Environmental sustainability

Our business operates on the basis that we are contributing to a more resource efficient planet through the use of our products. We therefore ensure that our direct and indirect impacts on the natural environment are minimised. While our environmental protection expenditure decreased by 11% in 2013 (compared to 2012), the overall trend is increasing and we expect this to be the case over our next five year planning cycle.

How we manage water use, emissions, waste and effluent

In 2013, the management of environment, health and safety (HSE) came under the control of a Corporate HSE Department (based in Moscow), reporting directly to the Administrative Director. This new Department organises and integrates the work of more than 120 HSE professionals whose role is to ensure the effective and consistent execution of the HSE policy across all plants. We have a clear and stated commitment to strengthening HSE culture, management systems and compliance.

This was part of a wider corporate reorganisation, which saw a HSE function embedded within the newly created corporate Divisions of Fertilizers, Mining, Logistics and Sales

Management is devolved as follows:

Company level – CEO, EuroChem Management board and Directors (HSE is always the first agenda item on the weekly Management board and quarterly Board of Directors meetings)

Divisional level – Divisional Managing Directors

Plant level – plant Managing Director (to which the dedicated HSE team reports) in line with the corporate reorganisation, also in 2013, the board approved a new HSE policy which applies to all our operating plants. The policy defines our commitment to compliance with relevant laws and regulations and an equal commitment to continuous HSE performance improvement. The management system is subject to ongoing internal audit and annual external verification by an independent certification company against the ISO14001 standard. We also continue to comply with REACH and the requirements of the chemical industry programme Responsible Care.

This approach unifies our environment and health and safety management. In particular it applies to the three indicators that we are reporting on for 2013, namely water, emissions and waste and effluent.

Aspect

Why it is important

Who has a stake

Indicator

Water

Some of our operations require large volumes of water for production

National and local government, utilities, communities, suppliers

Water consumption (m3/tonne)

Emissions

We operate complex processes
that emit a range of gases which can be harmful to humans and
the environment

Employees, national and local government, communities, NGOs

Kg/tonne

Waste and effluent

We produce and manage significant volumes of solid wastes and effluents, e.g. Phosphogypsum

Employees, national and local government, communities, NGOs

Effluent (m3/tonne)

Policies and guidelines

Business strategy

HSE Policy and Framework

Environmental protection and natural resources laws
and regulations in countries of operation

Environmental Management System
(compliant with ISO14001)

Equator Principals

REACH

Responsible Care

Aspect boundary
Internal and External

Our use of water and our emissions, waste and effluent are internal management priorities. Our environmental management systems apply to all of our operational sites. This excludes the repair services attached to each of these production sites, which have their own management system.

Water is taken from outside the company while effluent, waste and emissions have an impact beyond site boundaries.



Water

Water is used in production and energy generation across the company’s plants. It is obtained in varying measures from surface and ground water sources.

Its use is governed by national and EU regulations, as well as our own management targets.

Consumption patterns are monitored and managed by the HSE teams at each plant and reported back to the Corporate HSE Department.

In 2013, our consumption of non-recycled water per tonne of production decreased by 7% over 2012. This reflects the ongoing investments in new and improved plant operations as well as specific programmes to reduce water use and improve treatment and recycling.

Emissions

The main emissions across the company’s plants are sulphur oxides, carbon monoxide, nitrogen oxides, sulphuric acid, ammonia, particulates, hydrocarbons and volatile organic compounds.

Emissions levels and controls are governed by national and EU regulations, as well as our own management targets. We also operate a network of air quality monitoring stations at Belorechensk, Nevinnomysk, Tuapse, Kotelnikovo, Novomoskovsk, Kingisepp and Usolie. The resulting data is fed to independent regional hydrometeorological centres, from where it is made available to regional government authorities and media.

Emissions levels are monitored and managed by the HSE teams at each plant and reported back to the Plant Managers and Corporate HSE Department.

Atmospheric emissions across the Group remained static between 2012 and 2013 at 1.04 kg per tonne of production. We expect to see incremental improvements during 2014-15 as investment in new facilities such as the sulphuric acid plant at Lifosa come onstream.

Our reporting group analysed stakeholder expectations alongside business imperatives and chose not to identify greenhouse gas emissions as a specific material issue in this report. This decision was made chiefly because our corporate footprint changed (for example, through the integration of EuroChem Antwerpen) and under the auspices of the new HSE regime, we decided to review our approach to measurement and analysis of greenhouse gases from 2013 through 2014-2016. We expect the stakeholder expectations around greenhouse gas emissions to change in 2014 as we cement and expand our international footprint and as the business enters a new phase of development.

Waste and effluent

The main solid waste streams from the company’s plants are phosphogypsum (from phosphate fertilizer production), overburden and concentration tailings (from mining operations). Waste water from our plants contains, in varying degrees, levels of petroleum products, suspended matter, ammonium, nitrates, sulphates, chlorides, fluorine and phosphorous.

Ongoing investments in new facilities and associated upgrading of plant, water recycling and effluent treatment technology has resulted in a 6% reduction in effluent discharges per tonne of production between 2012 and 2013.

Waste and emissions levels are governed by national and EU regulations, as well as our own management targets. These are monitored and managed by the HSE teams at each plant and reported to the Corporate HSE Department.

Our environmental programme

Our current environmental programme is mapped out from 2011-2015. The main aspects of the programme are as follows:

  • Ensure compliance and continuously improve the environmental management and audit programme aspects of ISO14001.
  • Further refine responsibilities and embed environmental performance targets into all levels of company operations, from corporate to individual units.
  • Refine and improve data collection and deploy best practice.
Targets and objectives

Our strategic objective is to reduce our environmental footprint. In relation to each indicator we aimed to achieve the following objectives in 2013:

  • Reduce atmospheric emissions over 2012 levels.
  • Reduce volumes and hazard levels of industrial waste and increase recycling over 2012 levels.
  • Reduce effluent emissions and increase quality over 2012 levels.

Key stakeholders

Our environmental management system touches on all parts of our business and 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 the safe and appropriate use of our fertilizer and chemical products. All our products carry the relevant safety and usage information as guided by international laws and best practice.

Federal authorities

Our production facilities are regulated and monitored by more than 20 government agencies in Russia, Kazakhstan and Belgium. We work closely with these agencies to identify sites for and analyse the outputs from our air quality monitoring stations.

Shareholders

Shareholders are updated on our environmental management indicators, chiefly investment, energy use, atmospheric emissions, fresh water use and effluent discharge. This is done through one-to-one meetings, via our website and annual reports.

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 all appropriate safety and usage permits. All our contractors are 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 all necessary guidance and equipment to comply with environmental management systems.

Employees

All employees are trained and certified according to their environmental responsibilities and specific management routines.

Local communities

Our community liaison team organises regular site visits for local communities to view environmental management processes. The data from our air quality monitoring stations is also made available via government agencies and local media.

Key environmental projects

Kovdorskiy GOK

Scoping study on improving waste water treatment.

Phosphorit

Commissioned Atkins to undertake sampling and analysis of waste water run-off (see case study on page 37).

Lifosa

Reconstructed aluminium fluoride workshop to reduce energy, reduce air emissions and enhance safety and the work environment.

Reconstructed ammonia storage with automated controls to increase efficiency and safety.

More efficient catenary converter to greatly reduce SO2 emissions.

Expand and upgrade phosphogypsum storage.

New bicycle lanes constructed to the plant from the town.

Novomoskovskiy Azot

Started reclamation of former disposal sites for construction and inert waste.

New ammonium nitrate plant with improved environmental controls, safety measures and energy efficiency.

Improved system for controlling nitrous oxide emissions.

Nevinnomysskiy Azot

Upgraded effluent treatment plant, reducing emissions of ammonia by 40% and suspended solids by 25%.

Modernised gas purification equipment.

Feasibility study on recycling catalysts from melamine production.

EuroChem-VolgaKaliy

Second stage of solid waste management facility commissioned.

Continued operation and development of environmental monitoring.

HSE action plans written in line with Equator Principles.

EuroChem-Usolskiy

HSE action plans written in line with Equator Principles.

EuroChem Antwerpen

Improved dust monitoring and reporting system.

Started improved Boron storage project.

Started waste water cooling project.

Re-use containers for exporting finished product.

Tuapse Transhipment Terminal

Ongoing communications with local community and environmental monitoring.

EuroChem BMU

Commissioned $10m heat recovery system in sulphuric acid plant, reducing natural gas consumption from 6.8 million m3 to 4.2 million m3 per annum.

Process water recycling plant commissioned in 2012 – fully operational with zero discharges into waterways.

map3

  • NAMEAida Jafarova
  • ROLESpecialist, industrial waste neutralisation and treatment facility
  • WHERE I WORKPhosphorit
  • My view“It is important for me that my work contributes to environmental protection. In addition, I have found a friendly team of professionals and good facilities to realise my career ambitions.”
  • StoryWhile studying at Ivanovo State Chemical and Technical University Aida was an intern at Phosphorit. In 2012, Aida won third prize at a Company-wide scientific conference. She is also an active member of the Council of Young Specialists at the plant.
  • NAMEYulia Mikhailova
  • ROLESpecialist, HSE department
  • WHERE I WORKKovdorskiy GOK
  • My view“I like the active young team at the plant and the fact that the Company supports our initiatives.”
  • StoryYulia graduated from Moscow State Textile university specialist in Engineering Process and Industrial Safety. She is a member of the Council of Young Specialist and is an active participant in social projects and events promoting healthy lifestyles, occupational and employee safety and career guidance activities for schoolchildren.
  • NAMEAnton Molvinsky
  • ROLELead technologist in the production department
  • WHERE I WORKSeverneft – Erengoy
  • My view “The Company grows through its investments in new projects, which also provides me with opportunities to learn and develop.”
  • StoryAnton was employed in 2012 as a lead process Engineer in the production Department of Severneft-Urengoy. He greatly values the experience, the opportunity to participate in innovative engineering projects and in the development of new deposits.
  • NAMEYuri Leonov
  • ROLEHead of repair and construction service, fertilizers divisions
  • WHERE I WORKEurochem Moscow
  • My view“My approach to work is not only to comply with my job description, but to assume additional responsibilities. This, I believe, is the approach of all of the EuroChem team and it is why the Company is so dynamic.”
  • StoryYuri started working at EuroChem headquarters in 2011, since when he has been promoted to his current position.