TfS Initiative

In 2018, ICL joined Together for Sustainability (TfS), a joint initiative and global network of 43 chemical companies that has created the de-facto global standard for environmental, social and governance (ESG) performance of chemical supply chains. The TfS program is based on UN Global Compact and Responsible Care® principles. \

As pressure on natural resources increases and issues of social justice become more visible, stakeholders expect companies to promote sustainability not only within their own operations, but also with their suppliers. Large companies, such as ICL, which interact with thousands of suppliers around the world, are expected to engage suppliers on sustainability issues and include sustainability considerations in their procurement decisions.

Key Facts

The TfS framework – TfS Assessments and TfS Audits – allow member companies to assess its supply chain from various aspects, such as environmental, labor and human rights, ethics and sustainable procurement. The assessment aims to improve sustainability performance which is tangible and measurable.
TfS is a global initiative, and beyond Europe it has extended its reach and impact in strategic growth areas through regional representation and strategic partnerships in Asia, North America and South America.
Operating as a unique, member-driven organization and peer-to-peer network, TfS member companies are creating sustainability standards for the future chemical industry together.

Through the TfS framework and tools – TfS Assessments and TfS Audits – transparency has been created in the sustainability performance of chemical companies and their suppliers, enabling them to collaborate and continuously improve performance. In addition, its CAP (Corrective Action Plan) delivers tangible, measurable improvements of suppliers’ and member companies’ sustainability performance.

Unique to the TfS Initiative is that the results of TfS Assessments and TfS Audits are shared with all member companies, with the consent of the supplier.

By the end of 2022, ICL has approached 1,250 suppliers.

ICL’s Sustainable Procurement Goals

To better achieve the goals of the initiative, all TfS member companies define their target suppliers’ group, and then track and report on designated KPIs regarding their supplier engagement.

In accordance with ICL’s sustainability vision for 2030, and the guiding principles derived from ICL’s TfS membership commitment, the ICL Procurement Program is based on well defined, measurable goals that create ICL’s roadmap and enable progress.

From the date that ICL joined the TfS initiative through 2022, ICL has selected targeted supplier groups considered to be strategic suppliers in terms of procurement amount and business criticality in the areas of raw materials, logistics and packaging.

In 2022, ICL achieved the following:

KPI 1 – 500 valid assessments from among the supplier pool
KPI 2 – 220 new assessments and reassessments in one calendar year
KPI 3 – 60% improvement in assessments

For 2023, ICL has set the following targets:

KPI 1 – 700 valid assessments from among ICL’s supplier pool
KPI 2 – 360 new assessments and reassessments for the calendar year
KPI 3 – a 60% improvement in assessments

To support this process internally, TfS targets are cascaded down from ICL’s senior management levels and Procurement top management to the GSM level via the Company’s Success Factors platform.

These three metrics ensure the continuity of the process, including maintaining a pool of suppliers with valid CSR assessments and actively encouraging our suppliers to work on improvements, including:

Focusing on improvement through Corrective Action Plans (CAPs)
Driving innovation through cooperation with our suppliers

In line with its ESG strategy and commitment to sustainability, ICL embedded sustainability performance targets, including TfS related targets, as key performance indicators (KPIs) for its Sustainability Linked Loan and Sustainability-Linked Revolving Credit Facility. For further information about the loan and the revolving credit facility see Our Business.

In 2022, ICL began to include EcoVadis sustainability assessment results in its tender process and in a purchasing pilot between contractors and its energy unit.

In 2023 ICL will begin to include an Ecovadis-valid scorecard in its sourcing process. These reflect ICL’s commitment to building a sustainable supply chain.

ICL’s EcoVadis Score

ICL (like all TfS members) must adhere to the same standards as its suppliers. In 2022, ICL completed its fourth global EcoVadis assessment - scoring 75 points and ranking among the top 5% of 75,000 globally ranked suppliers, an improvement of our score compared to 2021. EcoVadis is considered a global leader in ranking sustainable practices of suppliers.