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:
| Phase 1 - Identification | Phase 2 - Proprotozation | Phase 3 - Validation |
|---|
- Internal and external documentation, analysis, studies and benchmarking
- List of relevant topics to be considered
- Matrix of material issues by priority
- List of material issues to be included in the report
1. Identification
| 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, CR, 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
The topics compiled in the previous stage were evaluated to determine which were material to ICL, through both qualitative and quantitative analysis as well as discussions on whether, and to what degree, they reflect a significant economic, environmental and social impact on ICL or substantively influence the assessments and decisions of ICL’s stakeholders.
The issues were then classified in a matrix with the material topics for ICL on an X-axis and the material topics for ICL’s stakeholders, on a Y-axis.
The material topics with high importance for ICL ( X-axis) were prioritized through a broad consultative process that weighed the compiled data.
A new group was included in the material issues identification process, for the 2018 report – sales and marketing teams. They serve as contact to ICL’s clients and have a unique view on issues and trends taking place in the relevant industries.
An update was done to the feedback received from 50 Senior Management (T100) members, representing the Company’s various business units, geographies and perspectives.
Following these inputs, the ICL Sustainability Team assigned additional weight to key information from the Company’s agenda during the reporting period. This information included issues that were addressed extensively by the Board of Directors or the Company’s executives; policies, policy documents and procedures that were instituted or amended, significant investments that were made or involvement by the Company in a particular issue.
The material issues of high importance to ICL’s stakeholders (represented on the Y-Axis) were compiled from stakeholders’ requests for information, published materials and other forms of correspondence and engagement. In addition, topics that were emphasized by Community Advisory Panels (CAPs), think tanks, industry-specific multiple stakeholder processes and CSR organizations, were also prioritized and given additional weight in the analysis.
Finally, a thorough review was conducted by the Sustainability Team, in consultation with relevant corporate departments.
Materiality analysis
There is a consensus, from both ICL external stakeholder and ICL internal stakeholders, on a number of high impact issues. Issues regarding environmental impact, such as effluent, waste, hazardous materials, mining and remediation, climate change and air quality management. There is also consensus on some social and governance aspects, such as labor practices, compliance and business ethics.
There is also consensus on multiple issues that both ICL and its external stakeholders map as important, but of a lesser impact.
There are two issues that ICL’s external stakeholders regard in 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.
Two main themes were given higher importance within the organization, this year compared to last year. The first, is the holistic approach to human resources. This is a high priority for ICL. Paths for advancement and continuous learning within the organization have been broadened. And for the first time, multiple quantitative targets have been set, regarding diversity in employment. The second theme, is of supply chain. Until recently, ICL has been advancing and reporting about its own operations. Now, ICL is becoming more involved in the transparency and practices of its supply chain, participating in initiatives such as the TfS (Together of Sustainability). 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 Ashalim incident and issues regarding mining in Spain. This report also expands on ICL’s efforts regarding circular economy.
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.
