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ICL Corporate Responsibility Report 2012

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ICL Corporate Responsibility Report 2012 Corporate Responsibility Report 2012 Israel Chemicals Ltd. Agriculture Food Energy Materials Page 2 | ICL CSR Report 2012 Foreword Agriculture Food Energy Materials We are honored to present ICL’s Corporate Responsibility Report the importance of ensuring adequate supplies of energy while for 2012. The tradition of ICL reporting, which we began in 2006, providing safe products for a better life. ICL is concentrating its continues to develop and improve each year, demonstrating business activities on these four core areas and strives to harness the overall operational strategy for sustainability and corporate them to improve peoples’ lives around the world. You can read responsibility that we are implementing at ICL. This report is the about ICL’s solutions aimed at addressing each of these needs third one written and published according to the international throughout this report. guidelines of the Global Reporting Initiative (GRI), and it covers The many challenges faced by humanity obligate ICL, as a our efforts and progress during 2012. ICL intends to continue responsible company, to continually improve its environmental reporting, and even to expand, this format in the future, as performance. It is our hope that this report describes our efforts part of ICL’s enhanced strategic thinking and expanded social and initiatives in a clear manner, in compliance with and beyond and environmental activities as they relate to all aspects of our the letter of the law, in all matters related to the environment and business. society. For more than a decade, ICL’s environmental-social strategy We hope that this report will satisfy the wishes of all of our has been interwoven throughout the fabric of our business stakeholders for on-going, reliable and comprehensive reporting and finds expression in all of our activities around the world. about our activities. This long-standing tradition facilitates significant improvements in the process for gathering and upgrading data so that ICL’s Pleasant reading! stakeholders benefit from reliable, accurate reporting. The information presented below about ICL’s environmental activity represents about 95% of our global activity, as measured by revenue. ICL, as an international company, is continuously engaged in meeting the ever-growing needs created by the world’s rapidly increasing population. The burning issues on the world agenda include the critical need to produce increasing quantities of food without the availability of a corresponding increase in the amount of land allocated for agriculture; an effort to protect open spaces; the need to guarantee the availability of high-quality food; and ICL CSR Report 2012 | Page 3 Table of Contents Page Foreward 3 Letter from the Chairman and CEO 6-7 Chapter 1 Sustainability objectives and achievements 8 Promoting initiatives for sustainability 10 8 Environmental responsibility and performance 11 Social responsibility and transparency 13 Chapter 2 ICL’s contribution to humanity Page Agriculture 16 Food 18 Energy and water 20 Materials 22 14 Chapter 3 Page Organizational profile The Corporation 28 Global operations 36 Company structure and ownership 38 Corporate governance 42 Organizational and business culture 50 24 Financial information 53 • Corporate responsibility policy: guidelines 57 • Transparency and dialogue with stakeholders 58 Chapter 4 Sustainability in core businesses Opportunities and challenges 65 Long-term planning and precautionary measures 68 Page Responsible Care program 69 Implementing environmental and health criteria in product development 72 Responsibility in the value chain – VECAP 76 Integrated industry 78 62 Regulations regarding the safe use of chemicals – REACH 80 Page 4 | ICL CSR Report 2012 Page Chapter 5 Environmental aspects Use of raw materials and sustainable 86 management of natural resources 84 Key environmental issues relating to ICL operations 90 Preservation of biodiversity 97 Energy consumption 102 Reduction of greenhouse gases and 106 addressing climate change 109 Water consumption 113 Treatment of wastewater 114 Air quality 117 Treatment of waste 118 Environmental management 119 Page Environmental safety 120 Chapter 6 Social aspects Work environment 124 122 Fair employment 126 Safety and health 130 Contribution to the community 134 Impact on the Israeli economy 142 About the report Summary of performance GRI INDEX Page 14 4 ICL CSR Report 2012 | Page 5 Letter from the Chairman and CEO Against this backdrop, we are pleased to present you, ICL’s stakeholders, with our Corporate Responsibility Report for 2012, a document which provides examples of ICL’s extensive activities and the initiatives that we plan to bring to fruition. Today, we are leading ICL from an understanding that we have an immense opportunity to develop clear business and environmental advantages in our principal areas of activity. We have identified potential in a number of new markets whose range of activities are growing today, and that are expected to continue growing in the future, thanks to advanced technological improvements and relatively low production costs. The transition of global economic power from mature markets to emerging Mr. Nir Gilad Mr. Stefan Borgas growth economies, especially in Brazil, India and China, provides Chairman of the Board President & CEO us with many opportunities, and we are investing our best efforts to bring ICL’s relative advantages to expression in these and additional potential markets. Moreover, ICL strives to adapt its activities to the existing and changing needs of the world’s population. The human race is becoming increasingly aware of the earth’s limited resources, and is searching for sophisticated A growing number of global challenges are solutions for a range of needs, including food, clean water, cleaner air and more advanced products that support the creation of an knocking on the doors of decision-makers environment that is friendlier to the planet and its inhabitants. ICL around the world. These challenges require the pursues the creation of business partnerships that will enable it to identify needs and desires, and to address them with solutions. development of complex, creative solutions to We currently employ 475 people in our R&D Department, and they work to create advanced technological solutions for those ensure that the world’s population, which is needs. During 2012, we invested more than USD 77 million in research and development worldwide. In the report before you, growing at a rapid pace, can continue to exist on we present a survey of the Company’s products in the areas of this planet, both in the near-term and for years to energy, next-generation flame retardants, specialty fertilizers and more. We hope this will serve as convincing proof of just how come. ICL is motivated by the need to address the intertwined ICL’s products are in each of our lives on a day-to- day basis. changes in overall world trends, and is working ICL’s activities are based on an established strategy that towards the development of solutions that match includes standards regarding environmental protection and ecology. We aim to act according to the highest standards in the changing circumstances and that can answer our activities throughout the world, and this goal translates humanity’s core needs in the areas of agriculture, into a variety of projects that we have detailed throughout this report. Among others: we have become world leaders in the food, and engineered materials. measurement of the carbon footprint of our products, and to date Page 6 | ICL CSR Report 2012 In 2012, ICL spent approximately USD 137 million on issues related to the environment and $137M environmental protection. have calculated the footprint of more than 55 of our products. We understand that the future holds significant challenges Further, during the past few years, we have created a plan that for ICL. We do everything in our power to adapt ourselves takes an uncompromising approach to activities designed to to change and to identify potential challenges before they protect biological diversity throughout our operations. In addition, actualize, in order that we can develop effective, advanced we are investing significant resources in the development of solutions on a proactive basis. We will continue to work towards new, more environmentally-friendly products. In this report, you this end while determinedly maintaining uncompromising can read about these initiatives and many more. As such, our environmental and efficiency standards. We would be happy activities flow from the knowledge that existing natural resources to hear from you and to learn from you about how we can available to humanity are limited, and that we as a business must provide this information in a manner that is helpful, to the point, do everything we can to respect these limits. and suited to your needs. We at ICL invest significant resources according to the goal of operating “Beyond Compliance” in most of the fields in which we are active. To this end, we invest vast financial resources in various aspects of environmental protection, and expect to expand this investment even further in the future. In 2012, Mr. Nir Gilad Mr. Stefan Borgas ICL spent approximately USD 137 million on issues related Chairman of the Board President & CEO to the environment and environmental protection, including approximately USD 58 million in acquiring fixed assets aimed at preventing environmental hazards and approximately USD 79 million in related ongoing expenses. This
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