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INTEGRATED REPORT 2016

Chairman of the CSR Committee Statement

Sir Robert Margetts
Senior Independent Director,
Chairman of CSR Committee

The key principles of sustainable development are still at the heart of Uralkali’s strategy. The Company is aware of the need for constant .interaction with all stakeholders, including shareholders, employees, consumers, service providers, industry experts and analysts, representatives of state and public organisations, mass media, as well as local communities.

As one of the largest employers and taxpayers of the Perm region, Uralkali fully understands the importance of social responsibility, occupational safety, stability and other key elements for the sustainable development of both the Company and the region where it operates. Much has been done in this area, much more needs to be done. It is important to understand that the results of this work can be seen only in several years and decades and an objective assessment of our activities can only be given by future generations.

Environmental protection and industrial safety

Uralkali, as a large industrial enterprise that relies on modern, high-quality and high-tech equipment, operates in strict compliance with the applicable legislation in the field of environmental protection, and efficiently and effectively uses the available natural resources. The Company’s main priority in this area is still efficient risk management, preventing or mitigating the associated risks. In 2016, the main areas of Uralkali’s activities were geological safety, energy efficiency, protection of air and water resources, and waste management.

Our top priority in the safe development of potash deposits is to ensure the geological safety of mining works in conjunction with comprehensive monitoring of the situation, both at operating and idle mines. Such activities are traditionally carried out by Company specialists in cooperation with the relevant international and local experts, as well as research institutions. Uralkali also works closely with regulatory authorities, providing them with full information on its activities and assisting in addressing emerging issues.

Occupational health and safety

Ensuring occupational health and safety at industrial facilities for such company as Uralkali is always among the most important activities of any company. I would like to emphasize that it is vital for the Company to maintain a balance between the most comfortable and favourable working conditions on one hand, and employee compliance with legislation and the employer’s requirements on the other.

Application of cardinal safety rules, as well as strict adherence to legislation, regulations and general principles for ensuring the safety of production staff helped the Company reduce the number of fatal accidents in 2016 to zero, as well as reduce LTIFR and LDR rates across the Group.

Interaction with local communities

The Company’s efforts aimed at continuous development and modernisation of production assets cannot be effective without the development and support of areas where it operates. Given that most Uralkali Group employees live in the Perm region, in Berezniki and Solikamsk, the social development of the region imposes additional responsibilities for improving the quality of life of people living in these cities. In 2016, we continued to finance projects aimed at social infrastructure development; strongly supported sports, culture and education; helped the local municipal authorities, public and religious organisations; and implemented a number of sponsorship projects and charitable initiatives. Our social investments amounted to US$5.7 million in 2016. For more information about the Company’s contribution to the development of the region where it operates in 2016, see see Our Communities.

Global food security

In the context of a growing world population and reduction of arable land availability, the problem of global food security remains significant. Mineral fertiliser producers traditionally make an important contribution to solving this problem, and Uralkali is no exception. While meeting domestic and foreign agricultural producers’ demand for potassium chloride, the Company continuously works to educate its target audience on how to efficiently apply potash fertilisers. The Company is engaged in a number of projects to improve crop yields both in export and domestic markets.

For my part, I would like to thank Uralkali’s Board of Directors, management and employees for their help and support in the development and introduction of the best global practices in social responsibility. We will continue our efforts to ensure the sustainable development of the Company and effective stakeholder engagement.

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