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GHG & Climate Change

GHG & Climate Change

ICL takes extensive actions to reduce its Greenhouse Gas (GHG) emissions. The main initiatives include reducing GHG emissions from chemical processes, transitioning to natural gas as a primary fuel source, pursuing a multi-year energy efficiency plan, increasing renewable energy usage and the future elimination of Oil Shale combustion. These initiatives have so far created a 24% reduction in the company's global GHG emissions compared with the 2008 base year. Climate change could also significantly impact agriculture, one of ICL’s main markets. \

As part of ICL’s sustainability vision for 2030, ICL has ambitious targets for climate action. These include achieving a 45% reduction in the company's overall Scope 1+2+3 emissions by 2030 (using 2008 as its base year), and a 3% YOY (year-on-year) reduction from 2019 and onwards.

Climate change, or global warming, refers to the rise in average surface temperatures on Earth. Climate change results primarily from the use of fossil fuels, which releases carbon dioxide and other greenhouse gases into the air. These trap heat within the atmosphere, which can have a range of effects on ecosystems, including rising sea levels, severe weather events, droughts and others.

By 2019, ICL’s Global GHG emissions have been reduced by 24% compared with 2008 base year emissions. This constitutes 53% of our planned decrease by 2030.

The company has taken various measures to continue reducing its GHG emissions. The main steps already taken and/or planned for the upcoming years include: 

  • Eliminating or reducing process GHG emissions: ICL’s replacement of SF6, previously used as a protective gas during magnesium production, with HFC134a, caused a major reduction at ICL Dead Sea Magnesium. The company has also implemented an innovative system which has reduced N2O emissions at ICL Haifa (F&C) by 60% per ton nitric acid produced. Both projects were approved by the U.N. CDM mechanism.
  • Converting our production plants in Israel to the use of natural gas: Natural gas (NG) offers many environmental benefits, including lower emission of greenhouse gases per unit of energy produced.
  • Increasing energy efficiency: ICL is phasing out inefficient production technologies, streamlining our production facilities, increasing the efficiency of our consumption of heat and steam, using residual heat and reducing our consumption of lighting and air conditioning.
  • Renewable Energy Usage: As part of ICL’s sustainability vision for 2030, the company has set the goal of annually increasing its total renewable consumption by 20% (year-on-year) from 2019 and onwards, increasingly replacing fossil-fuel based energy. ICL has therefore transitioned most of its sites in Europe to 100% renewable electricity in 2018-19. Furthermore, in the upcoming years, the company plans to install photovoltaic (solar energy) electricity production capacity in available and appropriate areas within the operational boundaries of its sites in Israel, Spain, Germany and additional countries. 
  • The future elimination of Oil Shale combustion: For several decades, ICL Rotem (Israel) has been operating PMA, a CHP (combined heat and power) installation, which is fueled by Oil Shales, extracted as part of Rotem’s open-pit Phosphate mining activity. The usage of Oil Shales was originally encouraged by the Israeli government, as a then alternative fuel source to oil. However, since that time- large  NG reserves were found in Israel’s maritime territory, and Oil Shales is now considered an unfavorable fuel source, due to the relatively high amounts of air and GHG emissions it creates upon combustion. ICL Rotem has recently completed a plan to shut down the PMA Oil Shale installation by the end of 2021. The needed electricity and steam will be produced from newer NG based installations, creating a significant reduction in GHGs and other emissions.     

Note: In the chart below, 2008 appears as the base year used by ICL to measure our long-term performance (in addition to short-term, year by year performance).

Following are the yearly trends in total GHG emissions by scope (all converted into CO2e terms). ICL’s comprehensive GHG inventory analysis is based on the GHG Protocol methodology. The measured emissions include the following GHG’s: CO2 , CH4, N2O and HFCs/HCFCs. In 2008 emissions specifically, SF6 is also included, but its usage has since been stopped by ICL (see above), and from 2010 and onwards- there are zero emissions of SF6 in all ICL global operations. In all years, ICL has zero consumption/emission of PFCs and NF3.

Global GHG emissions (scope 1+2+3)

2019 GHG emissions by regions

GlobalIsraelOutside Israel
Total GHG Emissions3,194,3092,198,489995,819
Scope 1 (tonne CO2e)2,496,3151,948,350547,965
Scope 2 (tonne CO2e- market based)612,199169,553442,646
Scope 3 (tonne CO2e)85,79480,5865,208
Total GHG emissions have been reduced by 24% compared with the 2008 base year emissions. This constitutes 53% of the planned global ICL decrease until 2020. Most of this reduction was in Scope 1 and 2 emissions. The total emissions were reduced by 4% in 2019 compared to 2018, surpassing the annual target of 3% YOY (year-on-year) reduction. The reduction in 2019 mostly resulted from a decrease in Scope 2 in ICL Europe sites. Some of this decrease was the result of the company’s initiative to purchase 100% renewable electricity (from the start of 2019) for several ICL sites in the Netherlands and Germany (more details here). Even in cases where ICL still did not purchase 100% renewable electricity in 2019- most suppliers to ICL Europe sites have been reducing the emission intensity of their electricity consumption, resulting in lower emission factors and lower indirect emissions.   A main emission trend between 2017-19 is related to the new Sdom power CHP (Combined Heat and Power) plant. This highly efficient plant has been supplying almost all the electricity consumption for the ICL Israel sites since August 2018.  2019 was the first full year of operation of the new plant. The new plant’s electricity is much lower in carbon intensity compared with the previously used external electricity, allowing for significantly decreased Scope 2 emissions. However, the Scope 1 emissions now include more losses from the increased natural gas combustion in the new plant (some losses always exist, despite the highly efficient process). Also, a significant amount of electricity from the new plant is also sold by ICL to the Israeli national grid and external customers (an overall of 540K MWh in 2019, approx. 30% of the plant’s produced electricity). Overall, the total GHG emissions in ICL Israel specifically have increased by 4% (~80k tonnes CO2e) in 2019 (full operation of new power plant) compared with 2017 (pre-new power plant). However, the electricity produced by ICL to external customers replaces the generation of more carbon-intensive electricity by less efficient power plants. Based on publicly available emission factors for other power products in Israel, the company estimates saving of ~190k tonnes CO2e of avoided emissions for the external customers. Therefore, in a broader perspective, the new power plant allows for a reduction of the overall climate impact of the state of Israel (in addition to other environmental benefits).
13.1
Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
Previously, from 2015 to 2016, ICL’s total GHG emissions increased by 20%. The great majority of this increase is attributed to the 2016 addition of ICL China YPH JV (acquired in late 2015) to the ICL GHG inventory. Most GHG emissions at YPH JV are generated from its large phosphate and fertilizers plant, 3C, and are attributed to external electricity consumption, process CO2 emissions from phosphate rock acidulation and coal combustion. Another reason for the 2016 increase was the conclusion of a strike in 2015 and a return to regular production levels at ICL Dead Sea and Neot Hovav.

ICL received an “A-”score for its 2019 CDP Carbon report, the best score among all Israeli-based companies and tied for best among global fertilizer producers. This achievement recognizes ICL's advanced climate change management practices and successful endeavors to reduce GHG emissions.

ICL expects its total GHG emissions to decrease in 2020, due to further advancement in the transition of ICL Europe sites to renewable electricity, and due to the decrease in activity in some ICL sites due to the COVID-19 crisis.

Cooperated climate action: striving for a 90% CO2 reduction in the Zeeland province

Several large industrial companies, including ICL Terneuzen, located in Zeeland province in the southwestern Netherlands, have created an ambitious climate plan. The industrial companies, including some of the largest energy consumers in the province, plan to reduce their CO2 emissions by 85% to 90% by 2050, in line with the Paris climate agreement. The Zeeland companies participating in the climate plan include ICL the Netherlands Terneuzen, Yara (located in Sluiskil), Zeeland Refinery (located in Nieuwdorp), Trinseo, Dow Benelux, and Cargill (located in Sas van Gent). Their climate plan was developed together with companies from West Brabant and Flanders and calls for using each others residual heat and waste materials. The companies have drawn up a roadmap with measures needed to achieve this objective. The plan includes storage and recycling of CO2 as well as the use of hydrogen.

12.6
Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
Sustainability Reporting Disclosures:
Disclosure: 103-2
Disclosure: 305-1
Disclosure: 305-2
Disclosure: 305-3
Disclosure: 305-5
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