ESG Metrics

ICL aspires for best practices in the management of all ESG components. Following are the main ESG quantitative KPIs (Key Performance Indicators) from recent years, and related trend analysis. \

Economic Performance

(see further details here)

	Units	2020	2021	2022
Sales	$ millions	5,043	6,955	10,015
Operating Income	$ millions	202	2,611	3,516
Adjusted Operating Income	$ millions	509	1,194	3,509
Total Adjusted Net Income - Shareholders of The Company	$ millions	258	824	2,350
Cash Flow From Operating Activities	$ millions	804	1,065	2,025

Environmental Performance

(see further details here)

Greenhouse Gas Emissions

(see further details here)

- Climate change is taking an increasing toll on the earth’s ecosystems, and 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. To achieve these targets, ICL is taking extensive actions including establishing a multi-year energy efficiency plan, to transition from heavy fuels to renewable energy. These actions resulted in a 18.1% reduction of all Scope 1 and 2 GHG emissions vs 2018 baseline. Our GHG emission reduction (Total Scope 1+2) in 2022 was 5.16% vs 2021, and no GHG emissions reduction was due to carbon offsetting.
- In March 2023, the Science Based Targets initiative (SBTi) officially confirmed ICL’s commitment to creating a decarbonization plan in accordance with the SBTi. ICL’s targets will be adjusted to reflect our SBTi commitment as we advance in the process.
- Approximately 1.8% of ICL’s Scope 1 emissions are covered under emission-limiting regulations.
- ICL is committed to identifying, and managing the risks and opportunities that climate change and the low carbon transition may bring. This commitment is reflected in the company’s support of the Task Force on Climate related Financial Disclosures (TCFD). ICL published its second TCFD disclosure in its 2022 Annual Report (Item 4). We progressed further in our efforts to better understand the potential impact of climate-related risks and opportunities on the Company as well as to further embed TCFD recommendations into our public disclosure.
- The public independent assurance statements performed by ERM CVS can be viewed here:

		Units	2019	2020	2021*	2022
GHG	Total Scope 1+2	CO2e tonnes (thousands)	2,649	2,507	2,538	2,407
	Scope 1	CO2e tonnes (thousands)	2,233	2,140	2,158	2,126
	Scope 2 (Market)	CO2e tonnes (thousands)	416	367	380	281

* An independent assurance process was performed by an external expert, which included verification and validation in accorded with ISO 14064-3 standard for greenhouse gas statements.

** ICL expects to further refine its Scope 3 emissions data collection procedures over time and to include data on Scope 3 emissions in future Disclosures.

Energy

(see further details here)

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.
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) that ICL consumes. This year due to maintenance work on the power plant there was an increase in external electricity demands.
Electricity from the new CHP plant is also sold by ICL to Israel’s national grid and external customers. The amount sold in 2022 was 415,190 MWh. In accordance with the GRI methodology, the amount of electricity sold was subtracted from ICL’s total energy figures.

	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.

Air Emissions

(see further details here)

ICL strives to continuously improve its environmental footprint. Reducing air emissions is a central goal of ICL’s environmental strategy. ICL regularly monitors emissions of pollutants to better manage its operations. ICL is taking steps to reduce air emissions by implementing innovative emission prevention solutions and switching to cleaner fuels.

		Units	2020	2021	2022
Air	NOx	tonnes (thousands)	1.5	1.3	1.17
	SOx	tonnes (thousands)	2.5	2.5	2.49
	PM	tonnes (thousands)	0.53	0.47	0.38
	VOC	tonnes (thousands)	0.088	0.086	0.093
	NH3	tonnes (thousands)	0.008	0.011	0.0075

Water & Wastewater

(see further details here)

In 2022, ICL reduced its freshwater withdrawal by 3.3% vs. 2021.
ICL’s 2022 Water Intensity was 6,938 m3/$ million and the water intensity trend was 30% intensity reduction vs last year.

		2021	2022
Water withdrawal by source	Water withdrawal by quality	All areas	All areas
Surface water (total)		15	13.5
	Freshwater	1.5	1.4
	Other water	13.5	12.1
Groundwater (total)		21	26.2
	Freshwater	1.7	1.8
	Other water	19.3	24.4
Groundwater - fossil water (total)		10.3	9.2
	Freshwater	0	0
	Other water	10.3	9.2
Sea water (total)		5.6	4.1
	Freshwater	0	0
	Other water	5.6	4.1
Third party water (total)		17.1	16.4
	Freshwater	17	16.4
	Other water	0.1	0.1
Total		69	69.5
	Freshwater	20.2	19.6
	Other water	48.8	49.9

*Note: In 2021, we completed the acquisition of two companies in Brazil. As this is a relatively new acquisition, the environmental data (GHG emission, energy consumption, etc.) published in regards to 2021 does not include data from these sites. In the current (2022) report, the 2022 environmental data from these production sites is fully included.

Waste

(see further details here)

Data quality and analysis: 2022 is the first year in which we included data from several production plants in Brazil that ICL acquired in 2021. In addition, we are analyzing our waste streams in high resolution for the purpose of calculating it as part of our Scope 3 GHG emissions.
There was a decrease of 2.4% in our hazardous waste output.

Waste and Hazardous Waste by Treatment Method (off-site)


HAZARDOUS WASTE		2021 - thousand tonnes	%	2022 - thousand tonnes	%
Recovery	Recycling/reuse	5.6	19%	4.8	17%
	Incineration (with energy recovery)			1.8	6%
Disposal	Landfill	12.1	41%	18.4	64%
	Incineration (without energy recovery)	11.8	40%	3.8	13%
	Total	29.5		28.8
NON-HAZARDOUS WASTE
Recovery	Recycling/reuse (including energy recovery)			35.61	57%

Disposal	Landfill (including incineration)			27.6	44%
	Total	61**		63.2*

*The 2022 figures include new facilities acquired in Brazil, which were not included in 2021. On a same site basis, non-hazardous waste has slightly reduced year over year.

**The 2021 non-hazardous waste figures were updated following a data refinement process and adoption of international standards in preparation for Scope 3 disclosure.

Social

Diversity

(see further details here)

To ensure its goal of promoting gender equality, ICL is implementing and monitoring the following diversity KPI’s, and has set the following quantitative diversity goals, to be reached by 2024. These KPIs show improvement since 2019, indicating that ICL’s efforts to promote gender equality are providing beneficial results.

	End of 2022	2024 Target
Women in Senior Management	23%	25%
Women in ICL Board of Directors	33%	25%

We are continuously tracking both lagging and leading indicators. In 2022, we added multiple indicators as they are defined by the SASB methodology.

EHS

(see further details here)

EHS

	Units	2020	2021	2022
RTO	#	94	94	89
IR Rate - Direct Employees*	#	0.92	0.77	0.62
SI Rate - Direct Employees	#	27.26	26.38	17.73
Accidents - Direct Employees	#	39	78	69
Accidents - Contractor Employees	#	16	46	51
Fatalities - Direct Employees	#	0	0	1
Fatalities - Contractor Employees	#	2	0	0
Transportation Incidents**	#	0	0	1

*The IR figures for 2020 and 2021 have been updated compared to the 2021 ESG report due to an implementation of a new IT system that consolidated all safety related data, resulting in a more accurate representation. At ICL, the safety and well-being of our employees are of paramount importance to us. We strive for a culture of zero incidents, where every individual feels secure and protected in their work environment. We prioritize implementing stringent measures to ensure their safety and consistently endeavor to enhance our safety protocols. Regrettably, in February 2022, we experienced a fatality of one of our employees in an accident at our YPH Joint Venture site in China. Following a thorough investigation, the authorities concluded that the incident did not warrant charges against our company, and no sanctions were imposed. This was the first fatality involving an employee we experienced in the past five years. Despite our ongoing efforts, we were deeply saddened to face another fatal incident at our Green-Leaf award winning ICL Iberia site in Spain in March 2023. We are fully cooperating and maintaining transparent communication with both the local authorities and our internal investigation team. This collaborative approach ensures a comprehensive examination of the incident and allows us to identify any potential areas for improvement within our safety management systems. We remain committed to learning from these unfortunate incidents and taking all necessary measures to prevent such tragedies in the future. The safety and well-being of our employees will always remain our top priority.

** Transport incidents are those that occurred during the transport of materials to or from ICL sites, as defined by SASB RT-CH-540a.2

SASB Indicators

	2022
Total recordable incident rate - Direct Employees (TRIR)	1.19
Total recordable incident rate - contract Employees (TRIR)	1.82
Fatality rate - Direct Employees	0.009
Fatality rate - Contract Employees	0
Process Safety Incidents Count (PSIC)	18
Process Safety Total Incident Rate (PSTIR)	0.16
Process Safety Incident Severity Rate (PSISR)	0.94

ICL focuses on proactive leading indicators in order to create a strong safety culture and prevent EHS related events from occurring. Several crisis and emergency drills are performed annually in each site to ensure personnel preparedness. EHS external audits and other assessments are performed in accordance with EU Seveso Directive, OSHA PSM regulation, UK HSE control of major accidents and other leading frameworks, in all ICL operations, including contractors.

	2021 Actual vs. Planned	2022 Actual vs. Planned
PSM Risk Assessment	226 vs. 198	438 vs. 280
EHS Audits	392 vs. 375	465 vs. 325
Job Safety Analysis (JSA)	930 VS. 667	1519 VS. 900
Emergency drills	636 vs. 267	526 vs. 228
Crisis Management Team drills	66 vs. 55	62 vs. 52
Proactive Learning	1855 vs. 1046	3043 vs. 763
Engineering & Technological Defenses	346 vs. 224	885 vs. 318
Valid Permits & License	99% vs. 99%	99% vs. 99%
Hazard Recognition Indicator (HRI)	3.26 VS. 2.87	0.52 VS. 0.48
Near Miss Reports	2819 vs. 1335	2619 vs. 1080
EHS Training programs	95% vs. 95%	97% vs. 95%

ICL endorses and follows a variety of initiatives and quality management systems to improve and streamline processes and performance, as well as to reduce risks. The great majority of ICL’s production facilities are certified with ISO standards or with equivalent standards for environmental management, safety and quality. All major energy consuming sites are certified with the energy ISO standard. Food and pharma production sites are certified with GMP/Q7 or other designated standards for the food and pharma industries.

		2020	2021	2022
ISO 14001 or an equivalent standard for environmental management	% of production sites certified	93%	84%	81%
OHSAS 18001/ISO45001 or an equivalent standard for safety	% of production sites certified	91%	81%	81%
ISO 9001 or an equivalent standard for quality	% of production sites certified	94%	94%	92%
Energy management- ISO 50001	% of production sites certified	90%	90%	76%

Community Engagement

(see further details here)

ICL’s monetary donations in 2022 amounted to approximately $14.5 million (including the amount invested in the Visitor Center). In addition, during 2022, ICL contributed, at the Company’s expense, about 24,500 hours of volunteer work for its employees. This amount does not include 35,520 hours of volunteer work after working hours, which was encouraged, organized, and logistically facilitated by ICL.

Governance

(see further details here)

The Company has adopted an outline for institutionalizing and improving the structure and composition of its Board of Directors. This effort reflects the Company’s ambition to maintain a diverse board of directors, represented in diverse backgrounds, expanding skill sets and experience. This ambition is encompassed by a wide range of skills, special expertise and high-level managerial experience in global complex organization; strategy setting; working with emerging markets; experience in corporate governance, risk management, regulation, environment and gender diversity.
IA refers to Ethical standards aspects in audits conducted annually at ICL sites and as part of dedicated reviews of processes, such as Sales & Marketing, Procurement, Contractors, and once every 3 years conducts a dedicated audit on different Ethical standards (e.g. Code of Ethics, Anti Bribery and Corruption, Anti-Harassment & Discrimination, etc.).

Board & Governance Information

Performance	2022*	As of Today
Total number of directors	12	11
Number of non-executive Directors on Board	11	10
Number of independent Directors (NYSE Rules)	7	7
Number of independent Directors (Israeli Law)	5	5
Separate Chair & CEO	Yes	Yes
Annual Board Evaluation Process	Yes	Yes
Annual Election of Directors	Yes**	Yes**
Average Age of Directors	59	57
Average Directors Tenure	6***	6***
Women Board Board Members	33%	36%

* The definition of “external directors” is pursuant to Israel’s Companies Law, 5759-1999 (the “Companies Law”).

** Seven directors are independent directors under the rules applicable to U.S companies listed on the NYSE. Five are independent according to Israeli regulations.

For more details on ICL’s Board see ICL’s 2022 Annual Report and Articles of Association.

12.6

Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability into their reporting cycle.

Sustainability Reporting Disclosures:

Disclosure: SASB: RT-CH-120a.1

Disclosure: GRI: 305-1

Disclosure: GRI: 305-7

ESG Metrics

Economic Performance

Environmental Performance

Greenhouse Gas Emissions

Energy

Air Emissions

Water & Wastewater

Waste

Waste and Hazardous Waste by Treatment Method (off-site)

Social

Diversity

EHS

EHS

SASB Indicators

Community Engagement

Governance

Board & Governance Information

{{{title}}}

Search report by SDG Goals:

{{{title}}}