Management Board of the Grupa Azoty S.A. has the honour to present to you the Grupa Azoty Group New Strategy for 2021–2030, which is our response to the major challenges faced by today’s industry as a one of the leaders in the fertilizer and chemical industry in Europe. This document highlights sustainable development and social responsibility of business as areas of strategic importance to the Grupa Azoty Group.

When defining our new mission and vision, and presenting our values, objectives and plans until 2030, we have identified the following elements:

• Management strategy based on Business Segments (AGRO, Plastics – PA, Plastics – Polyolefins, Pigments, Tech Grade Urea, and Oxoplast)
• Financial strategy
• ESG strategy
• Feedstock strategy
• Innovation strategy
• Operational excellence strategy.

The Grupa Azoty New Strategy addresses in detail the challenges posed before today’s industry by the European Green Deal. Specific initiatives, including those focused on environmentally friendly captive energy generation, the need to reduce emissions and decarbonise the business, have been presented in ‘Green Azoty’, our strategic corporate project, based around three pillars:

• Green products
• Green technologies
• Green organisation

In the horizon of 2030, we will seek to implement technological solutions harnessing emission - free and renewable energy. Accordingly, the average share of renewables in our electricity generation mix will be minimum 40%.

The planned decarbonisation projects will help reduce CO2 emissions by over 800 thousand tonnes in 2030 compared with 2021.

As Poland’s largest hydrogen producer, we will continue to engage in developing the hydrogen market and delivering the EU Hydrogen Strategy. We will continue to implement our R&D projects, aligned with the objectives of the European Green Deal. The key ones will focus on expanding our fertilizer portfolio in line with the principles of sustainable agriculture, as well as carbon sequestration (CO2 injection for low-exploited mining workings). All such projects will help us meet the objectives set for the Energy Segment, a business area given strategic prominence, and achieve carbon neutrality by 2050.

Sustainable development initiatives will form part of our ESG Strategy, organised around five strategic pillars directly aligned with the UN Sustainable Development Goals 2030.

The Strategy covers Grupa Azoty’s flagship project to expand our business offering through the addition of a promising segment of polyolefins. Polimery Police stands out as one of the largest capital investment projects undertaken by European chemical producers. It will allow Grupa Azoty to diversify its business, strengthening the Plastics Segment’s position within the Group and Poland’s position on the European plastics market.

The Strategy also provides for further consolidation of financial areas, which will facilitate efficient management of the whole Group at the Business Segments level. As chemical feedstocks, other raw materials and energy carriers account for almost 70% of our operating expenses, a key strategic objective is more efficient use of our own feedstock assets.

Grupa Azoty will also focus on increasing the share of green energy with guarantees of origin in its energy mix and on closely monitoring the carbon footprint of feedstocks sourced from third-party suppliers. We actively respond to our customers’ expectations that we reduce the carbon footprint of our production processes.

This Strategy confirms that energy transition to address climate change is high on Grupa Azoty’s agenda. We will be consistent and deliberate ininnovating and looking for new, environmentally friendly solutions and products. We want Grupa Azoty’s products and technologies to facilitate the achievement of our customers’ targets in production, sales and environmental protection. We want to continue improving the well-being of people who live in Europe, exerting a positive impact on the climate and the environment, and actively building food security for our continent.