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Select SDGs to find out how we are taking action in support of the UN Substinable Development Goals

GHG & Climate Change

Climate change is taking an increasing toll on the earth’s ecosystems, and on 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. ICL is moving the goalpost further and has committed this year to the SBTi. The Company is taking strategic steps to achieve its decarbonization goals. These steps resulted in a 18.1% reduction of Scope 1 and 2 GHG emissions vs. the 2018 baseline. ICL’s second consecutive Task Force on Climate-related Financial Disclosures (TCFD) was published in ICL’s 2022 Annual Report and includes a comprehensive assessment of its material  climate risks and opportunities. \

Commitment To Science Based Targets Initiative

ICL’s Board of Directors and senior management adjusted the Company’s climate strategy to align with the aims of the Paris Agreement. As we continue our journey towards a more sustainable future, in March 2023 the Science Based Targets initiative (SBTi) officially confirmed ICL’s commitment to creating a decarbonization plan in accordance with the SBTi. The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The purpose of the SBTi is to drive ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets.

The Company’s sustainability goals include a 30% reduction in absolute Scope 1 and Scope 2 GHG emissions and a call for renewable energy to represent 50% of total energy consumption by 2040, each compared to a 2018 baseline. These targets will be adjusted to reflect our SBTi commitment as we advance in the process. 

ICL is cognizant of the accelerating pace of climate change and with it, the impacts and challenges that our stakeholders and the Company face. As a result, the Company is participating in the international commitment to reduce GHG emissions, including by making a commitment to the SBTi.

The impact of climate change is especially acute in agriculture, where ICL is a leader in enabling resilient agriculture. Our solutions include multiple products that support the planet’s ability to better withstand climatic stress.  

In addition, ICL, as a leading global specialty minerals company, is part of a business sector that can be a vital enabler for the transition to a low carbon economy through development of innovative products and services. Our offerings include, among other innovative products, energy storage solutions that enable the ability to store renewable energy and support the electric car industry.

In addition to our products and services, we are taking a systematic approach to reduce our GHG emissions across our global operations and have created programs to reduce carbon emissions in all our operations. These multiple initiatives and programs required the mobilization of the entire Company and have resulted in an 18.1% reduction of all Scope 1 and 2 GHG emissions vs. the 2018 baseline.

Sustainability Linked Finance

To demonstrate our strategic commitment to sustainability as well as to enhance ICL’s climate strategy, several of our financial instruments and lending facilities have been embedded with sustainability performance targets, as part of their Key Performance Indicators. In September 2021, ICL raised a €250 million sustainability linked loan ("SLL"). In April 2023, ICL further expanded and increased its commitment to ESG by entering into a Sustainability-Linked Revolving Credit Facility Agreement for a $1.55Bn credit facility ("Sustainability-Linked RCF"). The ESG KPIs include a reduction in Absolute Scope 1 & 2 GHG Emissions. Read more about our SLL & Sustainability-Linked RCF.

As part of ICL’s climate strategy and GHG emission reductions goals, ICL measures and tracks its operations’ GHG emissions. Emissions data is collected, verified and reported on a regular basis. As we advance in our corporate management of GHG emissions, we incorporate digital tools which support the effective implementation of our decarbonization roadmap. We are also currently in the process of assessing ICL’s Scope 3 emissions.

Units20182019202020212022Reduction 2022 vs. 2018% Reduction 2022 vs. 2018
Scope 1CO2e tonnes (thousands)2,2202,2332,1402,1582,126624.2%
Scope 2 (Market)CO2e tonnes (thousands)72041636738028133861%
Total Scope 1+2CO2e tonnes (thousands)2,9402,6492,5072,5382,40740018.10%

Approximately 1.8% of ICL’s Scope 1 emissions are covered under emissions-limiting regulations.

GHG Intensity

GHG emissions intensity represents total Scope 1 and 2 GHG emissions calculated relative to sales in USD — Scope 1 and 2 GHG Emissions/Revenue. This calculation enables ICL to compare the emissions of different business segments or regions within the Company. There has been a substantial reduction in ICL’s GHG intensity. Overall, ICL’s GHG intensity trend indicates a reduction in GHG intensity of 55% lower over five years (since the baseline year of 2018), 52% lower over the last three years, and 34% lower over the last year. The past year’s reduction resulted from both a significant increase in sales by the Company and a continued decrease in ICL’s GHG emissions, as the Company continued to implement its decarbonization roadmap. 

20182019202020212022
GHG Intensity (emissions/Revenue - t/$M))529505500365240

GHG Emissions reduction due to carbon offsetting

Unit20212022
Carbon OffsettingCO2e tonnes (thousands) 00

GHG Emission Targets

Decarbonization Roadmap

We have established an aggressive decarbonization roadmap to achieve our target of becoming carbon neutral by 2050. Our near-term milestone is to reduce our Scope 1 and 2 GHG emissions 30% by 2030 (vs. our 2018 baseline).   Our commitment to SBTi initiated a process in which a new decarbonization plan with more ambitious targets will be developed, ensuring that our climate action plan is in line with the latest science. As we continue our journey to a more sustainable future, we will continuously keep these goals in mind to ensure that our day-to-day actions are consistent with our long-range goals.  

To date, ICL has implemented several measures and processes in its decarbonization roadmap. The reduction trend of 2018-2022 is a result of multiple successful processes:

  • Operating a new ICL Dead Sea (combined heat and power) CHP plant. This highly efficient plant has supplied almost all electricity needs to ICL Israel sites since August 2018. It replaced older, oil-fired power generation systems. The new plant’s electricity has lower carbon intensity compared to electricity purchased from the grid.
  • Phasing out oil shale-firing for power generation at ICL Rotem (Israel), in favor of a more efficient gas-fired power generation plant with a much lower GHG emissions 
  • Transitioning to electricity produced from renewable and zero carbon sources. The process began with the procurement of renewable electricity for ICL sites in Europe, followed by the US and Israel. This has enabled a reduction of Scope 2 emissions. Making a continuous concentrated effort to achieve energy efficiency. In recent years ICL’s ACE—energy efficiency program, has reduced both energy costs and energy consumption, thus reducing GHG emissions. 

Total Scope 1 and 2 GHG emissions were reduced by 18.1% (vs 2018 baseline).

Renewable Power Purchase Agreement in Israel

In early 2023 ICL became one of the first companies in Israel to enter into a long-term power purchase agreement for renewable energy. ICL signed a contract with Doral Energy Ltd., an Israeli company, for "green electricity". According to the 15-year long-term agreement, ICL will purchase, on an annual basis, 75 million kWh of electricity from renewable sources.  ICL estimates that approximately 500k tonnes of CO2e will be reduced over the duration of the agreement. 

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13.1
Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

Additional GHG Emissions Reduction Measures

Other measures in our Decarbonization Roadmap for future implementation include:

  • Increasing electricity sourced from renewable energy by additional strategic renewable power purchase agreements. 
  • Exploring new materials with lower global warming potential and technologies to reduce process emissions. 
  • Increasing energy efficiency through the phasing out of inefficient production technologies, streamlining production facilities, increasing the efficiency of consumption of heat and steam and recovering heat, where possible.
  • Installation of solar photovoltaic (solar PV) electricity generation systems in all available and appropriate areas within the operational boundaries of ICL sites.

Read more in our 2022 Annual Report, pages 103-104 

Auditing ICL’s GHG (Scope 1 & 2) Baseline emissions

ICL has successfully audited and conducted a third party assurance on its total Scope 1 and 2 GHG emissions. The audit was performed by ERM CVS. The public independent assurance statements can be viewed here:

ICL’s GHG inventory analysis is calculated according to the GHG Protocol. The GHG emissions include all direct (“Scope 1”) and indirect energy-related (“Scope 2”) emissions of the primary known greenhouse gasses, including: CO2, CH4, N2O and HFCs/HCFCs and SF6. During the years reported there was no consumption or emissions of PFCs or NF3. Direct emissions include emissions from stationary and mobile fuel combustion, refrigerants, non-energy related process emissions and emissions from onsite wastewater treatment facilities. Indirect energy-related emissions include the calculated emissions resulting from consumption of purchased electricity, steam, heating and cooling.

Climate Reporting

For information about carbon emissions reporting (such as CDP) please see Carbon Disclosures.

Sustainability Reporting Disclosures:
Disclosure: SASB RT-CH110a.1
Disclosure: TCFD Metrics and Targets b
Disclosure: TCFD Metrics and Targets c
Disclosure: GRI 305-1
Disclosure: GRI 305-2
Disclosure: GRI 305-3
Disclosure: GRI 305-5

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