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Environmental Report for the Years 2017 – 2018

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Environmental report for the years 2017 – 2018 1 Table of Contents Subject Page Introduction 3 IEC policy on environmental protection 4 Promoting environmental awareness among employees 6 Free access for the public to information on environmental issues 7 Emissions to the environment 8 Emission of major pollutants to the air 9 The air pollution control project at coal-fired generation units of 14 Orot Rabin and Rutenberg sites The IEC air monitoring system 15 Reduction of greenhouse gas emissions and climate change 19 mitigation Transportation and IEC vehicles use 22 Water use and conservation 23 Coal combustion by-products 31 Hazardous materials and hazardous waste 33 Green purchasing 34 Solid waste 35 Noise reduction 39 Environmental aspects of electric and magnetic fields 40 IEC's influence on biodiversity 42 Biodiversity – land aspects 42 Biodiversity – marine aspects 44 2 List of tables Subject Page Table 1: Distribution rate of generation (in percentage) by the types of fuels that 10 have been used in the generation of electricity in the years 2012– 2018 Table 2: Comparison of actual air emissions reduction rates with the targets for 11 2020 Table 3: Emissions to the air as a result of fuel combustion for electricity 12 generation by the IEC in the years 2010 - 2018 [gram / kWh produced] Table 4: Emissions of pollutants to the air as a result fuel combustion for 13 electricity generation by the IEC in the years 2010 - 2018 [metric ton / year] Table 5: List of IEC's meteorology and air quality monitoring stations (updated in 16 2018) Table 6: The distribution of direct greenhouse gas emissions (Scope 1) by 20 sources, in 2018 Table 7: IEC's greenhouse gases emissions reported in the framework of the 21 voluntary mechanism reporting project to the Ministry of Environmental Protection for the years 2010 – 2018 Table 8: Summary of Fresh water amounts consumed by the IEC in the years 25 2013 – 2018 Table 9: Summary of poor quality water use by the IEC in the years 2013 – 2018 26 Table 10: Summary of the use of water from all sources by the IEC in the years 26 2013 – 2018 Table 11: Poor quality water use as percentage of total water consumption by 27 the IEC for the years 2013 – 2018 Table 12: Summary of seawater use for main cooling of IEC costal power stations 27 for the years 2013 – 2018 Table 13: Summary of treated industrial waste water effluents discharges to the 28 sea from IEC sites, according to Authorities' permits, for the years 2013 – 2018 Table 14: Summary of the amount of effluents used or discharged to the 29 environment during the period 2013-2018: Part A – Effluents of sanitary waste water treatment [m3] Table 15: Summary of the amount of effluents used or discharged to the 30 environment during the period 2013-2018: Part B - Treated industrial waste water effluents, boron-enriched water and concentrate water from demineralization production facilities [m3] Table 16: Total hazardous and non-hazardous waste transfers from the IEC 36 power station sites during 2018 [kg] Table 17: Total hazardous and non-hazardous waste transfers from the IEC 37 power station sites during 2017 [kg] Table 18: Total hazardous and non-hazardous waste transfers from the IEC 38 power station sites during 2016 [kg] Table 19: Sediment dwelling organisms' distribution into main groups as affected 49 by coal content in the sediment of the area of Orot Rabin coal pier, summer 2018 (average of 3 replicates) 3 Introduction The IEC operates as an integrated and coordinated system that deals with all stages of the electricity chain, from the generation of electricity, through its transmission and transformation, to its sale and distribution to the customers. In addition, the company is involved in establishing the necessary infrastructure for these activities and serves as the power system manager through the system management unit. As a result, the electricity company considers itself committed to providing available and high-quality electricity from a variety of electricity sources available to the national electricity sector, both through the electricity company's production system and through the production structure of private electricity producers operating under the electricity law that came into effect in 1996. The company has 3 main areas of activity along the electricity chain, which are divided into the following segments: A. The generation segment - power generation system on the coast that includes steam power station sites, combined cycle and jet gas turbines [in Haifa, Hadera (Orot Rabin), Tel Aviv (Redding), Ashdod (Eshkol) and Ashkelon (Rutenberg)], as well as a national domestic generation system using combined cycle, industrial gas turbines and jet gas turbines (in Alon Tavor, Hagit, Gezer, Tzafit, Ramat Hovav, Atarot, Eilat, Kinnerot, Caesarea, Raanana, Hartuv & Eitan). B. Transmission and Transformation segment - power transmission system from the generation sites through transmission lines at ultra and ultra-high voltages to the switching stations and substation and from there to the transformation stations (distribution / transformation transformers). In the switching stations, substations and transformers, the transformation operation changes the voltage levels from ultra-high to ultra-voltage, and from ultra to high voltage so that it can be safely supplied in the distribution segment (end- consumers). C. The distribution segment - the power supply system for the customers from the substations using high voltage and low voltage lines. This structure also includes the stage of selling electricity to customers. We are honored to present you the Annual Environmental Report for the years 2017 - 2018. This report has been voluntarily published since the year 2000. The IEC's Sustainability Report is also published since 2013. The Environmental Report is a report that complements the main environmental aspects related to the IEC's activities and presents additional data. 4 IEC policy on environmental protection The IEC operates in accordance with environmental protection policy principles that were first approved in 1997 and are updated from time to time. The principles include: A. Incorporating environmental considerations into all areas of activity, including decision- making processes. B. Designing and operating the facilities while ensuring continuous mitigation of the environmental impacts, taking into account existing development principles while adopting the best proven and economical technologies. C. Adopting proven advanced environmental conduct rules. D. Intelligent use of natural resources and raw materials: land, air, water and fuels. E. Reduction and recycling of waste and by-products. F. Incorporating scenic, regional and environmental considerations into the design of new facilities and maintenance of existing facilities. G. Open and transparent dialogue with the public, with regard to plans that have environmental implications. H. Reducing greenhouse gas emissions in the spirit of international treaties, which the State of Israel partners in, by increasing the efficiency of power stations, expanding the use of environmentally friendly fuels and energy sources, and encouraging electricity savings. I. Joint activity with environmental, state, public and international entities, including participation in environmental research, and development of advanced technologies. J. Implementing environmental values in the organizational culture, raising awareness and environmental commitment of company employees and integrating environmental issues into its activities in the local community. In this context, the IEC carries out various operations, including: Implementing the policy as part of the company's organizational culture. Installing facilities to prevent and reduce environmental impacts. Use of natural gas which is characterized by relatively low emissions, as the main fuel in existing power stations. Operation of production facilities using combined cycle technology that optimally utilizes the steam generated in the production process to produce additional energy. Promote reuse of treated water and effluents at company sites. Adopt the principle of "prudent avoidance" to reduce electric and magnetic fields in the electricity grid. Fostering the awareness and commitment of company employees to environmental issues in the company's operations. Allocating research and development budgets for environmental issues. Monitoring and implementing new technologies. Collaboration with research and academic institutions. Integrating environmental parameters into work processes and key projects. Expanding the use of environmentally friendly materials. 5 Continuous monitoring and control operations of environmental impacts in land, air, water and sea. Transfer real-time monitoring data and information transparency. Implementing ISO 14000 quality standards and environmental management & control system. Monitoring local and international legislation and regulations and examining future trends. Reduce waste generation, recycling and disposal of waste properly. Promoting the use of by-products: gypsum & coal ash. Constant work to improve and nurture the appearance of existing facilities. Ensure transparency of public information regarding activities with environmental implications. Publication of a corporate sustainability report and periodic environmental accountability. The environmental issue is now an integral part of the operation, maintenance, planning and development of IEC's facilities. The company's
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