PhosAgro

Sustainable development strategy
The company discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy. Furthermore, it reports consistently against all its targets.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company has a time-bound target to reduce its scope 1 and 2 emissions. The company also discloses its combined target to reduce its Scope 1, 2 and 3 by 14% by 2028 vs 2018.

Availability of nutritious foods
The company discloses that it has ramped up its production of mineral fertilizers with micronutrients that can be accumulated by plants and are considered an important way to combat malnutrition and reduce nutrient deficiencies.

Workforce nutrition
The company discloses that it has workforce healthy eating programs, which include an access to consultations with nutritionist. Moreover, it has several initiatives to promote healthy food at workplace, including a pilot project introducing a traffic light labelling system for foods in its canteens to promote healthy diet among its employees.

No leading practices were identified in the social inclusion area.

Act ethically
PhosAgro identifies bribery and corruption risks through regular audits and has a policy that strictly prohibits bribery and corruption. Additionally, the company discloses its global tax strategy and lobbying expenditures. Furthermore, it ensures that its contracts with direct business relationships include anti-bribery and anti-corruption clauses.

Provide and promote decent work
The company affirms its commitment to worker health and safety through a publicly accessible policy statement. It transparently reports the coverage of its direct operations workforce under collective bargaining agreements. Moreover, the company actively monitors health and safety performance among its business relationships and states that employees should not exceed 48 hours of work per regular week or 60 hours with overtime. Lastly, the company openly discloses the proportion of women in different employee categories within its total direct operations workforce.

Respect human rights
The company has a publicly available policy statement that commits to respecting both the ILO core labour rights and human rights. Additionally, the company ensures that it provides a human rights grievance mechanism that is accessible to all workers.

Governance and accountability for sustainable development
The company has an opportunity to link performance criteria in senior executives’ remuneration policies to targets and objectives which cover environmental and social issues. Furthermore, it could disclose whether its highest governance body has expertise with respect to the company’s most material sustainability topics.

Lobbying and advocacy
The company has an opportunity to disclose a list of trade associations of which it is a member. Furthermore, it could provide a clear and detailed framework for assessing the alignment of these trade associations with its sustainability targets and report any (potential) misalignments between the lobbying activities of its trade associations and its sustainability targets.

Stakeholder engagement
The company has an opportunity to disclose an overview of the issues raised by each stakeholder group during its stakeholder engagement activities and to describe its process for engaging with stakeholder groups, beyond its materiality assessment.

Sustainable development strategy
While the company discloses some sustainability objectives/targets including climate, it has an opportunity to establish group-wide targets for the most material parts of its value chain.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company has an opportunity to reduce its scope 3 greenhouse gas emissions. It could also report progress on its scope 1, 2 and 3 emissions targets. Furthermore, it can align its scope 1, 2 and 3 emissions targets with a 1.5-degree trajectory.

Plastic use and packaging waste
The company has an opportunity to disclose quantitative evidence regarding plastic use reduction and use of sustainable packaging.

Soil health and agrobiodiversity
While the company indicates an intention to improve soil health indirectly through its involvement in scientific experiments and cooperation with the FAO, it has an opportunity to disclose activities and targets to improve soil health or agrobiodiversity related to its production or sourcing practices.

Water withdrawal
The company has an opportunity to provide quantitative evidence of water withdrawal reductions in its own operations. Although it discloses reduction targets pertaining to water consumption, absolute water use, and/or water intensity, it can also disclose a specific target to reduce water withdrawal across its own operations and track progress against it. Furthermore, it can report the amount of water withdrawn for its operations in water-stressed areas, as well as collaborate with suppliers in order to minimize water withdrawal.

Availability of nutritious foods
The company has an opportunity to make a commitment to addressing food insecurity and malnutrition. Alongside highlighting its increased production of mineral fertilizers with micronutrients, the company can also provide additional information about its activities and their outcomes in tackling malnutrition.

Workforce nutrition
While the company discloses the number of employees reached through its e-learning nutrition program, it has the opportunity to disclose quantitative evidence on its healthy food offering program.It could also disclose the length covered by its parental leave policy as well as any other breastfeeding supports such as dedicated breastfeeding rooms or flexible working hours for breastfeeding mothers. Furthermore, the company has an opportunity to expand its nutrition initiatives to its supply chain workers.

Child labour
The company has an opportunity to disclose examples of remediation programmes when a case of child labour is found in its operations and to indicate how it is building the capacity of its suppliers to prevent child labour impacts. While the company prohibits its suppliers from using child labour, it could require them to have an age-verification system in place.

Farmer and fisher livelihoods
The company has an opportunity to identify living income benchmarks and assess living income gaps for some commodities and regions. Also, it could adopt procurement practices and develop supply chain relationships that improve farmers’ income resilience.

Forced labour
The company has an opportunity to disclose forced labour requirements for its operations and supply chain such as a prohibition to pay recruitment fees, to retain workers’ personal documents or to restrict workers’ freedom of movement. Further, it could provide evidence of how it builds the capacity of its suppliers to prevent forced labour impacts.

Health and safety of vulnerable groups
The company has an opportunity to recognise and assess the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers. Furthermore, it could provide evidence of support activities that improve the health and safety of vulnerable groups.

Living wage
The company has an opportunity to set a target for paying a living wage across its direct suppliers and describe how it determines a living wage for the regions where it sources. Also, it could disclose the percentage of workers across its own operations or suppliers that are paid a living wage.

Act ethically
The company has a mechanism in place for stakeholders to raise concerns, but it is unclear if this mechanism is accessible to all stakeholders for reporting bribery and corruption without fear of reprisals. Additionally, the company outlines its approach to political engagement in a policy, but it could also take the opportunity to outline its approach to lobbying in a separate policy. It would be beneficial for the company to publicly disclose a statement stating that it does not make political contributions. Furthermore, the company has an opportunity to require third-party lobbyists to adhere to its lobbying and political engagement policy.

Provide and promote decent work
The company has the chance to enhance its commitment language regarding the health and safety of workers in its business relationships. Additionally, it can demonstrate a stronger commitment to paying a living wage by setting a specific time-bound target. It could also be transparent about how it determines a living wage in the regions where it operates, and outline how it supports the payment of a living wage by its suppliers.

Moreover, it has an opportunity to publicly commit to gender equality and women’s empowerment and establish time-bound targets in this regard, and disclose that it has a minimum of 30% women representation on its board.

Lastly, the company could provide the ratio of basic salary and remuneration of women to men in its total direct operations workforce for each employee category, based on significant locations of operation.

Respect human rights
While the company expects suppliers to uphold specific workers’ rights, there’s room to include all fundamental ILO rights. In addition to its modern slavery risk assessment, the company could elaborate on how it identifies human rights risks across operations and supply chain. The company could also improve its transparency by revealing the outcomes of its human rights risk assessment.

Furthermore, the company can enhance its disclosure by detailing its human rights due diligence process, expanding beyond modern slavery risk assessment. It could also provide insights into its method for identifying significant human rights concerns and potentially introduce a global system to address such issues proactively.