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ESG Metrics

ICL aspires for best practices in the management of all ESG components. Following are the main ESG quantitative KPIs (Key Performance Indicators) from recent years, and related trend analysis. \
Economic Performance

(see further details here)

units201920202021
Sales$ millions5,2715,0436,955
Operating income$ millions7562022,611
Adjusted operating income$ millions7605091,194
Total adjusted net income - shareholders of the Company$ millions479258824
Cash Flow from Operating Activities$ millions9928041,065
Environmental Performance 

(see further details here)

Energy

(see further details here)

  • In 2021, approximately 7.4% of energy consumed by ICL was electricity purchased from the grid. Approximately 4% of ICL’s consumed energy (electricity and steam) is sourced from renewable energy.
  • ICL’s Dead Sea combined heat and power (CHP) plant commenced operations in August 2018. Since becoming fully operational, there has been an increase in ICL’s fuel consumption (direct energy). At the same time, there has also been a significant decrease in the amount of external electricity (indirect energy) that ICL consumes.
  • Electricity from the new CHP plant is also sold by ICL to Israel’s national grid and external customers. The amount sold in 2021 was 369,291 MWh. In accordance with the GRI methodology, the amount of electricity sold to Israel’s national grid was subtracted from ICL’s total energy figures.

units2018201920202021
EnergyTotal energy useGJ (millions)35.333.633.834
DirectGJ (millions)29.229.429.129.1
IndirectGJ (millions)6.054.24.74.8
Greenhouse Gas Emissions

(see further details here)

  • Climate change is taking an increasing toll on the earth’s ecosystems, and humanity at large. ICL’s sustainability vision, supported by its Board of Directors and management, includes both a medium-term target to reduce 30% of its total Scope 1 and 2 greenhouse gas (GHG) emissions by 2030, (vs. a 2018 baseline) and a long-term goal of becoming carbon neutral by 2050. To achieve these targets, ICL is taking extensive actions including establishing a multi-year energy efficiency plan, to transition from heavy fuels to renewable energy. These actions resulted in a 13.7% reduction of all Scope 1 and 2 GHG emissions vs 2018 baseline.
  • Approximately 6% of ICL’s Scope 1 emissions are covered under emission-limiting regulations. 
  • In 2021, There were no GHG Emissions reduction due to carbon offsetting.
  • The public independent assurance statements performed by ERM CVS can be viewed here:
 

units2018*201920202021*
GHGTotal Scope 1+2 CO2e tonnes (thousands)2,9402,6492,5072,538
Scope 1CO2e tonnes (thousands)2,2202,2332,1402,158
Scope 2 (market)CO2e tonnes (thousands)720416367380

* An independent assurance process was performed by an external expert, which included verification and validation in accorded with ISO 14064-3 standard for greenhouse gas statements.

** ICL expects to further refine its Scope 3 emissions data collection procedures over time and to include data on Scope 3 emissions in future Disclosures.

Air Emissions

(see further details here)

  • ICL strives to continuously improve its environmental footprint. Reducing air emissions is a central goal of ICL’s environmental strategy. ICL regularly monitors emissions of pollutants to better manage its operations. ICL is taking steps to reduce air emissions by implementing innovative emission prevention solutions and switching to cleaner fuels.

2018201920202021
AirNOxtonnes (thousands)1.51.41.51.3
SOxtonnes (thousands)42.92.52.5
PMtonnes (thousands)0.940.580.530.47
VOCtonnes (thousands)0.0680.0740.0880.086
NH3tonnes (thousands)0.0870.0320.0080.011
Water & Wastewater

(see further details here)

  • Overall global ICL water consumption (potable + non-potable) decreased by 3% between 2020 and 2021. The overall decrease in 2021 was mostly due to ceasing some activities at mining operations in Spain and Israel and reducing water consumption at mining operations in England and China. Total global ICL wastewater output remained similar by, with a slight reduction of 1% in 2021 vs. 2020.
  • In 2021, there were 0 incidents of non-compliance associated with water quality permits, standards, and regulations.

2018201920202021
WaterTotal water usem3 (millions)72.271.97168.6
Fresh waterm3 (millions)19.218.518.620.9
Non-Fresh waterm3 (millions)5353.452.447.7
Wastewater dischargem3 (millions)21.721.42120.7
Waste

(see further details here)

  • Non-Hazardous waste: There are no clear trends regarding the amount of waste produced in ICL’s plants. Amounts can vary significantly over the years. The main reasons are large amounts of waste usually created during one-time construction/renovation projects, and certain waste types which are accumulated in storage ponds or other areas for several years before being transferred for treatment by external professional companies. Non-haz waste quantities decreased by 4% in 2021.
  • Hazardous waste: Can also significantly fluctuate between years since certain waste types are accumulated for several years prior to being transferred for treatment by external professional companies. This explains the 2021 data, as the overall ICL hazardous waste quantities decreased by 19% vs. 2020. This follows an increase of 16% between 2019 and 2020 where large amounts of hazardous waste, accumulated over several years, were sent for treatment by Israeli sites.    

2018201920202021
WasteTotal Wastetonnes (thousands)62.365.267.559.2
Total Haz Wastetonnes (thousands)25.828.436.529.5
Total Non-Haz wastetonnes (thousands)36.536.83129.7
Recycling/Reuse - Haz Waste%30%25%23%19%
Landfill - Haz Waste%62%66%66%41%
Inciniration - Haz Waste%8%10%11%40%
Recycling/Reuse - Non-Haz Waste%48%48%61%35%
Landfill - Non-Haz Waste%51%49%39%65%
Inciniration - Non-Haz Waste%1%2%0%0%
Diversity

(see further details here)

To ensure its goal of promoting gender equality, ICL is implementing and monitoring the following diversity KPI’s, and has set the following quantitative diversity goals, to be reached by 2024. These KPI’s show improvement since 2019, indicating that ICL’s efforts to promote gender equality are providing beneficial results.

End of 20212024 Target
Women in the Overall Workforce19%20%
Women in Senior Management20%25%
Women in ICL Board of Directors 27%25%
EHS

(see further details here)

During 2021, total working hours of ICL employees reached approximately 19.5 million. The total number of accidents decreased by 3.5% in 2021 compared to 2020. RTO (Right to Operate index) is an indicator that ICL has developed in order to measure environmental non-compliance.

Calculations of IR (Injury Rate) and SI (Severity Index) rates are conducted based on a 200,000 factor, multiplied by total lost employee workdays and absent days. The SI methodology is based on an assumption that the number of absent days correlates with the severity of the safety event.

units201920202021
RTO#10310194
IR Rate - Direct employees#0.50.650.73
SI Rate - Direct employees#22.9430.6322.02
Accidents – Direct Employees#506371
Accidents – Contractor Employees#265139
Fatalities – Direct Employees#000
Fatalities – Contractor Employees#120
Total Accidents#77116110
*Severe Transportation Incidents#na00

* Significant incidents occurred during the transport of materials to or from ICL sites. According to SASB RT-CH-540a.2

ICL focuses on proactive leading indicators in order to create a strong safety culture and prevent EHS related events from occurring. Several crisis and emergency drills are performed annually in each site to ensure personnel preparedness. EHS external audits and other assessments are performed in accordance with EU Seveso Directive, OSHA PSM regulation, UK HSE control of major accidents and other leading frameworks.

2021 Planned2021 ActualActual vs Planned
PSM Risk Assessment198226114%
EHS Audits375392104%
Job Safety Analysis (JSA)667930139%
Emergency drills267636238%
Crises drills5566120%

ICL endorses and follows a variety of initiatives and quality management systems to improve and streamline processes and performance, as well as to reduce risks. The great majority of ICL’s production facilities are certified with ISO standards or with equivalent standards for environmental management, safety and quality. All major energy consuming sites are certified with the energy ISO standard. Food and pharma production sites are certified with GMP/Q7 or other designated standards for the food and pharma industries.

201920202021
ISO 14001 or an equivalent standard for environmental management% of production sites certified93%93%84%
OHSAS 18001/ISO45001 or an equivalent standard for safety% of production sites certified91%91%81%
ISO 9001 or an equivalent standard for quality% of production sites certified95%94%94%
Energy management - ISO 50001% of energy consumption84%90%90%
Community Engagement

(see further details here)

ICL’s monetary donations in 2021 amounted to approximately $8 million (including the amount invested in the Visitor Center). In addition, during 2021, ICL contributed, at the Company’s expense, about 12,755 hours of volunteer work of its employees. This amount does not include 12,680 hours of volunteer work after working hours, which was encouraged, organized, and logistically facilitated by ICL.

Category2021
Education$1,700,000
Local Communities & Philanthropy$1,400,000
Food Security$250,000
Health Institutions $660,000
Disaster relief & COVID-19 Support$185,000

*3.8 million USD was invested in the Sdom Visitors Center

Governance

 (see further details here)

  • The Company has adopted an outline for institutionalizing and improving the structure and composition of its Board of Directors. This effort reflects the Company’s ambition to maintain a diverse board of directors, represented in diverse backgrounds, expanding skillsets and experience. This ambition is encompassed by a wide range of skills, special expertise and high-level managerial experience in global complex organization; strategy setting; working with emerging markets; experience in corporate governance, risk management, regulation, environment and gender diversity.
  • ICL’s President and CEO signed the letter of commitment in the Ten Principles of the UN Global Compact initiative on October of 2021. We intend to implement these principles into our company strategy, culture and operations. ICL is strongly committed to decent Work and Economic Growth (SDG 8), Gender Equality (SDG 5) and Climate Action (SDG 13). As evidence, we set specific targets regarding women in senior management (see CEO statement of support for the Women’s Empowerment Principles) and reducing GHG emissions. For more on ICL’s contribution and impact on the SDGs please see Aligning with the UN’s SDGs or search for specific SDGs in our SDG search app on the top right corner of any page in this report.
  • As part of its first TCFD disclosure, ICL identified climate change risks and opportunities. It also implemented a strategy that it uses to analyze and mitigate the relevant risks. From more information on ICL’s TCFD disclosure see ICL’s 2021 Annual Report (pp.95-104)
  • In 2021, 95% of ICL’s employees with access to computers, went through the business ethics online-training. This is a significant increase compared to 2020 (70%).
  • IA refers to Ethical standards aspects in audits conducted annually at ICL sites and as part of dedicated reviews of processes, such as Sales & Marketing, Procurement, Contractors, and once every 3 years conducts a dedicated audit on different Ethical standards (e.g. Code of Ethics, Anti Bribery and Corruption, Anti-Harassment & Discrimination, etc.).

Board & Governance Information
Total Number of Directors11
Number of Non-Executive Directors on Board10
Number of External Directors*2
Number of Independent Directors**5
Separate Chair and CEOYes
Board Meetings Held in 202118
Renewal & Diversity
Annual Election of DirectorsYes
Average Age of Directors59.5
Women Board Members27%

* The definition of “external directors” is pursuant to Israel’s Companies Law, 5759-1999 (the “Companies Law”).

 ** Six directors are independent directors under the rules applicable to U.S companies listed on the NYSE. Five are independent according to Israeli regulations.

For more details on ICL’s Board see ICL’s 2021 Annual Report and Articles of Association.

12.6
Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability into their reporting cycle.
Sustainability Reporting Disclosures:
Disclosure: 103-3
Disclosure: 102-15
Disclosure: 305-1
Disclosure: 305-7
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