Israel Chemicals Ltd. Corporate Responsibility Report 2013 Foreword Foreword We are honored to present the Corporate Responsibility Report increasing population. The task of solving them are among the of Israel Chemicals (ICL) for 2013. ICL’s tradition of reporting, issues that can be read in detail in this report, including the which began in 2006, continues to develop and improve critical need to produce increasing quantities of food without every year, demonstrating the comprehensive operational the availability of a corresponding increase in the amount of strategy for sustainability and corporate responsibility that we land allocated for agriculture; an effort to protect open spaces; are implementing at ICL. This report is the fourth written and guarantee quality food for the world’s population; and ensure published according to the international guidelines of the Global a supply of engineered materials required to meet humanity’s Reporting Initiative (GRI). It covers our work and progress during most basic needs. ICL’s extensive activities cover the entire 2013. We intend to continue reporting, and even to expand, this life cycle of the products and materials that we manufacture, format in the future as part of our Company’s enhanced strategic from raw materials and manufacturing through end sales. This thinking and activity on social and environmental issues in all breadth of activity allows ICL to offer appropriate solutions aspects of our activities. for the varying needs of humanity, through three critical end markets: agriculture, foods and engineered materials. For more than a decade, the environmental-social strategy of ICL has been woven throughout the fabric of our business and is The many challenges faced by human society obligate ICL, implemented in all of ICL’s business activities around the world. as a responsible company, to steadily improve its corporate The tradition of annual reporting makes it possible for us to environmental-social performance. It is our hope that the report make significant improvements in the process of gathering and before you describes our efforts and initiatives in a clear manner, upgrading data so that it may be presented to ICL’s stakeholders in compliance and beyond compliance, in all matters related to the environment and society. in a reliable, accurate manner. The information presented below about ICL’s environmental activities represents more than 95% We hope that this report will satisfy the desire of all stakeholders of our global activity, as measured by our revenues. for on-going, reliable and comprehensive reporting about our activities. As an international company, ICL is continuously engaged in meeting the ever-growing needs created by the world’s rapidly Pleasant reading. Where needs take us 2 3 ICL CSR Report 2013 ICL CSR Report 2013 Contents Contents Foreword 3 Environmental Issues and Ways to Solve Them 90 Letter from the Chairman and CEO 6 Decline of the Level of the Dead Sea 90 Sea-to-Sea Canal 91 Chapter 1 Rise in the Water Level in Pond 5 and the About ICL – Organizational Permanent Solution – Salt Recovery Project 92 Profile and Principal Activities 8 Sinkholes 94 Organizational Profile 18 Barir Field 94 The Corporation 24 Preservation of Biodiversity 96 Global Operations 32 Preservation of Biodiversity and Restoration of Mining Sites 98 Company Structure and Ownership 34 Biodiversity Conservation in the Product Use Stage 104 ICL’s Corporate Responsibility Policy: Guiding Principles 40 Energy Consumption 106 Corporate Governance 42 Reduction of Greenhouse Gases and Organizational and Business Culture 49 Addressing Climate Change 110 Financial Information 52 Water Consumption 113 ICL’s Investments and Expenses Related Treatment of Wastewater 117 to Environmental Protection 55 Air Quality 119 Transparency and Dialogue with Stakeholders 56 Transportation and Logistics 122 The Influence of ICL’s Plants on the Israeli Economy 62 Treatment of Waste and Byproducts 129 Chapter 2 Environmental Management 132 Environmental Responsibility 66 Targets and Goals for Sustainability 68 Chapter 3 Work Environment 136 Opportunities and Challenges 72 ICL Employees 138 Means of Sustainable Development 73 Fair Employment 140 Environmental Risk Management and the Precautionary Principle 73 Employee Empowerment 143 Responsibility in the Value Chain 74 Safety and Health 144 Regulations regarding the Safe Use of Chemicals – REACH 86 Integrated Industry 86 Chapter 4 Use of Raw Materials and Sustainable Social Responsibility 150 Management of Natural Resources 88 Sustainable Management of Phosphate About the Report 162 Deposits in the Negev 88 GRI Index 164 Water from the Dead Sea 89 Performance Summary 171 Potash Mines in Spain and England 89 4 5 ICL CSR Report 2013 ICL CSR Report 2013 Letter from the Chairman and CEO Letter from the Chairman and CEO ICL is a global manufacturer of products based on potash, We aim to continue to fulfill the essential needs of mankind in phosphates, bromine, magnesium and sulfur which we mine the future, and therefore strive to lead in the markets in which and, using sophisticated processes based on a wealth of we operate by developing new products that continuously research and knowledge, manufacture into products that improve the balance between consumer needs, the environment provide the essential needs of mankind, particularly in the areas and the demands of regulators. of food, agriculture, and engineered materials. ICL’s identity is Our key to success is our understanding that humanity’s needs Mr. Nir Gilad Mr. Stefan Borgas also its social mission. change continuously and, therefore, ICL must change, evolve Chairman of the Board President & CEO The potash and phosphates that we mine and the value-added and adapt to humanity’s evolving needs. downstream products that we manufacture from them are used While it is true that adopting a strategy of sustainability initially in the agriculture sector for fertilizers, thereby helping to feed leads to increased costs and requires investment in advanced the world’s growing population. Our technologies aim to reduce technology, ICL’s continuous reduction in its environmental We live in an age of a fascinating and significant global We live in a dynamic and exciting world marked by technological waste and over fertilization while simultaneously improving footprint and the improved sustainability of our products will transformation. Many countries are rapidly developing in development and the expansion and dissemination of farmers output. These minerals are also essential ingredients eventually improve the Company’s overall business value. For an effort to provide their citizens and the others throughout knowledge among more people than ever before. We at ICL used by the food industry. The food additives that we produce example, ICL’s new generation of flame retardants integrate the world with their basic needs. China, Ethiopia and other are committed and determined to meet the challenges and improve the shelf life, quality and taste of processed and better with the polymer matrix in which they are used, and, African countries, as well as Brazil and other South American demands that face us, and we are willing and prepared to take convenient foods. Our water treatment products provide clean therefore, they are not only more environmentally friendly and countries represent an important opportunity for ICL to assist advantage of the opportunities for growth and prosperity that water to millions of people and to industries across the world, safer to use, but they also perform better. That is why ICL has them by offering them our advanced knowledge and our range the fundamental processes occurring in the world offer to us. and our products based on bromine and phosphates help begun to significantly increase its research and development of capabilities in the three markets in which we operate - The world’s needs continue to evolve and so does ICL. to create more efficient andenvironmentally-friendly energy, budget to develop its next generation of products. agriculture, food and engineered materials. prevent the spread of forest fires and enable the wide and safe ICL understands that a part of its success also includes giving Sincerely, use of a broad variety of products and materials. In particular, ICL has begun to focus its increased R&D spending in the following areas: broad bromine applications for polymers, back to the communities in which we operate and support them environmental applications, energy storage and agricultural through various means: cooperation and contributions that usage; improved technologies for balanced fertilization; new promote education, scientific research, environmental studies and healthy food ingredients to improve the texture and stability and excellence among children, youth and students; supporting of processed foods; and process technologies to reduce the challenged populations, especially children, women and Mr. Nir Gilad Mr. Stefan Borgas environmental footprint of large scale mining operations. Among minorities, as well as health services, culture and sports. Chairman of the Board President & CEO We aim to continue to fulfill the essential recent applications that improve ICL’s ecological footprint are a In addition, we maintain as open a dialogue as possible with needs of mankind in the future, and therefore unique bromine compound that almost completely reduces toxic the communities in which we operate and make available to the strive to lead in the markets in which