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 a2 ICL Corporate Review 2014 ICL Corporate Review 2014 1 Back to Content Back to Content 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. 2 ICL Corporate Review 2014 ICL Corporate Review 2014 3 Back to Content Back to Content 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 Israel 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. 6 ICL Corporate Review 2014 ICL Corporate Review 2014 7 Back to Content Back to Content 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 8 ICL Corporate Review 2014 ICL Corporate Review 2014 9 Back to Content Back to Content 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 M Back to Content Back to Content 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