GRI, SASB metrics
SASB FB-AG-110a.1 SASB FB-AG-140a.1.1
CONTRIBUTION TO THE UN SDGs
Environmental management systemGRI 102-11 GRI 103-2
Rusagro's production activities have an impact on various components of the environment. The measures taken by the Company to alleviate its negative environmental impact are aimed at complying with Russian laws, introducing best related practices and continuously seeking ways to optimise production processes.
The Company's main environmental goals are to save all kinds of resources, reduce the amount of waste, discharges and emissions generated, reuse raw materials and materials and switch to a circular economy.
Rusagro is guided by the following environmental principles:
- compliance with legal and regulatory requirements and standards;
- consistency in addressing environmental security;
- prevention of adverse effects on people and the environment;
- full disclosure on environmental protection and environmental safety activities.
Environmental management system
Governance structure and environmental protection regulationsGRI 103-2
Environmental management involves all levels of the Company. Operational management is handled by environmental specialists under the supervision of line managers and site directors.
Senior management's key performance indicators (KPIs) at some production areas take into account the effectiveness of environment protection activities as to their compliance with legal requirements to minimise the amount of potential fines.
KPIs are also set for Rusagro's line employees: for example, for environmental specialists in relation to the amount of resources used and waste generated, the number of violations and relevant corrective actions.
The environmental goals are accomplished through the development strategy of business segments. The Oil and Fats Business has an Environmental Policy in place in exemplification of the best practice adopted. Detailed requirements for environmental management are contained in the Company's
Environmental compliance controlsGRI 103-2
An essential element of the environmental management system is regular industrial environmental monitoring and internal audits, the results of which are used to prepare corrective action plans and to appoint responsible parties.
Contractors are also subject to in-process monitoring of compliance with environmental protection rules, in particular for Regulations on Tender Procedures and Regulations on Safe Works Performance by Contractors at the Customer's Site that each Business Segment has in place.
The environmental management system at some of Rusagro's enterprises also includes internal environmental audits as an additional tool for verifying compliance with environmental regulations to assess the current state of the management system.
Environmental training and development of employeesGRI 103-2
Rusagro is constantly working towards improving the skills of its environmental team by giving them trainings on highly specialised issues relating to particular environmental aspects. Employees of the Company's environmental services also regularly participate in professional community meetings, round tables and conferences to exchange experience and to shape agenda on current environmental issues, as well as join in Company-hosted training events aimed to develop the environmental safety competencies, such as training in hazardous waste management. To promote a culture of caring attitude to resources and to prevent the environment contamination, Rusagro conducts special events, including waste paper and waste collection and cleaning of territories.
Environmental risk managementGRI 103-2
Environmental risks management builds on a regular review of production processes and related environmental aspects handled by Rusagro's environmental staff on a monthly basis and involves a risk management action plan to be drawn up and accomplished through industrial environmental control programmes.
The four-fold increase in the number of environmental improvement notices filed in 2021 compared to 2020 resulted from a larger number of planned inspections conducted by supervisory authorities. The increase in the total fines was not as significant and exceeded the previous reporting period base by 30%.
Sustainable agriculture as a contribution to the global Sustainable Development Goals
Rusagro recognises the responsibility and importance of its contribution to food security, quality and availability.
The Company's agricultural activities are governed by adaptive landscape cropping projects based on science-based principles, stipulating agrolandscape stability and soil fertility recovery achieved through planning optimal quantity and quality of agricultural products, taking into account the existing environmental and economic factors of the region, market demand, as well as available natural and production resources.
The key sustainable farming methods include:
- multi-cropping in the crop rotation system;
- use of cover (green manure) crops;
- mulching of the soil surface;
- application of mineral and organo-mineral fertilizers;
- satellite monitoring of the crops condition.
Rusagro's sustainable farming projects
Soil conservationGRI 103-1
Land resources are one of Rusagro's most important assets – the Agriculture Segment remains the Company's most profitable business.
Farming is a factor that affects soil and land resources the most, especially in terms of physical stress to soils and landscapes, soil fertility and chemical and biological impact.
Impacts on soil from other Rusagro's segments mainly include the operation of equipment and machinery, construction works on industrial sites, and area contamination with waste generated before the Company acquired the said areas.
Soil conservation approachGRI 103-2
There are two areas the soil conservation measures are focused on: first – sustainable agriculture practices described in "Sustainable Agriculture as a Contribution to the Global Sustainable Development Goals", and second – environmental safety initiatives.
The environmental safety measures cover the following areas:
- development of plans and instructions on the conduct of activities in compliance with soil conservation rules, including individual technical regulations on fertilizer utilisation;
- control over compliance with soil conservation regulations and regular monitoring of soil conditions at facility boundaries to assess the potential spread of pollution;
- in cases of pollution, development of disturbed land recultivation programmes, setting forth time frames and necessary resources to deliver a programme.
Prevention of soil pollution and disturbance
Planting and site cleanup are aimed to maintain soil health and prevent littering up.
In the reporting period, for example, areas adjacent to the pig farms of the Meat Business were subject to planting. Bedding more than 22 ths trees and shrubs is scheduled for 2022 to plant the filtration fields of the Chernyansky sugar plant around the perimeter, which will have a general sanitary and protective effect and lead to an annual absorption of greenhouse gases of at least 8.3 tonnes.
Climate change and impacts on the atmosphereGRI 305-7
The bulk of Rusagro's air emissions are generated by its boiler houses, which supply heat and power stations and heat production buildings and in the process emit greenhouse gases, nitrogen and sulphur oxides into the air.
A significant volume of emissions in Agriculture, Sugar and Oil and Fats Segments comes from particulate matter emissions generated during grain harvesting and sugar beet and sunflower seeds processing, whereas in the Meat Business, emissions are mainly represented by volatile organic compounds such as methane, carbon dioxide and ammonia.
The Sugar Business records the greatest amount of air emissions, accounting for almost half of the total volume (48%), while the Agriculture Segment enjoys the least figure in this area (9%).
An approach to managing climate impacts and air emissionsGRI 103-2
Emissions and climate impact management encompasses a number of important process-related and organisational aspects, such as energy resources and energy efficiency management system, emissions and effluents treatment methods, which are all related to impacts on air quality and the climate. Work is also underway to align the greenhouse gas (GHG) emissions calculation methodology with global best practices.
Below are the key initiatives towards the reduction of atmospheric emissions:
- optimising processes and upgrading production equipment;
- improving the efficiency of gas-cleaning and dust-trapping equipment;
- conducting regular industrial environmental monitoring.
2021 highlightsGRI 305-1 GRI 305-2 GRI 305-4
In 2021, the total greenhouse gas emissions (Scope 1 and Scope 2) amounted to 2,419 ths tonnes
The total volume of air emissions in the reporting year went up by 43% due to the expansion and increase in production capacity in the Meat Business, as well as the year-on-year extension of the agricultural season. The latter has a direct impact on air emissions in the Sugar and Agriculture Business Segments.
ENERGY MANAGEMENT AND ENERGY EFFICIENCYGRI 103-1
As Rusagro’s assets are mainly represented by industrial facilities, they consume significant amounts of energy resources, with the Sugar Business being the largest consumer, and the Agriculture Business – the smallest.
Natural gas is the main type of energy resources used by the Company, accounting for 71% of total energy consumption.
ENERGY MANAGEMENT SYSTEMGRI 103-2
Rusagro’s business segments have standards in place to ensure the activities are carried out in line with the energy management system requirements and regularly develop and review energy strategies to set energy management goals.
Measures to reduce energy usage and improve energy efficiency fall under the following focus areas:
- control and monitoring of energy consumption and technological processes, including through automation means;
- replacement of energy-intensive equipment with energy-saving equipment and transition to in-house power generation;
- repair and regular maintenance of equipment to improve energy efficiency.
2021 HIGHLIGHTSGRI 302-1
The total energy consumption increased by 4% in 2021, while the energy intensity indicators went down. For example, energy intensity per product made and per product sold to a third party dropped by 3% and 4% respectively in the reporting year, while energy intensity per consolidated revenue fell by 27%.
IMPACTS ON WATER RESOURCESGRI 103-1
Surface and ground water bodies are mainly exposed during water withdrawals and effluents discharge.
Most of the water is withdrawn from natural sources: surface water bodies (rivers) account for about 56% of the total water withdrawals, while groundwater – about 38%.
AN APPROACH TO MANAGING IMPACTS ON WATER RESOURCES
Rusagro works towards smaller exposure of water bodies and make each and every efforts to reduce withdrawals from water bodies and improve the quality of effluents discharged.
Measures to improve resource usage efficiency cover the following focus areas:
- introduction of water recycling systems and reuse of water, including treated effluents;
- automation of water consumption processes to control the withdrawals, consume water exactly as required and identify and repair leaks in a timely manner;
- audit and monitoring of water consumption, detection of water misuse.
Effluents discharge into surface water bodies takes place at the facilities of the Oil and–Sugar Business. The Sugar Business stopped using two discharge points as a result of the reduced water consumption. Effluents of the Meat and Agriculture Segments are only discharged to public utility services.
Measures to improve effluents quality cover the following focus areas:
- introduction of a system for recording and analysing incoming information on effluent quality;
- quality inspection of artesian groundwater;
- construction of new and update of existing local effluents treatment facilities at production sites.
2021 HIGHLIGHTSGRI 303-3 SASB FB-AG-140A.1.1
In the reporting year, Rusagro recorded the reduction in its total water withdrawals – to 21,513 ths cubic metres, down 16%
Despite an overall decrease in water consumption, there was a slight increase in discharge in 2021, amounting to 9,736 ths cubic metres, up 6%
The Sugar Business is the most water consuming segment of the Company (47% of the total volume) as it requires a significant amount of water to cool the equipment used in heat/mass transfer processes and to cover the needs of the beet processing and sugar production activities.
WASTE MANAGEMENTGRI 103-1
Waste management is an important environmental factor for Rusagro. The key issue here is not the type of waste (the bulk of which falls within
Hazardous wastes mainly include mercury lamps, lead batteries and waste oil products and are given to specialised contractors for further disposal.
APPROACH TO WASTE MANAGEMENTGRI 103-2
The aims of the Company’s waste management efforts are to minimise waste generation, align the production activities with waste management regulations, and to be in constant search for alternative uses of waste and reuse of materials and raw materials generated during such activities.
The waste management efforts cover the following focus areas:
- reuse of waste and circular economy principles implementation;
- records of waste generation and movement and enforcement of waste management regulations.
2021 HIGHLIGHTSGRI 306-3
Due to the certification of manure waste products (hazard class III) and lime defecate (hazard class V) as organic fertilisers and their delistment from the total waste balance, the 2021 year is characterised with a downfall in the total amount of waste generated – from 3,988 ths tonnes to 118 ths tonnes.
WASTE GENERATION BY WASTE HAZARD CLASS
|Waste hazard class||2017||2018||2019||2020||2021|
GRI 306-4 GRI 306-5
As the considerable amount of waste was eliminated from the total volume due to recertification of manure drains and lime defecate, the specific waste generation indicators also decreased accordingly.
WASTE MANAGEMENT BY WASTE HANDLING METHODS
|Waste handling methods||2019||2020||2021|
|Waste diverted from disposa, including:||106,435||37,729||70,295|
|Waste destruction, including:||25,033||22,163||32,591|