PhosAgro has secured the top spot in the latest ESG ranking by independent agency RAEX, which evaluates companies for their leadership in environmental, social, and governance (ESG) practices. Since 2018, RAEX has been ranking companies based on a comprehensive analysis of their ESG risk management and opportunities. The latest ranking, the first to utilize RAEX’s updated methodology, includes 80 companies from Russia and neighboring regions that demonstrate leading ESG performance.
PhosAgro not only achieved the highest overall ESG score but also ranked first in social impact.
RAEX’s new methodology, updated in October 2024, emphasizes the specific operational characteristics of companies and incorporates industry-specific ESG metrics into its assessments. Stricter entry requirements were also introduced, ensuring that companies must meet minimum ESG data disclosure standards, moving beyond mere declarations of sustainability commitment.
PhosAgro’s overall ESG rating was upgraded from AA to AAA, marking it the first company to receive RAEX’s highest rating. The company earned AAA ratings for both social and governance categories, and an AA rating for its environmental performance, achieving a total score of 90.79 out of 100. As RAEX highlighted, “The company’s management of ESG risks and opportunities is exemplary.”
RAEX commended PhosAgro’s initiatives in water management and environmental policies, which have enabled the company to meet its environmental targets and improve on key performance indicators. In terms of social impact, RAEX praised PhosAgro for enhancing employee social programs, expanding benefits, and significantly investing in community needs, philanthropy, and regional infrastructure. In governance, PhosAgro was recognized for its robust financial and non-financial reporting, which is independently verified, as well as its strong information security and data confidentiality policies.
RAEX CEO Dmitry Grishankov acknowledged PhosAgro’s impressive performance, stating: “Our sustainability research shows that mining and metals companies, followed by chemical companies, scored highest in our ESG rankings. PhosAgro, which operates in both sectors, led our October ranking – the first under our new methodology. We paid special attention to the company’s strong social policies, which contributed to its top ranking. Notably, PhosAgro has demonstrated year-on-year progress. Its AAA rating is evidence of its continued momentum, which we greatly value.”
PhosAgro CEO Mikhail Rybnikov expressed gratitude to RAEX’s experts, noting: “Being ranked as the top ESG performer and achieving the highest possible score reinforces our dedication to sustainability. For years, we have integrated best available technologies and maintained high standards of corporate governance. Our focus on employee welfare and the well-being of communities has driven our growth since our inception, particularly in health and safety. We are continuously improving our governance and expanding our social and charitable initiatives, having allocated over RUB 25 billion for these efforts in 2022-2023 alone.”
