About this report

It is our pleasure to welcome you to the 2023 Integrated Annual Report (the «Report») of PJSC PhosAgro (PhosAgro). PhosAgro is a vertically integrated Russian company and one of the world’s leading producers of phosphate-based fertilizers.

The Company maintains an annual reporting cycle, with the previous report released on 29 April 2023. The Report highlights how we integrate ESG principles into everything we do. The reporting period for the Company’s consolidated financial statements is from 1 January 2023 to 31 December 2023.

BOUNDARIES AND STANDARDS

This Report complies with the following requirements and recommendations:

• Bank of Russia’s Regulation No. 714-P On Disclosure of Information by the Issuers of Issue-Grade Securities dated 27 March 2020;
• Bank of Russia’s Letter No. 06—52/2463 On Corporate Governance Code dated 10 April 2014;
• Bank of Russia’s Letter No. IN-06—28/102 On Disclosure in the Annual Report of a Public Joint-Stock Company of a Report on Compliance with the Principles and Recommendations of the Corporate Governance Code dated 27 December 2021;
• the UK Corporate Governance Code;
• Bank of Russia’s Information Letter No. IN-06-28/49 On Recommendations on Disclosure by Joint-Stock Companies of Non-Financial Information Pertaining to Their Activities dated 12 July 2021;
• Order of the Ministry of Economic Development of Russia No. 764 On Approval of Methodological Recommendations for the Preparation of Sustainable Development Reporting dated 1 November 2023;
• the Listing Rules of the Moscow Exchange and the London Stock Exchange;
• the AA 1000 and ISO 26000 standards;
• CDP — Carbon Disclosure Project standards;
• the Value Reporting Foundation;
• the Task Force on Climate-Related Financial Disclosures (TCFD);
• Reference Performance Indicators of the Russian Union of Industrialists and Entrepreneurs (RSPP), and the MOEX—RSPP Responsibility and Transparency, and Sustainability Vector indices;
• the Social Charter of the Russian Business sponsored by the Russian Union of Industrialists and Entrepreneurs.

The Company takes into account Russian and international best practices for disclosing information on sustainable development, including the ESG reporting standards IFRS S1 and IFRS S2 issued by the International Sustainability Standards Board (ISSB).

The Company prepared reporting in accordance with the GRI Standards. Appropriate disclosure of qualitative and quantitative information prepared in accordance with the GRI Standards («Selected Information») has been assured by Joint-Stock Company Technologies of Trust — Audit (Technologies of Trust — Audit JSC) in line with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information. The independent assurance report and the GRI Content Index are available in the appendices to this Report.

This Report provides insight into the performance of parent company PhosAgro and its subsidiaries (hereinafter jointly referred to as «PhosAgro Group», the «Group», or the «Company») across their operations for the year 2023, while also offering information on corporate governance and corporate responsibility. The key subsidiaries of the Group and PhosAgro’s stake in these subsidiaries are presented in the Group’s 2023 IFRS consolidated financial statements.

Financial results in the Report were disclosed based on the IFRS consolidated financial statements of the Group for 2023 audited by Technologies of Trust — Audit JSC in accordance with the International Standards on Auditing.

The boundaries of the Group companies covered in this Report differ from those in consolidated financial statements when it comes to specific non-financial disclosures. To ensure compliance with the materiality principle, we determined such boundaries in a way that this Report describes all material aspects of PhosAgro Group.

The data disclosed in this Report includes information on:

Boundary 1 — PhosAgro and companies that are part of the group to which PhosAgro belongs (corresponds to the scope of disclosure in IFRS consolidated financial statements).

Boundary 2 — Apatit, including its branches and standalone business units.