Energy producers and consumers alike are facing one of the greatest challenges of the 21st century—the urgent need to transition to renewable energy and decarbonize industrial operations. Rising greenhouse gas emissions and increasing energy demand are putting immense pressure on both the environment and global energy infrastructure. The shift to clean energy is no longer optional—it is imperative.
ICL is leading this transformation with a structured decarbonization roadmap aimed at reaching 50% renewable energy consumption by 2040 and achieving Net Zero by 2050. Through a multi-faceted approach that includes Power Purchase Agreements (PPAs), on-site photovoltaic (PV) installations, and large-scale clean energy projects like the Green Sdom initiative, ICL is scaling up renewable energy and demonstrating that industrial decarbonization is both achievable and essential for a sustainable future.
ICL’s Bold Decarbonization and Sustainability Roadmap
ICL understands that reducing greenhouse gas (GHG) emissions and achieving decarbonization requires clear metrics, external validation, and a well-defined strategy. In 2023, the company took a major step by submitting a declaration to the Science-Based Targets initiative (SBTi) to develop a near-term, science-based decarbonization plan.
ICL’s sustainability strategy aligns with the Paris Agreement’s goal of limiting global temperature rise to well below 2°C, with efforts aimed at 1.5°C, reinforcing its commitment to transparency through annual emissions disclosures.
Decarbonizing large-scale industrial operations across multiple global sites is a significant challenge. ICL has assembled expert teams to drive energy efficiency upgrades and share innovations company-wide. The company’s focus is on electrification, transitioning to renewable energy, and implementing circular economy initiatives to reduce waste and raw material dependency.
ICL is already making measurable progress. Between 2018 and 2023, the company reduced Scope 1 & 2 GHG emissions by 22.2%, keeping it on track to achieve its 30% reduction target by 2030. By 2050, a new generation of ICL operations will be fully carbon neutral. While this is an ambitious timeline for transforming complex industrial processes spanning over a dozen countries and 13,000 employees, ICL remains confident that its approach will deliver long-term sustainability without compromising profitability or growth.
Scaling Up Clean Energy & Circular Economy
One of ICL’s flagship decarbonization initiatives is the Green Sdom project in Israel’s Negev Desert. ICL’s largest industrial site, the Dead Sea plant, is being reconfigured to operate on a purpose-built industrial microgrid powered by solar energy.
The project will feature large-scale photovoltaic (PV) installations on local salt flats, ultimately delivering a renewable capacity of ~1,600 MWp. The first phase is scheduled to be operational by 2029 and is projected to reduce the Dead Sea site’s carbon footprint by over 40%.
A key element of ICL’s clean energy strategy is securing long-term Power Purchase Agreements (PPAs). The company has signed an agreement with Doral Energy Ltd. for 75 million kWh of renewable electricity annually, which is expected to reduce over 500,000 tonnes of CO₂ emissions throughout its duration. Inspired by the Green Sdom project, ICL is expanding its solar PV installations across Israel, Europe, and South America.
Beyond clean energy generation, ICL is focused on optimizing energy efficiency to reduce both GHG emissions and operational costs. The company has commissioned a highly efficient Combined Heat and Power (CHP) plant at its Dead Sea facilities, which reduces external electricity demand by leveraging natural gas efficiently.
Sustainable Innovation for a Low-Carbon Future: Advanced Crop Nutrition, Circular Economy, and Battery Materials
ICL, one of the world’s largest fertilizer manufacturers, is committed to reducing the carbon footprint in agriculture through innovative crop nutrition solutions. A key development is eqo.x, a biodegradable controlled-release fertilizer (CRF) that optimizes crop performance and increases nutrient use efficiency (NUE) by up to 80%. This breakthrough technology aligns with the European Farm to Fork Strategy, helping to reduce nutrient loss and enhance precision agriculture.
Emphasizing circular economy principles, ICL has introduced PuraLoop, a high-quality phosphorus fertilizer derived from 100% recycled phosphorus sources, including sewage sludge ash (SSA). This innovation transforms waste into a valuable agricultural input while adhering to strict environmental standards.
Beyond fertilizers, ICL is also driving decarbonization through sustainable mineral solutions and advanced battery materials. The company is investing in next-generation battery materials that support electrification and energy storage, ensuring a sustainable supply chain for the growing global demand.
Financial and Strategic Climate Integration
ICL recognizes the critical role of sustainable finance in driving the transition to a low-carbon economy. To support its decarbonization efforts, ICL secured a $250 million Sustainability-Linked Loan (SLL) in 2021, followed by a $1.55 billion Sustainability-Linked Revolving Credit Facility (RCF) in 2023. Both financial instruments are tied to key performance indicators (KPIs), including absolute reductions in Scope 1 & 2 GHG emissions, and are subject to third-party verification.
Accountability and governance are central to ICL’s climate strategy. The Climate, Sustainability & Community Relations Committee (CSC Committee) provides oversight of decarbonization initiatives, renewable energy projects, and circular economy strategies.
Additionally, ICL’s Enterprise Risk Management (ERM) team integrates climate risks into financial planning, ensuring that decarbonization efforts align with long-term business resilience. These governance structures, along with ICL’s commitment to the Science-Based Targets initiative (SBTi), reinforce its transparent and results-driven approach to emissions reduction.
Conclusion
ICL is leading the charge in industrial decarbonization through sustainable investments in clean energy, climate tech, circular economy solutions, and financial innovation. With a strategic roadmap targeting a 30% reduction in Scope 1 & 2 emissions by 2030 and Net Zero by 2050, the company is actively scaling up projects like the Green Sdom initiative to set new benchmarks in industrial climate action.
Achieving a low-carbon future requires collaboration across industries, policymakers, and innovators. ICL is committed to driving this transition through cutting-edge technology, strategic partnerships, and scalable solutions that support global sustainability efforts. As the energy landscape evolves, ICL will continue to pioneer solutions that enhance efficiency, resilience, and long-term value for a cleaner future.
