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 m3, 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 consequences of climate change and repair the harm to our global world has not altered, and we have made significant steps to continue our efforts in that regard to reducing our footprint. APC has given careful consideration to complying with all applicable environmental regulations in order to mitigate our impact on the surrounding environment, air, water, and soil. Consequently, environmental noncompliance and penalties have not been recorded for the past three years.

We were successful in reducing our energy	Our approach
intensity by 18% compared to 2020 as a result	stems out from
of the several emission-reduction initiatives that	our aspiration
were implemented. In addition, our accounted	for excellence
emissions in 2021 were 18% lower than our total	while retaining
emissions in 2020. We have decreased our water	our unwavering
consumption from operations by 2% and our	commitment to
total water intake by 1.5% compared to 2020 as a	the well-being
result of our coordinated efforts to address water-	of future
related concerns.	generations.
Building on APC's previous achievements, we
reaffirm our unwavering commitment to continue
navigating the global market, consolidating our
position, streamlining our operations, and making
substantial gains toward the future we envision
for our beloved kingdom.
Together, under the guidance of APC's vision, we
confidently march toward realizing our aspirations
and strategic objectives for a future that is even
more prosperous and sustainable.
Yours sincerely,
Dr. Maen Nsour
President & CEO

APC Sustainability Report 2021

APC Sustainability Report 2021