Being aware of our responsibility to both current and future generations, the Company in all its operations pays close attention to ESG-aspects of business, which provides great opportunities for efficiency improvement, and does everything possible to lend social and economic support to the communities in which it operates, to reduce the negative impact on the environment and to ensure environmental and industrial safety.
“Zero injuries” is one of the key production priorities for the Company. This approach is based, first of all, on developing the safety culture of our workers, refining management systems in the field of occupational and industrial safety, including both informing our staff about existing risk factors and training them to prevent injuries and reduce accidents. The main goal is to develop a culture of deliberate aversion to any kind of violations, which can lead to irreparable consequences.
This principle should be used at all management levels, from entry-level workers to the Company’s top management. I would like to emphasise that much has already been achieved in this area: all Uralkali’s production sites have introduced an occupational safety management system certified for compliance with the requirements of OHSAS 18001 international standards. We run various programmes, including a set of internal labour safety Cardinal Rules and have in place other corporate procedures regulating safety issues in this area not only in Uralkali, but also in its contracting organisations working in the territory of the Company.
More information about this area of Uralkali’s activities can be found here.
Since large-scale industry, in the majority of cases, is associated with a negative impact on the environment, preservation is also among the most important activities of Uralkali. The Company uses advanced treatment technologies, regularly optimises the industrial waste disposal system and enhances production-related energy efficiency. All production processes are based on the principle of compliance with environmental legislation requirements.
More information about our 2019 activities in this area can be found here.
The Company pursues a consistent policy with the aim of creating favourable living conditions in the region for both employees of Uralkali Group and their families and for the population of Berezniki and Solikamsk. In 2019, we initiated a programme to support medical institutions in the cities where we operate. The programme includes purchasing new equipment for healthcare facilities and attracting qualified medical personnel to the region. We also continued the housing project for Uralkali Group’s employees to build eight residential buildings in Berezniki and Solikamsk.
In the reporting period, Uralkali continued funding of the projects for the development of social infrastructure, sport, culture and education and rendered support to local authorities and non-governmental organisations, including through sponsorship and charity.
Uralkali’s social investments in 2019 totalled USD 28 million. More information about our contribution to the development of the cities where we operate can be found here.
Through its operating activities, Uralkali makes a great contribution to achieving the UN’s Sustainable Development Goal No. 2: “End hunger, achieve food security and improved nutrition and promote sustainable agriculture”. The production of potash fertilisers to supply people around the world with quality food is the Company’s mission.
An important role in solving this global problem is played by Uralkali’s research and educational activities, which include a range of educational projects on the benefits of balanced fertilisation in agriculture.
All of these corporate initiatives would have been impossible without the involvement of qualified personnel and professional management of the Company and the support for our work from all stakeholders. Therefore, I want to thank everyone for their help in studying, adapting and applying international experience in the field of social responsibility and sustainable development.
The Management of Uralkali recognises that in order to secure the long-term sustainability and the competitiveness of its business, it needs to take a responsible approach to the sustainability of its operating activities.
The Company strives to ensure the right balance between the interests of the business and the society, as well as the harmonious management of economic, environmental and social aspects of its activities.
Uralkali regularly improves its sustainable development practices, and continuously builds an integrated approach to managing the negative and positive impacts on the environment and local communities.
Our sustainable development activities consist of four key areas:
The Company uses these aspects to define, review, and prioritise its sustainable development initiatives.
A crucial principle of Uralkali’s sustainable development and responsible operations is the reduction of negative impact on the environment and its preservation.
The sustainable functioning of natural or established ecosystems, favourable environment and the preservation of its biological diversity are essential to human health and create conditions for the development of future generations. In this regard, Uralkali implements all necessary measures to protect the environment.
The Company fully adheres to the requirements of environmental legislation, uses natural resources responsibly, and constantly introduces new environmental protection measures.
The Company has approved the IS, LS and HSE Policy, which defines the key aspects and main areas of the Company’s HSE activity:
Uralkali focuses on measures to minimise the negative environmental impact of its activities.
The high level of production organisation and the use of advanced technologies enable Uralkali to successfully achieve its sustainable development goals. These include the efficient use of non-renewable resources and adherence to the highest environmental protection standards to minimise the environmental impact of the Company’s business.
Uralkali’s main HSE goals are as follows:
The Company has developed and approved internal HSE regulations, which form the basis of the Environmental Activities Plan developed annually.
In 2019, as part of the plan implementation, activities were carried out in the following key areas:
The Company conducts its operations in accordance with the HSE legislation of the Russian Federation, complies with environmental regulations, takes into account the requirements of the Russian Federation regulations and international standards, and strictly adheres to the requirements of internal regulatory documents.
Uralkali’s production facilities carry out regular measures to monitor compliance with environmental standards and regulations as part of the environmental control programme. At the same time, the results of the environmental impact measurement are noted in the internal measurement forms and must be provided to the environmental authorities and recorded in the state statistical reporting forms.
HSE expenditures in 2019 amounted to RUB 4,889 million which is 22.6% more than in 2018. In addition to current expenditures associated with protecting the atmosphere, water, and land resources, Uralkali is investing in the modernisation of existing machinery and the installation of new pollution control equipment, staff training, and the development of internal monitoring and control systems, as well as scientific research.
In September 2019, Uralkali received the IFA Product Steward Excellence status of the Protect & Sustain international standard by International Fertilizer Industry Association (IFA). The uniqueness of the Protect & Sustain standard is in its combination of many aspects reflected in the quality management systems (ISO 9001), labour safety (OHSAS18001) and environmental management (ISO 14001), as well as the requirements of technical specification RC14001, which formulates the provisions for management systems of chemical industry organisations.
The certificate confirms the effective management mechanisms for all stages of production, transportation and sales of potash fertilisers, as well as commitment to best practices in production safety and environmental friendliness of products. Uralkali’s certification for compliance with the Protect & Sustain standard was carried out by international auditors covering 113 issues of various aspects of the Company’s activity. The certificate is valid for three years.
"Certification for compliance with the Protect & Sustain standard is an important evidence of successful implementation of the Company’s sustainable development strategy. Uralkali introduces the best global practices for all stages of production, delivery and sale of potash fertilisers.
We pay special attention to the safety and environmental friendliness of all production processes."
In December 2015, 175 countries, including Russia, signed the Paris Climate Agreement, defining measures to combat climate change, primarily aimed at reducing the emissions. Greenhouse gas emissions are the main factor of climate change, regulated by the UN Framework Convention on Climate Change. Higher concentration of greenhouse gases in the atmosphere increases the natural greenhouse effect, which can have adverse impact on natural ecosystems and humanity.
In 2019, Uralkali continued to carry out activities aimed at improving energy efficiency, as well as accounting and control of greenhouse gas emissions. The Company also began to consider possible risks and opportunities related to climate change.
Furthermore, as a member of the International Fertilizer Industry Association (IFA), the Company accepts and supports the position of the association on the importance of climate change management for producers and consumers of fertilisers.
The Company is committed to the sustainable use and preservation of energy resources, and, as a result, minimising the impact on the environment by annually reducing its energy consumption. The Company aims to reduce the share of energy expenditures in the cost of its products.
The Company’s technical specialists make an account for energy consumption data, monitor and control production power supply, as well as implement energy efficiency measures. Since 2013, the Company has adhered to its Energy Management Technical Policy. In order to achieve the best performance, the Company has also introduced the Regulation “On bonuses for energy saving”.
The main strategic goal of the Company in energy efficiency is to reduce energy consumption by 10% by 2022 compared to 2017.
In 2019, the Company’s energy saving measures were implemented in full. Uralkali is considering the possibility of awarding its staff at production facilities that reached the established KPIs.
In 2019, total consumption of fuel and energy resources, in physical and monetary terms, amounted to 2,324.1 tonnes of diesel or RUB 103,282, 15.6 thousand litres of petrol (11.73 tonnes) or RUB 561,000, and 9,487 tonnes of fuel oil or RUB 167,345.
Total electricity consumption for the reporting period amounted to 1,806 million kWh, including 1,538 million kWh of purchased electricity. In monetary terms, it totalled RUB 4,930 million. The actual volume of electricity generated in 2019 decreased by 17.6% year-on-year and amounted to 267.6 million kWh.
Total heat consumption at PJSC Uralkali facilities amounted to 2,646,203 Gcal, including 279,488 Gcal of purchased heat energy, or RUB 242,544 in monetary terms. In the reporting period, Uralkali facilities sold 25,100 Gcal of heat energy for the total amount of RUB 26,413.
The Company uses natural gas for its operations. In 2019, natural gas consumption totalled 369.5 million cubic metres, with natural gas procurement costs amounting to RUB 1,475 million. Natural gas accounts for 79% of the total volume of gas consumed, with the share of associated petroleum gas at 21%. In 2019, consumption of natural gas decreased by 14% year-on-year.
Energy consumption by type, 2017–2019
| 2017 | 2018 | 2019 | ||||
|---|---|---|---|---|---|---|
| physical units | RUB mln | physical units | RUB mln | physical units | RUB mln | |
| Heat, Gcal | 2,720,700 | - | 2,825,489 | - | 2,646,203 | - |
| incl. generated | 2,709,535 | - | 2,735,140 | - | 2,366,715 | - |
| incl. purchased | 11,165 | 14.7 | 90,349 | 82.3 | 279,488 | 242.5 |
| Electricity, thousand kWh | 1,839,028 | - | 1,872,308 | - | 1,805,897 | - |
| incl. generated | 343,266 | - | 324,846 | - | 267,648 | - |
| incl. purchased | 1,495,762 | 4,447.2 | 1,547,462 | 4,526.8 | 1,538,249 | 4,930.5 |
| Natural gas, m3 | 448,929,063 | 1,694.1 | 430,474,719 | 1,657.7 | 369,457,994 | 1,475.3 |
| Associated gas, m3 | 106,615,000 | 414.6 | 104,871,450 | 420.6 | 99,003,167 | 408.4 |
| Diesel, tonnes | 2,024.6 | 69.4 | 2,259.6 | 94.9 | 2,324.1 | 103.3 |
| Petrol, tonnes | 19 | 0.698 | 139 | 0.865 | 12 | 0.561 |
| Fuel oil, tonnes | 11,778 | 126.7 | 11,183 | 192.1 | 9,487 | 167.3 |
In 2017–2018, PJSC Uralkali conducted an energy assessment. It led to the development of the Company’s energy passport and drafting of the 2019–2023 Energy Saving Programme.
As part of the Programme implementation, the following activities were carried out in 2019:
In 2019, investments into the Programme totalled RUB 120 million.
As the result of the Energy Saving Programme implementation in the reporting period, certain results in reducing energy consumption were achieved. Electricity saving amounted to 14,000 MWh, while natural gas saving totalled 6,240 toe. In the reporting period, total savings in fuel and energy resources amounted to RUB 63.6 million.
As the result of all measures carried out in 2019, energy intensity per tonne of production decreased by 2.5% and amounted to 2.285 GJ/t.
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| The Company's gross energy consumption, GJ | 27,129,779 | 26,977,219 | 25,359,954 |
| Energy intensity, GJ/t | 2.253 | 2.347 | 2.285 |
As part of its Energy Saving Programme, the Company uses associated petroleum gas, which it purchases from oil and gas companies of the Perm Region.
This approach enables the Company to reduce its natural gas consumption. It is also more environmentally friendly. By using associated petroleum gas as a fuel and energy resource, the Company helps oil companies to use natural resources more comprehensively and efficiently.
In 2019, Uralkali used 99.0 mln m3 of associated petroleum gas which amounts to RUB 408.4 million.
Emissions are produced by the equipment and pipes of boiler shops during fuel combustion (natural gas, associated petroleum gas, fuel oil) at the mines.
As part of the Company’s programme to expand its existing production facilities, Uralkali is investing in its waste treatment equipment upgrade. As a result, the operational efficiency of treatment facilities is increasing, thus reducing the Company’s environmental impact.
The volume of air emissions of pollutants per unit of production remained at the level of 2018 and amounted to 0.52 kg/t. All air emissions from stationary sources are within the regulated limits. In 2019, there were no unplanned (accidental) emissions.
Total air emissions by PJSC Uralkali in 2017–2019 by pollutant type, thousand tonnes
| Indicator | 2017 | 2018 | 2019 |
|---|---|---|---|
| Particulate matter (PM) | 2.32 | 2.41 | 2.56 |
| Sulphur dioxide | 0.45 | 0.37 | 0.37 |
| Carbon oxide | 1.49 | 1.45 | 1.32 |
| Nitrogen oxides (NO2) | 1.45 | 1.46 | 1.35 |
| Hydrocarbons (without VOCs) | * | * |
0.01 |
| Volatile organic compounds (VOCs) | 0.06 | 0.09 | 0.08 |
| Other gaseous and liquid compounds | 0.06 | 0.08 | 0.07 |
| Total, thousand tonnes | 5.82 | 5.86 | 5.75 |
| Intensity of pollutants per unit of production, kg/t | 0.48 | 0.51 | 0.52 |
In addition to the 2019–2023 Energy Saving Programme, which reduces Uralkali’s impact on climate change, the Company carries out mandatory control over greenhouse gas emissions, as well as accounting of data by gas type in accordance with the requirements of environmental legislation of the Russian Federation.
Over the past year, the Company’s direct CO2- equivalent emissions amounted to 1,063 thousand tonnes and decreased by 152 thousand tonnes. Indirect energy greenhouse gas emissions during the reporting period amounted to 647 thousand tonnes.
Carbon intensity (specific mass of direct greenhouse gas emissions per tonne of finished products) amounted to 0.096 tonnes of CO2-equivalent per tonne of finished products, which is 9% lower compared to 2018.
| Indicator | 2017 | 2018 | 2019 |
|---|---|---|---|
| Direct CO2 emissions (Scope 1), thousand tonnes of CO2-equivalent, including: | 1,260 | 1,215 | 1,063 |
| CO2 | 1,259 | 1,214 | 1,062 |
| СH4 | 0.58 | 0.56 | 0.49 |
| N2O | 0.75 | 0.72 | 0.63 |
| Indirect energy emissions (Scope 2), thousand tonnes of CO2-equivalent | 524 | 573 | 647 |
| Total CO2 emissions (Scope 1 + Scope 2), thousand tonnes of CO2-equivalent | 1,784 | 1,789 | 1,710 |
| Specific greenhouse gas emissions (Scope 1) per tonne of production, tonnes per tonne | 0.105 | 0.106 | 0.096 |
Water availability for future generations is one of the major public concerns regarding global demographic and climate changes.
Uralkali pays great attention to responsible water consumption. The main areas of the Company’s impact on water bodies are water consumption for production needs and waste water disposal. Uralkali works in both directions in order to reduce the impact on the environment.
The Company conducts regular measurements of water intake and water consumption in accordance with the requirements of environmental legislation of the Russian Federation. Furthermore, Uralkali implements measures and technical solutions to reduce the risks of negative impact on water bodies, such as maintenance of the water cycle system.
Uralkali abstracts water in accordance with the permits and does not have a significant negative impact on the volume and flow of the water bodies used, as well as on water bodies significant for other water users (the Kama River). The region of the Company’s operations is not water-deficient. In 2019, the Company did not receive any inquiries from stakeholders regarding the use of water bodies.
Gross water consumption by Uralkali in the reporting period amounted to 21.4 million m3. Compared to 2018, the water intake decreased by 2.0 million m3. The total volume of water abstracted for industrial needs amounted to 10.9 million m3 in 2019.
In 2019, the volume of water consumption in the water reuse and water recycling systems amounted to 128.9 million m3.
The volume of water recycling exceeded the volume of abstracted water by 5.7 times in the reporting year.
Specific water consumption per tonne of production totalled 1.93 m3/t in 2019.
Volume of reused and recycled water in PJSC Uralkali water consumption in 2017–2019, mln m3
|
2017 |
2018 | 2019 | |
|---|---|---|---|
| Volume of water recycled and reused for industrial needs | 104.3 | 122.4 | 128.9 |
The Company monitors and maintains records of water discharge volumes in accordance with legislation. There are no uncontrolled sources of water discharge at our production sites. The total volume of wastewater discharge into water bodies totalled 12,637 m3 in the reporting period.
Mining activities generate significant amounts of waste. The main types of waste generated are halite waste and clay-salt slurries (hazard class V).
In order to reduce and prevent negative impact on the environment, Uralkali carries out the following waste management measures:
In 2019, Uralkali facilities generated 30,213 thousand tonnes of waste, 30,208 thousand tonnes of which were of hazard class V, 4 thousand tonnes of hazard class IV, 1.1 thousand tonnes of hazard class III, and 0.5 and 9 tonnes of hazard classes II and I, respectively.
Volume of waste generated by PJSC Uralkali in 2017–2019 by hazard class, handling and utilisation
| Indicator | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total waste generated, including: | 32,697,831 | 32,385,911 | 30,213,225 |
| Hazard class I (t) | 11.16 | 11.18 | 9.46 |
| Hazard class II (t) | 0.33 | 0.37 | 0.52 |
| Hazard class III (t) | 847.69 | 1,171.74 | 1,149.42 |
| Hazard class IV (t) | 2,612.84 | 2,487.1 | 4,024.00 |
| Hazard class V (t) | 32,694,359 | 32,382,240 | 30,208,042 |
| Including under hazard class V waste: | |||
| In-house utilisation (use), thousand tonnes | 16,568.7 | 17,860.4 | 20,519.0 |
| including previously accumulated | 1,345.9 | 1,121.1 | 1,138.5 |
| Transferred for utilisation, thousand tonnes | 1,041.7 | 1,107.8 | 1,184.4 |
| including previously accumulated | 990.9 | 1,064.3 | 1,117.6 |
| Placed for storage (HW, CSS, overburden rocks in the Company’s WDF), thousand tonnes | 17,417.7 | 15,602.3 | 10,756.9 |
| Total placement of waste (hazard class V — HW, CSS, overburden rocks in the Company’s WDF), thousand tonnes | 1.45 | 1.36 | 0.97 |
| Specific waste generation per tonne of produced goods, tonnes per tonne | 2.72 | 2.82 | 2.72 |
The laying of halite waste and clay-salt slurries into idle mines is used as a method of reducing the flow of waste to disposal facilities. In 2019, 20.5 million tonnes of waste were used in total, including 18.8 million tonnes of halite waste and clay-salt slurries. This is 13.14% higher compared to 2018 (16.328 million tonnes).
The Company’s halite waste is also used for the production of:
Halite waste is transferred to third parties for the production of:
In 2019, 2.256 million tonnes of halite waste were used from previously accumulated at the Company’s facilities, including 1.1 million tonnes transferred to a third party.
The total waste tonnage at in-house facilities amounted to 10.8 million tonnes in the reporting period. This indicator has been declining over the recent years. By the end of 2019, the decrease reached 31%.
In the reporting period, Uralkali’s waste placement at the municipal landfill amounted to 27.7 thousand tonnes. An increase of 18.6% and 47.5% compared to 2017 and 2018, respectively. The waste tonnage increase is associated with the increase in the volume of repair and construction works. In 2019, third-party enterprises transferred 1.2 million tonnes of waste (1.1 million tonnes in 2018, 1.0 million tonnes in 2017) for use and neutralisation.
Significant facilities for waste disposal are slurry storages and salt tailing piles. Uralkali takes measures to ensure their safety and reduce the negative impact of their operation on the environment. The Company undertakes the liquidation of technical facilities and land reclamation in accordance with the requirements of environmental legislation.
Uralkali has conducted special monitoring of the potentially dangerous area of the Solikamsk-2 mine since 5 January 1995, when an earthquake led to the destruction of pillars and the formation of a soil subsidence area about 4 metres deep and 950 metres by 750 metres across under the mined-out areas of north-eastern panels 1 and 2 of Solikamsk-2. In order to mitigate the consequences, the Company backfilled areas around the collapsed zone. Since 1995, the accident area has been subject to detailed comprehensive monitoring.
On 18 November 2014, Uralkali detected higher levels of brine inflow in the Solikamsk-2 mine and immediately implemented an emergency plan. All employees were evacuated from the mine. On 18 November 2014, at around 16:00 (MSK), a sinkhole with a diameter of approximately 30–40 metres was discovered east of the Solikamsk-2 production site, outside the metropolitan area. The sinkhole is mainly associated with the area where the rocks and inter-bed pillars collapsed on 5 January 1995. The emergency area around the sinkhole was immediately fenced off.
According to the Act of the technical investigation into the cause of the accident, fresh water inflow into the worked-out areas of the Solikamsk-2 mine on 18 November 2014 was caused by the collapse of rock in the mine during the accident in 1995. Thus, the cause of the accident on 18 November 2014 at the Solikamsk-2 mine was an emergency that was unavoidable under the given circumstances.
The danger zone around the sinkhole with restricted access for people is determined, and the perimeter is monitored round-the-clock. Monitoring of the danger zone has been expanded: additional operating methods have been implemented and observation of developments has been intensified. The following special scientific and project institutions were engaged in the emergency mitigation work: the Mining Institute of the Ural Branch of the Russian Academy of Sciences, and JSC “VNII Galurgii”.
The Company is now implementing a number of engineering and other measures to minimise the impact of the accident and reduce suprasalt water inflows into the mine. In order to reduce water inflow into the mine, a dewatering system has been set up around the sinkholes, and voids and sinkholes are being plugged. Boundaries of the danger zone were determined in order to avoid negative consequences in the Solikamsk-2 mine. Beyond this zone, mining operations are being performed in order to stow the area with materials. Constant monitoring of the situation is carried out in the mine.
Uralkali is fully committed to protecting the health and safety of our workforce,
mitigating occupational safety risks and protecting the environment, all which
remain an absolute priority across every aspect of our business and underpins all
decision making.
The Company adopted a Health and Safety (HSE) Policy in 2012, which was later
updated in line with the latest compliance and legislative requirements.
Safety remains a vital area of focus and forms an integral part of all our decisions and actions. We appreciate that any irresponsible and ill-thought through actions can have serious consequences not only on our people, but their families and loved ones. Ensuring our workers return home safe and healthy at the end of each work shift is of utmost priority.
A zero-harm workplace, mitigation of any incidents, and the absence of emergencies and occupational illnesses are a crucial goal for business efficiency. Our employees rely on us for the provision of favourable working conditions, whilst the Company expects them to strictly follow safety regulations and procedures.
By upholding a mutually responsible approach to these principles, we will not only improve the level of performance of our business, but also ensure the sustainable development of our Company.
In 2019, 18 accidents occurred at Uralkali and its subsidiaries in the Russian Federation. We are very sad to report that three of these accidents were fatal. Each tragedy was thoroughly investigated with the following causes of fatalities identified as a result of the enquiry. The investigation revealed the following causes: a rupture of the slurry pipeline, crossing of a conveyor belt during its operation, and execution of mining and excavating works while not operating within the Company’s safety procedures and rules. The Company takes this extremely seriously and continues to enhance its safety culture through enhanced employee training, and has taken all necessary measures to prevent similar accidents from occurring in future. Following the investigation into the rupture of the slurry pipeline, the Technological Regulations for Stowing Operations have been updated and a risk assessment report of pipeline operations is currently under development.
Lost time injury frequency rate (LTIFR) at PJSC Uralkali and its Russian subsidiaries stood at 0.11 in 2019, representing a year-onyear increase. Lost days rate (LDR) stood at 7.6. The majority of injuries that occurred in 2019 were caused by falls as a result of stumbling and slipping, as well as being hit by falling objects.
An accident that took place in February 2019 was connected to a fire in a mobile compressor station in the Berezniki-4 mine. No emergencies took place at PJSC Uralkali’s operating sites in 2019.
PJSC Uralkali continuously improves its systems of occupational health and safety management. In 2019, the Company established an LS, IS and HSE Directorate that also included the LS and IS Department.
The Company has established committees overseen by the CEO of PJSC Uralkali to discuss important issues such as: labour, health and environmental safety, corporate social responsibility (hereinafter, the Labour Safety Committee), and mine safety; to which an Emergency Management Committee has also been established. The Company’s entire management team takes part in the work of the committees. The committees meet regularly at least once every quarter or more frequently in the event of emergency. Control over the execution of decisions taken by the Labour Safety Committee is entrusted to the LS, IS and HSE Directorate, Mine Safety Committee, and Subsoil Use Directorate.
At the Board level, all labour, occupational and fire safety matters are supervised by the Committee on Labour, Health and Environmental Safety and Corporate Social Responsibility. The Committee oversees the Company’s adherence to Russian legislation on labour, occupational, fire, radiation and environmental safety.
The Company has created an extensive regulatory framework for labour and industrial safety. Additionally, PJSC Uralkali has the following internal regulations, in line with the Health, Safety and Environment Policy:
Uralkali’s system of labour and industrial management covers 100% of the Company’s assets and has received certification in accordance with the OHSAS 18001-2007 standard in 2018. The OHSAS certificate is valid until 2021.
In accordance with the Company’s industrial safety framework, Uralkali employees and contractors strictly adhere to the Cardinal Rules (a set of basic labour and industrial safety regulations adopted by the Company) and other safety requirements aimed at mitigating accident risks in the workplace.
The Company regularly supervises how its employees follow the safety requirements, as well as monitors changes in key indicators such as LTIFR and LDR, and the number of accidents. Uralkali conducts regular internal audits of the labour and occupational safety system.
Uralkali continuously optimises its risk assessment system for labour safety, analyses risks on an annual basis, and undertakes measures to minimise them. In particular, in 2019 the Company evaluated the risks involved in working in close proximity to existing pipelines. The assessment was part of the accident prevention activities carried out after the rupture of the slurry pipeline, which resulted in the death of an employee of Uralkali Group (LLC “Uralkali-Remont”).
The Board for Prevention of Violations of Labour Safety (LS), Industrial Safety (IS) and HSE organises monthly meetings together with the Company’s production unit. Additionally, the HSE Committee examines any violations of the Cardinal Rules, as well as other issues.
In 2019, in accordance with the Federal Law No. 426-FZ On Special Assessment of Working Conditions (dated 28 December 2013), an audit of working conditions at the Company’s facilities was carried out at newly organised workplaces, as well as at workplaces where technical processes changed or accidents and occupational illnesses were recorded.
In order to ensure the safety of the transportation of our people and goods delivery in subsurface conditions, a project is being implemented for the installation of tachographs on vehicles in the Company’s mines.
Uralkali employees were equipped with DVRs, cameras and voice recorders in order to record any violations of labour, occupational and fire safety requirements at work.
In 2019, the Company continued its work on the Initiative area, the main purpose of which is the identification, expert assessment and implementation of improvement initiatives at the Company’s operations. This includes identification of any potentially hazardous working conditions. During 2019, 37 initiatives aimed at improving working conditions and reducing the risk of injuries were implemented by the Company.
A medical examination complex was also launched in 2019 at Uralkali’s Solikamsk-3 mine, for the benefit of employees working in the underground mines. Employees can undergo prompt medical tests, using the Kuzbass-TsOT software complex and medical examination terminals at the new complex. The main purpose of the complex is to reduce industrial injuries by incorporating the values of safe workplace behaviour into an employee’s daily routine and culture. The medical complex deploys a methodology of Group Development and Control of Employee Expertise. The complex allows one to quantify the risks of injuries due to actions of employees incompliant with safety procedures.
Uralkali pays special attention to contractors’ compliance with labour, occupational and fire safety requirements during tender procedures for selection of contractors, as well as during the course of the contractual works being carried out. When the Company conducts its contractor selection tender procedures, it verifies whether the employees of the contractor have completed the training required; their level of expertise; availability of special-purpose clothing, personal protective equipment (PPE), and permits for the use of the required tools and equipment.
The Company has developed Regulations on the Procedures for Safe Work Performed by Contractors at Surface and Subsurface Facilities of PJSC Uralkali’s Divisions, which coordinate the admission to work of employees of contracting organisations. One of Uralkali’s requirements is the presence of LS and IS representatives of major contractors when performing certain types of work. Inspection of contractors’ compliance with LS and IS requirements during work performance is carried out by both employees of the LS and IS Department and services that control construction and technical activities (supervision). In the instances of failure to comply with the labour, occupational and fire safety requirements, penalties are imposed by Uralkali which can include a termination of contract.
Control over major contractors’ compliance with labour, industrial and fire safety requirements is also exercised at the level of CEO of PJSC Uralkali. Therefore since 2019, regular working meetings have been held with the representatives of major contractors with the participation of the CEO.
In 2019, Uralkali continued to develop and improve operational control over compliance with the industrial safety requirements at its hazardous production facilities (HPF) and hydraulic structures (HS).
A Strategic Plan for Expert Examinations of Industrial Safety of Technical Devices, Buildings and Structures of Hazardous Production Facilities was developed and approved by the CEO in 2019. This plan is based on the list of technical devices, buildings and structures operated at hazardous production facilities as part of the Regulations on the Procedure for Organising and Conducting Expert Examinations of Industrial Safety of Technical Devices, Buildings and Structures of Hazardous Production Facilities at PJSC Uralkali. The document enables the Company to evaluate and plan the necessary expenses to perform industrial safety expert examinations. The estimate is based on the number of technical devices, buildings and structures (the safe operation period of which expires in the current year as well as within next 5–10 years).
In 2019, PJSC Uralkali updated the information on the number of technical devices, buildings and structures operated at its HPFs in order to conduct an industrial safety expert examination to extend the period of safe utilisation.
In 2019, the Western Urals Department of Rostechnadzor (the Federal Environmental, Industrial and Nuclear Supervision Service of Russia) carried out a scheduled field inspection of 10 hazardous production facilities of Uralkali, out of 74 total facilities. Following the results of the inspection, the Company agreed on an action plan on the industrial safety and implementation period for the 10 HPFs, which was approved by the regulator.
The Company has a total of 9 hydraulic structures (registered and in operation), 7 of which are slurry storage facilities and 2 are dams. Uralkali regularly performs a full range of analytical activities, monitors the hydraulic structures under the supervision of qualified experts who check the structures, their reliability and furthermore assess the possibility of further operation.
In 2019, the stability of dams of Berezniki-3 and Solikamsk-3 slurry storages was assessed to ensure safe operation of the hydraulic structures, and corresponding recommendations were issued for the safe operation of these facilities.
The monitoring of radiation safety at PJSC Uralkali is entrusted to the Department of Radiation Engineering and Safety, which is part of the LS and IS Management.
The operational radiation control programme, which was scheduled for 2019, has been implemented in full and involved an examination of 79 facilities by the Department’s employees. The results of the examination of samples of mineral raw materials, finished products and halite waste were timely delivered. During the year, more than 500 measurements were taken, and more than 190 protocols were issued.
In March 2019, the Radiation Technology and Safety Department participated in an inter-laboratory comparative examination of radiation control in residential, public and industrial buildings and structures in St. Petersburg. Based on the evaluation of the quality of results obtained by the Department during the tests, the qualifications of the Department’s personnel were confirmed. The organisers of the event commended Uralkali employees for their notably high level of professional training.
During 2019, the Department also went through the procedure of confirming the competency for compliance with the accreditation criteria approved by Order No. 326 of the Ministry of Economic Development (dated 30 May 2014) and the requirements of GOST R ISO / IEC 17025-2009 “General requirements for the competence of testing and calibration laboratories”.
The level of preparation and response to emergencies is regulated in detail by the Russian legislation. The Company has developed advance action plans in accordance with the legislative requirements for the localisation and immediate response to accidents at its hazardous production facilities and hydraulic structures.
In order to effectively coordinate the fire safety and emergency prevention activities, the Company has created the following commissions: the Commission on Prevention of and Response to Emergencies and Fire Safety chaired by the CEO of PJSC Uralkali, the Commission on Enhanced Operation Sustainability, and the Flood Control Commission.
No fires or emergencies occurred at the Company’s facilities in 2019. One fire was recorded in a temporary facility of a contractor’s organisation for construction and installation works. The facility was located on the Solikamsk-1 surface site. The number of fires not subject to state registration by the Ministry of Emergency Situations of the Russian Federation at the surface complex increased by 75%, from 8 cases in 2018 to 14 cases in 2019.
In order to ensure strict adherence to the forest legislation, Uralkali carried out works to comply with the fire safety requirements in leased forest areas. The Company constructed and maintained two warehouses of fire-fighting equipment to extinguish any possible forest fires. Moreover, the Company carried out ploughing of leased forest areas adjacent to the forests and also installed fire safety banners.
During the reporting period, scheduled and preventative maintenance took place at more than 1,000 automatic fire alarm units and systems, warning and evacuation control systems, automatic fire extinguishing systems and emergency alarm systems to ensure fire safety of surface complex facilities.
In order to improve the fire protection of employees and property, the phased implementation of round-the-clock monitoring of automatic fire alarm systems and fire extinguishing systems at the Company’s surface complex facilities was conducted in 2019, which makes it possible to promptly respond to any possible malfunctions in the operation of fire alarms and extinguishing systems through the monitoring centre.
Local Warning Systems (LWS) have been developed for the Company’s hazardous hydraulic facilities to inform residents who may potentially be in danger of any possible slurry flooding. A new local alarm system was installed during the period. Currently, LWS of Berezniki-4 slurry storage has been launched in a pilot mode.
Safety management systems were installed in subsurface areas of the underground mines, which immediately notify mine workers during emergencies. Furthermore, the location tracking and human search systems in underground mines have undergone continuous improvement, which facilitate live location identification of an employee in an active mine.
Necessary measures were taken to prevent accidental spills of oil and oil products. Comprehensive targeted inspections of oil and oil products storage sites are carried out on annual basis at all of Uralkali’s sites. Emergency oil and oil products spill response procedures for fuel and lubricants storage sites are adjusted at least once every 5 years.
Work on maintaining readiness of civil defence structures to serve their purpose continued. In 2019, the necessary measures were taken to improve their protective properties.
Voluntary (external) emergency rescue units have been established at all of Uralkali’s mines — mine rescue crews (MRCs) comprised of the employees working underground, and voluntary (external) units comprised of the employees working at the surface complex (non-professional emergency response teams). The Company enters into contractual agreements with professional emergency rescue services and organisations on an annual basis (mine and gas rescue operations, and fire protection).
Ensuring all our employees are aware of the latest labour, industrial and fire safety requirements, as well as developing a culture of compliance, plays a vital role in mitigating safety risk.
Prior to commencing any work at our production facilities, all our employees complete the necessary training programme. Uralkali’s management teams, including mine foremen and supervisors, hold the responsibility of ensuring workplace safety as well as monitoring employee compliance with strict safety requirements.
Furthermore, it is also mandatory for all Uralkali contractors to complete the additional safety training, ensuring they familiarise themselves with the features of the Company’s technological and production processes. As such, all contractors complete an introductory briefing prior to entering the area of the Company’s facilities where the works are planned, and are given additional training prior to commencing contractual works.
The Company regularly arranges training in the relevant areas of labour and industrial safety. Moreover, as a result of injury risk assessment, additional training for the highest risk areas identified is also provided. As a result of the assessment, falling from height was identified as one of the significant risks to employee safety. In 2019, Uralkali launched a training facility at Berezniki-3, in order to develop practical skills for performing works at heights safely. The Company involved specialists from the Corporate University as part of the training programme.
During the year, Uralkali conducted necessary training for both its employees and contractors in the area of potential accident and emergency response, as well as training involving members of mine rescue crews and voluntary emergency response teams.
In 2019, the Company held the WorldSkills Corporate Championship, attended by chemistry laboratory technicians and the Labour and Industrial Safety Department's employees.
We are a company driven by a belief that our employees are our most valuable asset, comprising a team of highly qualified and motivated people. To keep them engaged, the Company offers competitive salaries as well as one of the most attractive benefit packages in the industry. Uralkali pays significant attention to various stakeholder engagement in the development of labour practices and implements various HR projects aimed at attracting, retaining, training and encouraging its employees and future young professionals.
The main region where Uralkali operates — Verkhnekamsky — is rich in various natural resources. This factor forms the specifics of the local labour market and increases the demand for workers and technical engineers. Uralkali makes great efforts to increase the prestige of these professions and improve the standard of living of the specialists in the region.
Irina Konstantinova
Human Resources Director
The HR Directorate is the main division responsible for human capital management at the Company. The Directorate is comprised of five departments that oversee specific issues in the field of:
In Uralkali, a hierarchical structure of guidance documents has been built at the strategic and operational levels. As the Company develops and grows, it updates its set of internal guidance documents accordingly. As such, in 2019 the following documents were developed:
The shortage of qualified personnel is one of the main risk factors that can significantly affect the Company’s operations. In 2019, Uralkali implemented a number of risk mitigation measures that enabled a reduction in the risk level from high to medium.
The Crystal Pyramid Award is given each year to companies and individual projects which make a significant contribution to the development of human capital management practices. In 2019, Uralkali was named the winner in three categories at once: HR Manager of the Year, Corporate University of the Year, and the new Corporate Social Responsibility category. The award ceremony took place at the 20th HR Directors of Russia and CIS Summit.
The number of Uralkali employees grew by 0.62% to 20,382 people in the reporting year. Over 96% of employees work in the Perm Region, with approximately 0.38% working in the Moscow representative office.
Currently men represent about 69% of our workforce, while female representation amongst our employees amounts to 31%. This is due to the Russian legislative limitations, whereby the Russian labour law restricts females from performing hazardous industrial work.
The age composition of our workforce remained broadly unchanged from the prior year. Significant changes were observed only in the 60+ category where the proportion of employees increased by 10% on a year-over-year basis.
The staff turnover rate declined in 2019 from the year before and amounted to 8.65%.
Uralkali pays considerable attention to the financial motivation of its employees as one of the key components of the Company’s HR strategy. The remuneration system in Uralkali is transparent, fair, uniform for all categories of employees and strictly prohibits any form of discrimination. Employee salaries may vary only due to different degrees of complexity and the required qualification for the work performed.
The Company pays remuneration to all categories of employees at a competitive level, taking into account the contribution of each employee and encouraging skill development and efficiency. Uralkali annually adjusts salaries in compliance with the collective agreement. The size of the indexation of tariff rates and salary adjustment is determined by the results of the labour market analysis and the consumer price index for all goods and services. In 2019, employee compensation increased by 3% year-on-year and amounted to USD 13,179 per annum on average1.
The Company has introduced a grading system that covers all employees of Uralkali. KPIs are set for each level of position to ensure the correlation between the performance and remuneration. The grading and KPI system makes it possible to objectively assess the workers’ efficiency. Furthermore, the Company rewards its divisions and employees, who, all things being equal, achieve better operational results.
In order to maintain a high level of personnel engagement, the Company has adopted a number of corporate awards which are given to the best employees on an annual basis. All these awards, including those given in combination with material incentives, contribute to maintaining advanced corporate culture based on the attention paid by the management to achievements and successes of Uralkali’s divisions and employees.
In 2019, a total of 1,608 persons were awarded, persons:
|
Honoured Potash Industry Worker |
25 |
| Photo on the division's Wall of Honour | 132 |
| The division's Letter of Honour | 512 |
| Letter of Acknowledgement in honour of the jubilee | 596 |
| Memorable pins and letters of acknowledgement for Company employees working for 25, 35 and 45 years | 320 |
| The Best Foremen of enriching plants and loading and unloading facilities, as well as The Best Plant (team of Solikamsk-3 sylvinite processing plant), and The Best Loading Facilities (team of the cargo-handling operations station of Berezniki-2) timed to Chemist's Day | 13 |
| The Best Supervisors and The Best Mining Experts of Uralkali mines, as well as The Best Mine (team of Berezniki-2 mine) timed to Miner's Day | 10 |
New awards were created in 2019 based on performance: The Best Mine Management, The Best Directorate, and The Best Subsidiary. These were awarded to Solikamsk-3, the Economics and Finance Directorate, and Avtotranskali LLC respectively.
The Person of the Year contest holds a very special place at Uralkali. It is an open competition for all Company employees, whereby the winner is selected by a general vote, which every employee of the Group can take part in.
A high level of expertise is one of the Company’s key priorities in the field of human capital management. Uralkali offers a wide range of opportunities for career development. The Company’s HR Policy is aimed at creating the right conditions to help our employees thrive and boost their performance by means of professional and personal development. Our employees have every opportunity to further develop their skills in Russia’s leading training centres, participate in a variety of cross-functional projects, learn new specialties, develop the level of professional and managerial competencies at Uralkali’s Corporate University.
Uralkali is actively developing its Corporate University which provides an opportunity for professional development through a wide range of training programmes. The list of programmes is updated and expanded on an annual basis. The University has an online education platform, where each employee can take the necessary courses in their own time. The main areas of study are as follows:
Currently, the Corporate University’s attendees include not only the employees of Uralkali and its subsidiaries, but also external students such as representatives of other organisations.
online courses
personal development trainings
employee training and retraining programmes
professional development programmes
In 2019, 11,331 employees were trained or retrained in various areas of Uralkali’s operations. The number of training hours per employee reached 78.2 manhours.
In 2019, the WorldSkills Uralkali corporate championship of professions and competencies was held for the first time and covered two areas of expertise: laboratory chemical analysis, and industrial safety.
To ensure personnel continuity and prepare managers, the Company carries out the centralised formation and improvement of managerial personnel reserve.
Uralkali is highly interested in attracting young professionals to the industry and therefore proactively engages with students of vocational and higher education institutions, as well as organises targeted recruitment programmes for school graduates of sought-after specialisations.
As part of social partnership agreements, the Company contributes to the improvement and development of the material and technical base of the following educational institutions:
Since 2015, the Company has contributed over RUB 64 million to promote the development of these institutions.
Moreover, Uralkali actively participates in various career fairs to educate students about the Company and its activities, and to provide advice to graduates, students of vocational and higher education institutions on industry specifics, career prospects as well as benefits of the social package offered by Uralkali.
Since 2006, Uralkali has been providing scholarships to students within the framework of its cooperation agreement with the Perm National Research Polytechnic University (PNRPU) and its subsidiary in Berezniki. The scholarship amounts to RUB 3,000 and is paid at the end of each term. The main criteria for selecting the candidate are: strong academic performance, scientific research related to the areas of Uralkali activities, successful work experience, and participation in social university activities.
In 2019, Uralkali provided scholarships to those students who were receiving training in the sought-after professions: Production Machines and Equipment, Industrial Chemistry, Physical Mining Processes, Mine Surveying,
Underground Development of Ore Deposits, Electrification and Automation of Mining Operations, Mining Machines and Equipment, Electrical Engineering, and Power Supply.
Moreover, Uralkali provides support to the students of Berezniki Polytechnic and Solikamsk Mining and Chemical Colleges, with RUB 2,000 scholarship paid each month.
Scholarships are an integral element of supporting talented and motivated students who are always welcome in Uralkali. Uralkali has created a highly favourable environment for career growth, personal and professional development of graduates who have received training in the areas that are in demand by the Company.
Since 2006, the Company has conducted targeted recruitment programmes for school graduates. To date, 60 people have concluded employer-sponsored education contracts and are being trained in PNRPU, its subsidiary in Berezniki, and in Saint Petersburg Mining University.
The Company has a collective agreement in place for the period of 2018–2020. The collective agreement guarantees Uralkali employees the availability of one of the most attractive social packages in the industry. It includes medical care and recreation, compensation of food, improvement of housing conditions by settlement of mortgage interest rates, free shuttle service, organisation and payment of summer recreation for children of employees, financial support to veterans, arrangement of cultural, sports, health, and fitness work, and financial support in difficult circumstances. Moreover, as a socially responsible employer, Uralkali is developing housing construction for the benefit of its employees. According to the employee engagement survey, the social benefit satisfaction index across Uralkali Group is higher than the industry average.
The Company also cares for its retired employees. In accordance with the Kindness and Care Programme, Uralkali supports the activities of a public organisation of potash industry veterans in Berezniki and Solikamsk. The veterans actively share their experience with the younger generation and promote patriotism. In 2019, the Company allocated USD 1,185.9 thousand to support the Veterans Council, of which USD 180.7 thousand were allocated to sanatorium-resort treatment of veterans.
The Company is also actively developing a volunteer movement. Its representatives host charity events and events in nursing homes and orphanages, in children’s hospitals, shelters for stray animals, for children from low-income families, environmental clean-ups and competitions, and support federal, regional and city projects. In 2019, Company employees held and participated in over 40 different volunteer events and campaigns.
The system of internal and external communication ensures that Uralkali employees receive timely and complete information on all key issues, which allows the teams to achieve better performance.
Uralkali’s corporate culture in terms of internal communication and informational transparency implies that any employee can come up with a proposal, question or an idea which will be considered. In order to facilitate this, the Company has established a call centre which aggregates inquiries from all stakeholders. Representatives of the working teams and veterans can discuss the most relevant issues with the CEO at annual informative meetings.
In addition, the Institute of Ethical Commissioners established at Uralkali works hard to reduce the risk of conflicts and violations, which also helps maintain a healthy mental well-being of employees.
Uralkali is one of the largest employers in the Perm Region and contributes significantly to the economic development of the cities where it operates, running important social projects and initiatives to enhance life for people in the regions. In line with its social investment policy, in 2019 Uralkali continued to invest in the sustainable development of the regions where the Company has a presence, with its total social investments amounting to approximately RUB 1,795 million.
The Company provides stable employment and fulfils its tax obligations, as well as contributing to creating a comfortable living environment in Berezniki and Solikamsk where the Company’s production facilities are located. In addition, Uralkali sponsors social events and runs charity projects in areas including education, healthcare, culture and sports.
As a major employer in the region where it operates, the Company plays an active role in solving pressing social issues to support a high standard of living for its employees and their families, and the social stability of the region.
Uralkali aims to establish and maintain mutually beneficial relationships with federal and local authorities based on the principles of accountability, good faith and common interests.
The Company cooperates with local authorities through partnership agreements, to ensure that its investment in key socio-economic development projects has a long-lasting positive impact.
In selecting social projects, the Company considers its own strategic priorities, carries out a systematic analysis of stakeholder expectations and takes into account all best practices in terms of charity and sponsorship. The main document governing Uralkali’s approach to external social policy is the Charity Regulations.
Uralkali’s Department of Cooperation with Authorities, Department of Public Relations, and Personnel Directorate are responsible for communications with the local communities in the regions where the Company operates. The objectives related to ensuring social stability in the territories of the Company’s operation are reflected in its employees’ KPIs, which also imply a contribution to social projects and initiatives.
The Company strives to build open and trusting relationships with the residents and, to this end, uses various feedback mechanisms, including a hotline where calls are registered and processed. Furthermore, Uralkali regularly holds meetings with community representatives to discuss economic, environmental and social initiatives. The Company also organises hearings on environmental, urban planning and other issues.
A major communication channel with the local communities is the corporate newspaper RU.DA, which marked its 90th anniversary in the reporting year. The newspaper was awarded with a letter of appreciation from the Russian Union of Journalists, the Perm regional organisation, for the effective partnership in the field of communication support of social projects related to Verkhnekamsky district development.
One of the key components of Uralkali’s social activity is the implementation of programmes to develop physical training and sports along with supporting a healthy lifestyle for local residents in the regions where the Company is present.
For six consecutive years, the Company has been running a children’s basketball project in Berezniki and Solikamsk. In 2019, this project supported 26 basketball centres training 1,600 children. Local streetball championships were arranged, with 117 teams taking part. In the 2018–2019 season, over 1,300 primary students participated in the Kali-Basket Junior school basketball league in Berezniki and Solikamsk.
16 teams of young basketball players were formed during the year. As part of the project, these players participate in international, national and regional competitions, as well as in the Russian Basketball Championship. In 2019, the young basketball players took part in 55 national and regional tournaments, and won 57 trophies (1–3 places). A boys’ team of 14–15 year-olds took 4th place in the finals of the Russian Basketball Championship. Under-16, under-15, under-14 and under-13 teams won gold and silver in the finals of the Regional Basketball Championship, securing their participation in the interregional stage of the National Championship. An under-15 boys’ team was also invited to participate in the European Junior Basketball League.
In the summer, 127 children visited a sports training camp organised in the town of Zarechny in the Penza Region, and 113 young basketball players attended day camps at Berezniki and Solikamsk. The project employs 25 coaches, many of them coming from Russia’s and Serbia’s leading basketball clubs.
The Company continues to provide support for the Solikamsk Kickboxing Federation. In 2019, Solikamsk kickboxers won 13 awards at international championships, including four gold medals. Solikamsk Federation members won 11 awards, including 3 gold medals, at various national championships, and 34 awards, including 13 gold medals, at interregional tournaments.
Uralkali’s organisational and financial support also made the Volga Federal District classic wrestling championship in Solikamsk possible this year, for boys aged 16–18. Students from the local wrestling school won several awards.
Uralkali supported the district level junior hockey tournament in Solikamsk, where the Solikamsk boys’ team took third place. The Solikamsk adult hockey team won the Perm regional championship and was also sponsored by the Company.
In 2019, support was provided to the Solikamsk judo, boxing and arm-wrestling federations, and the Perm Region’s swimming federation.
Every year, the Company helps organise major sports festivals. As usual this year, this included the Stroganov Mile Russian snowkiting championship and the Stroganov Regatta sailing competitions in the Kama River near the historical and architectural complex of Usolye-Stroganovskoe.
Major sporting events of 2019 included the 40th anniversary of the skiing festival in memory of S.I. Krylov, attended by 350 fans in the Perm Region, and the launch of a sports complex in Berezniki.
In 2019, Berezniki Arena Sport, a 3,152 sq. m modern sports complex, was officially opened on Town Day. It was built with the Company’s charity funds. The first ice rink in the history of the town can accommodate around 50 sportspeople and 300 spectators. It also has a gym, a medical station, utility rooms, skate hire and parking areas. This new complex has given the region’s residents year-round access to ice skating, hockey and figure skating classes for children, as well as sporting and public events and competitions.
The teams of young hockey players from Solikamsk and Aleksandrovsk were the first to compete there; in September, tryouts began for sports clubs and schools. By implementing these projects, the Company contributes to promoting sports activities in local communities and developing of winter sports.
Uralkali invests in educational and cultural programmes to support social development for residents of the region where the Company operates, and the young generation in particular.
As usual this year, the Company supported the commemorative events held to mark International Workers’ Day and Victory Day in Solikamsk. Uralkali also provided funding for a youth festival dedicated to the Year of Theatre for students of professional educational institutions in Solikamsk.
Traditionally, with Uralkali’s support, the Usolye-Stroganovskoye historical and architectural complex hosted the XIV International Festival of Bells and Spiritual Music of Russia. It is a bright and eventful project dedicated to the past and present of Prikamye.
Uralkali was the main sponsor of Berezniki Town Day, and Solikamsk Town Day which was once again celebrated at the same time as Miner’s Day.
For several years, Uralkali has been sponsoring the New Year celebrations in Solikamsk. With the Company’s support, an ice town, which becomes the heart of the town during the New Year holidays, is built every year on Voskresenskaya Square. Three framing slides and a 15-metre artificial Christmas tree were installed in the past years. In 2019, the New Year’s ice town was decorated with lighting and a lit-up Reindeer and Sleigh.
The Museum of the History of Salt is located in the Ust-Borovsky salt plant which was closed down in 1972. The plant was recognised as the only Russian salt enterprise of the XIX century, and has preserved the history of the development of salt production over many centuries. The museum was established to present this rich history and preserve the plant’s facilities.
The Russian Museum of the History of Salt, which is a branch of the town museum of local history, opened its doors to visitors in 1986. Some years later the museum buildings and exhibits suffered serious damage from fires. Thanks to Uralkali’s ongoing support, the museum’s most important items were repaired and restored — the Aleksandrovskaya brine tower and the first floor of the salt plant office. In 2019, Uralkali allocated funds for the installation of an arts and crafts fence in the museum complex.
In 2019, the Company launched a medicine support programme to attract experienced staff to the towns where it operates.
In 2019, Uralkali launched a programme to support medicine in the towns where it operates. One of the programme’s objectives is to purchase modern medical equipment for medical institutions. The Company bought two Lada Largus Standard for Solikamsk children’s hospital, which will be used for emergency patient transportation and house calls.
During the year, medical equipment was purchased for the Regional Hospital named after E.A. Vagner in Berezniki, for priority areas (surgery, palliative care, urology and other).
In addition, the Company purchased furniture for the reception and TV equipment for displaying information about reception hours for a children’s clinic, which is part of the Regional Hospital named after E.A. Vagner in Berezniki. Thanks to Uralkali, the clinic has been able to create children’s play areas that they can enjoy while waiting for appointments, equipped with drawing easels for art work.
Uralkali contributes considerably to creating high living standards in the Perm Region for its employees, their families and the local community as a whole. Thanks to the Company’s support, 50 new climbing frames were installed in five Berezniki kindergartens. The climbing frames meet all modern quality and safety requirements.
The Company engaged local residents in several projects to protect the environment in the cities where Uralkali has a presence. These included a clean-up day in the Ogurdinsky pine wood, with participation from the Company’s CEO and representatives of local authorities and public organisations, where 6 tonnes of waste were removed. Uralkali also supported the Long Live the Forest [Zhivi, Les] campaign, and planted trees in the centre of Solikamsk.
During the year, Uralkali provided assistance to municipalities in addressing issues of local importance. To improve work with the population in rural areas of the former Solikamsk district, next to the town of Solikamsk district, the Company donated three new Chevrolet Niva cars to the Kasibsko-Basimskiy, Tokhtuevskiy and Tyulkinskiy territorial departments.
As part of cooperation with the Svetly territorial public self-governance body, Uralkali co-financed the School Road project in the third residential district of potash workers in Solikamsk. There is now a paved path to the educational institutions, making it more convenient for local residents.
Uralkali gave financial support to the My Courtyard Is the Most Beautiful town flower gardens contest organised at the initiative of members of the Berezniki and Solikamsk Town Duma. Over 200 people participated in the contest; more than 100 flower beds and flower gardens were developed.
Uralkali is running a large-scale housing development project to construct residential buildings for its employees in Berezniki and Solikamsk, with a total of 275 apartments. The surrounding grounds will include recreation areas for children and adults, sports grounds, bicycle storage and parking.
The second stage of residential buildings construction in Berezniki and Solikamsk was launched in the reporting period. Four more buildings with 455 apartments are to be constructed for Company employees.
The Company continues to participate actively in financing the construction of housing and infrastructure of the new Lyubimov residential district on the right bank of Berezniki in order to create appealing and safe living conditions in the territory where the Company operates. The Ministry of Construction of the Perm Region is implementing the programme. Uralkali, in turn, fulfils its obligations to partially finance the resettlement of citizens in full and on time.
Uralkali cooperates with public and charitable foundations to support vulnerable groups in society. Charity activities are carried based on relevant appeals from local citizens or at the Company’s own initiative. In 2019, the Company teamed up with the following organisations:
In addition, in 2019, the construction of the Nikolsky Church — one of the largest churches in the Perm Region — continued with financial support from Uralkali. Public and religious organisations contribute significantly to the social development of the territories where the Company operates.
We recognise that the sustainable development and future successes of our company rely on maintaining transparent relationships with our stakeholders, based on mutual trust and respect.
Uralkali adheres to the leading international standards of stakeholder engagement, and its approach is balanced to support the interests of the Company and all of its stakeholders: customers and partners, shareholders and the investment community, employees, trade unions, local authorities and communities, as well as the media and general public.
The Company reviews and updates its list of key stakeholders and its system of interaction with them on a regular basis, to ensure it is achieving the most effective communication with these groups.
| Significance | Stakeholder interests and expectations | Areas of activity in 2019 |
|---|---|---|
| Customers and partners | ||
|
Effective interaction with our customers and partners directly affects the sustainability of the Company’s operations and its financial performance, and therefore the achievement of strategic goals and objectives. |
Customers
|
|
| Shareholders and investment community | ||
|
During the year, Uralkali has been both a publicly listed and a non-listed company. We disclose our performance results, thereby helping the investment community take informed decisions which support the Company’s ability to maintain its financial performance, develop sustainably and maintain best international business practices. |
|
|
| Employees | ||
|
Employees are core to the Company’s success. Uralkali values their knowledge, experience and commitment to delivering results. In order to keep employees engaged and result-oriented, the Company runs a number of programmes, including educational and healthcare programmes and those aimed at improving living conditions (including housing construction). By creating a good work and living environment, the Company ensures the prosperity of both its employees and the business as a whole. |
|
|
| Trade unions | ||
|
Positive interaction with trade unions enables the Company to better understand the interests of its employees and speeds up its process of adopting and complying with new labour standards and practices. |
|
|
| Government and local authorities | ||
|
Uralkali is compliant with Russian and international legal requirements and industry standards. The Company aims to maintain constructive working relationships with federal and local authorities, based on the principles of responsibility, good faith and mutual interests. |
|
|
| Local communities | ||
|
Uralkali is a socially responsible company. In partnership with regional authorities, it works to maintain ecosystems and the natural environment, and runs social and cultural projects and other programmes that support local communities and the development of its regions of presence. |
|
|
| Media and the general public | ||
|
It is important that Uralkali’s stakeholders should have a full understanding of the Company. Uralkali holds dialogue with leading international and Russian business media, which makes it possible to inform both local communities and other stakeholders about internal and external events and social activities, raise awareness about the Company, and nurture and strengthen its positive reputation and mutual trust |
|
|