Arab Potash: Arab Potash : 2021 Sustainability Report English

APC SUSTAINABILITY REPORT 2021 Partners in Global Food Security CONTENTS Introduction 6 Message from Our Chairman 6 Message from Our CEO 8 About this Report 10 2021 Performance and Progress 11 About APC 12 Embedding Sustainability 20 Thriving Future 42 Our Economic Performance 44 Our Market Presence 48 Enhancing Efficiency and Reliability of Operations 53 Ensuring Customer Satisfaction 55 Environmental 56 76 Stewardship People Centricity Our Management Framework 58 Our Commitment to Health and Safety 78 Our Environmental Aspirations 59 Our People 91 Addressing Climate Change 60 Our Local Communities 107 Conserving Natural Resources 66 APC Sustainability Report 2021 APC Sustainability Report 2021 His Majesty His Royal Highness King Abdullah II Bin Al Hussein Crown Prince Al Hussein Bin Abdullah II 6 Introduction Message from Our Chairman 7 Our second sustainability report reflects our commitment to embed sustainability as a central pillar within our business strategy, and transparently communicates our impacts to all of our stakeholders. I am delighted to announce our second Sustainability Report, produced in accordance with the GRI Sustainability Reporting Standards. This report illustrates our 2021 sustainability performance by communicating our impacts on people, the environment, and business in a transparent and thorough manner. It empowers us to reaffirm our continuous commitment to sustainability to all of our stakeholders and interested parties. It is essential, when reflecting on the last year, to consider the economic concerns left behind by the COVID-19 epidemic. APC's ability to remain resilient in the face of this global crisis is a testament to our leadership, employees, and customers. In addition, we owe the Jordanian government a debt of gratitude for its tremendous efforts to manage the pandemic while consistently supporting our business operations and enhancing our economic success. We have engaged in a broad collaboration with our internal and external stakeholders to create initiatives and produce significant results across our major economic, environmental, and social implications. In accordance with our company's five-year strategy, we are committed to having a tangible, positive impact not only in our region but also on a global scale. To do this, we determine the course of action for protecting our environment, contributing to a sustainable food system, and improving the health and well-being of our people. MESSAGE FROM OUR CHAIRMAN PEOPLE FIRST Following the COVID-19 epidemic, health and safety have played a more prominent role over the previous two years. Regarding the empowerment of our people, we have placed them at the top of our list of priorities and at the center of our interests. In 2021, APC continued to vaccinate all of its employees and workers against COVID-19 as part of this effort. In addition, we have strived to establish a safe and suitable working environment by supplying our employees with all necessary personal protective equipment. Our executive management signed a new labor contract in 2021 that guaranteed the interests of both shareholders and employees in an equitable and balanced manner. We must be able to fully utilize the skill within the company and recruit new talent in order to meet the formidable challenges we face. In 2021, APC continued to invest in its human resources by implementing 66 training programs within and outside of the Hashemite Kingdom, in which 1,056 employees and workers participated. Regarding recruitment, APC continued to establish rigorous recruitment policies in accordance with international standards. As a result of our conviction in the significance of our customers as key stakeholders and our ongoing efforts to satisfy their needs, we have developed a customer satisfaction survey as a means of gaining insight into how we might enhance our operations and services. We have maintained an 81 percent customer satisfaction rate in 2021. THRIVING TOMORROW A business cannot flourish in a society that does not flourish today. In addition to focusing on our company's economic success, we have also contributed to the growth of our nation. In 2021, APC continued to play a patriotic and responsible role in the improvement of the local communities we serve. APC has contributed over 5 million JOD in 2021 through its CSR effort, with a primary focus on the education sector due to our firm belief that investment in this area may have far-reaching positive effects on the lives of individuals, communities, and future generations. A SAFER PLANET Within the five-year strategy of APC (2021-2025), we have placed environmental protection at the center of our company's basic principles, with a clear aim of reducing the environmental impact of our operations. The careful environmental management procedures adopted and the annual internal and external audits of our environment and energy systems have enabled us to record no environmental noncompliance occurrences in 2021. Our ten-year energy strategy was developed in conformity with local and regional goals, best practices, and readily available technologies. This approach will boost our position as a regional sustainability leader and advance our long-term energy objectives. The shift to the use of clean energy has become one of APC's top priorities, thus we are now working to diversify our energy sources through the use of renewable energy. Due to the importance of water to our manufacturing processes, the scarcity and unpredictability of water resources in the region position water management at the top of APC's agenda. APC is now aiming to reduce its water usage, reduce its dependence on government water resources, and ensure a safe and consistent water supply during dry seasons, in accordance with the ten-year water policy developed in 2020. In 2021, we were able to enhance the capacity of our reservoirs by 44%, bringing them to a total of 160,000 m 3 , and we began replacing the current waste-water treatment units with new units, utilizing the most advanced treatment technologies, in order to boost the use of treated water. In addition, we are adhering to international agreements for the management of the many types of trash we generate while implementing the (5s) management tool to maintain the disposal of waste inside our facilities. Inspired by the vision of His Majesty King Abdullah II Ibn Al Hussein, I encourage each of you to embrace change and take this chance by working collaboratively, as we always have, to achieve what was once thought to be impossible but is now within reach. Yours sincerely, Eng. Shehadah Abu Hdaib Chairman of the Board of Directors Our five-year strategy reflects our commitment to having a tangible, positive impact not only in our region but also on a global scale. APC Sustainability Report 2021 APC Sustainability Report 2021 8 Introduction Message from Our CEO 9 We have a strong Reflecting on our economic, environmental, belief that we and social performance in 2021, this report was cannot serve the compiled through the collaborative efforts of growing population our team and the various stakeholders. We've without also connected our reporting with the Sustainable driving positive Development Goals (SDGs) of the United Nations environmental and are committed to the Kingdom's 2025 goal of outcomes, establishing a successful, resilient, and inclusive fostering equality economy. and diversity, and supporting Our strategy for managing our performance and sustainable pursuing continuous improvement across our production efforts. operations is built on an inclusive, sustainable, and evolving process. We firmly believe that we cannot sustain a growing population without also enabling beneficial environmental outcomes, promoting equality and diversity, and supporting sustainable production efforts through the development of new technologies and innovations. For this reason, sustainability has become a central pillar of our company strategy (2021-2025), through which we aspire for excellence while retaining our unwavering commitment to the well-being of future generations. MESSAGE FROM OUR CEO As the COVID-19 shadow began to lift, we were able to protect the health and safety of our staff and customers while ensuring the continuity of our services. This was facilitated by the enormous efforts of everyone at APC, from leadership to employees and contractors, in addition to the support given by the Jordanian government. While the previous two years presented the globe with numerous obstacles, 2021 was a year of significant improvement and improved business circumstances for APC. We set new sales and net profit records for potash while going on a quest to produce potash of red standard quality. With the concerted efforts and unrivaled dedication of every member of the organization, we were able to increase our production and exports while maintaining the highest standards of quality, safety, occupational health, security, and a sustainable environment throughout the entire life cycle of our products. In this regard, I am delighted to state that APC has won the award for the best Jordanian product in the chemical and plastic industries sector for the chemical, cosmetics, and fertilizer sectors in the category for large industries for the second consecutive year, following its 2018 win. With CSR at the core of our business and in an effort to boost the economy in the wake of the COVID-19 pandemic, APC has contributed 5 million JOD to the local communities through the health, social development, and education sectors. Our human capital remains our most valuable asset at APC, and this has manifested itself in our policies and procedures. We have largely succeeded in carrying out all actions to ensure the highest standards of safety and protection. As a result, the rate of work-related injuries that lead to lost work time decreased by 52% compared to 2020. Our commitment to mitigate the con