Energy

ICL strives to continuously improve its energy efficiency and decrease its emissions. It is doing so by transitioning to renewable energy, utilizing highly efficient electricity production units (natural gas based cogeneration) and implementing multi-year energy efficiency programs. ICL's sustainability vision is supported by the Company’s Board of Directors and management. ICL's target is to increase its renewable energy consumption to 50% by 2040. In 2022, more than 8% of ICL’s energy mix came from renewable energy, doubling last year’s consumption from renewable sources. \

Our energy strategy includes continuous emphasis on energy efficiency and process innovation, transition to zero and low emission sources and electrification as an enabler for this approach.

ICL is in the process of changing its energy sources from primarily highly polluting fuels, such as coal, fuel oil, and shale oil, to natural gas and renewable energy. Over 95% of ICL Israel’s main energy-consuming sites now use natural gas. This process is nearing completion, as Rotem Israel began its operation of a natural gas-based steam boiler in September 2022, replacing an energy production facility that utilized oil shale.

This transition to natural gas has also significantly reduced air pollutant emissions by the Company.

	Units	2018	2019	2020	2021	2022
Total Energy Consumption	Million GJ	35.3	36.52	33.8	34	35.12

* 2022 is the first year in which we are including the data of several production plants in Brazil that ICL acquired in 2021.

**Total energy consumption currently excludes steam and electricity self-generated from exothermic reactions that occur as part of our production process.

In 2022, approximately 11% of the energy consumed by ICL was electricity purchased from the grid, including electricity purchased from national grids with renewable energy certificates (RECs) or Guarantees of Origin. Of ICL’s total energy use, over 8% of ICL’s electricity and steam is sourced from renewable energy.

In recent years, we have invested in transitioning to renewable energy (externally supplied electricity) for most of the electricity we consume at our European sites. In 2022, this approach was successfully rolled out to our facilities in the US and Brazil and initiated in Israel and China. This has significantly reduced the Company’s Scope 2 emissions. ICL Israel has also entered into a long-term power purchase agreement with Doral Energy Ltd., an Israeli company, for “green electricity”, beginning in January 2024. Prospective projects for the longer term include launching a PV plant combined with advanced storage solutions and green hydrogen production at our Sodom site in Israel. The project is currently undergoing a techno-financial analysis. Read more about our renewable energy initiatives, including our SBTi commitment and “green electricity” agreement with Doral Energy Ltd.

7.2

By 2030, increase substantially the share of renewable energy in the global energy mix

Total Direct Energy Consumption by Geographical Regions

Region	2018	2019	2020	2021	2022
APAC	0.74	0.77	0.61	0.52	0.44
US	1.72	1.7	1.7	1.86	2.15
Brazi	0.09	0.08	0.09	0.09	0.57
Europe	2.88	2.51	2.36	2.4	2.37
Israel	23.81	26.92	26.68	26.5	24.85

ICL’s Dead Sea combined heat and power (CHP) plant commenced operations in August 2018. Since becoming fully operational, there has been an increase in ICL’s fuel consumption (direct energy). At the same time, there has also been a significant decrease in the amount of external electricity (indirect energy) consumed by ICL . In 2022, it was necessary to purchase more electricity than in a standard production year due to maintenance performed on ICL’s Dead Sea CHP plant.

Total Indirect Energy Consumption by Geographical Region

Region	2018	2019	2020	2021	2022
APAC	0.95	0.88	1.06	1.03	1.03
US	0.32	0.32	0.32	0.33	0.31
Brazil	0.32	0.29	0.33	0.37	0.43
Europe	2.1	1.99	1.84	1.87	1.81
Israel	2.38	1.06	1.18	1.34	2.65

Total Fuel Consumption by Type

Million GJ	2018	2019	2020	2021	2022
Natural Gas	25.96	28.12	27.9	27.99	27.48
Oil Shale	1.23	1.98	2.02	2.1	1.37
Diesel	1.18	1.1	0.95	0.76	0.88
Coal	0.51	0.58	0.38	0.31	0.2
Wood & wood chips	0	0	0	0	0.16
Heavy fuel oil	0.25	0.09	0.07	0.11	0.12
Gasoline / Petrol	0	0	0	0	0.16
Propane	0	0	0	0	0.05
LPG	0.03	0.02	0.02	0.02	0.03
Kerosene	0	0	0	0	0
Ethanol	0	0	0	0	0
Fuel oil	0.01	0	0	0	0

12.2

By 2030, achieve the sustainable management and efficient use of natural Resources

13.1

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

Energy Intensity

The continued reduction in energy intensity is due to on-going activities in energy efficiency and higher revenues in 2022.

		2018	2019	2020	2021	2022
Energy Intensity	GJ/million $	6,355	6,374	6,693	4,883	3,656

Adding Electric Vehicles to ICL’s fleet

ICL promotes road transport efficiency. To this end, ICL Israel is in the process of transitioning its leased vehicle fleet to hybrid or electric cars for the purpose of reducing CO2 emissions to 100 grams/km by 2023. In addition, high emissions vehicles will not be leased, and vehicles emitting more than 170 grams/km will require CEO approval.

ICL is one of the first companies in Israel to offer a complete package for employees who select EVs. Approximately 25% of ICL’s leased fleet is comprised of EVs, hybrid, and plug-in vehicles. As part of ICL’s efforts to cut its CO2 emissions, ICL provides employees with a home charging station and refunds electricity costs accrued for charging EVs. ICL has also installed charging stations at all its facilities and sites. By the end of 2023, ICL aims to have 200 EVs in its fleet.

Sustainability Reporting Disclosures:

Disclosure: 302-1

Disclosure: 302-3

Disclosure: SASB RT-CH-130a.1

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