CF Industries : 2023 ESG Report

CF INDUSTRIES

2023 ESG Report

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A MESSAGE FROM OUR CEO

To Our Stakeholders:

CF Industries continued to make progress in

Our Mission is to Feed and Fuel the World Sustainably

2023 across many strategic initiatives including the environmental, social, and governance (ESG) dimensions that we believe are a critical component of the long-termsuccess of our Company. These advances have been driven by outstanding work from the CF Industries team, underpinned by strong financial performance.

Our approach to ESG is grounded in our Do It Right culture - we do the right things for the right reasons. Today, this takes shape through our efforts to reduce our carbon emissions while also addressing other issues important to CF Industries and its stakeholders, including inclusion and diversity, safety, food security, nutrient management, biodiversity and community involvement.

Taken together, our success across these areas will contribute to a more sustainable world. At the same time, we believe our success will drive growth, create opportunities for CF Industries, and build a stronger and more resilient company for the future.

At our core, CF Industries is a producer of ammonia. We use the Haber-Bosch process to fix atmospheric nitrogen with hydrogen, which historically came from natural gas, to produce anhydrous ammonia, whose chemical composition is NH3. We then choose to sell the ammonia itself or upgrade it into ammonia-derived products such as granular urea, urea ammonium nitrate solutions (UAN) and diesel exhaust fluid (DEF).

What we do makes a difference to billions of people. Simply, ammonia is one of the most important chemical compounds on earth, essential to human life.

For decades, CF Industries has focused on producing and selling ammonia and other ammonia-derived products for use as nitrogen fertilizer. The nitrogen content in these products provides energy to crops to increase yields and is critical to the formation of protein with the plant.

Along with advancements in seed technology and farming practices, the use of nitrogen fertilizer and other nutrients dramatically increased

food production in the second half of the 1900s, supporting world population growth and lifting countless people out of hunger. It is estimated that fertilizer is responsible for 50% of the world's food. At the same time, fertilizer allows more food to be grown on fewer acres. This reduces the amount of land cleared for agriculture, preserving carbon- sequestering forests and the biodiversity of wildlife ecosystems.

More recently, we have grown a business focused on emissions reduction. We are one of the world's largest producer of DEF. DEF, when combined with selective catalytic reduction technology, reduces nitrogen oxide (NOx) emissions from diesel trucks by up to 90% and increases fuel efficiency by 3-4%.

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Today we have an opportunity to strengthen our existing business and set the Company on a significant growth trajectory by doing what we do best

• produce ammonia - while significantly reducing the carbon emissions associated with ammonia production. We believe that doing so:

• Is the right thing to do, in line with our long-standing commitment to environmental stewardship and our stakeholders' and society's interests in reducing greenhouse gas emissions.
• Meets growing interest in low-carbon ammonia and low-carbon nitrogen fertilizers for traditional agriculture-related applications to lower the carbon footprint of food production and enable ethanol as a sustainable aviation fuel. The use of low-carbon nitrogen fertilizer as a clean energy source to increase crop yields is a certifiable and quantifiable pathway to achieve these objectives.
• Unlocks new growth opportunities from energy-intensive industries, such as power generation and marine shipping, that have identified ammonia as a clean energy source. This is due to the hydrogen atoms that make up a molecule of ammonia. Hydrogen is widely viewed as a scalable source of clean energy, and ammonia represents an efficient mechanism to both ship and store hydrogen, as well as a clean energy source in its own right as ammonia does not contain or emit carbon. The use of ammonia for its clean energy capability represents a significant source of new demand for those who can produce low-carbon ammonia.

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Our Strategy

As a result, our strategy is to leverage our unique capabilities to accelerate the world's transition to clean energy.

Decarbonization is at the heart of this strategy. As we decarbonize, we will be doing our part while providing clean energy to existing and new customers so that they can decarbonize their industries. We believe this will enable us to grow profitably while doing good for the environment.

Our committed goals include reducing Scope 1 carbon dioxide-equivalent emissions intensity by 25% by 2030 (compared to a 2015 baseline) and achieving net zero carbon emissions by 2050. We also have committed to reducing our Scope 3 emissions by 10% by 2030.

We have made tangible progress against these goals.

▶ At the end of 2023, the installation of one of the world's largest alkaline water electrolyzers at our Donaldsonville Complex in Louisiana was mechanically complete. This gives our Company the ability to produce up to 20,000 tons of green ammonia annually (ammonia produced with hydrogen from water through an electrolysis process that produces no carbon emissions). This represents North America's first commercial-scale green ammonia capacity.

▶ Our landmark carbon capture and sequestration (CCS) project, also at Donaldsonville, continues to advance and is expected to startup in 2025. Once operational, our partner ExxonMobil will sequester 2 million tons of carbon dioxide (CO2) annually from our facility that would otherwise be emitted to the atmosphere.

▶ We expanded our efforts to address our Scope 3 emissions by entering into an agreement with bp to purchase of 4.4 billion cubic feet of certified natural gas in 2024, which is double our purchase in 2023. This natural gas is certified by not-for-profit MiQ to have a 90% lower methane emissions intensity - the ratio of methane emissions to natural gas produced - than the industry average. Methane emissions are the second largest source of our Scope 3 emissions.

In 2023, our Board of Directors reviewed roadmaps to achieve our 2030 and 2050 decarbonization goals. These roadmaps identify projects we believe we can execute in the coming years - such as implementing CCS at our Medicine Hat, Yazoo City and Waggaman sites - as well as identify the sources of GHG emissions from our facilities that require additional technology development and are thus longer-term focus areas.

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Our Broad Responsibility

Our strategy of accelerating the world's transition to clean energy is linked to a comprehensive set of ESG goals. Our complete list of ESG goals appears later in this report and can also be found at www.cfindustries.com.

We believe that progress on these issues can strengthen the Company for the long-term. These include internal efforts, such as decarbonization initiatives, prioritizing the health and safety of our workers, and efforts to bolster Inclusion, Diversity and Equity (ID&E) within the Company. They also include external efforts such as stakeholder engagement and supporting our communities, including the launch of the CF Industries Foundation. Given the critical importance of these efforts to the Company, shareholders and stakeholders, the Board of Directors both oversees these topics as a whole and provides additional oversight and guidance through our Environmental Sustainability and Community Committee and Compensation and Management Development Committee.

We communicate our performance in these areas and others through our annual ESG and sustainability reporting, as well as our annual Inclusion, Diversity & Equity Report, which are now available at www.cfindustries.com. There, you can also access our Global Reporting Initiative (GRI) Index in accordance with GRI Standards, our Sustainability Accounting Standards Board (SASB) Index using the SASB framework for the chemicals industry, and a Task Force on Climate-related Financial Disclosures (TCFD) Index utilizing the TCFD disclosure recommendations.

CF INDUSTRIES • ESG REPORT 2023

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A Bright Future Ahead

For nearly 80 years, CF Industries has helped the world grow and thrive. Today, our capacity and our commitment to build on these efforts have never been higher. As you will see in the following pages, there is an energy and purpose across our many initiatives that is driving CF Industries forward.

We are proud of the progress we have made, with quantifiable CO2 emissions reductions in sight and measurable advances across our other initiatives. We are even more excited about the opportunities ahead of us, and the difference we can make for our stakeholders and the world, as we execute our strategy and deliver on our sustainability agenda.

Thank you for your interest in CF Industries. We look forward to working with you as we advance our shared commitment to a more sustainable world.

Tony Will

President and Chief Executive Officer

CF Industries Holdings, Inc.

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About

This Report

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CF Industries' (the Company) 2023 ESG Report provides an update on the strategy, performance, and goals within key environmental, social, and governance (ESG) areas between January 1, 2023, and December 31, 2023. The Report covers operations under Company control in North America and the United Kingdom (U.K.), except for its Waggaman ammonia production facility, unless otherwise stated. CF Industries completed its acquisition of the Waggaman facility on December 1, 2023. For more information on this acquisition, please see the corresponding press release.

This Report is a part of CF Industries' ongoing commitment to providing regular, accurate, and useful communications regarding our ESG priorities, practices, and performance. Disclosures provided herein align with the Global Reporting Initiative (GRI) Standards, the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and the Chemicals sector industry-specific disclosures from the Sustainability Accounting Standards Board (SASB).1 Additionally, CF Industries has committed to the United National Global Compact and reports progress annually on, and aligns our goals with, the UN Sustainable Development Goals (UN SDGs). Indices for the above are included in the Appendix.

The Report is organized into four sections corresponding to the Company's four ESG dimensions: Energy, Emissions & Climate Change; Our Workplace & Communities; Food Security, Product Stewardship, Nature & Biodiversity; and Ethics & Governance. These four dimensions serve as the foundation of our corporate ESG strategy and incorporate our most material topics. Additional sections provide further context on business operations and business relationships.

Any references to "material" or "materiality" in this Report, or related content online or elsewhere, are not intended to have the same meaning as in the context of financial statements or financial reporting or as defined by the securities laws of the United States. For the purposes of this Report, we follow the GRI definition of material topics2 for our ESG materiality assessment.

For additional information on CF Industries' ESG program, please visit cfindustries.com/sustainabilityor contact us at [e-mail]. For financial information on CF Industries, please see our Annual Report.

1 SASB Standards identify the sustainability-related risks and opportunities most relevant to investor decision-making in 77 industries. As of August 2022, the International Sustainability Standards Board (ISSB) assumed responsibility for maintaining the SASB standards. ISSB is a part of the IFRS

CF INDUSTRIES • ESG REPORT 2023	Foundation and has issued standards that are increasingly utilized as a basis for sustainability reporting across industries and various jurisdictions globally - see additional information here.	7

2 GRI defines Material Topics as: topics that represent the organization's most significant impacts on the economy, environment, and people, including impacts on their human rights. GRI 3: Material Topics 2021 (p. 26).

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Our

Business

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About CF Industries

In 1946, CF Industries was founded as a cooperative of regional agricultural supply companies. Over the last 75-plus years, we have evolved to meet the demands of our customers and contribute globally to address society's greatest challenges - including food security and energy.

Today, CF Industries is the world's leading ammonia manufacturer, employing approximately 2,700 people. With nine manufacturing facilities in North America and the U.K., and headquarters in Northbrook, Illinois, we produce hydrogen, ammonia, and derivative nitrogen fertilizer and other nitrogen products with various market opportunities, spanning fertilizer to clean energy solutions.

2023 RECOGNITION AND AWARDS

Fortune 500 Company	Wall Street Journal's	Forbes World's
	Management Top 250	Best Employers

2024 Newsweek's	Forbes Best	Association of	Union Pacific
Most Responsible	Midsize Employers	American Railroads	Sustainability
Companies		Grand Slam Award	Partner Award

Canadian Nationals	Just Capital 100	Ecovadis Silver Medal
EcoConnexions
Partnerships Program

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HOW CF INDUSTRIES CREATES VALUE

Our mission is to provide clean energy to feed and fuel the world sustainably.

Financial	Operational
Strength	Excellence

Logistics and

Distribution

Capabilities

Clean Energy Solutions

Collaborative Teams

Community and Partnerships

Cash generation capability underpinned by operational and structural advantages and disciplined capital and corporate

stewardship.

• Investment grade rating
• Significant margin advantage through low-cost North American natural gas
• Disciplined capital investments
• $2 billion cash on hand at the end of 2023
• Strong record of total shareholder return

A leading operator of ammonia and nitrogen manufacturing facilities.

• Culture of safety excellence supporting recordable incident rate that is significantly better than industry averages
• Continual investment in our nine manufacturing facilities
• Industry-leadingcapacity utilization rates to ensure product availability for customers and drive capital and operational efficiency for the Company
• Purpose-builtflexibility in manufacturing system to respond rapidly to changing product demand patterns

A reliable supplier of fertilizer and industrial products for customers, even in the event of disruption to transportation networks, playing a crucial role in the global food supply chain.

• 23 distribution terminals in North America located in demand centers
• 3 million tons of storage capacity across our network
• Multiple modes of transportation at each manufacturing facility
• Global shipment of products, including solutions key to food security, from deepwater vessel loading capabilities

1. committed leader in hard-to-abate industry decarbonization efforts that strengthens the current business for long-term resilience and success, while creating growth opportunities for the Company.

• Scientific and data-driven emission reduction goals, with a net-zero by 2050 target
• First commercial-scalelow-carbon ammonia capacity in North America
• First industrial mover in the purchase of certified natural gas to reduce Scope 3 emissions
• In-flightproject to reduce GHG emissions by 2 million tons annually, beginning in 2025
• Additional 3-4 million tons of possible GHG emissions reduction by 2030 based on future scoped projects

A dedicated team of employees that build the foundation of everything we do, through a culture that fosters a diversity of ideas.

• ~2,700 employees
• 3X higher entry-level wage compared to local minimum wage (U.S.)
• 30.54 average training hours per North American employee in 2023

An active member of the communities, industries, and associations we are part of, engaging in and building strong relationships that advance our society as a whole.

• Partner with first responders and others to promote a safe environment for our employees and the broader communities
• In 2023, our locations donated $2.6 million to more than 450 organizations
• Launch of CF Industries Foundation in 2023
• Active member of nearly
  70 industry associations for advancement

Derivative Products

End Uses

Core Product:

Ammonia

CF INDUSTRIES • ESG REPORT 2023

Granular Urea	Ammonium Nitrate
UAN	Nitric Acid
Diesel Exhaust Fluid	Other

Clean Energy	Emissions Control
Fertilizer	Industrial Application

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