ADAMA 2021 ESG REPORT

Environment

Bringing Sustainability to Our Chinese Facilities

Since 2018, and even more so during 2021, we managed an ambitious project to improve the environmental impact of our Chinese facilities, by relocating them from the old commercial quarters of their respective cities to new industrial parks, while upgrading their environmental design.

The relocation of Sanonda was completed at the end of 2020. The new plant is already producing, including two state-of-the-art regenerative thermal oxidizers, an upgraded biological wastewater treatment plant, and odor and noise control. Special attention was given to infrastructure eliminating the risk of soil and groundwater contamination. Minimizing hazardous waste disposal is planned through the operation of the designated on-site solid waste incinerator.

During 2021, the Sanonda wastewater treatment plant (WWTP) was upgraded to include the MBR-PAC technology. This upgrade allows to meet and go beyond the Chinese wastewater national discharge standards, and protects the Yangtze river, which serves as the local fresh water source.

The current structure of our Sanonda WWTP comprises a multibarrier systems:

i) an advance oxidation section based on Ozone and Hydrogen Peroxide

ii) a biological section with aerobic and anaerobic zones combined with activated carbon adsorption

iii) an ultra-filtration unit

vi) a phosphorus polishing system.

The WWTP treats more than 10,000 m3 wastewater per day and removes 98.5% of organic matter, 98.6% of Nitrogen and 99.9% of phosphorous.

Similar systems will be installed during the relocation of Anpon, which is expected to be finalized during 2024. Meanwhile, in order to ensure continuity of production, waste gas systems were installed at the old site.

Huifeng is a new Chinese entity which synthesizes and formulates plant protection products. It joined ADAMA during 2021.

**Environmental Systems Being Implemented in Our Chinese Facilities**
Waste type	Environmental Systems Being Implemented	Sanonda	Anpon	Huifeng
Wastewater	Biological treatment	+	+	+
	Membrane filtration	+	+	+
	Waste gas treatment	+	+	+
Air and Odor	Organized source treatment by thermal oxidizers	+	+	+
	Non-organized sources treatment by adsorption system	+	+	+
	Comprehensive organized and nonorganized source capture system	+	+	+
Hazardous Waste	Solid and liquid incinerators	+	_	+
Soil and Groundwater	Isolated floor and drainage ditches surrounding workshop and facilities	+	+	+

Absolute performance indicators for ADAMA’s Chinese entities, for the last 3 years, pre-relocation
Parameter	2019	2020	2021
Investment in HSE facilities, million USD	21	9.5	19
Total Energy consumption, Tj	8,992	7,506	6,758
Used energy sources (%):
• Electricity	24	42.4	40
• Steam	0	7	11
• Internal production (Fossil Fuels)	76	50.6	49
Water consumption, m3	6,707,923	8,037,799	9,235,279
NOx, tonne	201	34	45
SOx, tonne	130	4	22
CO2, tonne**	620,207	1,059,181	934,799
TOC in effluents, tonne	95	188	490
Hazardous waste, tonne	13,798	14,061	16,138