Material Topics
The scope of this report covers ICL’s efforts in relation to the material topics identified in our most recent analysis. It is based on the guidance laid out by the Global Reporting Initiative (GRI).
The Process
Material topics were identified using a three-phase process:
1. Identification
ICL conducts an annual review of its external and internal stakeholders and the issues that have become the focus of their interest. ICL reviews the different ways in which it’s activity impacts these topics.
| Perspective | Sources |
|---|---|
| Relevance for the company | Notifications to investors and regulatory bodies |
| ICL policy documents, including its corporate strategy, code of ethics, social license to operate analysis and enterprise risk management | |
| Commissioned questionnaires completed by ICL's executives and sales and marketing teams, ICL’s Sustainability Team expert review | |
| Relevance for Stakeholders | Publicly available policy documents, position papers and other information from key stakeholders |
| Regular direct engagement with stakeholders (e.g. Community Advisory Panels and meetings and correspondence) | |
| Compilation of relevant correspondence by specific business units (e.g. Investor Relations, corporate relations, Sustainability Team, etc.) | |
| Emerging issues for the chemical & mining sectors | Material issues from relevant organizations and reporting bodies (e.g. IFA, ICMM, GRI, CDP, SASB and local organizations such as Maala) |
| Benchmarking of best practices by world-class peers | |
| Local and national economic, social and environmental context | Analysis of media and social networks |
2. Prioritization
To determine which topics compiled in the previous stage were material to ICL and each group of stakeholders, both qualitative and quantitative analyses were conducted. Each topic was examined as to the degree of importance it holds for each specific stakeholder and its economic, environmental and social significance and impact on ICL. The degree of importance was graded as high, medium, low or irrelevant following this assessment and the weighted average for each stakeholder group was created from the grades of all the data sources reflecting the group.
The chart represents the material topics, arranged in a matrix, where the material topics for ICL are on the X-axis and the material topics for ICL’s external stakeholders are on the Y-axis.
The material topics for ICL were prioritized using various sources of data including surveys with executives, various ESG-related policies, procedures and strategic documents and a broad consultative process.
The ICL Sustainability Team assigned additional weight to key information from ICL’s internal agenda during the reporting period, taking into account events such as investments made or involvement in a particular issue. This information also included issues that were addressed extensively by the Board of Directors or the Company’s executives.
The material issues to ICL’s stakeholders (represented on the Y-Axis) were primarily compiled from stakeholders’ correspondence and requests for information, stakeholder published materials and other forms of engagement. In addition, topics that were emphasized by Community Advisory Panels (CAPs), think tanks, industry-specific multiple stakeholder processes and CSR organizations, were also evaluated and given additional weight as part of this process.
The top three topics for each group of stakeholders, are listed below:
| Global ESG Methodologies | Local Stakeholder | Investors |
|---|---|---|
| Business Ethics | Effluents, Waste & Hazardous Material Management | Economic Performance |
| Climate Strategy & GHG Emissions | Compliance | Safety & Environmental Stewardship of Chemicals |
| Employment & Labor Practices | *Climate Strategy & GHG Emission/Water Management/ Mining remediation & reclamation | *Occupational Health & Safety/Effluents, Waste & Haz. Material Management/ Biodiversity & Nature Conservation/ Climate Strategy & GHG Emissions |
*These topics received similar values regarding their importance.
Once the results were compiled, a thorough review of the findings was conducted by the Sustainability Team, in consultation with relevant corporate departments.
3. Validation
The matrix of material topics which resulted from the prioritization phase was discussed and examined by the team in accordance with the GRI Completeness and Stakeholder Inclusiveness principles.
Materiality Matrix 2019
Material Issues 2019
The current assessment confirmed the previous materiality analysis, but also highlighted the growing importance of environmental issues to ICL’s business and stakeholders.
This heightened awareness is across the board, with all environmental issues getting increased scrutiny from investors, clients and others in the business community as well as NGOs. We saw increased interest in topics such as effluents, waste and hazardous materials management, mining and remediation, stewardship of chemicals and a special interest in climate change and GHG emissions. These results go hand in hand with ICL’s path of decreasing its GHG emission, the recent start of renewable energy increased usage, continuous innovation of low carbon products and renewable energy storage products, as well as our investments in circular economy initiatives.
There is a continued consensus, from both ICL external stakeholders and ICL on these high impact environmental issues. There is also a consensus on social and governance aspects, such as labor practices, compliance and business ethics.
There are two issues that ICL’s external stakeholders regard as an even higher priority than the company. These are, water management and biodiversity and nature conservation. As ICL sees the importance of these issues grow for its stakeholders, it will look ahead on various steps it can take in the future, regarding its performance and reporting.
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.
On top of Environment as a main issue, a few additional main themes were given higher priority within the organization, this year compared to last year. The first is Social, the holistic approach to human resources. This continues to be a high priority for ICL. Paths for advancement and continuous learning within the organization have been broadened. Also, for the first time, multiple quantitative targets have been set, regarding diversity in employment. Including involvement in the community via a Global Volunteering Event.
As mentioned above, issues concerning Governance were also a main issue. ICL has published an anti-harassment and discrimination policy. Intensive work has been with regard to human rights and ICL is working to release its human rights policy in 2020.
In addition, ICL is becoming more involved in the transparency and practices of its supply chain, participating in initiatives such as the TfS (Together of Sustainability) which conducts supplier sustainability assessments and audits, encouraging awareness and improvement in their ESG practices. Quantitative goals and targets have been set in this area as well.
This year’s report also updates and elaborates on specific subjects that are considered material for ICL’s stakeholders, such as Dead Sea water level, the rehabilitation and recent re-opening of the Ashalim creek following the 2017 incident, and issues regarding mining in Spain. This report also expands on ICL’s continued efforts regarding circular economy. Significant 2019 environmental incidents are reported in this page.
