Sustainable Procurement
ICL aims to improve sustainability along its entire value chain. The company has made substantial progress in its long-term efforts to manage its operations responsibly and decrease its environmental impact. This endeavor includes, among others things, a commitment to top tier environmental performance and complete product responsibility. ICL also aims to be an employer of choice, and verify that its contract workers are treated fairly.
An essential element in ICL’s organizational culture is to strictly adhere to principles of sustainability. ICL’s core commitment-to provide certain essential needs to humanity,is well aligned with a number of the UN’s Sustainable Development Goals. ICL is also deeply committed to identifying technologies, products and processes that ensure that, as a society, we do not exceed environmental boundaries while recognizing that this is an especially formidable challenge in the chemicals and mining industries in which ICL operates.
As part of this long-term commitment, ICL also strives to positively impact its clients and suppliers. ICL’s programs support best practices for its clients, both in the agricultural sector (balanced fertilization) and the industrial sector (such as VECAP and SAFR).
ICL 2019 Vendor of the Year Award
In recognition of the strategic importance of ICL’s vendors around the world, ICL held its first ‘Vendor of the Year’ competition. Vendors were graded based on their promotion of ICL values: leveraging technology and industrial know-how to meet the needs of our customers; adopting best practices for corporate governance; top tier safety performance and environmental responsibility; and employer of choice. The winning vendor was announced during the first quarter of 2020, and was awarded $20K to be donated to a charitable activity selected by the vendor.
In 2020, ICL published its Sustainable Procurement Policy and Supplier Code of Conduct.
ICL Group Sustainable Procurement Policy
At ICL, we believe that sustainability is a shared responsibility. This means that we work closely together with our stakeholders to meet our sustainability goals. We have embedded sustainability in all our activities, including procurement, and it plays a key role in establishing a clear and transparent link with our entire supply chain. Improving our sustainable procurement performance is an ongoing process which involves all our suppliers. We are committed to establishing partnerships with them to enable both ICL and our suppliers to meet our business goals in a socially and environmentally responsible manner.
Sustainable Procurement Goals
- Minimize environmental impact by optimizing the use of natural resources and effectively manage waste in the supply chain.
- Optimize the delivery and usage of products and services in our production processes.
- Manage risk and improve internal and external standards through performance assessments across the supply chain.
- Promote and enable innovation across our supply chains.
- Drive adoption of sustainable practices across the supply chain by establishing partnership with our suppliers, with the joint goal of continuously improving performance over time.
- Strive to include sustainability practices, performance and transparency as part of ICL’s supplier selection process, encouraging active sustainability partners among our suppliers.
Supplier Code of Conduct
ICL’s Supplier Code of Conduct mirrors the expectations that ICL has of its suppliers to cooperate with it and support it in building a sustainable supply chain. The Code of Conduct includes commitments from suppliers regarding: environmental protection, health, safety and security; responsible employment and human rights; and business ethics. The Code of Conduct was first published in 2020, and ICL’s GPO (Global Procurement Organization) is currently implementing it with both existing suppliers and future new agreements.
ICL and the TFS initiative
In 2018, ICL joined the Together for Sustainability (TfS) initiative, an international non-profit association promoting sustainable procurement by the global chemical industry. ICL is one of 26 large chemical companies who are members of the TfS initiative. ICL and the other member companies engage their suppliers and encourage them to improve their practices on issues such as environment, safety, fair employment, business ethics and others. With thousands of suppliers assessed and audited through this initiative, and many of them showing improvement over time, TfS member companies, including ICL, are leading the way for sustainable performance practices within chemical industry supply chains and effectively promoting a better world. Read More on ICL’s involvement in the TfS, including KPIs and goals, here.
As part of the Sustainable Procurement Process, ICL approached over 600 suppliers in 2019, requesting that they complete a CSR assessment or a sustainability audit.
ICL has introduced and invited vendors to its annual vendor event to participate in the TfS initiative.
We can only bring sustainability to a higher level if we work together. This is why we would like to invite our suppliers to take an active part in sustainability activities by participating in the EcoVadis assessment or the TfS audits.”
Heinrich Berger, VP Global Raw Material Procurement
Over the past several years, ICL has matured in the area of sustainability. This has been reflected by several tangible improvements as well as by recognition from outside parties. ICL’s Global Procurement Organization (GPO) received the EIPM-Peter Kraljic award 2018 for “Value Contribution Through Sustainability & Business Intelligence”.
Furthermore, in 2019, ICL successfully converted to the use of 100% renewable Energy at most of its European sites. As a result, it reduced CO2 emissions in 2019 by 24,000 tonnes and it expects them by 75,000 tonnes in 2020.
A Sustainable Procurement Program developed in 2019 has also already been recognized with the internal ICL Leadership Award 2020 for Procurement and EHS Excellence in Jan 2020.
