25.02.2022

Metafrax Group plans to implement new standards of the ESG area

The working group of Metafrax Chemicals on the implementation of the ESG principles held its first meeting in videoconference mode.

The participants of the meeting discussed the implementation of internationally recognized standards related to ESG area.

The Head of the Working Group, director of legal affairs, Mr. Simon Vikhnin informed, that upon the results of discussions the member of working group came to the common opinion, that the implementation of standards should begin from Metafrax Chemicals.

- The largest enterprise of the Group has accumulated the most significant experience in this area. The Company applies the ISO 9001 standard, the quality management system is established. The question on the implementation of standards by other companies will be reviewed later on, - explained Mr. Simon Vikhnin.

The participants of the discussion reviewed a number of other standards related to the ESG areas and discussed the feasibility of implementing the following standards in the company's activities as soon as possible:

ISO 14001:2015. Environmental management systems — Requirements with guidance for use. This standard aims to prevent environmental impacts by improving internal processes and increasing the extent of environmental responsibility;

ISO 45001:2018. Occupational safety and health management systems. Requirements and guidance for use. This standard is used to establish a more effective health and safety management system by means of continuous identification of risks, their analysis and prevention;

ISO 26000. Social responsibility. The standard aims to improve the enterprise's contribution to sustainable development.

The implementation process of standards, according to preliminary estimates, may require up to one and a half years.

- The mission of Metafrax Group is to follow the path of constant development, creating a favorable ecosystem around itself for future generation. The implementation of new ESG standards, which provide a vector for reducing environmental impact, increasing labor safety and further strengthening the social responsibility of the enterprise, will allow us to make our business even more progressive, efficient and reliable, - highlighted Mr. Simon Vikhnin.

The participants of the discussion also considered the use and impact of ESG ratings on the activities of Metafrax Group, studied the most popular ESG ratings and the advantages of their implementation:

▪ RAEX-Europe. This is one of the most highly respected ratings in Europe with a clear and accessible assessment methodology, the Metafrax Chemicals PJSC is already included in this rating;

▪ АК&М. Includes a scorecard in key ESG areas: carbon footprint reduction, reporting, social responsibility, etc.

It is planned that the next meeting of the collegial body will be held in March 2022. The working group for the implementation of the ESG principles was established by the decision of the Board of Directors of Metafrax Chemicals, at the beginning of 2022. It includes top managers of Metafrax Chemicals, Metadynea, Metafrax Engineering and Technology Center and trading companies of the Group, representatives of legal and financial departments, production, corporate governance, communications, HR, GR and environmental protection.

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The Companies of Metafrax Group have big experience in implementing of the ESG philosophy in their work, including in the field of ecology. One striking example of this is the integration of the Ammonia-Urea-Melamine (AUM) Complex with the methanol plant. Thanks to this solution, that was recognized by experts as environmentally reasonable and resource-saving, carbon dioxide, a by-product of methanol production, will be used in the production of urea. This will significantly reduce the CO2 emissions at Metafrax Chemicals. Carbon dioxide (dioxide carbon) is a colorless gas and one of the causes of global warming, so the less it enters into atmosphere, the better.

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