Enabling Our Future
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ЕuroChem Sustainability Report 2011 Sustainability Enabling our future Sustainability Report 2011 EuroChem Mineral and Chemical Company, OJSC 53/6 Dubininskaya St., Moscow 115054 Tel: +7 (495) 545-39-69 Fax: +7 (495) 795-25-32 [email protected] Enabling our future EuroChem Sustainability10 EuroChemyears Responsibility EuroChem is a key player in promoting global sustainable development. Our well-managed, environmentally aware business contributes to increasing crop yields and providing food for people in over 90 countries. See our online Sustainability Report at www.eurochem.ru If you’ve finished reading this Report and no longer wish to retain it, please pass it on to other interested readers, return it to EuroChem or dispose of it in your recycled paper waste. Thank you! This Report is available on www.eurochem.ru. Designed and produced by The College www.the-college.com Our company Our Our company Contents This section contains information Our company on our business structure, operations 4 Introduction and strategy, as well as management 6 EuroChem at a glance Economic sustainability systems, communications with stakeholders, sustainable development 8 Our operations achievements and plans for the future. 10 Our facilities Pages 2-27 12 Our products 14 Our values 16 Compliance with international standards Economic sustainability 18 Our sustainability strategy This section looks at our operations, 22 Corporate governance system markets and fi nancial achievements: 24 How we manage risk how we maintain a sustainable business 26 Maintaining dialogue with stakeholders built on a strong economic strategy. Pages 28-43 Economic sustainability Environmental responsibility 30 Corporate developments in 2011 Environmental responsibility 34 Sustainable business growth This section looks at EuroChem’s drive 36 Sustainable development initiatives to minimise its environmental impact 38 Sustainability of the investment programme and the successes achieved. We explain 40 Case study 1. Environmentally safe melamine production our environmental management 42 Case study 2. EuroChem’s potash projects systems and describe our projects to reduce emissions, upgrade facilities, monitor the environment, re-cultivate Environmental responsibility brownfi eld land, set up closed-loop 46 Our environmental policy water supply systems and mitigate environmental risks. 48 EuroChem’s environmental programme Pages 44-57 50 Key environmental projects at EuroChem’s facilities in 2011 52 Environmental performance in 2011 Social responsibility 54 Case study 3. Environmental monitoring stations programme Social responsibility This section details our efforts Social responsibility to attract and retain the best personnel; 60 Community responsibility to increase prosperity – in partnership with local communities and 62 Our five priorities authorities – in the regions where we 64 Our employees operate; our social investments; and 70 Developing human capital our work on the implementation 72 Case study 4. Training workshops for regional teachers of public-private partnerships to develop social infrastructure. 74 Case study 5. Developing junior ice sports across Russia Pages 58-79 78 Health and safety Results and attachments Results and appendices Results and appendices 82 Company awards in 2011 The appendices document our 83 Independent assurance of social reporting independent assurance processes, 87 Standard GRI G3.1 reporting indicators describe our performance indicators (GRI) and provide a glossary of 103 Glossary key terms. 104 Previous corporate social responsibility reports Pages 80-104 Sustainability Report 2011 EuroChem 1 Enabling our future Our company EuroChem’s goal is to become one of the world’s top fi ve fertilizer producers as measured by output and profi tability. This report summarises our fi rst ten years of activity, during which time our work has benefi ted the Russian and global agricultural sectors, the global agrochemical industry, and the local communities and towns where we operate. We contribute to increasing world agricultural productivity so that the world’s growing population can be supplied with suffi cient food. The Global Economic Forum has named food security as one of the top three global challenges, alongside fi nancial and economic crises and shortages of drinking water. EuroChem is helping to meet this challenge: our fertilizers enhance agricultural crop yields in over 90 countries across the globe. See pages 6-9, 12 > 2 EuroChem Sustainability Report 2011 Our company Our Information on our business structure, operations and strategy, as well as management systems, communications with stakeholders, sustainable development achievements and plans for the future 4 Introduction 6 EuroChem at a glance 8 Our operations 10 Our facilities 12 Our products 14 Our values 16 Compliance with international standards 18 Our sustainability strategy 22 Corporate governance system 24 How we manage risk 26 Maintaining dialogue with stakeholders Key facts RUB 131.3bn sales in 2011 à We export to >90 countries à 7 production facilities à 2 potash projects à 1 natural gas production facility à 3 sea port terminals à 25 agricultural centres i Stanislav Khromchenko starting the melamine cooling system, a product never manufactured in Russia until now. (Nevinnomysskiy Azot, shop fl oor 2.) Sustainability Report 2011 EuroChem 3 Our company Introduction This report looks at EuroChem’s integrated approach to sustainable development, which fuses economic performance, environmental accountability and social responsibility. In 2011, we focused on the key sustainability drivers for our business, our contribution to global agricultural development, and fostering sustainable local communities both in Russia and elsewhere in Europe. Sustainable development is integral to our business goal of becoming a top-fi ve fertilizer producer. On a global scale, our business strategy drives yield and agriculture growth to provide food to people in over 90 countries. To enable us to manufacture across Europe and sell globally, we comply with international standards in sustainable development, social responsibility, and corporate reporting. In line with the sustainability strategy overseen by the Board of Directors, EuroChem’s investments go beyond business development. Over the last ten years, we have invested over RUB 3bn in social capital projects for our staff and for local communities, as well as in upgrading local social infrastructure. Our aim is to be a global socially responsible company. Sustainability and social responsibility programmes underpin this commitment and are critical to every project that we undertake. Andrey Melnichenko Chairman of the Board of Directors 4 EuroChem Sustainability Report 2011 Our company Our Sustainable systems à The sustainability of EuroChem’s business à We meet our customers’ expectations by à Our HR management strategy relies on effective and the stability of its fertilizer supplies are consistently delivering both the quality and the staff recruitment, training and motivation to vital to sustainable agriculture and to the food volume of product they specify, exactly when it is ensure we have the capacity to undertake our supply of the people of Russia and over required. Our advanced agrochemical products investment projects. Over half our employees 90 countries globally. are available through a network of 25 agrocentres, have their training refreshed annually. In 2011, à We are constantly enhancing our production which give our customers not just the fertilizers we channelled over RUB 300m into social sustainability by investing in new technology they need, but also the added value of integrated programmes for our staff. and high-value-added products – for example yield-boosting solutions. à EuroChem maintains close relations with our potash projects and natural gas production à We promote environmental responsibility and government agencies and local authorities. which enhance vertical integration, and occupational safety through our corporate We are involved in numerous public-private melamine. Over the last three years, we have environmental strategy, our management partnership initiatives, and also have an invested approximately RUB 20bn in production systems, and the adoption of top international impeccable compliance record. innovations. The launch of our potash production standards to reduce our environmental impact. à Our business helps keep local communities will make EuroChem Russia’s largest fertilizer Over the last ten years, we have invested over sustainable and fosters social stability in the producer and a global top four full-range producer RUB 5.6bn in environmental and health and towns where we operate. On top of the taxes we of mineral fertilizers. Our target is to gain a 10% safety management. pay to local and federal budgets, we provide share of the global potash market by 2018. à Our fi nancial stability is based on maintaining social support in line with our corporate social reasonable leverage, and our net debt to EBITDA priorities, and develop social infrastructure. stood at 1.35х in 2011. Over our ten years of operation, we have invested over RUB 3bn in social policies. Amid the current social and economic turmoil, our sector still evidences strong fundamentals, which are testament to the essential nature of our products. Sustainable development is integral to all our strategic, managerial, and investment initiatives, including our potash projects in Kotelnikovo, Usolie, and at our melamine production plant