02 Environmental factors of sustainable development
03 Social factors of sustainable development

Statement by the CEO of Rusagro Group of Companies gri 102-7


Dear shareholders, colleagues and partners,

We are pleased to present Rusagro ESG Report (Sustainability Report) on our environmental protection, social responsibility and development of sustainable practices. The decision to publish the ESG report stems from our strong commitment to transparency and responsibility. This Report will enable the Company to share its sustainable development story with stakeholders: to reflect the results of its activities, to identify challenges and opportunities that arose for the Company in the reporting period, to describe achievements and plans for the development of the ESGESG (English Environmental, Social, Governance) – issues of ecology, social responsibility and corporate governance. agenda

Despite external challenges and the many complexities of 2021, Rusagro's team remained steadfast and determined and continued to deliver on its key objectives of supporting the country's food security. In response to the key challenges of today's world – global climate change, the need to transform linear business models into circular ones, providing a growing population with healthy food and developing human capital – the Company is actively integrating sustainability principles into all elements of the value chain.

Rusagro is intent on making a meaningful contribution to the UN Sustainable Development Goals and to the well-being of society. In 2021, Rusagro took an important step towards developing its ESG agenda: it began to develop a sustainability strategy aimed at the Company's long-term sustainable growth, creating more value for stakeholders and increasing the transparency of non-financial information about the Company's operations.

Protecting the environment

We bear responsibility for the impact of the Company's operations on the climate conditions and various components of the environment in the regions of presence, therefore in the process we are guided by the principles of a closed-cycle economy, which helps reduce the use of all types of resources, as well as the amount of waste, discharges and emissions generated, and try to reuse raw materials and supplies. The Company improves its management approach to environmental impact and implements impact mitigation measures required. Thus, in 2021 greenhouse gas emissions intensity per RUB 1 mn of consolidated revenue dropped by 29%, air emissions intensity — by 24% to 12.81 tonnes per RUB 1 mn of consolidated revenue, while energy intensity went down by 3% to 1.71 MJ per 1 ths tonnes of products made. With water management practices in place, water withdrawal reduced by 16% to 21,515 ths cubic metres and water consumption intensity went down by 22% to 2.05 cubic metres per tonne of products made.

Keeping employees safe

The well-being, safety and health of our employees are our key priorities. We continue improving occupational health and safety management system and making best efforts to enhance our employee safety culture. As a result, the lost time injury frequency rate (LTIFR) slashed out in the reporting period to 1.97 vs. 2.86 last year. Despite our contribution to a safe working environment, we deeply regret to report one work-related fatality that occurred in 2021. We run the relevant investigation process followed by a number of measures taken to make sure that conditions and circumstances that pose a threat to employee health and life do not arise in the future.

With a view to promote the well-being of employees and their families and to support their psycho-emotional and physical health, the Company expanded its flagship With Care for Everyone programme across all key Rusagro assets in 2021. Now, 4,751 employees are already under the constant supervision of an occupational therapist.

Helping to develop the regions of presence

Rusagro makes a significant contribution to the social and economic development of the regions within its footprint. The Company provides employment opportunities and makes timely tax payments. We treasure the identity of local inhabitants and works towards building long-term relationships with local communities based on mutual respect and trust. Our ongoing socially important initiatives in education, sport and culture, as well as charitable projects are meant to support and develop these communities. Social investment made by Company in 2021 totalled RUB 38.8 mn.

Promoting responsible business practices

As a culture of conscious consumption keeps on evolving and consumers grew more concerned about health and immunity support issues, we put a stronger emphasis on improving our product portfolio. Consumers trust Rusagro – the diets of millions of people in 50 countries around the world are based on the products of our Company’s make. To build on this trust and live up to stakeholder expectations, we integrate sustainability values into our systems and business processes, thereby improving product quality and safety.

We will keep on strengthening our dialogue with our stakeholders and working to become a driving force for economic and social growth in the regions of our presence.

Thank you to all Rusagro's employees and partners for contributing to our shared success and high performance, and we invite you to read the ESG report, which reflects our efforts and aspirations in promoting sustainable development.

Maxim Basov CEO of LLC Rusagro Group of Companies until 31 December 2021, Chairman of the Board of Directors since 10 March 2022