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About This Report

ICL’s Corporate Responsibility (ESG) report describes its approach to ESG and the actions it has taken during 2022, to advance responsible and sustainable business practices. This is the 13th successive year that ICL has published a Corporate Responsibility (ESG) Report. \

For the 13th successive year, ICL has published an ESG report.

ICL continues to strengthen its data collecting and reporting practices, becoming more efficient and effective throughout its operations. In all cases, the data relates to the 2022 calendar year, unless otherwise stated. For most quantitative indicators, data from previous years is presented as a baseline for comparison. ICL’s previous report was for 2021 and was published in May of-2022. 

The quantitative information in this report relates to all ICL segments and other units. The report covers all ICL’s global operations.

Unless stated otherwise, all quantitative data is based on an operational control approach in terms of reporting boundaries. The report includes (amongst other things) information about a significant joint venture (YPH). The joint venture with a Chinese company, YPH, commenced at the end of 2015.

In January 2021, we completed the acquisition of Agro Fertiláqua Participações S.A., one of Brazil’s leading specialty plant nutrition companies, and in July 2021, we acquired the South American Plant Nutrition business of Compass Minerals América do Sul S.A. (ADS). As these are relatively new acquisitions, the environmental data (GHG emission, energy consumption, etc.) published regarding 2021 does not include data from the related sites. However, these sites were included in the reported safety data and financial disclosures, unless otherwise specified. Beginning this reporting cycle, the 2022 environmental data from these newly acquired production sites is reported on as well. 

A list of ICL’s main entities included in this report can be found in the Organizational Structure diagram – as in ICL’s 2022 Annual Report(see Note 24 – Group Entities). 

As ICL has established updated goals regarding GHG and other environmental indicators, a new baseline was created for the year 2018. This was also an opportunity to include a more relevant scope of entities that are included in GHG and other calculations. Since 2019, ICL has been operating a new and highly efficient Sdom CHP plant that supplies most of the electricity to ICL’s sites in Israel, replacing externally purchased electricity by ICL Israel. This has influenced some of the environmental indicators. At ICL Boulby, changes in production and shifting mining from Potash to solely Polyhalite, have reduced the water flow to the North Sea. This has had an effect on other environmental indicators as well. 

Information was collected internally by the Company’s Global Sustainability department with expertise on environment, human resources, safety, ethics, governance, community engagement and more. Environmental and social data were collected from dozens of ICL sites worldwide. A major part of the EHS quantitative data was collected using the ICL sustainability IT reporting system. ICL continues its attempts to further deepen its reporting transparency and expand its scope of data regarding the environment, safety, diversity in the workplace, supply chain and other categories.

Corrections have been made in some previously reported environmental and safety KPIs. All corrections compared to the previous report (2021) did not cause a significant change in the reported figures or the overall trends. When made, these corrections were identified as reporting errors from specific sites in specific EHS KPIs. 

ICL audited its 2022 GHG emissions data and audited its water withdrawal data for 2021 and is in the process of auditing its 2022 water withdrawal data. 

ICL has incorporated relevant SASB (Sustainability Accounting Standard – Chemicals) and TCFD (Task Force on Climate -related Disclosures) indicators into the report. Our second comprehensive TCFD disclosure was published in ICL’s 2022 Annual Report

ICL has reported information with reference to the GRI Standards and the UN SDGs. Additionally, the report addresses the GRI’s Mining and Metals Sector Guidance supplement. However, not all guidelines are applicable or relevant to ICL’s business, and they have been applied selectively to relate to the Company’s mineral extraction activities.

ICL selected the content for this report by prioritizing its material impact on sustainability, following a process of evaluation by both internal and external stakeholders. ICL personnel, including ICL senior executives, were interviewed for the purpose of gathering and verifying data processes for this report. The highlights in the report and its structure are based on the diverse composition of ICL’s stakeholders. ICL includes its primary impact on a corporate level, as well as through greater levels of detail, so that the report is relevant for as many stakeholders as possible. All aspects addressed in this report are material within the organization. Where the issue has been identified as relevant within the organization, it applies across all entities of ICL’s business.

In order to maintain consistency with the Company’s various international reporting standards, all information collected from ICL’s sites around the world, including Israeli sites, are presented in this report using international protocols (e.g. CDP, GRI) which ICL has used successfully for over 10 years. The information reported is a result of direct analysis of the issues under discussion and calculations when required (unless otherwise noted). 

Auditing ICL’s 2021 GHG Emission - Scope 1 and 2

ICL has successfully audited its 2018 emissions in order to have a reliable baseline as part of its commitment to reducing its GHG emissions. Following that process and as part of its carbon strategy, ICL audited its 2021 and 2022 GHG emissions as well.

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.

Forward Looking Statement

This report or written statements made by ICL Group during its report, or from time to time, may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws.  Whenever words such as “believe”, “expect,” “anticipate”, “intend”, “plan”, “estimate”, “predict”, “strive”, “target”, “up to”, “expansion”, or similar expressions are used, the company is making forward-looking statements. Such forward-looking statements may include, but are not limited to, those that discuss strategies, goals, targets, objectives, financial outlooks, corporate initiatives, our long-term business, financial targets and outlook, current expectations, existing or new products, existing or new markets, operating efficiencies, or other non-historical matters. Because such statements deal with future events and are based on ICL Group’s current expectations, they could be impacted or be subject to various risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 20-F for the year ended December 31, 2022, and in our current report on Form 6-K for the results for the quarter ended March 31, 2023, filed on May 10, 2023, and in subsequent filings with the Tel Aviv Securities Exchange (TASE) and/or the U.S. Securities and Exchange Commission (SEC). The ICL Group’s strategies, business and financial targets, goals and objectives are subject to change from time to time.  Therefore actual results, performance or achievements of the company could differ materially from those described in or implied by such forward-looking statements due to various factors, including, but not limited to loss or impairment of business licenses or mineral extractions permits or concessions; volatility of supply and demand and the impact of competition; the difference between actual reserves and our reserve estimates; natural disasters; and cost of compliance with environmental regulatory legislative and licensing restrictions including laws and regulations related to, and physical impacts of climate change and greenhouse gas emissions; failure to harvest salt, which could lead to accumulation of salt at the bottom of the evaporation Pond 5 in the Dead Sea; litigation, arbitration and regulatory proceedings; disruptions at our seaport shipping facilities or regulatory restrictions affecting our ability to export our products overseas; changes in exchange rates or prices compared to those we are currently experiencing; general market, political or economic conditions in the countries in which we operate; price increases or shortages with respect to our principal raw materials; pandemics may create disruptions, impacting our sales, operations, supply chain and customers; delays in termination of engagements with contractors and/or governmental obligations; the inflow of significant amounts of water into the Dead Sea which could adversely affect production at our plants; labor disputes, slowdowns and strikes involving our employees; pension and health insurance liabilities; changes to governmental incentive programs or tax benefits, creation of new fiscal or tax related legislation; and/or higher tax liabilities; changes in our evaluations and estimates, which serve as a basis for the recognition and manner of measurement of assets and liabilities; failure to integrate or realize expected benefits from mergers and acquisitions, organizational restructuring and joint ventures; currency rate fluctuations; rising interest rates; government examinations or investigations; information technology systems or breaches of our, or our service providers’, data security; failure to retain and/or recruit key personnel; inability to realize expected benefits from our cost reduction program according to the expected timetable; inability to access capital markets on favorable terms; cyclicality of our businesses; the company is exposed to risks relating to its current and future activity in emerging markets; changes in demand for our fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond our control; disruption of our, or our service providers’, sales of our magnesium products being affected by various factors that are not within our control; our ability to secure approvals and permits from the authorities in Israel to continue our phosphate mining operations in Rotem Amfert, Israel; volatility or crises in the financial markets; hazards inherent to mining and chemical manufacturing; the failure to ensure the safety of our workers and processes; exposure to third party and product liability claims; product recalls or other liability claims as a result of food safety and food-borne illness concerns; insufficiency of insurance coverage; war or acts of terror and/or political, economic and military instability in Israel and its region; filing of class actions and derivative actions against the Company, its executives and Board members; closing of transactions, mergers and acquisitions; and other risk factors discussed under Item 3 – Key Information – D. Risk Factors in the company’s annual report on Form 20-F for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2023 (the “Annual Report”). Forward‑looking statements speak only as of the date they are made and, except as otherwise required by law, the company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements, targets or goals in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Readers, and viewers are cautioned to consider these risks and uncertainties and to not place undue reliance on such information. Forward-looking statements should not be read as a guarantee of future performance or results and are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward‑looking statements. Non-GAAP Financial Measures: Included in this report are non-GAAP financial measures designed to complement the financial information presented in accordance with IFRS, because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with IFRS. Other companies may calculate similarly titled non-GAAP financial measures differently than the company. 

Sustainability Reporting Disclosures:
Disclosure: 2-2
Disclosure: 2-3
Disclosure: 2-4
Disclosure: 2-5
Disclosure: 103-1