Sustainable Procurement

ICL is part of a complex value chain as a major supplier to businesses and the public, as well as a purchaser of materials and services. The Company is extending its sustainable practices through significant engagement with its supply chain. \

ICL strives to positively impact its customers and suppliers. ICL’s programs support best practices, both in the agricultural sector (balanced fertilization) and the industrial sector (SAFR).

ICL aims to improve sustainability along its entire value chain. The Company has made substantial progress in its long-term efforts to manage its operations responsibly and decrease its environmental impact. This endeavor includes, among other things, a commitment to top tier environmental performance and complete product responsibility. ICL also aims to be an employer of choice and to verify that its contract workers are treated fairly.

An essential element in ICL’s organizational culture is to strictly adhere to sustainability principles. ICL’s core commitment to create impact for a sustainable future is aligned with the UN’s Sustainable Development Goals. Commencing in 2021, ESG performance targets, including suppliers’ sustainability performance, are embedded as part of the annual short term incentive plan for all executive officers, to reflect our commitment to create impactful solutions for humanity’s sustainability challenges. For additional details regarding our supply chain components and goals, see TfS.

ICL has further implemented its ESG strategy and commitment to sustainability using sustainability performance targets relating to sustainable procurement by embedding them as Key Performance Indicators for a Sustainability Linked Loan and a Sustainability-Linked Revolving Credit Facility which were negotiated and received. For further information regarding the loan and the revolving credit facility, see ‘Our Business’.

SMETA/Sedex — Responsible Business in Global Supply Chains

Several of ICL’s production sites are part of the Sedex initiative. Sedex is a membership organization that provides platforms for companies to manage and improve working conditions in global supply chains. ICL sites have conducted SMETA audits which use Sedex's social auditing methodology, enabling businesses to assess their sites and suppliers to understand working conditions in their supply chain.

ICL Group Sustainable Procurement Policy

ICL is embedding sustainability in its activities, including procurement, based on the belief that sustainability is a shared responsibility. Sustainability plays a key role in establishing a clear and transparent link with the Company’s entire supply chain. The Company works closely with stakeholders to meet joint sustainability goals. Improving ICL’s sustainable procurement performance is a complex, ongoing process, involving all of its suppliers. ICL is committed to establishing partnerships with its stakeholders to enable achieving the Company’s business goals in a sustainable manner.

Sustainable Procurement Goals

Promote Sustainable Procurement as part of the TfS initiative (Together for Sustainability) with an annual target of 700 TfS validated suppliers
Minimize environmental impact by optimizing the use of natural resources and effectively managing waste in the supply chain
Optimize the delivery and usage of products and services in ICL’s production processes
Manage risk and improve internal and external standards through sustainability performance assessments across the supply chain
Promote and enable sustainable innovation across ICL’s supply chains
Drive adoption of sustainable practices across the supply chain by establishing partnerships with ICL’s suppliers with the joint goal of continuously improving sustainability performance over time
Strive to include sustainability practices, performance, and transparency, as part of ICL’s supplier selection process, thus encouraging active sustainability inclined partners among ICL’s suppliers

Supplier Code of Conduct

ICL’s Supplier Code of Conduct reflects ICL’s expectation that its suppliers will cooperate and support the establishment and promotion of a sustainable supply chain. The Code of Conduct includes commitments from suppliers regarding environmental protection, health, safety, security, responsible employment, human rights, and business ethics. The Code of Conduct was first published in 2020, and ICL’s GPO (Global Procurement Organization) is currently implementing it with both existing suppliers and in new supply agreements.

ICL and the TFS initiative

In 2018, ICL joined the Together for Sustainability (TfS) Initiative. TfS is an industry-leading initiative driven by chemical procurement specialists. ICL, together with 42 other large chemical member companies, engage their suppliers and encourage them to improve their practices on issues such as environment, safety, fair employment, business ethics and more. Through TfS, ICL measures the sustainability performance of its suppliers. Results are shared with all TfS members (with respect of company’s confidentiality) enhancing efficiency, transparency and encouraging industry-wide collaboration with continuous improvement.

We can only bring sustainability to a higher level if we work together. This is why we would like to invite our suppliers to take an active part in sustainability activities by participating in the EcoVadis assessment or the TfS audits.”

Heinrich Berger, VP Global Raw Material Procurement

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