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Select SDGs to find out how we are taking action in support of the UN Substinable Development Goals
Resilient food production systems are critical, now more than ever, for food security. ICL’s vital role is expected to expand as climatic uncertainty impacts humanity’s global supply chains. Our “Zero Hunger” goal (SDG2) is now intertwined with Climate Action (SDG13).
Given the increased need for climate action, ICL has also incorporated several SASB (Sustainability Accounting Standard) and TCFD (Task Force on Climate-related Disclosures) indicators into the report, in addition to GRI Standards. As the Company gains experience, it will include disclosures recommended by the TCFD in its 2021 financial report.
The Company is already committed to addressing climate change. ICL plays a role in addressing the global challenge of heat waves, floods, droughts, forest fires, and other extreme weather events that are taking a toll on humanity worldwide.
ICL is aligned with the scientific assessment, addressed by the Paris Agreement, that GHG reductions are needed to limit global warming to 2℃. In ICL’s roadmap towards decarbonization, it is examining additional measures to further reduce GHG emissions in line with the effort to limit warming to 1.5 degrees.
The Company’s stakeholders have a major interest in seeing ICL commit to taking on this challenge. These range from farmers and other ICL customers and business partners, to society at large and investors considering the financial risks and opportunities.
ICL’s approach is systematic and the Company is moving in sync on all fronts. ICL’s Board of Directors and senior management support the decarbonization roadmap. The Company is also committed to following the TCFD guidelines regarding disclosures of its Carbon Strategy, risks (both short term and long term) and quantitative matrix.
Encompassed in this systematic approach, is the establishment of internal financial tools that contribute to decision making. ICL has added internal carbon pricing mechanisms, to both support new investments and to internalize external costs, as well as to manage future risks.
ICL 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. These targets have been embedded in executive measures for success and financial performance-based benefits for key executives. In parallel, ICL’s industrial operations continue to innovate, establishing best practices for Industry 4.0. The Company is engaged in continued efforts to eliminate process inefficiencies and optimize its operations, in a manner that is consistent with mitigating greenhouse gas emissions. Among other measures, it is upgrading cooling systems to reduce the release of refrigerants with high GHG global warming potential. ICL is also rapidly transitioning to electric vehicles and, when possible, electric heavy-duty vehicles. Responsibilities have been defined for collecting, managing and analyzing GHG data from all of ICL’s global operations.
ICL has a dedicated EVP for Operational Excellence, Innovation & Energy, whose team is working to implement advanced energy efficiency, transitioning from fossil-fuel based processes to electricity-based processes. They are also responsible for growing the renewable energy component in ICL’s fuel mix. These will be critical components of the decarbonization road map.
The Company’s global procurement organization is a part of the effort to purchase and install renewable electricity. It is engaging in extensive training to raise awareness, among ICL suppliers, regarding sustainability, transparency and carbon emissions reduction, as part of the TfS program.
ICL’s Research, Development and Innovation (RD&I) organization is establishing both short-term and long-term goals for GHG emissions reduction technologies. Research, redesign and implementation of low carbon solutions are currently being introduced in an effort to mitigate process-based and product-based emissions and to meet future needs. In the short term, ICL’s RD&I will use its existing infrastructure to challenge both internal and external partners to introduce solutions. The Company has successfully done so with respect to the COVID-19 crisis, and it intends to implement this experience to contend with other global challenges. ICL’s employees have risen to the challenge and brought forward innovative solutions to operational challenges and created new business opportunities. Management is confident that they will meet new challenges, as well. For longer-term solutions, ICL will tap into both ICL’s own RD&I as well as the market at large, through its Open Innovation platforms.
Finally, the Company intends to launch a dedicated climate-related initiative which will examine and finance both internal and external decarbonization opportunities for ICL. These may include financing for onsite and offsite renewable energy projects, redesign of high-emission manufacturing processes, energy efficiency implementation projects, joint low-carbon ventures with suppliers and customers and electrification of vehicles, heavy equipment and various facilities. A committee representing ICL’s global operations and financial management will lead the initiative with a company-wide perspective, advancing projects and opportunities that hold the greatest decarbonization potential for ICL.
