FMC 2020-Sustainability Report Resilient Ready
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2020 SUSTAINABILITY REPORT from Mark Douglas, Diversity and Inclusion A MESSAGE President and Chief Executive Officer At FMC, we believe we have a role to play in creating greater fairness, equity and opportunity in our workplace, in the As the world begins to emerge from a global health crisis unlike any other in our lifetime, there communities where we operate and in is perhaps no better time to reflect on an extraordinary year that showed us the resilience of broader society. In 2020, we launched the human spirit and the capacity of individuals to work together to solve societal problems. two task forces led by FMC officers to While the global pandemic required all of us to live and work differently, I am proud of how our understand and address issues of gender and race equity within our company. As a result company rose to the challenge, from finding creative ways to engage customers and growers of their work, we developed new global policies and practices to improve workforce to maintaining operations while many employees worked remotely. Despite global supply diversity. This includes two objectives to increase the representation of women in our chain disruptions, our manufacturing sites continued to safely produce and ship products that global workforce to 50 percent and Black/African Americans in our U.S. workforce to 14 farmers desperately need to meet the world’s ever-growing demand for food, feed and fiber. percent across all job levels by 2027. As a result, we continued to perform well throughout the year and delivered strong results. In setting ambitious diversity goals and continuing to foster a diverse and inclusive As the pandemic evolved, FMC stepped in to support hospitals, emergency management workplace, we are committed to expanding our reach and removing barriers that have agencies and others on the front lines. Employees were equally committed to helping the disproportionately impacted underserved and underrepresented communities. We communities where they live and work, volunteering to disinfect schools and distributing are confident this will expand opportunities for all employees and create value for our food to those in need. business as we bring together the best minds and talent from all backgrounds and corners of society. All of this is a testament to our culture, values and resolve. Ready for What’s Next This year’s Sustainability Report theme, Resilient. Ready., highlights the determination of our employees, customers and suppliers in overcoming any obstacle to support farmers We understand that the long-term health and vitality of our planet, communities and in their critical role of providing food to help nourish people. Together, we are ready to business is connected to our people and their actions. Sustainability continues to be a take on the challenges of tomorrow. catalyst for innovation across our product lines, and employees are passionate about bringing new solutions to growers to sustainably protect their crops. It is what drives us, Office of the CSO what drives our performance and what will drive our growing company well into the future. In October 2020, Karen Totland was named to the newly created role of Vice President I hope you enjoy reading this year’s Sustainability Report and learning more about how and Chief Sustainability Officer (CSO). We want to constantly push ourselves to be FMC is Resilient and Ready when it comes to tackling some of today’s biggest challenges progressive in our thinking and ensure our goals are as aggressive as they can be. The around sustainable agriculture and global food production. new Office of the CSO will bring greater focus and direction to our sustainability efforts around the world, driving meaningful change across the company and supporting global initiatives to address some of the world’s most urgent challenges. Throughout the report, Mark Douglas you will find examples of how FMC is approaching issues of climate change and food President and Chief Executive Officer security, while advancing innovative technologies to support sustainable agriculture FMC Corporation around the world. TABLE OF CONTENTS Organizational Profile ................................. People ......................................................... Planet ....................................................... 2 8 32 Stakeholder Engagement Product Stewardship 2020 & 2021 Commitments ........................ 3 Diversity and Inclusion Our Environmental Footprint Talent Management Remediation and Beneficial Reuse Progress on 2025/2030 Goals .................... 4 Ethics and Compliance of our Legacy Sites Safety 2020 Materiality Assessment ..................... Assurance Statement ............................... 5 Community Engagement 38 Q&A with Karen Totland, Progress ................................................... Board of Directors, Executive Leadership Vice President and 24 Innovation and FMC Officers ...................................... Chief Sustainability Officer .......................... 39 6 FMC Ventures UN Global Compact Plant Health Sustainability Governance ........................... Communication on Progress .................... 7 Precision Agriculture 40 Diamides Portfolio Global Specialty Solutions Explore fmc.com/sustainability Global Reporting Initiative (GRI) External Assurance of Environmental Data We invite you to visit our website for more This report and our web-based content at FMC engaged ERM Certification and Verification Services information and data. You can explore the fmc.com/sustainability have been prepared in to provide limited assurance in relation to specified 2020 website to access FMC reports and videos related accordance with the GRI Standards: Core option. environmental and safety data. Further details about our to our sustainability programs, as well as FMC A detailed GRI Content Index can be found on the website. external assurance can be found on page 38 of the report. policies and statements on several important topics including climate change, Sustainable United Nations Global Compact Materiality Development Goals (SDGs), human rights, FMC became a signatory to the United Nations Global The information and topics covered in this report were guided supplier code of conduct and animal welfare. Compact (UNGC) in 2015. This report represents our by our 2020 materiality assessment that was completed fifth Communications on Progress in support of the in accordance with GRI standards. This assessment was UNGC principles. A summary of our Communication accomplished through surveys with stakeholders. Further on Progress can be found on our website. details on this assessment and the materiality matrix can be found on page 5 of this report and our website. 2 ORGANIZATIONAL PROFILE FMC Corporation, an agricultural sciences company, provides innovative solutions to growers around the world with a robust product portfolio fueled by a market-driven discovery and development pipeline in crop protection, plant health and professional pest and turf management. FMC REPORTING AND CONSOLIDATION PRINCIPLES The environmental and safety data in this report include all sites under FMC’s operational control in the 2020 calendar year as well as environmental data supplied by active ingredient contract manufacturers (except where noted). Scope 1 and Scope 2 greenhouse gas (GHG) emissions are reported in accordance with the Greenhouse Gas Protocol. REVENUE BY REGION 2020 FINANCIAL PERFORMANCE SUMMARY 2020 FY For the year ending December 31, 2020, FMC Corporation recorded the following results: NORTH * ASIA AMERICA $4.6 $550.6 $1.25 24% 22% ANNUAL SALES GAAP NET INCOME ADJUSTED EBITDA (billions) (millions) (billions) $4.6 BILLION * * $4.22 $6.19 15.6% GAAP DILUTED ADJUSTED DILUTED RETURN ON 23% EARNINGS EARNINGS INVESTED CAPITAL 31% EUROPE, Per Share Per Share LATIN MIDDLE EAST AMERICA & AFRICA *Represents a non-GAAP financial term. Refer to our website for definitions and reconciliations of non-GAAP terms to the most directly comparable GAAP term. FMC 2020 SUSTAINABILITY REPORT 3 2020 PROGRESS ON COMMITMENTS Conduct an extensive shareholder outreach project to better understand Conduct biennial Materiality Assessment. how they assess FMC through an Environmental, Social and Governance (ESG) lens. Develop life cycle assessments for Rynaxypyr® and Cyazypyr® active ingredients. Develop and introduce the sustainability brand to engage both internal Incorporate sustainability in Capital Deployment Plan. and external stakeholders. Measure our global logistics footprint to better understand and reduce our Start utilizing Sustainability Accounting Standards Board’s (SASB) impacts and risks. chemical standard and the Task Force on Climate-related Financial Develop a renewable energy strategy. Disclosures (TCFD) framework for sustainability disclosures. Gain further understanding of our suppliers’ sustainability programs. Summarize baseline Scope 3 GHG emissions for 2019 and externally report the information; determine where there are opportunities to refine the data and reduce the impact. 2021 COMMITMENTS Develop a comprehensive renewable energy strategy. Continue to progress on practices and policies to increase female representation in our global workforce to 50 percent and Black and African Conduct a TCFD-aligned climate change scenario analysis to gain American representation in our U.S. workforce to 14 percent across all job deeper insight into how climate change may impact our business levels by 2027. over time. Review environmental goals to be