The current assessment confirmed the previous materiality analysis, but also highlighted the growing importance of environmental issues to ICL’s business and stakeholders. Environmental matters received more attention from ICL’s value chain over the past year. This is especially true in regard to climate change and water management. We are also seeing an increase in interest regarding ICL’s activities in regard to biodiversity. A main theme that is of great importance for both the Company and its stakeholders is the Company’s ability to support Zero Hunger (SDG2). ICL feeds over 158 million* people daily, equivalent to 115 trillion calories annually.
This heightened awareness is across the board, with all environmental issues receiving increased scrutiny from investors, customers, and others in the business community, as well as NGOs. The Company is seeing increased interest in topics such as effluents, waste and hazardous material management, mining and remediation, biodiversity, and stewardship of chemicals, as well as a special interest in climate change and GHG emissions and water management. To enable ICL’s customers to be better informed on the impact of its products, the Company calculated the carbon footprint of its main products. This heightened interest goes hand in hand with ICL’s path of decarbonization. The Company has set a goal for itself to reduce its GHG emissions by more than 30% by 2030 and has committed to becoming net zero by 2050. In addition, in March 2023, it committed to the Science Based Targets initiative (SBTi) on setting an ambitious decarbonization plan. There is a continued consensus from both ICL’s external and internal stakeholders regarding these high-impact environmental issues. There is also consensus regarding social and governance issues, such as labor practices, compliance, and business ethics.
Some issues are regarded by ICL’s external stakeholders as an even higher priority than by the Company. They are water management, biodiversity, and nature conservation. As ICL sees the importance of these issues increase among its stakeholders, it is taking various steps to examine its performance and related reporting. ICL has recently established a goal of reducing its water use.
There are multiple issues that are of high impact for ICL but are less so for its external stakeholders. These are mostly operational and HR related issues.
In addition to environmental issues, several other main themes were given a higher priority within the organization this year. Increasing the diversity of ICL’s employees is a priority, with multiple quantitative targets established regarding diversity in employment. A holistic approach to human resources continues to be a high priority for ICL. Paths for advancement and continuous learning within the organization have also been broadened. As mentioned above, issues concerning governance were also a main issue. In the past few years, ICL published an anti-harassment and discrimination policy, and a human rights policy.
In addition, ICL is involved in the transparency and practices of its supply chain and is participating in initiatives such as TfS (Together for Sustainability), which conducts supplier sustainability assessments and audits to encourage awareness and improvement in the ESG practices of ICL’s suppliers. Quantitative goals and targets have been established in this area as well, and the Company is working with its suppliers to disclose their ESG performance.
This year’s report also updates and elaborates on specific subjects that are considered material for ICL’s stakeholders, such as the water level at the Dead Sea, the Tze’elim feeder canal unexpected flow of brine, the rehabilitation and re-opening of the Ashalim Creek following the 2017 incident and court approval of the settlement agreement regarding all related class actions.
At ICL, we recognize the value of lessons learned in shaping our decisions and actions. We understand the significance of assimilating these insights to ensure we meet the expectations of our stakeholders. While our commitment is to always strive to do the right thing, we acknowledge that mistakes can happen. In such instances, we take responsibility and are obligated to take appropriate corrective measures. By embracing a culture of continuous learning and accountability, we demonstrate our dedication to growth and improvement in all aspects of our operations.
