Our future

In 2022, we fully aligned our operations with Regulation (EC) 1907/2006 of the European Parliament and of the Council concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH Regulation). In accordance with its provisions in force since July 2022, chemical substances manufactured in or imported into the EU must be registered and evaluated for human and environmental safety. Manufacturers and importers of chemical substances are also required to provide information to users regarding the safe use of such substances, whether in unprocessed form or in mixtures (forming part of other products), by means of material safety data sheets.

The entire REACH Regulation entered into force on July 16th 2022, opening the single market on uniform conditions to, in addition to mineral fertilizers, fertilizing products which had not yet been covered by harmonised regulations: organic fertilizers, organic and mineral fertilizers, soil improvers, inhibitors, biostimulants, growing media and mixtures. In October 2022, a new consolidated version of the REACH Regulation was published, laying down requirements for EU fertilizing products containing inhibitors and for further processing of digestates. In addition, work is in progress on delegated acts with which the European Commission intends to supplement the REACH Regulation.

The Group complies with the new obligations set forth in Regulation (EU) 2019/1009 laying down rules on the making available on the market of EU fertilizing products. In 2022, it signed an agreement with Polskie Centrum Badań i Certyfikacji S.A. (PCBC) concerning conformity assessment of EU fertilizing products and supervision over the system ensuring quality of production at the Group companies engaged in the manufacture of fertilizers. PCBC is the Polish body authorised to assess the conformity of fertilizing products under Regulation (EU) 2019/1009. 

See what changes will be brought in by regulation 2019/1009 for manufacturers

Our approach to addressing challenges in the agricultural industry:

Current offer: 

• precise fertilizer application leveraging satellite technology and artificial intelligence,
• environmentally friendly fertilizers, 
• production of humic acids to support sustainable agriculture,
• Grounded in Knowledge soil research programme,
• provision of agronomic advice.

Future plans, as outlined in the 2030 Strategy, are to expand the product portfolio with the addition of:

• new liquid product formulas, containing, among other nutrients, potassium and microelements,
• granulated fertilizers with nitrification inhibitors and microelements, as well as mineral-organic fertilizers,
• calcium fertilizers,
• line of products to support organic farming,
• other new products, including soil conditioners, nitrification inhibitors,
• fertilizers with a beneficial microbial content.

The ongoing investments we have undertaken over the years have yielded positive outcomes, even as we acknowledge the considerable environmental challenges that still lie ahead. Our initiatives are aligned with the evolving regulatory landscape, as exemplified by the Fit for 55 agenda, forming part of the European Green Deal. We understand that our Group, along with the broader chemical industry in Europe, must navigate increasing regulatory pressures linked to climate change. The pressure on emissions reporting is also set to intensify. 

The Fit for 55 package of legislative reforms includes:

• changes in the Emissions Trading System (EU ETS),
• Effort Sharing Regulation,
• Renewable Energy Directive,
• Energy Efficiency Directive,
• new mechanism for adjusting prices at borders to take account of CO₂ emissions.

Our approach to addressing environmental challenges:

Current actions: 

• we reduce emissions,
• we measure and report our carbon footprint, 
• we help advance a circular economy.

Our plans, as outlined in the 2030 Strategy: 

• implement the Green Azoty project,
• diversify energy sources with a gradual shift away from coal toward greener alternatives, including renewables,
• leverage synergistic links between energy and chemical installations,
• reduce energy consumption per product unit, including 30% reduction in energy intensity of the SMR process by 2024,
• deploy new technical solutions, energy-efficient equipment and smart control techniques, 
• align energy installations with BAT conclusions. 

European Union raising its ambitions on climate action and energy transition

Key factors significantly impacting our operations in 2022 included Russia’s military invasion of Ukraine, which impeded the post-pandemic economic recovery. The ensuing energy crisis, particularly acute in Europe, intensified the volatility, instability, and unpredictability of the commodity market, notably in the case of natural gas. The global economic slowdown and contraction triggered a steep rise in inflation and interest rates, affecting demand in our operational markets. A decline in demand was seen starting from the second half of 2022. In response to the challenges and disturbances on the global energy market, the European Commission presented its REPowerEU plan for saving energy, producing energy from renewables and diversifying its supplies. As at the date of this report, the military conflict across our eastern border persisted, and the time of its resolution remained uncertain.

Our approach to addressing market challenges:

Current actions: 

• we have joined the discussion on the EU CBAM, which is putting a carbon price on certain goods imported from outside the European Union based on CO₂ emissions, 
• we enter into long-term contracts for the supply of energy commodities with reliable and proven suppliers.

Future plans, as outlined in the 2030 Strategy: 

• ensure the continuity and security of supplies based on our feedstock strategy,
• implement Green Azoty and a range of related strategic initiatives, including energy diversification and green energy projects.