2016 Introduction Fresh water consumption Effluent discharge reduced by reduced by (m3/year) (m3/year) 11m 12.5m responsibility Environmental H&S Social responsibility Economic sustainability Economic CASE STUDY Clean Water Program Our Clean Water Program Our aim is to reduce volumes our fresh water consumption in 3 has been recognized as industry of water used in production and production by 11 million m /year. information Additional leading by Russia’s Ministry deploy technologically advanced Volumes of waste water have also of Natural Resources and industrial waste water treatment been reduced by 12.5 million m3/year. Environmental Protection. and management systems. We are also investing in the creation In 2016, we received an ‘Evolution The program focuses on the of drinking water supply systems Award’ from the Minister of Natural application of state-of-the-art in local communities, working in Resources and the Environment water conservation and treatment partnership with public authorities in the Russian Federation. This technologies across our production and local government agencies. recognized the program as the base. It has operated since 2013 best application of green technology at our key plants across six regions To date, our total investment in the private sector. in Russia. has been US$34 million. As a consequence, we have reduced EuroChem Sustainability Report 2016 7 Spotlight Staying focused... ...on promoting a culture of safety 8 EuroChem Sustainability Report 2016 Introduction Environmental responsibility Environmental H&S Social