GROW MORE with LESS PRECISION IRRIGATION for AGRICULTURE SUSTAINABLE PRODUCTIVITY Sustainability Report 2011

GROW MORE WITH LESS PRECISION IRRIGATION FOR AGRICULTURE SUSTAINABLE PRODUCTIVITY Sustainability Report 2011

www.netafim.com CONTENTS

Sustainable productivity is our business – from PART THREE: Netafim CEO and President 6 DO MORE WITH LESS 78

PART ONE: Managing Sustainability GROWING NETAFIM 8 at Netafim 80 Netafim’s Economic Impacts 82 Netafim Company Profile 10 People Doing More with Less 84 Netafim History and Timeline 16 Doing More for Our Customers 102 Netafim Operations Around Doing More with Less in Our the World 20 Supply Chain 114 Netafim Vision and Values 22 Doing More for the Environment 116 Governance and Risk Doing More for Our Communities 124 Management 24 Sustainability at Netafim - Ethics and Human Rights 28 Looking Ahead 138 Stakeholders 30 PART FOUR: Material Issues 34 GROWING Awards and Recognition 36 ACCOUNTABILITY AND TRANSPARENCY 140 PART TWO: GROW MORE WITH LESS 38 About This Report 142 Commitment to the Ten Principles of Eradicating Water Poverty 41 the UNGC 143 Irrigation for Agriculture 45 Commitment to the CEO Water Mandate 145 Irrigation for Landscape 73 The Global Reporting Initiative 146 Irrigation for the Extractive The GRI Index 148 Industry 77 Consultants Statement 166

2 3 5 PLEASE WRITE TO: PLEASE WRITE Naty Barak Officer Sustainability Chief Netafim Ltd m [email protected] Growing more with less means targeting targeting means less with more Growing point exact the to irrigation for resources water they time the at them, need crops the where drop. precious single a not wasting them, need “precision irrigation drip call we why is This targeted is water of milliliter Every agriculture”. crops more deliver to precision great with is This again. time and Time water. less with enables which technology brings Netafim how while crops quality higher more, grow to farmers land natural Earth’s the on burden the minimizing resources. water and year the for Report Sustainability Netafim the in interest your for you our thank We improve us help to feedback your receive to delighted be would We 2011. commit to responding to all questions, queries andreporting in future years. We feedback. copies. hard printed not have We viewing. online for designed is report This IRRIGATE IRRIGATE CROPS, THE THE SOIL NOT

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 4 I believe there cannot be many companies in the world, Netafim provides solutions which around today who can truly confirm that their core enable delivery of higher yields with much, much SUSTAINABLE business offering is one which makes a major less water. contribution to the sustainability of the planet. There is light at the end of the tunnel. Netafim’s PRODUCTIVITY IS This is why, for me, it is a privilege and honor to operations are expanding globally and we now lead the growing business of Netafim, which has reach over 120 countries and over 2.5 billion spearheaded the transformation of sustainable meters of dripperlines per year. We operate 14 OUR BUSINESS agricultural productivity to deliver far higher yield manufacturing plants in 10 countries and serve per hectare and better quality for the world’s close to 50,000 customers globally. We enable agricultural crops, while using fewer resources. farmers to achieve between 40% and 60% water This means much less water, fewer chemicals, savings or more, while producing more and higher lower energy consumption and significantly less quality yields. More water equals more food manpower. When we say “Grow More with But that’s not all that Netafim does. We take Less”, at Netafim, we mean it. a lead in advocating for better water practices The world continues to face tough challenges economically, and in defining policy through our involvement in socially and environmentally. Water scarcity is one of the most the Working Group of the United Nations Global pressing issues. Water is the most basic need of humans, Compact LEAD program and our commitment animals and all plant life. It is the single universally to the CEO Water Mandate. We have developed relevant natural resource that enables and sustains relationships with major food and beverage life (along, perhaps, with the sun). Adequate corporations which drive good farming methods supply of clean water is vital for people to maintain down their agricultural food chain. We run our own healthy and productive lives. And yet, in our operations with environmental consciousness as modern world, more than 2 billion people do not well as being a socially conscious corporate citizen. have a regular supply of water. In many cases, We support the proposal that water is a basic we use our water resources wastefully. Water human right. infrastructures are inadequate to supply the many We are committed to sustainability and to remote locations that rely on agriculture for their operating sustainably. We hope you will take survival. In many cases, remote villagers must the time to discover how we demonstrate this travel many kilometers to fetch water on foot from commitment. We welcome your comments and the nearest source. Netafim drip irrigation systems feedback. Thank you. can enable a high degree of water savings. By applying drip irrigation techniques, from the most simple to the most advanced, from the smallest Igal Aisenberg local farmer to the largest agricultural growers President and CEO

6 7 9

In Part One of this Sustainability Report, we introduce you to to you introduce we Report, Sustainability this of One Part In we where are, we who know to you like would we as Netafim, vision our articulate we how and us motivates what from, we came how and organized are we how explain We sustainability. for sustainably, business our running of fundamentals the address and management, risk governance, good of bedrock a on based ethical business practices. our with relationships our describe also we Report, the of Part this In to important most being as assess we issues the and stakeholders of our business. them and to the long term success stakeholders our of acknowledgement the demonstrate we Finally, from received have we that recognition and awards the listing by globe. different stakeholders around the

M NETAFI GROWING GROWING PART ONE PART

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Netafim’s products provide diverse and comprehensive comprehensive and diverse provide products Netafim’s As the global leader in smart drip and micro-irrigation solutions solutions micro-irrigation and drip smart in leader global the As realistic, achieving to committed been have we one, day From NETAFIM TODAY NETAFIM from operates and Israel Aviv, Tel in headquartered is Netafim representative and subsidiaries 27 and countries, 10 in plants 14 In people. 2,900 over employing countries, 110 over in offices 604 (US$ million 800 US$ over were sales total Netafim’s 2011, 2.5 over manufactured Netafim Worldwide, 2010). in million billion meters of irrigation dripperlines in 2011. other and agriculture for irrigation cost-effective for solutions offers Netafim products, irrigation to addition In applications. to planning from solutions support comprehensive customers programs educational and training of program full a and harvest, in agro-technical applications and sustainable productivity. THE NETAFIM PROMISE THE NETAFIM our enable to – ambitious is it as simple as is promise Our with less. customers to grow more more grow world the helps Netafim future, sustainable a for higher and crops quality better achieving means This less. with the of fewer using while manner, cost-efficient a in yields energy. and land water, – resources limited world’s view We globe. the across results sustainable and long-lasting gives which customers, our of eyes the through challenge each and risks at hand.us a better understanding of the opportunities agronomic international technology, state-of-the-art Delivering teams are dedicatedexpertise and capacity-building training, our sustainable of goals their achieve customers our helping to productivity.

PROFILE COMPANY COMPANY NETAFIM NETAFIM

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Netafim’s drip irrigation solutions for the extractive industries MINING industries extractive the for solutions irrigation drip Netafim’s and clogging minimal coverage, uniform of benefits provide processes leaching in recovery metals for functionality optimal applications. mining for GREENHOUSES comprehensive offer specialists greenhouse Netafim’s to construction greenhouse and planning from solutions, range broad a offers Netafim support. agronomic after-sale ranging from net- of greenhouses and growing structures, glass advanced most the to regions warm for farms house greenhouses for cold regions. AGRICULTURE of crops for a broad range drip irrigation solutions Netafim offers teams specialized Netafim’s conditions. of kinds all in grown phase planning the from right growers and farmers accompany solutions providing harvest, and management crop through Netafim opportunities. and challenges agro-technical for research agricultural international major with collaborates or crops new for solutions irrigation drip develop to institutions to address new challenges. LANDSCAPE water advanced embody products irrigation drip Netafim’s enhanced for technologies and practices management environmental real provide solutions Such irrigation. landscape addition in recycling and conservation water of benefits residential and planning city in improvements offering to landscapes.

LINES PRODUCT PRODUCT NETAFIM’S NETAFIM’S

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 12 15 For more about the LEAD program, see: www.unglobalcompact.org/ l HowToParticipate/Lead/index.htm For more about IFOAM, see: g http://www.ifoam.or For more about the CEO Water Mandate, see: www.unglobalcompact.org/Issues/ e Environment/CEO_Water_Mandat For more about the UN Global Compact, see: g www.unglobalcompact.or in the areas of human rights, labor, environment and and environment labor, rights, human of areas the in

n 2003, Netafim joined IFOAM, The International Federation of Organic Organic of Federation International The IFOAM, joined Netafim 2003, n THE INTERNATIONAL FEDERATION OF OF FEDERATION INTERNATIONAL THE MOVEMENTS AGRICULTURE ORGANIC I committed are who farmers serve better to order in Movements, Agriculture to organic agriculture. THE UNITED NATIONS GLOBAL COMPACT COMPACT GLOBAL NATIONS THE UNITED are that businesses for initiative policy strategic a is Compact Global UN The universally ten with strategies and operations their aligning to committed principles accepted since Compact Global the of member a been has Netafim anti-corruption. responsible of principles ten these upholding to committed is and 2008 business. MANDATE WATER CEO THE unique a - Mandate Water CEO UN the endorsed also Netafim 2008, In designed to assistpublic-private initiative of the UN Global Compact, and disclosure of watercompanies in the development, implementation recognizes Mandate Water CEO The practices. and policies sustainability production of goods and services, through the By that the business sector, chains. supply through and directly both – resources water impacts UN Mandate, Netafim committed to making water- endorsing the CEO Water governments, with working to and priority, a management resources to stakeholders other and organizations, non-governmental agencies, address the global water challenge. PROGRAM LEAD UN GLOBAL COMPACT’S the join to invited be to companies first the of one was Netafim 2011, In The LEAD program is comprised of LEAD program. UN Global Compact’s with the UN Global Compactcompanies that have a history of engagement Global UN the implementing towards working to committed global in have and participating and Leadership Sustainability for Blueprint Compact’s initiatives. NETAFIM’S NETAFIM’S TO COMMITMENT SUSTAINABILITY

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 14 17 Simcha Blass, an Israeli water engineer, who led major water water major led who engineer, water Israeli an Blass, Simcha system. Thus was born the first modern-day drip-irrigation and develop further to partner a sought Blass Simcha worldwide, spread rapidly solutions irrigation drip Netafim's Two partnerships. and expansion brought also Success future. and present past, our underscores Sustainability In times gone by, farmers in desert environments would use use would environments desert in farmers by, gone times In water roots of trees to provide pots buried near the porous clay remain and clay the though slowly seep would Water irrigation. for without away flowing than rather tree, the of base the to close been probably have would farmers These roots. tree the reaching precursor primitive the were pots clay their that know to pleased irrigation. precision as today know we what of Valley, Jordan the and Israel in developments infrastructure irrigation drip modern the of inventor the as regarded today is a visiting while 1930s, early the in that, goes story The system. line of trees, of which one, he noticed, wasfriend, Simcha saw a pipe leaking a that was this for reason The large. exceptionally reaching area, moist bulb-shaped underground an creating was vast his Using surface. the on visible barely but roots tree's the using system a created Simcha systems, water of experience preset at lateral the of out sticking pipes shaped spaghetti long dripping and friction through pressure water reducing distances, into the ground. concluded an agreementcommercialize his invention and, in 1965, Desert Negev Israel's in 1946 in founded Hatzerim, Kibbutz with the improve to together Working pioneers. young of group a by first world's the facilities, manufacturing scale and technology 1966. in production commenced systems dripper drip of efficacy and applicability the improving further on intent Rafi inventor, Israeli another with worked Netafim systems, sophisticated of generation next the created who Mehudar, significant offering Netafim, by manufactured be to drippers water of regardless rate flow uniform maintaining and advantage quality and pressure. Company Netafim Hatzerim's joined enterprises Kibbutz additional on came Magal Kibbutz Netafim. for resources supplement to in 2005, Subsequently, in 1979. board in 1974 and Kibbutz Yiftach investors also bought a minority shareholding in Netafim. In 2011, in shareholding percent 61 a acquired Permira firm equity private enable further will which capital of boost a adding Ltd, Netafim sustainable growth and expansion. are resources water where world the of part a in Originating and conservation to dedicated be to continues Netafim scarce, sustainable productivity. OUR PAST PAST OUR KEY THE IS TO OUR FUTURE NETAFIM NETAFIM HISTORY

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 16 19 Netafim launches a new generation generation new a launches Netafim for preciseof drippers, Dripnet PC, fertigation and irrigation even and sugar and vegetables crops, field in cane. in invest funds Tene and Markstone capital of 20%. Netafim with a share the in participation confirms Netafim one Compact, Global Nations United to doof the first Israeli companies so. President appointed is Aisenberg Igal and CEO of Netafim Ltd. Global UN the joins Netafim Compact LEAD initiative. Permira, 2011, December In firm equity private European the Permira the that announces co-investors certain and funds the completed successfully have Netafim of percent 61 of acquisition Hatzerim, Kibbutzim the from Ltd funds Israeli and Magal and Yiftach Kibbutz Tene. and Markstone with shareholder a remains Hatzerim a 33 percent holding while Kibbutz Magal also retains a minority stake. 2008 2003 2005 2009 2010 2011 Netafim introduces the thin wall wall thin the introduces Netafim cost low a line, dripper integral such crops field industrial for solution as sugar cane. generation new a introduces Netafim greenhouse soil-less for drippers of drippers field existing and growing, addition by upgraded further were anti-siphon and prevention runoff of features. online the develops Netafim specially Dripper, PCJ compensated developed for greenhouses. An Indian subsidiary of Netafim is India Irrigation Netafim - established Private Limited. Netafim introduces the non- mainly Dripper Arrow compensated nurseries, and greenhouses for used rate flow the distributes which a using points irrigation 4 to 2 among manifold distributor. Turbonet, Netafim, for patent new A from water of use the enables sewers as such sources alternative water enhancing reservoirs, and irrigation. drip for conservation The three Netafim kibbutz entities agricultural single a into merged are Ltd, Netafim society, cooperative (54.5%), Hatzerim by jointly owned (12.7%). Magal (32.8%) and Yiftach LATE LATE 1980s EARLY 1990s 1996 1997 1998 LATE 1990s 1999 Simcha Blass experiments with drip drip with experiments Blass Simcha it. patents and develops systems, practical first the become would This emitter. surface drip irrigation Kibbutz in established is Netafim and Blass Simcha by Hatzerim manufacturing begins and Hatzerim, Inline the drippers, of line first the of Laminar Dripper. starts to beNetafim drip irrigation adopted all over the world. as established is Magal Netafim own its with entity, separate a manufacturing plant. Netafim breakthrough: major A of generation next the introduces by invented drippers, sophisticated adapt drippers These Mehudar. Rafi pressure inlet of variations the to automatically, themselves clean and rate flow uniform maintaining and quality water of regardless pressure. as established is Yiftach Netafim own its with entity, separate a manufacturing plant. Netafim establishes Netafim first the U.S., the in Inc. Irrigation Netafim subsidiary outside Israel. Integral Ram the introduces Netafim which line, Dripper Compensated quickly becomes a great success.

1959 1965 LATE 1960s 1974 1976 1979 1981 1982

TIMELINE NETAFIM NETAFIM

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1981 1994 1989 1996 2007 2007 Fresno, Ca Ca Fresno, Fresno, Ca

Mexico City Lancashire Genova

Reynosa Genova ADANA 184 138 138 14 14 34 62 62 m www.netafimusa.co m www.netafim-latinamerica.co t www.netafim.i MEXICO ESTABLISHED PEOPLE OFFICES PLANTS USA ESTABLISHED PEOPLE OFFICES PLANTS REVAHO UK REVAHO ACQUIRED PEOPLE OFFICES ITALY ESTABLISHED PEOPLE OFFICES TURKEY ESTABLISHED PEOPLE PLANTS PLANTS k www.revaho.co.u

o Preto o Preto 1999 1996 1997

2007 Ribeirã Buenos Aires 13 offices Maasdijk Ribeirã Baroda (2), Chennai 23 23 99 907 16 16 r www.netafim.com.b m www.netafimindia.co ARGENTINA ESTABLISHED PEOPLE OFFICES BRAZIL ESTABLISHED PEOPLE OFFICES PLANTS PERU 2007 ESTABLISHED 85 PEOPLE OFFICES TRUJILLO m www.netafim-latinamerica.co INDIA ESTABLISHED PEOPLE OFFICES PLANTS REVAHO NETHERLANDS ACQUIRED PEOPLE OFFICES m www.netafim-latinamerica.co l www.revaho.n

1965 1993 2005 2005 1990 1992

Corporate Hq: Tel Aviv Corporate Hq: Tel Mildura, Melbourne, Santiago Aix En Provence Kraaifontein Hatzerim, Magal, Yiftach Hatzerim, Magal, Yiftach Melbourne Santiago Aix En Provence Kraaifontein 855 107 50 50 32 67 67 www.netafim.co.il u www.netafim.com.a m www.netafim-latinamerica.co r www.netafim.f ISRAEL ESTABLISHED PEOPLE OFFICES PLANTS AUSTRALIA ESTABLISHED PEOPLE OFFICES PLANTS CHILE CHILE ESTABLISHED PEOPLE OFFICES PLANTS FRANCE ESTABLISHED PEOPLE OFFICES PLANTS SOUTH AFRICA ESTABLISHED PEOPLE OFFICES PLANTS Perth AUSTRALIA

TURKEY INDIA ITALY SOUTH AFRICA NETHERLANDS ISRAEL UK

FRANCE BRAZIL MEXICO

PERU

USA ARGENTINA

CHILE

AROUND THE WORLD

OPERATIONS NETAFIM

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 20 23 COMMITMENT TO PROTECTING AND ENVIRONMENT THE THE QUALITY OF LIFE and methods water-saving developing to committed are We and promoting in partners fully-fledged are We systems. We populations. hungry for production food global increasing to efforts worldwide of part integral and inseparable an are protect the environment. VALUES VALUES SPIRIT" “NETAFIM’S MAINTAINING competitiveness, mega-corporate today's Notwithstanding and activity international our of expansion with along to continues Netafim position, global our of strengthening dedication, cooperation, mutual of spirit unique a maintain our employees and clients. loyalty and support vis-à-vis SHARING KNOWLEDGE knowledge the world the over all clients our with share We experience, the as well as decades many over accumulated Our breakthroughs. innovation unique our and expertise methods, alongfamiliarity with a variety of cultures and growing optimal an create countries, numerous in presence our with which development, and growing continuous for infrastructure around agronomists with knowledge our share to us enable will the globe. COMMITMENT TO QUALITY performance, of standards highest the to committed is Netafim service uncompromising to as well as quality, and efficiency these following in consistency The clients. our to dedication and principles is key to our long-term success. LEARNING CONSTANT new to openness and knowledge, for desire curiosity, Creativity, market. irrigation the improve and change to us enable ideas to order in culture organization" “learning a implement We is This solutions. practical into ideas new of hundreds transform professional and programs training continuous our in expressed acquire to willingness our in and employees, for courses knowledge from clients, suppliers and colleagues. VISION VISION of potential the leverage fully will Netafim utilize efficiently to micro-irrigation and drip arable – resources precious most world’s the food global ensure to – energy and water land, preservation. security and environmental MISSION irrigation daily the tackle Successfully 1. site. requirement challenges at each worldwide needs and goals ambitions, the Anticipate 2. a provide and clients, potential and current of creative and competitive solution. uncompromising with clients Provide 3. and solutions reliable and comprehensive maximum derive to them enabling services, yield and profit from their crops

NETAFIM VALUES VISION AND AND VISION

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 22 25 NYMH GROUP SINGAPORE SINGAPORE GROUP NYMH HOLDING SINGAPORE NETAFIM LTD. THAILAND NETAFIM INDIA NETAFIM FINANCING AGRICULTURAL NETAFIM LTD. PTE. AGENCY NETAFIM MANUFACTURING MEXICO MEXICO MANUFACTURING NETAFIM MEXICO NETAFIM ECUADOR NETAFIM CHILE RIEGOSISTEMAS COLOMBIA NETAFIM PERU NETAFIM PHX RECYCLING RECYCLING PHX HOUSE BUYING BRAZIL NETAFIM ARGENTINA NETAFIM CHILE NETAFIM NETAFIM AUSTRALIA AUSTRALIA NETAFIM AGRICULTURAL (BEIJING) NETAFIM LTD. TECH THAILAND LTD. HOLDING NETAFIM JAPAN NETAFIM NETAFIM IRRIGATION INC. INC. IRRIGATION NETAFIM AMERICA APAC NETAFIM B.V NETHERLANDS NETHERLANDS B.V NETAFIM NETHERLANDS U.A COOPERATIE NETAFIM B.V HORTIFIM S.A.S FRANCE NETAFIM S.R.L ITALIA NETAFIM NETAFIM UKRAINE UKRAINE NETAFIM NETAFIM SOUTH AFRICA AFRICA SOUTH NETAFIM LTD. 2000 VEGTECH NETAFIM DEUTSCHLAND DEUTSCHLAND NETAFIM B.V GROUP NETAFIM TURKEY NETAFIM LLC. UKRAINE NETAFIM RUSSIA CIS HORTIFIM NETAFIM DRIP MANUFACTURERS MANUFACTURERS DRIP NETAFIM NETAFIM HELLAS GREECE GREECE HELLAS NETAFIM NETAFIM LTD. LTD. NETAFIM A.E.M.S NETAG NETAG EUROPE ISRAEL AFRICA NETAFIM GLOBAL STRUCTURE GLOBAL NETAFIM through presence global its maintains Ltd. Netafim the which of subsidiaries, 30 over of network a Ltd. Netafim by owned wholly is majority vast 6% KIBBUTZ MAGAL

61% PERMIRA 33% KIBBUTZ HATZERIM

MANAGEMENT OWNERSHIP NETAFIM founding three the by owned be to continued Netafim years, recent a In maintained who Yiftach, and Magal Hatzerim, organizations, a Kibbutz owning companies investment with company, the in stake controlling a European private equity fund,minority stake. In December 2011, Permira, 61 % of Netafim Ltd shares fromsuccessfully completed an acquisition of Markstone funds, capital venture and Magal and Yiftach Hatzerim, Kibbutz Kibbutz Hatzerim remains a shareholder with a 33% per cent and Tene. minority stake. holding and Kibbutz Magal also retains a AND RISK RISK AND Israel in registered company, private a is Ltd Netafim Aviv. Tel in located headquarters with GOVERNANCE GOVERNANCE

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 24 27 0 2 7 4 2011 1 2 12 5 Number of of Number Meetings 2010 4 7 9 5 Number of of Number Members Until March 2012, the Netafim Board of Directors Directors of Board Netafim the 2012, March Until tracking for mechanism a maintains Board The BOARD INVOLVEMENT IN IN INVOLVEMENT BOARD SUSTAINABILITY inherently is business core Netafim's sustainable supporting focused, sustainability Therefore, irrigation. drip through agriculture level Board at activities business of reviews all Company's the to connected necessity of are performance. sustainability review internal financial controls, and make make and controls, financial internal review to respect with Board the to recommendations corporate governance. Committee, Audit committees: four maintained a and Committee Strategy Committee, Finance of description brief A Committee. Affairs Special frequency and responsibilities committees' these in the table below. of meetings is set out applies also This decisions. Board all of execution Committees. Board the to To oversee matters relating to to relating matters oversee To shareholder rights. To ensure alignment of the Company's Company's the of alignment ensure To with development and growth for plans strategic objectives. To ensure integrity of financial reporting reporting financial of integrity ensure To Company of approval recommend and reports. To ensure processes for financial financial for processes ensure To of remuneration determine and control corporate officers. Purpose of Committee Special Affairs Affairs Special Committee Strategy Committee Finance Committee Audit Committee Committee RECOMMENDATIONS RECOMMENDATIONS TO THE BOARD make to shareholders for Processes the in Directors, of Board the to recommendations are shareholders all as direct, are Netafim, of case route may Employees Board. the on represented of CEO and President the to feedback or requests Netafim. BOARD COMMITTEES BOARD Directors of Board Netafim the 2012, March Since and Audit the – committee one maintained has responsibilities main whose Committee, Finance reporting financial the monitor and oversee to: are practices; and policies accounting and system financial quarterly Company’s the review approve auditors; Company’s the with statements practices; and policies accounting in changes their review and auditors external recommend and independence, their ensure performance, replacement; their recommend necessary, if which in manner the in irregularities investigate conducted; is Company the of business the

There are currently no female members of the the of members female no currently are There APPOINTMENT AND AND APPOINTMENT DIRECTORS OF COMPENSATION the by appointed are Directors Netafim's proven their on based shareholders Company's standing, professional and contribution credible of exception the With experience. and skills the and Directors of Board the of Chairman the Committee, Finance and Audit the of Chairman remuneration a using compensated are who retainer, annual an includes which framework for compensated not are Directors Company All Company. the to render they services the expense to entitled are Directors Company for accommodation and travel of reimbursement specific no therefore is There purposes. Company business and compensation Director between link performance. all Switzerland-based industrial groups with with groups industrial Switzerland-based all is Weber Mr. operations. business international Board Supervisory the of Member a as mandated AG. and Vitrashop at Elma AG, Enics AG replaces Switzerland, Zurich, in born Weber, Mr. Chairman as down stepped who Makov, Israel following the change in company ownership. Board the of development The Directors. of Board will and noted been has diversity greater include to future. the in considered be

This is not considered to present a conflict of of conflict a present to considered not is This Directors of Board the of Chairman current The interest and the long-term success of Netafim Ltd Ltd Netafim of success long-term the and interest comply Directors All all. for objective shared a is of conflict to regard with legislation Israeli with Company the of None Members. Board of interest any in Ltd Netafim by employed are Directors capacity. executive 30 over brings Weber Mr. Weber. Rudolf Mr. is joining to Prior experience. industry of years as years 15 almost spent Weber Mr. Netafim, AG, Kaba and AG Sauter Hoval-Group, at CEO BOARD OF DIRECTORS the is Netafim at body governing highest The until comprised, was which Directors of Board Following members. 11 of 2011, December Board the ownership, Netafim in change the time the at and, restructured was Directors of is Report, Sustainability this of publication of were which of 5 members, 9 of comprised by appointed 4 and Permira by appointed non-executive, are Members Board All Hatzerim. However, (non-shareholding). independent and by appointed Directors Company the of some shareholders indirect as deemed be may Hatzerim the of character unique the to due Netafim in governing framework legal of organization kibbutz mutual ownership of assets.

AT NETAFIM AT GOVERNANCE GOVERNANCE

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 26 29 EMBEDDING THE CODE OF BUSINESS BUSINESS OF CODE THE EMBEDDING OF ETHICS A CULTURE CONDUCT AND Code updated the communicate to plans Netafim 2012, During in them engage and employees all to Conduct Business of and training comprehensive A Code. the upholding actively presentation including developed, been has pack discussion by delivered be will that dilemmas ethical company-relevant of Managers Business and Managers Resources Human company asked be will employees Netafim All subsidiaries. Netafim all in their of confirmation as Conduct Business of Code the sign to the sign will hires new all and principles new the to agreement training receive and contract employment their of part as Code Business of Code The employment. of months first their during and English (Hebrew, languages three in available is Conduct Spanish). portal. intranet Netafim's on available be will Code The will dilemmas ethical presenting posters wall addition, In raise to world the around offices Netafim all in posted be the in face may employees issues ethical about awareness work. daily their of course WHISTLEBLOWER POLICY NETAFIM'S strict a is Conduct Business of Code Netafim's Within of breaches suspected report to employees all of requirement Netafim the to directed are reports Such provisions. Code's the portal. intranet internal or email mail, via Counsel General appropriate and investigated thoroughly are submissions All Board Netafim's to reported subsequently and taken is action no are there ensure to care takes Company The Directors. of of breaches alleged report which employees against reprisals were incidents significant No Conduct. Business of Code the 2011. in reported see please Conduct, Business of Code Netafim's read To website: Netafim's s www.netafim.com/business-conduct-policie

Netafim first established a Code of Business Conduct in in Conduct Business of Code a established first Netafim a encompasses Conduct Business of Code Netafim's Netafim strives to do business in a fair and ethical manner, manner, ethical and fair a in business do to strives Netafim global all in Conduct Business of Code strict a observing strong a on rests Conduct Business of Code The operations. applies and compliance legal and values business of platform in exception without directors and employees Netafim all to or colleagues, with internally whether activities all to relation and shareholders partners, suppliers, customers, with externally all other Netafim stakeholders. further a after 2012, March in updated was Code the and 2006 which process three-year a following decision, Board and review The worldwide. companies Netafim with consultation involved in code, the of content the on debate open included process and feedback provided subsidiaries from representatives which the of reflection truer a Code the make to suggestions offered Officer, Ethics Netafim's business. its conducts Netafim way of Code the to adherence ensuring for responsibility with who Officer Sustainability Chief Netafim's is Conduct Business Company. the of CEO and President the to directly reports ethical for guidelines provides and integrity to commitment and employees of responsibilities the defines behavior, expectations sets assets, Company safeguarding in managers with compliance contacts, external with interactions ethical for and community the for responsibility respect, mutual law, the the environment, and reporting ethical breaches. ETHICS

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S SHA MER REH TO OLD US ER C S

C O S

E M E M Y U O L N P I T M Y

T I

M S

N P

O A

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G R

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Just as the philosophy of the Kibbutz movement, movement, Kibbutz the of philosophy the as Just of out grew born, was Netafim which from has Netafim so dialogue, and spirit community relations stakeholder approach to continued honest and discussion open of standpoint a from trust of values lasting on based relationships maintains Netafim understanding. mutual and which way a in stakeholders with relationships strategy. business sustainable Netafim's informs

STAKEHOLDERS TO OUR OUR TO LISTENING LISTENING KNOWING AND AND KNOWING

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 30 33 Leading edge sustainable sustainable edge Leading learning Shared Improved impact Profitability markets, new into Growth Sustainable innovation governance Good Compliance Prompt reporting of issues conservation Water Fertilizer use reduction Recycling of dripperlines Biodiversity protection a as water to Access for supply water Adequate Food security Employment opportunities • • • • • • • • • • • • • • • • • • productivity developments • • • • markets especially emerging • • • • • • • • • human right • sustainable and agriculture development • • Netafim works closely with other agricultural agricultural other with closely works Netafim many as well as providers product and service progress to institutions research and academic for capabilities agricultural and innovation conditions. different in productivity sustainable positive a receive to wish shareholders Netafim's Netafim that ensuring while investment on return with line in and responsibly, and legally operates Netafim's mission. with compliance Netafim's require Regulators Netafim which in countries all in legislation all operates. ways in interested are groups Environmental agriculture sustainable support can Netafim that less with more growing for options viable through environmental negative minimum ensuring and impacts. increase the in interested are groups Community in and all, for right basic a as water to access of communities. of development sustainable the community in involvement frequent Netafim's of education and training including programs dialogue. for opportunities provide farmers local global of membership Netafim's Additionally, Compact Global UN the as such organizations and dialogue in involvement Netafim's ensures strategic range, longer on development policy the by addressed those as such issues global , etc. Goals Development Millennium Business and and Business Academic Partners Shareholders Regulators Environmental Groups Community Water conservation Water Reduced use of fertilizers fertilizers of use Reduced Quality and yield of crops Cost–effective solutions Replacement and recycling recycling and Replacement Service quality Innovative solutions for for solutions Innovative Opportunities to experience experience to Opportunities Professional development development Professional Performance feedback Safe and healthy workplace Fair compensation and and compensation Fair Making a positive positive a Making Opportunities to support support to Opportunities Long term relationships Performance feedback Continuous improvement improvement Continuous • • • • • • • • • • • • • • • • • Key Concerns and Aspirations Aspirations and Concerns Key Strategy which inform Netafim • • and pesticides • • • of dripperlines • • commodity crops • and development product new innovation • opportunities • • • benefits • and society to contribution environment • and development product new innovation • • • and performance overall the in efficiency of our offering Dialogue Processes Customers – farmers, growers, irrigation irrigation growers, farmers, – Customers Netafim's of heart the at are – managers to tailored are solutions Netafim as business, Through customer. each of needs the meet dealers licensed Netafim of network global a customers that ensures Netafim resellers, and Netafim's attention. maximum the receive workshops, conferences, meetings, customer trials field and programs education and training dialogue. productive ongoing ensure Netafim employees around the world have have world the around employees Netafim ideas raise dialogue, in engage to opportunities efforts sustainability Netafim's to contribute and meetings, department meetings, global through internal online and discussions performance communications. Netafim suppliers support Netafim's overall overall Netafim's support suppliers Netafim raw of supply the through offering product for Opportunities products. finished and materials with meetings supplier frequent at are dialogue suppliers. key to endeavor constantly suppliers its and Netafim reliability efficiency, performance, the improve potential and current to offered value and and design system comprehensive by customers integration. Stakeholder Group Stakeholder Customers Employees Suppliers

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 32 35

Supporting economic development through awareness of drip irrigation benefits. Supporting economic development through Helping farmers to increase yields at lower costs. Leading edge technological innovation. conservation. Water Netafim's impact on the use of fertilizers and pesticides in agriculture. Commodity crops yield improvements. Netafim's direct environmental impacts and carbon footprint. End-of-life recycling of materials. Partnerships for sustainable productivity and agricultural advances. Educating farmers, especially in emerging economies. Improving employee capabilities especially in emerging economies.

The issues which are most material for Netafim have been developed through an internal internal an through developed been have Netafim for material most are which issues The NETAFIM'S MOST MATERIAL ISSUES ARE: ISSUES MOST MATERIAL NETAFIM'S 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. The most important issues for Netafim and Netafim's stakeholders are those which affectThe most important issues for Netafim and can we believe we are considered of highest relevance by ourthe future of Netafim's business and which issues, material these addressing and understanding By stakeholders. ensure a positive long-term sustainable impact. with Team received from our stakeholders through ourprocess which aggregates input we have Management Netafim's of assessment an with together are them, with significance most of interaction are which issues The issue. each of priority relative the to regard detail. in report this in discussed

STAKEHOLDERS NETAFIM AND ITS ITS AND NETAFIM ISSUES FOR FOR ISSUES MOST IMPORTANT IMPORTANT MOST KNOWING THE THE KNOWING

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In 2011, Netafim achieved a Platinum ranking, the highest highest the ranking, Platinum a achieved Netafim 2011, In LEADING CORPORATE CORPORATE LEADING ISRAEL IN RESPONSIBILITY since Index Maala the in participated voluntarily has Netafim responsibility corporate the of one as recognized is and 2006 Israeli the in Index only the is Index Maala The Israel. in leaders practices responsibility corporate the measures which market and Israel in traded publicly are which companies, leading of traded or owned privately are which companies Israeli also Governance, focus: of areas five covers Index The abroad. Index This Environment. and Community Workplace, Ethics, advancing NGO Israeli an Maala, by developed was framework companies eighty-five 2011, In Israel. in responsibility corporate or privately-owned were 34 which of Index, the in participated foreign traded. please visit: For more information about the Maala Index, l www.maala.org.i privately the of 50% year. consecutive third the for available, ranking, the in participating companies traded foreign or owned higher. or 90% of score overall an indicating Netafim, including and "Ethics" categories the in scores maximum received Netafim "Environment". AWARD SUPPLIER LEADING leading American’s Anglo among nominated was Netafim companies Four innovation. of category the in suppliers 2011 the reached Netafim and category, this in nominated were outstanding “recognizes award innovation The place. second has that innovation groundbreaking on based achievements stakeholders.” its and AA for value measurable delivered Chile-based AA’s by award the for nominated was Netafim the to pipes FlatNet™ introducing for Division Blancos Mantos metal rinsing process deployed in mining.

RECOGNITION AWARDS AND AND AWARDS

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In Part Two of this Sustainability Report, we aim to familiarize you you familiarize to aim we Report, Sustainability this of Two Part and In forms various their in irrigation drip of technologies the with for solutions advanced developed has Netafim which in ways in the management water and dwelling urban and landscape with agriculture, work exciting our of some describe We industry. extractive the of conscious are who customers other and farmers of types supply many entire their on systems irrigation drip of effects positive the efforts. their supporting in play can we role the and chain, hi-tech our through and less, with more grow to continues Netafim even grow farmers help to aim we solutions, irrigation precision sustainable truly support and future the in less even with more food and water global addressing in assisting while lifestyles shortages. solution, global a as irrigation drip about passionate are we Because value food the of aspect any in involved everyone that believe to we way cost-efficient this of benefits the of aware be should chain sustainability. global support help. may report this of Two Part

S WITH LES GROW MORE MORE GROW PART TWO PART

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 38 41 To read the CEO Water Mandate White read the CEO Water To see: Paper, http://ceowatermandate.org/ In July 2010, the UN General Assembly formally acknowledged waterIn July 2010, the UN General Assembly formally less that consider you when clear becomes scarcity water of issue The Water is the source of life and the most precious resource for our global global our for resource precious most the and life of source the is clean Water of lack The development. economic as well as wellbeing sustainable through communities sustain to water of use the as well as water is drinking population growing world's the for security food ensure and and agriculture countries developing While face. all we challenge significant most the scarcity water by affected directly and severely more are the markets in emerging issues such of burden the – today called is it as a poverty, be to water or – sustainability global For isolation. in seen be cannot world developing economic needs access to clean waterviable proposition and common future, everyone and development industrial and agriculture for water sanitation, globally and borne is water to access of lack of cost The well-being. and to growth access inadequate through development economic to in limitations the dollars and of billions to amounts resources water of use inefficient and water GDP. global of terms Rights Human UN the 2010, September In right. human a as sanitation and demonstrating foundation, legal its clarified and right this reaffirmed the 2010, Council in Also rights. human other all to equal and legally‐binding is it Mandate published a Framework for CEO Water and UN Global Compact’s Business Responsible on Guide full a Engagement, Policy been has Responsible Netafim Water. to Right the on Paper White a and Policy and Water Mandate Water CEO the of Group Working Rights Human the in active sustainable ensure to corporations require which developments supports practices. water available is ecosphere world's the in available water total the of 0.1% than for human use. This is the water found in lakes, rivers, reservoirs and those affordable an at tapped be to enough shallow are that sources is underground and snowfall, and rain by renewed regularly is amount this Only cost. therefore available on a sustainable basis. g Source: www.water.or g and www.endwaterpoverty.or

WATERBORNE DISEASES KILL THOUSANDS THOUSANDS KILL DISEASES WATERBORNE EVERY DAY. A FROM DIES CHILD A SECONDS, 20 EVERY DISEASE. WATER-RELATED LIVE PEOPLE BILLION 2.6 CURRENTLY, MILLION 884 AND TOILET SAFE A WITHOUT WATER. CLEAN TO ACCESS LACK PEOPLE 24,000 WORLD, DEVELOPING THE IN DIE FIVE OF AGE THE UNDER CHILDREN CAUSES PREVENTABLE FROM DAY EVERY FROM CONTRACTED DIARRHEA LIKE UNCLEAN WATER. 200 THAN MORE DAY, ONE JUST IN IS TIME WOMEN'S OF HOURS MILLION OF BASIC MOST THE FOR CONSUMED FOR WATER COLLECTING - NEEDS HUMAN DOMESTIC USE. IS GDP OF 5% ESTIMATED AN AFRICA, IN CAUSED DEATHS AND ILLNESSES TO LOST OF ABSENCE THE AND WATER DIRTY BY SANITATION. POVERTY WATER WATER ERADICATING ERADICATING

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For more information about this study, see: For more information about this study, http://pubs.acs.org/doi/abs/10.1021/ es203177v 15% MECHANIZED 4% DRIP IRRIGATION

79% FLOOD 2% SPRINKLERS Use of drip irrigation can save hours of walking to fetch water from distant THE HUMAN RIGHT TO WATER – SAVING LIVES LIVES SAVING – WATER TO RIGHT HUMAN THE The human right to water also encompasses the way in which water Stanford by research Recent towns. and villages remote to supplied is and Science Environmental journal the by published (U.S.) University amount of time families must (2012) shows that decreasing the Technology walk to obtain clean water can help save the lives of young children in sub- 11 by Saharan Africa. The study found that cutting the walking time to a water children of mortality under-five reduce can minutes 15 just by source diarrhea nutrition-depleting of prevalence the slash and percent, percent. 41 by sources and therefore has a significant positive impact on the lives of communities. rural An increase in the use of drip irrigation, and water saving of only 15% in in 15% only of saving water and irrigation, drip of use the in is increase This An use. domestic for water available double than more will agriculture, advanced through promoting to committed is Netafim that contribution farming of the education and training and irrigation drip of use for technologies changes simple how show we report, this In world. the around communities communities local in life of quality the improve significantly can level local at and access and improved health,through ensuring better water availability populations. sanitation, food safety and security for global 70% AGRICULTURE agriculture of 12% only 70%, this Of today uses drip irrigation techniques. 20% INDUSTRIAL OF TOTAL IS IS TOTAL OF 0.007% AVAILABLE 0.9% SWAMP 68.9% ICE 29.9% UNDERGROUND 0.3% RIVER & LAKES WATER 97.5% SALT 2.5% FRESH WATER 10% DOMESTIC

⁄ 2 OF EARTH'S SURFACE IS WATER Of this total amount, which which amount, total this Of kilometers, cubic 91,000 represents agriculture. for used is 70%

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 42 45 Drip irrigation offers the additional environmental environmental additional the offers irrigation Drip exact the ensure to required technology Modern benefits of prevention of soil erosion and and erosion soil of prevention of benefits are which environment, natural the of destruction precipitation from resulting phenomena widespread alternative from water of flows uncontrolled to due there where areas in especially methods, irrigation drip flow low and volume Low slopes. acute are soil’s the suits that water supply systems irrigation run-off. penetration abilities and prevents excessive crop to chemicals other and water of targeting involving approach scientific a on based is roots development and agronomics of knowledge deep reliably. task the perform to systems technical of crop or plant single every for needs irrigation The crop of type the by only not influenced unique, are the of state the conditions, climatic local by also but water of accessibility properties, soil and land arable of use including methods farming general and regions, desert in grown Tomatoes agrochemicals. irrigation different wholly require example, for landscapes. fertile in gown tomatoes than solutions technology drip call to prefer we why is This scientific detailed the reflecting irrigation", "precision the for methodology applied of nature technological irrigation. drip of success proven DRIP IRRIGATION EXPLAINED EXPLAINED IRRIGATION DRIP low of application even slow, the is irrigation Drip and precise a in plants and soil to water pressure water of amount exact the that so way targeted the of root the at location specific the reaches be to uptake water for necessary is that plant development. and growth supporting in effective with tubing plastic of system a uses irrigation Drip the throughout placed emitters water embedded prescribed at water of release enabling tubing, way a in roots plant the at water focus to rates prevents and utilization water maximizes which water evaporation or runoff and waste. Not – tubing irrigation the through runs water only fertilizers channel to possibility the have farmers thereby tubing, same the through nutrients and of application precision same the enabling optimum in resulting nutrients, and fertilizers fertigation called called often is This utilization. or nutrigation. Netafim has developed hundreds of drip irrigation irrigation drip of hundreds developed has Netafim to technology ever-improving using systems of hundreds in crops of tens for solutions provide is irrigation Drip conditions. agricultural different sometimes called micro-irrigation. After World War Two, the ability to mold plastics plastics mold to ability the Two, War World After a on irrigation commercial of use first The Despite the unquestionable productivity and and productivity unquestionable the Despite DRIP IRRIGATION HISTORY HISTORY IRRIGATION DRIP times ancient since used been has irrigation Drip captured holes small with pots clay buried when out leak gradually to it enabled and rainwater vegetation. nearby of zone root the into and irrigation drip of development formal first The where Afghanistan in 1866 around began supplies and irrigation drip with experimented researchers of types various using by systems drainage pipes. clay effective, cost more and widespread became irrigation drip in innovations for way the paving early and tubing polyethylene of use the including versions of water emitters. - dripperlines – tubing plastic using scale wide Over 1960s. the in Netafim by pioneered was innovation, incredible this on building years, the delivering more with less. This is what Netafim Netafim what is This less. with more delivering conversion large-scale – Revolution" Drip "The calls to keys major the of one is technology drip to risks. sustainability global addressing the agriculture, in irrigation drip of benefits quality the around land farmed in irrigation drip of use drip to Alternatives under-exploited. still is world methods, spray or flood rainfall, natural irrigation, generally the of practice the remain to continue whose farmers of community conservative the Of output. agricultural on depends livelihood irrigation. drip uses 4% only land, irrigated total sustainability significant a represents This for opportunity business a as well as opportunity Netafim.

A COMPELLING IMPERATIVE – IMPERATIVE COMPELLING A REVOLUTION DRIP THE available scarcity, water on pressure global With concerns exploited, totally almost land farming of effects environmental and health the for and agriculture in used chemicals and fertilizers the around prices food in rise significant the a is irrigation drip years, 5 past the during world agriculture. sustainable for imperative compelling to turn preferences consumer as Similarly, choices, food healthier and greener cleaner, supply can agriculture organic for irrigation drip help to nutrients liquid of quantities precise Netafim's less. with more grow farmers organic of intersection the at is offering irrigation drip and security food – challenges global key these world the on depend sustainability environmental Drip irrigation has become an essential technology technology essential an become has irrigation Drip of face the transforming sustainability, for to farmers enabling world, the around agriculture sustainable the support and less with more grow growing world's the for food of production 2050. in billion 9 reach to estimated population, world the in land farmed all if that estimate We 2050 in population the feeding irrigation, drip used water, of kilometers cubic 50,000 over save would of consumption water the of quarter one around significant a addition, In States. United entire the fertilizer of tons million 170 the of proportion farming and avoided be could annually produced of ton per energy less considerably use would emissions carbon fewer generate and produce the to related emissions gas greenhouse (total global of 2.48% at estimated are cycle life fertilizer Fertilizer International the to according emissions, farming of quality the least, Not Organization). and reliability the and higher be would produce more be would output agricultural of consistency on pressure reduced in resulting dependable, prices. food

AGRICULTURE IRRIGATION FOR FOR IRRIGATION DRIP DRIP

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 44 47 Dripperlines Drippers DRIPPERS (EMITTERS) the in factor major a is development technology dripper The has Netafim and Systems Irrigation Micro the of success irrigation. precision for drippers individual of hundreds developed most the is specification dripper specific the of selection Careful entire an of performance the optimizing in element important system. irrigation performance and specification dripper influence which Factors include: the of property important most a is Range: This Pressure Water in rates consumption and flow water the determining dripper, pressure standard Netafim's crops. specific for needs with line range is 0.4-4.0 bar. dripper the of ability the determines This Pressure Control: broad a over water of amounts equal and precise deliver to nutrient and water of uniformity % 100 with range pressure distribution. prevents that mechanism Anti-Siphon Mechanism: A external from dripper the into drawn being from contaminants sources. Self-Flushing Mechanism: A unique mechanism that flushes operation, notdebris as it is detected, throughout the irrigation uninterrupted ensuring cycle, a of end or beginning the at just dripper operation. dripper the of properties the to refers This Clogging Resistance: and block may that particles of accumulation prevent which interfere in the flow of water. dripperlines of resilience of property the is UV Resistance: This case the in especially rays, ultra-violet from destruction against of surface drippers. DRIPPERLINES DRIPPERLINES and complex is dripperlines of technology The plastics and agronomics in both expertise requires sizes, several in come Dripperlines applications. specific meet to properties different offering properties include: farming needs. Such of diameter The diameter of the dripperline: The capabilities flow water determines dripperline the system. irrigation the of cost the influences and diameter lowest the have to prefer will Farmers flow irrigation with compatible dripperlines requirements. wall The The wall thickness of the dripperlines: in factor major a is dripperlines the of thickness different in system irrigation the of durability the Thicker conditions. soil and topographical the of destruction against protect diameters in used chemicals and nutrients by dripperlines and pressures water higher withstand agriculture, conditions. weather to resilience greater offer materials The The composition of the dripperlines: to conform must dripperlines manufacture to used years withstand to order in specifications precise farming other and weather soil, to exposure of conditions. Subsurface irrigation is a more efficient application application efficient more a is irrigation Subsurface dripperlines with technology, irrigation drip of the targeting surface, earth the below placed drip subsurface of use the Generally, root. plant to opportunities additional brings systems irrigation irrigation the automate and efficiently more irrigate reclaimed of use the allowing as well as process irrigation for wastewater recycled or water irrigation whole the that fact The purposes. possibilities new up opens underground is scheme process, production the of mechanization total for drip Subsurface precision. greater even ensuring anaerobic eliminate to ability the has irrigation reduce and materials plant of decomposition which gas greenhouse a production, gas methane warming. global accelerates SUBSURFACE IRRIGATION SUBSURFACE SURFACE IRRIGATION SURFACE drip of method simplest the is irrigation Surface dripperlines of placement the requiring irrigation, defined a at field agricultural the of surface the on Generally, crop. the of base the from distance reasons, cost for preferred is irrigation surface is penetration sub-surface where areas in or for applied usually is irrigation Surface problematic. crops. row multi-seasonal and crops tree TECHNOLOGY IRRIGATION DRIP

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 46 49 Kibbutz Nirim is a long-time user of Netafim's Netafim's of user long-time a is Nirim Kibbutz FAMILY DRIP SYSTEM (FDS) – (FDS) SYSTEM DRIP FAMILY SMALLHOLDING EMPOWERING AGRICULTURE also has development technology Netafim's using small-holders of needs the considered plots. family on methods irrigation traditional in challenges fundamental face Small-holders crop improve and yields raise to effort their emerging in issue common a is This quality. very with work farmers where countries, economy financial inadequate have and areas land small is It technologies. farming in invest to resources emerging in produced food of 80% that estimated family smallholder by produced is economies critical a is smallholders supporting so farms, economic and security food both advance to way obstacles key The regions. these in development include with confronted routinely are farmers that wasted nutrients, and water of distribution uneven as well as evaporation and runoff to due water is supply water Often, needs. labor intensive proximity reasonable beyond located or limited the developed Netafim quality. poor of often and to respond to (FDS) System Drip Family needs. these CMT system for its variety of intensive crops, crops, intensive of variety its for system CMT all care, close and water of plenty needing desert. Negev the of terrain sandy the in grown place, in units IriwiseTM 100 has Nirim Kibbutz about of area an covering field, per units three Netafim's season. growing peak in hectares 700 transmitters and sensors uses system IriwiseTM from the field and send itto collect real time data remote allowing computers, farm's the to directly time, given any at levels moisture of monitoring or malfunctions to managers farm alerting thereby adjustments needed in the irrigation program. Netafim's CMT range includes an array of of array an includes range CMT Netafim's primarily founded is livelihood Nirim's Kibbutz of maintaining a continuous presence in the field, field, the in presence continuous a maintaining of famers enabling automation, with runs system the less with more do and priorities other to attend to hands-on resource. diverse for devices software-supported different conditions, agricultural different in applications the and fields the between communicate which enabling time, real in way, seamless a in office decisions. management crop all of control remote technological on working currently is Netafim – precision farming enhance further to advances intelligent using (DSS) Systems Support Decision all for decisions real-time critical for algorithms aspects of irrigation and crop management AGRICULTURAL SAFE A THE IN CMT WITH ALTERNATIVE DESERT NEGEV some use Israel in farmers of 90% over Today, Israeli for impetus initial An system. CMT of form was ago years several CMT to move to farmers country, the in conditions security acute often the fields. agricultural in movement free preventing their maintain to possibility the farmers gave CMT relevant still is This lives! their also and livelihoods as such Netafim, of customers Israeli for today an Gaza, of north 20km just located Nirim, Kibbutz area troubled by missile fire and security hazards. cultivated is crops field of range A agriculture. on peanuts potatoes, including Nirim, Kibbutz at Other hectares. 2,000 over spread carrots, and orchard avocado the as such initiatives agricultural best the of some yield greenhouses Nirim's and the of one also is Nirim country. the in results Israel. in farms organic largest More importantly, CMT enables farmers to plan ahead, setting delivery delivery setting ahead, plan to farmers enables CMT importantly, More CROP MANAGEMENT TECHNOLOGY (CMT) CROP MANAGEMENT to restricted not are Netafim at agriculture sustainable and Innovation advanced developed also has Netafim sprinklers. and drippers dripperlines, systems irrigation complete of efficiency higher support to offering technologies processes, agricultural of aspects all of control computerized through Crop Netafim's agriculture. computerized fully of benefits the farmers manage their (CMT) allows farmers to control and integration Management Technology intelligent the through data field real-time valuable, on based crops fertilizer of agricultural variables such as water, monitoring and regulation using field- to unprecedented degrees of accuracy and micro-nutrient usage from any situation in the field.based sensors which transmit real-time data extensive knowledge of whatSuch systems provide farm managers with on climate conditions, wateris happening in the field, providing information performance. system and humidity, soil flow, real-time receiving while fields, the in needs expected meet to irrigation quantities of irrigation to modification ongoing ensuring and results of enabling feedback science, exact an into agriculture turn systems Such grow. plants as aspect of the growing process,advanced informed decisions about every quality yields with far fewerso that farmers can deliver maximum, higher in a planned and well- and instead – resources in an environmentally friendly way, time farmers' up frees CMT of use this, only Not process. managed http://www.netafimusa.com/agriculture/ h products/wireless-radio-crop-monitoring-tec

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 48 51 Netafim was asked to present a solution for for solution a present to asked was Netafim see to able were farmers the year, a Within phase, first this of success the Following FDS with now working farmers The SUPPORTING FAMILY FARMERS FARMERS FAMILY SUPPORTING BRAZIL IN populated mainly is Brazil of region northeast The on rely which communities farming with low the despite income, and food for agriculture develop to order in 2010, In region. the in rainfall Brazilian the economy, agriculture-based local the (a CODEVASF with collaboration in Government, Agency), Development Regional governmental in irrigation drip for FDS utilizing program a initiated Piaui state. Oeiras City, enable to area this of challenges irrigation the for vegetables grow to families low-income local the in sale for as well as self-consumption of capabilities the demonstrated Netafim market. government local the Thereafter, system. FDS the to them distributed and kits FDS 75 acquired families in the city. crops, their on system FDS the of impact the of yields quality higher and larger harvesting eggplant. and bananas squash, FDS of thousands purchased CODEVASF neighboring among them distributing kits, purchase to is plan overall The municipalities. 10,000 kits over three years. Agriculture “Irrigators the founded have which through association an – Association” and knowledge exchange can members experience in the area of drip irrigation. FDS is a gravity-based drip irrigation system utilizing Netafim’s low volume volume low Netafim’s utilizing system irrigation drip gravity-based a is FDS without system works using existing resources The drip-irrigation technology. every a sustainable solution for every small- guaranteeing FDS; a pump or electricity, the employ to required is knowledge technical No farmer. holding system, quickly enjoy the benefits of a hi-tech irrigation farmer can easily and package. compact a in delivered FAMILY DRIP SYSTEM – MAIN COMPONENTS COMPONENTS MAIN – SYSTEM DRIP FAMILY

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 50 53 IRRIGATION IN $1-A-DAY $1-A-DAY IN IRRIGATION TANZANIA IN COMMUNITIES land fertile a is Tanzania of region Kilimanjaro The Uchira the like sources water available with area main The water. underground as well as River been traditionally has area the in method irrigation rely village the in residents Most irrigation. flood over and survival, their for farming subsistence on 60% of them live on less than $1 a day. and Engineer Irrigation Zonal the 2010-2011, In project irrigation an initiated Council District Moshi project this of aim The Miwaleni. of village the in of production community the improve to was practices agricultural modern using by vegetables and variety seed preparation, land including modern irrigation technologies. 16 of area an in installed were Systems Drip each plots, hectare 0.4 into divided hectares, farmers family 40 farmer. single a by cultivated vegetables their grow to opportunity the took methods irrigation and cultivation advanced using project. this through provided

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 52 55 Another benefit of this recycling system is the the is system recycling this of benefit Another system recycling double this of challenges The The second use of the water is for irrigating irrigating for is water the of use second The and irrigation post drained is Water peppers. funneled to the next stage. of irrigation for is water the of use third The Lisianthus flowers. through injected are which fertilizers of recycling twice, recycled therefore are and system, drip the fish case, this In water. the as way same the in thereby well, as fertilizers as used are droppings efficiency. environmental increasing required conditions different the given many, are recycling the of each in water of use the for a is water from more getting However, stages. application this and Netafim of expertise core water minimize to potential the demonstrates consumption in innovative ways.

In a special project in Israel's Arava Desert, Desert, Arava Israel's in project special a In MORE WATER RECYCLING, MORE WATER WATER! LESS treated is agriculture in used water most Israel, In products its design must Netafim so wastewater, specification. of kind this for effective remain to often irrigation, for wastewater using for Except way a such in constructed is system irrigation an being by more or twice recycled is water the that to funneled and crop, one irrigating after drained irrigate a second crop. Uri challenge. bigger a yet on took Netafim for Netafim of customer a Hatzeva, from Malka to request a with Netafim to turned years, many two hold can that system irrigation an construct recycling 'cycles': The first use of the water is a fish tank. the in industry growing a become has Aquaculture for income of source important an is and Arava, the farmers in the area. In order to improve farming capabilities, and allow families families allow and capabilities, farming improve to order In year all drip, by crops their irrigate to farmers allows FDS with market to went farmers FDS of group first the 2010, In decided has Jharkhand of State the success, this of light In The State of Jharkhand is one of the most impoverished states states impoverished most the of one is Jharkhand of State The monsoon the during rainwater on largely rely Farmers India. in tribes, by owned often fields, The crops. their irrigate to season for search farmers as season dry the during abandoned are entire the throughout produce to unable are they Since work. for their families. farmers are unable to provide year, Development Rural Jharkhand's self-sustaining, be to tribes and in project experimental an on embarked (RDD) Department technologies farming and irrigation new introduced which 2009 Family Netafim's was project this of center the At skills. and the to systems drip the adapted Netafim (FDS). System Drip to also and area the in farms the of characteristics geographical made were kits FDS The farmers. the of capabilities financial the by financing 50% and price affordable an at farmers to available as support, technical and training provided Netafim and RDD the to how learn farmers helped which support agronomic as well maximize their yields. systems, The rain. on dependency their of them relieving round, acre one small, the for suitable are electricity, no require which experiment the Since terrain. uneven often the to and farms, good ensured have systems irrigation drip the commenced, peas, cabbage, cauliflower, as such vegetables of crops more. and cucumbers chili, tomatoes, Rs. to 25,000 Rs. between earned farmer Each produce. their Rs. the than more significantly is This crop. first the from 40,000 their working from earned had they income annual 500-1000 now are farmers The rain. monsoon on only relying when land to taken loans the repay and families, their for provide to able purchase the irrigation system. is Netafim farms. 100,000 cover to experiment this up scale in to farmers helping well, as project the of phase this in part taking all year round. with less water, Jharkhand to earn more money, CHANGING LIVES IN INDIA INDIA IN LIVES CHANGING

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 54 57 Celsius, ruining many tons of yield every year. Celsius, ruining many tons of yield every 0 In Spain, deciduous tree buds are extremely susceptible to the spring spring the to susceptible extremely are buds tree deciduous Spain, In Since the sprinklers method of frost protection requires high waterSince the sprinklers method of frost protection on trees peach 2000 over installed were sprinklers Gyronet the 2008, In COMBATING THE ADVERSE EFFECTS OF FROST FROST OF EFFECTS ADVERSE THE COMBATING and agriculture global in challenges common most the of one is Frost significant and cause agricultural losses and may lead to crop' destruction economic more example, for U.S., the In communities. entire to damage is hazard, freezing of crops than by any other weather losses are caused by protection Frost crops. to damage and losses in dollars of billions causing solution is to use sprinklers to re- a necessity in agriculture and an efficient the plant tissue temperature fromapply water frequently enough to prevent water. of pulses between point freezing below falling design to Netafim hired company, fruit Spanish a Melocotonero, El cold frost. the from orchards peach its protect to system sprinkler a as install reaching and spring, the in Catalonia of area the strike often which conditions low as -5 consumption, El Melocotonero used a Gyronet micro sprinkler with a with sprinkler micro Gyronet a used Melocotonero El consumption, full The micro sprinklers are capable of flow rate of 30 to 200 liter per hour. providing surroundings, its than rather tree the irrigating accurately 30% to up and water 50% to up saving while frost the from protection sprinklers. power consumption, compared to other sprinklers The tree. each covering sprinkler one with area, hectares 20 a been otherwise have would that buds the for protection tight enabled every peaches of tons 30-50 between saving frost, the by the for destroyed only not savings, in dollars of thousands to translates This prices season. keep helps also but orchards, these operating companies or farmers affordable for consumers in today's difficult economic conditions. FROST FROST FLAVORED PEACHES

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 56 59 Over 160 million hectares of corn are cultivated each year. year. each cultivated are corn of hectares million 160 Over of corn is over 818 million tons. Global annual production products food animals, and humans for food for used is Corn reduces and 44% to up by yield corn increases irrigation Drip • • • • NEBRASKA CORN drip subsurface first his installed Torell Kurt 2001, April In 600 irrigates Kurt Now, acres. 300 on system irrigation farming family 3,400-acre his manages Kurt drip. with acres and He Nebraska. Gresham, near Inc., Farms, T-T corporation, seed include crops Their corporation. the own Pamela, wife his corn, yellow corn, soybeans and grain sorghum. us getting is drip methods, irrigation other than water less “With the seeing even not we’re and profitability, of level next the to manual from switching of process the in We’re yet. potential full running system the Having management. zone automated to huge another be will automatically zones switching and to itself system the using start also we’ll that, After efficiency. in leap able be we’ll think I point, that At crops. the to nutrients deliver even not I’m And corn. for acre per bushels 300 to 275 yield to go can we far how see to excited I’m ceiling. the that’s sure Torell. Kurt drip.” with CORN: DID YOU KNOW? CORN: DID YOU SUPPORTING THE PROFITABILITY PROFITABILITY THE SUPPORTING FARMING FAMILY OF • Brazil, China, USA, are countries corn-producing main The countries. Mexico and several European • • alternative an ethanol, and sweeteners starch, oil, corn as such fuel. carbon low • water consumption by up to 30%.

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 58 61 OLIVE OLIVE AND OIL WATER DON'T MIX Olive groves are found mostly in Mediterranean countries, countries, Mediterranean in mostly found are groves Olive years. 1,000 than more for live can trees Olive trees. olive of varieties 900 than more are There producing for and eating for both used are Olives olives/hectare, tons 4.62 produce will trees olive Rainfed During 2010, Netafim designed and installed a sub-surface sub-surface a installed and designed Netafim 2010, During • • • • • SPANISH OLIVES SPANISH expanding steadily is cultivation europaea) (Olea tree Olive oil olive increased to response in countries, many in cosmetics, cooking, in used commonly is It consumption. oil traditional for fuel a as and soaps and pharmaceuticals, to led have benefits health of awareness growing but lamps, to seek Farmers years. ten past the during demand increased quality oil maintaining while costs reduce and yields improve especially reason, this For environment. the harming without find to common is it region, Mediterranean the throughout to orchards olive rain-fed raised traditionally of conversion the in farmers olive-growing many supports Netafim irrigation. drip several countries. Netafim Spain. Jaen, in grove olive an at system irrigation drip Manufacturing and Exporting an for system this developed in results best the reach to trials many following Company a to led trials The area. Jaen the of topography particular the entire the for system drip the of implementation successful solution Netafim's grove. olive the of hectares of thousands meters three over installed system drip sub-surface a was optimum create and economy water both achieve to deep and water of savings 30% providing growth, for conditions fertilizer whilst increasing yields. OLIVES: DID YOU KNOW? OLIVES: DID MAKING THE HEALTH BENEFITS OF BENEFITS THE HEALTH MAKING ACCESSIBLE OLIVE OIL MORE • Greece and Italy Spain, are countries producing leading the and Australia, in rise the on are plantations Oil Olive modern while of production global Annual countries. other and Argentina over 19 million tons. olives is estimated at • • • a with diet, Mediterranean the of part essential an – oil olive high nutritional value and many health benefits. • tons 12.57 produce will irrigation drip with irrigated trees while olives/hectare.

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 60 63 m Ürünleri A., one of the largest meat meat largest the of one A., Ürünleri m , a Company with specific tomato expertise. expertise. tomato specific with Company a , Tomato is the world's most popular… fruit! is the world's most Tomato in 700 AD in South America. were first cultivated Tomatoes varieties of tomatoes. There are over 7000 and produced are tomatoes of tons million 150 About USA, China, are countries producing tomato five top The • • • • • After obtaining successful results, Harranova experimented experimented Harranova results, successful obtaining After targeted subsequently and tomatoes of types various with land, of hectares 1,000 on 2008 in production tomato gradual per tons million 1 of production total to increasing gradually with Haranova assists Netafim 2012. by tomatoes of year Netafim using solutions systems irrigations full and design yield tomato The technology. management crop and products less 30% requires and hectare per tons 100 approximately is traditional than fertilizer less 25% and labor less 30% energy, methods. irrigation ı Harranova Besi ve Tar the into out branched Turkey, in companies breeding cattle and The by investment an following paste tomato of production Tomatoes worldwide. producer paste leading a Star, Morning of risk lower a with associated is which lycopene, in rich are consumption and disease, cardiovascular and cancer prostate the in lycopene of absorption the increases form paste in potential the has availability paste tomato Advancing body. experimental an 2006, In benefits. health significant for hectares 350 on initiated was plantation tomato industrial Konserve Tat by provided coordination substantial with Ş San. ve Tic.A. TURKISH TOMATOES TOMATOES: DID YOU KNOW? DID YOU TOMATOES: GROWING TOMATO PASTE WITH WITH PASTE TOMATO GROWING ADVANTAGES HEALTH • • • • year. consumed globally each • Egypt. India, Turkey,

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 62 65 HOW ABOUT A DATE? Chinese dates are also called Jujube or Tsao. Chinese dates are also a cultivation history of over 7,000 years. Chinese dates have producing country. China is the largest Jujube Netafim was the selected partner and, within a few months months few a within and, partner selected the was Netafim • • • in 2010, covered a 200,000 square meter dry field with with field dry meter square 200,000 a covered 2010, in Dates Chinese with planted were fields The dripperlines. date of rows the between growing watermelons with (Jujube), with farmers providing and land the of use maximizing palms, field The harvest. for ready were dates the until income early plots small into farmers 6,000 than more between divided was for livelihood reasonable a providing each, hectares 2.5 about of water 90% massive delivered solution Netafim's farmer. each fertilizer in reduction 30% a and irrigation flood versus savings sustainable the for irrigation drip of contribution The use. surrounding the and City Zhongwei of residents of lifestyles in investment the than more far worth be to proven has areas the drip irrigation systems themselves. YELLOW RIVER DATES YELLOW RIVER in Province Ningxia the in City Zhongwei of area the in Farmers dry, their in supply water dwindling a from suffer to began China on solely almost rely area this in Residents landscape. desert water situationagriculture for their livelihood, and a deteriorating increased, desertification As life. of way entire their threatened the around, source water only the on rely to needed farmers transporting water to their fields for flood irrigation. River, Yellow diverting and wasteful inefficient, solution, poor a was This the on relied also which downstream, villages the from water the address to attempt an In subsistence. their for River Yellow reviving for subsidies provided government Chinese the issues, solution. irrigation drip a using area the in agriculture YOU KNOW? DID CHINESE DATES: COMBATING DESERTIFICATION IN IN DESERTIFICATION COMBATING CHINA NORTHWEST • • •

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 64 67 This sugarcane plantation has not only turned this desert region green, but performs programs, education operates plc Energy Maple While The Netafim drip irrigation system has enabled both the "greening" and and MORE THAN JUST GREEN "greening" the both enabled has system irrigation drip Netafim The Netafim-Peru Thirty region. entire the of development socio-economic the employees temporary 150 with together project, this on worked employees Netafim's with accordance In communities. nearby from Netafim by hired with them Maple, all employees worked underemployment policy and its contract with providing training, appropriate received and conditions, labor lawful experience and skills for life. has contributed to the development of the surrounding communities. Over operations once communities neighboring the to available be will jobs 3,000 commence. to expertise own its contributes Netafim more, and work infrastructure on locals train and equipment provide gardens, and landscape $20,000 develop about donated has Netafim irrigation. drip and agriculture advanced worth of dripperline equipment for this purpose as a demonstration of Netafim's commitment to sustainable productivity in emerging economies. In 2010, Netafim commenced an important important an commenced Netafim 2010, In collaboration with Maple Energy plc for the the for plc Energy Maple with collaboration in production ethanol for cane sugar of growing located is plantation cane The Peru. City, Piura arid and soil sandy the where area, desert a in and vegetation, for favorable not are conditions During irrigation. drip without grow cannot plants 500-700 install to worked teams Netafim's 2011, entire the cover to order in month a hectares sub-surface advanced an with hectares 8,000 2011, December By system. irrigation drip installation and installed were hectares 7,200 2012. January in completed be to scheduled is sugar of tons 150-200 is output estimated The other than efficient more much hectare, per cane ton 70 produce typically which methods irrigation in 40% of saving comparative a with hectare per water consumption. A global rising demand for sugar products products sugar for demand rising global A Sugar cane is the world’s primary sugar crop. crop. sugar primary world’s the is cane Sugar tons million 1,450 at stands production Current worldwide. hectares million 22 from cane of hundred one than more in grown is cane Sugar tropical and subtropical temperate, under countries within presence its to addition In conditions. enormous gaining is crop this industry, food the for Brazil, industry. biofuel the in significance production cane sugar its of 48% uses example, replace to fuel alternative an ethanol, produce to countries other Many fuels. fossil on dependence for crop biofuel a as cane sugar use to plans have ethanol production. more for need the highlighting ethanol, and Netafim led has farming, cane sugar in efficiency irrigation drip using solutions targeted deliver to companies with working is Netafim technologies. South and Central and India, Africa, in growers and cane sugar increased support to order in America efficiency. SUSTAINABLE FUEL AND MUCH MUCH AND FUEL SUSTAINABLE PERU IN MORE

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 66 69 o Francisco, Brazil’s longest national national longest Brazil’s Francisco, o The source for Agrovale's irrigation water is is water irrigation Agrovale's for source The in 2006 to implement drip irrigation in additional additional in irrigation drip implement to 2006 in Agrovale years, 5 past the of course the In plots. currently area, irrigated drip its increased has to expand to plans with hectares 3000 at standing 6,000 hectares within three years. the Rio Sã from kilometers 3,000 almost runs which river, until Brazil northeastern the throughout source its is river the from Water Atlantic. the into flows it built canals through areas agricultural to diverted the develop to project government a of part a as decrease a for allows irrigation drip Using area. which agriculture for consumption water in local to supplied be can water more that means living daily and use industrial other for populations requirements. O Agrovale first began experimenting with drip drip with experimenting began first Agrovale Agrovale, a Brazilian producer of sugar and and sugar of producer Brazilian a Agrovale, sugarcane of hectares 16,000 over has ethanol area region poor traditionally and semi-arid the in of part As Brazil. of east north the in Serato of sustainable more to commitment Agrovale's irrigation different exploring began it production, irrigation flood traditional their replace to systems methods. plot. hectare 51 small a with 1999 in irrigation drip of effects positive the examining After Brazil Netafim hired Agrovale crop, the on irrigation MAKING THE RIO SÃ FARTHER GO FRANCISCO BRAZIL IN and bioenergy producer, which operates sugar cane fields fields cane sugar operates which producer, bioenergy and

sugar

The unusual aspect of this project on behalf of Mitr Pohl is the fact that The drip systems have delivered outstanding results, demonstrating and knowledge to Mitr Phol Sugar Corp, Thailand and South-East Asia's equipment, service supportDuring the past 6 years, Netafim has provided Asia's South-East and Thailand Corp, Sugar Phol Mitr to knowledge and biggest in of sugar and ethanol. Netafimthroughout the country for the production hectares of thousands on systems irrigation drip with Phol Mitr supplied Thailand's north east and west region. aiming to develop and supportNetafim provided Mitr Phol a range of services and This included designing the layoutthe company's transition to drip irrigation. technical providing and system the installing field, the on system the of years. the through support agronomical some of the sugar cane fields were owned and operated by small/medium irrigation advanced in education and training needed that farmers contract systems (other farms are Mitr Phol owned). Using Netafim experience in implementing such systems worldwide, and with the help of local staff, successfully farmers the and bridged were gaps cultural and barriers language learned to operate the systems. a significant increase in yield, showing an average of 90 to 130 tons per which while the national average is 60 tons per hectare per year, hectare per year, fertilizers, fewer use fields the Furthermore, 50-100%. of increase an translates into a cost saving of 20-30% per ton of sugarcane. DOUBLING SUGAR CANE PRODUCTION IN THAILAND

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 68 71 NO-SOIL GROWING IN CHIBA CHIBA IN GROWING NO-SOIL grower private a Japan, in prefecture Chiba the In growing for greenhouse hectare one a maintains grown are crops These peppers. and tomatoes which system artificial an culture, soilless a in and nutrients for reservoir a with crops provides excess the enables system irrigation The water. reused and treated collected, drained, be to water in the soil- Water for irrigation in the greenhouse. certain kills that level a to sanitized is system less the damage might that fungi and bacteria of types irrigation for used then is water same The crops. automated fully a in greenhouse same the in process. GREENHOUSES GREENHOUSES different from made sizes, and shapes all of Greenhouses, climate and needs growing accommodate to materials in irrigation drip to supplement necessary a are conditions, solutions tailored Providing less. with more grow to order greenhouse advanced through challenges agricultural to greenhouse of range wide a offers Netafim technology, All conditions. climate of range diverse a for suitable structures, for standards international meet structures greenhouse Netafim comply and challenges meteorological other and wind snow, standards. industry with GREENHOUSES IMPACT NEGATIVE ZERO JAPAN IN most the for systems technology closed offers Netafim All Japan. in use in currently are which greenhouses advanced part form chemicals and fertilizer water, crops, including inputs impact negative zero a has which circuit closed completely a of Factory Green the in participates Netafim environment. the on research for government Japanese the by supported program impacts. environmental improving for technologies green on a significant inclusionThe zero negative impact greenhouses are in this program. WINE WITH A TECHNICAL ADVANTAGE ADVANTAGE TECHNICAL A WITH WINE IN FRANCE and, a winery in the Montpellier region of France Gerard Peyrot operates optimize to irrigation vineyard for solution new a seeking was 2008, installed in Netafim quality. improved and cost-effectiveness for production Results of CMT irrigation system in 40 hectares a complete, fully computerized application. particular this for technology specialist using yields and vineyards, faster grew vines the quickly: very Peyrot Gerard to apparent were 40%. – 30 by improved

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 70 73 GREEN WALLS AND BALCONIES AT AT BALCONIES AND WALLS GREEN several SINGAPORE ORCHARD CENTRAL MALL, features Singapore, in area shopping central a in located mall, The green areas including balconies and walls that help lower the temperature of the building while greening the urban environment. THE PASONA O2 ECO BUILDING BUILDING ECO O2 PASONA THE its IN TOKYO, JAPAN covering Farm Urban acre 4 a with eco-office an is building Pasona The plants. of kinds 200 over contains farm The and floors. and floor walls first building's the of feet square 1,000 covers paddy rice indoor The a year. is harvested three times SEIBU - PROJECT WALL GREEN TOKYO, JAPAN STORE IN DEPARTMENT by departmentcreating a "green" wall for Seibu, a famous Netafim took part in conditioning air of consumption energy decreases This Tokyo. in store electricity in 15% saving store, the of wall main a in vegetation combining consumption in peak months. TUNNELS BREATHING THE IN KOREA the tunnels have air circulators that circulate the air within the tunnel. Traffic enrich to ways entry tunnel's the in strips" "green created has Netafim circulated air with oxygen. STUDIOS, UNIVERSAL AT ROOF GREEN SINGAPORE rain roofs totaling 30,000 square meters are the largest green roof Twenty-five including irrigation, drip Netafim's use roofs The Asia. East South in area maximum water savings efficiency. water harvesting tanks and sand filters for during 38c to 70c from temperature the reduced have roofs green The of water daily versus a sprinklerpeak sun hours and save 180 cubic meters system. 82 74 MORE REGIONS 53 DEVELOPED 85 76 LATIN LATIN AMERICA 42 CARIBBEAN 55 37 ASIA 17 Netafim's precision irrigation technologies have have technologies irrigation precision Netafim's irrigation techniques can provide solutions to turn turn to solutions provide can techniques irrigation sustainable for opportunities to in urbanization of wonders the of appreciation an bring and living many which in jungles concrete the to back nature children now spend their childhoods. low-carbon developing in play to role significant a carbon urban the reducing and living inner-city In burden. consumption water and emission technology this deployed have we years, recent to solutions provide to ways innovative several in different urban challenges. 54 37 AFRICA 15 61 47 WORLD 29

Drip irrigation is mission-critical for sustainable sustainable for mission-critical is irrigation Drip precision applications, landscape in but agriculture Home results. spectacular deliver can irrigation sports and football courses, golf gardens, landscapes, city areas, recreation parks, pitches, built our of aspects all are landscaping highway dwelling urban make to help which environment decidedly and pleasant more aesthetic, more population world the With sustainable. more urbanization as cities the into heading increasingly by regions developed in 82% reach to estimated is city-dwelling our make to ways seek all we 2030, our with compatible more comfortable, more As productive. more and lifestyles consumer busy especially levels, chronic reaches pollution urban precision cities, economy emerging crowded in

2030 (Projected) 2000 1950 Source: united Nations, World Urbanization Prospects: The 2003 Revision (medium scenario), 2004. TRENDS IN URBANIZATION, BY REGION URBAN (%) POPULATION

LANDSCAPE IRRIGATION FOR FOR IRRIGATION

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 72 75 To address this problem, traffic tunnels have air circulators circulators air have tunnels traffic problem, this address To fast have that plants with designed are strips green The THE GREEN WALL AT SEIBU SEIBU AT WALL GREEN THE TOKYO STORE, DEPARTMENT for wall "green" a of creation the in assisted Netafim 1995 In Ikebukuro the in Stores Department Seibu of store flagship the decrease to was project this of objective The Tokyo. in district square 50,000 this conditioning air of consumption energy the the of wall main a in vegetation combining by store a meter delivering place, in still is wall the later, years 15 Over store. green the between Celsius degrees 5 of difference temperature in consumption electricity in 15% saving walls, other and wall peak months. TUNNELS, KOREA THE BREATHING traffic in pollution for solution a provides Netafim Korea, In tunnels, caused by toxic gases. created has Netafim tunnel. the within air the circulate that circulated the enrich to ways entry tunnel's the in strips" "green air with oxygen. as well as oxygen, produce efficiently to order in photosynthesis topography. local the of needs the meet UNIVERSAL AT ROOF GREEN STUDIOS, SINGAPORE south the off casino-resort a is Singapore Studios Universal 2011. in opening grand its celebrated which Singapore of coast phase, design the In park. movie-theme first Asia’s also is It visitors park's the protecting – challenge a faced Studios the and strong mid- waiting for rides in the hot tropical weather The round. year all 23-36c of temperatures reaching sun, day visitors. the shelter to hangars air-conditioned was solution over totaling roofs, green with equipped were hangers The and costs conditioning air reduce to meters, square 35,000 drip installed and designed Netafim consumption. energy control sophisticated with roofs, the for systems irrigation the for fertilizers and water of balance a maintain to systems and tanks harvesting water rain as well as greenery and plants system The efficiency. savings water maximum for filters sand thus irrigation, precision with rainfall natural complements roofs green The irrigation. over preventing and water saving c 70 from hangars the within temperature the reduced have than (rather irrigation drip and hours sun peak during c 38 to liters). (180,000 daily water meters cubic 180 saves sprinklers) and automated is it as hours, labor saves also irrigation Drip requires little maintenance. IS THIS AN AN THIS IS OFFICE? OR A FARM? OR BOTH? complexity of cultivating plants and rice on diverse diverse on rice and plants cultivating of complexity the with that demonstrated Netafim surfaces. ceilings the in grow can plants technology, right use. their with interfering without rooms of delivers irrigation precision Netafim's Additionally, applications. agricultural in as yields, optimum three harvested is example for paddy rice The regular under year a once than rather year, a times The yield. annual higher a delivering conditions, building's Pasona the decreases Farm Urban CO2 tons 2 estimated an by emissions carbon is building Pasona the Furthermore, year. per Staff employees. for environment exciting an and paddy rice the to tending in turns take This plants. the nurturing and vegetation other of sense a communication, skills, team builds environmental and enthusiasm commitment, responsibility.

The unique nature of this project brought brought project this of nature unique The The Pasona O2 building in Tokyo, Japan was was Japan Tokyo, in building O2 Pasona The 4 a with eco-office an is and 2009/2010 in created The floors. and walls its covering Farm Urban acre including plants of kinds 200 over contains farm cucumbers, eggplants, peppers, tomatoes, paddy rice indoor The rice. and beans radishes, first building's the of feet square 1,000 covers yielding year, a times three harvested is and floor is building the in grown produce All rice. of 150kg involved was Netafim restaurant. staff the in used stages, planning first the from project this in consultation technical and agronomy providing drip Netafim's with building the equipping and systems. irrigation of channeling ensuring as such challenges, building's the of each to fertilizers and water the and way efficient most the in floors nine

IN TOKYO ECO BUILDINGECO THE PASONA 02 PASONA THE

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 74 77 For more about the Mantos Blancos mine, see: www.mining-technology.com/projects/ mantos-blancos

. This equipment ensures small water droplets that protect TM Today, almost 50 hectares are irrigated with Netafim's drip irrigation almost 50 hectares are irrigated with Netafim's Today, agglomeration properties and offer high levels of uniformity. Similarly, lower Similarly, this agglomeration properties and offer high levels of uniformity. in conservation water improved means Gyronet by offered evaporation availability. water low with area solutions, offering superior performance and better environmental outcomes, region. the in use domestic for availability water increasing and IMPROVING WATER EFFICIENCY EFFICIENCY WATER IMPROVING mines IN COPPER MINES copper operating company, mining African South a is American Anglo leaching heap the use mines American Anglo The 1980. since Chile in the the mines are located in desertin process with drip irrigation. However, equipment Existing scarcity. water and evaporation high with areas leaching process was causing problems in the ore agglomeration process. Anglo American's Mantos Blancos copper mine is located 30 miles from the Chilean port city Antofagasta and is 800m above sea level. Netafim Netafim's solution: new a offered and Blancos Mantos at site the visited Gyronet Turbo The mined ore is crushed into tiny chunks and heaped on an impermeable THE PROCESS OF HEAP LEACHING impermeable an on heaped and chunks tiny into crushed is ore solution mined The leach a with irrigated be may it where pad leach lined clay or plastic is used to minimize evaporation.to melt the valuable metals. Drip irrigation precious the out leaches and heap the through percolates then solution The dissolved the having solution leach The weeks. many take can This metal. metals is then accumulated. Drip irrigation technology has also been found to be highly effective and and effective highly be to found been also has technology types irrigation several Drip of extraction the for industries extractive the in water-efficient called is precious metals or copperof precious metals. The process of leaching irrigation, drip or sprinklers using ore, mined the from compounds copper, the mining of gold, silver, Heap Leaching. Heap leaching is used in producing for processes industrial the all Of lithium. and nickel uranium, by concentration method, common most the including ore, from one is metals method Leaching Heap the mixtures, chemicals uses which precious all of flotation, 15% about Today, efficient. water and effective most the of pressure under trend, general The leaching. heap uses extraction metals agricultural of diversion minimizing to costs reclamation and closure from is to reduce the amount ofland and encouraging sustainable development, mining. by impacted land IRRIGATION FOR FOR IRRIGATION EXTRACTIVE THE INDUSTRY

To read more about the Skyrise To Greenery Awards: www.skyrisegreenery.com/index.php/home/ awards/skyrise_greenery_awards_2009 for for

Orchard Central Mall won 1st Prize in the the in Prize 1st won Mall Central Orchard

The Mall features three large living walls totaling totaling walls living large three features Mall The Modules Greening Vertical walls green The drip Netafim a with irrigated are walls green The to working is Singapore years few past the In by efforts greening these recognize To Orchard Central Mall is a vertical, 11 storey storey 11 vertical, a is Mall Central Orchard one – Road Orchard at located mall shopping and retail fashion, renowned Singapore's of entertainment areas. the on walls green lower two meters, square 160 meters, square 45 totaling terrace roof floor 12th tropical with complete rooftop the at garden a vertical various and ground, the on landscaping An pond. biological a as well as offerings greenery and walk discovery street shopping air-conditioned accessible are floor 12th the on garden rooftop the to the public 24 hours a day. comprising system modular the provide (VGM) lightweight soil-less with filled bag geotextile a nursery a in pre-planted media, planting environment to allow for plant establishment. and (balconies areas green other the and system, UniTechline Netafim with irrigated are rooftops) in use for especially designed dripper a – AS projects. landscape areas green incorporating encourage and promote proved have efforts These building. rise high in its for known well is city the today and successful, Greenery". "Skyrise Singapore the architects and owners developers, Parks National and Architects of Institute 2009, In Awards. Greenery Skyrise the created the awards, the of category Projects Completed GREEN WALLS AND AND WALLS GREEN ORCHARD AT BALCONIES SINGAPORE CENTRAL MALL, outdoor green balconies and extensive greenery, greenery, extensive and balconies green outdoor inside and out.

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 76 79

In addition to our contribution to the Earth's sustainability and the the and sustainability Earth's the to contribution our to addition In those particularly globe, the around communities of life of quality business our manage to strive we Netafim, at economies, rural in way. responsible a in operations environmental and social economic, direct our consider to aim We their understand to hard work and stakeholders our all on impacts traditional the of out Born business. a as us of expectations ongoing we culture, participative and collaborative democratic, Kibbutz way. same the in stakeholders with relationships our approach and aspirations stakeholder address and engage listen, to aim We practices. and plans business our in concerns examine, listen, we way the describe we report, this of Three Part In the In business. own our grow and lead manage, assess, decide, our so less, with more grow to farmers teach we that way same less. with more do to objective an on rests philosophy business the using business our running means this terms, sustainability In employees our engaging while resources of level possible of lowest development the ensure to potential their of level highest of the at delivery and applications innovative technologies, ever-improving all our business objectives in the service of our customers.

WITH LESS DO MORE PART THREE THREE PART

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 78 81 PERSPECTIVES FROM NETAFIM'S CHIEF CHIEF NETAFIM'S FROM PERSPECTIVES OFFICER SUSTAINABILITY What does sustainability mean to you personally? environment their enjoy will grandchildren my That Barak: Naty age. in the same way that I did when I was their sustainability global the in difference a make Netafim does How arena? most pressing challenges are water scarcity Naty Barak: Today's erosion, soil and reduction land arable depletion, aquifer and energy and emissions, gas greenhouse and change climate irrigation Drip this. to add concerns safety Food constraints. challenges these all where point the addresses holistically the offering been has Netafim inception, its Since intersect. production food maximizing - Productivity Sustainable world while minimizing environmental impact. sustainability in advances major Netafim's as see you do What during the past two years? agriculture sustainable of message the Spreading Barak: Naty sustainability embedding while water of use efficient and manufacturing our all in operations, direct own our in practices plants. progress? sustainability of terms in Netafim for next is What to farmers training Revolution: Drip the Leading Barak: Naty and smallholders among capacity building less, with more grow adapting basic food crops and commodity crops to drip irrigation while harnessing our technology for food security.

The CSO works at the interface of the Netafim organization, aligning aligning organization, Netafim the of interface the at works CSO The to the Netafim ManagementProgress on sustainability issues is reported Responsibility for sustainable practices lies with the entire Netafim OUR APPROACH APPROACH OUR Netafim's by directed are programs and strategy Sustainability a has Netafim's CSO The CEO. the to reports who (CSO), Officer and Sustainability Chief forums international in Netafim representing hand, one the on role: addressing dual sustainability, of advancement the for partnerships internal collaborative guiding hand, other the on and, scarcity water as such issues global managed in a sustainable way. strategies to ensure Netafim operations are global Netafim all with working processes, business global in policies in sustainability embedded are principles sustainability ensure to heads, by functional offered solutions and products all that ensuring while practices, and to farmers, growers and otherNetafim's global field teams are delivered sustainable productivity. customers in a way which advances their the by agreed are goals and strategy annual and basis regular a on has Manager Team HR local a plant, Netafim each At annually. Team managing Management processes, and practices sustainability embedding for responsibility engaging for programs local advancing and communications sustainability employees in the community. strategy driving in lead the takes CSO The Team. Management is Executive CSO The business. Netafim's throughout implementation and development which often the "voice" of Netafim's sustainability programs and represents Netafim with organizations of groups working and meetings policy global at engaged. closely is Netafim

AT NETAFIM AT SUSTAINABILITY SUSTAINABILITY MANAGING MANAGING

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 80 83 $ 686 4956 3265 4085 3730 % 68 400 234 440 348 Revenue Increase ($) 6171 1685 4657 5013 4800 Revenue Revenue ECONOMIC IMPACT THROUGH THROUGH IMPACT ECONOMIC BEVERAGE AND FOOD GLOBAL MANUFACTURERS impact economic indirect further a has Netafim understand to work manufacturers food global as environmental and economic the improve and food Global chains. supply own their of impacts upstream work manufacturers beverage and the of suppliers local their with engage and different their for materials raw agricultural main global such supports Netafim requirements. on advising manufacturers, beverage and food these assist to technologies advanced most the establishing and defining in manufacturers global of capabilities the enhancing and standards and economic most the in producers local their way, this In manner. responsible environmentally range wide very a reaches Netafim of impact the sustainable the advances and products food of industry. food entire the of productivity FDS (Kg) Yield Yield 7200 2950 8150 7800 11200 ($) 999 928 1215 1392 1070 Revenue Revenue Conventional (Kg) Yield Yield 2000 2000 3000 2000 3000 Similar examples can be found in every single single every in found be can examples Similar Crop Tomatoes Melons Eggplants Lettuce Cabbage ECONOMIC EMPOWERMENT EMPOWERMENT ECONOMIC THROUGH WOMEN FOR AGRICULTURE Netafim for impact of area notable further, A in women of empowerment economic the is key often are women as economies, emerging players in rural agriculture. In India, for example, agriculture, on based primarily is economy whose 70 about and food of producers major are women By women. by performed is work farm of percent agriculture, to systems irrigation modern bringing to women of empowerment the supports Netafim income family the to effectively more contribute the reducing while life, of quality the raise and to them enabling women, on work farm of burden responsibilities family other to time more devote time. leisure some enjoy even and emerging market in which Netafim is active. The The active. is Netafim which in market emerging supporting in Netafim of contribution economic is solutions productivity agricultural sustainable undisputed. The economic benefits of drip irrigation are are irrigation drip of benefits economic The ECONOMIC IMPACT IN ECONOMIC IMPACT MARKETS EMERGING favors significantly contribution economic Netafim's Israel, In markets. emerging and areas peripheral and low-income in located are plants Netafim's important an represent and areas low-employment for well-being economic and employment of source as well as plants, the around regions the in families economy national the to contribution considerable a Netafim's globe, the Around Israel. of State the of other and India in communities rural in prominence remote underprivileged that means countries adopt to ability the through life to come villages agriculture. sustainable viable, in practices new families, their feed to able being barely From now are markets emerging in farmers countless income generate and themselves support to able cases, many in and produce, their of sale the from Netafim's people. local for employment provide emerging in growth sustainable to commitment and local the to contribution major a is economies economies. global a Swaziland, in example, For clear. unequivocally independent an by conducted audit post-investment cane sugar hectare 11,600 an of company UK confirmed Estate Sugar Simunye the at plantation of saving water and 15% of increase sucrose a system. sprinkler former the to compared 22% examined was benefits cost of example Another shows chart following The Niger. Niamey, in five on based revenue and yield in increase the a for plot m2 500 a in planted species vegetable the Given year. per seasons production two of total hundred some of system FDS the of cost purchase their return easily to able are farmers only, dollars to continue and year first the within investment benefit. economic additional significant enjoy

Additionally, Netafim makes a direct economic economic direct a makes Netafim Additionally, in million $800 over generated Netafim 2011, In contribution through the conduct of its daily daily its of conduct the through contribution and revenues of generation the through business stakeholders. Netafim to wealth of redistribution 2010. versus growth 32% represents which sales, The primary economic contribution of Netafim's Netafim's of contribution economic primary The advancement the is world the around operations drip on based techniques agricultural efficient of impact economic this of scale The irrigation. and worldwide farmers of thousands reaches As support. they communities and families the increases, output agricultural for demand global the oft- as the world's population grows towards reserves energy finite as 2050, in billion 9 quoted as rising, are costs energy and reducing are already is land productive world's the of all nearly in living people of number the as and exploited six-fold increase to set is countries water-stressed water continuing to due generation next the within cost the in rise predicted with coupled scarcity, agricultural and industrial domestic, for water of a maintain and food provide to ability the use, challenging more become will life of quality decent stress unprecedented placing costly, more and world's the and ecosystem global entire the on the at is contribution Netafim's populations. reducing points: pressure these all of intersection reducing land, arable of use the optimizing energy, increasing and resources agrochemicals and water Revolution, Drip the of effects the are supply food but productive more agriculture making only not Farmers affordable. more outputs agricultural also to able are systems Netafim's using growers and to up and income in increase 50-100% achieve stress economic turning costs, in reduction 40% opportunity. sustainable into

IMPACTS ECONOMIC ECONOMIC NETAFIM'S NETAFIM'S

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 82 85

Kibbutz society, at its origin was based on the sense of common need and and need common of sense the on based was origin its at society, Kibbutz still company the of development the underscored that spirit Netafim The OUR APPROACH APPROACH OUR to back goes This less. with more doing to committed are people Netafim Kibbutz origins when Kibbutz based on its the founding spirit of the Company, vital other or out of the often barren desertmembers pioneered ways of making more oil water, as such resources natural of lack the Israel, of lands innovative and consumption in modest be to forced were and materials, raw many in automated drip irrigation, forin design. One of the necessary drivers for security of lack and war of outbreak given that, fact the was example, as so country's independence in 1948,parts of Israel after the declaration of the remotely output agricultural their maintain to ability the needed farmers presence in the fields.not to endanger their lives through physical receiving while can they what contributing everyone with resources, shared Kibbutz phenomenon has somewhatwhat they need. While the nature of the of Kibbutz industries, with privatization and commercialization was changed today, culture This remains. movement Kibbutz the built which culture the In belonging, motivation, decisiveness,rooted in family values, pride, a sense of contribution. and responsibility personal of sense deep a and achievement, recruited from among the Kibbutzthe early days, Netafim employees were the Company's workforce is recruited from the open market ranks but today, as well as from the pool of skilled Kibbutz members. Close to 300 Netafim employees in Israel (30%) are Kibbutz members. inclusive hierarchy, loose communication, open by characterized is and thrives responsibility. personal and processes making decision

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GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 84

HIP N ERS E

LE M LE

B A N

N D

E R O I

V E R

T I

C U

T U E

As Netafim's business grows and and grows business Netafim's As

RESULTS S BUSINESS BUSINESS

P E

R N

P I E Ensuring more effective communication and and communication effective more Ensuring M S U In order to be more effective, managers need development In order to be more Improving leadership capabilities requires increased increased requires capabilities leadership Improving B Establishing a comprehensive learning infrastructure forEstablishing a comprehensive learning infrastructure Leadership capabilities: Leadership capabilities: Manager Effectiveness: engagement and retention: Increasing employee Improving Sales Skills: Increasing Global Collaboration: • • • • • HR'S CORE OBJECTIVES FOR 2011-2014 INCLUDE FOR 2011-2014 OBJECTIVES HR'S CORE understanding of Netafim's leadership model through a new leadership competency competency • leadership new a through model leadership Netafim's of understanding change in Netafim's global operations. program to drive behavior potential management • identify to able be to tools needs leadership Netafim and planning training manpower and review performance through accurately more and quickly more processes. employee captures • Netafim that ensure to important is it nature, in global knowledge more becomes contribution, meaningful growth, personal for opportunities and provides and employees all needs of engagement full the ensure to remuneration targeted and sharing stability. management • growth, especially in emerging economies. sales force is critical to future Netafim’s ensuring to • key is units business global all and HQ Netafim between collaboration global business objectives.alignment of Netafim's activities to achieve HUMAN RESOURCES RESOURCES HUMAN NETAFIM AT MANAGEMENT Human for VP the by led is Netafim at Management People Executive Company's the of member a is who Resources business Netafim support Managers HR Team. Management HQ-based small a through and regions business in operations department Resources Human the 2010/2011, During staff. ensure to order in revision strategy HR global a undertook with aligned is time over needs resourcing Company's the market changing and expansion business global Netafim's is Netafim ensure to was strategy HR this of core The realities. globally a in operation global truly a become to positioned well and time redefining is technology where market, competitive businesses and engine growth new the is knowledge space, Human key Netafim's borders. without world flat a in operate culture, global a driving as defined were challenges Resources people. empowering and leadership enabling

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 86 89 Total Full Time Equivalents 907 796 184 138 96 103 745 2969 Employees by Region at 31st December 2011 Employees by Region The Netafim workforce is dominated by a high percentage of of percentage high a by dominated is workforce Netafim The Country India Israel USA Mexico Australia Brazil Rest of the World Total NETAFIM EMPLOYEES BY REGION BY EMPLOYEES NETAFIM the around subsidiaries 33 in based are employees Netafim largest the being Israel in 27% and India in 30% with world, 100 over have Brazil and Australia Mexico, USA, groups. around spread is remainder the and country each in employees emerging and developed in less with more delivering globe, the markets. agronomists and agricultural specialists which contribute to the the to contribute which specialists agricultural and agronomists development of Netafim innovative technologies and application crops. new in 767 960 1268 2995 Total Full Time Total 2995 16 84 5 3 8 14 8 3 35 46 Percentage of Managers By Gender 2011

Total Managers Total Female Male term contracts, though there is some seasonal seasonal some is there though contracts, term agricultural of sensitivity the on depending shifting world. the around cycles crop different for activity of stability maintains Netafim however, general, In year. the throughout workforce core the Part Time Employees Part Time Managers as Percent of Total Workforce Managers as Percent of Total 759 957 1233 2949 Percentage of Managers by Role 2011 2995 16 84 Full Time Employees Full Time Full time equals 9 months per year and 30 hours per week Full time equals 9 months per year and 30 Number of full time / part time employees at year end 31st December 2011 part time employees at year end 31st December Number of full time / Percentage of Employees By Gender 2011 Total Managers Total Female Male Role Sales Staff Total Head Office Staff Plant Employees Country Country Country Head Office Plant Sales Offices Total Netafim employs close to 3,000 employees employees 3,000 to close employs Netafim in based are 42% which of world the around offices Sales local in 32% Offices, Head Country in employed are 26% and world the around operations. logistics and manufacturing Netafim's indefinite on employed are employees of 100% NETAFIM EMPLOYEES EMPLOYEES NETAFIM

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 88 91 Regular contribution to achieving Netafim's goals and personal objectives. Continuous improvement in work processes and quality of work output. Outstanding teamwork. Demonstration of innovative thinking. Typical benefits packages in addition to salary for Netafim permanent packages in addition to salary for Netafim benefits Typical • • • • EMPLOYEE RIGHTS AND FREEDOM FREEDOM AND RIGHTS EMPLOYEE ASSOCIATION OF and association of freedom to employees of right the supports on Netafim hired are employees Netafim all practice, In bargaining. collective and personal contracts and are not members of employee representative bodies. management of policy door" "open rights, employee for respect Netafim's high involvement of employees in business decisions has generally meant that Netafim employees have not felt the need to form an association to rights. their protect EMPLOYEE REWARD AND RECOGNITION RECOGNITION AND REWARD EMPLOYEE local in competitively and equitably fairly, employees reward to aims Netafim salary base a receive employees All operates. Netafim which in markets countries of than the legal minimum wage in all which is equal to or higher subsidiaries local the in determined are levels remuneration Local operation. Code of laws, market norms and the Netafim in line with local employment Conduct. Business go which elements and law by required elements both include employees Additional Plans, All employees are provided with Pension beyond legal provisions. Leave. Sick and Leave Maternity Vacation, Paid Insurance, and Health standards market with accordance in country by offered are benefits bonus, annual clothing budget forlocal norms. These may include an annual appropriate receive employees (production employees subsidized non-production or all free celebrations, family other and birthdays, for gifts clothing), meals and special savings funds. EMPLOYEE PROGRAM an OUTSTANDING as Event Global Employees Outstanding an holds Netafim high Annually, and performance excellent for appreciation Netafim's of expression employees outstanding all and Israel in place takes event This motivation. build with their peers. The fourtravel to receive their awards and network to Israel in sites Netafim to visits educational includes event day all it where see and connections make business, the of 19 understanding and women 9 conference: the attended employees 28 2011, In started! men from 12 countries. PROGRAM APPRECIATION managers to allocate bonuses ofNetafim's 'Appreciation Program' allows to for staff and their spouses)different kinds (cash or "weekend getaways" program this under Appreciation award Managers discretion. their at employees who have demonstrated exceptional performance by: • • • • 17% PLANTS RATIO OF PAY BY BY PAY OF RATIO GENDER Netafim's policy is to pay men and work, equal for pay equal women and skills experience, with consistent salary of Details responsibilities. job specifically not are gender by levels monitored at this time. 767 960 1268 2995 Total 19% SALES OFFICES 54 78 338 470 Female 713 882 930 2525 Male Plant Sales Office Total Country Head Office Number of FTE Employees by Gender 31st December 2011 Location Netafim is an equal opportunity employer and and employer opportunity equal an is Netafim of types all in women and men both welcomes has business agricultural the Traditionally roles. reflected also is this and male-dominated been 16% which of numbers, employee Netafim's in Netafim at women Most 2011. in women were technical office head in employed be to tend plant in are fewer while roles, administrative and Managers 240 total the Of roles. based field or among while women, are 16% Netafim, at team Management Executive company's women. are 29% EQUAL OPPORTUNITY AND AND OPPORTUNITY EQUAL DIVERSITY 64% COUNTRY HEAD OFFICE

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 90 93 Netafim maintains a Corporate Safety Committee which is comprised comprised is which Committee Safety Corporate a maintains Netafim Preventive safety measures are common practice at all Netafim operations. certification towards worked Israel in factories three Netafim's 2011, During Netafim employees, especially those working in manufacturing facilities,Netafim employees, especially those working of management, Safety Officers and employees. The Committee meets meets Committee The employees. and Officers Safety management, plans of safety annual approve and practices review to year a times is which several Committee Safety local a have factories Netafim All well progress. as and training relevant ensuring and practice local monitoring with charged action. corrective agreeing and incidents safety reviewing as expected is Certification 18001. ISO standard, safety and health the against performed Netafim certification, 18001 ISO for prepare to order In identify to 2012. in order in factories Israeli three all in station work each of were survey a which hazards health or risks safety Resulting risks. safety ten and health addition, In delay. without rectified and addressed been have the identified at course Trustee Safety and Health a attended to employees them Netafim equip to order in Hygiene and Safety Occupational for Institute Israeli implement ISO18001 effectively. NETAFIM HEALTH AND SAFETY POLICY POLICY SAFETY AND HEALTH NETAFIM is committed to a safe working environment The Netafim Management Team and safety the entire Netafimand embedding safe working practices throughout workplace to relating laws all to adheres strictly Netafim focus The operation. practice. good of monitoring effective ensure to resource In allocates practices. best in trained are employees all and prevention accident on is Institution (Standards 18001:2007 SII Standard the to adheres Netafim Israel, Safety standard, at all plants.of Israel) Israeli Occupational Health and employees receive safety training as part of their corporate orientation, and and New modules each year. participate in several health and safety training orientation, corporate their of part as training safety receive hazardous employees Noise, year. every checks health annual offered are employees all are performed regularly. materials, air quality and radiation surveys EMPLOYEE HEALTH AND SAFETY SAFETY AND HEALTH EMPLOYEE health environment to maintaining a safe and healthy work Netafim is committed occupational with compliance strict includes This employees. all for comprehensive and world the around standards and regulations safety during and and Company the joining upon procedures safety in training employee tenure. job their Netafim opposes all forms of child labor and forced labor. There are no no are There labor. forced and labor child of forms all opposes around Netafim operations Netafim's of any in employed 15 of age the under free children own their of Company the with work employees Netafim All globe. the starting to prior contract employment agreed an signed having will, Company. the with CHILD LABOR AND FORCED LABOR LABOR FORCED AND LABOR CHILD

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 92 95 1 0 43 297 341 2010 5 6 30 347 388 2011 Total Netafim Employee Workplace Lost Workdays Netafim Employee Workplace due to Accidents 2010-2011 Location India Israel USA Rest of World

7 3 24 125 159 2010

2 25 11 130 168 2011 All safety data relates to Netafim employees only. In addition, there are a are there addition, In only. employees Netafim to relates data safety All USA Rest of World Total Netafim Employee Workplace Accidents and Netafim Employee Workplace Injuries 2010-2011 Location India Israel During 2011, there were 168 workplace safety incidents, yielding workplace workplace yielding incidents, safety workplace 168 were there 2011, During 100,000 per calculations OSHA standard (using 15.7 of rate workdays accident lost Similarly, (16.3). 2010 from decrease a is which employees), employees two despite 2010, versus decreased 2011 in accidents to due almostfor work of out were and accident traffic road a in involved were which Rate was 36.1 in 2011OSHA Lost Workday 300 days. Netafim's (versus 39.8 in 2010). employees working at Netafim sites, for which data is not currently available available small number of workplace accidents affecting contractors or non-Netafim currently not is data which for sites, Netafim at working employees will make efforts to record all such data and reportfrom all sites for 2011. We report. next our in fully Almost all workplace injuries and accidents are due to minor injuries such as as such injuries minor to due are accidents and injuries workplace since all site Almost Netafim any at fatalities no been have There slips. and plans bruises cuts, Netafim 2012, during However, operations. Company's the of start the preventive additional ensure and procedures safety workplace all review to plants. all in enforced are measures SAFETY PERFORMANCE SAFETY

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 94 97 LOCAL SUCCESS SUCCESS LOCAL in 1997, Indian national, was hired by Netafim India Randhir Chauhan, an successive in Operations and Marketing Sales, in positions through working 2006. Under Managing Director of Netafim India in roles. He was appointed has tripled business and revenue growth.his tenure, Netafim India Chauhan Perspectives from Randhir mean to you personally? What does sustainability too. natural resources available for the future Sustainability is to ensure economic and environmental social, the of account on emerged has This of population growth and growing requirement consequences of rapid has resources is increasing on per unit area ofvarious natural resources. As the pressure natural of efficiency utilization and productivity enhancing land, humankind. the of survival the for hour the of need the become in productivity sustainable advancing in difference a make Netafim does How India? than more in 240 thousand hectares ofThrough its drip technology system installed of lives the of transformation the enabling been has In Netafim land, agriculture. in usage fertilizer and water saving of way by farmers 200,000 important in addressing powera developing country like India it has proved constraints. labor and shortages use expanding of challenges main the are what 2012-2013, consider you As the of drip irrigation in India? include India in irrigation drip of use expanding of challenges there main and The government the by regulated not still is ownership water that fact of farmers in India are small, 80% are serious funding shortages. Additionally, technologies new of awareness and methods farming subsistence use address to most program educational strong a maintain must Netafim low. still is these challenges. in India? What is Netafim's reputation as an employer ethical and proposition value strong a having company a as seen is Netafim practices, caring for all-round development of employees and enabling them workplace. the in innovativeness and creativity their exercise to After three months, the new employee is is employee new the months, three After progress is supervised by the new hire's direct direct hire's new the by supervised is progress partner. HR and Manager setting progress, of review personal a for invited further of identification and targets personal of needs. training LOCAL TO COMMITMENT HIRING places Netafim countries, 28 in operations With empowerment workforce local on effort great a to skills appropriate most the ensuring while all at locally hiring by business Netafim's advance worldwide. subsidiaries and operations Netafim's hiring for preference a had always has Netafim the in especially important, is it since local, local the to connected be to business, agriculture Therefore, culture. and community, agriculture wherever locally filled are positions all almost economy emerging in However, possible. and skills rights the with people locating markets, cases, these In challenging. often is experience experienced an transfers temporarily Netafim develop both to country another from employee and capabilities local establish and business the local Overall, plans. succession employees' local total Netafim's of 90% represent Managers management. global Many recruits are identified through Netafim's Netafim's through identified are recruits Many a receive employees new board, on Once EMPLOYEE ATTRACTION, ATTRACTION, EMPLOYEE RETENTION AND RECRUITMENT Netafim's strong reputation as a sustainability- potential for attractive is company minded of list long a has always Netafim and employees Netafim the advancing in interested applicants focuses team recruitment Netafim The purpose. the in aptitudes and experience skills, on both recruit to looks also but process recruitment values Netafim's with aligned are that candidates Recruitment sustainability. to commitment and the to offered first are Israel in opportunities communities Kibbutz founding the of members is recruitment but Yiftach) and Magal (Hatzerim, business Netafim's with fit a on based strictly objectives and recruitment objectives. of source a is this and program Friend" a "Bring employee reinforces both which recruitment candidates identify to helps and engagement, regular the on appear not might which proud are employees Netafim radar. recruitment and members family to Netafim recommend to friends. meet to tailored is which program training personal and individual, the and job the of needs actual

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 96 99 IDENTIFYING IDENTIFYING OPPORTUNITIES AND CONSTANT IMPROVEMENT ACCOUNTABILITY & MANAGERIAL COURAGE PROFESSIONAL KNOWLEDGE BUILDING A TEAM MANAGING GLOBAL / DIVERSITY MANAGEMENT CUSTOMER RELATIONSHIP MANAGEMENT WITH COPING TO RESISTANCE CHANGE FROM STRATEGY STRATEGY FROM TO TACTICS- PLANNING ALONE STANDING MOTIVATION MOTIVATION AND FOCUS OF RESULTS VALUES COMMUNICATION SKILLS NETAFIM'S SOLUTIONS MANAGING CHANGE PROCESSES UNDERSTANDING UNDERSTANDING EXTERNAL THE ENVIRONMENT INTEGRITY AND TRUST PRIORITIZING AND AND PRIORITIZING DECISION MAKING DEVELOPING GUIDING AND EMPLOYEES BUILDING PARTNERSHIPS UNDERSTANDING AND MARKET THE COMPETITORS WHILE LEARNING ACTING MANAGING THE VISION STRATEGIC AND ETHICS VALUES PERFORMANCE AND CONTROL MOTIVATING EMPLOYEES UNDERSTANDING THE SYSTEM FINANCIAL UNDERSTANDING TO APPROACH CHANGE LEADING LEADING BUSINESS LEADING CHANGE LEADING STRATEGY BY LEADING VALUES LEADING LEADING TASKS LEADING PEOPLE LEADING COLLABORATION Most local subsidiaries had no dedicated HR position, so the first objective objective first the so position, HR dedicated no had subsidiaries local Most able to create and implementIn many cases, the new HR Managers were During 2010-2011, Netafim's global Human Resources Management Team During 2010-2011, Netafim's global Human Resources Management Team defines which Model, Competency Management Netafim the expected completed are Managers Netafim that qualities leadership of expectations the to acquire and demonstrate. This model informs Netafim's job definition, performance and development and training placement, recruitment, processes. evaluation NETAFIM COMPETENCIES COMPETENCIES NETAFIM Netafim believes in the importance of open communication with Managers Managers with communication open of importance the in believes Netafim opportunities identify to order in performance their about employees in and participate Managers All development. personal and improvement for performance of review a includes which Evaluation Performance annual Netafim's an with line in performance of aspects behavioral and targets against Management Competency Model as well as other activities such as this in participated employees of 79% 2010, In involvement. community 2011. in 90% and process, EMPLOYEE PERFORMANCE FEEDBACK FEEDBACK PERFORMANCE EMPLOYEE was to improve the Human Resources network in the Netafim world. Newwas to improve the Human Resources network Mexico, Brazil, India, Italy, local HR managers were hired in Peru, Turkey, South Africa and Australia. local empower and capabilities and skills local enhance to programs new Netafimnew a of part become will Managers HR local all 2012, In employees. exchange of best practice in orderHR network with knowledge sharing and Human Resources recruitment,to ensure global application of advanced practices. retention and development BUILDING HUMAN RESOURCES CAPABILITIES CAPABILITIES RESOURCES HUMAN BUILDING HIRING LOCAL FOR plans for 2012-2014 include managementNetafim's Human Resources and 2010,focus on emerging economy markets. During development with a hiring the on focus to team Resources Human new a established Netafim training a developed team HR Global The employees. local of to development markets emerging in located managers HR local for program coaching and hiring. local for capabilities and awareness their advance

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 98 101 Netafim maintains an Intranet portal for all employees to access both general general INTRANET PORTAL both access to employees all for portal Intranet an maintains Netafim knowledge-sharing important also and business Netafim's about information roles. their in individuals for support provide which documents EMPLOYEE NEWSLETTER summarizing all relevant Netafim issues a newsletter, Every quarter, employees information about Netafim's business and related information for the benefitall to electronically distributed is newsletter The employees. all of countries. 30 over in This is a forum for all business units and subsidiary managers. The GLC GLC (GLC) CONFERENCE LEADERSHIP GLOBAL The managers. subsidiary and units business all for forum a is This and important and ensures best practices are shared meets at least annually basis. global a on uniformly out rolled are programs CONFERENCE: EMPLOYEES 28 OUTSTANDING annually. held employees, outstanding honor to meeting global a is This conference The conference. 2011 the in participated as employees plants, and outstanding sites Netafim different the to trips includes and Israel in held is sites. historical and cultural to tours and activities social as well process process ◦ In India, a more extensive 1.5 year program program year 1.5 extensive more a India, In MANAGEMENT FORUM Business Global Netafim's all of comprised is This with year a twice convenes and Managers Unit attendance of 30 Managers. KEEPING EMPLOYEES EMPLOYEES KEEPING INFORMED Netafim aims to keep all employees up-to- sustainable in developments global with date and strategy business Netafim's agriculture, the in developments other and performance and meetings informal to addition In company. year, the throughout meetings departmental local a provide that frameworks core four are there basis for communications. conflicts, personal development of subordinates subordinates of development personal conflicts, more. and Managers mid-level 16 for 2010 in commenced management market emerging for prototype a as designed specifically is program The development. roles management senior for managers equip to a within locations other in possibly and India within years. three of period POTENTIAL HIGH GLOBAL EMPLOYEES FOR PROGRAM employees identify to designed is program This management critical fill to potential the have who the for Candidates years. 1-3 within positions performance, high show to need program motivation high competencies, core demonstrate a have and abilities, learning development, for company. the at months 18 least at of seniority on based selected are participants Program employees identify which reviews, managerial competency core and potential leadership with 360 a undergo will participant Each skills. subordinates peers, managers, by evaluation of Potential High first The self-evaluation. and employees 25 with 2012 in place take will program will participant Each countries. different from be will and plan development personal a receive the throughout resources specialist by supported program, which is due to last for two years. Management Training and Development: Hard Hard Development: and Training Management Technical and Sales Training: Skills Professional In 2011, Netafim invested over 4,800 training training 4,800 over invested Netafim 2011, In • • MANAGEMENT MANAGEMENT PROGRAMS DEVELOPMENT half-day ten of consisting program a is This a over training, outdoor including workshops, program this of objective The months. 5 of period with cope to tools with managers equip to is workplace diversity, cultural management, remote TASK MANAGEMENT COURSE COURSE MANAGEMENT TASK program, day four newly-developed a is This review to meetings follow-up additional with for is course The learning. new of implementation build to need who Managers experienced more organization Netafim the within influence their 16 objectives. business achieve to order in managers will participate in 2012. hours for employees in Netafim plant operations operations plant Netafim in employees for hours per hours 34.5 representing world, the around year. per employee MANAGE" TO "GROWING management six-day annual an is This followed Leaders, Team for course development new are Participants meetings. group follow-up by with role management first their at managers first the typically is This teams. for responsibility providing career, manager's Netafim a in course strong a of development foundation good a career personal for and time over contribution delivering includes program The development. communication improving role, current in results collaboration cross-functional influencing, and skills managers 14 employees. managing and program. 2011 in participated • and soft skills for managers. • product Netafim's all on employees all for Training offerings and agricultural impacts. Each local Netafim subsidiary develops its its develops subsidiary Netafim local Each to tailored are which programs training own customer unique and products priorities, the and training general, In region. local the in needs falls into two categories: development at Netafim TRAINING AND DEVELOPMENT DEVELOPMENT AND TRAINING

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 100 103 Netafim supports clients with a local, personal personal local, a with clients supports Netafim and dedicated service, targeting to maintain maintain to targeting service, dedicated and Some relationships. collaborative long-term systems Netafim using been have customers years 45 over drippers first company's the since Netafim with together advanced have and ago, Many developed. been have technologies new as sophisticated to migrated have customers Israeli of designs advanced and systems computerized irrigated of 75% over Israel, in Overall drippers. most and systems, irrigation drip employs land a systems, irrigation computerized use these of world. the in else anywhere than rate higher much also and yields higher of delivery supports This less. with more grow to farmers enables Netafim believes the quality and knowledge knowledge and quality the believes Netafim WORKING WITH CUSTOMERS CUSTOMERS WITH WORKING ISRAEL IN of heart the and base home Netafim's Israel, In Netafim Netafim, of development and growth the customers, with relationships direct maintains dealers. local of support the for need without Israel, in customers of thousands serves Netafim the to holdings farm smallest the from ranging operations. agricultural commercial largest level of its dealers to be an integral part of its its of part integral an be to dealers its of level of thousands invests therefore and chain value its developing and training in year every hours support provide to them equip to network dealer appropriate most the offering by customers to to respond and needs their for solution irrigation based is program training dealers The queries. all products from – learning field and classrooms on to financials basic from applications, through operational maintenance. Netafim maintains a network of over 2,500 2,500 over of network a maintains Netafim and professional selects carefully Netafim THE NETAFIM GLOBAL GLOBAL NETAFIM THE NETWORK DEALER SPECIALIST our reach we world, the of parts many In dealers, specialist of network a through customers them serving and customers our to close located Netafim's using principles, Netafim's with line in to operating and knowhow and technologies of values kibbutz the With standards. Netafim aims Netafim core, its at loyalty and camaraderie mind. in values these with customers serve to served are customers Netafim most though Even direct Netafim's and network, dealer the through teams Netafim limited, are relationships customer the improving in assist to hand on always are for suggestions offering and experience customer improvement. We countries. 100 than more in based dealers providing in resources valuable most our invest to support and advice ongoing guidance, training, customer identify them help to order in dealers any On solutions. right the provide and needs 1,500 over of Team Field Netafim the day, given specialists automation and irrigation agronomy, training conducting dealers, with working is and issues customer reviewing workshops, opportunities. new identify to helping properly they ensure to dealers local experienced Many values. Netafim the and Netafim represent with working been have dealers Netafim's of of part integral an are and years many for Netafim family. Netafim the

OUR APPROACH APPROACH OUR customers our respect and value we Netafim, At deliver to motivation strong a maintain and their meet to solutions productivity sustainable each that understand We needs. individual which challenges of set unique a faces farmer economic, - factors of range a by influenced are water climate, infrastructures, local agronomic, understanding keen A more. and social sources, the impact that conditions of set entire the of livelihood sustainable a deliver to ability farmer's is way friendly environmentally and efficient an in not does Netafim business. our of rule golden the see to aim We solutions. all fits one-size a offer address eyes, customers' our through issues the provide and needs his to according customer each results. desired the deliver which systems tailored long and collaboration of spirit a in this do We and trust integrity, on based relationships term promise we what Delivering performance. strong helping is first Our nature. second Netafim's is farmers to grow more with less.

OUR CUSTOMERS OUR FOR LESS WITHFOR DOING MORE MORE DOING

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"I am using subsurface drip irrigation for my my for irrigation drip subsurface using am "I visited farmers 20000 than More crop. sugarcane I and excellent very was crop the as plot my the and tons/acre 116 of harvest rich a reaped the all in published was success this of news Tamil District, (Salem R.Periyannan newspapers." Nadu State) my of acres 7 on cotton growing been have "I to one first the am and drip Netafim with farm I district. Nalgonda the in crop this for drip adopt found and varieties many with experimented have were guidance agronomical and drip Netafim that Surrounding yield. the in rise for reasons only the have farmers 400 and influenced were farmers as many as with drip on cotton grow to begun rich a reaped I farm. my visiting farmers 5,000 which Iharvest of 22 quintals / acre for this crop, drip." on cotton grow to started I till get not could Boepally Sriniwas (Nalgonda District , AP) using Netafim Drip Technology. “Krishi Shri” in in Shri” “Krishi Technology. Drip Netafim using output farm rich reaping “Those means Hindi made are Awards The land/farm”. his/her of out the include which criteria, several to according awareness creating in farmer the of contribution exemplary and practices cultivation best about management. fertigation and irrigation in practices farmers 68,000 than more served India Netafim different in crops of variety a for 2011 in for each farmer One India. in zones geographical four the of each from crops sugarcane and cotton was India Netafim of units business geographical Award. Shri Krishi the receive to selected seeds of costs inputs the down cut could "I a to etc. power, fertilizers, labor, planting, for spacing feet 5 to switching by level significant Netafim by recommended as rows between the down cutting ensured also This experts. increase tremendous facilitating cost, maintenance me fetching and acre per tons 116 of yield the in Avhad Sahebrao Pandurang " returns. good very (Osmanabad District, Maharashtra State) The aim of the group is to share knowledge knowledge share to is group the of aim The day two a hosted Netafim 2011, December In Krishi with presented were farmers Several is the highest honor The Krishi Shri Award Netafim is active both in Mexico and India, India, and Mexico in both active is Netafim NETAFIM INDIA 'SAYHOG' 'SAYHOG' INDIA NETAFIM CLUB FARMERS 'Sayhog' established India Netafim 2011, In The group. farmers sugarcane and cotton a - Netafim's of benefit the for created was group are members its and India, in customers in successful been have that farmers 100 irrigation and farming sustainable implementing results. the enjoy today and methods this bring farmers, these among expertise and them guide and area their in peers to knowledge of production and irrigation sustainable towards cotton and sugarcane. including Pune, at farmers the for conference to visit a and farm irrigation hi-tech a at tour a Exhibition. and Fair Trade Agriculture Kisan the to sessions training included conference The in advances technology about farmers the update sugarcane and cotton in trends new and irrigation, cultivation. Reuters the to introduced were and Awards Shri daily provide which cards, (RML) Light Market prices market forecast, weather on updates crops selected about information general and farmers enabling messaging, text cellular via improved through revenues their increase to business information. who farmers those for India Netafim by conferred achievements exemplary demonstrated have offering free seminars to groups of farmers from from farmers of groups to seminars free offering seven and growers 21 2011, In regions. different area Mexico Sinaloa, of state the from dealers and benefits the about learn to seminar a attended a watching including irrigation, drip of techniques system. demonstration of the During 2010, Netafim installed a new system system new a installed Netafim 2010, During In addition to working with dealers and direct direct and dealers with working to addition In farming for support provides Netafim customers, Netafim not are who many including communities, outreach Netafim's customers. indirect or direct and benefits the on training and education includes systems irrigation drip of implementation practical areas. rural in communities farming local for held, been have seminars such 2,000 than More reaching over 50,000 farmers in 2010/2011. EXTENDING DRIP IRRIGATION IRRIGATION DRIP EXTENDING FARMING TO KNOWLEDGE COMMUNITIES Israel in Department Service Customer global The companies subsidiary with interaction daily enjoys no are there where countries (in dealers and Customer Each worldwide. offices) Netafim several with closely works Representative Service regarding information them providing customers, point a as well as logistics, and availability prices, and issues. of contact for queries customer to time response Netafim's improve to the of quality the improve also and queries the of module Assurance Quality The response. is and activated was program SAP company's the over all teams Netafim to accessible now or query Any authorizations. relevant with world, automatically is customers by received complaint provide can who team relevant the to dispatched to response coordinated a of part as input their which in system, automated The customer. the customer standard a in submitted are queries raised issues of tracking full enables format, query from learning team facilitates and customers by issues of Analysis experience. collective the determining in used is received complaints and the for enhancements and development product customers. Netafim all of benefit A NEW, BETTER RESPONSE TO TO RESPONSE BETTER NEW, A CUSTOMERS

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 104 107 g www.agrosphere.or http://www.youtube.com/ watch?v=cmqyD_TjrEA For more information about Agrosphere,For more information about please see: In 2010 Agrosphere, an Italian NGO, embarked on a project to supportIn 2010 Agrosphere, an Italian NGO, embarked irrigation drip the of implementation the was project this of center the At Kamale in farmers 200 over of lives the place, in systems drip the With written was Drop", By "Drop entitled project, this about film documentary A the village's community through small scale irrigation systems. The project,the village's community through small scale also but of the United Nations,supported by the Food and Agriculture Organization farmers, the to solutions technical only not provide to designed was health, of environmental safety, agricultural training and education on aspects water and sanitation, and social issues. village the to brought (FDS) Systems Drip Family Netafim 200 using method, individual with farmers the provided only not project The also but Agrosphere. by solution, complete a for fertilizers and seeds with together kits, planning FDS business including system production entire the in farmers trained FDS the for the Agrosphere Project Manager, and marketing. Netafim provided training ensure to village the visited also Netafim villagers. the teach to guidance. systems work as expected and provide additional every water bring to need longer no now They dramatically. with time improved have spend to up them freeing foot, on hours several lasting trip a via day that could not work their working The elderly, their children and other family activities. keep now can required, activity strenuous the of because plots own and producing as no physical activity involved in opening the simple water tap of the FDS. The lives of all villagers substantially improved as a result ofincrease 140% average an with farmers, the for support and project FDS In the crops. farmed from income of level the double and yields harvested in addition, the move to drip irrigation saved 60% of water consumption for applications. farming Alessandra and manager project Agrosphere's Signa, Davide by directed and Social Foundation.on Argenti, a film maker from the Nairobi Based NGO Cultural Video Film Short Best of category the in nominated was film The 2011, In Festival Film Milano prestigious the at NGOs by produced Communication participated. makers film 80 over where USING SMALL-SCALE DRIP IRRIGATION IRRIGATION DRIP SMALL-SCALE USING KENYA IN COMMUNITY A REVIVE TO farming small a is Kenya east in district Kitui the in Kamale of village have The years recent in conditions Drought residents. 200 about of community alone,rainfall on rely to unable located now, they as residents Kamale's affected badly rivers seasonal small and wells from water irrigation bring the to need transporting hardship physical the than Other away. kilometers several of crops produced is low. farming efficiency and the quality water,

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GROWING GREENHOUSES AgroPark is located in the state of Queretaro, just 200km North of Mexico City (900kmAgroPark is located in the state of Queretaro, In 2006, a group of 40 Mexican investors had a vision. They approached Netafim with an an with Netafim approached They vision. a had investors Mexican 40 of group a 2006, In regenerate and the first hi-tech AgroPark of its kind in Mexico,idea for an innovative, commercial initiative, area local the of residents for income of source a professional deliver the would with which Today, people. young among especially region, the in flourishing and employment thriving a become has vision this Netafim, the of in guidance enterprise and agriculture involvement collective largest the is it and AgroPark called is It reality. people who are direct employees of providing livelihoods for close to 1,000 local country, food and markets peripheral jobs for transportation companies,AgroPark and its growers as well as many local to and U.S. the into sold is produce The more. and suppliers income for local farmers. producers in Mexico, delivering life-sustaining grown crops main The acres. 2,000 almost of area total a covers and border) comprised U.S. the mostly is from Agropark eggplants. and peppers flowers, tomatoes, irrigation are and AgroPark in facilities infrastructure, advanced with growers providing with One Day greenhouses, of from almost park the constructing for responsible three was where Netafim today, to systems. through greenhouses, 15 erecting 2008, in smooth establishment ensure to AgroPark's support technical house in constant provide which technicians growers, 15 the Netafim's of providing regularly, AgroPark visits agronomist Netafim A operation. are members of the collective, with support and tips for better yields.

AGRICULTURE A NEW MODEL FOR FOR MODEL NEW A MEXICO – MEXICO AGROPARK AGROPARK

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 108 111 For more information about the Office of theFor more information about Chief Scientist see: http://www.tamas.gov.il/NR/exeres/ B3F78073-454A-48D5-A8BA- 6D088DDECCD5.htm The process of project selection is detailed and exhaustive, requiring full full requiring exhaustive, and detailed is selection project of process The OCS the with relationship collaborative Netafim's years, three past the For COLLABORATION WITH THE OFFICE OFFICE THE WITH COLLABORATION SCIENTIST CHIEF THE OF Israeli the in office an (OCS), Israel in Scientist Chief its the of of part as Office R&D The industrial supports Labor, & Trade Industry, of means Ministry a as Israel in technology of development the in assist to goal main scientific leveraging innovation, encouraging growth, economic fostering of and national both encouraging and base knowledge enhancing potential, state-of-the is irrigation precision Netafim's collaboration. and international world the throughout edge leading as recognized technology, art advancing for and growth economic for both benefits significant brings worthy a as Netafim sees therefore OCS Israel's business. with sustainable business private a as Netafim, collaboration. and investment for partner the at the OCS to gain funding forlimited resources, is pleased to partner with possible be not otherwise would that research innovative are breakthrough and investment high both represent projects these Often pace. same by the OCS. high risk and therefore merit special attention risk and statistics detailed and approaches technology Netafim of disclosure projects selected by Netafim to meetevaluation factors. The projects are generally The on. working in interest an has OCS the that challenges particular and focus on Netafim's line of expertise in drip irrigation and precision agriculture, methods farming new improving and developing of objective the with delivering solutions to global agricultural challenges. The ultimate selection of OCS. the at panel decision a by made is projects has intensified and at present, ten significant projects are under development. advance to OCS the from million $1 over received Netafim 2009-2010, In projects. these FIELD TRIALS PRODUCTION PRODUCT USE BY CUSTOMERS PHASE OUT NEW IDEA TECHNICAL FEASIBILITY BUSINESS PLAN PRODUCT PRODUCT DEVELOPMENT

In all cases, the focus is on the entire lifecycle of Netafim Netafim of lifecycle entire the on is focus the cases, all In forefront the at safety and health customer places Netafim R&D WITH LESS LESS WITH DOING MORE MORE DOING Product Development at Netafim follows 8 strictly managed managed strictly 8 follows Netafim at Development Product moving and generation idea with starting stages, controlled and products replacement when phase-out product final to through each at exercised are controls Strict developed. been have development product that ensuring process, the of stage a in needs actual meet to solutions agricultural provides of impacts end-of-life the for concern with way cost-effective for evaluated are phase first the in generated ideas All products. impacts. sustainability as well as potential business both PRODUCT R&D – NETAFIM PRODUCT PRODUCT NETAFIM – R&D PRODUCT DEVELOPMENT OUR APPROACH APPROACH OUR we as Netafim at value core a is Development and Research to solutions generation next provide to search continuously sustainable promotes which way a in less with more deliver offerings product on focuses R&D Netafim's productivity. and R&D) (Product systems delivery irrigation of terms in both products Netafim by supported are that methodologies growing R&D). (Agronomic local diverse in agriculture in used are they as products Today, world. the throughout crops of range a with conditions raw recyclable and recycled of levels higher on focuses Netafim sustainability. lifecycle overall improve to order in materials minimum with designed are products all and efforts design of and health for consideration and chemicals hazardous of levels use. during aspects safety

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 110 113 www.netafim.com/ For a long list of Netafim's University collaborations, see: academic-relations One of the routes to best practical knowledge of crop applications is is applications crop of knowledge practical best to routes the of One and innovation in investment constant and expertise extensive Netafim's AGRONOMIC R&D – COLLABORATION WITH WITH COLLABORATION – R&D AGRONOMIC WORLD THE AROUND INSTITUTIONS ACADEMIC are that methodologies growing developing on focused is R&D Agronomic testing involves this cases, many In products. Netafim's with compatible successfully been before never have that crops on systems irrigation crops drip commodity other and rice example, for irrigation, drip using grown an support to able been not have and margin low generally drip are which appropriate developing By technology. irrigation advanced in leading is investment Netafim affordable, and effective both are that solutions basic of irrigation productivity enhance to agriculture sustainable of The years. transformation a coming in food of availability additional major to lead will that crops shared with Netafim customers,result of Netafim's agronomic R&D is freely communities farming the to provides Netafim that service the of part forming world. the around serves company the that contribute can which institutions academic local with collaboration through resources. research and facilities growing maintaining to the advancement ofirrigation technologies make a strong contribution By productivity. sustainable and agriculture in studies academic gaining close relationships with academic institutions throughout the world, Netafim while studies academic support and knowledge share both to field able is monitored academically and controlled run to opportunities of diverse benefit in the technologies different of effectiveness of level the assess to trials conditions. local

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 112 115 In many cases, due to proprietary technical specifications, specifications, technical proprietary to due cases, many In supplier of monitoring of system a maintains Netafim ethical to relating requirements include will Netafim 2012, In EMPHASIS ON QUALITY IN IN QUALITY ON EMPHASIS OPERATIONS MANUFACTURING of standards highest the maintain to strives Netafim manufacturing global its in excellence quality manufacturing operations. All plants operate to the same high-quality standards are plants six and Standards Quality ISO to certified are and certification. Quality Environmental 14001 ISO to certified the improve to made were advances several 2011, During Netafim's of impacts environmental and efficiency energy processes. logistics and manufacturing WORKING WITH SUPPLIERS SUPPLIERS WITH WORKING materials, raw of suppliers of range wide a with works Netafim material raw key The abroad. and Israel in services and products dripperlines of manufacturing the for purchases Netafim that other sources also Netafim polyethylene. is drippers and and cartons shrink-wrap, nylon as such packaging, for materials equipment, agricultural sources Netafim addition, In fasteners. computerized supplement to equipment, electronic as such installations. management crop Where selection. supplier in choice limited has Netafim when locally source to prefers Netafim however, possible, considerations. lead-time and economic compatible with quality, suppliers long-serving are suppliers Netafim cases, many In product new on Netafim with partnership in work which design. in improvements and developments adherence timeliness of supply, performance in terms of quality, suppliers ranks and service, overall and standards safety to undergo suppliers All requirements. purchasing to according supply for approved are they before process approval strict a a awarded are suppliers performing best the and Netafim to performance. good for certificate to order in contracts, purchasing in sustainability and conduct throughout practices sustainable to adherence further ensure the Netafim supply chain. 9001, 14001 9001 9001 9001 9001, 14001 9001, 14001 9001, 14001 9001, 14001 9001, 14001 9001 9001 9001 9001 ISO Quality Quality ISO Certifications 13 plants Fresno Adana Cape Town Reynosa Iftach Magal Hatzerim Chennai Baroda Maasdijk Santiago Ribeirao Ribeirao Prato City Melbourne Total USA Turkey South Africa Mexico Israel Israel Israel India India Holland Chile Brazil Factory Location Country Australia DISTRIBUTION TO FARMERS OR END USERS DISTRIBUTION TO DEALERS COLLECTION FOR RECYCLING USE IN AGRICULTURAL, LANDSCAPE MINING OR APPLICATIONS Netafim's responsibility extends throughout throughout extends responsibility Netafim's for responsibility includes and Chain Supply the the At products. Netafim of life-cycle entire the manufactured are products Netafim phase, design and possible where usage material reduce to recycling end-of-life with compatibility ensure and logistics global reduce to order In objectives. a established has Netafim costs, transportation distribution and manufacturing local of network offering near- facilities in several countries, Netafim's in assembly and manufacture farm Netafim's All locations. supply important most local all with comply operations manufacturing safety licenses, operational to relating regulations been not has Netafim and handling materials and for sanctions or fines monetary any of subject the the in time any at manufacturing to related issues world. the in anywhere company the of history

LOCAL IRRIGATION LOCAL IRRIGATION SYSTEMS COMPONENT ASSEMBLY RAW MATERIALS SOURCING MANUFACTURING OF DRIPPERS, DRIPPERLINES AND SPRINKLER PRODUCTS

CHAIN OUR SUPPLY SUPPLY OUR WITH LESS INWITH DOING MOREDOING

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OUR APPROACH APPROACH OUR business Netafim's to core is stewardship Environmental in priorities our of forefront the at constantly is and offering to design, and development product from activities our all impacts. life-cycle their and products Netafim of applications irrigation drip through environment the on impacts Netafim's reduction use, land arable of optimization include systems lower and conservation water consumption, energy of positive a make which of all consumption, agrochemical prime our that believe We change. climate to contribution sustainability global improve to responsibility our is contribution irrigation precision of use and awareness advancing through farmers enabling and productivity, sustainable for systems around the globe to grow more with less. environmental the minimize to strives Netafim addition, In to approach precautionary a of application the through impacts support and logistics manufacturing, manages Netafim way the the for materials of consumption direct our and operations purpose of manufacturing and distributing our products.

ENVIRONMENT FOR THE THE FOR DOING MORE MORE DOING

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1O% INDIA 14% USA 18% OTHER FACTORIES In 2011, total global electricity consumption in in consumption electricity global total 2011, In DIRECT ENERGY ENERGY DIRECT CONSUMPTION Netafim does not use any direct energy in its its in energy direct any use not does Netafim power All operations. logistics and manufacturing small a of exception the with indirectly, sourced is production Netafim's in fuel diesel of amount of purpose the for used India, Chennai, in plant insignificant an is This generator. local a powering energy overall Netafim's of part as amount recorded. not therefore and consumption ENERGY INDIRECT CONSUMPTION energy indirect of source only Netafim's the for used is which electricity, is purchased office- purpose of powering all manufacturing and the from sourced is Electricity operations. based which in countries all in grid electricity national its produce not does Netafim operates. Netafim electricity. own 19% a gigajoules, 305,411 was plants Netafim Netafim time which during 2010, over increase 19%, over by output production overall increased energy of levels maintained representing 2011. in efficiency

58% ISRAEL Initiatives to reduce the volumes of input raw raw input of volumes the reduce to Initiatives All plastic waste from the production lines are are lines production the from waste plastic All By design, Netafim targets to reduce dripperline dripperline reduce to targets Netafim design, By NETAFIM INDIRECT INDIRECT NETAFIM (ELECTRICITY) ENERGY CONSUMPTION 2011 BY REGION LESS WITH MORE DOING MANUFACTURING NETAFIM IN PLANTS INPUTS MATERIAL RAW manufacturing Netafim for materials Raw the for plastics primarily are processes uses Netafim lines. dripper of manufacturing materials. raw plastic of tons million 100 to close of quantities small uses Netafim addition, In plastic and board) (carton materials packaging delivery and labeling for paper and shrink-wrap, documentation. reducing on focused therefore are used materials is this and Netafim by used plastic of amount the done in two ways: 1. 2. rerouted back into production, resulting in near- rerouted back into production, resulting in around plants Netafim all at loss material raw zero the world wall thickness specifications in a way, which is is which way, a in specifications thickness wall Netafim of performance high the with compatible systems. See Netafim's Environmental Policy: http://www.netafim.com/ netafim-s-environmental-policy Environment Supervisors at Netafim manufacturing plants who are are who plants manufacturing Netafim at Supervisors Environment for environmental performance,Establishing goals, targets and timetables and responsibilities authorities, defining resources, Allocating ensure to levels all at employees company for programs training Delivering environmental Netafim's of reviews Team Management Executive Regular Adherence to ISO Standard 14001 at key factories which includes regular on focusing products Netafim of Assessments Impact Environmental Including conservation and rehabilitation of nature and biodiversity; air • • • • • • • • • Environmental Policy. responsible for the implementation of the • indicators and reporting systems.supported by performance measurement • legislation and Netafimenvironmental disclosures, informed by environmental environmental reduce to plan multi-year a of part as Policy, Environmental waste, energy and waterimpacts in core areas such as carbon emissions, recycling and use of recycled materials. efficiency, • goals. awareness and adherence to environmental • performance against targets. Key environmental practices at Netafim include: • verification. and audit external and • manufacture during effects consumption power and chemicals water, use. • waste water and soil pollution prevention; noise and odor prevention; reduction of and use water and resource natural of reduction gases; greenhouse management and reduction (sewage and hazardous waste and detergents). Netafim is committed to Sustainable Development and a positive overall overall positive a and Development Sustainable to committed is Netafim sustained proactive, a deliver to aim We environment. the on impact performance and minimize negativeimprovement in environmental while operations, and products Netafim's through impacts country environmental every in regulations and legislation environmental all with and complying impacts environmental our quantify to strive We operate. we which positive in environmentally on emphasis through them for accountability accept manufacturing all in consumption resource minimizing design, product waste responsible and recycling reuse, operations, chain supply to and stakeholders key with partnership in work to strive We management. supply the of stage each at addressed are impacts environmental future ensure for and whole a as society customers, our of benefit the for process environmental to approach precautionary a adopt we way, this In generations. protection. Policy through: Netafim's works to uphold this Environmental ENVIRONMENTAL POLICY POLICY ENVIRONMENTAL

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 118 121 5% METALS 32% ORGANIC 2% HAZARDOUS 0% ELECTRONIC During 2011, the waste generated by Netafim Netafim by generated waste the 2011, During waste. Waste is generally from supplier packaging packaging supplier from generally is Waste waste. recent in measures taken have we and materials, single-use packaging to multi- years to move from shipment volumes. use packaging and large electronic paper, generally is offices in Waste rooms, dining from waste organic or equipment paper being (61%) waste of source main the with recycled. mainly is which waste, plastic and routed is waste equipment electronic all Almost recycling. for locally this Of tons. 1,006 was operations manufacturing was tons) (654 65% estimated an amount, total were tons) (353 35% and recycling for routed landfills. local at disposal for routed 61% PLASTICS PAPER & RECYCLABLE WATER CONSUMPTION CONSUMPTION WATER for used primarily is locations Netafim in Water hygiene and cooling processes, manufacturing consumes Netafim that water All purposes. Company Water National the by delivered is In operates. Netafim which in locations the in 91,803 was consumption water Netafim's 2011, 2.4% of reduction a representing meters, cubic same the During meters). cubic (94,083 2010 19%, by increased output production period, efficiency water in improvement an demonstrating 20%. over of levels AND RECYCLING WASTE, LANDFILL waste control to care particular takes Netafim operations. manufacturing from resulting levels are which production, in used materials raw All production into back routed are sale for fit not to routed is material plastic no virtually that so COMPOSITION OF OF COMPOSITION MANUFACTURING IN 2011 WASTE In terms of water consumption, Magal plantIn terms of water consumption, more doing continue will plant Magal 2012, In manufacturing halls, equipment and water used used water and equipment halls, manufacturing purchased. was process, manufacturing the in produces which extruder, recycling a Additionally, plastic rejected and waste from material raw new its to due installed and selected was materials, 50% over consuming properties, efficiency energy calculating when predecessor its than energy less capabilities. its energy use and manufacturing flow the controlling for meters water installed has In operations. production of parts all in water of for process new a pioneered has Magal addition, Extrusion operations. extrusion in water recycling ensure to water limescale-free require operations year, the of months 6 During operations. efficient operation full in are units conditioning air when routes Magal Israel, in temperatures high to due extrusion in use for units A/C from water used softening water special avoiding operations, 300 saves This limescale. remove to processes plant's the of 3% to close or year, per water of m3 annual water consumption. extruder 17 of isolation the with energy less with in hall packing the of remainder the from lines avoid and efficiently more lines the heat to order energy-saving of installation the and loss, heat electricity reduce further will that transformers 20%. to up by consumption 2011 1230 1390 2010 2009 1520 This has yielded a reduction in electricity electricity in reduction a yielded has This to implemented were upgrades Extensive ELECTRICITY ELECTRICITY AT CONSUMPTION MAGAL PLANT IN KWH Magal is one of the largest Netafim plants, plants, Netafim largest the of one is Magal global Netafim's of 27% over delivering three past the During production. dripperlines wide-ranging undertaken has plant Magal years, $250,000 over investing initiatives, environmental a as serving infrastructure, environmental in around operations Netafim other for plant model consistent to led have activities These world. the usage water consumption, energy in reduction handling. waste in improvements and materials raw processed of ton per consumption 20% almost of dripperlines of production the for 2011. to 2009 from ton per KwH to fixtures light replacing including energy, save installing lighting, fluorescent saving energy T5 replacing activation, lighting for motion-sensors efficient more new, with units air-conditioning parts different in areas insulation adding models, and air cool of escape prevent to plant the of computers, on shutdowns automatic installing new a 2011, During lights. and conditioning air cool to used is which chiller, energy-efficient DOING MORE FOR THE THE FOR MORE DOING ENVIRONMENT ISRAEL PLANT, MAGAL AT

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 120 123 ENVIRONMENTAL SUSTAINABILITY IN THE U.S. U.S. THE IN SUSTAINABILITY ENVIRONMENTAL Balanced its of part as programs sustainability several tracks USA Netafim reflects Scorecard This business. the managing to approach Card Score management each month and tracks progress at senior established goals for onsite include: tracked currently metrics and Programs bulk meetings. of monthly reuse through avoidance landfill efficiency, energy reduction, scrap reduction general a and office the in recycling paper containers, shipping technical and payments ordering, electronic through consumption paper in literature. U.S. THE IN DRIPPERLINES RECYCLING legislation of terms in advanced most the is market U.S. the present, the At farmers offered has USA Netafim recycling. to relating requirements many years and in 2009, Netafimservice of collecting old plastics tubing for collects enabling the Company to betterUSA acquired its own recycling equipment, Netafim plastic. recycled the of performance and quality the recycles and control California of State the in fields farmers' from tubing plastic waste and mining and landscape applications.plastics for use in dripperline products for Energy in Leadership for qualify to manufacturer only the is Netafim for recycled content ofEnvironmental Design (LEED) Building Credits laws applications. Netafim's U.S.dripperlines used in building and landscaping state as farmers, California to limited currently is program recycling into efforts into the State of California.prohibit transportation of used dripperlines recycling expand to initiative an progressing is Netafim However, recycling program in 2011,other parts of the U.S. As a result of Netafim's reduced by 730 tons. plastic waste sent to landfill by farmers was In 2010, 2010, In

As part of Netafim's environmental responsibility responsibility environmental Netafim's of part As local with partnered has Netafim 2007, Since greatest the made have which countries The Netafim collected, recycled and put back into into back put and recycled collected, Netafim 1,250 and material, of tons 945 production 2011. in tons and life-cycle approach, as well as responsiveness responsiveness as well as approach, life-cycle and developing been has Netafim needs, customer to and dripperlines used retrieve to processes redeploy or production into back them recycle has Netafim industries. other in use for them develop to technologies advanced applied clean to able are which processes recycling to as so thoroughly sufficiently dripperlines used which production, new for specifications meet and dirt of level the given challenge, major a is plastic in embedded become which contaminants of Because time. of period long a over dripperlines use to possible always not is it preference, farmer landscape but agriculture, for materials recycled content recycled use can systems extraction and recycled Therefore, concern. without dripperlines landscape in use for routed mostly are dripperlines materials unusable while applications mining and sent or sectors other in applications for resold are landfill. to in countries the of many in operations recycling dripperlines retrieve to operates Netafim which recycling for products quality acceptable route and 2012, During resale. for remainder the and recycling and retrieval a formalize will Netafim operations. global all to apply to policy at recycling dripperline of terms in progress Australia. and Israel U.S., are Netafim Depending on the specification and crop crop and specification the on Depending replaced be to need dripperlines some application, long as for use in remain others while annually, is dripperlines used of Disposal years. 15 as now is incineration as farmers for problematic landfill and world the of parts many in prohibited many hand, other the On expensive. are costs dripperlines purchase to reluctant are farmers their of because materials recycled from made materials. recycled to sensitivities crop of fear RECYCLING OF PLASTIC PLASTIC OF RECYCLING DRIPPERLINES PACKAGING MATERIALS MATERIALS PACKAGING shipments individual of thousands ships Netafim and world the over all dealers Netafim to year per shipments these of Most customers. to directly manufacturing global Netafim's given local, are to designed are materials packaging and network, transportation local withstand to enough sturdy be energy-efficiency optimize to enough light but are dripperlines general, In utilization. material and shipped without external packaging. Netafim attempts to minimize the use of paper in in paper of use the minimize to attempts Netafim and purchase controls carefully and operations all logistics in used is paper general, In paper. of use all for and products of shipments for transactions office for purchase paper All tasks. based office post-consumer from made is use recycled content. PAPER CONSUMPTION CONSUMPTION PAPER

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 122 125 http://www.noble.org" http://www.noble.org" For more information about pleaseFoundation, Noble the see: www.noble.org THE THE ARMY IS GROWING The purpose of the project is to advance the self-sufficiency of farmers in in farmers of self-sufficiency the advance to is project the of purpose The in kit FDS the assemble to able was team Army US the training, the During TEACHING IRRIGATION IN AFGHANISTAN IN AFGHANISTAN TEACHING IRRIGATION Noble around the world aboutAs part of its commitment to educate farmers the by led project a support to happy was Netafim irrigation, sufficiency drip self promote to army, US the of cooperation the with Foundation and is an independent, nonprofitof farmers in Afghanistan. The Noble Foundation farmers assists Foundation The US. Oklahoma, headquartered to institute programs, agricultural and research science plant conducts and ranchers and internationally. nationally enhance agricultural productivity regionally, help to practices, and technology improved them bringing by donated Afghanistan Netafim project, this in partner a As livelihood. long-term to a taken ensure be to two and training for one kits, (FDS) System Drip Family three Agribusiness Development Army National Guard agricultural Afghanistan by the Texas advanced on farmers Afghan educating for tool a provide to Team, FDS the solutions, including drip irrigation, for growing vegetables, wheat and alfalfa. of use the for guidance and training provided Netafim addition, In two for kits: in 2011, Netafim US District Sales Managers Danny Sosebee and Jimmet Fields, Jim salesman distributors) (Netafim D Diversity in and them Hunt, educate to Team Development Agribusiness the with training of days Afghanistan. to traveled they before irrigation drip guidance the with grounds, their on Foundation Noble the by prepared plot can a farmers how of experience first-hand team the gave This Netafim. of Afghanistan. in livelihoods own their and yields their improve

For more information about this project, see: www. http://www.asyv.org" asyv.org

In 2011, Netafim's total community contributions around the world, EMPLOYEE VOLUNTEERING IN IN VOLUNTEERING EMPLOYEE PROJECTS COMMUNITY Netafim employees are encouraged to get involved in community projects, collective of spirit a in needs community local to response a long providing include programs volunteering Netafim's solidarity. and hoc ad responsibility provide that projects specific as well as programs scope large term to skills volunteering opportunities. In the ongoing community programs, Netafim and time their donating activities, regular in engaged are school employees disabilities, with those as such need, in populations different assist opportunities volunteering hoc Ad communities. vulnerable and children, include food drives, building or renovating community gardens, and participating in an annual 'Good Deeds Day'. sustainable productivity, supports community empowerment and economic precision irrigation andNetafim's core business which advances economic and empowerment community supports productivity, livelihoods sustainable improving for basis a provide products irrigation Drip development. Netafim's of donation Through less. with more do to communities enable a and makes Netafim communities, local to training providing and communities in products sustainability and life of quality the to contribution significant around the world. to amounted products, Netafim of donations and donations cash including worldwide. $550,000 over OUR APPROACH APPROACH OUR placed in the social value system thatNetafim's establishment is firmly rooted This Israel. in movement Kibbutz the of development the all for characterized providing and values community shared resources, shared on emphasis the Community involvementmembers of society including the most vulnerable. from identity corporate Netafim's of element core a been key therefore two has on based is approach Netafim's company. the of beginnings very elements: BUSINESS CORE NETAFIM'S OF CONTRIBUTION PRODUCTS AND SKILLS

COMMUNITIES FOR OUR OUR FOR DOING MORE MORE DOING

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For more information about please see: ASYV, www.asyv.org agahozo) and and agahozo)

shalom). Life at the village village the at Life shalom).

The Village Farm produces a large variety of fruits and vegetables, providing providing vegetables, and fruits of variety large a produces Farm Village The during Netafim from purchased systems, drip 20 with equipped is farm The MORE MORE DRIP... RWANDA IN PEACE AND HOPE OF VILLAGE A Ann by 2007 in founded was (ASYV) Village Youth home a Agahozo-Shalom is The village The York. New in residing lawyer African South a Tutsi Heyman, the after and during orphaned were who 15-21 aged children the 500 of for idea the initiated and envisioned Heyman Ann 1994. in genocide tribe ASYV 50's. which absorbed thousands ofvillage based on the Israeli youth village model, and 1940's the in Holocaust the after Israel in arrived that orphans young people. It is a place of hope, protect and nurture is designed to care for, word Kinyarwanda the by (signified dried" are "tears where Hebrew, (from peace in live to is aim need the they where education the with children the providing curriculum, full a includes well as life computers, to succeed as adults. Informal activities such as photography, for skills children the provide yoga and dances traditional painting, as an outlet for dealing with the suffering they have experienced. village the allows It needs. food daily ASYV the of 35% approximately for Money to save on costs while generating income from the sale of farm produce, vegetables. assorted and peppers bananas, pineapples, include which earned by selling crops is used to purchase other foods and staples not grown on the farm. Students work on the farm on Saturdays, learning about agriculture and acquiring farming skills and knowledge. a the village's construction phase. This connection led to further involvement received ASYV 2010, In Netafim. and ASYV between collaboration and automated advanced, highly

For more information about this project, see: www.globalgiving.org/ projects/abundant-zambia

Blaustein Institutes for Desert Research in Israel was was Israel in Research Desert for Institutes Blaustein

and the and

Ben Gurion University of student at Ben Gurion University led by a doctoral A research study, communities these sustain to used be will gardens the from income The Systems Drip Family 50 donating by project this in cooperated has Netafim the within plots own their receive program the in participating Villagers The research. and program this to greatly contributed FDS Netafim's to commitment its demonstrates project this in involvement Netafim's Water shortage, contamination, and food insecurity in Sub-Saharan Africa Africa Sub-Saharan in insecurity food and contamination, shortage, Water decades. several for concern serious of cause the been have as cholera diseases such recurring water-related Extreme poverty and rural areas. and diarrhea affect many Negev, the communities rural that ways different the investigate to 2010 in established in prosperity. path toward water improvements and could finance their own District Kazungula the in program a includes research the of part main A 5,000 for development economic enable to aims which Zambia on southern centered is program The gardens. income-generating through health and villagers school region's the where area, the in village largest the the in Simango, villages other two in located are gardens more Two located. is clinic area - Sibunimba and Simakalanga. many and Like much of rural Zambia,and fund development of clean water sources. day, a $1.25 than less earn village region the of residents of 98.5% household most depend wholly on theirgo hungry through the long dry season as and needs subsistence their meet to maize rain-irrigated of yields sources are commonly contaminated or located far fromexpenditures. Water households. and beetroot onions, cabbage, squash, zucchini, peppers, growing to for (FDS) platform financial a with villagers District Kazungula the providing more, infrastructure. water their improve managed is Irrigation crops. their growing for responsibility take and and gardens up set help to paid are who Managers Garden trained two by centrally including farming of aspects other All equipment. irrigation the this In operate owner. plot the by handled are spraying and support crop weeding, also but tools and crops garden, a only not receive residents program, knowledge and a framework to improve their ability to generate income. previous no with farmers for easy it makes unit FDS the of good a and simplicity curve fast-learning a enabling thus irrigation, drip with experience were systems drip 25 and 2011 in began project The success. of chance installed. The project is expected to cover its entire cost within 2 years. in capabilities agricultural advanced and productivity sustainable with building more do to villagers Zambian enabling By countries. economy emerging self-sustaining. become can communities whole less, EMPOWERING COMMUNITIES IN ZAMBIA ZAMBIA IN COMMUNITIES EMPOWERING

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For more information about Pelemix, see: m www.pelemix.co PEACE, PEACE, AND HOPE AGRICULTURE The region now suffers from a shortage of fresh produce, as well as a high high a as well as produce, fresh of shortage a from suffers now region The to back fields the return and efforts rehabilitation the with help to order In by work which Kits, System Drip Family 50 donated Netafim 2011, During DISASTER RELIEF – REBUILDING JAPAN JAPAN REBUILDING – RELIEF DISASTER hit followed by a Tsunami In March 2011, an 8.9 magnitude earthquake area devastation and loss of life.Japan's north-east region, causing unimaginable the into washed that Tsunami the by damaged were areas Extensive to due chemicals and radioactive matter. as it surged salt water as well as oil, fuels, farming for unfit deemed now is area agricultural prosperous once The overcome. to years take will which contamination, serious level of unemployment among farmers that can no longer work their land. initiated has Government, Israeli the with cooperation in Netafim, farmers, the a relief package for agriculture in north-east Japan. flatbed gravitation, suitable for areas with irregular electricity and water infrastructure. disconnected a in cultivated are crops contaminated, is soil the company As Israeli the (by donated substitute soil a – media husk coconut with Pelemix) together with the FDS kits. In accordance to Netafim's tradition of agronomic and technical provides Netafim farmers, with knowledge the has sharing Kit System Drip Family Each team. local Japan Netafim the by training potential to provide fresh, uncontaminated produce for hundreds of people.

For more information about please see: ASYV, www.asyv.org ...MORE ...MORE PROSPERITY irrigation, nutrigation and filtration system as a joint joint a as system filtration and nutrigation irrigation, planted were idea another of seeds first the 2011, During in begin to scheduled is program academic weeks 20 The contribution from Netafim and the Jewish National Fund, to to Fund, National Jewish the and Netafim from contribution greenhouses. four ASYV's for irrigation provide an create to collaborate will ASYV and Netafim which in students senior-year the for program agricultural-educational learning include will curriculum program's The village. the at Upon experience. on hands provide and irrigation drip about irrigation drip become to able be will students the graduation, independent as operating or Netafim by employed agents closing equipment, the demonstrating of role a with resellers, villages different in farmers holding small training and sales an village, the from member faculty A Rwanda. throughout about learn to 2011 April in Israel in Netafim visited agronomist, irrigation. drip and technologies agriculture advanced studies, theoretical of hours 60 include will and 2012, March and materials syllabus All experience. practical of hours 60 and graduation, Upon preparation. in currently are guides training Netafim by donated kit irrigation drip a receive will student each sustainable bringing venture, new a in off her or him start to to scheduled is class first The Rwanda. rural to productivity graduate in November 2012.

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For more information about Etgarim, please see: www.etgarim.org through outdoor sports and active active and sports outdoor through

disabled Israel Defense Force veterans and rehabilitation experts to enable enable The non-profit organization Etgarim was established in 1995 by a group ofto experts rehabilitation and veterans Force Defense Israel disabled children, adolescents and adults with special needs to realize their optimum society within integrate to and potential MORE RIDING, MORE HOPE! HOPE! MORE RIDING, MORE adults and children disabled 5,000 around Currently, activities. recreational participate in Etgarim activities in 240 different frameworks across Israel. Netafim's in Kibbutzand Etgarim between collaboration fruitful a of beginning the was This spread quickly giving and challenge sports, of spirit The Hatzerim. plant and offices at Hatzerim, and later to the entire company inspiring a great deal of employees to take part. the throughout clubs Etgarim at activities in participate the volunteers in part Netafim take offices Hatzerim Netafim's from employees Ten country. rides weekly tandem rides with Etgarim members with disabilities that prevent special organizes also Etgarim own. their on bikes riding in from and them events, these in participate volunteers Netafim marathons. annual and 2011, over 100 Netafim volunteers participated in "Wheels of Hope", a nation- wide riding experience. BIKING TO TO BIKING SUSTAINABILITY For more information about Earth's Promise, please see: http://earthspromise.org

Immigration to Israel requires a major adjustment, not only to to only not adjustment, major a requires Israel to Immigration help to designed project, garden community a 2010, In drip a contributed program, this in partner key a Netafim, provides and center community a as functions garden The MORE VEGETABLES, MORE MORE VEGETABLES, MORE EMPOWERMENT! Beer of city southern the in Center Absorption Kalisher The immigrants Ethiopian new of hundreds houses Israel in Sheva rural from arrive immigrants Most years. 4 to up of periods for heritage, their in role central a plays agriculture where areas, economy and community life. life of way urban new the to also but culture, and language the which is a far cry from the simple village life they led in Ethiopia. by launched was move, life-changing this with immigrants was garden The Promise. Earth's organization non-profit the Center, Absorption the near plot neglected a in constructed tomatoes, as (such vegetables grow to immigrants new inviting lettuce, beans and corn) and spices. plant Hatzerim Netafim's from employees and system irrigation lent and system irrigation the installed plot, the in trenches dug agronomic support. a Today, pride. and empowerment neighborhood with residents plots garden their tend regularly immigrants Ethiopian of group the serving harvested, been have produce of tons several and community. local VEGETABLES VALUES - WITH VALUES COMMUNITY COMMUNITY

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Left image: Yerushalmi, Amit Hatzerim Netafim's briefs Manager Plant begin they as students their day at the factory. David image: Right and Assembly Teresh, Department Packaging the shows Manager the employees young ropes. For more information about IEICI, please see: www.export.gov.il/heb/ Homepage During the program, students select a business project and work to to work and project business a select students program, the During MORE WORK, MORE FUN! FUN! MORE WORK, MORE In 2011, Netafim added its support to the new Leap to Industry Program, programs operates which Organization, Future the to Leap the by organized privileged under and periphery the from youth of advancement the gaps for educational reduce to objective an with Israel, around reduce neighborhoods to aims Program Industry to Leap The leadership. social increase and The high school drop-outs among youth by providing them with learning skills, confidence. and motivation building and training, development personal program includes one day a week studying electronics and administration at a nearby college, and another day of practical training at the Netafim plant. Comprehensive Rabin Yitzhak the from students 18 of group a Netafim, At to School in Beersheba report in every Monday at the Netafim plant in Hatzerim sponsors as act employees Netafim Six experience. work enriching an for the students. MORE YOUTH, MORE BUSINESS! BUSINESS! MORE YOUTH, MORE the by led Program, Leadership Business Young the supports Netafim Institute (IEICI) , a non- profitIsrael Export and International Cooperation international and export industrial Israel's promote to working a is organization Program Leadership Business Young The relationships. commerce entrepreneurship in interest an with students grade 10th for camp the summer during lectures give Netafim from Volunteers initiatives. social and developing for know-how and tools with students the providing program, successful projects and achieving objectives. advice, guidance and support. Forimplement it. Netafim volunteers provide wished who students of group a assisted Netafim from volunteers all at example, advice and support technical providing garden, community a develop to stages of the development.

For more information about Maavarim, please see: l www.maavarim.org.i

This is the third year Netafim has been supporting the Tipat Tipat the supporting been has Netafim year third the is This Maavarim, a non-profit organization which runs an occupational occupational an runs which organization non-profit a Maavarim, periphery Israel's of residents the of benefit the for center of Drop (A Yozma Tipat called program a maintains areas, business and entrepreneurship encourage to designed Initiative) an Such Israel. of area southern low-income the in development organizational whose Netafim, for home to close very is agenda entrepreneurship, on built been has success and culture innovation and business advancement. 2011. in "graduated" class latest the and program, Yozma customer includes entrepreneurs young the for Training skills presentation development, product marketing, focused have program this in Participants tools. analysis business and businesses of variety a running currently are and established project design, jewelry coaching, production, event including more. and design interior management, MORE ENTREPRENEURSHIP, ENTREPRENEURSHIP, MORE FUTURE! MORE DROP BY DROP ENTREPRENEURSHIP -ENTREPRENEURSHIP

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For more information about Arazim school, please see: www.dys-yeladim.com/ arazim/who_we_are.html For more information about Renanim School, please see: www.att.org.il/k12/renanim/ SitePages/home.aspx A GREENHOUSE OR OR GREENHOUSE A A CLASSROOM? Netafim employees at the Yiftach site are involved in many many in involved are site Yiftach the at employees Netafim In addition, several times a year, Netafim organizes outings outings organizes Netafim year, a times several addition, In MORE SCHOOL, MORE WORK! WORK! MORE SCHOOL, MORE 120 for school a is Israel, Shmonah, Kiryat in located Renanim, to strives which disabilities, mental with 6-21 aged children insuccessfully integrate them help to tools with children provide Renanim support to commitment a made has Netafim society. workplace the about school the at children older the teaching by Netafim production. and safety, processes, work including, work factory a for hours, 3 for week, a once children, 3 hosts Manual the in tasks simple given are children The experience. Netafim of supervision the under Department Assembly equipment donated also Netafim staff. school and employees to premises, school's the on room assembly manual a for provide continuity for the children in their learning process. other activities with Renanim School to help make the children's environmentally more productive, more experience school aware and more fun. MORE NATURE, MORE CHILDREN! CHILDREN! MORE NATURE, MORE site Magal Netafim's from employees Netafim 2003, Since 120 for home a school, boarding Arazim with volunteered have the At 6-18. aged youths at-risk or underprivileged and children support educational and emotional receive children the school, Netafim empowerment. and self-realization for tools and which in children, the for Class' 'Greenhouse a run volunteers support this program, they learn about agriculture and nature. To the teach to garden vegetable a and greenhouse a built Netafim yield. the sell later and spices and vegetables grow to children the allowing Netafim, by provided was equipment Irrigation drip including methods agricultural advanced learn to children irrigation and computerized systems. activities. outdoor other and parks nature to children the for volunteers Netafim 15 Israel, in holiday special a on year, Every the Arazim greenhouseorganize a social event, using sales from funds. additional raise to

A WISH WISH A COME TRUE For more information about the Make-A-Wish Foundation, please see: www.wish.org For more information about Misholim please see: www.magal-horses.dpages. co.il/apage/42564.php HORSING HORSING AROUND

13 Netafim volunteers participate in this program, arriving arriving program, this in participate volunteers Netafim 13 MORE FUNDRAISING, MORE MORE FUNDRAISING, MORE TRUE! COME WISHES the Make-a- Employees at Netafim USA have been supporting 2007 with fund- Wish Foundation of Central California since sales, cookbook raffles, lunches, including activities, raising In more. and sales bake auctions, sales, yard games, bingo to $10,000 raised support, company with employees, 2011, 10, age Mario, children, local two to wishes holiday grant 12, age Nathan, and disease, bone genetic a with afflicted to opportunity an have soon will Mario tumor. brain a battling recently Nathan and Mysterio Rey wrestler professional meet Cowboys Dallas the on players the meet to chance a had football team. MORE HORSES, MORE THERAPY! THERAPY! MORE HORSES, MORE physiological, positive have to known is riding horse Therapeutic particularly children, for benefits social and psychological non-profit The disabilities. physical or emotional with those children for activities of variety a hosts Association Misholim other and dogs horses, with therapy on based disabilities with with children reaches Misholim activities, its Through animals. an them offering communities, disadvantaged from disabilities opportunity for a special kind of treatment. therapeutic in children 20 assist to hours three for week a once develop volunteers Netafim animals. involving activities seeing enjoy and children the with relationships supportive progress from week to week.

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www.netafimusa.com/ For more information about see: please Common Vision, http://www.commonvision. org For more information about the Giving Garden, please see: givinggarden For more information about Smart Irrigation Month, please see: www. smartirrigationmonth.org In this project Netafim achieved a triple outcome – helping build a build helping – outcome triple a achieved Netafim project this In For the 2011 Smart Irrigation Month, Netafim USA organized a run with all all with run a organized USA Netafim Month, Irrigation Smart 2011 the For garden that will benefit disabled students at the school, creating a spirit and employees Netafim's among and community the in the at volunteering of vegetables and fruits selling – outcome economic tangible a providing local Farmers' Market . In 2011, Netafim participated in a project for planting a garden at Rata High High Rata at garden a planting for project a in participated Netafim 2011, In Leadership School in California that serves disabled students aged 13-18. Netafim Agriculture California the and PTA school's the with 12 this collaborated of course the during volunteers and equipment donating the serve Foundation, to place in put were dripperlines of meters 600 Over project. week irrigation drip a organized also Netafim garden. the in trees and and plants 300 install to how enthusiasts gardening and volunteers teaching workshop, system. irrigation drip a maintain MORE GIVING, MORE GARDEN! GARDEN! MORE GIVING, MORE MORE TREES, MORE FRUIT! FRUIT! MORE TREES, MORE program with Common Vision,In 2011, Netafim USA launched a collaboration and real change in health, hunger, a non-profit organization working to create education inspirational through change climate and justice, environmental Program, Tour Fruit Tree on-the-ground community action. The organization's impacted 60,000 students,in which Netafim USA takes part, has directly into centers community and schools income low 180 over transformed 4,300 fruit trees. During 2011,abundant orchards with the planting of over for each of the trees planted,Netafim donated 50 drip irrigation systems 1,000 over easily for the trees and to growwhich enable students and staff to care more for system irrigation the provided Netafim addition, In fruit. the more use to staff school the train employees Netafim trees. eaten planted are newly trees the from Fruit results. best the achieve to equipment irrigation enriched, but also their diet. by the students, so that not only is their world Irrigation Month 2011 in California. The Irrigation Association is the leading leading the part in SmartIrrigation Association, Netafim USA took As a member of the is Association Irrigation The California. in 2011 Month Irrigation of Smart for irrigation equipment. The purpose membership organization of water- increase public awareness of the value Irrigation Month is to products,has and grow demand for water-saving consumption efficiency and 2005 in launched Month Irrigation Smart services. and practices years. six past the for July every place taken initiative The California. Central of Hospital Children's the to going proceeds than $5,000 for the hospital. drew 150 participants and generated more MORE IRRIGATION, MORE HOSPITALS! HOSPITALS! MORE IRRIGATION, MORE

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 136 139

Netafim will increase efforts to support agricultural productivity in Asia and and Asia in productivity agricultural support to efforts increase will Netafim Netafim will establish a comprehensive tracking and reporting system 2013 end by targets environmental following the to commits Netafim 10% of reduction consumption: Energy 5% of reduction consumption: Water Netafim of content recycling of increase content: Recycling Netafim will increase efforts to gather used dripperlines from farmers for Netafim will establish a comprehensive tracking and reporting systemNetafim will establish a comprehensive tracking • • • • • • • • • volunteer all ensure to community the in involvement employee for hours are recorded. local • with collaboration and systems irrigation of donations through Africa needs. local meet and identify to organizations ENVIRONMENT ENVIRONMENT COMMUNITIES COMMUNITIES for key environmental impacts of Netafim manufacturing plants: energy • energy plants: manufacturing Netafim of impacts environmental key and for generation waste consumption, water emissions, carbon consumption, recycling content. Full data will be reported in Netafim's 2012/2013 report. • using 2011 as a baseline: • • • 15% by products • recycling purposes in all countries in which Netafim operates.

Netafim will conduct a comprehensive employee survey to review and roles management in diversity employee re-examine will Netafim Netafim will improve efforts to ensure greater employee safety and Netafim will continue to develop new, advanced technologies for irrigation irrigation for technologies advanced new, develop to continue will Netafim in emerging economies,Netafim will continue to develop its presence countries developed in farming urban for solutions its expand will Netafim Netafim will lead a comprehensive training program in the recently recently the in program training comprehensive a lead will Netafim including audit, management risk comprehensive a conduct will Netafim • • • • • • • • EMPLOYEES EMPLOYEES MARKETPLACE MARKETPLACE GOVERNANCE AND ETHICS ETHICS AND GOVERNANCE • Netafim's with engagement and satisfaction of levels employee mission. sustainability and • Board at diversity greater facilitate and encourage to plan a develop year. coming the during levels Management Senior the • in performance safety of monitoring in employees as third-party include significantly rate Accident Workplace its reduce to targets Netafim future. a result of these efforts. of commodity crops, to enable more farmers to grow more with less and • and less with more grow to farmers more enable to crops, commodity of contribute to global food security. and Asia • in farmers small-holding rural for training and awareness providing systems. Africa and providing locally relevant irrigation • initiatives. local of support in updated Netafim Code of Ethics for all employees, including establishing • establishing including employees, all for Ethics of Code Netafim updated by end 2012. procedures for ethics training for new employees to • plan action an develop and risks, social and environmental of aspects address these risks for 2012-2013.

LOOKING AHEAD LOOKING AT NETAFIM - NETAFIM AT SUSTAINABILITY SUSTAINABILITY

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141

Transparency and reporting are the backbone of responsible and and responsible of backbone the are reporting and Transparency attempt an is Report Sustainability This businesses. sustainable about information enough have stakeholders our all ensure to decisions informed make to able be to business Netafim the financial a is this whether Netafim, with relationship their regarding relationship or otherwise. assumptions, underlying the explain we report, this of Four Part In process reporting our governing principles and boundary scope, the in included is which data the gather to used methods the and Compact Global UN the to commitment our confirm We report. sustainability for framework widely-used most the to and the principles include and framework, Initiative Reporting Global the specific reporting, find can readers where showing Table, Index GRI customary report. the within indicators performance and disclosures

TRANSPARENCY TRANSPARENCY AND AND ACCOUNTABILITY ACCOUNTABILITY GROWING GROWING PART FOUR FOUR PART

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 143 We appreciate the efforts of The United Nations Global Compact as a as Compact Global Nations United The of efforts the appreciate We comply we ensure to power our in everything doing to committed are We STATEMENT OF SUPPORT FOR FOR SUPPORT OF STATEMENT COMPACT GLOBAL UN THE its dates back to mid- Netafim's participation in the UN Global Compact confirm to Israel in companies five first the of one was Netafim 2008. United the of principles ten the promoting and upholding to commitment the with for the Millennium DevelopmentNations Global Compact and broad support aligned perfectly as goals business our see to continue We Goals. hereby and Compact Global UN the in participation of practice to and spirit adherence our intensify and increase maintain, to intention our companies reconfirm 50 first the among were we 2011, in why, is This goals. UNGC LEAD the Compact Global the in participation our confirm to globe the around established framework Sustainability Corporate for Blueprint the and program Sustainability global first this of delivery The Compact. Global UN on the by Communication comprehensive full, first, our represents which to Report, testimony a is Principles, Compact Global UN the all addressing Progress, our renewed commitment. are we and responsibility corporate for bar the raise to initiative global truly the regularly speak at UNGC Network events,for We proud to be an active member. table the to agriculture sustainable of experience unique our bringing and Water benefit of other UNGC participants. Netafim has endorsed the CEO Water the in participates and so, do to company Israeli only the Mandate, Workstream. Rights Human and program LEAD the Compact, Global UN the of principles 10 the with Mandate and commit to reporting publicly each year on ourthe CEO Water will ensure that our stakeholders are aware of this commitmentprogress. We updates. our receive and Igal Aisenberg President and CEO April 2012 UN Global Compact Index and GRI Cross Reference Table UNITED NATIONS NATIONS UNITED COMPACT GLOBAL

, and More information can be found on the Netafim corporate global website, m www.netafim.co the websites of Netafim subsidiary companies (accessible from the Netafim global site).

In developing this report, we have considered input from our primary primary our from input considered have we report, this developing In by advised principles the with accordance in written been has report This all including operations global Netafim's all is report this of scope The seek to not chosen has Netafim years. two every report to is intention Our

REPORT approach our describes Ltd Netafim for Report Sustainability global first advance This to 2011 during taken have we actions key the and sustainability to and business. As this is a first reportresponsible and sustainable practices in our studies case through perspective provide to tried have we the to Netafim, relates for data cases, all In years. prior to relating available, where data, stated. otherwise unless year calendar 2011 stakeholders additional and – suppliers customers, employees, – stakeholders a have we whom with experts agronomic and agricultural the by including headed Committee Steering Reporting A relationship. the collaborative determined executives Company including and Officer Sustainability issues Chief material of assessment an on based report this for content of selection to stakeholders. This teamfor Netafim and those known to be important developing this report. This reportmet several times during the process of Application an at Guidelines G3 (GRI) Initiative Reporting Global the follows Level B, and has been checked by the GRI. Protocol for defining report content. business the Global Reporting Initiative Technical long-term our for important most issues (the Materiality are: These to stakeholders), Stakeholdergrowth and which are of most importance Inclusiveness (responding to stakeholder expectations and interests), contexts wider the in performance our (presenting Context information Sustainability the all of (inclusion Completeness and issues) to sustainability of stakeholders enable to order in impacts economic significant reflects which assess our performance). subsidiary companies where Netafim has a majority shareholding (over 50%). external assurance for this Sustainability Report due to resource limitations. ABOUT THIS THIS ABOUT

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 142 145 84, 114 93 7, 21 7 87 2, 103, 108-109 Referenced on on Referenced page: For more information about the CEO Water Mandate, please see: http:// ceowatermandate.org ENDMA (water aspect), aspect), (water ENDMA EN8, EN9, EN10 with suppliers Working 4.13 SO5 SO1 3.1-3.13 GRI Indicators Direct Operations and Chain Supply Management Watershed Collective Action Public Policy Community Engagement Transparency Below is a table showing Netafim's alignment with the Six Elements ofBelow is a table showing Netafim's alignment Element 1: Element 2: Element 3: Element 4: Element 5: Element 6: Netafim's President and CEO, Igal Aisenberg, confirms that Netafim Global Compact Principles Please see the inside cover of this report for contact details for the purpose purpose the for details contact for report this of cover inside the see Please feedback. of providing DISCLOSURE MANDATE WATER CEO UN TABLE REFERENCE CROSS GRI AND as Mandate in 2008 and submitted a firstserve Netafim endorsed the UN CEO Water will Report Sustainability This 2010. in Progress on Communication Mandate in line with the CEO Water Netafim's second COP for the Water Policy. Transparency Mandate Global the to relevant, where –referenced, cross Mandate, Water CEO the Reporting Initiative indicators. continues to endorse and promote the CEO Water Mandate and will will and Mandate Water CEO the promote and endorse to continues continue to disclose transparently regarding Netafim's water management performance. 116-117 116 63, 117 117 117 69, 117 82, 92, 93, 83- 84, 109, 114 4, 84, 114 114 117 Referenced on on Referenced page: HR1, HR2, HR3, HR4 HR2, HR3 HR5, LA3, LA4 HR7 HR6 HR4,LA10, LA11 3.13, EN1, EN2, EN3, EN3, EN2, EN1, 3.13, EN4, EN5, EN6, EN7 1.1, EN8, EN9, EN10, EN10, EN9, EN8, 1.1, EN13, EN12, EN11, EN14, EN15, EN16 EN17 SO2 GRI Indicators Business should support and respect the the respect and support should Business human proclaimed internationally of protection rights. Business should ensure that they are not complicit in human rights abuses. Business should uphold the freedom of of freedom the uphold should Business the of recognition effective the and association right to collective bargaining. Business should support the elimination of all all of elimination the support should Business forms of forced and compulsory labor. Business should support the effective abolition abolition effective the support should Business of child labor. Business should support the elimination of of elimination the support should Business and employment of respect in discrimination occupation. Business should support a precautionary precautionary a support should Business approach to environmental challenges. Business should undertake initiatives to promote promote to initiatives undertake should Business greater environmental responsibility. Business should encourage the development development the encourage should Business friendly environmentally of diffusion and technologies. Business should work against corruption in all its its all in corruption against work should Business forms, including extortion and bribery. Principle 1: Principle 2: Principle 3: Principle 4: Principle 5: Principle 6: Principle 7: Principle 8: Principle 9: Principle 10: Global Compact Principles UN GLOBAL COMPACT INDEX AND AND INDEX COMPACT GLOBAL UN TABLE REFERENCE CROSS GRI

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 144 147

Report Externally Assured Externally Report A+

A For more information, please see: . www.globalreporting.org

Same as requirement for Level B Management Approach Disclosures for each Indicator Category Report on each G3 and Sector Supplement* Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator or b) explaining the reason for its omission. Report Externally Assured Externally Report B+ B

Report on all criteria listed for Level C plus: 1.2 3.9, 3.19 4.5-4.13, 4-16-4.17 Management Approach Disclosures for each Indicator Category Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environmental, Human rights, Society, Labor, Product Responsibility. Report Externally Assured Externally Report C+ C Not Required Report on: 1.1 2.1-2.10 3.1-3.8, 3.10-3.12 4.1-4.4, 4.14-4.15 Report on a minimum of 10 Performance Indicators, including at list one from each of: Economic, Social and Environmental This report complies with Application Level B of the GRI G3 Framework.This report complies with Application Level of level the to relate framework GRI the of levels different The This has been confirmed by experts at the Global Reporting Initiative who who Initiative Reporting Global the at experts by confirmed been has this This with compliant be to it found and form draft in report our checked level. reporting the of table the is Below report. the in disclosure and transparency GRI: the of Levels Application GRI is a global non-profit international organization which acts to increase the the increase to acts which organization international non-profit global a the is GRI throughout companies among reporting environmental and social of reporting level the of use the is process this assimilating of way main The and world. impacts on reporting for guidelines detailed contains which the framework around companies of thousands which structure consistent a provides world now use for sustainability reporting.

G3 Management Approach Disclosures G3 Profile Disclosures G3 Performance Indicators & Sector Supplement Performance Indicators

Report Application Level

Standard Disclosures Standard * Sector Supplement in final version

GUIDELINES GRI REPORTING REPORTING GRI

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 146 149 Netafim operations operations Netafim more not are which than 50% owned are Netafim by this from excluded report. operations Netafim more not are which than 50% owned are Netafim by this from excluded report. measurement Data and techniques of bases the are calculations the in included texts, the of body the alongside tables. data relevant This is Netafim's Netafim's is This Sustainability first Report. Comment 142 This page 5 142 142 142 142 142 This page Page Page No. Fully Fully Fully Fully Fully Fully Fully Fully Fully Report Basis for reporting on joint ventures, subsidiaries, subsidiaries, ventures, joint on reporting for Basis other and operations, outsourced facilities, leased from comparability affect significantly can that entities period to period and/or between organizations. of bases the and techniques measurement Data techniques and assumptions including calculations, of compilation the to applied estimations underlying report. the in information other and Indicators the substantially to or apply, to not decisions any Explain diverge from, the GRI Indicator Protocols. Contact point for questions regarding the report or its its or report the regarding questions for point Contact contents. Process for defining report content. divisions, countries, (e.g., report the of Boundary suppliers). ventures, joint facilities, leased subsidiaries, See GRI Boundary Protocol for further guidance. or scope the on limitations specific any State for principle completeness (see report the of boundary scope). of explanation Reporting cycle (annual, biennial, etc.) Reporting cycle (annual, Reporting period (e.g., fiscal/calendar year) for for year) fiscal/calendar (e.g., period Reporting information provided. previous report (if any). Date of most recent Description 3.8 3.9 3.4 3.5 3.6 3.7 3.3 G3 indicator 3.1 3.2

Comment 6 40-44 10 12 25 10 20 24 12,20 10 24-26 36 Page Page No. Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Report Statement from the most senior decision-maker decision-maker senior most the from Statement Description of key impacts, risks, and opportunities. Name of the organization. services. and/or products, brands, Primary including organization, the of structure Operational and subsidiaries, companies, operating divisions, main joint ventures. Location of organization's headquarters. operates, organization the where countries of Number or operations major either with countries of names and issues sustainability the to relevant specifically are that covered in the report. Nature of ownership and legal form. breakdown, geographic (including served Markets sectors served, and types of customers/beneficiaries). Scale of the reporting organization. period reporting the during changes Significant regarding size, structure, or ownership. received in the reporting period. Awards Description

1.1 1.2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 G3 indicator

DISCLOSURES PROFILE PROFILE

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 148 151 The Board of of Board The adheres Directors Netafim the to Conduct of Code to subject is and whistleblowing policies. the Currently Directors of Board have not does specific a for mechanism own its evaluating performance. Comment This page 26 23, 28 26,27 This page 116 15,36 Page Page No. Fully Fully Fully Fully Fully Fully Fully Report Processes in place for the highest governance body to to body governance highest the for place in Processes are avoided. ensure conflicts of interest and qualifications the determining for Process governance highest the of members the of expertise on strategy organization's the guiding for body economic, environmental, and social topics. values, or mission of statements developed Internally economic, to relevant principles and conduct, of codes status the and performance social and environmental, of their implementation. for body governance highest the of Procedures and identification organization's the overseeing social and environmental, economic, of management opportunities, and risks relevant including performance, internationally with compliance or adherence and principles. and conduct, of codes standards, agreed governance highest the evaluating for Processes to respect with particularly performance, own body's economic, environmental, and social performance. precautionary the how and whether of Explanation organization. the by addressed is principle or approach and environmental, economic, developed Externally which to initiatives other or principles, charters, social endorses. or subscribes organization the Description G3 indicator 4.6 4.7 4.8 4.9 4.10 4.11 4.12 This is Netafim's Netafim's is This Sustainability first Report. Netafim's is This Sustainability first Report. Comment

This page This page 148 142 24, 26-27 26 26 27 26 Page Page No. Fully Fully Fully Fully Fully Fully Fully Fully Fully Report Explanation of the effect of any re-statements of of re-statements any of effect the of Explanation reasons the and reports, earlier in provided information acquisitions, / mergers e.g., re-statement such for business, of nature years/periods, base of change measurement methods). periods reporting previous from changes Significant methods measurement or boundary, scope, the in applied in the report. Standard the of location the identifying Table report. the in Disclosures Policy and current practice with regard to seeking seeking to regard with practice current and Policy report. the for assurance external including organization, the of structure Governance body governance highest the under committees strategy setting as such tasks, specific for responsible oversight. organizational or governance highest the of Chair the whether Indicate body is also an executive officer. structure, board unitary a have that organizations For state the number of members of the highest non- governance body that are independent and/or executive members. to employees and shareholders for Mechanisms highest the to direction or recommendations provide body. governance of members for compensation between Linkage and managers, senior body, governance highest the and arrangements), departure (including executives and social (including performance organization's the environmental performance). Description 3.10 3.11 3.12 G3 indicator 3.13 4.1 4.2 4.3 4.4 4.5

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 150 153 While Netafim believe in the the in believe Netafim While protecting of importance Netafim's of none biodiversity, material a has products or sites high of areas on impact Therefore value. biodiversity strategy a have not does Netafim biodiversity. managing for Comment 82 82-83 58 119 119 121 This page 118 118-119 118 Page Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Report Economic goals, policy, plans and and plans policy, goals, Economic procedures. Performance Economic Economic Impacts Market Presence Materials Energy Water Biodiversity Emissions, Effluents, and Waste Products and Services Transport Categories and Aspects plans, policy, goals, Environment procedures. ECDMA ENDMA MANAGEMENT MANAGEMENT APPROACH DISCLOSURES

Comment 34 32-33 32-33 15,36 32-33 Page Page No. Fully Fully Fully Fully Fully Report Key topics and concerns that have been raised through through raised been have that concerns and topics Key organization the how and engagement, stakeholder concerns, and topics key those to responded has including through its reporting. Approaches to stakeholder engagement, including including engagement, stakeholder to Approaches stakeholder by and type by engagement of frequency group. Basis for identification and selection of stakeholders stakeholders of selection and identification for Basis engage. to whom with List of stakeholder groups engaged by the organization. organization. the by engaged groups stakeholder of List Memberships in associations (such as industry industry as (such associations in Memberships advocacy national/international and/or associations) positions Has * organization: the which in organizations or projects in Participates * bodies; governance in beyond funding substantive Provides * committees; as membership Views * or dues; membership routine strategic. Description 4.17 4.16 4.15 4.14 G3 indicator 4.13

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 152 155 Netafim does not employ employ not does Netafim from aside personnel security managers, security in-house the in trained are whom of 100% concerning policies organizations human rights. Ethics Ethics of incidents no were There non-compliance of corruption regarding product labeling. of incidents no were There non-compliance of corruption and advertising regarding marketing communications. complaints no were There privacy customer regarding breaches. subject the been not has Netafim non-compliance for fines of Netafim's of use the to relating products. Comment This This page 124 28 10 28 28 100 This page This page This page This page Page Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Report Security Practices Community Corruption Public Policy Anti-Competitive Behavior Compliance Customer health and safety Product and service labeling Marketing communications Customer privacy Compliance Categories and Aspects Categories plans, policy, goals, Society procedures. policy, goals, Responsibility Product plans, procedures. SODMA PRDMA Netafim ensures that the the that ensures Netafim all with complies company all in legislation environmental company the which in countries operates. not do operations Netafim's Indigenous impact negatively people's rights. Comment This This page 118 84 84,91 92 100 90 119 90 91 92 This page 29 This page Page Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Fully Report Overall Indigenous Rights Employment Procurement Practices Compliance Labor/Management Relations Occupational Health and Safety and Education Training Diversity and Equal Opportunity Non-discrimination and Association of Freedom Collective Bargaining Abolition of Child Labor Compulsory and Forced of Prevention Labor Complaints and Grievance Practices Labor Practices goals, policy, plans, plans, policy, goals, Practices Labor procedures. plans, policy, goals, Rights Human procedures. Categories and Aspects Categories LADMA HRDMA

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 154 157 Netafim has not made any any made not has Netafim infrastructure investments.

Netafim's products are energy energy are products Netafim's energy save Products efficient. during applications agricultural in usage. customer

Comment 96 This page 82-83 - - 119 119 120 This This page 120 121 Page Fully Fully Fully Not Not reported Not reported Fully Fully Fully Fully Fully Fully Report Procedures for local hiring and and hiring local for Procedures hired management senior of proportion significant at community local the from operation. of locations Development and impact of of impact and Development services and investments infrastructure benefit public for primarily provided pro or in-kind, commercial, through engagement. bono Understanding and describing describing and Understanding impacts, economic indirect significant impacts. of extent the including Materials used by weight or volume. volume. or weight by used Materials are that used materials of Percentage materials. input recycled Direct energy consumption by primary primary by consumption energy Direct source. energy Indirect energy consumption by by consumption energy Indirect primary source. Energy saved due to conservation and and conservation to due saved Energy efficiency improvements. Initiatives to provide energy-efficient energy-efficient provide to Initiatives products based energy renewable or energy in reductions and services, and these of result a as requirements initiatives. Initiatives to reduce indirect energy energy indirect reduce to Initiatives consumption and reductions achieved. Total water withdrawal by source. source. by withdrawal water Total Indicator EC7 EC8 EC9 EN1 EN2 EN3 EN4 EN5 EN6 EN7 EN8 As a privately owned company, company, owned privately a As order in disclosed not is data this competitive Netafim's protect to position.

Netafim does not have a formal formal a have not does Netafim suppliers. local use to policy cost for practice, in However, often is supply local reasons, not does Netafim preferred. of proportion the calculate suppliers. local on spending Comment This page 44-45 91 111 90-91 This page Page Not Not reported Fully Partially Fully Fully Fully Report

Direct economic value generated generated value economic Direct revenues, including distributed, and employee costs, operating other and donations compensation, retained investments, community capital to payments and earnings, providers and governments. Financial implications and other risks risks other and implications Financial organization's the for opportunities and change. climate to due activities Coverage of the organization's defined defined organization's the of Coverage obligations. plan benefit Significant financial assistance received received assistance financial Significant government. from Range of ratios of standard entry level level entry standard of ratios of Range wage compared to local minimum of locations significant at wage operation. Policy, practices, and proportion of of proportion and practices, Policy, at suppliers locally-based on spending operation. of locations significant Indicator

EC1 EC2 EC3 EC4 EC5 EC6

INDICATORS PERFORMANCE PERFORMANCE

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 156 159 Netafim does not have emissions emissions have not does Netafim of ozone depleting substances. There have been no significant significant no been have There spills in Netafim operations. hazardous ship not does Netafim hazardous All borders. across waste waste is treated locally. by affected are bodies water No Netafim's operations. or fines no paid has Netafim non-monetary sanctions for non- environmental with compliance regulations. and laws Comment This This page - - 121 This page This page This page 123 - This page Page Fully Not Not reported Not reported Fully Fully Fully Fully Fully Not reported Fully Report Emissions of ozone-depleting ozone-depleting of Emissions weight. by substances NOx, SOx, and other significant air air significant other and SOx, NOx, weight. and type by emissions and quality by discharge water Total destination. and type by waste of weight Total method. disposal number and volume of significant Total spills. imported, transported, of Weight deemed waste treated or exported, Basel the of terms the under hazardous VIII, and III, II, I, Annex Convention waste transported of percentage and internationally. shipped and status, protected size, Identity, and bodies water of value biodiversity by affected significantly habitats related discharges organization's reporting the runoff. and water of environmental mitigate to Initiatives and services, and products of impacts extent of impact mitigation. their and sold products of Percentage reclaimed are that materials packaging category. by fines significant of value Monetary and total number of non-monetary with non-compliance for sanctions regulations. and laws environmental Indicator EN19 EN20 EN21 EN22 EN23 EN24 EN25 EN26 EN27 EN28 No water sources are affected by by affected are sources water No water All operations. Netafim's water national from drawn is of countries the in authorities operation.

None of Netafim's sites are in areas areas in are sites Netafim's of None value. biodiversity high of Netafim's products have no direct direct no have products Netafim's biodiversity. on effects Netafim has not engaged in in engaged not has Netafim habitats. protecting or restoring None of Netafim's sites are in areas areas in are sites Netafim's of None Therefore value. biodiversity high of strategy a have not does Netafim biodiversity. managing for None of Netafim's sites are in areas areas in are sites Netafim's of None no and value biodiversity high of species are at risk from Netafim's operations. Comment This This page - This This page This This page This This page This This page This This page - - - Page Fully Not Not reported Fully Fully Fully Fully Fully Not Not reported Not Not reported Not Not reported Report Water sources significantly affected by by affected significantly sources Water water. of withdrawal Percentage and total volume of water water of volume total and Percentage reused. and recycled Location and size of land owned, owned, land of size and Location to, adjacent or in, managed leased, high of areas and areas protected protected outside value biodiversity areas. Description of significant impacts of of impacts significant of Description on services and products, activities, and areas protected in biodiversity outside value biodiversity high of areas areas. protected Habitats protected or restored. restored. or protected Habitats Strategies, current actions, and and actions, current Strategies, on impacts managing for plans future biodiversity. Number of IUCN Red List species species List Red IUCN of Number species list conservation national and by affected areas in habitats with risk. extinction of level by operations, Total direct and indirect greenhouse greenhouse indirect and direct Total weight. by emissions gas Other relevant indirect greenhouse gas gas greenhouse indirect relevant Other weight. by emissions Initiatives to reduce greenhouse gas gas greenhouse reduce to Initiatives emissions and reductions achieved. Indicator EN9 EN10 EN11 EN12 EN13 EN14 EN15 EN16 EN17 EN18

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 158 161 Serious diseases are not a not are diseases Serious Netafim for risk significant not does Netafim employees. on training conduct therefore matters. these There are no union employees at at employees union no are There safety and health Worker Netafim. direct with Netafim by managed is input from employees as required. Operations training hours only. such any made not has Netafim the during agreements relevant period. reporting Comment This This page This This page 100 100 98 26,90 90 This page Page Fully Fully Partial Fully Fully Fully Fully Fully Report Education, training, counseling, counseling, training, Education, programs risk-control and prevention, members, workforce assist to place in members community or families, their regarding serious diseases. Health and safety topics covered in in covered topics safety and Health unions. trade with agreements formal per year per training of hours Average category. employee by employee management skills for Programs the support that learning lifelong and employees of employability continued career managing in them assist and endings. receiving employees of Percentage career and performance regular development reviews. and bodies governance of Composition category per employees of breakdown group, age gender, to according other and membership, group minority indicators of diversity. women to men of salary basic of Ratio category. employee by of number total and Percentage agreements investment significant or clauses rights human include that that have undergone human rights screening. Indicator LA8 LA9 LA10 LA11 LA12 LA13 LA14 HR1 Netafim does not track track not does Netafim environmental expenditures. None of Netafim's employees are are employees Netafim's of None bargaining collective by covered agreement. Netafim always provides notice notice provides always Netafim usually law, by required as periods month. one There are no union employees at at employees union no are There safety and health Worker Netafim. direct with Netafim by managed is required. as employees from input

Comment - - 88-89 91 This This page This This page This This page 94 Page Not Not reported Not Not reported Fully Not Not reported Fully Fully Fully Fully Fully Report Significant environmental impacts impacts environmental Significant and products transporting of used materials and goods other operations, organization's the for the of members transporting and workforce. Total environmental protection protection environmental Total by type. expenditures and investments Total workforce by employment type, type, employment by workforce Total employment contract, and region. Total number and rate of employee employee of rate and number Total and gender, group, age by turnover region. Benefits provided to full-time full-time to provided Benefits to provided not are that employees by employees, part-time or temporary operations. major Percentage of employees covered by by covered employees of Percentage collective bargaining agreements. Minimum notice period(s) regarding regarding period(s) notice Minimum changes, operational significant including whether it is specified in agreements. collective Percentage of total workforce workforce total of Percentage joint formal in represented safety and health management-worker committees that help monitor and and health occupational on advise programs. safety Rates of injury, occupational diseases, diseases, occupational injury, of Rates and absenteeism, and days, lost by fatalities work-related of number region. Indicator EN29 EN30 LA1 LA2 LA3 LA4 LA5 LA6 LA7

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 160 163 There have been no incidents. There have been no Netafim does not specifically specifically not does Netafim corruption. to relating risks analyze a be to considered not is This Netafim's for risk significant operations. No such training was conducted in in conducted was training such No employees train to are Plans 2011. 2012. in There were no incidents of of incidents no were There corruption. No contributions were made by by made were contributions No Netafim. Netafim has not been the subject of of subject the been not has Netafim non-competitive for action legal any behavior. Netafim has paid no fines or or fines no paid has Netafim for sanctions non-monetary and laws with non-compliance regulations. Comment This This page 124 This page This This page This This page 15 This This page This This page This This page Page Fully Fully Fully Fully Fully Fully Fully Fully Fully Report Total number of incidents of violations violations of incidents of number Total people indigenous of rights involving and actions taken. Nature, scope, and effectiveness of of effectiveness and scope, Nature, assess that practices and programs any operations of impacts the manage and entering, including communities, on exiting. and operating, of number total and Percentage risks for analyzed units business corruption. to related Percentage of employees trained in in trained employees of Percentage policies anti-corruption organization's procedures. and Actions taken in response to incidents incidents to response in taken Actions of corruption. Public policy positions and participation participation and positions policy Public and development policy public in lobbying. Total value of financial and in-kind in-kind and financial of value Total parties, political to contributions by institutions related and politicians, country. Legal actions for anti-competitive anti-competitive for actions Legal behavior. Monetary value of significant fines fines significant of value Monetary and total number of non-monetary laws with non-compliance for sanctions and regulations. Indicator HR9 SO1 SO2 SO3 SO4 SO5 SO6 SO7 SO8 No such training was conducted in in conducted was training such No employees train to are Plans 2011. 2012. in There were no incidents of of incidents no were There the during Netafim at discrimination Period. Reporting Netafim does not specifically specifically not does Netafim of freedom to relating risks analyze considered not is This association. Netafim's for risk significant a be to are which of most operations, Netafim. by managed and owned Netafim does not specifically specifically not does Netafim child to relating risks analyze to considered not is This labor Netafim's for risk significant a be are which of most operations, owned and managed by Netafim. Netafim does not specifically specifically not does Netafim forced to relating risks analyze to considered not is This labor. Netafim's for risk significant a be are which of most operations, owned and managed by Netafim. Netafim does not employ security internal from aside personnel security managers, 100% of whom organizations the in trained are rights. human concerning policies Comment - This This page This This page This This page This This page This This page This This page Page Not Not reported Fully Fully Fully Fully Fully Fully Report Percentage of significant suppliers suppliers significant of Percentage undergone have that contractors and actions and rights human on screening taken. Total hours of employee training on on training employee of hours Total concerning procedures and policies are that rights human of aspects the including operations, to relevant percentage of employees trained. Total number of incidents of of incidents of number Total discrimination and actions taken Operations identified in which the right right the which in identified Operations to exercise freedom of association at be may bargaining collective and to taken actions and risk, significant rights. these support Operations identified as having having as identified Operations child of incidents for risk significant contribute to taken measures and labor, to the elimination of child labor. Operations identified as having having as identified Operations forced of incidents for risk significant to measures and labor, compulsory or forced of elimination the to contribute or compulsory labor. Percentage of security personnel personnel security of Percentage policies organization's the in trained or procedures concerning aspects to relevant are that rights human of operations. Indicator HR2 HR3 HR4 HR5 HR6 HR7 HR8

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 162 165 Netafim has not been the subject subject the been not has Netafim non-compliance for fines of Netafim's of use the to relating products. There were no complaints complaints no were There privacy customer regarding breaches. This This page This This page Fully Fully Monetary value of significant fines fines significant of value Monetary laws andfor non-compliance with provision the concerning regulations and services. and use of products Total number of substantiated substantiated of number Total of breaches regarding complaints of losses and privacy customer customer data. PR9 PR8 There were no incidents of of incidents no were There non-compliance of corruption and advertising regarding marketing communications. Netafim sells to businesses businesses to sells Netafim codes specific no are there and Netafim's of nature the covering business. There were no incidents of of incidents no were There non-compliance of corruption regarding product labeling.

There were no incidents of of incidents no were There with non-compliance of corruption codes regarding health and safety.

Comment This This page 104 This This page This This page - This This page - Page Fully Fully Fully Fully Not Not reported Fully Not Not reported Report Total number of incidents of non- Total and regulations with compliance marketing concerning codes voluntary advertising, including communications, of type by sponsorship and promotion, outcomes. Practices related to customer customer to related Practices of results including satisfaction, customer measuring surveys satisfaction. Programs for adherence to laws, laws, to adherence for Programs codes voluntary and standards, communications, marketing to related and promotion, advertising, including sponsorship. Total number of incidents of non- Total and regulations with compliance product concerning codes voluntary by labeling, and information service and outcomes. of type Type of product and service information information service and product of Type and procedures, by required and products significant of percentage information such to subject services requirements. Total number of incidents of non- number of incidents Total and regulations with compliance health concerning codes voluntary and products of impacts safety and type by cycle, life their during services outcomes. of Life cycle stages in which health health which in stages cycle Life products of impacts safety and for assessed are services and of percentage and improvement, services and products significant such procedures.categories subject to Indicator PR7 PR5 PR6 PR4 PR3 PR2 PR1

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 164 167 corporate social environmental responsibility corporate social environmental BeyondBusiness

Supporting the Sustainability Steering Team in developing the scope, Supporting the Sustainability Steering Team the around locations several in employees Netafim 40 over Interviewing internal against data of checking and processes collection data of Review Management approval. Preparing the report content for Executive While, as Netafim's Sustainability Consultants, it would not be ethical forWhile, as Netafim's Sustainability Consultants, a represented has Netafim from report first this company, private a As showing is Company the believe and Netafim with work to proud are We • • • • Beyond Business Ltd is a leading Corporate Responsibility Consulting Consulting Responsibility Corporate leading a is Ltd Business the Beyond in Netafim with worked have We firm. Reporting Sustainability and Report. Our work has included: preparation of this Sustainability • concept and content of the report. boundary, • and reporting mechanisms.world to review their approach to sustainability • reporting systems. • an for the content of this report,us to provide formal assurance or verification represents presented data the experience, our in that confirm, in can we performance sustainability Netafim's of view balanced and fair common accurate, a is sustainability that confirm also can We period. reporting the with more growing see who employees energizes which Netafim at theme less as a social mission and not just a business. of many people in the Company. significant investment in time and energy sustainable upheld always has which companies those of a one is into this Netafim formulating so practice, and culture core its of part as principles into the personal experience ofcoherent report has required digging deep making for Netafim commend We ways. new in data generating and people this effort to formalize sustainability processes and advance transparency, though we recognize that this is just another step on the journey and that more needs to be done. in leader global a as and company Israeli private as both leadership, important productivity. sustainable and irrigation drip Cohen Elaine Ltd Business Beyond www.b-yond.biz/en CONSULTANT'S CONSULTANT'S STATEMENT

GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 166 GROW MORE WITH LESS | NETAFIM SUSTAINABILITY REPORT 2011 168