Israel Chemicals Ltd. Corporate Responsibility Report 2014 Back to Content Back to Content

Broadening the information presented about our corporate responsibility-related activities

With the objective of broadening the Where needs information presented about our corporate responsibility-related activities, this year have integrated videos and stakeholders take us Q&As from our website. We invite you to download a free QR code reader from your favorite app store and then scan the QR codes throughout this report. If you are reading the online version of this report, please press the QR code.

People Agriculture

For ICL’s website where you can Food find a wealth of information about the company, including corporate responsibility reports Engineered from previous years, scan the Materials QR code or press the QR code.

Cities

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Somekh Chaikin, an Israeli partnership and a member firm Somekh Chaikin, an Israeli partnership and a member firm of KPMG network of independent member firms affiliated of KPMG network of independent member firms affiliated with International Cooperative (“KPMG International”), a with International Cooperative (“KPMG International”), a Swiss entity. Swiss entity.

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Contents

Letter from the Foreword 7 8 Chairman and CEO

Chapter Chapter Chapter Chapter Chapter One Two Three Four Five

10 40 66 140 18 2 About ICL – Organizational Corporate Governance & Environmental Social About the Profile & Corporate Economic Responsibility Responsibility Responsibility Report Responsibility Overview

ICL at a Glance 13 Corporate Governance 42 Environmental Policy 68 Employment Responsibility 142 ICL’s Story: “Needs Evolve, So Do We” 18 Corporate Structure 42 Sustainability for Product Lifecycle 71 Fair Employment 148 “Continuously More Global” 20 Board of Directors 44 Product Stewardship on the Ground 74 Employee Empowerment 150 ICL’s Leading Position 22 Executive Compensation 46 Stage 1: Materials Extraction 74 Organizational Changes 152 18 4 Focusing on Core Activities: Procedure for Transactions with Stage 2: Product Development 91 Occupation Health & Safety 154 GRI G4 Content Material M&A and Divestitures 23 Interested Parties 47 Stage 3: Production & Operation 100 Socially Responsible Actions towards Index Communities and Society in General 162 Financial Performance 24 Feedback and Control Mechanisms 47 Stage 4: Logistic & Distribution 107 Vision and Strategy for ICL Corporate Responsibility Compliance with Laws and Regulations 48 Stage 5: Product Use Stage 112 Policy & Guiding Principles 27 Community Engagement 162 Voluntary External Standards of Quality 49 Stage 6: End of product life 116 Material Issues 30 Social Involvement in 164 Organizational and Business Culture 50 Environmental Performances Transparency and Dialogue with Stakeholders 33 Social Involvement in Europe 175 Code of Ethics 52 & Measures for Improvement 118 Social Involvement in Americas 178 Protection of Human Rights 52 Energy Consumption 118 Business Conduct 52 Greenhouse Gas Emissions & Climate Change 124 ICL’s Impact on State Economies: Two Case Studies - Israel and Spain 54 Air Quality 126 Water Consumption 131 Solid and Liquid Waste and by products 134 4 ICL Corporate Review 2014 ICL Corporate Review 2014 5 Back to Content Back to Content

Foreword Sustainability: “Greening” Foreword We are honored to present the Corporate Responsibility The tradition of annual reporting makes it possible for ICL to Report of Israel Chemicals (ICL) for 2014. make significant improvements in the process of gathering and upgrading data so that it may be presented to its Resulting from the consolidation of the corporate stakeholders in the most reliable, accurate manner. Our Activities management, this report aims to provide accountability to ICL’s internal and external stakeholders, by conveying a true, This report is written in accordance with international balanced picture of the Company’s policies, activities and guidelines of the Global Reporting Initiative (GRI), pursuant results in social and environmental topics associated with its to GRI G4 Guidelines. The selection of topics reflects business. material issues concerning ICL’s activities. The report complements ICL’s 2014 financial report and information Sustainable development is a key factor in the Company’s included on the Company’s website. strategy, which is oriented to long-term economic success. Consequently, proactive thinking and responsible action On the following pages, you will find information relating to have top priority. The information presented in this report ICL’s operations throughout the life cycle of the products results from the collaborative work of numerous people and materials that it manufactures, including policies, and reflects a process of continuous improvement and practices and stakeholder relationships, as well as data strengthening sustainability practices. pertaining to ICL’s economic, social and environmental performance. In its ongoing commitment to Corporate Responsibility, ICL publishes a Sustainability Report each year, and it intends We invite you to use your smart phone to download a free to continue reporting, and even to expand this format in QR reader in order to scan QR codes placed throughout the future, as part of the Company’s enhanced strategic this publication for additional content. thinking and activity on social and environmental issues, in This report demonstrates ICL’s genuine commitment to all aspects of its business. transparency and hope that you will also find it informative As a global company with operations worldwide, the report and interesting. preparation process demonstrates the challenge that lies in integrating and managing businesses that are located in various geographic locations, while preserving their best practices to benefit the Company, its stakeholders and society in general.

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Letter from the Chairman and CEO

Mr. Nir Gilad Mr. Stefan Borgas Chairman of the Board President & CEO

We are pleased to present Much of our “Next Step in energy storage, balanced increasingly uncertain stronger, more focused ICL’s 2014 Corporate Forward” strategy to evolve fertilization, food additives and unfavorable business and more global company, Responsibility Report as ICL into a company that and environmentally friendly climate. These challenges better positioned to the company continues fulfills essential needs based flame retardants. Some of have highlighted the critical take advantage of global its transformation from on integrated mineral value these projects have been importance of our social opportunities and to create a group of successful chains, pertains to issues completed while others will and environmental policies long-term and sustainable businesses into one, truly reflected in this report: we continue through 2015 and and our focus on excellence value. unified, global company. are implementing multiple beyond. In this report, we and innovation in the Our commitment We are accomplishing this initiatives to improve our present a snapshot of the sustainability arena in all of to manage ICL Pleasant reading! by creating a collaborative, financial and ecological progress we have achieved the countries in which we responsibly is clearer efficient and innovative efficiency and to build to date and lay out our operate. With thousands of than ever and serves environment for our 12,000 sustainable platforms that roadmap for the future. This customers, employees and as a beacon for Mr. Nir Gilad Mr. Stefan Borgas valued employees that will will enable us to become year, we have also included stakeholders throughout the Chairman of the Board President & CEO decision making enable them to address more flexible, resilient and for the first time an analysis world depending upon us, within the company. evolving needs in our core productive in the face of of material issues that are our commitment to manage markets: agriculture, food growing global challenges. of concern to our various ICL responsibly is clearer and engineered materials. We are also continuing to stakeholders as well as the than ever and serves as a The integrated social, reduce our environmental focus of our activities. beacon for decision making environmental and financial footprint, enhance product We are proud of our within the company. aspects of sustainability sustainability throughout progress in light of the With our Next Step Forward are key components of this the value chain, and develop various challenges we face strategy well underway, transformation. next generation products in our markets and Israel’s we are building ICL into a

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About ICL - Organizational Profile & Corporate Responsibility Overview

Chapter One

w Materia Ra ls ICL’s Activity tation & L or og p is s t n ic Throughout a s r T ark the Lifecycle: d M ets En & ture Pro c du fa c u t n io a n

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ICL at a Glance One ICL One Purpose Company’s Raison D’être: One Mission Fulfilling Humanity’s Essential Needs

ICL, Israel Chemicals Ltd. , and its subsidiaries, associated companies and joint ventures (hereinafter – “the Company”) is a leading specialty minerals company that operates a unique, integrated business model, through which it utilizes sophisticated processing expertise, Nature of ownership and legal form: Limited liability company proprietary technologies and operating under the laws of Israel innovation capabilities to extract Public company: ICL shares are traded on the New York Stock specialty minerals and develop and Exchange (“NYSE”) (since September 2014), as well as on the Tel manufacture products that fulfill Aviv Stock Exchange (“TASE”) humanity’s essential needs, primarily in three markets: agriculture, food Number of Employees: 12,457 and engineered materials. ICL’s Registered office and principal place of business:Millennium activities are mainly in the areas of Tower, 23 Aranha Street, P.O. Box 20245, Tel Aviv 61202, Israel fertilizers and specialty chemicals Website address: www.icl-group.com and its operations are organized into three segments: Fertilizers, Industrial Products and Performance Products.

“Where Needs Take Us“

Scan QR code or press the QR code to watch ICL’s President & CEO, Mr. Stefan Borgas, present the Company’s unique business model, its “Next Step Forward” strategy and its goals.

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Chapter 1: About ICL

Fully Integrated Fully Integrated Leading Positions in Unique Portfolio of & Diversified & Diversified Concentrated Global Markets Mineral Assets Value Chain Value Chain with Strong Fundamentals Lines of Business

Resources Specialty Minerals Expertise Segments End Markets - Constitute over 90% of ICL revenue

Dead Potash Sea Potash Agriculture Phosphates & Bromine Mining Compound Fertilizers Magnesium Operation Fertilizers Specialty Fertilizers UK/ Spain Flame Retardants Potash Mines Industrial bromine- & phosphorus- Polysulphate Effective Engineered Materials Products based Chemistry Industrial Solutions Desert Phosphate bromine & phosphorus- Performance based Innovative Products Formulations Advanced Additives Global Potash Food phosphates & phosphorus- opportu- Phosphate based nities Food Specialties phosphates-based

Strengths Food A global entity with Agriculture a broad presence across five continents Unique portfolio of mineral assets Potash Phosphate Bromine Magnesium Growth opportunities Potash (potassium chloride) Derived from phosphate Bromine is a member of Magnesium is the across a fully is one of the three major rock, phosphate is one of the halogen family and is eighth most abundant integrated and nutrients required for plant the three major nutrients known for its diverse uses element in the earth’s diversified value chain Engineered Materials growth. Not only is it vital for required for plant growth. in many industries. Bromine crust and plays an the physiological processes Phosphorus directly is rarer than about three- important role in plant Leading position in of the plant, Potash improves contributes to a wide range quarters of elements in the and animal life. concentrated global the durability of the produce of physiological processes in Earth’s crust and is found in markets with strong it fertilizes, helping the a plant and accelerates the seawater and underground fundamentals product survive storage and growth rate of crops. There brine deposits. Due to its Strong cash flow transportation and prolong its are currently no artificial high concentration of salt, generation and shelf life. There are currently substitutes for Phosphorus. the is a major return of capital to no artificial substitutes for source of the world’s shareholders potassium. Bromine.

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Chapter 1: About ICL

Segments End Markets

67%Fertilizers* Industrial15% Products* 52%Agriculture* ICL Fertilizers (ICL-Fertilizers) extracts potash from the ICL Industrial Products (ICL-IP) produces bromine The demand for fertilizers is driven and influenced by Dead Sea and mines and produces potash and salt from from a solution created as a by-product of the potash the growth of the world’s population, the increase in the subterranean mines in Spain and the UK. ICL Fertilizers production process in Sodom, Israel, as well as bromine- standard of living and a shortage of arable land, which are processes the potash into several types of fertilizers and based compounds. ICL Industrial Products uses most of creating an increasing demand for food. The agricultural markets them throughout the world. This segment also uses the bromine it produces for self-production of bromine products that ICL produces help to feed the world’s a portion of the potash to produce compound fertilizers. compounds at production sites in Israel, the Netherlands growing population by providing essential nutrients that ICL Fertilizers provides end-users and manufacturers on five and China. This segment also extracts salt, magnesia and help farmers increase the quantity and quality of their continents with a wide range of high-performance solutions chlorine from Dead Sea brine, and produces chlorine-based crops. ICL is also an expert in the area of specialty fertilizers from potash. products in Israel and the United States. meeting the needs of specific crops and climates in order to maximize their productivity and quality. In addition, ICL Fertilizers mines and processes phosphate In addition, ICL Industrial Products engages in the rock in open mines in the south of Israel, and produces production and marketing of flame retardants and *Based on full year 2014 external sales 31% sulfuric acid in Israel, agricultural phosphoric acid, additional phosphorus based products. Engineered Materials* phosphate fertilizers, compound fertilizers, based mainly ICL is a global leader in industrial additives and materials, *Based on full year 2014 EBITDA on potash and phosphate, liquid fertilizers and soluble including a broad range of flame retardants, phosphate fertilizers. ICL Fertilizers also manufactures compound salts and specialty phosphate blends, purified phosphoric fertilizers in the Netherlands, Germany and Belgium, acid and electronic-grade specialty phosphoric acids. The liquid fertilizers and soluble fertilizers in Spain, slow Company is also a leading provider of magnesium alloys for release fertilizers and controlled release fertilizers in the the automobile industry. ICL’s strong technical support team Netherlands and in the United States, and phosphate based works closely with customers across the globe to provide food additives for livestock, in Turkey and in Israel. customized high-performance applications. These materials help to create more efficient and environmentally friendly ICL Fertilizers markets its products worldwide, mainly in energy, prevent the spread of forest fires, and allow the safe Europe, Brazil, India, China and Israel. The activities of ICL and broad use of hundreds of products and materials. Fertilizers also include the activities of Mifalei Tovala Ltd., which is engaged in the transportation of cargo, mainly of 18% 8% *Based on full year 2014 external sales Performance Products* Food* ICL companies in Israel, since a large part of the Company’s activities consists of bulk transport of cargo of the ICL ICL Performance Products (ICL-PP) purifies some of the ICL is a leader in supplying effective and innovative Fertilizers segment. agricultural phosphoric acid manufactured by ICL Fertilizers, products to the food and beverage industries. The purchases purified phosphoric acid from other sources Company’s portfolio and expertise allow it to provide *Based on full year 2014 EBITDA (Adjusted) and also manufactures thermal phosphoric acid. The customers with products specifically tailored to the needs purified phosphoric acid and the thermal phosphoric acid of their industry. are used to manufacture downstream products with high *Based on full year 2014 external sales added value, phosphate salts, which are also used as a raw material for manufacturing, food additives, hygiene products Fertilizers Worldwide Stakeholder Q&A and flame retardants and fire extinguishing products. ICL Scan QR code or press Performance Products also manufactures phosphorous Scan QR code or press the QR code to watch derivatives based on phosphorous acquired from outside the QR code to read Q&A sources as well as specialty products based on aluminum the video. concerning ICL’s essential acids and other raw materials. The manufacturing of ICL’s performance products is conducted primarily at production products (currently sites in Europe, (particularly in Germany), the United States, available in Hebrew). Brazil, Israel, China, Mexico and other countries.

*Based on full year 2014 EBITDA

**In addition to the segments described above, ICL has other operations, including production and marketing of pure magnesium as well as magnesium alloys.

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Chapter 1: About ICL

ICL’s Story: ICL’s Fertilizers and Speciality Needs Evolve, So Do We” Fertilizers Help״ Efficiently Feed a Growing Global Population Based on its commitment to provide essential needs to humanity, ICL monitors the needs of its customers, ICL’s Advanced the communities in which it operates Business Changes ICL’s Special Fire Polymeric Flame and its other stakeholders. The Retardants Retardants Company keeps its finger on the Help Contain Forrest Help Meet the pulse of changes and developments Fires Caused by Forever Growing Demand in the future, not only to maintain its Changing Climate for Environmentally operations, but to ensure that it leads Environmental Regulatory Conditions Friendly Fire Safety the market in providing effective, Products helpful and the most advanced Changes Changes Examples solutions to meet these needs.

Business changes that require creative solutions: electronic products that require advanced flame retardants that are environmentally ICL’s Food ICL’s friendly; growing populations and Specialities Merquel Product rising standards of living that require Provide Solutions to Help Produce Energy more fertilizers; new diets that require Social Technological the Growing Middle in an Environmentally fertilizers and advanced supplements. Changes Changes Class’s Need for Friendler and Healthier improved Texture, Manner, Reducing Environmental and regulatory Mercury Emissions in Taste and Stability in changes rise in the importance of Coal Power Stations the Food Industry and Deep Sea Oil environmental issues which require Production strict adherence to the principles of sustainability throughout the production chain and product life.

Social and technological changes are a platform for social “If in the past, minerals and the products engagement and for growing social we produce from them were our focus, and environmental regulation, and ICL – Fulfilling humanity’s accordingly, ICL must accelerate today we are focusing on what is essential needs in the Company’s adoption of greater indispensable, the essential things that agriculture, food and “ICL is committed to transparency and become more open people need in order to survive. Today, engineered materials constantly listen for any new to the social environment in which it operates through dialogue with humanity is our client.” Scan QR code or press the development in humanity’s QR code to watch the video. communities in which it works, as Stefan Borgas, President & CEO essential needs, creating well as with its customers and other solutions that lead change, stakeholders. not just respond to it.”

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Chapter 1: About ICL

Continuously More Global

The following diagram shows the geographic distribution of ICL sales in 2014 and the locations of the Company’s main sites: Thermphos (Germany) ICL Iberia (Spain) FR122P (Netherlands & Israel) Hagesud (Germany) Auxquimia (Spain) Prolactal (Austria) AkzoNobel (Spain) Polysulphate Expansion (UK) North America Europe 23% Amsterdam 39% Asia St. Louis 21% Yunnan Yuntianhua Group (China) Other countries Israel 3% 5%

Israel Advocacy & Efficiency Mexico

Sales in 2014 South America Potash for Life (India) Manufacturing plant 9% Distribution center Fosbrasil (Brazil) Sales office Allana (Ethiopia) Global HQ Regional HQ Potash for Growth (Ethiopia)

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Chapter 1: About ICL

Icl Holds A Leading Position in Most of The Markets in which it Operates Focusing on Core Activities:

End-Markets Material M&A and Divestitures

As part of ICL’s growth strategy, the In December 2014, ICL acquired Divestiture of non-core businesses: in Company seeks out opportunities Fosbrasil (increasing its holdings the fourth quarter of 2014, ICL signed Engineered to expand its activities in its core from 44.25% to 100%), the agreements to sell its APW (Alumina, Agriculture Food Materials businesses, both organically and leading manufacturer in Latin Paper, Water) businesses, Rhenoflex, through acquisitions1. America of purified phosphoric which produces components to acid for the food market and reinforce shoes, its Anti-Germ Significant M&A in 2014: a manufacturer of secondary businesses, and Medentech. For the In January 2014, the Company products based on phosphates. most part, these transactions were acquired Hagesud Group, a completed in 2015. In December 2014, ICL signed a German producer of premium strategic partnership agreement spice blends and food ingredients with Yunnan Yuntianhua, the for meat processing. second largest chemicals In February 2014, ICL signed a manufacturer in China and strategic agreement with Allana the third largest phosphate Potash, the shares of which are manufacturer in the world, traded on the Toronto Stock to operate a joint venture Exchange, in connection with the (50/50) under ICL control, of development of a potash mine phosphate operations in Ethiopia. During preparation which includes a large- of this report, the Company scale phosphate offered to acquire all of the other mine and outstanding shares of Allana manufacture Potash. of secondary Potash Specialty Phosphates Phosphate-Based In August 2014, ICL acquired products. Food Additives IPK Fertilizers Elemental Bromine AmegA Sciences, an innovative development company and Specialty Fertilizers Phosphorus-Based industrial leader from England Flame Retardants which manufactures products Forest Fire Retardants for specialty agricultural markets, Top 3 including horticulture and turf & #1 #2 in Western Europe; amenity, including wetting agents, in Western #3 in India; Worldwide water conservation and growth Europe enhancement solutions. #4 in China and Brazil #1

Worldwide

#1 Worldwide in MAP / MKP Soluble Top 2 Agriculture Fertilizers; #1 in the United States in Controlled-Release Worldwide 1 For additional information about ICL’s material mergers and acquisitions in recent years, see: ICL 2014 Annual Report, “Part I, Item 4. Information on the Company, B. Fertilizers; #2 (tied) in Europe in Business Overview— Our History” (pages 40-43). Available on the Company’s website: www.icl-group.com/investors/reports/financialreports/Pages/default.aspx Controlled-Release Fertilizers

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Chapter 1: About ICL

Financial Performance

Direct Economic Value Generated (Revenues) Selected Financial Data (USD millions) 159 USD millions 5 2014 2013 2012 6,111 824 Sales 6,111 6,272 6,471 USD millions Operating Income 758 1,101 1,554 Community Investments Adjusted Operating Income 960 1,196 1,598 Payments to government Net Income attributable to the Company’s shareholders 464 819 1,300 894 Economic value retained 3,091 Adjusted Net Income attributable to the Company’s shareholders 695 1,012 1,339 Payments to Providers of capital Cash Flow from Operating Activities 895 1,127 1,727 Employee wages and benefits Adjusted EBITDA 1,344 1,559 1,946 Operating costs ROE 21.0% 28.8% 40.4% 1,138 ROIC 13.6% 18.2% 25.8% Dividend Yield 3.4% 8.0% 6.4%

Additional financial information is available on the Company’s website: http://www.icl-group.com/investors/reports/financialreports/Pages/default.aspx

Revenues, Operating Income, Net Income Segment Data USD millions ICL Fertilizers Potash ICL Fertilizers Phosphates & Fertilizers Sales Operating Income Net Income1 ICL Performance Products ICL Industrial Products Other Sales Operating income* 6,111 to external customers only adjusted

2% 14% 27% 22% 54% 758 13%

695 19% 25% 25%

20072006200520042003 2008 2009 20102011 2012 2013 2014

2003-2006 figures are based on Israeli GAAP; 2007-2013 figures are based on IFRS * Before inter-company eliminations & others activities Attributable to the Company’s shareholders, adjusted

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Chapter 1: About ICL

Segment Data ICL Corporate Responsibility ICL Fertilizers Policy & Guiding Principles

Revenues Operating income ICL places a strong emphasis monitor and enforce high standards Risk Management on its corporate responsibilities of environmental and social and the Precautionary $3,402 M* $670 M to its shareholders, employees responsibility. These committees and investors, customers and regularly consult with independent Principle

suppliers, communities and other experts to evaluate and reduce the As part of the strategic planning stakeholders. Throughout its history, economic, social and environmental required to implement sustainable ICL’s understanding of corporate impacts of the company and ensure business activities, an organizational responsibility has evolved and compliance with all legal obligations. risk management structure was deepened. It has led the Company *including $260 million in internal sales The Company’s Board of Directors established at ICL companies, to substantially increase its appointed Asher Grinbaum, the including structured programs to environmental, social and communal Company’s Deputy CEO and COO, promote the issue. In addition, the activities, and, most importantly, to serve as the Company’s Chief Risk Company maintains an Ecology ICL Industrial Products to internalize a commitment to Manager in charge of environmental, Center of Excellence which responsible business practices that safety, occupational health and serves as the Company’s arm for Revenues Operating income guides it on a daily basis. security issues of the Company. Mr. managing, reducing and controlling The ICL Guidelines for Corporate Grinbaum reports to ICL’s CEO and, environmental risk at ICL companies. $1,337 M* $128 M* Responsibility embody the Company’s periodically on his behalf, to the Board Through this structured process to commitment to good corporate of Directors, on activities in these identify risks and opportunities, ICL governance and ensure it conducts areas. applies the precautionary principle to business in a way that will lead to environmental and economic issues. As part of his role, Mr. Grinbaum is in sustainable growth while balancing charge of the Corporate Responsibility An Enterprise Risk Management (ERM) the needs of its various stakeholders, Report. system to identify existing and future and fulfilling statutory and moral *including $20 million in internal sales * Adjusted risks, created by ICL in cooperation The ICL 2014 Corporate Responsibility duties. This commitment starts with with Ernst & Young, includes Report, approved by the Board of ICL’s CEO, ICL’s Chief Compliance environmental aspects. The ERM Directors , outlines its Guidelines Officer and ICL’s senior management identifies, measures, manages and for Corporate Responsibility and extends throughout the reduces risks, including assimilation ICL Performance Products and documents the Company’s organization. of procedures required to implement continuing global progress in four The Company’s Board of Directors the policy. This system relates to Revenues Operating income key performance areas: Marketplace, and the Group’s management, strategic, operational, statutory and Workplace, Environment and take various measures to ensure economic risks in all aspects of the Community. $1,614 M* $197 M* ICL’s businesses are conducted in organization’s operations, including accordance with the Guidelines. its impact on the environment, For example, the company has the economy and society at large. dedicated committees which Regarding the environment, ICL’s commitment to the principles of the Responsible Care Global Charter

*including $81 million in internal sales * Adjusted (see below in this section) serves to integrate the precautionary principles.

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Chapter 1: About ICL

12 Guiding Principles for Corporate Responsibility

Asher Grinbaum, “The Need to Integrate Sustainability Considerations and Corporate Responsibility at the Core of Our Business Strategy”

ICL’s Executive VP and COO writes about the company’s environmental and 1. Work to maintain the highest standards of integrity and corporate governance, ethics social responsibility in an ever changing world: and honesty in all of the Company’s businesses. “Humanity’s needs in the present era go beyond the products necessary for our 2. Operate in compliance with applicable laws, regulations and permits in all areas of physical existence. Companies, corporations and large organizations are now activities and seek to voluntary adopt the industry’s best practices and evolving global required to operate according to a responsible world perspective and to adopt strategies that include environmental and social considerations. When we say “needs evolve and so do we”, we are also talking standards around the world. about changes in how the public, in general, and the industry perceive environmental issues and 3. Constantly strive for excellence, quality, competency and efficiency, and encourage sustainability, and about the accompanying regulatory changes. innovation and creativity throughout all of the Company’s activities.

More than seven billion people live on this planet. The world is becoming more crowded, life 4. Ensure all administrative and financial resources required to implement and assimilate expectancy is rising, the environmental damage caused by modern living is increasing, and we all the CR policy are in place to achieve outstanding CR performance. worry for the world we will leave behind us. Consequently, there is a growing global demand to focus on the environment and sustainable industry. A company aiming for business success and constant 5. Establish procedures and implement advanced monitoring systems to identify, assess improvement must understand and internalize these changes; it must be committed to reducing its and control risks in the organization and throughout the product lifecycle (i.e. Product environmental footprint, and, of course, it must comply with regulatory requirements. Stewardship).

It is not sufficient to provide solutions for human needs with our products. We must also ensure that 6. Promote an ongoing dialogue and engagement with each set of stakeholders, these products and their manufacture do not expand our ecological footprint, and that we contribute maintained in a spirit of transparency and good faith and ensure that the Company’s to the development of new products that will assist others to achieve these goals and minimize efforts match their priorities. environmental damage. 7. Exercise utmost vigilance in using natural recourses and protecting the environment, Recent years have seen a wave of ecological legislation, leading to larger quantities of data to be and constantly seek ways to minimize environmental impacts wherever the Company reported and stricter demands to reduce pollution and emissions. We often hear the term “license to operates. Strive to exceed regulatory requirements in the Company’s environmental operate”, meaning that the organization must constantly prove its leadership on sustainability issues. performance. We understood that needs evolve and we have decided to act accordingly. ICL has introduced a policy of sustainable development, and is making significant efforts to act responsibly while complying with 8. Utilize Company’s assets and know-how to develop sustainable products and unique all environmental regulations and laws. In many cases, it is a world leader in the chemical industry, tailored integrated formulations, to add value to the Company’s customers in end for example, in its handling of greenhouse gases and its encouragement of activity to protect and markets. save animals, etc.. ICL submits numerous reports – voluntary and mandatory – that increase its 9. Strive to provide lasting benefits to the communities where the Company operates by transparency, and is planning to implement a pioneering, advanced information system to report on supporting sustainable initiatives to develop their social, economic and institutional sustainability, once again proving its leadership in this field. fabric. Seek to maximize employment, business and economic opportunities for local Responsible values are part of our business strategy, and there is a growing awareness that these communities from Company’s existing operations and new ventures. values must be an integral and primary part of our risk management system. Corporate responsibility must permeate all areas of our activity: finance, operations, procurement, facilities, human resources, 10. Conduct all activities in accordance with accepted standards in the protection and supply chain, logistics, investor relations, marketing, communications and others. promotion of human rights.

We must remember that responsible conduct helps us to create added value for ICL and the 11. Ensure at all times to provide health and safety work communities where it operates, while establishing a relationship of trust and transparency that is environment. critical to our success.” 12. Provide rewarding and meaningful livelihood to employees and strive to be an “employer of choice”.

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Chapter 1: About ICL

Material Issues

ICL constantly strives to understand, monitor and evaluate The scope of this report covers ICL’s efforts companywide Phase 1 1. Identification relevant issues for the Company and its stakeholders, trying and globally, in relation to the material issues identified in Identification In the first phase, a list of relevant topics was compiled from the following perspectives: to adjust strategies and disclosure accordingly. In 2014, the the analysis. Company conducted a Materiality analysis in order to take a The materiality analysis was based on the framework Perspective Sources close and considered look at the economic, environmental developed by the Global Reporting Initiative (GRI). and social issues that are of the highest concern to Relevance for ICL’s Enterprise Risk Management (ERM) its stakeholders and that could significantly affect the business Corporate strategy Company's ability to execute its business strategy. Stakeholders identifications through commissioned questionnaires Relevance for Commissioned questionnaires completed by ICL’s executives stakeholders Tracking publicly-available information Regular engagement with key stakeholders Monitoring questions submitted to the Company’s Q&A website and to Process various ICL department (e.g. Investors relations, Sustainability) Emerging issues for Material issues for relevant organizations and reporting the chemical and bodies (e.g. IFA, ICMM, GRI, CDP, MAALA) Material issues were identified using a three phase process: mining sectors Benchmarking of best practices by world-class peers Local and national Media and social networks analyses economic, social and environmental context

Phase 2 2. Prioritization Prioritization Phase 1 Phase 2 Phase 3 The topics compiled in the previous stage was agenda during the reporting period, i.e. issues Identification Prioritization Validation evaluated to determine which were material to that were addressed in a relatively extensive ICL, through qualitative and quantitative analysis manner by the Board of Directors and the and through discussions on whether, and to what Company’s executives; policies and procedures degree, they reflect ICL’s significant economic, that were instituted or amended on the matter; environmental and social impact or substantively or significant investments that were made or influence the assessments and decisions of its involvement by the Company related to the stakeholders. particular issue.

The issues were then classified in a matrix with The material issues with high importance for ICL’s the material issues for ICL on an x-axis and stakeholders (Y Axis) were defined and prioritized, the material issues for ICL stakeholders, on a mainly, by evaluating and weighing the data Internal and external List of relevant Matrix of List of material y-axis. The material issues with high importance compiled from the commissioned questionnaires documentation, analysis, topics to be material issues issues to be included for ICL (X Axis) were defined and prioritized completed by a group of ICL’s executives with studies and benchmarketing considered by priority in the report primarily using the Company’s Enterprise Risk key stakeholder interaction, representing the Management (ERM). The ERM, compiled by Ernst Company’s various activities, geographies and & Young, identifies risks at corporate, as well as perspectives. company levels. Key sustainable concerns were This evaluation was executed by a team selected from the identified risks, according to composed of the Assistant to the EVP & COO, the the principles for defining report content. Company’s Carbon Footprint and Sustainability In addition, some level of importance was Coordinator and external advisors, in attributed to issues that were on the Company’s consultation with various corporate departments.

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Chapter 1: About ICL

Matrix of Material Issues: Transparency and Dialogue

Market Competition & Demand with Stakeholders Government-Takes (GT) Manufacturing & Operations

Governmental Local Governance & Ethics Communities Investors Employees Natural Resource Availability Regulatory Media Authorities Product R&D Social and Consumer Community Local Environmental Issues Customers Organizations Energy Management Standardization Business Partners Product Safety Bodies and (e.g. suppliers and Environmental Academia distributors) Biodiversity & Nature Conservation High Employment & Employability Compliance

Occupational Health & Safety As a leading, multinational company, ICL’s policy of transparency and II. Transparency and dialogue ICL has a wide range of stakeholders dialogue with its stakeholders is based through all fields of activities Local Community Development including investors, employees, on four pillars: ICL operates in a transparent business partners (e.g. suppliers I. Operating in accordance fashion and encourages dialogue and distributors), customers as well with basic principles of with stakeholders about the as governmental and regulatory open, sharing and active Company’s development authorities, standardization bodies communication and production activities and and academia, local communities, the their economic, social and media and environmental, consumer, ICL initiates and nurtures environmental impact, and the social and community organizations. meaningful dialogues with proper use of its products and its stakeholders regarding Importance for ICL’s Stakeholders Although many of the topics risks related to their use. significant matters concerning the pertaining to sustainability are global Company’s operations, including III. Initiating communication by nature, each type of stakeholder is areas of dispute, and how to channels and developing tools Low High characterized by its particular needs Importance for ICL handle mishaps. In addition the for stakeholder dialogue and interests concerning ICL and its Company is careful to provide its operations. Due to the diversity of ICL’s stakeholders with reliable and stakeholders, both in terms of ICL recognizes the importance of comprehensive information on its interests and geography, the its stakeholders and the interests activities. Phase 3 Company is careful to utilize 3. Validation they represent, and therefore Validation a variety of communication The matrix of material issues which resulted from the previous phase was discussed and invests a great deal of resources to channels and platforms to remain analyzed by the team in accordance with Completeness and Stakeholder Inclusiveness maintain honest, open and fruitful transparent, and in continuous principles. The material issues in this report are the result of this final matrix. communication with them. dialogue, with its stakeholders around the world.

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Chapter 1: About ICL

Publications and Face-To-Face Interaction Reports ICL initiates and participates in various conventions and events and encourages the general public, and ICL’s stakeholders, in ICL publishes financial reports, a particular, to visit the Company’s production sites. Corporate Responsibility report (Global Reporting Initiative (GRI), ICL Q&A website Maala – Business for Social During 2014 about 25,000 people visited ICL sites located in Israel and In 2014, ICL launched a targeted Responsibility); a Report to the and accessible website in which the experienced the full transparency present at all stages of the Company’s Carbon Disclosure Project (CDP) (see public can obtain information and ask production process. details in the chapter on Reduction of questions about any ICL-related topic. Greenhouse Gases and Addressing ICL undertakes to respond to every During 2014, many visitors were given guided tours of the Company’s Climate Change); and voluntary question directly within 48 hours. facilities in Spain, both at its mining facilities in Cabanasses, Súria and the reports and professional publications www.iclanswers.co.il (in Hebrew) salt deposit at Cogulló in Sallent. issued by the Company on an ongoing basis. ICL New Branding Site Communication Internal Communication within the Company via Media On January 2015, ICL launched a unique website ICL communicates within the Company in a variety of ways: ICL publishes information on its which details the thinking behind the Company’s through ICL’s brand site; its internal company newsletters website, a ICL Q&A website, in rebranding, displays its new graphic design “Minute To-8” video clips distributed by segment, company subsidiary or site level and social media, through “Minute to 8” scheme and illustrates how these combine global newsletters distributed twice a year to all ICL employees; informative video clips, and through Informative video clips aim to provide, harmoniously to symbolize ICL’s vision and in an approachable manner, reliable internal quarterly videos of the Company’s CEO providing advertising campaigns. strategy. The brand site also introduces the and comprehensive information on ICL’s employees updates on the Company; managerial information- new names of ICL’s business units worldwide, activities and products. sharing panels; internal messaging system informing and includes a “brand book” and video clips The video clips are available in eight employees about executive appointments and pressing demonstrating ICL’s essential role in Agriculture, languages via the Company’s websites matters such as health or security issues. Food and Engineered Materials. and on its YouTube channel. The brand site available in seven languages and is primarily for ICL’s employees.

www.iclbranding.com

Public campaign In early 2014, ICL initiated a campaign in Israel aimed at providing the Israeli “Unit Leaders” public with information regarding A managerial panel consisting of 450 ICL several of ICL’s products and their vital executives representing the Company’s contribution to the daily life of people various activities meets on a quarterly in Israel and around the world. The basis to share updates regarding campaign was broadcast on television projects and programs occurring in the and shared through the Internet. organization.

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Chapter 1: About ICL

Professional and Industry-related Involvement Ongoing Engagement Joint Community Advisory Panel (CAP) with Local Joint Community Advisory Panels (CAP) include representatives of ICL As a leading firm in its industry, Three representatives from the The COO of ICL Iberia, is Communities factories, the community and green organizations at ICL’s sites around ICL has significant resources at its Company are members of the Chairman of the “Sustainable the world. The purpose of these forums is to discuss environmental disposal, including a substantial Executive Committees of the Mining“ Group of the Spanish In order to provide issues, develop joint programs for the benefit of the environment and amount of professional information Manufacturers’ Association, two Standardization Agency (AENOR). transparency and participate the community, create a relationships between industry and various obtained over the years, and a highly of which are in the Southern in meaningful discussions In 2014, ICL Iberia has signed stakeholders, and to develop an intelligent and productive dialogue based experienced group of experts working branch and one is in the Northern with stakeholders, ICL an agreement of collaboration on reliable information. ICL plants in Israel and abroad have been active in for it. The Company shares this branch. continually invests and is with the Official Chamber of such joint forums for many years. knowledge with different professional involved in local communities The deputy CEO and External Commerce and Industry of and industry-related associations, in which it operates. During 2014, CAP meetings of and Dead Sea Magnesium Relations Director of ICL is Manresa for the purpose of organizations and forums, on both the were held, generally once a quarter. Among the topics discussed were the currently the Chairman of representing and promoting ICL’s responsiveness begins international and national levels. P-88 pumping station, the salt harvest at Pond No. 5, the sea canal, the the Chemical, Pharmaceutical general interests of commerce with its participation in new power station, natural gas, the new Clean Air law, continual monitoring Furthermore, ICL recognizes the need and Cleantech Society of the and industry and providing various Joint Community of stacks and the plan to build a new visiting center. In addition, discussions to remain informed about the most Manufacturers’ Association of services to support organizations Forums where it exchanges were held on ways to participate in generating local tourism for communities up-to-date technology, processes, Israel. operating in Bages County. information and concerns. near the factories from tours of Dead Sea Works factory. Based on this programs and initiatives occurring Through its employees, many The head of ICL’s Advanced ICL maintains an ongoing cooperation, joint tours are now held at both the factories and in these in the industry and administered by of whom are residents of the Additives business unit and the involvement in various activities communities. various industry-related associations, community, the Company head of its Global R&D Food administered by the International organizations and forums. For all of deepens its understanding of, Bromine Compounds Ltd. held CAP meetings bi-monthly in 2014, where Specialties are members of the Fertilizers Association (IFA). For these reasons, ICL actively participates and commitment to, the local the forum discussed reporting on environmental, health and safety issues, sub-group “P-Saure Salze” of example, Company agronomists in the following forums and trade community. among other issues. the German Chemical Industry work in conjunction with the IFA associations: Association. and ICL Rotem and Dead Sea As a result of its intensive ICL-IP America participates in two CAP organizations. Its plant in Gallipolis ICL is involved in the Works were awarded Product engagement, ICL obtains Ferry (GF) has a local CAP and Clearon is a member of a group of chemical A representative of Industrial Manufacturers’ Association of Stewardship certification with in-depth knowledge of the companies in the South Charleston, West Virginia, area who hold joint Products serves as a Israel and participates in several honors by the IFA. communities’ wide range of meetings. Both CAPs meet monthly and review incidents and injury statistics, representative of the Company of its committees including needs and concerns. This production activities, construction, employment, etc. with CAP members. on the inter-ministerial committee ICL maintains an ongoing its environmental, hazardous knowledge informs the for the new chemicals law in involvement in various activities materials, air pollution, waste Company’s decision making Israel. administered by the International and contaminated soil, climate Council for Chemicals process. Representatives from ICL change, health & safety and Associations (ICCA), e.g. the segments in Israel, participate energy committees. Responsible Care program. in public committees, such as A representative from the those organized by the Standards ICL Industrial Products, along with Connection to Environmental and Social organizations Company is currently the Institute. two other major flame retardant Chairman of the hazardous manufacturers, – Albemarle and A representative of ICL Industrial materials committee. Chemtura, took the initiative ICL is associated with a wide range of environmental and social organizations with whom it collaborates to promote Products represented the The Human Resources manager to develop and implement a environmental matters and provide support to communities. These collaborations are described in detail in the Social Standards Institute of Israel of ICL Israel is a member of Voluntary Emissions Control Responsibility section of this report below. on the international ISO the Labor Committee of the Action Program (VECAP) for the committee for ISO 26000 Social IV. Tracking and documenting stakeholders’ interests Manufacturers’ Association. flame retardant industry. Responsibility, until the standard Over the past eight years, ICL has been tracking stakeholders with whom the Company and its subsidiaries have engaged in was approved. significant dialogue.

Thanks to this policy, ICL compiled a list of topics which were the most significant issues for stakeholders in 2014.

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Chapter 1: About ICL

2014 Top Issues ICL Iberia, Spain – Example of Transparency and in Public Dialogue Dialogue with Stakeholders Dani Chen: “Continuous and Transparent Dialogue Concerning ICL: In 2014, ICL Iberia implemented a new communication plan with the goal of with the Public is the Foundation for Proper Conduct” enhancing knowledge and awareness regarding the Company’s operations and promoting transparency in its engagement with stakeholders. ICL’s Executive Vice President, Corporate Relations, writes about the importance of public discourse in the era of the information superhighway: 1. The Dead Sea and industrial The following actions which occurred in 2014 demonstrate ICL Iberia’s efforts to activities there; provide the public with information related to its business, operating context, “In a world of direct communications and the information super highway, a company seeking success must maintain a dialogue with the public, with 2. Receiving permits to continue and social and environmental impact. Further social involvement is described in government, and with its stakeholders. We live in a world where most information is easy to these activities, including mining detail in the Social Responsibility section below. obtain without delay, so we must be transparent. Publishing reliable, clear and comprehensive concessions; Guided visits to facilities – During 2014, the Company opened its facilities to information will help us gain public trust for our messages, intentions and actions. 3. Preserving the environment many guided tours both at the mining facilities in Cabanasses, Súria, as well as The fabric of ICL’s activity is woven from all its stakeholders, and we must not overlook them. and limiting ICL’s environmental the salt deposit at Cogulló in Sallent. These tours allowed secondary school, high Concealment leads to suspicion and ignorance about our contribution to the societies where we footprint; school and university students, business associations, media representatives, city councils and the general public to benefit from a first-hand view of the operate. No longer can a business focus only on profits, while disregarding social issues and the 4. Paying fair amounts for the use of Company’s operations and processes. public mood. natural resources; Involvement in professional discussions - Several experts from ICL Iberia As a modern, economic company, ICL believes that open dialogue with the public is the 5. The contribution to the public representing different departments, e.g., mining, geology, and environment, foundation for all proper corporate conduct, and, ultimately, it affects business aspects. Unless interest from ICL’s activities; were involved in various discussions, forums and colloquiums that occurred in we adjust to the direction and pace of change, we’ll be left behind. And being left behind is 6. Development and production 2014 within Central Catalonia. completely contrary to the spirit and history of this company. of a new generation of more Provide information through the media - The Company maintains close The fact that our activity rests on natural resources made available to us by various countries environmentally-friendly products relations with the local, regional and national media. In 2014, ICL Iberia issued strengthens, without doubt, our commitment to transparency and greater dialogue with the and following up on their impact more than ten press releases regarding the different projects of the company, authorities, the public and stakeholders wherever we operate. The public has the right to know after their use; managed numerous interviews and statements from corporate spokespersons how we are transforming the natural resources they make available to us into products that 7. Implementation and and presented digital video reports on its facilities. serve the world community, and how we are meeting our responsibilities to protect humans and establishment of openness and the environment. Even if they don’t ask – we’ll provide answers. We see this as a moral obligation Redesign of the corporate magazine - Since January 2009, ICL Iberia has transparency by ICL, including the and not just good business practice. published a corporate magazine. The magazine is published on a quarterly basis development of communication and distributed to workers, leading suppliers, the media, councils (e.g., the Bages The field of external corporate relations is relatively new, but it is rapidly developing and gaining channels with stakeholders; regional council), General Directorate of Mines, EUPM, primary schools and high in importance. Our activity in this field, and the resources we devote to it, will grow enormously in 8. Provision of essential human schools, libraries, Chamber of Commerce, Official College of Mines Technical the coming years. We intend to maintain maximum transparency with all interested parties, and needs – the contribution to Engineers, FFCC, Barcelona Port, Trade Promotional Organization and others. In to share with them all information and decisions that concern them. That is our duty – these are humanity derived from ICL’s 2014, the Company redesigned the magazine in accordance with the new ICL our partners, and our success is their success. products; Group brand. New trends and changes in the public agenda reinforce the need to develop fruitful relations 9. Crisis and deceleration in markets Production of a documentary “A Great Mountain, a Great Opportunity” - with other organizations involved in social and environmental activity. We will continuously in which the Company operates The Company produced of a documentary film which explains the potash examine the reality around us, the changing needs, the developing social codes and emphases. and the necessity to implement production process from the inside of the mine to its marketing, emphasizing We will try to assess trends in our fields of interest and activity and make suitable preparations, efficiency plans at ICL’s plants, the environmental management of its El Cogulló mine. The documentary and, if necessary, we will also initiate processes of change that contribute to individuals and to along with offering retirement premiered on World Environmental Day and is available on the new ICL Iberia society. When we say that we will go where needs take us, that is exactly what we mean.” packages and dismissing Súria & Sallent web site: http://www.icliberia.com/page/link-documental employees of the Company within New Media infrastructure - During 2014, ICL Iberia prepared a new media the framework of the efficiency infrastructure, including a redesigned web site for the purpose of broadening plans. awareness of the Company.

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Corporate Governance & Economic Responsibility

Chapter OneTwo

w Materia Ra ls ICL’s Activity tation & L or og p is s t n ic Throughout a s r T ark the Lifecycle: d M ets En & ture Pro c du fa c u t n io a n

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Chapter 2: Corporate Governance & Economic Responsibility

Corporate Governance

ICL is committed to practicing good corporate governance; close Organizational Structure oversight of business strategy and fiscal accountability, ethical corporate behavior and fairness to shareholders and stakeholders. Accordingly, ICL the Company abides by advanced principles of corporate governance

that define the relationships between ICL Finance ICL Finance INc. Twincap Rotem Amfert Dead Sea Dead Sea Mifalei Tovala B.V Inc. (USA) Forsakings AB Negev Works Bromine (Logistics) the Company’s management, Board (Netherlands) (Sweden) Company Ltd. of Directors, shareholders and stakeholders. Bromine Compounds Fertilizers & ICL Holdings Cleveland Dead Sea ICL is incorporated in Israel and Chemicals The Netherlands Potash (UK) Magnesium Cooperatief U.A therefore, complies with various corporate governance requirements Tetrabrom IDE ICL IP Europe B.V ICL Fertilizers Amsterdam Everris ICL Iberia SCS under the Israeli Companies Law, (Desalination (Netherlands) Europe CV (NL) Fertilizers B.V International (Spain) Engineering) 1999. These are in addition to the (Netherlands) B.V (NL) ICL (Shanghai) Investment requirements which apply to ICL as a Co.Ltd Iberpotash publicly traded company in Tel -Aviv ICL IP Sinoborm (Spain) Terneuzen B.V (China) and New- York. stakeholders, and an enforcement plan that ensures strict compliance with both TAMI

Furthermore, the Company has the law and with internal regulations. Fuentes (Spain) adopted, and will continue to adopt as ICL IP necessary, voluntary rules to ensure * For additional information about ICL’s Corporate Governance Practices, see ICL 2014 Annual Report, “Part II, Japan Item 16G. Corporate Governance” (page 226). maximum transparency towards all Available on the Company’s website: www.icl-group.com/investors/reports/financialreports/Pages/default.aspx ICL Holdings BKG Puriphos Pekafert B.V PM ICL Brazil Germany beschränkt B.V (Netherlands) Haftende OHG

Rotem Holdings ICL Fertilizers ICL Asia Ltd. Eurocil Deutschland Luxembourg Corporate Structure ICL North America Inc. BK Giulini ICL France (USA) (Germany)

ICL is composed of three segments: Fertilizers, Industrial Products and Performance Products. Each segment manages a number of companies and production sites. This is a practical structure for management and evaluation. However, the ICL Performance ICL IP Everris Scora segments are not their own legal entities. Product Inc America France

Alongside the Fertilizers, Industrial Products and Performance Products segment structure, ICL has established geographically- based organizational headquarters which coordinate activities between production sites operating in the region. This

increases efficiency and prevents duplication, while harnessing inter-segment synergies in the region. ICL Fertilizers ICL’s Board of Directors establishes Company policy and monitors the execution of the policy by management. The CEO, who ICL Industrial Products serves as the “head” of the ICL Group as a whole, is supported by an executive team that includes the CEOs of ICL Fertilizers, ICL Performance Products ICL Industrial Products and ICL Performance Products. Others Finance and Services

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Chapter 2: Corporate Governance & Economic Responsibility

Board of Directors

Board Responsibilities and Practices Committee Composition Committee Composition Operations Committee In addition to their legal 5 - Directors 4 - Directors Committee Responsibilities responsibilities, ICL policy requires the Board to approve the Company’s and authority to engage 4 - Officers (including the internal 2 – Officers Assist the Board of Directors in auditor) its subsidiaries’ operations, including advisors. ICL’s Board of All co mmittee members are– Over 50 fulfilling its responsibilities with investments that exceed a specified Directors has established 2- People qualified to serve as “audit years old respect to the Company’s equity amount, organizational changes, and the following committees: committee financial experts” as management, business operations 2 - Female mergers and acquisitions. defined by SEC rules and strategy implementation, including M&A transactions and The Chairman of the Board and the 9 - Over 50 years old All committee members are over 50 Audit and Finance research and development strategy. CEO have distinct responsibilities and years old The committee Held 9 meetings 3 - Between the ages of 30-50 Committee the positions are held by separate in 2014. The Operations Committee is not 2 – Female Board Members individuals. This is also true of Board 1 – Female Committee Responsibilities authorized to exercise any power of of Directors and the Company’s the Board of Directors. 0 - Minority group members Identify and address flaws in officers who are not directors. the business management of Environment, Safety The committee held 12 meetings and Public Affairs Committee Composition The Company does not have contracts the company; in 2014. Committee 5 – Directors with its current directors, excluding Board activities Review and approve related Committee Responsibilities 5 - Officers the CEO. involving Corporate party transactions, establish Responsibility and whistleblower procedures; Human Resources Assist the Board of Directors Directors are elected each year at and Compensation All members areover 40 years old1- Sustainability in overseeing the Company’s Female the General Meeting (except external Oversee the Company’s Committee At least once a year, ICL’s Board of environment and safety policies directors, whose term is set by law at internal audit system and the The committee held 7 meetings Directors convenes a designated Committee Responsibilities and programs and its community three years); performance of its internal in 2014. meeting to discuss corporate outreach, public relations and New board members receive auditor; Recommend to the Board responsibility and sustainability, advocacy programs. information about ICL and its of Directors, for ultimate employee safety, ecology, etc. Assess the scope of the work shareholder approval by a special The Environment, Safety and Public operations, and all directors receive and recommend the fees of In 2014, this meeting was held in May majority, a policy governing Affairs Committee is not authorized periodic training about issues when the Company’s independent and included presentations on the the compensation of directors to exercise any power of the Board of there are significant changes. accounting firm; Company’s environmental quality, and officers based on specified Directors. In 2014, ICL’s Board of Directors ecology and safety policies, as well as Determine whether certain criteria; convened 15 times. the implementation of these policies. related party actions and Review modifications to, and transactions are “material” or Committee Composition implementation of compensation “extraordinary”; Board Composition policy from time to time, and 3 – Directors Appoint, compensate and approve the actual compensation 12 - Directors 3 - Officers Board oversee of the work of the terms of directors and officers All members are over 40 6 - Independent directors Committees Company’s independent prior to approval by the Board of auditors; years old 3 - External directors; an additional Directors; 2 - Female director was designated as an Assist the Board of Directors Oversee the Company’s human Each Board committee operates in “independent director” under the in monitoring the Company’s resources strategy and key The committee held 6 accordance with a written charter Israeli Companies Law financial statements, the programs, including its “One meetings in 2014. that sets forth the committee’s effectiveness of its internal ICL” program, senior leadership 10 - With accounting and financial structure, operations, membership controls and its compliance development, bonus and equity expertise requirements, responsibilities and with legal and regulatory plans and top management requirements. evaluation and succession planning.

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Chapter 2: Corporate Governance & Economic Responsibility

Identifying Educational background, determine bonus eligibility and the Procedure for Feedback In 2014, the Company addressed Candidates for qualifications, skills, annual bonus for each Executive Transactions with and Control 25 complaints through its specializations, prior professional Officer is calculated separately for internal audit unit. Management and business experience, past each Measurable Category and for Interested Parties Mechanisms Positions performance and achievements the Competencies key performance Identity of complainant: On December 22, 2013, the ICL Audit indicators. 8 complaints were filled by Potential candidates for senior Position and scope of and Financial Statements Committee External Audit management positions at ICL are responsibility Company employees; approved a new procedure for Control mechanisms at the reviewed using a professional 1 by a contractor; Previous compensation Equity-based conducing transactions where ICL management level: process. During the first stage, there agreements compensation stakeholders have a personal interest. Periodically, internal financial 16 complaints were received is an attempt to identify experienced This procedure was created as part Comparable compensation From time to time, ICL may offer reporting audits, are themselves from anonymous sources. candidates from within the Company of a comprehensive program for agreements within ICL its Executive Officers equity-based audited to ensure they are effective. or relevant corporate personnel. compliance with the Securities Law and For additional information, see compensation in order to retain them These high-level audits, are signed by In addition to the considerations the Companies Law. The provisions Nature of complaints: for the long-term. The amount of ICL’s management and the auditor. the description of the Leadership above, and to ensure that ICL offers and guidelines for detecting, identifying equity-based compensation granted 7 complaints concerned Competency Model, in the section Executive Officers competitive and approving transactions where to an Executive Officer is determined allegedly unethical or on Work Environment. If suitable compensation packages so that it interested parties, such as controlling by each Executive Officer's position, “Field” level auditing mechanism: inappropriate behavior by persons are not identified, the search can attract and retain highly skilled shareholders or executive directors, are responsibilities, achievements and managers; is extended beyond the Company. professionals, ICL established a concerned, include detailed processes ICL provides “Hotlines” through which skills. The process includes receiving base salary that is competitive with for collecting the relevant information employees can contact internal 6 concerned allegedly recommendations for candidates, the base salaries paid to Executive Equity-based compensation is subject about the contracting parties and the auditors to report issues, or events, preferential treatment or formal testing and interviews with the Officers in similar positions, in both to a vesting period of at least three (3) reporting and disclosure requirements they consider to be improper, preferential recruitment of CEO and appropriate officials in ICL. global and local companies, as years. for these transactions. problematic or deviating from the employees; provisions of the law, procedures or appropriate for each position. 5 concerned allegedly This procedure is intended to add to, the Code of Ethics. irregularities in Executive Retirement and and not to detract from, any other ICL’s hotlines are operated under engagement agreements Compensation Fringe benefits termination arrangements legal obligation regarding the approval of such transactions. To implement the auspices of the internal audit with contractors and ICL offers its Executive Officers a ICL's Executive Officers may be All of the Executive Officers are this procedure, ICL has developed system. They are currently operated suppliers; compensation package that maintains entitled to fringe benefits as entitled to pension benefits and in ICL companies in the Americas and a computerized system that aids in 5 concerned allegedly a balance between fixed and variable mandated or afforded by law, or that severance pay they accumulated Europe, as well as the Asia Pacific the identification of transactions with unjustified or unauthorized components, using a profit sharing are customary in the Company and while working for ICL. If there is a region and Israel. An ongoing effort is interested parties that require this type actions taken by employees mechanism. that the Authorized Organs deems discrepancy between the money being made to expand access to the of disclosure and reporting. in the course of their work advisable to provide a competitive Executive Officers have accumulated, hotline to all ICL sites and companies Pursuant to Amendment 20 of Israel’s (e.g. integrity in the process employment package. and the amount owed the Executive Officers and controlling shareholders around the world. Companies Law, the General Meeting of sale, violation of safety Officer based on his/her base salary are required to complete a semi-annual of Shareholders of ICL approved the policy); and years of seniority at ICL, the questionnaire to identify and list all the Compensation Policy for ICL Office Annual cash bonus Executive Officer will be paid the full entities in which they have a personal 2 complaints concerned Holders in December 2014. interest. The list of interested parties ICL's Executive Officers are entitled to amount he/she is due. suspected corruption and The compensation package includes: is then entered into the computerized a cash bonus in accordance with an fraud conducts. system. The ICL Controller marks the Annual Bonus Plan. The Annual Bonus 30 complaints were specified suppliers and customers as Plan aims to create an alignment addressed during 2014; Base salary interested parties. The system issues between the compensation of the a real-time alert before transactions 25 complaints were The base salary may vary between Executive Officers and the Company's (above a certain sum) are made reported to the Audit the Executive Officers in ICL and is annual and long term goals. individually determined according with an interested party, enabling ICL Committee during 2014; Quantitative and qualitative to follow the correct procedure for to some or all of the following 6 complaints were received performance indicators are used to approving the transaction. considerations: before 2014 and addressed Moreover, ICL does not make during 2014. contributions, financial or otherwise, to politicians or to political bodies.

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Chapter 2: Corporate Governance & Economic Responsibility

Procedure for (MSDS); labeling and registration No administrative or judicial Voluntary External Responsible Care Management rules for existing chemicals, and sanctions have been levied System (RCMS) - RC 14001 Authorized chemicals under development in against ICL for failure to comply Standards of (certification received at most Signatories particular countries or territories (for with laws or regulations related Quality facilities in the USA the few example, the Registration, Evaluation, to accounting fraud, workplace remainder facilities in North on the ICL uses a variety of quality Authorization and Restriction of discrimination, or corruption. America are in final stages of the management systems in the Company’s Chemicals (REACH) Law in Europe); process); In 2014, the Ministry of operation of its subsidiaries in order Accounts specific rules and regulations Environmental Protection to improve and streamline processes ICL began implementing regarding special uses of substances ICL has established imposed fines totaling NIS 6,000 and performance, and reduce risks. a process in its plants for that ICL manufactures (such as a procedure for on ICL-Fertilizers Logistics facilities accreditation for ISO 50001 food or cosmetics); environmental Management systems used by ICL signatory rights and at port in respect of a Energy Management System. In protection laws relating to companies include, but are not limited authorization. According relatively small paint residue that Neot Hovav, the Company passed manufacture or the use of products to: to Company policy, spilled into the sea (during a paint an accreditation audit performed and their environmental impact; two defined, authorized job related to construction work). Quality Management - ISO 9001 by the Israel Standard Institute and laws regarding the recycling of signatories are required to bind and is expected to receive the The Company’s subsidiary in Environmental Management - ISO the Company in any legal action. The products at the end of their useful 14001; certificate. In its other plants, the lives (such as electronic and electrical Spain, ICL Iberia, is involved in Internal authorizations are determined by Company expects to receive the equipment and plastic, etc.). legal proceedings concerning its Safety and Health Management - Enforcement the level of the signatory’s position certificate during 2015. potash production center in the OHSAS 18001; and according to the financial scope Over the past years, there has been ICL maintains compliance programs town Sallent (by the Llobregat Methodologies for operational of the transaction. Some authorized a significant increase in regulatory Food Safety Standards for the to ensure that employees follow the river valley). In October 2013, the excellence assimilated by ICL includes, signatories have limited signatory requirements for environmental Food Industry - HACCP, ISO 22000 provisions of the laws in the locations regional court issued a judgment but not limited to: rights. issues in Israel, e.g. the Clean Air and FSSC-22000; in which it operates, and with the disqualifying the Company’s Law, the Packaging Law, and the Six Sigma; Company’s procedures. environmental mining license GMP Good Manufacturing Environmental Protection Law (contending that there were Practices (Food); Improvement teams; These programs include antitrust, Compliance (Pollutant Release and Transfer defects in the provision of the Risk management and lesson securities, ecology, occupational with Laws and Register–Duties of Reporting and Good Manufacturing license by the government), learning. health and safety, labor, harassment Registration Requirements (“the PRTR Practices (Pharma – for Active Regulations and in February 2014, its urban prevention, trade compliance, Law“). Further on in this report there Pharmaceutical Ingredients); ICL’s policy is to comply with all license (contending that the and anti-bribery and corruption. are details regarding the efforts ICL provisions of the law, statutes, license does not comply with Standard for Security and Employees are also expected to act is investing in to adapt its operations regulations, treaties, instructions and the required conditions for Continuity Management - SI according to the ICL Code of Ethics. to new regulations on a regular basis permits in all areas of operations. piling salt at the site). The court’s 24001 (at Bromine Compounds using economically viable, state-of- The compliance programs are determination is not final, and the Ltd); As a company that operates in the the-art technologies. presented to ICL managers and Company and the government of chemical industry, ICL is required to employees on an ongoing basis. The Packaging Law and the PRTR Law Catalonia have filed an appeal in comply with a series of regulations In some cases, there is periodic took effect only recently. These focus the Spanish Supreme Court. and laws that apply to the entire assessment by external and internal on demands for greater transparency life cycle of the product, both entities to ensure the programs are and reporting on the industry’s in the countries where they are For detailed information about the Company’s being implemented. An officer is in impact on the environment. In recent manufactured and in the countries involvement in Legal Proceedings, see ICL 2014 charge of each program, and the years, ICL has voluntarily invested in Annual Report, “Part I. Item 8. Financial Information, where they are sold. Board of Directors of ICL and each ICL efforts to streamline its processes A. Consolidated Statements and Other Financial Information, Legal Proceedings” (pages 192-198). Segment receive reports regarding These include: laws to protect for collecting environmental data. As Available on the Company’s website: the implementation of the programs employees and the public; a result, the Company is now better www.icl-group.com/investors/reports/ throughout the Company. On June manufacturing regulations; standards prepared to implement reporting financialreports/Pages/defaults.aspx 4, 2013, Heather Luther, Esq., was for classification; labeling guidelines procedures as required by law. appointed ICL Chief Compliance for use and transportation; Officer to oversee enforcement in ICL packaging regulations; rules for companies. supplying material safety data sheets

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Chapter 2: Corporate Governance & Economic Responsibility

Organizational and Business Culture

The Company’s culture is the foundation on which it operates. The Code of Ethics Core Values and Overarching Principle Values such as quality and excellence, health and safety, environmental protection, fairness, transparency, accountability, mutual respect, trust and honesty – are rooted in ICL’s core business and facilitate sustainable prosperity and growth. Adoption Compliance with the law Commitment to safety of such values is a key element in realizing the organization’s mission and is itself a ICL is committed to complying We are committed to protecting the strategy for improving organizational effectiveness and managing change. with laws, regulations, professional health and safety of all the people The organizational culture is implemented continuously through personal example, guidelines, procedures and who play a part in our operations or explanation, enforcement, and training.practices, antitrust, safety and health, enforcement plans in order to serve live in the communities in which we the interests of the Company and its operate. employees in the best possible way. Code of Ethics Commitment to the Fairness in business environment

We will be honest and fair in all our We will conduct our business with environmental protection, and a Goal: Expose all Employees to the Code of Ethics – Achieved safe working environment. business dealings. respect and care for both the local All employees have received the ICL Code of Ethics, and can find it on the ICL and global environment. ICL’s Code of Ethics incorporates Internet site the core values of the Company Responsibility ICL’s Code of Ethics is available in 18 languages and distributed at all ICL and establishes appropriate ethical companies around the world. We will take full responsibility for our guidelines for employees at all actions and performance. levels and positions. Fairness in business The Code is global, uniform Measures taken to assimilate and steadily implement values embodied by the and serves as a framework and Code of Ethics: Excellence and constant the foundation for compliance improvement Appoint enforcement trustees for employees based in Israel Respect programs currently in effect with We will always strive to be the best. towards Responsibility respect to securities, restrictive Establish internal procedures We will encourage everyone who others trade practices, anti-bribery & Establish Compliance Committees designed to focus on the realization of an works with us to excel and deliver the corruption ethical culture consistent with the values stated in the Code of Ethics highest quality. We are demanding Compliance of ourselves and others, and remain with the law Use ICL’s intranet as a work tool for all of ICL’s companies’ ethics committees open to constructive criticism and In August 2011, ICL Assimilate, through employee training, including periodic training, training suggestions for improvement. Excellence approved and published Commitment conducted via computer learning for specific populations, a combination of to safety and constant a revised global Code of training and discussion of ethical dilemmas in professional courses, and strive to improvement Ethics. In preparation for its expose all employees to the Code of Ethics Respect towards others listing on the New York Stock Commitment We will treat everyone with courtesy Exchange, in 2014, the Code Initiate discussions about ethical dilemmas in semi-annual focus groups and to the and respect, valuing different of Ethics was once again quarterly meetings on the subject environment opinions, and embracing diversity, slightly updated. Publish ethical dilemmas in a bulletin distributed to Company employees (and caring about people’s well-being, and make it available to those who do not have access to computers) respecting the balance of life outside work.

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Chapter 2: Corporate Governance & Economic Responsibility

Protection of Business Human Rights Conduct

ICL is committed to the protection of human rights Financial Integrity The Gift & Entertainment Policy entities suspected of being on and is therefore careful to maintain the dignity ICL’s financial records are maintained according to applies to all ICL employees wherever one of the above lists. All ICL and rights of its employees, their families, the local applicable local and international laws, standards and located and has been widely transactions around the world communities in which it operates and all persons with generally accepted accounting principles. distributed. As part of the roll out of are monitored by this new trade whom it comes in contact. this policy and to train employees, program. Anti-Bribery & Anti-Corruption ICL has provided a short video and Means of Human Rights Protection The Company educates its ICL respects its relationships with governmental and infographic about this concept to all employees on “red flags” which The Company supports human rights as defined official authorities, and complies with all the laws, employees who have internet/email assist employees with identifying in the United Nation’s Universal Declaration of regulations and standards applicable to its operations. access. Trade Compliance and potential high risks in their Human Rights. ICL does not tolerate any kind of improper influence the Prevention of Bribery, The Company’s Code of Ethics clearly transactions. on decision makers, including but not limited to offers The Company prevents violations of human rights Corruption and Fraud asserts the obligation to refrain of bribery or any other illegal activity, either directly or ICL performs operation assessment as defined by the laws of each country and site from corruption and bans giving or indirectly. ICL uses internal guidance and contractual Integrity, fairness and prevention of for risks related to corruption. where it operates. accepting bribes. requirements to ensure that its employees and agents bribery and corruption are central Through assessing the general risk for The Company initiates and participates in do not engage in bribery or corruption in any form. values in ICL’s organizational culture. In December 2014, ICL launched a the entire company as a whole, the constant dialogue with communities and other ICL does not resort to illegal methods Fraud Prevention Program that seeks following significant risks related to stakeholders, in order to identify potential risks for Antitrust & Competition to obtain and retain customers, to prevent various types of fraud at corruption were identified: human rights violations and minimize any adverse ICL, in accordance with ICL’s Code of ICL is dedicated to ethical, fair and vigorous suppliers, business, permits, licenses Employees interfacing with effects. For further details, please see the section Ethics. competition. ICL follows antitrust and competition or concessions. ICL will not tolerate government agencies at on Transparency and Dialogue with Stakeholders. rules and does not accept improper conduct or or participate in bribery, corruption, In addition, ICL has several control Company’s sites in their role The Company adheres to its Guiding Principles agreements with customers, suppliers, competitors or fraud or any other kind of unethical mechanisms to minimize regulatory for the Company (permitting, for protection of employee’s basic human rights, others. Amongst others price fixing, market allocation, business behavior. risks and prevent corruption (e.g. inspections, product registration, which includes support for equal rights and bid rigging and refusal to deal are absolutely The Company establishes compliance prevention of money laundering, etc.). prevention of forced employment, child labor and prohibited. financing terrorism and providing or policies and programs which are Employees contracting with discrimination. For further details please see the receiving bribes): characterized by a high standard of government agencies for the sale section on employment. Compliance Training caution, adopting the heightened As part of its Trade Program, of Company products. ICL trains its employees regularly about legal and The Company contributes to the economies European and American standards for it has implemented a control regulatory requirements and ICL policies including the Employees attempting to gain and communities in which it operates and these issues. mechanism for the prevention Code of Ethics and the employee’s responsibility to act sales with customers (other than consequently, helps to uphold human rights of financing of terrorism and in an ethical manner. In February 2014, the Board of government officials) through (indirect means). compliance with international Directors of ICL approved two new corrupt practices. commercial law – a global Reporting compliance programs: a plan to computerized process which Agents hired by ICL to act on ICL's To address fraud, abuse and misconduct in the prevent bribery and corruption, Relatively Low Level of Exposure to scans all of the Company’s behalf with respect to 1-3 above. Human Rights Violations workplace, ICL provides a formal and confidential including anti-money laundering. potential transactions in order In 2015, procedures will be reporting system for its employees. ICL is implementing a global Gift ICL’s standard of commitment to the protection of to check the identity of potential implemented to ensure proper and Entertainment Policy, effective human rights applies in all regions and areas of its customers and vendors against controls are in place related to ICL’s Trade from 2014. The Policy requires all activity, including the Company’s production and the sanctions lists of the US, engagement of high risk third parties. To prevent the financing of terrorism and ensure employees to obtain prior approval logistics operations in China and Brazil. Europe, the UN and others. The compliance with global trade laws, ICL has procedures for gifts and entertainment for higher system issues warnings and can All active mining sites are located in developed in place to review all of the Company’s potential value items and that which involves even block a transaction with countries where there is a low risk of human rights transactions and the identity of its potential government officials. violations. customers against sanctions lists of the US, Europe, the UN and others.

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Chapter 2: Corporate Governance & Economic Responsibility

ICL’s Impact on State Economies Two Case Studies WHAT IS ICL TO ISRAEL? To promote sustainable ICL’s Impact on The Israeli development, ICL leverages its resources and assets to Economy* enhance economic growth in areas in which it has As one of the three most important companies in Israel, ICL’s contribution to extensive activities. This the public interest is reflected in a range of aspects: every year, ICL invests huge enables the Company to amounts in developing the industry. ICL is an outstanding exporter which derives 5,000 be a leader in providing 95% of its revenues from exports. In so doing, it helps the State’s balance of employment opportunities payments, ensures the livelihood of some 30,000 families across Israel and serves EMPLOYEES to local residents and as the economic backbone of the Negev. ICL invests some $390 million in Israel thereby improve the every year on top of its extensive ongoing operations. Together, these investments quality of life in those help expand the economic activity in Israel and boost its growth. communities. The first part of the report ICL is the largest employer in the Negev, GENERATOR OF OVER addresses ICL’s influence directly responsible for the livelihood of on two state economies: 5,000 families in that region and 30,000 Israel and Spain, in terms families across Israel. of gross domestic product (GDP) and employment opportunities. These two ICL’s contribution to Israel’s GDP totals $3 30,000 cases demonstrate the billion annually (of which approx. $2.8 Company’s contribution billion is in the Negev). JOBS to the quality of life in ICL accounts for 20% of the economic activity countries where it has in the Negev, more than any other company. extensive operations. It also demonstrates the ICL is one of the three largest exporters connection between the in Israel and is responsible for 6% of total % communities where the exports from Israel (excluding diamonds). This adds up to a significant contribution to Israel’s 1 Company operates, and the Company’s employees, a balance of payments. For example, ICL’s contribution is higher than the total exports of OF ISRAEL TOTAL large percentage of whom both the agricultural and textile sectors. live in, and are part of, (Source: Israel Export Institute, 2014). WORKFORCE these communities.

* Based on a study performed by Dr. Mosi Rosenbaum, Dr. Daniel Freeman and Dr. Miki Malul of Ben Gurion University: 'The scope of ICL’s economic influence on the Israeli economy as a whole, as well as on the Beer Sheva area, in particular'.

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Chapter 2: Corporate Governance & Economic Responsibility

ICL’s Impact on The Negev WHAT IS ICL TO THE NEGEV?

ICL is responsible for approx. $2.8 billion of the South’s ECONOMY

ICL contributes

ICLs’ impact on the economy and continued growth. In addition, the The contribution of ICL plants in south % quality of life in the Negev is far impact of ICL’s work and investment Israel amounts to 19% of the GDP of 20 reaching. As the provider of some in the Negev (approx. 20% of the the Beer Sheba district and to 1.5% of 30,000 families, most of them from economic activity in the Negev) the GDP of Israel (2012 figures. ICL’s to the economic the Negev, ICL is responsible for one influences all the communities of contribution to the GDP is $3.0 billion fifth of the Negev’s economic activity the eastern Negev in multiple areas, a year, of which approx. $2.8 billion in (worth approx. $2.8 billion) , and including small industrial enterprises, the Negev). activity in the Negev the Company is vital for the economic privately-owned businesses, commerce, In addition to impacting the Negev’s soundness of this region and for its welfare, education and culture. economy, ICL helps the development of tourism to the Dead Sea, enabling the creation of thousands of additional Stakeholder Q&A jobs. Without ICL’s work, the southern ICL Invests Scan QR code or press the QR code to basin of the Dead Sea would have read Q&A concerning ICL’s impact on the dried out completely, inflicting a deadly Negev (currently available in Hebrew). blow on the region (see elaboration in the “Sustainable Management of Mining Operations in the Dead Sea” section, further in this report). $200 million A year in the Negev

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Chapter 2: Corporate Governance & Economic Responsibility

ICL’s Impact on The State Revenues

The Israeli government’s take in Israel which are also active The committee recommended out of ICL revenues is one of the in the periphery and channel imposing a progressive tax highest rates in the world paid on most of their product for export at a rate to be determined WHAT IS ICL TO ISRAEL? the production and sale of potash. continue to pay a reduced tax in accordance with the level ‘Government take’ refers to the total rate of 9%, the rate imposed of the yield on the remaining payment the State receives as a on ICL’s earnings will amount depreciated cost of the fixed result of the Company’s operations, to as much as 26.5% over the property used in the production including taxes, royalties and next few years (excluding two and sale of the mineral in that additional amounts. ICL subsidiaries that qualify as year. The first tax bracket for the ICL CURRENTLY INVESTS ‘Preferred Enterprises’ and will natural resource tax will be 25% As a result of various measures taken continuing paying the 9% tax with respect to a Yield on the by Israel’s government (exclusion rate). Depreciated Cost between 14% NIS from the Law for the Encouragement NIS 2 BILLION IN ISRAEL ANNUALY and 20%, and the second tax of Capital Investment, funding of the 2. The “Salt Harvest” agreement bracket will be 42% with respect national project for rescuing Dead and doubling of royalties: in to a Yield on the Depreciated Sea Hotels, increase of royalties 2012, as part of the agreement Cost over 20%. In addition to this and royalties on industrial products, between the State and Dead Sea progressive tax, the Committee natural resources taxation, and the Works, ICL was forced to finance recommended imposing a recommendations of the Sheshinsky the lion’s share of the project to uniform royalty of 5% on all Committee II), the government rescue the hotels on the Dead NIS 1.5 BILLION IS INVESTED natural resources as of 2016 take from ICL earnings from the Sea whose total cost amounts to (excluding ICL’s subsidiary, Dead production of potash at the Dead Sea $1.8 billion until the expiry of its Sea Works, for which the uniform IN INFRASTRUCTURE will reach 46%-55%. In recent years, franchise in 2030 (see elaboration royalty will be imposed as of ICL has paid approx. $260 million in the “Sustainable Management 2017). As a result, ICL is expected every year and is expected to pay of Mining Operations in the REPLACEMENT to pay another $103 million a another $386 million a year as a result Dead Sea” section, further in this year, or a total of $1.3 billion until of the government’s decisions. report). the end of its franchise. DIKES, POWER PLANT, PUMPS AND The Government Take (GT) of ICL in 3. Under the same agreement, 2014 was approx. $291 million (from the royalties on potash mining which the amount of approx. $149 was doubled from 5% to 10% of ENVIRONMENTAL INSTALLATIONS million in respect of royalties for prior the revenues obtained for any periods). quantity of potash that ICL sells every year above 1.5 million tons These are the steps taken by the as of 2012. government to increase the State take from ICL from now until the 4. In November 2014, the economic end of the ICL franchise in 2030: social cabinet adopted the recommendations of Sheshinski Stakeholder Q&A 1. Amending the Law for the Committee II which reviewed Encouragement of Capital Scan QR code or press the QR the State’s take from natural code to read Q&A concerning NIS 1.04 Investment: in 2011, the State resources. According to these excluded the mining and ICL’s impact on the State * recommendations, the tax mix quarrying operations from the revenues (currently available on natural resources in Israel in Hebrew). scope of the capital investment BILLION will consist of three elements: encouragement law, thus royalties, a tax on natural increasing tax revenues collected ICL’S GOVERNMENT TAKE FOR 2014 resources and corporate tax. from ICL. While many companies

* $291 miliion - based on 2014 Annual Average Exchange Rates (Source: Bank of Israel)

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Chapter 2: Corporate Governance & Economic Responsibility

ICL’s Impact on The ICL’s Impact on The Public ICL’s Impact on The Spanish Economy Balance of Payments Saving

As one of the three largest exporters in The public is the largest shareholder of ICL. In fact, most Israeli ICL Iberia, a business unit of ICL delineated ICL Iberia’s contribution ICL expenditures and investments Israel, ICL is responsible for 6% of total citizens have a direct and indirect share in ICL through their Fertilizers, is a producer and supplier to the Spanish Economy at three generated an additional € 146 million exports from Israel (excluding diamonds). pension and provident fund savings plans as well as other saving of potash fertilizers for agriculture and distinct levels. for Spain’s GDP, which constitutes The export value of the Company’s products and investment channels. As one of the strongest pillars of the industry uses. The potash is produced 0.015% of GDP. was approx. $2.65 billion in 2014, helping Tel Aviv Stock Exchange, ICL shares are an anchor in many stock from its two mines in Catalonia, Additional economic impact – both Israel’s balance of payment and reducing portfolios and the trading volume of its shares is one of the Spain – Súria & Sallent. ICL’s Impact on wages and salaries paid by ICL Iberia the State’s trade deficit. ICL’s contribution highest in Israel. Over the past decade, all Israeli citizens have ICL Iberia is the economic engine of Spain’s GDP increased consumption of goods and is higher than the total exports of both the had a share of ICL profits. Over the years, the Israeli public has the County of Bages (where ICL Iberia services which had a subsequent agricultural and textile sectors. earned tens of billions of shekels by investing in ICL shares. Direct economic impact - 40% headquarters is located, 60 kilometers impact on the economy totaling of ICL’s direct economic impact, from Barcelona). It is a leading € 19 million. equaling € 111 million, is generated company in terms of revenues, directly by the company itself, presenting one of the largest primarily through corporate profits turnovers of the 2,700 companies that and employee salaries and wages. operate in Bages. In addition, through its two mines, ICL Iberia provides work The Company’s economic impact for over 1,270 people. constitutes 0.011 % of Spain’s GDP and 11% of the value added In order to maximize its positive by the nonmetallic mineral impact, ICL initiated a study to extraction sector. measure ICL Iberia’s contribution to Spain’s GDP and employment rate. Indirect economic impact - In The study, performed by the world 2014 ICL Iberia bought products WHAT IS ICL TO ISRAEL? renown professional services network, and services from more than 132 Price Waterhouse Coopers (PwC), suppliers and made investments used a robust, internationally proven, in Spain worth more than €66 billion THE PUBLIC HOLDS ICL’S STOCK CONSTITUTES input-output methodology and in 2014. % % 70 7 ICL Iberia’s contribution of ICL OF THE TEL AVIV 25 INDEX to the Spanish economy equaled 35% 35% HELD BY FOREIGN HELD LOCALLY a year, INVESTORS € 276 million which constitute 0.03% of Spanish GDP.

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Chapter 2: Corporate Governance & Economic Responsibility

ICL’s Contribution to Spain’s GDP in 2014 ICL’s Contribution to Spain’s employment rate in 2014

Additional economic impact Additional impact on employment Direct impact Direct impact Indirect impact 7% Indirect impact 9%

Number of % in FTE Type of impact M € % in GDP Type of impact 19% Jobs Employment Direct impact 111 0.011% 53% 40% Direct impact 765 0.005% Indirect impact 146 0.015% Indirect impact 2,927 0.018% 72%

Additional economic Additional impact 19 0.002% 383 0.002% impact on employment

TOTAL 276 0.029% TOTAL 4,075 0.025%

ICL’s impact on the employment rate in Spain Impact on Local Level

Impact on State Level Workers employed directly by ICL Iberia External workers (contractors/ providers)

In 2014, ICL Iberia generated 4,075 full-time positions (FTP), which accounts to 0.025% of full-time employees (FTE) in Spain. ICL Iberia accounts for 28% of all +12% In addition to the 765 workers employed directly, ICL Iberia is responsible for the creation of over 3,300 additional jobs in employment in the towns where it Spain - around 2,900 jobs are generated through the activity of the company’s suppliers which include 840 direct contractors; operates - Suria, Balsareny and Sallent, 1,516 and around 400 jobs are a result of increased consumption from ICL and contractor employees. Therefore, every job in ICL 1,508 1,396 and 69% of employment in the mining Iberia creates an additional 5.3 jobs in the Spanish economy. 1,300 and chemical industries in Bages County (two industries which are known to 1 + 3.8 + 0.5 = 5.3 provide high added value and employ professionals with high rating).

98% of the company’s employees were born in the three county’s surrounding the company’s facilities (Bages, Berguedà, Solsonès). 2011 2012 2013 2014 2015 2016 2017

Since 2011, there has been a constant Worker Jobs created Jobs created Total jobs created increase in the number of employees ICL employed through the as a result through the direct Iberia employs and the company plans to directly by ICL activity of ICL of increased employment of a continue this trend in the coming years Iberia Iberia’s suppliers consumption single ICL Iberia by adding staff and contractors to its worker operations.

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Chapter 2: Corporate Governance & Economic Responsibility

ICL’s impact on municipal revenues

ICL Iberia’s total payments to municipalities due to taxes, royalties and licenses, increased by 18% during the 2011-2013 period and are a source of recurring revenues for local governments.

During the 2011-2014 period, the tax grew by 15% in the municipalities of Suria, Sallent and Balsareny:

Municipality Total taxes 2011-2014

Town of Súria € 2.333.323

Town of Sallent € 1.097.614

Town of Balsareny € 320.271

ICL’s impact on the balance of payments

The export value of ICL Iberia’s products is € 193 million (for 2014) and constitutes 0.32% of exports in Catalan and 27% of export value of the non-metallic mineral mining Sector in Spain.

Export value of products - 2014 (€ Million) 193

ICL Iberia Others in the non-metallic mineral mining Sector in Spain

518

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Chapter Three Environmental Responsibility

w Materia Ra ls ICL’s Activity tation & L or og p is s t n ic Throughout a s r T the Lifecycle: d Marke En ts

& ture Pro c du fa c u t n io a n

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Chapter 3: Environmental Responsibility

Environmental Policy

ICL prides itself on being a skilled, and permit requirements. As part as a policy, initiatives that address responsible company that strives of this commitment, the Company its various environmental impacts, in In 2014, senior executives of ICL companies undertook a sustainability workshop led by the to minimize its environmental ensures that the required resources, the following fields. Each initiative is Heschel Center for Sustainability. The workshop dealt with development trends in the Negev impact wherever it operates. The procedures and controls, training further detailed in this section. (Southern Israel, where ICL's largest facilities are located), sustainability and business, the Company meets its environmental programs, and responsibilities are Responsible use of land and potential for developing “Green“ industry in the Negev using innovative models, energy use responsibilities in a manner that in place to achieve the required natural resources. demonstrates its commitment environmental performance. The at ICL, working with environmental organizations, cooperation with the public and other to industry-wide leadership and Company routinely monitors its Conservation of biodiversity and related topics. accordingly, it has established an performance to verify compliance restoration and preservation of environmental policy that sets high with performance standards and mining regions. standards for performance. regulatory requirements and reports Reduction, at the source (in terms them in a transparent manner. The Company manufactures products of the flow) of the quantity of on four continents and markets them As an international chemical company effluents and waste produced to thousands of customers in more with a range of activities that cover by ICL companies and increased than 180 countries, meeting the all stages of the product life cycle, recycling of treatable waste. evolving needs of millions of people from the production of raw materials Increased energy efficiency and around the globe. To accomplish through their final use in end markets, transition to natural gas. Merquel® Aquatabs™ Salona™ this, ICL is required to use various ICL considers, develops and maintains Reduction of air pollution. A line of products that A world renowned brand in Low sodium sea salt product natural resources such as raw within its projects plans and designs, prevents mercury emissions effervescent tablets for water that can be used in many food materials, energy, and water. Some the requirement for environmental Reduction of greenhouse gas into the air. disinfection Aquatabs is present applications to replace up to of its products are potentially harmful protection at all stages of activity, i.e. emissions and the Company’s in over 15 countries worldwide. 50% of sodium chloride and as a Scan QR code or press the to the environment and the health “Product Stewardship”. carbon footprint. Major NGOs prefer Aquatabs for full replacement for potassium QR code to watch the video. and safety of the public as a result disaster relief measures across the chloride. This product delivers The Company’s environmental Development of sustainable, of the effluents, air emissions and world. acceptable flavor in diverse food policy takes a proactive approach value-added processes and products. waste that are generated during Scan the QR code or press the characterized by voluntary products aimed at reducing their production. These substances QR code to watch the video. Scan QR code or press the adoption of advanced international environmental impact. can cause pollution that necessitates QR code to watch the video. environmental management remediation, clean up or other principles and programs, e.g. preventive or responsive actions. participation in the “Responsible In addition, some of the Company’s Care” program administered by the products may be hazardous to those International Council for Chemicals who are exposed to them during their Associations (ICCA) and founded on production, transportation, storage Stakeholder Q&A principles of Product Stewardship. or use. Consequently, some of ICL’s It also participates in the VECAP Scan QR code or or press the operations and products are subject QR code to read Q&A concerning ICL’s program for the flame retardants to environmental, health and safety environmental impacts (currently industry. regulations. available in Hebrew). ICL promotes an ongoing, honest First and foremost, ICL operates dialogue with its stakeholders to with a clear commitment to full define environmental priorities and compliance at all times with corporate implements, on a regular basis and standards, applicable laws, regulations

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Chapter 3: Environmental Responsibility

Investments and Expenses Sustainability for Product Lifecycle

ICL routinely invests in ICL’s activities cover the entire value The Responsible Care program The Company applies the principles environmental protection as well as chain and it is committed, at every is the global chemical industry’s of Responsible Care throughout health and safety projects for which stage, to reducing the impact of flagship program and is administered the product life cycle (Product it bears significant costs. its activities on the environment, by the International Council for Stewardship). In this framework, today and for the benefit of future Chemicals Associations (ICCA), ICL undertakes several on-going 79 81 generations. For this reason, ICL has in which associations from 55 activities, including among others: 88 incorporated sustainable practices countries are members, including the the identification of environmental Total Expenses and Investments in 80 Environmental Protection 85 and principles into the core of its Manufacturers Association of Israel. impacts and health concerns when In USD millions 47 61 activities. using raw materials and when 43 All ICL segments have adopted the developing products; operation of principles of Responsible Care. In Current Expenses efficient and safe production systems; 47 ® October 2008, ICL’s CEO signed a Capital Investment Responsible Care appropriate package marking that commitment to the principles of the 42 Responsible Care is the chemical complies with the law and meet 28 Responsible Care Global Charter consumers’ needs; marketing and industry’s global voluntary initiative of the ICCA. The principles include sales that include training programs; 18 21 23 52 49 38 39 58 44 27 54 under which companies, through product stewardship, responsibility provision of informative guides to 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 their national associations, work for environmental risk management products and technical support for Estimation to continuously improve their along the supply chain, increased customers. health, safety and environmental transparency along the supply performance, and their chain, contribution to sustainable communication with stakeholders development, increased dialogue with about their products and processes. stakeholders, third-party validation and more.

Total Expenses and Investments in Environmental Protection Breakdown by segment Foundation of Responsible Care in ICL 10% Total $112 Millions 9% Product Stewardship Industrial Products Fertillizers Performance Products Other 43% Reduction of greenhouse Community awareness gases (GHG), savings and accountability and Regulatory issues clean energy emergency preparedness

38% Ecology and Occupational Quality and Security Safety recycling hygiene excellence

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Chapter 3: Environmental Responsibility

Voluntary Emissions Control Action Program (VECAP)

VECAP is a globally recognized Achievements in the Asia Pacific region where its The following figure illustrates the product stewardship program sales volumes are the largest. During effectiveness of the program in In 2014, VECAP participation in designed to reduce the 2014, in addition to China, Japan, Europe. The potential emissions for Europe for the four common flame environmental emissions of flame and Singapore, new countries were ICL-IP sales of the three products retardants included in the program retardants. The program operates included like Malaysia, and Taiwan. were calculated each year and ranged from 58%-98% of the under the principles of Responsible compared to the baseline potential products’ total sales by the three Following the success of the program Care®. emissions in 2009. The reduction participating companies, and 81% – for common BFRs, ICL-IP decided to in the total emissions of the 3 BFRs VECAP was established 10 years ago 98% if Deca is not included (Deca was extend the program to include all between 2009 and 2014 was 98.3%. by the Company’s Industrial Products phased-out in 2013 by Albemarle and BFRs sold by the Company. ICL-IP’s This significant reduction in emissions segment along with two other Chemtura in Europe). total sales volume of BFRs included in is mainly due to the implementation major flame retardant producers – the program increased from 61% in The program was extended to North of best practices for empty packaging Albemarle and Chemtura. In Europe, 2013 to 65% in 2014. In Europe, the America and, recently, to the Asia of the BFRs users. the program is administered by coverage for all BFRs in 2014 reached Pacific region and Middle East, after the European Flame Retardants 85%. In North America it decreased it was shown to be very successful Association (EFRA). slightly to 53% mainly due to the in Europe. ICL-IP is focusing on the phase out of Deca. Currently, VECAP includes four main implementation of the program brominated flame retardants (BFRs), Deca-BDE, TBBPA, EBP, and HBCD.

The program demonstrates the industry’s, and specifically, ICL’s, commitment to the environmentally Summarized emissions of Deca, Over the years, VECAP has evolved As a result of this program, ICL sound management of BFR. VECAP HBCD and TBBA in Europe operates according to the following from its original concept, as a tool to customers using flame retardants in Relative emission principles: control emissions during handling and the manufacture of their end products, now review their production processes, Increasing understanding of use of brominated flame retardants, quantify the loss of material using a chemicals management in the into a system for more efficient mass balance model, diagnose the 100% value chain; management of chemicals which can be applied to a much wider range of reason for the loss and the destination Promoting and facilitating open processes and raw materials. of the emissions (into air, water or soil), and constructive dialogue with and prepare an improvement plan to all interested parties, such as The program has received recognition prevent environmental emissions in the industry, regulators and other from external stakeholders as a future. stakeholders; successful, sustainable approach to Since 2009, VECAP certification is 28.3% Raising awareness among all safe handling of chemicals. In the given by an independent third-party 15.7% those involved in the process, past decade more and more users in 8.4% 6.8% auditor. There are currently 11 VECAP 1.7% from site personnel to company Europe and worldwide have adopted it. certified manufacturing and user sites top management; 2009 2010 2011 2012 2013 2014 Over the years, ICL has secured worldwide, including all the brominated VECAP is proven as a successful emission Applying and promoting best commitments from customers, BFR manufacturing plants of the three reduction tool and ICL-IP expects additional practices identified through the primarily small and medium-sized originators of the program (including customers to join in the coming years. program. enterprises (SMEs) in the plastics and ICL-IP plants in Israel, Holland and textiles industries, to join the program. China).

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Chapter 3: Environmental Responsibility

The Company performs assessments, conservation, research, and development Product Stewardship of unique flora and fauna. It also supports protected area site-management programs, and proactive community programs, to provide sustainable economic and social benefits even after mine closure. on the Ground Recently, ICL began the process of developing principles for biodiversity management, with the aim of addressing stakeholders’ demands. The process includes the following steps: Product stewardship, that is the responsibility for minimizing the product’s environmental impact throughout all stages 1. Conducting an international benchmark survey to evaluate the position of of the products’ life cycle, is central to responsible action by the chemical industry, and as such, it is an important pillar of biodiversity conservation organizations, including the Ministry of Environmental Responsible Care®. Protection, the Nature Protection Society and the Nature and Parks Authority. Product stewardship is an inherent part of the Company’s behavior and applies to all activities throughout all stages of 2. Conducting an internal survey of the Company’s major sites, where 80% of its a product’s life, from extraction of material through the end of product life. In order to allow flow of information up and mining activities are located, to evaluate the Company’s existing biodiversity down the value chain and to ensure that chemicals are used and managed safely throughout their life-cycle, ICL maintains awareness and how the management of its sites in Israel, and large sites a close, sustained dialogue and working relationships with its suppliers, customers and others in its value chains. abroad, is performed. This Section of the report seeks to demonstrate the means ICL takes in order to maintain Product stewardship 3. Participation by managers in biodiversity training and presentation of throughout the six stages of a product’s life cycle: biodiversity considerations at ICL’s Forum of Excellence in Ecology. In 2015, ICL Rotem won second place 4. Engaging with academic institutes that have interest and knowledge on the in the 2015 Green Leaf award, a bi- matter. annual competition arranged by the International Fertilizer Association 5. Preparing guidelines for biodiversity management at ICL. Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 (“IFA”). Materials Product Production & Logistic & Product Use End of product 6. Establishing a Biodiversity Center of Excellence. The Green Leaf award was Extraction Development Operation Distribution Stage life The Biodiversity Center of Excellence’s work has focused to date on mine established to promote and restoration. The considerable size of the disturbed area makes restoration a difficult recognize extraordinary activity task. However, ICL has accumulated great experience in restoration practices, thus and innovation in sustainability allowing the Company to achieve high-quality results despite the complexities. Stage throughout the global fertilizers industry.

Key Issues to be included in ICL’s Biodiversity Management Principles ICL Rotem was awarded second place (first runner-up) out of 25 Plan for all stages of ICL’s activities from planning, mining and production Materials Extraction applications from global fertilizers 1: through use and end of product life. Prepare a biodiversity survey at the companies due to its extensive and planning stage for all new projects at ICL. ICL extracts raw materials, mainly potash and bromine, thanks to exclusive concessions and licenses from the State of innovative activity in the reclamation Israel for extraction of minerals from the Dead Sea, and for mining potash and salt under permits from local governments Use land under ICL management in a responsible manner. of phosphate mines, which has been significantly upgraded and developed in the United Kingdom and Spain. The Company also has access to phosphate rock in the Negev Desert based on mining Identify and implement solutions, and technological means, for biodiversity since 2009. concessions from the State of Israel. Access to these assets provides ICL with a consistent, reliable supply of raw materials, conservation. which are then manufactured into products that fulfill essential needs of the world’s growing population in the agriculture, In addition, one of the preliminary Prepare a best practice manual for biodiversity management at the corporate food and engineered materials markets. conditions for achieving second place level. Mining is an extractive industry, and by its very nature it can have significant direct and secondary environmental and social was conducting an external auditing Commit to preserving indigenous and endangered species. impacts. ICL recognizes that its mining operation requires vigilance to ensure that the heritage of future generations – process for responsible product biological as well as cultural – is not adversely affected by today’s activities. Cooperate with stakeholders, and develop local and strategic partnerships, to stewardship of the company’s promote the issue. products- a process which ICL ICL’s environmental management system includes measures intended to conserve nature and protect biodiversity and Rotem completed with the highest the Company is careful to consider environmental factors when using the land and managing its operations, particularly in Allocate resources and knowledge to build organizational capacity and excellence mark in recent years. ecologically sensitive areas and areas with unique cultural value. processes to implement biodiversity policy.

ICL pursues various opportunities to enhance its contributions to biodiversity conservation. This includes restoration, a Control the Company’s implementation of the policy effectively. standard consistent with liability that acknowledges the responsibility of a mining company to maintain the ongoing wellbeing – Track developments, monitor biodiversity performance, and strive to develop cultural and environmental – of the site during mining as well as to restore the site after mining has ceased. effective parameters in the next few years

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Chapter 3: Environmental Responsibility

Below is information related to the Material Extraction Stage in ICL’s operations, presented in line with Habitat protected and restored: the GRI G4 Guidelines G4-EN11 to G4-EN14, including MM1 Mining & Metal Sector Specific Indicator. Name of Size of Location of Success of the Status of area Partnering Standards and Additional information is presented throughout this section. habitat habitat habitat restoration based with third methodologies measure on its condition parties to used in matters The collection process of the information is fairly complex and ICL is constantly reviewing it in order to approved by at the end of 2014 protect or of habitat provide complete data in the future. independent restore protected external habitat areas and restored professionals

Wildflower 3000 m2 On site grassland Yes Enhanced habitat for species Have only done Use external Meadow paddocks, U.K. such as bumble bee, butterfly restoration in advice from and hover fly conjuction with a qualified third party expert. personnel

Woodland 0.42 Ha Woodland owned Yes Enhanced nesting areas for Boxes constructed ICL operational sites in or adjacent to protected areas and areas of high biodiversity value: Nest Boxes by ICL U.K. birds and bats and installed by an employee with Site Name Geographic Land that may Position in Type of Size of The attribute Listing of advice from a third party expert location of site be owned, relation to operation operational of the area protected leased, or area site status *Biodiversity 0.42 Ha Woodland owned Yes Each year surveys take place managed by Action Plan by ICL U.K. and to record species. ICL U.K. has the organization some site areas some rare moth species, bats and some rare birds. None ICL U.K. NZ 76497 Planning Adjacent Extractive and 0.32 km2 terrestrial Natural England of these are red listed. The 18233 Permission refining has designated area also contains habitat for shows a mineral various sections reptiles such as slow worm. lease boundary of surrounding Pla Santa 10 Ha Vilafruns Yes The habitat is restored. The restauration woodlands as Cecília into (Balsareny) was done by the Ancient Woodlands; Costa de environmental Part of the mining Pla de Calaf authorities. area is scheduled (restored Currently, ICL as a wetland Site habitat) is in charge of of Special Scientific the control and Interest (SSSI); maintenance. The National Park Authority has identified a number of designated conservation areas, Amount of land disturbed or rehabilitated: including moorland, woods and coastal Site name Total land disturbed Total amount of land Total amount of land newly Total land disturbed and habitats within the and not yet rehabilitated newly disturbed in 2014 rehabilitated in 2014 not yet rehabilitated mining area. There is a SSSI with ICL Iberia 155 Ha 155 Ha No land rehabilitated during the 145 Ha a designation of reporting period ancient fossils within 1/4 mile of the site. ICL Rotem, Zin Site 40 Ha topsoil is removed 20 Ha 55 Ha

ICL Iberia, Suria Suria 2km Production 0,58 Km2 terrestrial Serra de Castelltallat ICL Rotem, Rotem Site 55 Ha topsoil is removed 22 Ha 0 Plant (PEIN in Xarxa Natura ICL Rotem, Oron Site 39 Ha topsoil is removed 29 Ha 32 Ha 2000); Wet area Pla ICL Iberia, Suria 3km Extractive 0,056 Km2 terrestrial Reguant, into Serra Cabanasses de Castelltallat Mine

ICL Iberia, Pou Suria 1km Extractive 0,019 Km2 terrestrial There are no locations of habitats affected by ICL U.K. and ICL Iberia operations that include species on the IUCN Red List of IV Mine (inoperative) Threatened Species, and on national or regional conservation lists. The sites in Israel are yet to review the matter according ICL Rotem, Zin Zin, Negev 12 Ha to the GRI-G4 guidelines. site Desert The refining process at ICL U.K. site involves effluent disposal (mainly clay, silicates, salt and calcium sulphate) into the North ICL Rotem, Rorem, Negev Zero mining in nature reserves during 2014 Sea. The effect is a slight smothering effect of silt on the sea bed although it is proved through annual benthic studies that Rotem site Desert no species are harmed by this effect. ICL Rotem, Oron Oron, Negev site Desert

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Chapter 3: Environmental Responsibility

Sustainable Management of Mining Operations in the Dead Sea

ICL conducts its mining operations in Company’s evaporation ponds. Over Responsible Water the Dead Sea through its subsidiary, the years, two seemingly contradictory Usage Dead Sea Works (DSW). The extraction phenomena have occurred ICL is aware that its extraction of 1,657 million of minerals from the Dead Sea, simultaneously in the Dead Sea - the water contributes to the receding including potash, bromine, sodium, water level is receding in the Northern water level of the northern Dead Sea magnesia, magnesium chloride and Basin, while the water level of cubic meters of water are basin. At the same time, it is important metal magnesium, begins with an Company’s salt pond in the Southern to note that the recession’s primary evaporation process facilitated by the Area (known as Pond 5) is rising due cause is the policy of the Jordanian, hot and dry climate of the Dead Sea to salt accumulation on its floor and diverted from the Dead Sea Syrian and Israeli governments, which region. the continuous pumping of water. use a large portion of the fresh water DSW was granted a concession by This phenomena in turn, affects the from the Jordan River for household, each year, including: the Israeli government to use the area surrounding the Dead Sea, for agricultural and industrial needs, thus resources of the Dead Sea, and to example, as the level of the Dead preventing it's flow into the Dead Sea lease the land required for its plants Sea drops, its surface area shrinks, catchment area. Projects such as the in Sodom, for a period ending on sinkholes appear and courses of the National Water Carrier, the diversion Palestinian Authority March 31, 2030. This agreement streams that flow into the sea are of the Yarmouk River, the King Lebanon included the right to receive additional deepening (stream erosion). drinking water, drinking water, Abdullah Canal in Jordan and other 3 concessions after its expiration if the 3 3% 45 Million m projects claim more than 1,400 Million 1% 20 Million m ‎The Company is careful to ensure State is interested in continuing the proper measures are taken in relation m3 each year that would otherwise arrangement. jordan to this complex situation accruing flow into the Dead Sea. However, the potash plants, The Dead Sea, which is the lowest in the Dead Sea, and accordingly, water extraction actually prevents the israel 6% 100 Million m3 place on earth, is divided into two is investing major resources to decline of water levels in the southern drinking water, parts: the Northern Basin and the deal with it. These investments are basin of the Dead Sea, where the 36% 600 Million m3 Southern Area consisting of the described as follows: hotels are located. israel Over the past 20 years, the efficiency Dead Sea Works, of Dead Sea Works’ operations has 9% 150 Million m3 increased greatly. The net extraction of Dead Sea water has changed very In 2012, 2013 and 2014, icl, through Dead Dea little, even as potash production has risen. This improvement has resulted syria Works, paid royalties to The Israeli government in the reduction of the environmental impact of the Company’s potash drinking water, 3 in the amount of approximately production. 12% 200 Million m $125 million, $110 million, ICL is accountable for 9% of the total yearly decline of the Northern Basin’s and $84 million, respectively. water level, with the remainder of the jordan decline caused by the diversion of the drinking water, 33% 3 water from the Jordan River and other 560 Million m industrial water usage.

* Based on data provided by the Office for Environmental Protection and the Jerusalem Institute of Research, 2006 * The salt harvesting project is described in details in the ICL 2013 Corporate Responsibility report (pages 92-94).

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Chapter 3: Environmental Responsibility

The salt harvesting project Rehabilitation of amongst them restoration of some Mining Areas after of the damaged areas to the original is described in details in Mining is Completed – habitat, to the extent possible, and Projects Status restoration of other areas to a wet the ICL 2013 Corporate habitat. Responsibility report Of the development alternatives that Forming a Detailed Plan were proposed, ICL selected minimum (pages 92-94). for the Nahal Heimar development which allows hikers Estuary, South of the Dead to explore the area without causing Sea significant damage or disruption to 1 2 3 4 5 The project is expected to be Nahal Heimar is one of the largest the habitat. approved by Board of National creeks in the Judean desert. The Infrastructures in 2015. While waiting The proposed management creeks has interesting geological for approval, the Company is moving method for the development plan is formations and a large variety of forward with planning for the project. supervised by the Israel Nature and animals and plants, some of which are Parks Authority. rare. This master plan has been translated A dredge will crush The slurry will flow In the drainage area, The dry salt will be The barges will return the salt and pump in a floating pipe to a the salt will dry and the loaded onto a conveyor the salt to the sea. Restoration & Extensive earthworks were into a detailed plan which is currently it as slurry. drainage area near the solution will precipitate that will transport it to Rehabilitation of performed in the alluvial fan of being reviewed by the Local and Pond 5 dike. in the pond. the Dead Sea. Mining Sites - Planning Nahal Heimar (Nahal Lot and Nahal Regional Planning Committees. The for Reducing the Pratzim), including damming and objective is to turn it into a statutory Impact on Alluvial collecting flood water, regulating plan that will allow mining activity to report concluding that in principle it Sea-to-Sea Canal Salt Harvesting Project Material, Dead Sea and diverting flow channels, and operate in parallel to regulation and is feasible to establish such a canal The stabilization of the Dead Sea’s - Permanent Solution Works constructing protective dikes and restoration of the entire region. (although in a modular fashion to current water level and surface for the Rising Water mining operations. The work has also monitor the effects on the sea). Dead Sea Works is aware of the The schedule calls for approval of the Level in Pond 5 included an infrastructure system area requires an additional 800 environmental and ecological plan during 2016. million cubic meter flow of water Following the aforesaid report, Israel, Over the years, ICL has established sensitivity of the alluvial fans that that serves Dead Sea Works’ drilling (approximate) to the Northern Basin the Palestinian Authority and Jordan temporary defenses to protect hotels serve as a broad mining base for and pumping stations. Despite the signed an agreement in principle to per year. Over the years, the Israeli located at the Southern Dead Sea building materials (wadi material) for significant changes and extent of the Master Plan for Open implement stage A of the project, government examined several area from the rise of water level in its dikes, and is searching for ways to work (existing and planned), the Nahal Spaces at Sodom, Dead involving construction of a pipeline alternative scenarios for achieving Pond 5. On July 8, 2012, the Company avoid mining new alluvial fans, either Heimar estuary holds high potential Sea Works from the Red Sea. Recently, Israel and this flow, including the creation of a reached an agreement with the Israeli by mining in disturbed areas or by for nature preservation and for Jordan signed a detailed agreement The southern area of Dead Sea canal from the Mediterranean Sea to Government to enact a permanent environmental restoration during creating a system of hiking trails. triggering the first stage. Works’ onshore concession extends the Dead Sea, the creation of a canal solution, according to which, ICL will mining. Examples of such projects are When evaluating restoration options from in the north, to Metzok from the Red Sea to the Dead Sea, The targets underlying the World harvest all the salt from the floor the date plantation project for reversing past damage and Ha’atakim in the west, to Kikar Sodom and the increase of the flow of fresh Bank’s report on the construction of the pond. Upon completion of (described in details in ICL 2013 options to expand mining, DSW and south of the Arava junction in water to the Dead Sea by returning a of the canal are to aid countries in the salt harvesting, the process of Corporate Responsibility report) and created, alongside the Nature the south and to the Dead Sea to significant amount of the natural flow the region (particularly Jordan) with production of the raw material will no the master plan for the Nahal Heimar and National Parks Authority, a the east. This block covers 36,000 to the southern portion of the Jordan water for desalination, to stabilize longer require ICL to constantly raise estuary. In addition, the Salt Recovery comprehensive master plan for the hectares and is located within the River. the level of the Dead Sea and to the water level in the pond. Planning Project, described above, will make it entire area that references a range Judean Desert near the Dead Sea, contribute to regional peace. Such and execution of the salt harvest At the same time, the Jordanian possible to reduce the need for wadi of planning considerations. The extending to the industrial ponds in a canal would likely change the will be performed by ICL. The cost government initiated, together with construction material required by tens plan upholds mitigation of damage the Southern Basin. estimate for this project is several the Israeli government and the chemical composition of the Dead of millions of tonnes. to sensitive habitats and allows for Sea, which could negatively impact the billion NIS. This project is considered The area has unique scenic, Palestinian Authority, a feasibility the continued functioning of the production of ICL plants. an Israeli major national infrastructure geological, and historical qualities. study of a Red Sea- Dead Sea canal. ecological corridor. project that will be supported by Over the years, some of these unique This study was conducted by the the Israeli Committee for National In terms of restoration, integrated areas were disturbed by Dead Sea World Bank which drafted a detailed Infrastructures. restoration was chosen, which Works quarrying, mining and drilling includes a variety of possibilities, activities (all carried out according

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Chapter 3: Environmental Responsibility

The center will include a range from work in the open spaces and landscape hazard; reclamation of is unclear although Adam Teva V’Din of attractions that will provide a from the collection of boulders which quarries and excavations; removal (Man, Nature and Law) and other diverse visitor experience for a wide were used as a foundation for the of waste; and reducing night lighting organizations claim that its source is range of audiences. The remaining pond. The collection of boulders around pumping and drilling facilities. the industry at Mishor Rotem. permanent structures at the site will begins at Nahal Mishmar north of Before introducing heavy equipment In 2007, Dead Sea Works committed Dead Sea and extended south to be rehabilitated and restored, as will to blur the roads, the area was itself, in a court deliberation regarding Nahal Peres. Most of the stones were several of the temporary structures, scanned on foot to ensure that there water, to cooperate with the Water collected in areas west of Route 90. which will house original exhibits were no spiny-tailed lizard burrows. Authority and other relevant parties displaying the lifestyle of the camp. It is important to note that such Due to the diminishing open spaces to restore Nahal Bokek by introducing The reconstructed Potash Company hazards cannot reoccur thanks to in the Dead Sea area, it is important water with a quality similar to the site will provide visitors with an procedures established and enforced to restore damaged areas to conserve water that previously flowed into the emotional and thoughtful experience by the Company. habitats and endangered animal stream. populations. The restoration has high that will highlight the importance of Rehabilitation activities refer to This commitment led to a joint project ecological, environmental, landscape the Zionist vision. The construction of reconstruction and rehabilitation in with the Nature and Parks Authority to to its existing concession) and by Initial planning of project dossiers and tourism importance. the visitors’ center will be executed in mining areas in which mining has introduce high quality water into the other activities unrelated to Dead Sea prior to detail planning. stages and spread over a number of ended and will not be resumed. The During 2014, the project continued stream. Works. Promotion of a pilot for immediate budget years. work includes cosmetic improvements with the restoration of various sites The project is executed and Four years ago, Dead Sea Works, in planning, including project designed to integrate the located between the Zin River in the sponsored by the Water Authority, cooperation with the Tamar Regional dossiers on the operative planning infrastructure into the environment - south and the Tse’elim River in the with Mekorot - Israel’s National Water Council and the Nature and Parks level. Restoration of Hazards for example: painting pipes, mending north - where the Company previously Company, as the high quality water Authority, initiated a master plan from the Activities of fences and pumping stations, blurring had salt facilities. To date, initial planning has been provider. for restoration, conservation and Dead Sea Works in Open unused roads, waste disposal and completed and detailed planning All the hazards that were not restored development of open spaces at Areas within the Dead Sea restoration of temporary mining sites. Detailed plans have been made by ICL and the Nature and Parks during the first stage of the project Sodom, based on the principles Works Concession for this project and in 2014, an Authority, is progressing. The plan is The first stage of the project were restored during the second of sustainable planning. The plan agreement was signed between to the implement the projects in the The project for restoring open areas occurred during 2010 with extensive stage. In the third stage the Company is based on three components of the Company and the Nature and area around Mount Sodom so that is designed to restore and rehabilitate restoration activities along the drilling intends to develop and upgrade sustainability: Parks Authority which defines the the Sodom work camp, which will be violations and hazards created by the axis near Nahal Amaziah, a region some of the sites that were restored, responsibilities of each side in Environmental: a policy to restore converted into a visitor’s center, acts Dead Sea Works over decades, within located south of the Dead Sea. in order for them to begin receiving carrying out the project. past damage and rearrange the as the central hub for the system of the open areas of Sodom. The project visitors. Dead Sea Works performed disturbed areas hiking trails in the area. was performed by the Company in By early 2015, quality fresh water landscape rearrangement and cooperation with the Organization for began to flow into the river. In the first Societal: preparation and The site, located south of the Dead restoration to eliminate the ecological, the Rehabilitation of Dead Sea Works Nahal stage, the fresh water will be mixed development of open spaces for the Sea, was used from 1934 to the early geomorphological, environmental and Sites headed by the Ministry of the Restoration Project with the brackish water in the stream benefit of the general public fifties as a work camp for Eretz Yisraeli scenic hazards in the area. and in the second phase, the brackish potash factory workers, and then for Environment, and includes a list of Nahal Bokek flows to Pond 5 through Economic: the initiation and The preliminary project survey, water will be replaced completely. The Dead Sea Works. sites selected after a field survey and the grounds of the Ein Bokek hotels. advancement of the plan by Dead Sea and the detailed project plan were transition from the first stage to the in coordination with the Parks and An annual average of 300-400 Works The Potash Company site at Sodom prepared with the Nature and Parks second stage depends on Mekorot’s Nature Authority. thousand cubic meters of water will be rehabilitated and restored as a Authority, and work was performed in ability to supply water. The plan has three stages: flows through the stream, though the museum and visitor and information The hazards are sites within the full coordination with their staff. amount varies significantly from year This solution for Nahal Bokek provides Preparation of a master plan center. It will reflect the way of life, open areas of the concession where The restoration project was to year depending upon the amount a great model of voluntary and for open spaces in the southern and type of work, required of the works disturbed the area, and include carried out by a multidisciplinary of annual rainfall. In recent years, the beneficial collaboration between concession of Dead Sea Works. people who live in the desert, and mining, collection of wadi material, team that included an ecologist, stream water has become brackish, industry and environmentalists. DSW will outline the conservation, will celebrate the powerful vision and collection of stone, roads, water geomorphologist, landscape architect damaging the stream’s ecosystem. restoration and development determination of these people, who, drilling and drilling facilities, pipelines, and environmental planner. The The salinity has now risen from 500- policies that will guide its activities despite all the limitations, planned, signs and waste. Most of the hazards project included removal of hazards 600 mg chlorine per liter to 3,000 or related to the region for several executed and shaped the history of were created in the 1960s and 1970s such as scraping dust and stone piles; more, and is continuing to increase decades (until 2030). the Dead Sea and modern day Israel. when Pond 5 was created, primarily blurring roads which constituted a gradually. The source of the salinity

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Chapter 3: Environmental Responsibility

Sustainable Management of Potash Mining in Spain

ICL conducts its potash mining Main environmental Projects in 2014 Sallent Center operations in Spain through its Constructing the network Concrete lining of various working subsidiary, ICL Iberia. The Company Suria Center perimeter channels for collection areas in Pou III and Vilafruns currently operates two mines - Suria The Company completed two Adding two new piezometers, of water in the salt pile La center. and Sallent, which are both in the reinforcement projects in the to complete the net control Botjosa in Sallent and installing province of Barcelona and are located Placement of oil tanks with Súria complex: at the Cabanasses piezometers around the salt pile protective fences around the approximately 530 to 900 meters all preventative measures for site it built a raft of reinforced in Suria. This action purposes perimeter (Pic. 1, 2). This project below ground. spills such as ITAS (technical concrete walls overflowing to to complete the network of involved the construction of more instructions for action), Extraction of potash from another raft coated with High- groundwater monitoring around than 1200 meters of perimeter sepiolite, retention ponds, fire underground mines in Spain is carried density polyethylene (HDPE). In the salt pile. channels, two pumping stations, extinguishers, etc. out by mining sylvinite (a mixture the Súria site, the Company built Completed the connection of the two networks of underground of potash and salt found in varying a raft of reinforced concrete walls local sanitary wastewater system drainage and movement of potash concentrations). The potash is covered with foil HDPE capacity Sallent Center to the municipal sewage system – materials over 110000m3. separated from the salt in production of 5000 m3. These actions have a 600m connection with PVC pipe These actions were verified and plants near the mines. been verified and accepted by Ø400 mm. accepted by the DGQA (General ACA (Catalan Water Agency) on The Spanish government owns all Direction of Environmental July 2014. of the underground mining rights Quality) and ACA (Catalan Water and has granted ICL concessions to Agency), in February 2014. conduct mining operations under the Waterproofed raft for the collection of saltwater Waterproofing work in the in Salt pile Suria: Company’s land. well of La Botjosa, including 1. Salt pile La Botjosa - 2. Salt pile La Botjosa - waterproofing of the general well Pursuant to the provisions of Spanish Before the project After the project law covering environmental protection of salt water collection in the in connection with areas affected by Botjosa salt pile with epoxy resin mining activities, ICL has submitted treatment. a plan for restoration of mining sites Restoration and concrete lining for its two production sites. The Cabanasses raft - Before Cabanasses raft - After the of about 250 meters of collection restoration plan of the Suria site the project project channels of salt water in The is designed to be conducted in an Cogulló - equivalent to 10% of approximate period of 24 years. The the entire network of perimetral restoration plan for the Sallent site is channels of saline water 3. Collection channels of salt 4. Collection channels of due to be completed by the end of collection (Pic. 3, 4). water in the Cogullo - Before salt water in the Cogullo - 2017 (the planned site closure date). Constructing a covered waste the project After the project area in Pou III, including concreting the area of tire repairs, Suria raft - During the project Suria raft - After the project preventing soil contamination by possible spills of oils and paints, equipped with a pit for waste The Company estimates that the overall scope of the In 2014, ICL paid approximately collection. plan for restoration of these mining sites will amount to €150 thousand in royalties to the Spanish government. $20 million (€17 million).

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Chapter 3: Environmental Responsibility

Sustainable Management of Potash Mining Sustainable Management of Phosphate Deposits in United Kingdom in the Negev

ICL mining operations in the United The company has created wildflower the industry and the environment ICL operates, through its subsidiary, ICL currently operates large surface a mining engineer and an ecologist to Kingdom are conducted by its meadows adjacent to their office will continue to flourish together. ICL Rotem, large surface phosphate phosphate mining sites at Oron, ensure that the process is completed subsidiary, ICL UK. The Company’s complex. This was formerly a Mining at the mine is conducted a mining sites at Oron, Rotem and Zin in Rotem and Zin in the Negev Desert. optimally. The process includes site mine and processing plant are located featureless area of amenity grassland, kilometer below the surface, allowing the Negev Desert. The Company is careful to ensure a tours of the area to be mined with approximately 340 kilometers north but careful preparation and seeding conservation of flora and fauna in the balance in the utilization of existing representatives from the Society for The plan for mining phosphates in of London and approximately 40 of it with a wildflower mix containing area. deposits through responsible the Preservation of Nature in Israel, Barir (South Zohar) is in the planning kilometers east of Middlesbrough, native plants which are appropriate planning and reclaiming of phosphate Israel Nature and Parks Authority, Since 2008 ICL U.K. and INCA have approval stages. Further details about England in the North York Moors for the site has resulted in a meadow mines during mining. the Ministry for Environmental worked closely to develop a site Sde Barir are provided below in this National Park. which is both beautiful to look at and Protection and other official agencies, specific Biodiversity Action Plan section. ICL’s outstanding accomplishments provides a biodiverse habitat. for purposes of control, learning and Extraction of potash from (BAP) to identify the baseline status in the field of reclamation The method of mining in the Negev is transparency. underground mines in the United These meadows contain at least of the habitats and species living during mining was recognized by conventional open pit or quarrying Kingdom is carried out by mining 15 species of wild flower such as within the Company’s woods and by IFA (International Fertilizer methods, using drilling and blasting sylvinite (a mixture of potash Bird’s-foot Trefoil, Ox-eye Daisy, Red propose specific measurable actions Industry Association). In 2015, where necessary, hydraulic excavators and salt found in varying potash Clover and White Clover, all of which to conserve and enhance biodiversity ICL Rotem won second place in and rigid dump trucks or dozers concentrations). The potash is provide a valuable nectar-source value. the 2015 Green Leaf award, due with rippers for overburden removal separated from the salt and from for the species using them, such as to its extensive and innovative The commitment of ICL and its and front-end loaders and trucks for insoluble materials in processing the Common Blue Butterfly and the activity in the reclamation of subsidiaries to biodiversity allows mining phosphate. plants located near the mines. Six-spot Burnet Moth. The grassland Phosphate mines, which have areas, such as these meadows, now supports many different animals The Company has long term leases for been significantly upgraded and ICL mining operations in the United to flourish within the heart of the including multiple species of butterfly, all the land on which its Israeli facilities developed since 2009. Kingdom are conducted both under operations site. This example turtle and bumblebee. are located, but it operates under land and under the North Sea, illustrates the possibility of having mining concessions and licenses pursuant to mining leases and mineral The meadows require ongoing wildlife thrive alongside operational granted to it by the Israeli Minister of Reclamation Target extraction licenses. management in order to keep them uses of the site National Infrastructures and by the in prime condition. This work is 2015 Target: Israel Lands Authority. conducted by ICL U.K. Management Reclamation of 250 Ha In 2014, ICL paid involves mowing the meadow in the 2021 Target: autumn and removing the cut grasses. Reclamation of 2,500 Ha - historical approximately £2.6 This action is important as the cut In 2012, 2013 and 2014, mining areas (annual average in royalties grass would otherwise feed nutrients target: 350 Ha) million back into the meadow, which would ICL paid approximately The Company works according to to the United Kingdom paradoxically lead to its demise, as a long-term strategy for managing nutrients encourage competitive grass , its mining of phosphate deposits (Crown Estates). species which would soon swap the $6 million in the Negev. This policy includes desirable plant species within the conducting comprehensive geological meadow. $4 million and The ICL U.K. site at Boulby includes surveys, examining alternatives to grassland areas within the boundary ICL UK strives to minimize its impact $3 million, mining, defining long-term goals for of the operational works which on the environment and is working mining, and sustainable mining that provide a haven for invertebrates with organizations such as Industry respectively, in includes comprehensive planning for Wildlife Conservation Association such as bees, butterflies, moths and royalties to the Israeli the restoration of the area before hoverflies; all of which are important (INCA), the Tees Valley Wildlife Trusts beginning to mine. The three leading as pollinators. and local authorities, to ensure that government. professionals involved in this planning include a landscape architect,

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Chapter 3: Environmental Responsibility

Reclamation of Phosphate Mines during Mining

Barir Field (Sde Barir) Phosphate rock is found at a depth of several dozen meters below the surface. Above it is a layer of “overburden” rock of

Occupying the smaller part of the Arad Valley, Sde Brir is the only phosphate ICL has undertaken to fulfill variable thickness, and above that, topsoil. In ICL Rotem’s reclamation-oriented mining technique, the Company removes reserve in Israel that can be mined. In fact, experts of the Israel’s Ministry of the following conditions in the specific topsoil from the mined block when beginning to mine it and temporarily stores it in the adjacent block. The Environmental Protection, Ministry of Energy, Ministry of the Economy and respect to mining atin Sde overburden layer is then also removed from the specific mined block’s surface and placed in another block in which mining Ministry of Interior Affairs have all concluded Sde Barir is the only alternative Barir: has been completed. When the mining of the block is completed, it undergoes topographical shaping and is then covered with for currently active phosphate fields which will become depleted in 6-8 years. A one year pilot before the original stored topsoil. The reclaimed block surface is shaped similarly to its original topography. The design’s slow runoff, Considered of high quality, the phosphate reserves at Sde Barir could provide taking the final decision creates microclimate conditions for local flora and fauna, and allows rapid renewal of vegetation. the raw material for essential products for humanity for approximately 25 on mining across the years. The landscape around the field is not ecologically sensitive, which means entire field; it is sufficiently distant from population centers while relatively close to the Assuming personal Area before mining removing top soil Rehabilitated Area processing plants at Mishor Rotem. The field’s yield per square kilometer is accountability down to the highest in the Negev, offering the added ecological benefit of disrupting a the mine’s manager level Cessation of mining relatively small area for large quantities of produce. Filling the mined pit during unusual with overburden If mining in Sde Barir is not allowed, the existence of Israel’s phosphate Overburden meteorological industry, as we know it, will no longer be economically justifiable. This would conditions; have far-reaching implications on life in the Negev and the livelihood of some Mining Phosphate Authorizing the 7,500 families. Environmental Unit Phosphate In April 2014, Prof. Jonathan Samet, an international epidemiology expert of the Eastern Negev retained by Israel’s Health Ministry, submitted a detailed report in which he in Arad to suspend ruled out the health risk associated with radioactivity in the area. Another mining works during overburden concern that has been refuted following in-depth checks pertains to wind- difficult meteorological borne dust particles from the prospective mining area. The study concluded conditions; Top Soil that the added dust generated only under special, uncommon extreme mining Ongoing monitoring scenarios would be negligible, amounting to one thousandth of the dust of the field before and regularly present in the air around Arad. ICL Rotem undertakes to prevent during the mining in the Mining Area Rehabilitated Field even this miniscule impact by avoiding these unlikely extreme scenarios and by field; regularly employing a range of tools and measures (see list below). Applying the most stringent standards to Despite the findings of Prof. Samet’s review, the Health Ministry persists in its Guidelines for Reclamation Reconstruction that is similar to Reclamation during Mining – the mining works at Sde objection to the mining in Sde Barir and has handed over the final decision on during Mining the original topography: These Projects Status Barir, including use of the matter to other authorities in Israel. actions are prescribed in the innovative dust-control Limit the mining area: Efforts are In 2014 mining and reclamation were mine design stage. Topography Israel’s Clean Air Act establishes standards for measuring the environmental technologies during made to minimize the area of performed in the Koshesh fields and reconstruction of the block is impact of plants and industries. The mining plans prepared for Sde Barir, the mining and more. the mining pit, the piling area of Sife in Zin and in the 4a field in Oron. performed both during and after comprehensive environmental survey submitted and multiple preliminary tests the overburden (the layer that In the 4a field there are large areas of the conclusion of mining. The held in the area have all concluded that mining in Sde Barir would fully comply contains no phosphate rock) and reclaimed landscape in which plant reconstruction process of the with the standards and requirements of the Clean Air Act. the mine access roads. Areas of revival can now be seen. specific block is determined in the high ecological or land sensitivity In October 2014, the National Planning and Construction Council held a pre-mining mine design. In Tzinim field, Yorkeam north and are avoided as much as possible. discussion on Sde Barir. Most of the participants in that discussion supported the 4a field in Oron, topsoil is being Reconstructing the original the mining, including the Ministry of Environmental Protection, the Ministry of Reducing the amount of removed according to a plan which ground texture as much as Finance, the Ministry of Interior Affairs and the Prime Minister’s Office. Only the disturbed area at any given time: combines reclamation during mining. possible by storing and retrieving Health Ministry objected to the mining. Dividing the mining area into block-specific topsoil. The ‘Hatzeva South’, ‘Gov Field’ and small mining blocks, planning ‘Hatzeva B’ mines were reclaimed the direction in which mining during and after mining was progresses and using as much completed. overburden as possible to fill adjacent excavated blocks.

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Chapter 3: Environmental Responsibility

Stage

2: Product Development

As a leading global specialty minerals company, research and innovation are the cornerstones of ICL’s business. While focusing its research and innovation on developing production processes, new applications, formulations and products for its three key end markets (agriculture, food and engineered materials), ICL takes care to ensure that sustainable criteria are considered and addressed.

Over the years, ICL has developed and marketed many innovative products and solutions and accumulated significant expertise in the broad range of areas in which it operates.

In 2014, ICL significantly expanded its core research activities, in cooperation with outside entities. These activities are being managed mainly by ICL Haifa (IMI), the Company’s central research and development institute, and ICL Innovation, a technological incubator which aims to identify and develop groundbreaking technologies for ICL.

In the first quarter of 2014, the ICL R&D Management Forum was established. This Forum, headed by the CTO, has established multiple cross segment development teams which work together to promote the application of new products and technologies.

ICL R&D Expenses In USD millions

87

83

74

2012 2013 2014

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Chapter 3: Environmental Responsibility

ICL has at its disposal a world- class research institute and highly experienced group of technical experts. These assets, along with its Sustainability Index for Product significant accumulated expertise, Development are leveraged by ICL and used as a In accordance with ICL’s commitment to sustainable development, driver for sustainable growth and to as well as its effort to reduce environmental impact along the add value for customers in its three value chain, the Company includes environmental and health attractive end markets. criteria in analyzing its products beginning from the initial product development stage. This makes it possible to manufacture ICL Haifa (IMI) products with the minimum negative impact on health and the environment. Environmental and health criteria are included from ICL Haifa (IMI) is ICL’s central research the developmental stage, together with commercial and operational and development institute. Its considerations. All products under development are comprehensively ICL Haifa’s (IMI) most important asset outside knowledge to ICL using the well as a product’s potential contribution to facilities include some of Israel’s most and rigorously tested to specify their physical properties, their is its human resources comprised “Open Innovation” methodology, and humanity and the world’s population, before advanced research laboratories, efficiency, their toxicity to humans and the environment, and more. a sophisticated mini-pilot facility, of professional chemists, engineers, to assimilate this knowledge into ICL’s determining which projects to pursue. In large pilot facilities and analytical microbiologists, and analytical and business units. 2014 eight projects were initiated and an To assimilate environmental and health criteria, ICL Industrial corrosion chemists, all supported by additional four projects were added in 2015. Products has developed a Sustainability Index for products under laboratories equipped with state of- ICL Innovation’s activities are focused trained and experienced technicians The current projects, which are expected to development. In accordance with the Index, each product is assessed the-art equipment. on discovering and examining and technical support and service be operational in 2015, relate to controlled- and graded during the development process according to defined ICL Haifa (IMI) provides a broad new trailblazing technologies from staff. Its professional teams produce release fertilizers, increasing crop yields, parameters. Based on the results, changes are incorporated into the range of services, including research universities, research institutes, the high quality work expected from a energy storage and solar cell technology. development process. and development, production, technology incubators, startups and leading R&D institute. testing and a very large selection venture capital funds in Israel and The incubator invests major efforts to The Sustainability Index considers the impact of the product of analyses for customers from around the world. locate relevant and innovative technologies throughout its life cycle. It assesses everything from the properties in order to keep ICL at the forefront of of the material and raw materials used, to the use of solvents in the chemical, pharmaceutical, food ICL Innovation The subjects on which ICL Innovation worldwide technological innovation. As a the synthesis process, to the waste produced in the process. The and environmental quality service focuses are defined by the needs ICL Innovation is the Company’s result, the incubator operates a worldwide objective is to develop products made of materials with a high industries. ICL Haifa (IMI) ensures of ICL business units and relate technology incubator which identifies network of scouts whose job it is to identify molecular weight so that the molecules are too large to penetrate that from the start to completion of to sustainability and technological and develops innovative technologies research projects that are suitable for a biological membranes, and thereby reduce the potential for the a project, safety and the environment developments that benefit the from external sources in fields related defined list of needs of the Company’s substances to be absorbed into organisms and to accumulate in receive full consideration. environment and human society with to ICL operations in order to bring business units. In addition, ICL Innovation the food chain. Furthermore, “no go” properties have been defined. goals such as increasing crop yields, contacts international financial and market The development of any product having any “no go” characteristic is improving the quality, quantity and research companies to locate companies halted and the product is not commercialized. availability of food and improving with business potential in the areas of ICL’s living conditions. In the ICL Industrial Products segment, the Sustainability Index strategic activities. In addition, the incubator is a tool that is used daily during product development. Various During 2013-2014, the first two engages outside companies to scan parameters of the index are evaluated throughout the product years of ICL Innovation’s operation, technologies either from internal databases development process. If the final score is below the required score, approximately 600 responses from or through the Internet. appropriate changes should be made to improve it in order to outside entities related to business Selected projects benefit from ICL’s continue with the development of this product. unit needs were submitted to the professional oversight, financing, research incubator. The projects are subject The Company aims to introduce the index in all of the ICL’s segments. capabilities and infrastructure from the initial to a strict assessment process It should be noted that, product stewardship management is subject concept stage through implementation. conducted by staff members of to regulation in all regions were ICL operates, and ICL companies the incubator, researchers and ICL Innovation is wholly-financed by ICL closely track relevant regulatory developments. business development managers without any government or other external from TAMI (IMI) and ICL companies, support. Its budget for 2014 was NIS 10 who weigh technological, business million. ICL Innovation Ltd. is registered as a and environmental considerations as legal entity wholly owned by IMI TAMI, ICL’s central research institute.

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Chapter 3: Environmental Responsibility

Development of Technologies and Products with Limited Environmental Impact

Coated Specialty Fertilizers Water Treatment Solutions Flame Retardants

ICL has developed a series of Enhanced Efficiency ICL makes active ingredients, formulations and customized Flame retardants, ICL Industrial Products’ largest product To fulfill the Fertilizers with a coating that better protects them from the water treatment solutions for use by industries and lines, are a key component in reducing the devastating growing demand vicissitudes of the environment while preventing leaching municipalities. These chemical-based water treatment impact of fires on people, property and the environment. effects, as compared to conventional non-coated fertilizers. solutions reduce the demand for fresh water supply in ICL’s flame retardants are integrated into textiles and for ecologically- Controlled-release fertilizers gradually fertilize plants over water-challenged regions, thereby reducing the need to plastics products in the electronic, and other, industries responsible time, providing plants with the nutrients they need over engage in energy-intensive, costly desalination projects. to reduce the risk of fire, thereby, allowing many types of consumer products to be used safely. industry, ICL has time and thereby, increasing output. When using controlled- The various water treatment solutions developed over chosen to look at release fertilizers, along with the training provided by the years by ICL offer increased energy efficiency at the ICL-PP’s flame retardants portfolio consists of additives, Company agronomists, the amount of fertilizers needed its activity through “spectacles consumption stage by inhibiting scale, corrosion and biofilm polymeric and reactive products based on bromine and can be reduced by 20%-50% (depending on the crop, soil formation on heating or cooling equipment (like boilers or phosphorus. Additional FRs are based on magnesia and of sustainability”, in the words of and climate), while actually improving harvests and making heat exchangers). ICL estimates that its water treatment other minerals. Eyal Ginzberg, Senior VP & Chief land use more efficient. This, in turn, prevents the need products may save up to 40 - 50 % of process energy ICL brominated flame retardants (BFR), the main players to convert additional forests or wetlands for agriculture. requirements (only 1 mm Calcium Carbonate scale causes Technology Officer: by value in the flame retardants family, are known for As such, the use of controlled-release fertilizers has a 15 % heat transfer rate loss). In addition, some of ICL’s water “Our sustainability strategy is not just a slogan their efficiency, are suitabilityle for use in most polymeric beneficial effect on the global carbon balance. In addition treatment products help reduce water consumption for - it is a way of life in all three markets in which systems and are applicabilityed in a variety of industries, to the increase in utilization of fertilizers, the coating customers by increasing the number of cycles in boilers and we operate. In agriculture, it’s not enough for us e.g. . electronic and electrical equipment, building and prevents unwanted leaching thereby protecting the soil and cooling towers. Additionally, some ICL products are directly to increase productivity, and we’re encouraging construction, textile and the automotive and transportation groundwater from pollution. used at waste water treatment plants to clean water. optimum use with a minimum of fertilizers industries. The Company is currently the industry leader in controlled and maximum efficiency. In the food market, From a product-life-cycle perspective, and compared to release fertilizers for plant nurseries and greenhouses, we’re aware of the growing reservations about other FRs, plastics treated with BFRs have an improved lawns and gardens, and in tropical regions where agriculture industrial food and therefore are working on recycling profile because they retain a high proportion of is intensive (for crops including vegetables, fruits, bananas additional developments in the chain from field their initial properties. and oil palm) and where climatic conditions increase the to plate. In the flame retardants’ market, we’re dissolution rate of regular fertilizers. developing products that do not harm the environment, public health, air quality, water R&D is continuing in order to further improve the sources and land.” technology, reduce prices, create better products, and ICL - Flame incorporate additional materials into delayed release Retardants Take, for example, the agricultural market – it’s fertilizers. These efforts will make it possible to increase the not enough to increase yields. We encourage Scan QR code or press the QR number of farmers and growers who regularly use these an ecological perspective and therefore work code to watch the video. fertilizers. on optimal doses of fertilizer. In other words, maximum efficacy with minimum fertilizer. Therefore, we are developing liquid fertilizers that can be drip-fed directly to plant roots or ICL - Specialty Fertilizers sprayed on foliage using formulae that offer efficient penetration of leaves. We are also Scan QR code or press the QR code to watch the video. developing slow release fertilizers with the emphasis on biodegradable, environmentally friendly coatings that are also financially beneficial for users.”

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Chapter 3: Environmental Responsibility

ICL R&D Activities Additional information on remarkable R&D Projects being undertaken at ICL R&D facilities:

In 2014, ICL significantly expanded its core research activities, in cooperation with outside entities. These activities are being managed mainly by ICL Haifa (IMI), the Company’s central research and development institute, and ICL Innovation, a technological incubator which aims to identify and develop groundbreaking technologies for ICL. Phosphates recycling from fertilizers to date are: The “One ICL” approach and a hands- on attitude will create real potential In the first quarter of 2014, the ICL R&D Management Forum was established. This Forum, headed by the CTO, has ash and sludge Struvite (both ammonium magnesium for these sustainability projects. established multiple cross segment development teams which work together to promote the application of new products ICL is a pioneer in recycling nutrients phosphate and potassium magnesium and technologies. from waste (mainly phosphorus) for phosphate) resulting from municipal As a spin-off from this recycling agricultural uses. In collaboration water treatment plants and industrial experience, a special project was with Wetsus in Holland, and water treatment units. Ammonium launched at ICL Israel. At the fertilizer ICL R&D activities in 2014, include: partially funded by the Netherlands (or potassium) and phosphate plants in the south of the country, government, ICL continues to containing water or manure is mixed various waste streams containing participate in the development of with a magnesium source and the magnesium, phosphate, ammonium Fertilizers Industrial Products Performance Product technologies for recovery and recycle struvite - being very sparingly water- and potash are available. The Improvement of the quality Continued development of brominated flame Flame retardants of phosphorus from ash, sludge and soluble -precipitates and is collected. challenge will be to combine the most of the products being sold; retardants, which are destined to become the based on phosphate municipal waste streams. It is converted at ICL plants into suitable streams under optimum next generation of environmentally friendly flame salts for the high-quality granulated fertilizers conditions into struvites (either Research regarding In Europe, ICL is one of the key retardants, and potential future substitutes of automotive industry with improved solubility and crop ammonium or potassium) and recover environmental protection, movers on issues related to recovery- existing products such as DECA and FR 1410; and for paints & availability. the nutrients for use as raw materials including development of recycling of phosphate and other coatings; for fertilizer production (either in methods for reducing and Continued development of TexFRon, a series of nutrients. Driven by the fact that rock Ashes from sewage sludge, meat & Israel or abroad), thereby reducing treating effluents; textile flame retardant products - effective and Development phosphate – like all natural resources bone meal or wood and crop wastes waste at the Israeli plants. A dedicated environmentally friendly solution for diverse textile of innovative – is limited and, where available, – produced by mono- incineration Development of controlled cross-section team of ICL experts, products, replacing DECA and offering a transparent, formulations for derives primarily from countries with a - are high in phosphate and potash release products with headed by Kees Langeveld, is working and laundry-durable, solution that is not currently modifying texture high potential for political instability, a content, but not in suitable form coating materials of on this project available on the market; and stability of food; strong move towards recovery of such for use in fertilizers. ICL’s plants compositions and nutrients was launched over the last convert these ashes into reputable EU thicknesses unlike those Continued development of bromine based solutions Environmentally few years. fertilizers, with appropriate measures Continued development currently available in for storing energy using diverse technologies; friendly corrosion being taken to exclude (or reduce) the market and with the inhibitors for Despite the fact that recovery- for Paint & Coating Ecological research to improve sewage treatment contaminants like iron, aluminum and addition of micro nutrients; industrial boilers recycling of waste phosphate systems, and to reduce air emissions and solid heavy metals. Coating technology will become potentially replacing competes with self-production from Development of controlled waste; a significant activity in ICL future toxic hydrazine. mined rock phosphate, ICL Fertilizers ICL has expressed an ambition to release fertilizers with developments. Continued development of new materials for understands the importance of the replace - during 2015 - 15% of its improved environmental In fertilizers, coating enables control water treatment and prevention of biofilm (algae) fact that the EU’s dependence on phosphate rock in Amsterdam by profile; of nutrient release and so allows in irrigation systems and refrigerated water for imported phosphate is an existential secondary (recovered) phosphate. for high nutrient use efficiency. This Development of industry; danger, as well as a “waste” of natural Technically this is possible; however reduces fertilizer waste and pollution applications preserving resources – since the recovery and it requires an investment which is Improvement of the formulation of a soil disinfectant of aquifers and water bodies by water and improving recycle of waste phosphates can currently under discussion. product; excess nutrients. availability of the fertilizers reduce EU imports by 30%. ICL’s For the future, ICL expects to Improving product quality and lowering production around the root; plants in densely populated areas convert these phosphates wastes ICL Advanced Additives also develops costs by changing and improving processes, while of Western Europe are actively Examination of processes to higher added value products anti-corrosive pigments for use in using the principles of green chemistry. There is supporting this effort by developing for improvement of the such as elemental phosphorus (P4) paints or coatings of metals. Fire extensive use of a “sustainability index” model for technologies to replace part of production of polysulphate and purified phosphoric acid for retardant coatings for cables and wall new products, which includes various parameters the rock phosphate feedstock on the Company’s site in use in ICL’s business segments - paint are also part of ICL IP’s product relating to product properties. in its Amsterdam (Holland) and the UK. ICL Performance Products and ICL basket. Ludwigshafen (Germany) plants by Industrial Products. In addition, a secondary (i.e. recovered) sources. potential niche market for applications Examples of materials that have in slow release fertilizers is of interest been successfully incorporated into to the ICL Specialty Fertilizers division. 96 ICL Corporate Review 2014 ICL Corporate Review 2014 97 Back to Content Back to Content

Chapter 3: Environmental Responsibility

The following are key advantages of the ICL-IP’s FR Framework:

The FR framework evaluates FRs in their specific applications;

The FR framework expands upon commonly used hazard-based approaches by incorporating new scientific measurements, allowing users of FRs a comparative way to assess potential exposure and risk;

ICL-IP is using the framework outcomes to guide customers and internal decision making processes for existing and making more informed decisions A risk assessment developmental flame retardants. methodology for regarding flame retardant selection. Although the framework was flame retardants – The hazard assessment: developed for flame retardants, the the FR framework The hazard assessment is based methodology may be applied to a on the properties of the FR and its range of chemicals that are used in relevant degradation products. The manufactured by ICL-IP. The result produced using either a magnesium different final products by adapting ICL Industrial Products properties of the substances which of this LCA indicated that, for most alloy or an aluminum alloy (the the exposure component to the As an integral part of its commitment are evaluated include environmental parameters, the TV back cover made major competitor for this type of relevant application. to sustainability, ICL-IP has fate & toxicity and toxicological end of High Impact Polystyrene (HIPS) application). The findings of this developed an assessment tool, the points, based mainly on the Global with the FR-245 flame retardant LCA indicate that magnesium is FR-Framework, for evaluating flame Harmonized System (GHS) for Life Cycle Assessments system exhibits better environmental preferred over the total life cycle due retardant (FR) products in their classification and labelling. - Flame Retardants performance than the one made of to the reduced fuel consumption intended application during the use Polycarbonate/acrylonitrile-butadiene- in the use phase, as a result of the

The Exposure assessment: ICL-IP performs Life Cycle phase. The framework improves upon styrene (PC/ABS) with the BDP flame product’s lower weight. Of the stages The exposure assessment has a Assessments (LCA) for some of its existing hazard-based approaches retardant system, in terms of air, in a product’s lifecycle, production of two tiered approach. The level of Reduction of Total products in order to assess their by incorporating an estimated water, and global impact. the raw material carries significant contact during the intended use (e.g. Suspended Solids (TSS) / environmental impact throughout exposure component based on weight in determining the product’s T.V, computer, etc.) is first defined. organic load in Aqueous their life cycles. These assessments The details and results of the LCA the anticipated level of contact and environmental impact. Therefore, The potential emissions of the FR waste streams provide a tool to compare between mentioned above were shared with measurable potential emissions of it is important that the process for from the product due to either systems with the possibility of stakeholders in the Company’s 2013 A novel technology for the flame retardants from the matrix producing magnesium has a small migration to surface (blooming), identifying the main stages that Corporate Responsibility report precipitation of suspended solids in which they are incorporated (e.g. carbon footprint. A study comparing leaching or volatilization, are then contribute to specific environmental (pages 81-84). in industrial and municipal farming plastic, foam, textile’s formulation). the various production technologies considered. The potential emissions impact. In addition, the different wastes streams is being developed. The combination of hazard and concluded that the one used at the are based on actual measurements stages in the production of the ICL-IP This project is being conducted in exposure provides a more complete Sodom plant reduces greenhouse made during accelerated aging specific products can be analyzed collaboration with an external party assessment of how hazards translate gas emissions by half compared of samples prepared with the with actions taken to improve the and is one of ICL’s efforts to develop into potential risk to humans or the Life Cycle Assessments to the processes used by Chinese matrix that the flame retardants environmental performance of their solutions for adjusting wastewater to environment during the intended use - Magnesium Alloy manufacturers (who are responsible would be incorporated into, using production processes. the quality required for agricultural of the final product (e.g. TV, computer, for 80% of world production). the appropriate formulation. This Another recent LCA was performed applications, with or without use of upholstered furniture, building and approach to exposure assessment LCAs were conducted in 2012 by by the Company’s Magnesium plant The details and results of the LCA ICL soluble fertilizers. construction material, etc.). The was developed and is unique to the the ICL Industrial Products segment which examined the environmental mentioned above were shared with purpose of the FR framework is to framework. which performed a comparative LCA consequences associated with stakeholders in the Company’s 2013 provide guidance to users of FRs in on two television’s (TV) back covers several products for the automotive Corporate Responsibility report (page which contained flame retardants and aviation industries that can be 84).

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Stage

Product & Operation 3: substances it produces and sells of this Report, this list includes several Facilitate immediate access are handled through their life cycle products in ICL Industrial Products to material safety data sheets in accordance with all relevant rules segment’s portfolio. (MSDS) for hazardous materials in and regulations. ICL is therefore the system. Apart from higher production implementing procedures to and raw material costs following Some of the companies also use accommodate compliance with global implementation of REACH, under a computerized system to control regulations which are relevant to the regulation, ICL’s subsidiaries shipments of hazardous materials, its business lines: Regulations for incur costs in the field of control performing all the checks required food, pharmaceuticals, pesticides and implementation of product to ensure that materials are shipped & biocides, fertilizers, chemicals stewardship programs with only when all approvals have in general as well as regulations customers. been received and validated. For protecting the environment (air, water, example, ICL Industrial Products soil), regulations for storage and ICL is also in compliance with other operates computerized systems to transportation and many more. global chemical regulations, which approve shipments. All materials, are currently being established or One of the important chemical quality, packaging and country amended in countries such as Japan, regulations is the European of destination are approved by a China, Korea, USA, Canada, Australia, Regulation for Registration, Evaluation, qualified professional, thus ensuring Turkey, Taiwan and others. Authorization and Restriction that each shipment meets the legal of Chemicals (REACH). All of ICL In addition to the registration of requirements of the destination segments are implementing REACH chemicals, ICL companies employ country. Moreover, the label (or and are registering their chemicals as a system for comprehensive labels) is adapted for each shipment, required by regulation, i.e. submitting management of hazardous materials and packaging and shipping dossiers containing detailed based on a dedicated Enterprise documents are prepared according The information is then used countries around the globe, mainly in Product Safety information of chemical substances Resource Planning (ERP) system to the label. The system can also be to classify each chemical and Japan, China, Korea and more. that deals with emergencies, as The product safety policy established manufactured or imported into customized for a specific customer, if product according to the Global well as safety and access control by ICL reflects its commitment to An important part of product safety Europe, in quantities of more than required. The process is implemented Harmonization System (UN) for management systems. manage its products throughout is projected in documentation which one ton per year. globally at each site. At ICL Rotem, classification and labelling and its their life cycle in a responsible way. provide the information on the if non-compliance with permits and adaptation by numerous countries All of ICL segments submitted The Company applies a rigorous and chemicals to workers, customers licenses of the transport company or across the globe, or other relevant applications for registrations for The ERP system is used to: consistent approach to risk evaluation and the general public. ICL has a customer is discovered, a shipment regulations. all the chemicals relevant for their sophisticated system for preparation Control hazardous material will be stopped at the exit. of existing and new chemical products businesses in Europe (production All ICL’s relevant chemicals have been and distribution of Safety Data Sheets inventories at Company sites at all stages of their manufacture, and sale) within the timetables set in ICL performs constant monitoring reclassified in line with the European and labels, as well as preparation according to quantities allowed by transportation and storage, use and the regulation (2010 and 2013). The of recovery time objective (RTO) and CLP Regulation (Classification, of a variety of other hazard their poisons permit; disposal. Company has volunteered to lead and focuses on reducing its score over all Labeling and Packaging of substances communication documents in many ICL allocates resources to investigate prepare about a third of these files for Prevent deviation from of its sites by identifying where the and mixtures), that took effect in formats and languages. All these and collect sufficient information the entire industry (acting as a “Lead permissible quantities when major risks are and taking action to Europe in December 2010. ICL has documents are aimed at providing and data on its products to fully Registrant”). ICL is now preparing for ordering, receiving or transferring increase its defenses to minimize the classified all its chemicals produced or guidance on the safe use of ICL characterize the product’s safety to the third deadline of the regulation, hazardous materials within risk of incident/event. The Company imported into the USA in accordance chemicals and products in the value human health and the environment. which is in 2018. the Company by blocking such also works through compliance with the Global Harmonized System chain. This is accomplished by performing actions; auditing programs to ensure plants (GHS) implementation by OSHA, Under REACH Regulation, the or obtaining toxicological studies, As a leading global chemical are ready for regulatory inspections. effective June 1, 2015. ICL companies European Chemical Agency (ECHA) Produce applications for renewing environmental fate and toxicity and company, ICL is particularly careful are also in full compliance with GHS publishes, and regularly adds to, a list poisons permits and revisions of more. to ensure that the chemical implementation by other individual of substances defined as “substances permits in existing databases; of very high concern”. As of the date

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Chapter 3: Environmental Responsibility

ICL-PP America ICL Fertilizers & Chemicals, Haifa

In 2014, the performance of ICL-PP In 2014, the ICL Fertilizers & Chemicals plant in sites in America continued to improve Haifa, reinforced the Ammonia storage tank and and show an impressive decline in its surrounding spill containment pallet against their RTO (Right to operate) index. earthquakes. Two layers of polypropylene balls in the This index measures events such as bottom of the spill containment pallet were added to permit and regulatory deviations, prevent evaporation of Ammonia. These actions reduce community complaints, reportable the potential of damage to the Ammonia storage tank spills and significant transportation during earthquakes, thus reducing the possibility of incidents. leakage and environmental damage.

Methyl Bromide and the Montreal Protocol

Methyl bromide (CH3Br) is a compound of carbon, hydrogen and bromine used in the past as an agricultural pesticide, effective against insects, nematodes, fungi and parasitic plants. It is still used to date in applications for fumigating, buildings and stored agricultural produce (Quarantine and Pre-shipment uses). Methyl bromide has been included in the list of controlled substances under the Montreal Protocol (Montreal 1987, Copenhagen 1992), and its use in fumigation of soil, crops and goods is being phased out internationally until it is completely terminated in 2015, other than for critical uses where there is no available alternative (to date mainly in the USA). ICL’s Industrial Products segment has two methyl bromide production plants. The amount of methyl bromide produced at Bromine Compounds is reported to, and controlled by the Ministry of Environmental Protection. ICL is investing great efforts in developing alternatives for methyl bromide and assessing other existing solutions. Its development activities are aimed at increasing the effectiveness of the substances, while minimizing damage to the environment and complying with the registration requirements of target countries. Over the past decade, ICL has reduced its production of methyl bromide by 70%.

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Chapter 3: Environmental Responsibility

Internal Green Plant Certification Improvement Teams

As part of instilling a green approach and sustainable policy, ICL has established Improvement Creating solutions and to the following guidelines: ICL decided to gradually certify all the Company’s sites and Teams designed to increase improvements; Incentives Committee procedures plants using an internal process. Although the Standards efficiency and find solutions Obtaining the approval of for compensation, their place Institute of Israel does not grant green certification for by utilizing the knowledge and relevant parties; in an annual competition to production plants, ICL has voluntarily elected to apply the experience of employees working in Implementing and integrating select outstanding teams, and green standard to its all of its production plants using an “ICL the field. The Improvement Teams’ improvements; their participation in national Green Plant Standard.” Clean Industry Certification goal is to resolve problems, faults, Monitoring and control of these competitions. deficiencies and bottlenecks in processes. The ICL Green Plant Standard is based on strict parameters, Proposals related to safety and In 2014, ICL’s Monterrey site in Mexico the work environment. Outputs such as activities to conserve non-renewable resources (such The Improvement Teams select ecology are approved by the received a Clean Industry Certification from are expressed in financial as water, fuels and paper), waste recycling and management, issues to focus on based on their Committee on Safety and Ecology the Mexican Environmental Agency, PROFEPA. savings, improved environmental establishing green areas, encouraging employees to importance and significance, the time and receive incentives at the performance and an improved The Clean Industry certification is the result find green solutions and green building. The process for and resources required to address discretion of the committee. corporate culture. of a joint audit by PROFEPA and a group implementing this green standard requires a material the issue, and the measurability The work of the Improvement of independent auditors accredited by the change in the perception, values and behavior of Company The Improvement Teams’ work of the improvement, monitoring Teams promotes employees’ Mexican Entity of Compliance and approved employees and of the Company as a whole. includes: potential and control of the issue creativity, cross-fertilization, in depth by PROFEPA. The certification recognizes over time. As of the report date, all ICL plants in Israel have been Identifying issues that require analysis, methodical investigation of the work performed by the Company in certified according to this standard along with plants in improvement; The Improvement Teams that various subjects that contribute to compliance with the environmental laws of Terneuzen, China, plants manufacturing phosphate-based Selecting and defining a topic on have completed their work, and employees’ feeling of satisfaction, Mexico (state, local and federal) and lays products in the US and Germany, and the Clearon factory. which to work; proven that their work can indeed their commitment to the workplace, the groundwork for an improvement in its Analyzing and investigating the be implemented in the field, are and the success of the various environmental performance. subject; considered for rewards by the projects. Incentives Committee subject

Green Building Environmentally Preferable Purchasing

ICL maintains an advanced green construction policy based on a Company As part of ICL’s sustainability policy, ICL companies have adopted a green purchasing policy. The Green Purchasing decision that any new building or significant renovation project must comply Committee of the Purchasing Center of Excellence (operated mainly in Israel but to be expanded globally) evaluates new with green building principles. green products to replace products that have a greater impact on the environment. The Executive Steering Committee discusses the recommendations of the Green Purchasing Committee and approves the introduction of green products in The Company has established a binding procedure for evaluating green the companies. building standards for each new building and renovation based on the Israeli Green Building Standard, IS 5281, and is in complete compliance with The Company is currently in the process of establishing a global procurement organization (GPO) and the Green Purchasing the following principles of green construction: Approach and procedures will be developed on a global level within the next few months.

Energy conservation: shape and location of building, energy-efficient The green purchasing policy is used for a variety of products, including office equipment and materials, lighting, vehicles, air-conditioning systems, energy-saving light fixtures, building controls, use of natural lighting, thermal insulation and packaging materials, and production equipment and facilities. double-glazed windows. Criteria for green products: Water conservation: water-saving landscaping, dual-flush toilets, collection and use of rainwater for irrigation. Preference for products with green standard certification; Preference for products with high energy efficiency; Waste: separation of waste and recycling areas. Approval of products according to recognized standard certification (Israeli standard or certification from a recognized Air quality: ventilation systems and emission identification equipment; Radiation treatment. international organization); In August 2014, ICL U.K. plant completed work on a new gatehouse which has air source heating, LED lighting and Preference for products/materials that can be reused or disposed ecologically; solar panels. The construction allows the plant to consume at least 10% of its energy from renewable sources, as Priority to producers who have an environmental management system; required by the local authorities in England. Preference for products manufactured by companies to act according to ethical standards.

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Stage

4: Logistics & Distribution

One of ICL’s assets is its extensive global logistics and distribution network with operations in over 30 countries. The Company aims to reduce its environmental impact throughout the supply chain, including during both stages of logistics and transportation: material processing and product distribution. Towards that end, ICL invests significant resources in developing efficient logistics with advanced capabilities for monitoring and control in order to reduce negative impacts on the environment and reduce costs.

ICL Logistics & Distribution in a nutshell

Israel Spain United Kingdom

Most of the output of ICL’s Dead Sea ICL Iberia transports the minerals from The Boulby mine comprises a network facilities to Ashdod is transported by the Company’s mines to production of underground roads extending 15.5 a conveyor belt that extends for 18.1 plants, and transports potash and salt kilometers from the mine entrance in kilometers to the railhead located at from factories and mines to the port. the direction of the North Sea and over Tzefa in Mishor Rotem. The Company Ore is taken by trucks from the mines 11 kilometers from the mine entrance transports the output from Mishor to the Suria and Sallent plants. Up to 40 in the inland area. Rotem to the port of Ashdod, mainly by trucks per day are dispatched from the Transport by road from the site is train. ICL built, owns and operates the mine to the port. limited to 150,000 tons per annum and conveyor belt. It also transports some of ICL Iberia owns and maintains 1.5 66 truckloads per day in accordance the output from ICL Dead Sea facilities kilometers and 3 kilometers of with the North Yorkshire National by truck, mainly to the port of . standard gauge railway at Cabanasas Parks agreements. Most of ICL’s products, whether in solid and Vilafruns, respectively, that link to The mine has three separate or liquid state, are transported in bulk the national rail network. Each train is integrated conveyor systems, one for from Rotem, Oron and Zin by road or comprised of an 850 ton payload, or each product. The rail products are rail to either the port of Ashdod or Eilat. approximately 20 freight cars with two transported on an ICL U.K. owned rail From Eilat, the products are transported trains per working day. line which extends approximately eight by ship to markets in the Far East, and The Suria and Sallent complexes have kilometers from the minehead to a from Ashdod, they are transported by one rail system each for the rail to port junction with the national rail network, ship to Europe and America. transport systems. where the products then continue to ICL subsidiary, Tovala, is responsible the Company’s storage and loading for transporting potash and phosphate facilities before being exported by rock from the Oron and Zin processing sea from the Teesdock seaport to facilities in road going rigid trucks and European Union and other overseas trailers. customers.

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Chapter 3: Environmental Responsibility

Shipment by train has significant advantages over Trains over Trucks trucking in terms of greenhouse gas emissions and ICL prefers to use trains, rather ratio between truck vs. train transport The ICL Fertilizers energy consumption. than trucks, to transport its goods. to the port of Ashdod. If the train/ Trains have significant advantages truck ratio had remained the same segment decreased the In addition, given the scope of transport by a company the size of ICL, over trucking in terms of price, as 2012 (36.9% transported by truck), quantity of material the transition to rail transport also eases road congestion and erosion, greenhouse gas emissions and energy there would have been an increase of it ships by truck from consumption. Also, given the scope 210,000 tonnes more in the amount and even reduces the likelihood of traffic accidents. of transportation a company the transported by truck, requiring an its factories to the size of ICL uses, the transition to rail additional 5,250 trucks on the road. Port of Ashdod by transport also eases road congestion In 2015, ICL aims to continue approximately 120 and erosion, while reducing the increasing rail transport where likelihood of traffic accidents. ICL thousand tonnes, a possible, depending on the currently transports only a small savings of about 2,000 functioning of the railroad, allocation portion of its products using trucks. of train time, strikes and infrastructure truckloads a year. ICL Industrial Products’ policy is to work that halts train traffic. transport goods to ports by rail only, while truck transport is carried out only in exceptional cases and with prior approval, usually in the event of 2014 malfunctions, infrastructure projects, etc. Such exceptional circumstances occurred in 2014, over the course of the military operation “Tzuk Eitan” that 2.93 occurred in Israel, during which the 0.317 Company was forced to use trucks for Shipment by train in safe transport. millions of tonnes Shipment by truck in millions of tonnes The ICL Fertilizers segment has decreased the quantity of material it ships from factories to the port of 9.8% 90.2% Ashdod, by truck, by approximately 120 thousand tons, a savings of about 2,000 trucks a year.

In 2013, 3.37 million tonnes were 2013 transported to the port of Ashdod, of which 2.53 million tonnes was delivered by train (69.35%) and 1.02 3.247 million tonnes by truck (30.5%). In Total million 2014, 3.247 million tonnes were tonnes to the port transported to the port of Ashdod, of Ashdod 2.93 million tonnes by train (90.2%) and 0.317 million tonnes by truck (9.8%). In 2014 there was an increase in 30.5% 69.5% the amount of material transported, but also an improvement in the

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Chapter 3: Environmental Responsibility

The main shipping lanes of ICL Fertilizers

Exports from Israel

Exports from Spain

Exports from England

Efforts to reduce ICL Fertilizers is also pursuing Maritime Transport the ships that it uses for transport an initiative to improve the air- are maintained, monitored and Savings of environmental In recent years, ICL Fertilizers has conditioning system in the buses properly documented and that staff approximately reducing impact - 3 Examples increased the size of its shipments, which transport its employees are competent and experienced emissions by ICL Fertilizers, through Mifalei allowing it to transport quantities in the Dead Sea. This project in accordance with the highest Tovala, is constantly exploring similar to those shipped a decade approximately requires cooperation with the international shipping standards. methods to achieve diesel fuel ago but eliminating 90 shipments 125,000 transportation provider and is savings and is a pioneer in the a year. This, in turn, reduced fuel intended to significantly reduce 40 tonnes of field with various actions taken consumption by about 40 thousand thousand emissions and fuel usage of the on the matter, among them: tons of fuel oil a year and resulted in tonnes of fuel CO2e implementing traveling methods buses. reduced emissions totaling 125,000 oil a year to reduce wind resistance and In Spain, ICL Iberia’s construction tons CO2e. improve aerodynamics, replacing of a ramp at Cabanasses mine In addition, pursuant to ICL’s engines with new frugal engines (as described above), allowed leasing policy, ships are chartered (Euro 6), replacing manual important improvements in only if they meet the high level gearboxes for robotic gearboxes the environmental footprint by vessel safety classification of the to ensure optimal transition of eliminating the movement of 550 IACS – the International Association gears and ongoing monitoring trucks per day across Suria, which of Classification Societies. This and training for Company drivers in turn, enables the reduction of classification promotes maritime using the ‘Trafilog’ system being safety and security in maritime CO2 emissions to the atmosphere installed in trucks. The Company transport and prevention of pollution (200 t/y - estimated reduction of estimates that implementing that may result from sea shipping. 2,56 t NOx/y , 1,54 t NO2/y , 0,05 t the various initiatives will lead to As a result of its commitment to PM10/y). significant savings of at least 8% lease ships that meet the most per kilometer of travel. stringent standards, ICL ensures that

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Chapter 3: Environmental Responsibility

Stage

5: Product Use Stage

ICL practices best management for reduction of environmental emissions in the usage stage. For example, VECAP, which has been adopted by the ICL Industrial Products segment, establishes, among others, best practices for the handling of used packaging that contains residues of products.

In addition, ICL applies its product stewardship policy to the customer’s use of the product, by providing guidelines and training for customers about the efficient and sustainable use of its products.

The fertilizer industry helps to overcome agriculture challenges, facilitating increasing crop yields on existing agricultural land, thereby preventing the conversion of natural habitats to agricultural land. This can also be accomplished by promoting the correct use of fertilizers through teaching and disseminating information about effective and sustainable fertilization methods.

For this purpose, ICL Fertilizers has instituted a worldwide customer instruction and training program to promote safe and intelligent use of fertilizers.

ICL agronomists have been engaging for years in training farmers how to use fertilizers wisely and effectively. The agronomists provide guidance on the balanced use of fertilizers i.e. the application of plant nutrients in the optimum ratio and adequate amounts for sustaining high yields while maintaining soil productivity and fertility.

Dead Sea Works, in collaboration with the International Potash Institute (IPI), develops and encourages the use of balanced fertilization to achieve higher yields and better quality, while maintaining soil fertility for future generations and preventing the conversion of natural land to agricultural land.

Potassium (K), nitrogen (N) and phosphorus (P) are the three essential nutrients consumed in large quantities by plants. Potassium fertilizer increases the yield and quality of agricultural produce, improves plant resistance to diseases and pests, increases the plant’s tolerance to drought and cold, and contributes to the development of a strong and healthy root system. The uniqueness of potassium is that it increases the efficiency of use of nitrogen and other nutrients. Therefore, the use of potassium results in better utilization of nitrogen fertilizer and prevents it from reaching groundwater or evaporating.

For over a decade, ICL has invested half a million dollars every year to carry out information campaigns by the Company’s agronomists in developing countries such as Bangladesh, Sri Lanka, China, the Philippines, Brazil, Mozambique and elsewhere. The goal of the program is to reach isolated and remote villages, and to spread the word about the importance of potassium as fertilizer for agriculture. ICL personnel work with agronomists, researchers and government agencies around the world to provide training services through the IPI.

In 2014, ICL launched two new programs, one in India - Potash for Life and the other in Ethiopia - Potash for Growth.

India - Potash for Life and Ethiopia - Potash for Growth.

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Chapter 3: Environmental Responsibility

For decades, ICL has researched, trained for and encouraged balanced fertilization in order to achieve larger and better-quality yields, while Commenting on the Potash for maintaining soil fertility for future generations and converting land Growth program, Stefan Borgas, previously considered less fertile into agricultural land. President & CEO of ICL, said: “We are honored to play a role in Ethiopia’s rapidly growing agricultural sector by contributing our broad expertise in helping farmers to optimize Identify their agricultural output, as well as our financial support, to enable Ethiopian government agencies issues to boost the country’s agricultural productivity. We unique to the believe that the Potash for Growth program will locale yield substantial benefits for the Ethiopian farming Find a local community, and, in the long-run, for food security Hold partner – in Ethiopia. By partnering with Ethiopia’s Ministry international of Agriculture, Regional Bureaus of Agriculture and the ATA, we hope to demonstrate the vital role of s university day Symp seminars eld os , fi ium balanced fertilization in creating sustainable food ts s or research en , w m o production in Ethiopia”. ri rk e s p V h institute Commenting on the Potash for Life x ng al o e vi u p e e s d li il , l e lu p e b s program, Bhola Ram Singhrol, a i t u F is R r b , a s e l s g r s t i t n io c i e e a o n groundnut farmer in Chhirah Village l e a t e m i p r o S r c n o a h s (Bilaspur district, Chhatisgarh), said, m F

e

D “Potash boosted my farm’s productivity and my Concept

income improved significantly”. U

s

s p s Change n r d o n D i t a e i o i t e k d t L e n a e , a a o c a d i l c l fl e e l Hold local M b m a Local e r s y c u t o o s ic l p , n l r , b st Po fo s seminars r r s p training o a lt o c te u h h , s s u co re k r nvi ate r es nce lid o , Re-va w de s, m m o p siu lot po s Sym

Publish Training days professional for farmers papers

Projects led by ICL agronomists operate according to the stages depicted in the diagram

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Chapter 3: Environmental Responsibility

Stage

6: End of product life Integrated Processes at ICL ‎ Integrated Value Chains Provide Significant Synergies and Logistics Advantages Integrated Industry Approach

In order to minimize its environmental impact at the end of the product life, ICL has embraced the Integrated Industry approach. According to this approach, the industrial production process should shift from Source Raw Materials Major Intermediate & Finished Products a linear process, in which resources and capital pass through the production chain and eventually become waste, to a closed process where waste can serve as input for other production processes. Elemental P S ICL’s highly-integrated value chains use sophisticated processes, and Phosphorus 2 5 utilize by-products and waste products to enable the cost-efficient Phosphate Salts The Negev Food Additives conversion of raw materials into higher value-added products. Below PCL POCL Desert - 3 3 are some examples of how ICL uses the byproducts and waste Wildfire Extin- Israel Food Grade Phos- guishers produced in one process as raw materials for another: Fertilizer Grade phoric Acid Phosphate Phosphoric Acid Rock Food Hygiene 1. The Company’s bromine production begins with using bromine Special Grade produced from the brine created as a byproduct of potash Acid Alumina & Magnesia Based Products production. This brine has a higher bromine concentration than The Dead Carnallite Sea - Israel Phosphate the water in the Dead Sea. Potash Fertilizers

2. The Company produces magnesia from solutions rich in End Brine Compound Fertilizers magnesium chloride that are produced as a byproduct of the Salt (NaCI) potash production process at Sodom. Magnesium Specialty Fertil- Chloride Solution Crude Magne- izers sium 3. A byproduct created by the magnesium production process is Pure Magnesium collected and sent to the ICL Rotem Negev plant, where it is used Magnesia Prod- ucts (MgO) as raw material. Chlorine Magnesium Alloys Magnesium 4. ICL Fertilizers uses sylvanite, a byproduct of magnesium alloy Chloride Bromine Compounds production, to produce potash. Elemental Bromine Potash Polyhalite Chlorine 5. ICL Industrial Products uses the chlorine emitted in the production based Biocides of magnesium alloys to produce bromine. Mines - UK Salt (NaCI) & Spain OPFR & Others 6. ICL Rotem is using a byproduct from sulfur filter cake as a basis Sylvanite Potash for concrete (for detailed information about this solution, see ICL’s 2013 Corporate Responsibility report, “Environmental Responsibility - Treatment of Waste and Byproducts - Recycling Byproduct From the Sulfur Filtration Process as Road

Infrastructure”. Fertilizers Industrial Products Performance Products DSM Product Sold

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Chapter 3: Environmental Responsibility

Environmental Performance & Measures for Improvement Energy Consumption Performance

Total energy consumption at ICL Direct energy consumtion at ICL (direct and indirect) (direct and indirect) Million GJ Million GJ

Other Indirect Energy 27.8 28.0 Naphta Direct Energy 26.8 26.8 26.6 27.1 6.3 6.0 23.3 5.9 6.7 Diesel 5.2 6.4 4.4 Oil Shales 21.6 21.5 22.0 21.0 20.4 18.8 20.2 Fuel Oil (mazut) Direct energy: energy produced through conbustion of fuels at the company's Natural Gas owned facilities. 22.0 Indirect energy: purchused from external 21.6 21.0 21.5 20.2 20.4 suppliers (ususally electricity and steam). 18.8

20082009 2010 2011 2012 2013 2014

2008 2009 2010 2011 2012 2013 2014

In 2014 and for the first time ever, the great majority of ICL’s Israeli facilities used natural gas for all year-long combustion operations. The now near-completed transition to natural gas brings both cost reductions and environmental benefits to ICL. Also, the self-electricity production capacity of the Sdom power plant continued to increase in 2014. This has resulted in a slight increase in the overall ICL direct energy consumption, but also created a parallel decrease in externally purchased indirect energy consumption. The electricity from ICL’s own electricity generating facilities is preferable from its perspective, both in terms of cost and environmental consequences.

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Chapter 3: Environmental Responsibility

Energy per Potash production Measures for Energy Efficiency GJ consumed / Metric ton produced

2.48 2.36 2.26 2.31 As part of its comprehensive residual heat in production plant The current ICL energy efficiency 2.13 2.20 2.03 approach to reducing environmental stacks, greater efficiency in the plan has reduced expenses by impact, ICL invests significant effort production of compressed air and approximately USD 20.5 million to increase the efficiency of its steam, and deployment of advanced overall in 2013-4. Cumulative energy energy consumption and to reduce systems for automatic shutdown savings since the Energy Center of the amount of energy consumed at of power, light and air-conditioning Excellence began operating some its facilities and sites. In early 2013, systems. In addition, ICL works to ten years ago is currently estimated the Company launched a new global instill behavioral changes that reduce at approximately USD 70 million energy efficiency program, as part of a energy use. (not including the savings from the 20082009 2010 2011 2012 2013 2014 corporate-wide ACE (Ambition Creates transition to natural gas, see below). Excellence) efficiency plan. The program is intended to become one of the Company’s principle engines of efficiency over the next few years.

In 2014, the ICL-PP Ladenburg (Germany) site implemented ideas for energy savings taken from the “think-tank” of the ACE project and the Company’s internal improvement contest. The main objectives of this initiative, executed within the framework of the annual “Energetic Energy per Phosphate production Evaluation”, were to reinforce GJ consumed / Metric ton produced awareness of environmental issues

3.90 3.93 and energy efficiency and involve 3.87 3.81 3.89 3.70 employees in these matters, to 3.33 get an overview of the individual energy consumers, to optimize energy efficiency in the Company’s production processes and its buildings and eventually, to achieve cost savings and become even more competitive in markets in which the Company operates.

20082009 2010 2011 2012 2013 2014 The main areas where efficiency projects have been implemented to date include optimizing the control and use of equipment used in production processes, re-using the

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Chapter 3: Environmental Responsibility

Following is an overview of some of the new and ongoing projects and initiatives for energy efficiency, occurring at ICL companies around the world:

Site name & Type of Initiative Short description Site name & Type of Initiative Short description Location Location

ICL Dead Sea Independent power ICL Fertilizers operates its own power plant at Sodom, presently limited to ICL Germany Energy saving system Installation of frequency transformers and direct heating systems, in production facilities about 60 MW. Knapsack implementation place of indirect heating systems, and condensate use for reducing steam consumption. Reduction of electricity consumption by constant theoretical In 2012, construction of a new power station in Sodom fueled by natural production between 2003 and 2013: from 2.4 to 2.1 GW gas was approved with a license to produce approximately 290 MW which will meet the electricity requirements of the production facilities at Sodom. Operation of the new plant is planned for the second half of 2015. ICL Iberia, Spain Energy efficiency Reducing radiation losses on Fluid Bed Dryers by covering the improvements primary air intake and installation of a lighting control system and speed control in pumps. ICL Rotem Independent power The Sulfuric acid plants and PMA plant (which uses oil shale as a source production facilities of energy), have a total a production capacity of 40MW of electricity and 340 tons of steam per hour. These cogeneration power plants have a ICL The Energy saving system Implementation of an adiabatic cooling system that re-uses the heat of very high efficiency level, exceeding 85%. The power plants at the sulfuric Netherlands implementation the incineration process. Expected decrease in CO2 output of 833 ton per acid facilities at Mishor Rotem also receive residual heat emitted from the Heerlen year. Project was approved, implementation expected in Spring 2015. sulfur combustion and conversion process.

ICL U.S. Lawrence Plant-wide energy Lighting upgrades: LED technology deployed with timers and motion modeling for steam, detection; Steam system controls installed including timers and ICL U.K. Independent power The cogeneration station operated by ICL U.K. currently has an electricity gas, and power automation (saving $16k annually); VFD upgrades; SHMP heat recovery; (Cleveland Potash) production facilities production capacity of approximately 5 MW and produces 12 tons of HVAC upgrade to reduce city water use steam per hour. This installation has been in operation for many years and the re-engineering of the entire plant is currently underway. ICL U.S. Indiana Energy saving system Conversion of lights in the facility to low wattage CFLs and installation implementation of movement sensors for easy on/off when not in use. ICL Germany Independent power In 2014, ICL-PP Ladenburg began operation of a new CHP (combined heat Ladenburg production facilities and power) plant with a production output of 2 MW of electricity, 1 MW of steam and 1 MW of hot water ICL Mexico Nuevo Energy saving system Equipment (pipe) insulation and redesign of compressed air lines. Leon implementation Conversion of fluorescent lamps to LED lamps.

ICL Israel Conversion to use of In recent years, the Company has begun to use natural gas instead of facilities natural gas heavy fuels (fuel oil, diesel and naphtha) to power its production plants ICL Iberia Energy saving system Replacement of diesel lift trucks and forklifts for electrical ones, involving in Israel. The process was near completion in 2014, with approximately (Fuentes) implementation greater efficiency in energy consumption and a reduced carbon footprint. 95% of ICL’s facilities using natural gas. The economic savings created by the transition is approximately USD 200 million annually, allowing the company to take full advantage of the potential savings and increased ICL U.K. Indirect energy Maximizing Load Size - Estimate 100 reduced lorry movements energy efficiency of the natural gas. Nutberry reduction (Scope 3) per year @ average mileage 320 per vehicle initiative

ICL Germany Energy saving system In 2014, the Company certified Energy management according ISO 50001 ICL The Indirect energy Commuting - Bicycle-plan: the Company offers employees the opportunity Ladenburg implementation (Energy Efficiency Regulation) and it compiles all necessary descriptions in Netherlands reduction (Scope 3) to buy a bicycle in a cost effective way. its integrated QHSE Management System. Heerlen initiative

ICL U.K. Renewable energy The Company is currently exploring options for establishing wind farms on Nutberry Company’s land located on the edges of the Nutberry peat moors. Project planning and execution is estimated to require 3-5 years.

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Chapter 3: Environmental Responsibility

ICL performs a comprehensive annual begin any new CDM projects but it Greenhouse Gas Emissions calculation of GHG emissions in continues to implement the projects the great majority of the numerous already operating in this framework, production facilities that it operates, including the reduction of greenhouse & Climate Change and has analyzed the carbon footprint gas emissions at ICL Dead Sea ICL Joins the Cool of over 60 of its products. Magnesium and ICL Haifa. Farm Alliance The Company reports its GHG Performance In late 2014, ICL became a member emissions annually to the voluntary Carbon Footprint company of the Cool Farm Alliance mechanism of the Israeli Ministry 139,456 of ICL Industrial (CFA). The CFA is a non-profit of Environmental Protection, and Products collaboration between leading global submits to the Carbon Disclosure companies from the food and fertilizer Total ICL GHG emissions by categories The carbon footprint of ICL-IP Project (CDP), a comprehensive report industries, and leading universities. Tonnes of CO e products include calculations for 45 on GHG emissions and corporate 2 The CFA's mission is to enable millions manufacturing processes. strategy on climate change. 843,280 of growers globally to make more These include: 21 flame retardants; informed on-farm decisions that 7 industrial solutions; 6 magnesia; 5 Grand Total: reduce their environmental impact. microbial solutions (former biocides) Voluntary Reporting Focusing on greenhouse gases in the and the remaining intermediate Mechanism for first phase, the Alliance provides the materials used for production Greenhouse Gases 2,701,244 Cool Farm Tool (CFT) as a quantified 1,718,507 processes, including bromine. This is the fifth year in which ICL is web-based decision support tool reporting to the voluntary mechanism SKM, a certified, professional that is credible and standardized. Scope 1 - Direct Emissions for greenhouse gases inventory company, oversaw the entire The CFT has already been tested and Scope 2 - Indirect emissions from energy consumption reporting. The Company was one of Scope 3 - Other indirect emissions calculation process, which was adopted by a range of multinational the first to volunteer to participate completed according to the companies who are using it to work in this reporting mechanism PAS 2050 standard. with their suppliers to measure, administered by the Israeli Ministry manage, and reduce GHG emissions of Environmental Protection, and is in the effort to mitigate global climate contributing to the development of change. Through its involvement in ICL’s GHG emissions were reduced by the mechanism through continual Measures for ICL’s Goal for Reduction The Company ensures operations the CFA, ICL hopes to contribute from 8% between 2013 and 2014. The main contact with the authorities and Reduction of in Greenhouse Gas are in compliance with regulations, its accumulated experience in the reasons for the decrease were: participation in relevant forums. Greenhouse Gases Emissions e.g. European restrictions and quotas carbon footprint field, and to further Transition to purchasing most ICL strives to be a leader in the Israeli In 2013, ICL’s management decided for permitted volumes of GHG examine, together with the company's of ICL's external electricity in and global chemical industry in the on a new, updated reduction target: emissions. The Company’s factories in customers, the carbon intensity of Israel from the privately-owned effort to reduce emissions in general, achieving a 30% reduction of 2008 Israel report quantities of pollutants ICL's various marketed fertilizers, in OPC Rotem power plant which and greenhouse gas (GHG) emissions, emissions levels by 2017. This goal released into the environment relation to both the production phase is natural gas-based (replacing in particular. In accordance with this was designated to be achieved through according to the provisions of a and the use phase. IEC national Israeli grid electricity policy, the Company set a quantitative the reduction efforts described in new Israeli law regarding the duty which is partially coal-based); goal for reduction in GHG and is this chapter. However by the end of to report polluting releases into the Carbon Disclosure Project (CDP) For the first time in 2014: taking a variety of measures to meet 2014 - ICL already met and even atmosphere (Pollutant Release and Due to the high level of the transparency in its 2014 report to the CDP, ICL conducting full-year natural gas- it, including reducing GHG emissions surpassed this target, as the 2014 Transfer Register—PRTR). achieved a disclosure score of 98 (out of 100). This is the second consecutive in production processes (including the GHG emissions were reduced by based operations at the great Some of ICL’s projects to reduce year in which the Company was awarded this high score, despite the increasingly transition to natural gas, replacement 35% compared with the 2008 base majority of ICL's facilities in Israel; greenhouse gas emissions are stringent reporting and implementation requirements. Furthermore, by virtue of of protection gas in magnesium year. Therefore, a potential update of its efforts to reduce emissions, ICL was, for the first time, awarded the maximum Increased independent power approved by the Clean Development production, reducing N2O emissions the reduction target is currently being score of A in the performance index, and was included in the CPLI index: a short generating capacity at ICL's Mechanism (CDM), through which in nitric acid production, and energy considered. In addition, the target may list of companies which were especially outstanding in emissions reduction and in facilities (instead of external ICL has generated revenues of efficiency initiatives) and development be updated in the event of a substantial addressing climate change. This score places ICL among the world's leading 150 electricity which is more carbon approximately USD 14 million over of new products that contribute to decrease/increase of production at the companies, and is the highest score for an Israeli company, and the second best intensive). the years. During 2014, ICL did not GHG emissions reductions. main ICL companies. score of all fertilizer manufacturers in the world.

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Chapter 3: Environmental Responsibility

NOx emitted per production Air Quality kg emitted / metric ton produced

Phosphate production Performance Potash production

10.9 NOx Thousands of tonnes per year 1.86 1.37 7.4

SOx emitted per production SOx 3.4 3.4 kg emitted / metric ton produced 0.40 0.45 2.3 2.0 1.12 Thousands of tonnes per year 1.8 Phosphate production 0.81 Potash production 0.74 0.73 0.22 0.17 0.17 0.50 0.44 0.37 20082009 2010 2011 2012 2013 2014 20082009 2010 2011 2012 2013 2014

5.22 5.05

9.1 4.70 8.3 4.28 4.32 4.63 3.98

5.9 5.4 5.6 4.9 4.8

0.79 0.96 0.27 0.20 0.3 0.10 0.02 20082009 2010 2011 2012 2013 2014

20082009 2010 2011 2012 2013 2014

0.50

0.42 6,066 5,355

0.23 PM emitted per production 0.23 0.17 0.17 0.15 PM 0.24 kg emitted / metric ton produced 0.23 Tonnes per year 1,953 0.13 1,761 Phosphate production 0.07 0.07 0.05 0.04 1,085 Potash production 866 840 834 738 20082009 2010 2011 2012 2013 2014

2009200820072006 2010 2011 2012 2013 2014

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Chapter 3: Environmental Responsibility

Measures for business licenses, through the use of which was achieved for the first Overview of several projects and initiatives for reducing air emissions that Reduction of accepted technologies. Moreover, ICL time in 2014. Further details on the have taken place at ICL’s facilities in Israel: Emissions is taking steps to reduce air emissions methods applied to achieve these of various pollutants in various ways, reductions are described below. During production, ICL’s facilities emit such as implementing innovative Site name Type of Initiative Short description air pollutants that could be harmful to Over the past few years, ICL has emission prevention solutions and & Location people or to the environment if they invested significant recourses in switching to cleaner fuels. As a result, were released into the environment adapting its production sites to the ICL Fertilizers Emission reduction A master plan is in place to reduce point source and fugitive emissions into since 2008 the Company’s SOx facilities initiatives the atmosphere. An additional master plan is being implemented to install in concentrations or amounts provisions of the Israeli Clean Air emissions have been reduced by continuous control and detection measures in the stacks. exceeding the permitted levels. The Law. As of the date of this report, ICL 47%; NOx emissions by 84% and materials emitted include nitrogen Magnesium and the ICL Industrial PM emissions by 61%. Moreover, oxides (NOx), sulfur oxides (SOx), Products plant in Naot Hovav Absorption system Independent power In 2014, the upgrading of the absorption systems was completed and PM emissions have been reduced implementation production facilities tested. volatile organic compounds (VOC's), (Bromine Compounds) have received by more than 99% compared to particulate matter (PM) and others. air emission permits, and other 2005. The specific decreases in all The Company is careful to ensure all facilities that submitted applications of these emissions (NOx, SOx, PM) ICL Rotem Absorption system Upgrade of the absorption systems.. necessary measures are in place to (e.g. the remaining ICL-IP plants and between 2013 and 2014, in both (fertilizer facility) implementation prevent the uncontrolled emissions ICL Rotem), are preparing to receive absolute and relative terms, can be of these substances, in accordance emission permits. mostly attributed to the full-year ICL Rotem Zin Emission In 2014, a project for the installation of two large extraction and filtering with the provisions of the law and the operation of natural gas in the great reduction system systems to reduce emission of particle materials was completed. conditions set forth in the Company’s implementation majority of ICL's facilities in Israel,

ICL Dead Sea Emission Dust extraction and filtering systems were installed in the potash production (DSW) reduction systems facility, a central dust extraction and filtering system was installed in the implementation facility for production of granulated potash, and a system was purchased and installed for piling up potash, equipped with dust containment prevention systems.

ICL Rotem Air quality A placement of a detection system on the fences and the stacks was monitoring system completed. implementation

ICL Rotem and ICL Air quality Currently preparing to establish a system of air quality monitoring stations, Rotem Periclas monitoring system in coordination with the and the environmental authorities. implementation

ICL Haifa (F&C) Emission reduction An ammonia emissions reduction project is underway. A demister is being initiatives installed in the stack of the nitrate ammonia manufacturing facility.

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Chapter 3: Environmental Responsibility

Water Consumption*

Performance

Fresh Water Grid/tap water and potable well water millions of cubic meters 17.4 America Israel Europe 17.1 17.0 16.3 17.0 16.5 14.7

20082009 2010 2011 2012 2013 2014

Non-Fresh Water Brine, brackish water, river water and rainwater Millions of cubic meters 57.8 America Israel Europe 55.8 56.7 53.5 50.8 49.1 46.7

20082009 2010 2011 2012 2013 2014

* All Figures exclude annual water withdrawal from the Dead Sea, which is regarded as raw material. For details of ICL's usage of Dead Sea water, see the "Sustainable Management of Mining Operations in the “Dead Sea" chapter of this report.

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Chapter 3: Environmental Responsibility

Measures for Efficient Water Consumption Site name & Type of Initiative Short description Location

ICL The Water-recycling Recycling of clean-out water - 13 cleanouts x 3 drums x 5 m3 = 195 m3 / Water is the most widely consumed responsibly. In particular, ICL attempts consumption (mostly for washing Netherlands initiative year, to be used in wet dust collectors. The process starts with collecting resource by humanity and the single to reduce its use of potable water phosphate rock) by 6%. The 5% Heerlen the cleaning water in a basin, pumping it into a water buffer tank, and from the buffer tanks, feeding the wet-dust collectors. most essential foundation of our in production processes and to find overall decrease in non-fresh water existence. Israel, where ICL conducts a ways to use brackish water that is consumption between 2013 and 2014 ICL China Water-recycling During production, cooled steam water is added to the recycling cooling significant part of its operations, is an unsuitable for drinking. was mostly derived from ICL-Dead Sea Shandong initiative water (total water volume of approximately 7,550 m3 per year). arid country with a water deficit that (DSW) which decreased its brackish The 3% decrease in fresh water has intensified over the years. well water consumption by 11% consumption between 2013 and ICL U.S. Water-recycling Recycled water includes cooling water returned from SHMP plants, between 2013 and 2014. Lawrence initiative compressors and rotary cooler. Estimated 35-50% recycling rate or ICL takes various steps to use this 2014 was mostly derived from ICL 267,000 m3 per year. precious resource efficiently and Rotem, which reduced its grid water

ICL Canada Water-saving initiative Since 2012, large amounts of waste water are used for lawn irrigation. Kamloops The site discharges relatively small amounts of water, mainly from tank Overview of new and ongoing projects and initiatives occurring at ICL companies around the world for reducing water cleaning and storm runoff. This runoff is mixed with spec. retardant and used as fertilizer on the site’s green space. consumption and re-use of effluents:

Site name & Type of Initiative Short description ICL Brazil Sau Water-saving initiative The ICL factory in Brazil initiated a dedicated process of reducing its Location Paulo (SJDC) quantities of wastewater. This process included a decrease in water consumption for cleaning operating equipment. In addition, collected rainwater is specially monitored to reduce its exposure to phosphates, so ICL China Lian Water-saving and Water-saving facilities were used in the workshop, e.g. the methanol that clean rainwater can be released into the environment and not require Yun Gang recycling system warehouse cooling water and cylinder cleaning water were recycled, external treatment. implementation water-saving valves were used. Recycled water: 2200 m3/year, percentage of total consumption:21.25%. ICL Dead Sea Desalinization facility In Q4 2013, a desalinization facility with a capacity of 25 cubic meters (DSW) per hour has begun operating, and now supplies water for drinking and showers, and water for the pure potash plant. DSW does not use any fresh ICL Ireland Water-saving initiative Revised clean down procedures conducted to reduce the need for clean water but rather consumes brackish well water not suitable for drinking Wexford down (using water) between two similar formulations and desalinates it for use by employees and the plant.

ICL The Water-saving initiative Recycling of up to 50% of internal water. Reduce waste water in all ICL Dead Sea Water-recycling DSW re-uses the treated water from the wastewater treatment plant for Netherlands processes, e.g. re-use of effluents for use in water-treatment (app. 10%) (DSW) initiative various facilities in the factory, such as scrubbers that reduce air pollution. Tereuzen In 2014 DSW recycled around 120,000 m³ of water, which were then returned into process.

ICL Germany Water-saving initiative The plant’s technology allows for effective water conservation, e.g. use of ICL Haifa Desalinization facility The Company operates a desalinization facility for brackish water Bitterfeld vacuum technology with steam jets (indirect cooling). Additionally, several (F&C) extracted from wells on the plant’s grounds, which are then used for saving initiatives (e.g. erection of a condensate collector tank) and process production processes and in steam boilers in the Company’s plant and optimizations (e.g. multiple use of water for the product washing process) neighboring plants and also discharges significant amounts of fresh water were implemented in previous years. which is then used by the Israeli national water sector.

ICL Haifa Water-recycling The plant recycles wastewater for re-use as salt-free water in boilers; re- ICL Germany Water-recycling Rainwater retention system - rainwater to be used as washing water in the (F&C) initiative uses absorbed water for use in the fertilizer solutions facility, and when Amfert initiative process. possible, the fertilizer solutions facility recycles leftover water from trucks and cleaning water for trucks. ICL The Water-saving initiative Re-use water in scrubbers as acidulation and granulation water (5 m3/ Netherlands hour). ICL Haifa Water-saving initiative In 2014, the liquid solution plant was upgraded – tankers are directly filled Amfert (F&C) via gravitation without the use of pumps; these tankers require washing between fillings and the plant began recycling the reactor and tanker wash ICL France Water-saving initiative Revised clean down procedures to reduce the need for clean down (using water for an extra washing cycle, thus reducing the amount of water used. Caffiers water) between two similar formulations. ICL Canada Water-saving initiative Since 2012, large amounts of waste water are used for lawn irrigation. Kamloops The site discharges relatively small amounts of water, mainly from tank ICL Germany Water-saving initiative Condensate used as replacement of freshwater. cleaning and storm runoff. This runoff is mixed with off spec. retardant Knapsack and used as fertilizer on the site’s green space.

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Chapter 3: Environmental Responsibility

Solid and Liquid Waste and Byproducts

Performance

Wastewater Global ICL Solid Waste Output Millions of cubic meters (thousands of tonnes)

Non-hazardous Waste 33.4 33.5 32.4 31.1 Hazardous Waste 19.5 30.0 29.8 28.1

90.1 20.0 25.5

68.0 59.0

20082009 2010 2011 2012 2013 2014 2012 2013 2014

Solid Waste treatment methods (% of total ICL waste output of each year)

Landfill Wastewater per production Recycling / Reuse 57% Incineration 3 M / Metric ton produced Stored on site 49% 47%

Phosphate production 49% Potash production 21.84 46%

19.16 17.65 15.79 38% 14.41 14.07 13.47

4% 4% 3%

2% 3% 0.43 0.96 0.93 1.08 1.00 1.03 0.96 0.1% Note: All Figures exclude annual brine return to the 20082009 2010 2011 2012 2013 2014 Dead Sea, which is regarded as a part of the raw material cycle. For details of ICL's influence of the 2012 2013 2014 Dead Sea, see the "Sustainable Management of Mining Operations in the Dead Sea" chapter of this report.

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Chapter 3: Environmental Responsibility

Measures for Treatment of Zoom In - Wastewater Treatment in ICL Rotem Overview of new and ongoing projects and initiatives at ICL companies around the world in regards to waste and Solid and Liquid Waste and wastewater reduction and treatment: Since 2005, ICL Rotem has been implementing a comprehensive Byproducts project to reduce the quantity of effluents, allowing it to streamline During production processes at ICL’s facilities, processes and recycle wastewater for two main uses: bringing them Site name & Type of Initiative Short description industrial solid waste and wastewater are back to the process (production facilities), or for wetting of unpaved Location produced. According to the discharge permits, roads (dirt roads). ICL Dead Sea Pilot Facility for The plant is currently operating a pilot facility for solids filtering, designated wastewater is channeled into water sources or The benefits of using recycled wastewater are many, including the Magnesium Filtering Solids to reduce the concentration of particles suspended in wastewater, using evaporation ponds. re-use of raw material, reducing water consumption in the process, filtration sack technology. In this method, coagulants and flocculants As mentioned before in the report, ICL minimizing the need for transporting wastewater out of the plant connect the suspended particles to each other, forming heavier clusters implements an Integrated Industry approach (sewage ponds) and wetting of unpaved roads which contribute to that settle and can be filtered. This technology is currently in the pilot for which waste serves as an input for new the reduction of particulate emissions (dust) caused by trucks and phase and aims to convert the wastewater to clean water, with a max production processes. In addition to the heavy vehicles riding these roads. concentration of suspended particles of 20 mg per liter, as required by various projects listed in connection to the the permit for discharging into the sea. During pilot operation, promising There are number of sources where wastewater recycling is Integrated Industry approach, ICL takes results were achieved. The pilot was approved, and preparations for full- carried out at ICL-Rotem facilities: various steps to reduce at the source (in terms scale facility are currently taking place. Due to some technical issues raised, of the flow) the quantity of waste produced Drainage pool - this is a storage pool for low acidity water the operation of the facility was postponed to end of March 2015. in its companies, and to increase recycling of transferred from the site. The water from the pool is then reused for both washing the phosphate facility in the treatable waste. ICL Neot-Hovav Wastewater- Imposing “ecological tax”, an internal tool that includes the cost of enrichment plant and as low acidity water returned back to the In 2014, the total ICL wastewater amounts (Bromine treatment initiative wastewater treatment in product pricing. processes in the fertilizer plant and in PAMA (Energy Resources remained virtually unchanged compared with Compounds) Development) facility. 2013 (+0.5%). Wastewater amounts have ICL Dead Sea Wastewater- In 2013, a new installation for breaking down solutions (produced as nonetheless remained significantly lower Each year 383,000 cubic meters of water are recycled through Bromine treatment facility a byproduct of the chlorine production), began to function fully at the (-11%) than in the base-year of 2008. the Drainage pool, of which 313,000 cubic meters are transferred in favor of the phosphate washing in the enrichment Dead Sea Bromine-Chlorine site. The installation, which began as a pilot The most significant reason for the reduction plant and then transferred to the ‘Dekel’ pool, and 70,000 cubic in 2011, is used to neutralize all of the hypochlorite produced by the site of the total ICL solid non-hazardous waste meters are delivered for reuse in the fertilizer and PAMA plants. and thus, to save inputs used to neutralize wastewater, improve control of in 2014 (compared with 2013) was a major wastewater in the chlorine plant, allow at-source prevention of nuisances ‘Dekel’ pool - this is a storage pool for water containing decrease in the amount of gypsum waste sold from bromine and to increase involvement, and awareness, of workers and evacuated for recycling purposes at ICL fine particles of phosphate coming from the process in the Haifa (F&C). This was also the main reason for phosphate enrichment plant (313,000 cubic meters) and for ICL Haifa Wastewater- In 2014, the plant took action for directing the flow of the Ammonia water the slight reduction in recycling rates in 2014. plain clear water (approximately 727,557 cubic meters a year). (F&C) reduction initiative to the wastewater treatment facility. In addition, a number of biological The previous major waste reduction in 2013 Fine particles of phosphate sink in water. pilots were conducted to find a solution for complying with standards resulted primarilyfrom a significant decrease Approximately 1,040,557 cubic meters of water are recycled related to treatment of a part of the plant’s wastewater (which flows into in construction projects (construction wastes each year through the ‘Dekel’ pool and reused by ICL for the Kishon River), as directed by the Inbar Committee. The solutions were usually form a dominant part in the total wetting of unpaved roads in the mine. presented to, and discussed with, the Israeli Ministry of Environmental annual non-hazardous wastes of ICL). Calcium sulfate pools - these are storage pools for calcium Protection. The 2014 increase in hazardous waste output sulfate coming from the Phosphoric acid plant and for ICL Rotem, Wastewater- Since 2005, ICL Rotem is implementing a comprehensive project to reduce is mostly attributed to a major evacuation wastewater coming from the fertilizer plant (drainage of 249,500 Israel treatment initiative the quantity of effluents. of hazardous wastes (that were stored in cubic meters of water per year from the fertilizer plant’s previous years) at ICL Neot-Hovav. absorption systems). The calcium sulfate sink in the pools and ICL Iberia Wastewater- A multi-year program is underway to restore salt piles while paying close the water are all returned back to the Phosphoric acid plant to (Iberpotash) treatment initiative attention to the issue of wastewater drainage and sludge treatment. be reused in processes.

Condensate water from the MAP facility at the white acid plant ICL Dead Sea Sanitary-waste A project was completed for the restoration of 100% of the facility runoff - water which contains ammonia and phosphorus oxide is (DSW) treatment initiative water, to improve the treatment of the facility’s sanitary waste. In addition, transferred to, and reused in the phosphoric acid plant as raw a detailed plan was approved for restoration of the bulky waste at the plant materials. In 2014, 57,500 cubic meters of condensate water site. were transferred to the phosphoric acid plant for reuse.

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Chapter 3: Environmental Responsibility

Site name & Type of Initiative Short description Location

ICL Neot-Hovav Facility for biological The ICL IP segment operates a facility for biological treatment of the plant’s (Bromine treatment of the wastewater. Compounds) wastewater

ICL Global Wastewater- The ICL IP segment operates a special authorized laboratory for treatment initiatives monitoring and analyzing wastewater quality. It is, among other issues, invested in developing a variety of processes for upstream treatment to increase recovery of materials and byproducts and improve the quality of wastewater while achieving significant financial savings. One example is the pilot process for treating wastewater from the production of FR-245, in which there are high concentrations of salt and organic materials (For additional details about this pilot, see ICL’s 2013 Corporate Responsibility report, “Environmental Responsibility - Water Consumption”).

ICL Neot-Hovav Independent he independent wastewater removal system at the plant includes a local (Bromine wastewater removal drainage system and the plant’s own evaporation ponds. The system Compounds) system was built according to U.S standards, which include leakage monitoring and air monitoring. In 2013, construction was completed and beginning in late 2013 all the plant’s wastewater is being transferred into the new evaporation ponds.

ICL Neot-Hovav Sanitary facility The plant operates a sanitary facility plant for the independent treatment (Bromine of sanitary effluents. The treated sanitary water is used in its cooling tower, Compounds) which is needed to reduce the heat of most production processes in the plant, and consumes approximately 600 cubic meters of water daily. ICL Dead Sea Wood recycling An Improvement Team initiated a simple solution for recycling wood waste Currently, approximately 10%-15% of the water used in the cooling tower is initiative that was previously transported to landfill - after unloading new wooden recycled, and used in employee showers and the kitchen. pallets, wood waste from prior shipments is loaded onto the trucks and transported by the construction contractor for recycling and reuse. This solution, which reduces the volume of waste at DSW, saves freight costs, ICL Rotem Thickening and The ICL IP segment established a condensation and filtration facility to treat landfill fees and levies and a credit is received on the deposit for this wood Periclase filtration facility solid waste at the plant. The facility has completed its test run stages and waste. commenced operation.

ICL Neot-Hovav Wood recycling Through a unique collaboration with the Summit Institute Foundation, which ICL Neot-Hovav Waste- treatment In accordance to the requirements of the Israeli Ministry of Environmental (Bromine initiative promotes the rehabilitation of young people with mental illness, the plant (Bromine initiative Protection, the Company is required to treat the existing (historical) waste Compounds regularly contributes wooden crates in which factory equipment arrives to Compounds) and waste produced in ongoing operations. The treatment will occur, in part, the carpentry shop of the sheltered workshop, where they are used as raw at a restoration facility at Naot Hovav of hydro bromine acid, and in part, will material. be sent out for external treatment. At this stage, the facility treats ongoing waste that is created in the production processes at the facility, and the ICL Iberia, Waste recycling Through several measures implemented in the last four years, the Company facility is in the test run stages of commencing treatment of the historical Spain initiative achieved an increase of 95% in terms of kg of recycled material per worker, waste. with merely 5% total ordinary waste residue.

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Chapter Social Four Responsibility

w Materia Ra ls ICL’s Activity tation & L or og p is s t n ic Throughout a s r T the Lifecycle: d Marke En ts

& ture Pro c du fa c u t n io a n

M Back to Content Back to Content

Chapter 4: Social Responsibility

ICL’s strives to have a positive impact population and a shortage of arable This section of the report is divided on all people with whom it interacts, land. into two: or who are affected by its activities. Further, ICL’s commitment to The first part addresses ICL’s Geographic Breakdown of This basic desire is a key factor in social responsibility permeates responsibility towards its employees, the Company’s business strategy every aspect of the Company. i.e. providing a fair, safe and healthy and is rooted in its organizational Employees, 2014 From promoting ethical business work environment and investing in core values. conduct and fair labor practices to employee empowerment initiatives. ICL’s social responsibility is supporting employee development The second part addresses demonstrated in its corporate and investment in the community, ICL’s responsibility towards the ICL has built a culture of integrity strategy which is targeted to fulfill communities in which it operates and and purpose that unifies its essential needs of customers in its where its employees live. In addition, Israel employees around the world. 4,940 three end markets. Following the this part addresses ICL’s responsibility Spain 1,270 strategy, the Company identifies The Company’s social responsibility towards the general public, by the needs that are most important guides it in its response to supporting abundant initiatives that for society and selects the ones the challenge of sustainable promote education and innovation, China that are most relevant for ICL. This development and the way in which it which in turn, benefit the entire UK 1,203 614 enables ICL to develop products and manages its operations to produce public, create value and help build solutions that address the world’s an overall positive impact on its better communities worldwide. future needs e.g. fertilizers that employees and their families, as well increase food yields to meet the as that of the local community and demands resulting from a growing society at large. Responsibility Towards Employees Netherlands 494 Brazil 234 Geographic Breakdown of Employees USA 1,123 2014 2013 2012

Israel 4,940 5,238 5,198

Germany 1,539 1,317 1,267 Spain 1,270 1,205 1,215 France 343 UK 1,203 1,156 1,062

Netherlands 494 462 450

USA 1,123 1,121 1,080 Germany China 614 621 606 Other 697 1,539 France 343 351 350

Brazil 234 132 96

Other 697 549 552

Total employees 12,457 12,152 11,876

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Chapter 4: Social Responsibility

Breakdown of Workforce by Employee Attributes

The percentage of employees Percentage of group in workforce represented in the survey is above Percentage of group in workforce 60% of ICL’s total workforce. ICL is Female employees 14% constantly striving to improve the social data collected internationally Male employees 86% and it plans to continue expanding Full time employees 86% the information collected and disclosed in the coming years. Part time employees 14%

Non-managers employees 85%

Managers employees 15%

Contractor employees 13%

Security personnel the organization employs directly 0.33%

Breakdown of Employees Per Category According to Gender, Age Group and Minority Group Membership 14%86% Additional information concerning Male employees Female employees Non-managers managers employment matters: employees employees No employees under the Percentage of female 13% 17% age of 17. Percentage of male 87% 83% No employees under age 21 Percentage of individuals under the age at production sites. 19% 14% of 30 No risk of forced labor. Percentage of individuals between the Most employees, primarily in 50% 50% ages of 30-50 Israel, Germany, the Netherlands, the United Kingdom, Spain and Percentage of individuals over 50 year 31% 35% the United States, are employed old under collective bargaining Percentage of individuals defined as 1.1% 0.1% agreements. minority group members

Senior employees in special positions and members of 14% management are employed under Part time employees Very limited seasonal employment products to extinguish forest individual agreements. These (primarily used to reinforce the fires, or when employees must agreements are for an indefinite manufacturing workforce, when, be replaced during summer period but can be terminated for instance, there is a need to holidays). after giving the employee the 86% rapidly increase production of requisite notice. Full time employees

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Chapter 4: Social Responsibility

“One ICL”

Over the past year, ICL has implemented a Company-wide culture and empower program, referred to One ICL as “One ICL”. This key program, which is essentially strategic in nature, One Purpose constitutes one of the Company’s human resources strategies and One Mission is being overseen by the Human Resources and Compensation Committee.

Under the “One ICL” strategy, the Company is working to harmonize its systems (for example, by moving to a single global enterprise resource planning system) and processes and to better share best practices across the Company to ensure that it provides the best products and services in its end markets.

The Company continues to enable its employees to thrive within the organization through implementation of the “One ICL” strategy and will continue to identify and reward top performing employees and promote them to the most appropriate locations within the organization where they can be most effective, while incentivizing them through appropriate remuneration and performance assessments that will help ICL to achieve its goals.

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Chapter 4: Social Responsibility

Fair Employment for Contract Employees Fair Employment in Israel

ICL is committed to providing equal The Labor Law Enforcement Plan is to organize; prevention of forced ICL has agreements with the Company’s ongoing operations at accordance with standard auditing opportunities to its employees. This currently ongoing and is expected to employment; prevention of child subcontractors in Israel for all of its sites in Israel. procedures in order to achieve a commitment is embedded in its continue for a period of three years. labor; encouragement of equal outsourcing special services which reasonable degree of confidence that In 2011, ICL established a policies, procedures and practices opportunities; and prohibition against are not within the Company’s the data presented does not contain In addition to the Company’s Code Goldschmidt Report Sub-Center and in its prohibition against all forms discrimination and harassment of core business and for areas of any substantive errors. of Ethics, which defines rules for of Excellence for the protection of of illegal discrimination. By treating any type based on religion, race, expertise such as security, packing, appropriate conduct for the Company the rights, employment conditions The Law of Enhanced Enforcement its employees fairly, and evaluating ethnicity, nationality, gender, sexual maintenance, catering and cleaning, and its employees (e.g. respect and social benefits of contractors’ Labor Laws, which came into them solely on their merits, ICL orientation, age or disability; fair salary etc. The Company attributes great for others, equal opportunity), in employees at Company sites. The effect during 2013, includes the can target the best candidates for and labor conditions, as required by importance to fair working conditions early 2014, ICL issued its Guiding Sub-Center of Excellence is now the enforcement mechanisms that ICL career advancement. The employees, law or beyond; legal employment; for all of its employees, including Principles, certifying its commitment ICL focal point for all issues related uses as part of its Goldschmidt Report company and communities, all and maintenance of a healthy and sub-contract employees who are not to protecting the basic human rights to the Goldschmidt Report and its enforcement vis-à-vis contractors. As reap the benefits of these fair labor safe work environment, along with considered Company employees but of its employees, emphasizing the implementation. Accordingly, the part of the Company’s enforcement practices. the Company’s commitment to are employed on Company premises. Company’s position against forced uniform procedures developed plan, ICL audits its contractors who comply with antitrust, anti-bribery and ICL observes all applicable labor labor, child labor, discrimination and All sub-contract employees receive by the Sub-Center of Excellence are subject to the Enforcement corruption and trade laws around the and employment laws wherever it ensuring equal rights. information about ICL’s Code of to implement and enforce the Law, namely cleaning, catering and world. operates, including those laws that Ethics and are expected to respect The Guiding Principles includes Goldschmidt Report, are executed in a guarding contractors. The audit pertain to freedom of association, No discrimination suits were filed it. The Company does not employ the following subjects: the right similar manner at all ICL sites, allowing findings, including details about privacy, collective bargaining, by employees in 2014. workers from contractors who are not the Company to achieve maximum, the nature of the deficiencies, the forced, compulsory and child labor, committed to upholding human rights long-term enforcement when working names of relevant employees, the and employment discrimination. and fair employment criteria. with contractors. scale of the deficiencies found, and a Company’s employees are employed According to a resolution of ICL’s request to correct the deficiencies – according to the employment terms Employees Long Term In order to ascertain that contracting Board of Directors and its subsidiaries are all transferred to the contractor prevalent in the countries in which companies are in compliance Incentive Plan in Israel, from October 2004 forward, and the Company’s supervisor for they are employed. with the laws of the State and the iImplementing the Goldschmidt report contractors employing workers at ICL recommendations of the Goldschmidt In 2012, ICL began to implement ICL deeply believes that each and every one of its employees, in procedures. plants in Israel are required to pay Report, ICL implements internal and the first stages of its Labor Law whichever segment, geographical location or position, fulfils an salaries higher than those required by external audits. The process consists During 2014, two different Expansion Enforcement Plan. The objective important role in realizing the organization’s strategy, and therefore the law. According to the resolution, of examining contractors’ compliance Orders were signed by the Israeli of the Plan is to ensure that all ICL deserves to be a partner in the Company’s success. contractors are required to pay at with the threshold conditions laid Ministry of Economy and the Ministry operating activities are performed in least 5% more than the minimum out in the Goldschmidt Report which of Finance. The Expansion Orders compliance with labor laws (only in To enable employees to become partners and obtain a real wage, as well as providing pension are also embedded in the contracts add new employment benefits to Israel). ICL will achieve this through and severance fund contributions, benefit from the Company’s profits, in 2014 ICL launched a with these companies. The internal employees of cleaning and security employee training and refreshment Long Term Incentive Plan designated for ICL employees who are convalescent pay, appropriate controls require the contractor’s contractors. Some of these benefits courses, audits by labor attorneys, not granted equity by the Company (approximately 11,800 globally). uniforms and holiday gifts. auditor to check the employment had already been included in the and documentation of all labor To help assure the rights of contract conditions of a random sample of Goldschmidt Report and were practices. The first stages of the plan The objective of this plan is to strengthen the engagement and employees, in 2006 ICL’s management employees and submit a semi-annual included in the audits performed have concluded. All gaps between commitment of ICL’s employees to ICL’s growth by introducing a team fully adopted the ‘Goldschmidt report. In addition, ICL decided to by the ICL Goldschmidt Center of labor legislation in areas where ICL financial incentive. If the Company meets its growth objectives, it Report’ recommendations on the have an external auditor take a Excellence. Following these orders, has significant volume of activity and will pay every employee a remuneration of up to $1,500 a year for matter, and since then, significant random sample and conduct an ICL integrated the new benefits into ICL’s operation on the ground have their contribution to the Group’s profits, (a total ICL expenditure of efforts have been undertaken to independent audit of employment the existing requirements under been mapped. No significant gaps up to $17M a year). This amount will come in addition to bonuses implement these recommendations in conditions. The audit is conducted in Goldschmidt Report. were found, but a plan was designed and remuneration already awarded to employees by the segment in order to close the small gaps that or company in which they work. were identified.

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Chapter 4: Social Responsibility

Employee Empowerment

Employee Training and Qualification Women Empowerment provided by external experts. ICL GEC, after which the Company plans to immediately implement the As part of ICL’s goal of promoting The first phase of data collection has been completed, including gathering decisions. ICL regularly and methodically invests in the empowerment and women in the Company’s executive the organization’s processes and development of managers and employees, through training management, in 2014 the Company ICL believes undertaking this procedures, questionnaires and programs, enrichment and guidance from the Company’s began implementing an unique organizational program, will enable personal interviews with members of personnel and funding support for external training. project to enhance women’s the organization to better incorporate ICL’s Global Management Committee, integration into management multicultural and diverse thinking in ICL’s Senior Leadership Forum positions. its planning, ongoing activities and Central to ICL’s organizational job descriptions (for operating, The forum members, approximately and ICL front line managers. The work processes. In turn, this will allow development are the following maintenance, safety, security, 350 managers on various levels, hear The project’s goal is to enhance final presentation with practical initiatives: ecology and project personnel), etc. a review of the Company directly from diversity in the organization. It is recommendations was reviewed ICL to better utilize its management’s managed by a Steering Committee led potential, promote diversity and Learning Center The Learning Center also conducts the CEO. Participants are invited to by the Senior Vice President for ongoing management development ask questions online. This encourages by the Senior Vice President for Global Global Human Resources and will independent thinking, and improve An ICL Learning Center operates activities in a cross- segment format. a culture of internal communication Human Resources, with support be presented to the ICL CEO and the effectiveness of the organization. in Israel to coordinate the training and adds another dimension to the and qualification of employees and relationship between manager and managers. The center is engaged Development Program for employees, and provides managers Senior Managers in several key areas: developing with an opportunity to meet each Global Leadership Competency Model organizational solutions for subjects In 2014, ICL companies in Israel other and expand their knowledge common to ICL companies, training about the Company beyond their own In 2013 ICL began using a global, uniform Leadership continued the implementation of ess Le and management development, operating environment. Managers, Competency Model as the infrastructure for long- sin ad several development programs for u develop & in term organizational development programs B Deliver Value g professional courses, conferences, in turn, are required to disseminate e to Customer Empower the managers on different levels. h People P and as a substantive tool for developing the t e seminars and more. The center’s the information to their teams. In this Inspire & g Think & Act o Approximately 185 senior managers Company’s human resources. in Motivate p management team consists of way, information can reach all of ICL’s Strategically l p ng the ICL Teamwork e have participated in 12 cycles a ivi Va representatives from each segment. L lu managers worldwide. The core Competency Model defines, in h e of an ICL-wide program for the S s Create In addition, training and development concrete terms, the main characteristics development of senior managers, 15 Understand Personal managers have been recruited and required of executives in order to the Market Account- Lead by Attachment of whom participated in 2014. ability Example will begin operating under a Shared Talent Programs successfully perform their duties in ICL

Sservices Ccenter in Europe and the Four cycles of development programs In 2014, ICL began implementing companies around the world. It expresses Initiate & Drive A Manage Results Americas. for managers occurred in 2014, with the first stages of two pilot talent the business’ basic values and the way in p Change Integrity p s l t the participation of approximately 60 programs, one for ICL R&D personnel which the organization expects its leaders to y l The Learning Center and other i Promote u managers. behave. n Act with s and the second for CAPEX personnel. g Collaboration e units hold periodic trainings on Determination & G Across Decisiveness R The objectives of these programs is r ICL internal compliance programs, Concurrently, companies also hold During 2013-2014, ICL assessed the individual lo Boundaries Manage b Generate fo to make ICL an attractive employer a Organizational Innovative including restrictive practices, team development programs for abilities of all its senior executives for purposes l Complexity g P Perspective tin segment-level managers up to mid- (“employer of choice”) for engineers of personal and organizational development based er u securities, safety, ecology, prevention sp ec and chemistry graduates and to ec Ex of sexual harassment and ethics. management levels. on the Leadership Competency Model. A feedback tive develop suitable global learning and process was created based on these assessments and Other activities aimed at raising the training programs for the enrichment professional level of ICL personnel the information was transformed into personal development of each group. Based on the results include hiring professionals in Executive Forum – CEO plans for senior executives and team development plans for senior of the program, during 2016 ICL will different fields, conducting preliminary Communication management. In addition, this model was used to assess the training expand this program to other parts of screenings and training courses Once a quarter, since 2013, the and development needs of employees and managers. Assimilation of the competency model will be the organization. (for operating and maintenance Company’s CEO addresses an an ongoing process. The goal is to tailor the model to other central managerial processes, such as positions), and preparation of detailed Executive Forum by Webex. managerial development at all levels and planning managerial reserves.

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Chapter 4: Social Responsibility

Organizational Changes

Structural changes in ICL companies are sectors of the economy in general, Preparing Employees usually implemented with the consent and to industry, in of the workers’ union. In all cases, particular. Even when for Retirement activities related to human resources business declines, ICL ICL invests significant efforts in helping employees prepare are addressed in accordance with local makes an effort to for retirement. Some ICL companies in Israel hold a 6-14 legislation in each area of operation. protect its employees’ day retirement preparation course covering various aspects rights and to keep them on the of the transition from working life to retirement. The course payroll. Nevertheless, in includes lectures and workshops on a range of issues certain business relevant to the new pensioner such as: Employee units ICL is facing a Churn Rate major economic recession and The psychological aspects of retirement, the effect of must adapt its cost structure to make retirement on family and marriage, and lectures by ICL is proud to be a leading company the units more competitive. Hence, at a family therapist about relationships and intimacy in employment stability. Most ICL the end of 2013 and the beginning of following retirement. employees work for the Company 2014 ICL restructured its phosphate A lecture by an attorney about family property for many years, and in many cases, plant in Israel. This restructuring created arrangements, including wills and estates. for decades. ICL offers its employees a dispute between the management excellent employment conditions, as of ICL Rotem and the labor union in Lectures on health, including proper nutrition and well as professional and promotional that site. After a 33 day strike, the sides exercise, leisure and volunteering in the community. tracks. Therefore, the churn rate of ICL reached an agreement. A lecture on managing family economics, including employees is low compared to other income tax and National Insurance rights.

The frequency of the retirement workshops is determined by need, or when early retirement plans are implemented. Employee Turnover - Breakdown by employee age and gender Some of the meetings are also attended by retirees’ spouses.

Total number of Total number of employees In addition, some ICL companies provide the following new employees who left ICL during 2014 who joined ICL (for all reasons including voluntarily, assistance on career endings (retirement or termination): during 2014 dismissal, retirement or death) Severance pay measured also according to employee Female employees less than 30 years old 29 9 age and years of service;

Female employees between 30-50 years old 60 28 Assistance on transitioning to a non-working life; Other transitional assistance programs provided to Female employees over 50 years old 7 33 support employees who are retiring or have been Male employees less than 30 years old 111 41 terminated;

Male employees between 30-50 years old 145 63 Early retirement programs in which employees have an option for early retirement at three exit points (age 58, Male employees over 50 years old 30 244 60 and 62).

* The percentage of employees represented in the survey is above 60% of ICL’s total workforce

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Occupational Health & Safety

The following graphs present data for accidents and absences in 2008-2014:

Total Days Missed due to Safety Incidents Company employees only 2008-2014

3,788

3,084 Comparative accident figures for 2008-2014: 2,730 2,735 2,618 2,457 2,477 2008 2009 2010 2011 2012 2013 2014

Rate of work accidents (IR) 1.4 1.3 1.1 0.9 0.84 0.83 0.83

Rate of lost workdays (SI) 41 28 31 22 28.6 23.3 23.0

1 Nonfatal work accident requires at least one day absence following the event 2008 2009 2010 2011 2012 2013 2014

Measures for Maintaining Safe & Healthy Work Environment

Industrial production in general, and the chemical industry Total Work Accidents in particular, requires handling hazardous materials Company employees only 2008-2014 and performing processes involving high pressures and temperatures, which require taking special precautionary measures. Some ICL products, raw materials and production processes represent a high risk to anyone who In 2014, there were no fatal deviates from the required, professional safety standards or accidents at ICL. 191 from the mandatory means of safety. There were 168 people involved in 171 To ensure the safety of workers, and others, in its plants, nonfatal work accidents (131 ICL 150 135 148 ICL complies with the strict occupational safety and health Employees and 37 Contractors). 131 120 standards, prescribed by local, and international, laws ICL does not have workers involved and standards.. ICL invests extensive resources in training in occupational activities who have and mentoring, and in other safety measures, in order to

a high incidence, or high risk, of 2008 2009 2010 2011 2012 2013 2014 constantly improve occupational safety and health, and specific diseases. prevent accidents.

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Goal - Zero Accidents

ICL is aggressively pursuing a zero materials and processes in plants. Developing trained, skilled accident goal. Towards this end, ICL In 2013, the Company performed and well-equipped emergency is constantly striving for improvement extensive work with the Ernest & groups in plants to ensure and excellence in safety at all sites. Young consulting firm to define an appropriate response to risk factors and measurable ways industrial emergencies and In order to achieve this target, ICL is for further improvement; natural disasters; taking the following steps: Offering periodic medical Performing emergency drills with Implementing focused processes checkups for employees, and all kind of scenarios as per annual including a Task-oriented safety occupational medicine and plan; program and a ‘Safety on your preventative medicine programs, Mind’ program; Updating risk surveys of all in cooperation with hospitals and events that may harm the Continued implementation of experts in these fields, inside the Company if they were to occur, the Operative Risk Management plants; with the assistance of external methodology for managing and Conducting inter-company consultants, in conjunction preventing safety risks; activities to assimilate safety with the safety management Comprehensive safety training awareness information, regulations which took effect in and certification control systems disseminate lessons learned, August 2014 in Israel; for employees, service providers collect feedback, and encourage Coordinating activities and contract employees; the plans and ideas of employees; (harmonization) of safety Conducting testing and Developing a computerized management processes between Safety and health issues are included Training and education in health advanced and original ideas to environmental and hygiene control system for safety all of ICL companies; in the Company’s employment and safety issues; improve safety. Contests with prizes monitoring of occupational work and occupational health contracts. These agreements include Complaints mechanism - right to for safety achievements are held Continued implementation of areas as required by regulations management in the companies provisions such as mandatory medical refuse unsafe work; annually. the “Safety at Home” program and company policy to ensure the with an emphasis on training all examinations prior to employment Periodic inspections. (outside of work hours) which Many managers of ICL plants in health of employees; employees about the relevant and subsequent, regular medical has operated globally at ICL since ICL’s subsidiaries have safety Israel undergo a certification course safety information for their examinations, the frequency of which Conducting occupational hazard 2014. committees that include equal for work safety established by the profession; are determined by age and position. risk surveys to prevent employees representation of both management Ministry of the Economy. Work regulations consist, among from being exposed to dangerous and employees. Each committee other, instructions on a range of Safety and occupational health defines and implements safety issues, including hygiene, as well as enforcement plans are implemented instructions such as mandating the explicit disciplinary in the event of in all segments, in addition to regular use of personal protection equipment, safety violations. internal and external audits, to requiring periodic checkups for confirm compliance with the law and All health and safety topics below are employees and collecting fines for ICL instructions. Analysis of accidents covered by Company’s employment safety violations, etc. and “near misses“ is conducted at all contracts in Israel : Some of the Company’s subsidiaries ICL companies. Personal protective equipment; award ICL and contractor employees In addition to the intense activities Joint management - employee for their safe behavior and other above, ICL implements tailored health and safety committees; engage in annual safety contests projects designed to address Participation of worker between organization units. occupational health & safety matters representatives in health and The Company has established with the objective of incorporating safety inspections, audits and Improvement Teams that operate them within the corporate culture. accident investigations; at plants to develop and implement

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Safety Culture Projects

Safety Leadership ICL Fertilizers Safety ICL U.K. Managers’ Moreover, as part of the effort to Project Program Performance improve safety in employees’ homes, informational materials, and family ICL’s Safety Leadership Project The objective of this program is to Improvement Plan games to raise awareness and promotes mutual learning based strengthen the managers’ abilities The Managers Performance provide tools to minimize hazards on the understanding that ensuring and leadership skills, with the Improvement Plan implemented in ICL in and around the house, were safety is a function of a proper understanding that managers’ abilities U.K. includes the following steps: distributed in ICL plants. For example, management culture. and leadership = Safety= Capacity= Improve audit quality through Bromine Compounds employees in Quality. At Dead Sea Works, managers were coaching; Israel received a family card game on At the Company’s site in Germany, trainees of ICL assigned to units other than their The methodology used stands on safety at home, and the Company’s Increase audit numbers; own where they conducted interviews three pillars: employees in St. Louis, US, received came in third place at the 2014 German Work Safety and tests, and observed operations, Improve shift debriefs: focus on pamphlets about how to identify Routines: Managers must to study the various aspects of ‘how’ work was done, not ‘what’ “black ice“ and how to react to Youth Competition due to their contribution through ensure operations according to management, including safety. At was done; avoid accidents when invisible ice procedures in three major areas: the safety program implemented at the site, “Safety the conclusion of this phase, the Measure senior managers by the accumulates on roads. Dead Sea Management shop floor ‘embedded’ managers met with the time spent out on site. Works employees received a head Navigation – Trainees Lead Trainees”. existing managers of the units, and activities; flash light, gas detectors and fire discussed their assessments with Summary, communication detectors for Safety @ Home. them. Six months later, another and control; meeting was held in which both Safety @ Home Learning. managers examined the changes In addition to working to improve made over that period. Managers Common Language: Unify safety in the work environment, ICL were cooperative and the database for measuring, portfolio promotes employee safety beyond process was successful. management and lasting work hours. During 2014, a “Safety at improvement; Home“ program was implemented in ICL Forum of Central Project Management order to reduce dangerous accidents Excellence for Global Office (PMO): In order to sustain outside of the work environment. Corporate Safety the routine and implement a A Steering Committee was safety culture, a central PMO is established with broad geographical ICL maintains a Forum of Excellence performed. A PMO is a powerful representation (Europe, US, Asia for Global Corporate Safety which tool for intermediate managers (China) and Israel) and surveys were includes safety personnel from and senior management. conducted among employees to map ICL companies located in Israel the subjects deserving of attention. and around the world. The Forum Fire, gas and electricity were found discusses ICL guidelines and policies Human Performance to be the first subjects of interest. and showcases events and activities Improvement Employees were also instructed to held at various ICL companies. More than 150 learning and download a local first-aid application improvement working teams operate to their cellphones. The application in ICL facilities in America. These offers users tools for dealing with teams operate under the basic situations that might arise. In the next assumption that safety is not the stage, various means will be used for absence of accidents but rather the transmitting information to employees presence of defenses. about the subjects that emerged from the survey.

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Employee Health ICL has in place a three-level security Implementation of a global Fraud network at each plant in Israel: Prevention Plan; Over the past four years, ICL has an outer ring of physical security All security personnel at plants implemented a health program to including a fence, an electronic in Israel are guided by the police improve employee performance security ring including sensors, and security division. and health (reduction of risk factors an inner ring of security management for heart disease and others, and including control rooms, as well as reduction of sick days), and to operating procedures for dealing with Responding to increase job satisfaction. The program evolving threats. Information Security includes three components: In addition, the Company and Cyber Threats 1. On the personal level: individual has implemented significant In response to the steady increase in guidance to encourage activities, improvements in the security of ICL the number and severity of security fitness and nutrition. plants: and cyber threats, the Company has 2. On the work environment level: Improvements in the level of taken many steps in recent years. raising awareness of an active training and competency of ICL is implementing a program to lifestyle and healthy diet. officials in security to meet strict protect its IT and ICS (industrial control systems), which includes 3. On the service conditions level: regulations; separation of information networks improving catering and adapting Establishment of a uniform from computerized process networks, the service to a healthy diet. standard for all of ICL which physical protection of computer meets and exceeds relevant ICL is committed to its employees’ rooms, servers and terminals, standards; health as well as the health of and employee training. IT security its contractors’ employees. This Improved measures/technological personnel have been appointed, commitment is part of the Company’s security systems (peripheral an integrated policy for addressing efforts to implement the Goldschmidt cameras, motion detectors, radar, the issue has been formulated and report, which is discussed in the entry control for transporters, work plans have been prepared section on Fair Employment. etc.); and implemented in ICL globally. In addition, risk surveys were performed Improved security control centers in all plants in Israel and several plants for factories, some of which in other countries. Security operate 24/7; ICL plants contain hazardous These activities are managed Establishment of control materials and valuable equipment and controlled by ICL CISO (Chief procedures and security checks so the Company invests significant Information Security Officer) and at the entrance to the Company’s efforts and resources to maintain ICL’s global CIO. In 2014, 6,000 ICL facilities; the security of its operating sites, employees passed CBT (computer neighboring communities and plant Arranged full cooperation based training) to deal with IT employees. The security policy of ICL between security and regulatory security threats. Quantitative goals companies is based on implementing systems on all relevant security were established for implementing a strict Israeli and international laws issues; multi-year work plan to advance this and regulations. Security operations Cooperation between security subject and to adapt the Company’s are conducted in full cooperation with department and human operations to the many threats it local security forces in the Company’s resources as part of the faces. areas of operation. Security issues recruitment procedures; are examined routinely as part of the The Global Excellence Center Company’s periodic internal controls (Israel, Europe, America and the around the world. Far East) advises, coordinates and distributes information to all ICL companies worldwide;

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Socially Responsible Actions Towards Communities and Society in General

n Stakeholder Q&A Scie ce Vision and Strategy Scan QR code or press the QR y code to read Q&A concerning for Community r In t y n ICL’s community involvement s r Engagement i t o (currently available in Hebrew). is Environmental Resources v m Management a

me t e i h o

h C

n

C

Sustainability Principal Goals Strengthening Society - Local Strengthening Economies Human Capital Create shared value with stakeholders and maintain “Social License to Operate” in targeted communities.

The Vision Develop operational model, including employee volunteer framework, in order to create partnerships with communities in which ICL operates. ICL has a policy of involvement and investment in the society and the Empower disadvantaged populations. community, which was formulated ICL aims to be a significant engine for growth and to and approved by its Board of help develop the communities in which it operates. Empower and develop local leadership by working Directors in 2001 and amended with “change agents” within communities, in order in 2014. As part of this policy, ICL By initiating and investing in processes and projects, to further develop ICL’s social circles of influence. sets aside an annual budget for community service. together with employees and local residents, Promote synergy between projects and activities, ICL focuses its investments on the organizations and leaders, ICL works to be a positive with an emphasis on ICL's flagship projects. communities in which it operates and is taking steps to deepen and broaden force both in Israel and around the world. Promote innovation in the field of chemistry and its community activities outside of its various components, i.e. knowledge, learning, Israel and to bring them up to a scale leadership development and human excellence. similar to those in Israel.

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Social Involvement in Israel

In 2014, ICL charitable contributions in Israel totaled approximately 5 USD million (approximately 19 NIS million) . This amount does not include the numerous work hours Flagship Projects that Company employees spent volunteering, partly at the expense of their work hours. ICL’s main activities are in communities in Israel’s southern region, namely: , Yerucham, Arad, Beer Sheva and the Bedouin settlements in the South. Afternoon Club volunteer staffing by ICL employees Empowering and retirees. Project Bedouin Each employee volunteers in his residential town and the coordinators Communities in operate on a corporate level (as the Negev opposed to the previous situation in ICL actively supports the which volunteering was segment or Bedouin communities of the company based). The connection is Negev. In 2014, the Company’s built on a warm personal relationship: contribution to activities in the employees serve as mentors, friends Bedouin communities totaled and leaders. approximately NIS 1.5 million. In 2014, ICL continued its support Mifalei Tovala, an ICL subsidiary, leads for approximately 60 clubs located these projects and is joined by many near its factories. This support other ICL companies. totaled NIS 3 million in 2014 and The Afternoon Club Project supports thousands of volunteer hours which To advance the volunteer activities, safe spaces throughout Israel for were donated by employees, retirees ICL is assisted by several professional at-risk children. These clubs act as a and their families in their spare time. organizations to whom it provides home-away-from-home for children Contributions went toward building financial support, among them: between 6 and 13 whose parents repairs, physical work, landscaping, Sustainable Development for the have difficulty caring for them during equipping the Clubs with computers, Negev, Beit Issie Shapiro, Liali the day. The supportive and home-like purchasing kitchen appliances, games Association for the welfare of atmosphere creates a therapeutic and books, and organizing enrichment children at risk, the Information environment for these children; activities, trips and social activities and Counseling Center for Higher provides homework assistance, during holidays and vacations. Education, the Mother and Child enrichment, extra help, social activities Health Station in , the Nature and computer skills for its members. and Parks Authority and others. Some clubs adopted by ICL also have programs for adolescents.

The Afternoon Club Project is operated by municipalities throughout Israel in cooperation with the Ministry of Welfare and Ministry of Education who also contribute to their funding. The Company’s involvement in the project includes providing financial support needed to develop and maintain the clubs together with

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Chapter 4: Social Responsibility

Examples of projects carried out under the program include the following: Support of Health and Welfare

Welfare Training center for career and Conservation of Nature and ICL supports a variety of welfare & health business skills. organizations and institutes with financial and Each year, ICL companies re-allocate the budget Operation of clubhouses for children the Environment cash-equivalent donations. These organizations formerly used for holiday gifts (traditionally distributed from families with special needs. Encouragement and support of young Long-term process to change and institutes include: to employees at the Jewish New Year and Passover) to people as they continue to higher The clubhouses serve as a warm environmental management purchase hundreds of food parcels and gift vouchers education and select a profession. MASLAN - Crisis Center for victims of sexual environment that provides homework through education, and municipality, for needy families in the Negev development towns assault and violence in the Negev assistance, enrichment, extra help, Operation of two education and neighborhood, and community and candy packages for children with cancer who are social activities and computer skills. consultation information centers to activities. Ran’s place - Adolescent club and community hospitalized at Soroka Medical Center in increase accessibility to academic garden in Arad Provision of individual therapy Conservation of biodiversity, or who are undergoing daily treatment at a Soroka education, system-wide support in for children with developmental landscapes and ecology through the Eden Foundation outpatient clinic (in conjunction with the Hayim coping with barriers in the community challenges, speech therapy and education system in the Bedouin Association). In 2014, ICL’s contribution of Food Parcels and academic requirements. ALUT - The Israeli Society for Autistic Children physical therapy. settlements. in holidays totaled approximately NIS 800,000 Seminars, tours of educational Kindergartens for autistic children Support of the Children-at-Risk Training of Authority employees, institutions, assistance and guidance project to meet the needs of children support for ISO-14000 certification. Yated – Association for Children with Down from families in distress, including in preparatory courses, psychometric Syndrom Joint project with Eshel Hanassi to psychosocial intervention. courses and English classes. offer practical educational experience ‘Tsad Kadima’ (A Step Forward) - Association Support of an occupational for students in Bedouin society, for Conductive Education in Israel rehabilitation center for people with Enrichment, Classes and linking environment, economy and ‘Ladders’ Project administrated by MATAN – In 2014, ICL contributed NIS 500,000 to evacuate emotional disabilities. Trips agriculture. Investing in the Community Association disadvantaged families from the conflict zone during Provision of educational services, for the military operation “Tzuk Eitan”. The Company’s Diverse enrichment activities, such Development of local young Enosh- The Israeli Mental Health Association efforts included transporting and relocating the families children with special needs, in their as sports, music, arts and crafts and leadership and raising awareness ‘Heart to Heart’ to safe areas in Northern Israel, while offering them natural environment. games. of the need to protect nature while entertainment activities. respecting their heritage and lifestyle Soroka Medical Center Operation of and assistance in Trips and activities, ecological summer (e.g. shepherding, dispersing waste kindergartens. camps, parties, children’s birthday Akim clubs (Akim – National Association for and using all-terrain vehicles). celebrations and more. the Habilitation of the Mentally Handicapped ICL also supports the Bedouin Desert in Israel) Classes in dental hygiene and proper Employment and Higher Reconnaissance Battalion. This nutrition. Loving homes for adolescent girls in distress Education Battalion monitors the borders with in Beersheba, Dimona, Arad, the Bedouin Encouragement of a business Operation of the Chen Program to Gaza and Egypt and is staffed by sector in the Negev and Isfiya. environment providing equal improve the attitudes of children Bedouin people from the Negev. The and teenagers towards people Foster families employment opportunities for college Company contributes resources to ICL Water Solutions works year-round with the with disabilities and developmental graduates from Bedouin society, equip the battalion’s special school, Club for the blind people humanitarian help organization CARE, enabling better disabilities. based on their training and skills. including the installation of Internet access to clean water and constructing systems for water Senior centers infrastructure. Operation of a job placement Creation of social infrastructure sanitation. Additionally, ICL funded the construction of Kfar Rafael Remedial Community center that connects employers to for activities and work within the new classrooms in the world’s largest refugee camp applicants, including a preparation community. Dimona ‘Welcoming’ soup kitchen in Dadaab (Kenya) in order to improve the access to education for the children. and support process for applicants, Identification and assimilation of workshops and an assessment children within enrichment programs center for screening and promoting through the Weizmann Institute of applicants. Science.

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collaboration with industrial schools Science Education at the Weizmann products of ICL’s Dead Sea Works, Support of Education and Science that operate under the auspices of Institute have led a joint initiative to ICL Rotem, Bromine Compounds, the Ministry of Industry and Trade. encourage high school students to Periclase and Dead Sea Magnesium ICL employs 12th-grade students study chemistry called, “We Have plants. from four schools in the Negev. Each Chemistry.” In each workshop, representatives week, the students study in school for The purpose of the project is to of ICL companies describe the four days and work for two days at use diverse and unusual learning plant where they work and include the plants, mainly in the maintenance methods to expose students to a chemical experiment associated and electricity departments and chemistry, emphasize its importance with the plant. The uniqueness of the in warehouses. At school, the and contribution to everyday life, activity lies in the active involvement students study, and earn certificates and demonstrate the relationship of ICL managers, R&D, marketing and in electricity, welding, mechanics, between chemistry and industry, environmental personnel, process automotive and machining. Each the environment, society and the engineers and geologists. student is assigned a Company individual. employee who serves as a mentor In addition, ICL’s Bromine Compounds who helps them navigate school and Students are advised by a team unit, the Ministry of Education – their job at ICL. that provides students with close Southern Region and Taasiyeda joined supervision and connects them, together for a three-year project in In addition, as part of its collaboration when necessary, with scientists and elementary schools, giving enrichment with vocational high schools, ICL engineers from academia and the lesson on many subjects related purchases goods worth hundreds of chemical industry. to the chemical industry and the thousands of shekels annually from importance of bromine, in particular. the factory at Zur High School in The project focuses on fourth Arad and employees cooperate with ICL strives to promote education, especially in the fields of science, sustainability and Taasiyeda (‘Industry graders in schools in Beersheba, the students from ORT Arad by working technology. Towards this end, ICL operates two flagship programs to offer educational Knowledge’) Bedouin sector, Omer and Lahavim. on geography projects and providing ICL works in conjunction with Israel’s In addition, other learning channels activities and engages in additional activities to develop and support other educational tours of the Company. Manufacturers Association to were established, such the Bromi programs. In 2014, ICL’s contributed NIS 5.5 Million towards education. ICL employees and managers are promote the study of industrial and website (www.bromi.co.il) which has ICL also sponsors various scientific, academic and professional conferences, such as the Israeli proud that most of these students environmental subjects in 40 schools learning and educational games for serve in the army after graduating in the Negev, through the Taasiyeda children and the Bro-morim website Environment Conference 2050, as well as annual conferences in Ecology, Hydrology, Geology from high school, and some return (industry + knowledge) program. for teachers, which features lesson Geography, and Urban Planners. In 2014, ICL’s contributed NIS 400,000 to conference to ICL companies after their army As part of ICL’s cooperation with plans, presentations, movies, etc. sponsorships. service. The Company believes that Taasiyeda, ICL has run workshops at this program is very important, schools for the past five years. contributes to the community Junior Achievement Workshops were held in schools in Rotem in the Desert Provide information about the have participated and together significantly, and also helps to build a ICL Bromine has been part of the Beersheba, Arad, Dimona, , complexity of the Sustainability learned about complex environmental pool of skilled future employees for Junior Achievement program for Project Segev Shalom and . The Triangle: man, environment and the issues which impact to their lives. the Company. more than a decade, and participates Since 2011, the ICL Group, in workshops are designed to expose economy. in a Skills Day each year. The day Training for instructors of this course high school students to the study cooperation with Israel’s Nature and is intended to expose students Develop the student’s ability to think was held in 2013-2014 in cooperation of chemistry and Israeli industry. Parks Authority, has operated an “We Have Chemistry” to professionals, researchers, critically, express opinions and identify with Kaye College. Its subject was During the workshops, students educational program in southern - Encouragement of entrepreneurs, executives and viable solutions. “Determining the Negev’s changing Chemistry Studies in learn about the connection between Israeli towns. Its goals are: business people. During the day, they needs.” Collaboration with the chemistry and industry, and the The program, which extends over a learn about success stories in the To embed the values of conservation, impact of chemistry on everyday Employment of High School Weizmann Institute area of business administration, and school year, includes class lessons, life. The students learn about respect for the environment and Students and Cooperation with For the last six years, ICL, the Center the connection between business training days and special activity chemistry in general, and its use at cultural heritage among students. Vocational Schools for Relations between the Chemical management and entrepreneurship. days. In its four years of operation, ICL’s plants in southern Israel; about Industry and the Educational Skills Day is designed to increase Disseminate information about thousands of students from various ICL encourages vocational studies bromine, potash and phosphates as System, and the Department of high school students’ knowledge of industrial plants in the vicinity. Negev communities, and educators, among high school students in raw materials and the outputs and

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Chapter 4: Social Responsibility

entrepreneurship and to prepare opportunity to develop and manage the fruit of the students’ initiative, community representative who leads Greenhouse in ‘Sound of Jacob’ ‘Artists Create in Yeruham Park’ - them to manage the companies they real businesses through groups planning and development in a this process. School - In order to address Work program for artisan workshops establish as part of the program, organized in their schools, community process modeled on industry. The constraints derived from the year established for the benefit of the In the first year, 2014, the ‘Thinking efficiently and successfully. On Skills centers or other organizations. groups are guided by a teacher (or of Shmita (the Sabbatical Year for public. These workshops are led Doing’ project was implemented in Day, senior executives from Bromine Students experience the complete college student) and a business the Land of Israel), the teaching staff by local artisans and inspired by Yeruham, and in coming years, ICL lead a variety of workshops for lifecycle of a business, from raising executive who volunteers his/her time at the school, in consultation with Yeruham lake and park. expects that more communities will students, including a CEO workshop, capital, developing an idea for a to the project. In this context, ICL-IP professionals, initiated a greenhouse begin this process, including Arad, ‘Community Gardens in Town’ - as well as workshops in financial product or service, appointing executives volunteered their services within the schoolyard where students Dimona, the Bedouin community, Yeruham community gardens were management, negotiations, sales and officers, developing and producing the as business coaches for Junior grow spices and organic vegetables. the Tamar Regional Council and the established with the purpose of marketing, public relations and more. product, marketing, advertising and Achievement, guiding groups in the Ramat Negev Regional Council. ‘Shade Trees’ – The town of Yeruham bringing residents closer to their sales. At the end of the program, the greater Beersheba region. Skills Day is part of Junior is sunny almost all year round. This environment, generating community ‘company’ is dissolved and the profits By creating communities that operate Achievement’s “Doing Business” venture seeks to encourage the get-togethers and promoting are divided. independently, ICL believes that there program which offers high school planting of shade trees on town environmental sustainability in public will be a strong human infrastructure students (grades 9-12) the The products and services are streets and kindergartens, nurturing spaces. During 2014, an ecological of local area professionals working and raising them for the benefit of the gardening course was initiated for the to establish a center in their community. The venture operates in benefit of residents. communities and strengthen local cooperation with local residents and economies. Yeruham’s Sustainability Forum – members of the town council. Established as part of the ‘Thinking ‘Youth Travel Israel National Trail’ Doing’ project, the forum consists 12 Ventures were realized - A joint venture for religious and of representatives from various Support of Community Enhancement through ‘Thinking Doing’ secular youth which gathers seventh ventures. The forum meets on a in Yeruham and eighth grade students from all monthly basis to discuss and solve ‘Art in Space’ - Community Gallery, schools in Yeruham. The venture the challenges faced by different artists’ workshops and unique initiates meetings throughout the year ventures. ICL is committed to improving the quality of life in the projects encouraging dialogue about for social, and team building, activities communities where it operates and to constantly developing art and aesthetics in Yeruham’s public and during school vacations each 8200 Social Program and supporting a wide range of activities designed to space. group of participants sets out to hike a different part of the Israel National The 8200 Social Program is an enhance the fabric of the communities and provide local ‘Tikkun Olam’ - Community action Trail. accelerator program for social- workshop for local residents, to use residents opportunities in the fields of sustainability, science technological ventures, created with manual labor to create new items ‘Traveling Community’ - a venture and innovation. ICL’s commitment is realized through the the goal of harnessing the human out of local, reused raw materials to administrated by ‘Otzma’ Center capital of the IDF’s 8200 unit alumni important programs described below, some administrated promote esthetics in public spaces. (Forte Center), which provides underprivileged families ways to and invest it in Israeli society. Led by and managed by the Company in cooperation with third party ‘For the Spirit’ - A venture conceived travel in Israel by organizing trips 13 entrepreneurs, the 8200 alumni organizations, and some through ICL employee volunteer by a local book lover which aims to guided and planned by ‘Otzma’ Center community, mentors and speakers enable all residents’ free access to work and ICL charitable contributions. activists, in collaboration and with the from key positions in the nonprofit books by stationing street libraries support of, Yeruham’s Field Studies sector and the business sector, the around the town. Center. program is designed to promote the environment. ICL contributes both ‘Thinking Doing’: ‘Garden Parks’ – Renovation of technological solutions for social money and employees’ work hours to ‘Give a hand in Haredi Yeruham Community- kindergartens and a community challenges in the fields of education, these various community projects. Community’- As part of the venture, Environment Ventures garden courtyard in order to make women empowerment, disability a group of 25 girls was formed and During the process of creating a meaningful, ecological space for management, social businesses, ICL, along with the ‘Community trained to enrich the social life in the the ‘Thinking Doing’ project, local children and parents. The venture is elder care, participatory democracy, - Environment and Society’ firm, Haredi community through non- residents select areas to concentrate carried out by a group of youngsters collaborative economy, healthcare is leading the establishment of formal education and social and their activity. These include education in cooperation with the Department and Haredi employment. community/environmental ventures environmental change. in Negev communities in order to and community and local economy of Parks, teachers and parents. create an active and independent and environmental resources. Each community that promotes society and area of activity/venture is assigned a

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Chapter 4: Social Responsibility

for Neot Hovav. It will highlight the Community ICL Employees with experience relationship between chemistry, Environmental working on improvement teams, serve manufacturing and sustainability. The Initiatives as mentors/group moderators in this Center will be a magnet for hundreds process. In this way, ICL shares its KfICL participates in initiatives to of thousands of visitors from Israel personnel’s professional knowledge to promote a culture of environmental and abroad, and will offer tours for work on these important issues. protection and encourages its schools and chemistry students. employees to volunteer in this area. In addition, companies operating at In 2014, ICL continued its participation ICL for Outstanding Neot Hovav will create a display about in: Athletes themselves at the Continuity Center. KfCreating refreshment rest-stops In recent years, ICL has joined with This venture will provide a platform to on the eve of holidays and during Hapoel Beersheba to lead three demonstrate ICL’s contribution to the the Sukkot and Passover holidays sports programs to support and Negev and to the global community, on the Arava road (Highway 90) advance children and youth: ‘Red while also focusing on the world of in the area surrounding the Dead Heart’, ‘The Future of Red’ and the bromine, its compounds, and its uses Sea Works plant; ’Mentors program’. Red Heart, and in creating essential products. the Future of Red provide coaching to KfMaintaining roads within nature children from special schools in the reserves and scenic areas in the city. Through the Mentors Program, Negev desert; ICL employees and managers adopt KfEstablishing feeding stations for and mentor teens playing in Hapoel birds of prey, in cooperation with Beersheba. Employees encourage the Nature and Parks Authority to these boys to excel in all areas of their increase the number of birds of lives. prey in Israel; At a ceremony in January 2014, KfAssisting hikers in areas near scholarships were presented to ICL supports this project as it finds ‘Vitalitix’ - A support platform for Establishing the plants; ten outstanding players from the the project’s goal - to contribute the elderly, which connects family Continuity Center at youth department. The scholarships new solutions to society through members to the person they support Supporting regional cultural Neot Hovav were awarded according to the technology - is aligned with the through wearable devices that events, including walks, bicycle Since 1978, Bromine Compounds predetermined criteria established by Company’s strategy. In 2014, ICL communicate with a dedicated app rides especially of associations has been active in the Neot Hovav ICL and the management of Hapoel provided half of the sponsorship for and alert them when their help is for people with disabilities, hikes, Industrial Council and it is one the Beersheba. this exclusive project. required. cultural activities etc. five largest factories there. The plant In addition, the Company supports Five solutions, out of thirteen ‘SheCodes’ - A venture with the goal is used as a model green plant and professional swimming in Israel. developed by entrepreneurs through of getting female software developers hosts visits by VIPs to Neot Hovav. Active Community this program, are: to make up 50% of the software Over the last two years, there has Improvement Teams In 2014 it sponsored the Negev development sector in Israel in swimming championship and ‘Voiceitt’ - An app that enables been a major push in development accordance with their percentage in In order to participate in social awarded Guy Barnea, Israeli those with speech impediments to activities for environmental projects, the population. change, improvement teams from ICL- swimming champion, the ICL communicate using their own voice by and in public relations initiatives, IP, in cooperation with Tze’ela, assist swimming scholarship. utilizing an instant conversion of the ‘Blink’ - A series of innovative sight for Neot Hovav Industrial Council to organizations and NGOs dealing with impeded speech into non-impeded enhancement products aimed at become an Eco-Industrial Park. The social problems. The idea behind the speech. improving the quality of life of visually Continuity Center is one of these improvement teams is to break down impaired people, both physically and projects. When built, the Continuity ‘EyeControl’ - Accessible, affordable complex problems into several small mentally. Center will be the first chemistry glasses that, using a camera, a museum in Israel, and serve as problems, and, having a dedicated microprocessor and an open source regional center of excellence for team handle each problem, solve it in app, allow eye movement based chemistry and as a visitors’ center a structured, simple way. communications.

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Chapter 4: Social Responsibility

Support and Involvement in Other Social Matters Social Involvement in Europe

Support for Soldiers Employing Employees’ Social Engagement Notable Contributions ICL Iberia Chair agreement with Manresa Basketball SAE which shall continue during 2014 ‘Adopt a soldier’ - ICL companies, Children in the Efforts to the Local The ICL Iberia Chair in Sustainable and 2015. together with the Association for the Community ICL continues to develop training Communities of Súria Mining was created in October 2007 Wellbeing of Israel’s Soldiers, adopts During summer vacation, the children content to deliver information to & Sallent in Spain as a joint initiative of ICL Iberia and several IDF units and bases, organizes of employees assist in various tasks in visitors at ICL sites in the Dead Sea, ICL Iberia Súria & Sallent works the Superior Polytechnic school of Geopark joint activities and contributes to the hospitals, nursing homes, clubs, and including training instructors for the with many local actors to practice Manresa (Escola Politècnica Superior In April 2011 ICL Iberia joined the wellbeing of soldiers. in community activities, in cooperation Company’s visitor center in Sodom, good corporate citizenship, de Manresa) from the UPC (Catalan Geological and Mining Park of central with the municipalities. They are paid which hosts approximately twenty promote sustainability, and build Polytechnic University). Its main During 2014, ICL Fertilizers continued Catalonia through an agreement with by ICL companies for their time. thousand visitors a year. strong communities. The company objective is to promote knowledge its support of the Bedouin Desert the regional Bages council and Súria collaborates with universities, and innovation in sustainability in Reconnaissance Battalion and . research centers, corporation the mining industry. Its focuses on ICL-IP continued its support of the sectorial associations, European disseminating research, advice and Rimon Battalion and Givati Brigade technology platforms, cultural, training, and fostering scientific Abadía de Montserrat Headquarters. These segments have recreational and sports entities, non- communication, in the sustainable Foundation committed to an annual donation of profits working with disadvantaged mining engineering field. Since 2010, ICL Iberia has NIS 100,000 for three consecutive groups and the municipalities in collaborated with the Abadía de years, in addition to organizing Over the past 4 years, this Chair has which it operates. The company’s Montserrat Foundation 2025 (culture, joint activities. They also plan to provided over 7,700 hours of training goal is to contribute to the local nature). incorporate officers and soldiers into and written more than 34 documents, community through its own operation ICL and offer higher education and including, theses and published by creating value and activating the employment opportunities. research papers. Also, more than 23 Historic Cardona local economy. To achieve this, the experts from the Chair collaborated In addition, ICL adopted the Lone Foundation company hires local workers. 90% with students on their research and Soldier Center in Memory of Michael In 2013 ICL Iberia worked with of the employees at the Sallent doctoral thesis. Levin branch in Beersheba, and plant, and 94% of employees at the the Historic Cardona Foundation, contributes equipment, such as Suria plant, come from the Bages an organization committed to furniture, TVs, sound systems and municipalities. All other employees Kursaal maintaining and protecting the historical and mining heritage of the kitchen equipment. Also, employees come mainly from nearby counties, Since 2009, ICL Iberia has supported municipality. of ICL in the south were asked to Berguedà, Solsona and Osona and the culture in Bages County through its host lone soldiers on weekends and remainder from throughout the state. collaboration with the Kursaal Theater for holiday and Shabbat meals – an in Manresa. In 2014 for example, the Aula Taronja initiative which received a large Company paid tribute to the World ICL Iberia collaborates with the and positive response from ICL Cooperation with Environment Day with discussions and regional TV programme, Aula Taronja, employees. Associations and debates held in the Manresa Kursaal which shares knowledge through the Sponsorships Theater. vision of young journalists. In 2014, ICL Iberia Súria & Sallent contributed € 300,000to the local community through its operations, Basketball Manresa AMPANS projects and sponsorships. ICL Iberia also supports one of Bages’ ICL Iberia Súria & Sallent supports most iconic sports clubs, Basketball AMPANS in Central Catalonia, an Manresa. ICL will continue to support organization dedicated to the this team through the 2014-2015 wellbeing of people with intellectual season. In 2011, ICL Iberia signed an disabilities, through financial

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Chapter 4: Social Responsibility

contributions and commissioning Notable Contribution projects through AMPANS Special to the Local Job Center (Centro Especial de Community of Caffiers Empleo CEE). AMPANS foundation, in France based in Santpedor (Santa María ICL’s subsidiary in France, Scora, is de Comabella), provides jobs for a member of an organization which people with intellectual disabilities in helps launch or buy companies. industrial gardening projects at ICL Through this organization, the Iberia facilities since the organization’s Company’s qualified employees founding in 1998. support and guide a local entrepreneur through the process by Collaboration with sharing their knowledge in different Local Organizations areas such as sales, HR, finance, production, regulation. ICL Iberia collaborates with the In addition, Scora offers caps and Volunteer Association of Súria scarfs for all Caffiers school children (InfantSúria), the Children’s fair of participating in their one week Manresa “Campi qui jugui”, and the ski vacation. These vacations are Council of Manresa’s literary initiative, a custom in Caffiers schools and “Tocats de Lletra”. over the years it has taken various in Mannheim, where ICL sponsored measures to enhance and support the creation and performance of a occurbi-annually. local residents, institutions, social show with multinational children. The Support for Local Events organizations and selected cultural show’s title is “Multiple Languages” Notable Contribution events. and its premiere is in January 2016. ICL Iberia Súria & Sallent is one of a to the Local few companies that sponsor large As in previous years, one of the ICL further financed the creation Community of local festivals in Súria, Sallent and Company’s main social goals was of a film, illustrating the story of Amsterdam in the Balsareny. Furthermore, the company support of institutions and projects Ursula Michel, who was sent via Netherlands supports a variety of cultural and which help needy, sick or socially various stations as a single child to ICL’s operations in Amsterdam (ICL educational activities that occur in challenged children and young London, fleeing the Nazi regime (“The Fertilizers Europe C.V. and ICL- IP these municipalities throughout the people. In this context, ICL sites in Little Suitcase”). In this context ICL Europe B.V.) sponsor a local initiative year. For example it is a sponsor Germany funded programs, and continuously supports the placement for cancer prevention and contribute and collaborates with the IGENIUM bought equipment for youth sports of “stumble stones” made from approximately €20,000 each year to session (Institute of Engineers of groups, a children’s hospital, a bronze and showing names of victims the Maritime Museum Amsterdam. Catalonia), Meetings of Catalonian children’s home, and the Ladenburg of the Nazi regime. In addition, the Company devotes Engineers and the Mediterranean Township’s “youth parliament” which In 2014, the company provided smaller activities and sports events For several years, ICL has co- approximately €7,500 each year to Trade Show in Manresa since 2013. aims to involve children in their sponsorships of numerous activities in (organized with the participation of sponsored the Ladenburg triathlon volunteer work performed by its community. the Terneuzen municipality, including one of ICL’s employees), e.g. cycling event, “RömerMan”, as well as employees in the local community in regional cultural events such as the tours, local football teams, swimming ICL sponsored two cultural events “Knowledge Transfer Day” in the Amsterdam. Notable Contribution Zeeuws-Vlaanderen Festival, the for handicapped children, athletic enhancing the integration of young metropolitan area which is organized to the Local annual Terneuzen Jazz Festival and events. people of multinational origin. The by the Management School at Communities of Notable Contribution the annual Graauw Rock Festival. first event is administrated by the Heidelberg. In addition, the company’s health Ladenburg and to the Local The company also sponsors a large Ludwigshafen in highly renowned philharmonic and safety environment education The Company also sponsors public Community of number of regional sports events Germany orchestra of the Rhineland-Palatinate officer, and qualified employees called events and local sports teams Terneuzen in the such as the Zeeuws-Vlaanderen which began a program to teach ‘Technical Ambassadors,’ attend ICL, with sites at Ludwigshafen and at Ludwigshafen. For instance, it Netherlands Marathon - an annual sporting event pupils how to play instruments school information events to promote Ladenburg (both situated in the sponsored the “Family Festival” with ICL operation in Terneuzen, the in which a number of the company’s together, an experience which creates technical studies at local schools and Metropolitan Area Rhine-Neckar), its Kids Parade, and the Ludwigshafen Netherlands, devotes approximately employees participate, Ride for the an integrating effect. The second working in the chemical industry, and is committed to the communities handball team “Die Eulen” (Owls) €50,000 each year to local community Roses – a national cycling event in the event occurs at the National Theater ICL in particular. in which it operates. Accordingly, which play in the national league. support and engagement activities. fight against breast cancer, and other

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Chapter 4: Social Responsibility

Where needs take us

Social Involvement in employees. In 2014, the Company’s Lawrence, KS site. employees gave hundreds of hours Americas Each October, the Gallipolis Ferry of their time in volunteer services ICL supports various charitable plant hosts a Community Fun Day which included various types of organizations in Americas through where they sponsor an open house activities, such as adopting families philanthropic efforts and community for the community to come to the for holidays, performing light yard engagement. In 2014, ICL’s charitable plant and enjoy food, games and work and painting for homes of those contributions in the Americas totaled fellowship. This day is done to thank with disabilities, and distributing $110,465, of which $58,215 was the community for their support of food to those in need. In 2014, ICL from the company and the rest the GF plant and to let them know employees distributed 148 pounds of were contributed by employees. The that we are attuned to their concerns food which fed approximately 1200 donations consist mainly of cash and needs. The GF plant is also a disadvantaged people in America. donations and food supplies provided Partner in Education with a local to a range of charitable organizations, This community involvement takes elementary school; providing reading social services, firefighter and fire place through numerous welfare days, educational materials, rewards safety organizations. Some of these organizations, such as United Way, St. for academic excellence and a poster People organizations include the St. Louis Louis Area Food Bank, VA (Veterans) contest that is used in the lobby of the Area Food Bank, United Way and Hospital, Nurses for Newborns, school and the plant. Agriculture Lutheran Senior Services, Easter Seals various social services in areas The Clearon plant located in West Midwest, Winter Coat Drive, Pancake where the Company operates, e.g. Virginia, participates in South Rancho Cucamonga site in California, Breakfast (Canada), Operation Charleston Days by sponsoring a Food Kamloops, in Canada, Carondelet Christmas Child (Canada), Coats for booth and providing volunteers for plant site in Missouri, Lawrence Folks (Canada), and Theme Basket this day of celebration. The Clearon plant site in Kansas, Dublin and Raffle for charity. CAP also sponsors Shelter in Place Summerville, Ohio sites, Hammond, In 2014, ICL employees also drills annually to help teachers Indiana site, and Gallipolis Ferry and contributed their time to the and students better understand South Charleston plant sites in West Engineered Environmental Beautification or the proper actions to take during Virginia. Cleanup project in the Community, an emergency. Clearon also Materials In addition, ICL facilitates community and to the Canada Shore cleanup. partners with the South Charleston engagement by organizing volunteer They were also involved in a volunteer Fire Department for training and opportunities and programs for reading program in a local school near Emergency Response. Cities

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Chapter Five

About the Report GRI G4 Content Index

w Materia Ra ls ICL’s Activity tation & L or og p is s t n ic Throughout a s r T d Market the Lifecycle: En s

& ture Pro c du fa c u t n io a n

M Back to Content Back to Content

Chapter 5: About the Report

About the Report Material Issue

Stakeholder Category

This Corporate Responsibility Report Information was collected internally ICL selected the content for this Market Competition & Demand Government-takes Manufacturing & Opera- tions Governance & Ethics Natural Resource Avail- ability Product R&D Local Environmental Issues Energy Management Product Safety Biodiversity & Nature Conservation Employment & Employ- ability Compliance Occupational Health & Safety Local Community Develop- ment

of ICL describes the Company’s by departments that deal with report by prioritizing material impact Investors √ √ √ √ √ √ √ √ √ √ √ √

approach to sustainability and the matters related to the environment, on sustainability following a process Employees √ √ √ √ √ √ √ √ √ √

actions it has taken during 2014 to human resources, and ICL Centers of evaluation through which a large Public Authorities and Regulators (International and local) √ √ √ √ √ √ √ √ √ √ √ √ advance responsible and sustainable of Excellence, as well as by the group of ICL personnel, including ICL Standards bodies √ √ √ √ √ √ business practices. In all cases, data Company’s headquarters. Information senior executives, were interviewed Local Communities √ √ √ √ √ √ √ √ √ relates to the 2014 calendar year about the environment presented in for the purpose of gathering and Social and Environmental NGO's (International and local) √ √ √ √ √ √ √ √ √ √ unless otherwise stated. For several this report was also collected from 61 verifying data processes for this Analysts √ √ √ √ √ √ √ √ Industry/competitors √ √ √ √ √ √ √ √ √ √ √ √ of the indicators, data from previous of ICL’s sites around the world, which report. No significant changes have Academic √ √ √ √ √ years is presented as a baseline for account for 95% of the Company’s occurred during the reporting Media √ √ √ √ √ √ √ √

comparison. Since the report is being total sales. Social data was collected period with regard to its scope or Customers √ √ √ √ √ √

published in mid-2015, it may also in a lower volume (as noted in the boundaries. Contractors and partners (e.g. suppliers, distributers..) √ √ √ √ √ √ √ √ √ contain some data and events from relevant section of the report) from The highlights in the report and its the period between the end of 2014 tens of ICL’s sites located in Israel, structure are based on the diverse and its publication date. U.S., China, Turkey, Mexico, and In order to maintain consistency with As a result, ICL attributes great and assurer independence, and composition of ICL’s stakeholders. throughout Europe (e.g. Spain, U.K. the Company’s various international importance to the assurance process, outlines the steps to be followed and The report covers all of ICL’s ICL includes its main impacts on a The Netherlands, Germany, Italy, reporting standards, all information which constitutes a significant conditions to be met by auditors, operations globally. A list of entities corporate level, as well as on greater collected from ICL’s sites around component of data and information who provide assurance on behavior, France, Poland). included in this report can be found levels of detail so that the report will the world, including the Israeli sites, transparency. processes or information. in the Organizational Structure This report has been written in be relevant for as many stakeholders are presented in this report using In order to meet this challenge, ICL is undergoing a comprehensive diagram on page 43 – as found in accordance to the GRI G4 Guidelines as possible. All aspects addressed international protocols (e.g. CDP, the company engaged in a gradual process of upgrading relevant data ICL’s 2014 Annual report available ‘in accordance’ option Core, and in this report are material within the GRI) which ICL has used for the last assurance process which includes gathering, reporting, accountability few years. The reported information on the Company’s website (see “C. reports are in line with the principles organization. Where the issue has internal preparation and the and transparency mechanisms of is a result of direct measurement Organizational Structure”, page 79 for defining report content and been identified as relevant within execution of an assurance process, all relevant corporate responsibility of the issues under discussion and www.icl-group.com/investors/reports/ quality. Additionally, the report the organization it applies across all respectively. activities. calculations when required (unless financialreports/Pages/default.aspx). addresses the GRI Mining and entities of ICL’s business. Following is otherwise noted). There have been As part of this process, an The company is set to expand the The quantitative information in this Metals Sector Guidance supplement. an outline of the materiality of each of minor changes in some environmental independent limited assurance scope of the assurance provided in report relates to ICL’s three segments: However, not all of the guidelines the aspects outside the organization. data from 2013 as stated in the process regarding the specified future reports, in order to include in ICL Fertilizers, ICL Industrial Products are applicable or appropriate to ICL’s Corporate Responsibility Report for parts of the company’s report was the process additional and material and ICL Performance Products. The business, and they have been applied 2013, due to change in calculation performed for the first time components, as part of a designed report does not include information selectively to relate to the Company’s methods. (see page 2-3). and gradual process of development about joint ventures outside of the mineral extraction activities. in its corporate responsibility This is the fifth successive year ICL Limited assurance regarding the segments. reporting. has published a full GRI report and specified parts of the report was the first year that it is reporting using performed by KPMG Somekh Chaikin. The Company intends to seek external GRI’s updated GRI G4 Guidelines – The assurance was performed assurance of the entire report in the making it a year of transition. As ICL in accordance with International coming years. Standard on Assurance Engagements progresses through its second year ICL’s Corporate Responsibility reports (ISAE) 3000, for performing of reporting using this framework, are published in English and Hebrew, Assurance Engagements other the Company intends to strengthen in Israel and throughout the world, than Audits or Reviews of Historical its data collecting and reporting and are available on ICL’s website Financial Information, issued by the practices, becoming more efficient located at icl-group.com. in these systems throughout its International Auditing and Assurance operations. Standards Board (IAASB).

ICL recognizes the importance of the That Standard emphasizes the need periodic reporting process and of the for comprehensive procedures transparency required in its activities. for evidence gathering processes

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Chapter 5

GRI G4 Content Index GRI G4 Content Index

ICL 2014 Corporate Responsibility Report

GRI G4 Guidelines General Standard Disclosures Page External Assurance* ‘In accordance’ option Core Mining & Metals sector disclosures, where applicable G4-12 107, 109-110 - The Company is currently in a process of establishing a new European headquarters in Amsterdam that will serve as one of ICL’s joint global service centers (together with the existing service center in the United States and the planned service center in Israel) and will also operate as the Company’s worldwide procurement (purchasing) center. Procedures for collecting relevant data for supply chain will be developed and implemented over the next two years. G4-13 23 -

G4-14 27 -

G4-15 36, 49, 125 -

General Standard Disclosures G4-16 36, 71-72, 125 -

General Standard Disclosures Page External Assurance* Identified Material Aspects andB oundaries G4-17 - Strategy and Analysis 43, 182-183 G4-1 8, 9 - G4-18 30-32, 182-183 Yes, pages 2-3

G4-19 32 -

Organizational Profile G4-20 182-183 - G4-3 13 - G4-21 182-183 -

G4-4 15-16, 22, 112 - G4-22 182-183 -

G4-5 13 - G4-23 182-183 -

G4-6 20-21 -

G4-7 13 - Stakeholder Engagement G4-8 15, 17, 22 - G4-24 33 -

G4-9 13, 14, 16, 25 - G4-25 33-34, 37 -

G4-10 144 - G4-26 33, 35, 39 -

G4-11 144 - G4-27 38 -

* See reference page for the specified parts included in the assurance * See reference page for the specified parts included in the assurance

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Chapter 5

GRI G4 Content Index GRI G4 Content Index

General Standard Disclosures Page External Assurance* Specific Standard Disclosures

Report Profile Material Aspects DMA and Indicators Omissions External Assurance* G4-28 182-183 -

G4-29 182-183 - Category: Economic G4-30 182-183 - Economic Performance G4-DMA: 16-18, 22-23 -

G4-31 190 - G4-EC1: 24-26 -

G4-32 184-189 - Indirect Economic Impacts G4-DMA: 54, 58, 61, 162-163 -

G4-33 2-3 - G4-EC7: 82, 170-172 -

G4-EC8: 54, 56, 60, 63 Yes, pages 2-3 Governance G4-34 42 - Category: Environmental G4-36 27 - Energy G4-DMA: 104, 121-123 -

G4-39 44 - G4-EN3: 118-119 -

G4-41 47-48, 53 - G4-EN6: 119, 121-123 -

G4-42 44-45 - Water G4-DMA: 68, 80, 84, 132 -

G4-43 44 - G4-EN8: 78, 79, 131 -

G4-48 27 - Biodiversity G4-DMA: 74-75, 80, 86, 87 -

G4-51 46 - G4-EN11: 76 -

G4-EN12: 77-78, 80-81 -

Ethics and Integrity G4-EN13: 77 - G4-56 50-51 - G4-EN14: 77 -

G4-57 47 - MM1: 77 -

* See reference page for the specified parts included in the assurance Emissions G4-DMA: 68, 71, 104, 125, 128 -

G4-EN15: 124 -

G4-EN16: 124 -

G4-EN17: 124 -

G4-EN19: 124 -

G4-EN21: 126-127 -

Effluents and Waste G4-DMA: 68, 116, 136-137 -

G4-EN23: 134-135 -

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Chapter 5

GRI G4 Content Index GRI G4 Content Index

Material Aspects DMA and Indicators Omissions External Assurance* Material Aspects DMA and Indicators Omissions External Assurance*

Products and Services G4-DMA: 18, 91, 93-94 - Sub-category: Human Rights G4-EN27: 19, 72, 95-96 - Non-discrimination G4-DMA: 27, 50-52, 148 -

Compliance G4-DMA: 27, 42, 48-49 - G4-HR3: 148 -

G4-EN29: 48-49 - Child Labor G4-DMA: 27, 51-52, 142 -

Transport G4-DMA: 71, 107, 109-110 - G4-HR5: 52, 144 -

G4-EN30: 107, 109-110 - Forced or Compulsory Labor G4-DMA: 27, 51-52, 142 -

Overall G4-DMA: 18, 28, 68, 71 - G4-HR6: 52, 144 -

G4-EN31: 70 Yes, pages 2-3 Human Rights Grievance G4-DMA: 47, 50-52 - Mechanisms G4-HR12: 47 -

Category: Social Sub-category: Society

Sub-category: Labor Practices and Decent Work Local Communities G4-DMA: 162-163, 168, 170, 175 - Employment G4-DMA: 142, 146, 148, 152 - G4-SO1: 164-165, 175-176 Yes, pages 2-3

MM Sector specific DMA: 149 (Policies, standards Data is currently - MM6: 80, 88 - and practices applying to contractors). available for contract employees MM7: 80, 88 - in Israel. ICL is Anti-corruption G4-DMA: 47, 51-53 - reviewing its data collection G4-SO3: 53 - processes to address this gap in G4-SO4: 52-53 - the future. Compliance G4-DMA: 42, 48-49, 52-53 - G4-LA1: 152 - G4-SO8: 48-49 - Occupational Health and G4-DMA: 155-158, 161 - Safety Emergency Preparedness G4-DMA: 161 Yes, pages 2-3 G4-LA6: 154-155 - (MM Sector specific Aspect) G4-LA7: 154 - Sub-category: Product Responsibility G4-LA8: 157 - Customer Health and Safety G4-DMA: 93, 98-99, 112 - Training and Education G4-DMA: 148, 150-151, 153 - G4-PR1: 98-99, 125 - G4-LA10: 150-151, 153 - Product and Service Labeling G4-DMA: 27, 68, 100-101 - Diversity and Equal G4-DMA: 27, 146, 148, 151 - G4-PR3: 100-101 - Opportunity G4-LA12: 44-45, 144 - Marketing Communications G4-DMA: 18, 68, 100-101 - Labor Practices Grievance G4-DMA: 47, 148 - G4-PR6: 102 - Mechanisms G4-LA16: 47 -

* See reference page for the specified parts included in the assurance * See reference page for the specified parts included in the assurance

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Important Notes to the Reader

This document reflects the policy of Israel Sustainability Administrator: Chemicals Ltd. The document is updated Tzachi Mor, as of its preparation date, as specified. [email protected] We have done our best to ensure that Reporting: Assif Strategies Ltd. this document is true and accurate. www.assifstrategies.com However, as in any document, there may be generalizations, inaccuracies, Design: Portnov-Mishan Where needs errors or omissions. The complete and www.portnov-mishan.com binding information for the public of Israel Chemicals Ltd. is published in its annual Editing: David Kahn and quarterly reports. www.fisherkahn.co.il take us We will be pleased to answer questions and receive comments, suggestions or any response.

Please contact: Mr. Tzachi Mor, [email protected]

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192 ICL Corporate Review 2014