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Select SDGs to find out how we are taking action in support of the UN Substinable Development Goals
ICL approved and updated its sustainability vision to include both a medium-term target to reduce 30% of its scope 1+2 GHG emissions by 2030 (vs. a 2018 baseline) and a long-term goal of becoming carbon neutral by 2050.
Climate change, or global warming, refers to the rise in average surface temperatures on Earth. Climate change results primarily from the use of fossil fuels, which release carbon dioxide and other greenhouse gases into the air. These trap heat within the atmosphere, which can have a range of effects on ecosystems, including rising sea levels, severe weather events, drought and others.
Therefore, ICL has taken upon itself a more ambitious reduction goal than in the past. The Company has approved and updated its sustainability vision to include both a medium-term target to reduce 30% of its GHG emissions by 2030 (vs. a 2018 baseline) and a long-term goal of becoming carbon neutral by 2050. As part of this process ICL has updated the scope of its companies that are included as part of the GHG emissions reporting. Companies that have been divested are not included in the baseline reporting nor in the GHG emissions reporting of following years. To make the GHG emissions accounting even more robust and meaningful, ICL is auditing its baseline with an external international auditor.
ICL has successfully audited its 2018 emissions in order to have a reliable baseline as part of its commitment to reducing its GHG emissions. The audit was performed by ERM. The public Independent Assurance Statement Can be viewed here.
As the scope of ICL’s GHG emissions was updated to better reflect its current business portfolio there were updates to the 2018 GHG (Scope 1 and 2) emissions reporting. In addition,there were some updates regarding electricity and renewable energy certificate figures as well as some specific emission factors.
The change in scope was also reflected in the 2019 GHG (Scope 1 and 2) emissions data.
ICL expects this process to continue in the years to come as it works to reduce its emissions and have third party verification for its reductions.
Following are the annual trends in total GHG emissions by scope (all converted into CO2e terms). ICL’s comprehensive GHG inventory analysis is based on the GHG Protocol methodology. The measured emissions include the following GHG’s: CO2, CH4, N2O and HFCs/HCFCs and SF6. In all years, ICL had zero consumption/emission of PFCs and NF3.
Note: In the chart below, 2018 appears as the base year used by ICL to measure its long-term performance (in addition to short-term, year by year performance).
Approximately 8% of ICL’s scope 1 emissions are covered under emissions-limiting regulations.
| 2018 | 2019 | 2020 | |||
|---|---|---|---|---|---|
| GHG | Scope 1 | CO2e tonnes (thousands) | 2,220 | 2,331 | 2,136 |
| Scope 2 | CO2e tonnes (thousands) | 720 | 456 | 428 | |
| *Total scope 1+2 GHG emission | CO2e tonnes (thousands) | 2,940 | 2,787 | 2,564 |
| 2018 | 2019 | 2020 | |||
|---|---|---|---|---|---|
| GHG | **Scope 3 | CO2e tonnes (thousands) | 93 | 86 | 53 |
*ICL has conducted a 3-party assurance to the Scope 1 & 2 emissions of the baseline year for its decarbonization targets (FY 2018). As part of the assurance process, the scope and boundaries were updated to follow GHG Protocol guidelines and cover ICL's properties worldwide.
**Emissions of scope 3 include, wastes, logistics and employee travel. It was recalculated as there was found to be a duplication in the logistics calculations. ICL is reassessing its Scope 3 emissions and expects it to include a broader scope in the 2021 reports.
Scope 1 and Scope 2 GHG emissions have been reduced by 10.5% compared with the 2018 base year emissions. Scope 1 and Scope 2 emissions were reduced by 7% in 2020 compared to 2019, surpassing the annual target of 3% YOY (year-on-year) reduction.
The reduction in 2020 mostly resulted from a decrease in Scope 2 emissions in ICL Europe sites. Some of this decrease was the result of the Company’s initiative to purchase 100% renewable electricity (from the beginning of 2019) for the majority of ICL sites in Europe (more details here). Even in sites where ICL did not purchase 100% renewable electricity in 2019, most suppliers to ICL Europe sites have been reducing the emission intensity of their electricity, resulting in lower emission factors and lower indirect emissions. An additional decrease in 2020 was due to cessation of the Vilafruns mine operations in Spain and a decrease in activity in a few ICL sites due to the COVID-19 crisis.
A main emission trend between 2017-19 relates to the new Sdom CHP (Combined Heat and Power) plant. This highly efficient plant has been supplying almost all electricity consumption for ICL Israel sites since August 2018. The new plant’s electricity is much lower in carbon intensity compared to a smaller, older, and less efficient power plant that still exists on site, and previously used external electricity, thus resulting in significantly decreased Scope 2 emissions.
A significant amount of electricity from the new plant was sold by ICL to the Israel Electric Company (national grid), and other external customers (an overall of 559K MWh in 2020, approx. 30% of the plant’s produced electricity).
Overall, total GHG emissions in ICL Israel decreased by 11.6% (~240k tonnes CO2e) in 2020 (during which the new power plant was fully operational), compared to the 2018 baseline. However, the electricity produced by ICL for external customers replaced the generation of more carbon-intensive electricity by less efficient power plants. Therefore, in a broader perspective, the new power plant allows for a reduction of the overall climate impact of the State of Israel (in addition to other environmental benefits).
GHG Intensity is calculated by compiling all GHG emissions for scope 1 + 2. There is a slight decrease in ICL’s GHG intensity (vs 2018 baseline), though there was a larger reduction in absolute GHG emissions. Sales figures for 2020 were lower than 2018.
ICL has developed a comprehensive decarbonization plan. Therefore the Company expects its scope 1+2 GHG emissions to continue and decrease.
The Company has taken various measures to continue reducing its GHG emissions. The main steps already taken and/or planned for the upcoming years include:
Furthermore, in upcoming years the Company plans to install photovoltaic (solar energy) electricity production capacity in available and appropriate areas within the operational boundaries of ICL sites in Israel, Spain, Germany and additional countries.
ICL received an “A-”score for its 2020 CDP Carbon Report. ICL’s 2020 score is tied for highest score among Israeli companies, and the company is tied for the highest score in its global fertilizer peer group. This achievement recognizes ICL's advanced climate change management practices and successful endeavors to reduce GHG emissions.
Several large industrial companies, including ICL Terneuzen, located in the Zeeland province in the southwest of the Netherlands, have created an ambitious climate plan. The industrial companies, including some of the largest energy consumers in the province, plan to reduce their CO2 emissions by 85% to 90% by 2050, in line with the Paris climate accord.
The Zeeland companies participating in the climate plan include ICL the Netherlands Terneuzen, Yara (located in Sluiskil), Zeeland Refinery (located in Nieuwdorp), Trinseo, Dow Benelux, and Cargill (located in Sas van Gent). Their climate plan was developed together with companies from West Brabant and Flanders and calls for using each other's residual heat and waste materials.
The companies have drawn up a roadmap with measures needed to achieve this objective. The plan includes storage and recycling of CO2 as well as the use of hydrogen.
