ICL, a global leader in specialty minerals, delivers innovative solutions across sectors like sustainable agriculture, AgTech, energy storage, industrial products, flame retardants, and health and personal care. With sustainability and ethical governance at the heart of its operations, ICL is driving progress in food security, environmental protection, and social responsibility worldwide.
ICL’s 2023 Corporate Responsibility ESG Report highlights significant milestones, showcasing its achievements in these critical areas and the public recognition it has received for its role in building a sustainable future. The report offers valuable insights for anyone interested in ICL’s ESG efforts and forward-looking strategies for 2024 and beyond.
The Key Components of ICL’s ESG Strategy
ESG (Environmental, Social, Governance) is an increasingly important concept in today’s business ecosystem. It is one of the metrics by which companies are assessed by their stakeholders, when doing business, bidding for contracts, applying for funding, negotiating mergers and acquisitions, recruiting talented employees, and managing public relations.
The 4 Pillars of ESG Featured in ICL’s 2023 Report
- Environmental Progress
- Social Responsibility
- Governance and Ethical Practices
- Food Security Contributions
- Environmental Progress
ICL’s commitment to environmental responsibility is at the core of its ESG initiatives. The 2023 ESG Report highlights substantial efforts toward building a sustainable future, emphasizing the reduction of GHG emissions, innovative resource management, and responsible practices.
ICL already has a long-standing commitment to a 30% reduction of GHG emissions (scope 1 & 2) by 2030 (vs baseline year 2018) and achieving carbon net zero by 2050. In 2023 our Board approved the submission of a declaration to the SBTi (Science-Based Targets Initiative) organization, wherein ICL will commit to establish a near-term, science-based target in accordance with the framework developed by the SBTi.
The company has invested significant efforts in achieving quantifiable improvements in climate action and carbon management, water and waste management and promoting circular economy and energy efficiency.
Key achievements include:
- GHG Emissions: In 2023, ICL achieved a further 4.94% reduction in GHG emissions (scope 1 & 2), bringing the total reduction to 22.2% since 2018.
- Water Management: Advanced initiatives resulted in an 11% decrease in freshwater withdrawal and a 4.25% reduction in alternative water usage compared to 2022, leading to a total water withdrawal reduction of over 6%.
- Waste Management: Comprehensive waste management strategies focus on minimizing waste generation and maximizing recycling efforts. Hazardous waste reduction was over 17%, along with a reduction of approximately 5% in non-hazardous waste directed to disposal.
- Renewable Energy: ICL transitioned several major sites in Israel to renewable energy by entering two long-term (15-year) green power purchase agreements (PPAs), starting in January 2024. These agreements are expected to reduce over 1.25 million tonnes of CO2e, with an estimated annual consumption of 180 million kWh from renewable sources.
Through these initiatives, ICL demonstrates a holistic approach to environmental sustainability, integrating responsible practices into every facet of operations and paving the way for a greener, more sustainable future.
- Social Responsibility
ICL is committed to making a positive impact on the communities where it operates through targeted social investment, employee engagement, diversity, and community partnerships. The company focuses on fostering long-term community relationships, supporting local needs, and creating mutual value.
Key Initiatives in 2023:
Employer of Choice (EOC): With 85% participation in 2023, ICL maintained an employee engagement index of 78%, outperforming industry benchmarks.
Voluntarism ICL actively encourages employees to make a positive impact in their local communities through volunteering. In 2023, employees contributed over 75,000 hours of volunteering.
Community Investment: ICL’s social investment strategy is based on allocating 1% of expected annual earnings to community initiatives. In 2023, this totaled $8.1 million, which included supporting communities impacted by the Gaza conflict.
Diversity and inclusion: ICL efforts include a goal to have women hold 25% of senior management roles by the end of 2024, and 32% by 2028. Additionally, the company aims to have women represent 45% of its Board of Directors by 2028.
By fostering community partnerships and promoting diversity, ICL is ensuring long-term positive social outcomes that align with its ESG goals.
- Governance and Ethical Practices
At ICL, governance is the bedrock of the company’s commitment to integrity and accountability. The organization practices stringent regulatory compliance, transparency, and promotes ethical decision-making throughout its operations. By fostering a culture of responsibility, ICL ensures sustainable growth and maintains the trust of its stakeholders.
At the core of this commitment is ICL’s Code of Conduct, which serves as the north star for our employees and business partners to navigate through daily ethical dilemmas towards a better future. The Code is embedded into business processes, including agreements with suppliers and contractors, and aligns with the UN Sustainable Development Goals (SDGs), which were embedded in the Code and stand as our guiding principles. It covers key areas such as anti-bribery, human rights, environmental protection, and data privacy.
“Good corporate governance is about embedding integrity and trust into every layer of our company. It’s about instilling a culture of strong compliance and ethical conduct, or as we like to call it – doing the right thing, in the right way, every day. This foundation ensures we navigate complexities and challenges with transparency and accountability, driving our business’s success.”
— Aya Landman, VP, ICL Chief Compliance Officer
- ICL’s Vital Contribution to Global Food Security
ICL is at the forefront of the global effort to combat world hunger and is making a substantial impact on food security. The Company is well positioned to contribute to the achievement of the 2nd SDG, Zero Hunger, as one of the world’s most innovative fertilizer producers.
ICL’s innovative crop nutritional solutions and phosphate-based solutions play a significant role in enhancing global food security, with its products directly contributing to feeding approximately 400 million people daily.
Key achievements in 2023 include:
Agricultural Output: ICL’s fertilizers support an annual increase in crop yield by 60 million tons, translating into 190 billion meals per year. These products not only boost yield but also improve food quality and shelf life, extending the lifespan of 43 million tons of food annually.
Nutritional Security: ICL’s production of phosphates has enhanced the quality and shelf-life of 43 million tons of food, valued at about 230 billion meals and meeting the caloric needs of 210 million people annually.
Enabling Sustainable Practices in Agriculture
As the world’s food producers urgently seek to adapt to the challenges of global warming and associated extreme weather events, ICL is advancing sustainable agriculture by focusing on precision agriculture, digital ag-tech solutions, and environmentally friendly fertilizers. These efforts help farmers optimize crop performance while reducing environmental impacts.
- AgTech: Agmatix, advances sustainable agriculture with AI-driven technology, transforming agronomic data into actionable insights, to optimize crop nutrition plans, and support regenerative agriculture initiatives, and GROWERS, which is a digital platform connecting farmers, retailers, and manufacturers in the agriculture industry, enhancing market efficiencies and fostering sustainable input purchasing decisions.
- Controlled-Release Fertilizers: ICL’s eqo.x®, a first-of-its-kind biodegradable controlled-release fertilizer, improves Nutrient Use Efficiency (NUE) by up to 80%, allowing farmers to achieve higher or comparable yields with reduced fertilizer rates. eqo.x® aligns with upcoming European regulations and supports sustainable farming.
- Puraloop®: This innovative phosphorus fertilizer, made from recycled sewage sludge ash, exemplifies circular economy principles. Utilizing phosphorus from organic residue streams embraces the circular economy approach by turning a waste product into a valuable resource and in turn offers growers a reliable solution for enhancing crop yield and quality while contributing to a more sustainable agricultural future .
Through these cutting-edge solutions, ICL is helping farmers transition to more sustainable agricultural practices, addressing global challenges like food security and environmental stewardship.
Sustainability Goals and Commitments
ICL is a growth-oriented company that works towards clearly defined strategic goals. It applies the same principles to its sustainability commitments, setting ambitious goals, creating roadmaps, and applying precise metrics to measure progress.
Key goals and targets:
Net Zero Carbon Emissions
ICL is fully committed to achieving net zero carbon emissions by 2050 for both Scope 1 and Scope 2 emissions. The Company has set an ambitious interim goal to reduce greenhouse gas emissions by 30% by 2030, compared to a 2018 baseline.
In 2023 ICL’s Board approved the submission of a declaration to the SBTi (Science-Based Targets initiative) organization, wherein the Company will commit to establish a near-term, science-based decarbonization plan in accordance with the framework developed by the SBTi.
To achieve Net Zero, ICL is focusing resources on the following key areas:
- Energy-efficient technologies and processes: Leveraging advanced technologies to optimize energy efficiency and reduce overall consumption.
- Increasing the use of renewable energy sources: Expanding renewable energy use through long-term power purchase agreements and photovoltaic (PV) installations at various operational sites.
- Waste-heat recovery systems: Increasing the use of waste-heat and energy related byproducts in our production processes.
- Enhanced process optimization: Exploring new materials with lower global warming potential and technologies to reduce process emissions.
Renewable Energy
ICL is determined to increasing the share of renewable energy consumption to 50% by 2040 (vs. 2018).
ICL operates in several locations that are favorable for renewable energy generation. One of its flagship endeavors, the “Green Sdom project ”, marks a significant step towards transforming ICL Dead Sea, ICL’s largest industrial site located in Sdom, Israel, into a hub for renewable energy, as part of ICL decarbonation plan.
Water Management
ICL is working to improve its existing water conservation efforts and optimize water use in its operations. There is a multi-faceted approach that involves both process optimization and recycling. The current target is to achieve an average annual reduction of 4% in freshwater use and a 2% reduction in low-quality water use (from a 2022 baseline).
Continuously enhancing our water management performance, ICL has established Company-wide goals aimed at water reduction and related targets.
Key goals include:
- Increasing water efficiency, sourcing water responsibly and continuously improving our water conservation practices.
- Reducing, recovering, recycling, and reusing water and increasing the use of alternative water sources.
- Enhancing the efficient use of natural resources and implementing the concept of circular economy while carrying out core operational activities.
Conclusion
ICL continues to lead the way in sustainable practices, driven by its commitment to environmental, social, and governance (ESG) goals. From reducing GHG emissions to supporting global food security with innovative solutions , ICL is setting new standards in sustainability.
The company’s goals and efforts to achieve net-zero emissions by 2050, and it’s sustainable solutions demonstrate its holistic approach to addressing global challenges. Through its focus on innovation, transparency, and ethical governance, ICL is well-positioned to shape a more sustainable future.
Looking ahead, ICL remains dedicated to advancing innovation and sustainability across its operations, addressing global challenges through impactful solutions. By collaborating with stakeholders, ICL is shaping a future that fosters resilience, empowers communities, and drives responsible growth for a more sustainable world.
