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The scope of this report covers ICL’s efforts in relation to the material topics identified in the Company’s most recent analysis. It is based on guidance provided by the Global Reporting Initiative (GRI).
Material topics are identified using a three-phase process:
ICL conducts an annual review of its external and internal stakeholders and the issues that have become the focus of their interest. ICL reviews the different ways in which it’s activity impacts these topics.
| Perspective | Sources |
|---|---|
| Relevance for the Company | Notifications to investors and regulatory bodies |
| ICL policy documents, including its corporate strategy, Code of Ethics, social license to operate analysis and enterprise risk management | |
| Interviews with leading figures in the organizations. Commissioned questionnaires completed by ICL's executives and sales and marketing teams, ICL’s Sustainability Team expert review | |
| Relevance for Stakeholders | Publicly available policy documents, position papers and other information from key stakeholders |
| Regular direct engagement with stakeholders (e.g. Community Advisory Panels and meetings and correspondence) | |
| Compilation of relevant correspondence by specific business units (e.g. Investor Relations, corporate relations, Sales, Sustainability Team, etc.) | |
| Emerging issues for the chemical & mining sectors | Material issues from relevant organizations and reporting bodies (e.g. IFA, ICMM, GRI, CDP, SASB and local organizations such as Maala) |
| Benchmarking of best practices by world-class peers | |
| Local and national economic, social and environmental context | Analysis of media and social networks |
To determine which topics compiled in the previous stage are material to ICL and each group of stakeholders, both qualitative and quantitative analyses are conducted. Each topic is examined as to the degree of importance it holds for each specific stakeholder and its economic, environmental and social significance and impact on ICL. The degree of importance is graded as high, medium, low or irrelevant, following this assessment and the weighted average for each stakeholder group, and is created from the grades of all the data sources reflecting the group.
The chart represents the material topics, arranged in a matrix according to which topics of material interest to ICL are on the X-axis and material topics of ICL’s external stakeholders are on the Y-axis.
ICL’s material topics are prioritized using various sources of data, including surveys with executives, various ESG-related policies, procedures and strategic documents, and a broad consultative process.
The ICL Sustainability Team assigns additional weight to key information from ICL’s internal agenda during the reporting period, taking into account events such as investments or involvement in a particular issue. This information also includes issues that are addressed extensively by the Board of Directors or the Company’s executives.
Issues that are material to ICL’s stakeholders (represented on the Y-Axis) are compiled primarily from stakeholders’ correspondence and requests for information, stakeholder-published materials and other forms of engagement. In addition, topics that are emphasized by Community Advisory Panels (CAPs), think tanks, industry-specific multiple stakeholder processes and CSR organizations, are also evaluated and given additional weight as part of this process.
The top three topics for each group of stakeholders are listed below:
| Global ESG Methodologies | Local Stakeholder | Investors | |
|---|---|---|---|
| Business Ethics | Effluents, Waste & Hazardous Material Management | Economic Performance | |
| Climate Strategy & GHG Emissions | Compliance | Climate Strategy & GHG Emissions | |
| Employment & Labor Practices | *Climate Strategy & GHG Emissions/Water Management/ Mining remediation & reclamation | Safety & Environmental Stewardship of Chemicals |
*These topics received similar values regarding their importance.
Once the results are compiled, a thorough review of the findings are conducted by the Sustainability Team, in consultation with relevant corporate departments.
The matrix of material topics, which result from the prioritization phase, is discussed and examined by the team in accordance with the GRI Completeness and Stakeholder Inclusiveness principles.
The current assessment confirmed the previous materiality analysis, but also highlighted the growing importance of environmental issues, especially climate change, to ICL’s business and stakeholders.
This heightened awareness is across the board, with all environmental issues receiving increased scrutiny from investors, clients and others in the business community, as well as NGOs. The Company has recorded increased interest in topics such as effluents, waste and hazardous materials management, mining and remediation, and stewardship of chemicals, as well as special interest in climate change and GHG emissions. To enable ICL’s clients to be better informed on the impact of its products, the Company calculated the carbon footprint of its main products. This heightened interest goes hand in hand with ICL’s path of decarbonization. The Company has set an ambitious goal for itself of reducing its GHG emissions by more than 30% by 2030 and has committed to becoming net zero by 2050. This requires using renewable energy on a broader scale than currently exists, continuous innovation of low carbon products and renewable energy storage products, as well as Company investments in circular economy initiatives.
There is a continued consensus, from both ICL’s external and internal stakeholders , with regards to these high-impact environmental issues. There is also consensus regarding social and governance issues, such as labor practices, compliance and business ethics.
Two issues are regarded by ICL’s external stakeholders as an even higher priority than the Company. They are water management, and biodiversity and nature conservation. As ICL sees the importance of these issues increase among its stakeholders, it is looking to take various steps in the future, regarding its performance and related reporting. ICL has recently set a goal of reducing its water use in water-stressed regions.
There are multiple issues that are of high impact for ICL, but are less so for its external stakeholders. These are mostly operational and HR related issues.
In addition to environmental issues, several other main themes were given a higher priority within the organization this year compared to last year. The first is Social, the holistic approach to human resources. This continues to be a high priority for ICL. Paths for advancement and continuous learning within the organization have been broadened. Increasing the diversity of ICL’s employees is also a priority. Multiple quantitative targets have been set, regarding diversity in employment.
As mentioned above, issues concerning Governance were also a main issue. ICL has published an anti-harassment and discrimination policy, and in 2020 published a new human rights policy.
In addition, ICL is becoming more involved in the transparency and practices of its supply chain, participating in initiatives such as the TfS (Together for Sustainability) which conducts supplier sustainability assessments and audits to encourage awareness and improvement in the ESG practices of ICL’s suppliers. Quantitative goals and targets have been set in this area, as well, and the Company is working with its suppliers to disclose their ESG performance.
This year’s report also updates and elaborates on specific subjects that are considered material for ICL’s stakeholders, such as the Dead Sea water level, the rehabilitation and re-opening of the Ashalim creek following the 2017 incident , and issues regarding mining in Spain. This report also expands on ICL’s continued efforts regarding Circular Economy. Significant environmental incidents during 2020 are also reported on this page.
