Leading with Purpose
(G4-1) In more than 10 years as a public company, Mosaic has made enormous progress: The company has grown in many ways; it has flourished in good markets and bad; and we believe we have the strongest combination of assets, talent, financial strength and global reach in our industry.
Amid this growing legacy of achievement, no element of our progress shines more brightly than our commitment to sustainability. Mosaic is leading, and we are leading with purpose.
Momentum accelerated in 2014, with a series of bold moves that we believe will generate greater potential for the decades ahead. We committed billions of dollars to acquisitions, production capacity expansions, returns to shareholders and ongoing product innovation; and we executed decisions to exit regions where we were not generating appropriate returns, and to significantly reduce our expenses. All these business initiatives—you can read more about them in my 2014 CEO Letter and Business Outlook—were designed to drive value for our customers, employees and shareholders, and to create the operating and financial strengths that underpin true sustainability.
Despite the substantial additional work each of our business moves required of Mosaic’s people, we did not lose sight of our steadfast commitments to employee safety, responsible and innovative resource use, or the economic and social vitality of the communities in which we operate. Safety is paramount, and Mosaic has made exceptional headway: In 2014, for the third consecutive year, we achieved record safety performance. Our lost-time and recordable injury frequency rates both reached all-time lows, and we are proud of that accomplishment. But safety statistics alone can mask the reality: Every single injury on our work sites is one too many, and we are working in 2015 to drive still further improvements in safety performance.
We believe we have the strongest combination of assets, talent, financial strength and global reach in our industry
While the changes in our business portfolio resulted in shifting employee numbers, we finished the year with about the same number as we had at year-end 2013. Mosaic is a major economic driver in many of the communities where we operate. In addition to the competitive compensation and benefits our employees receive and are able to bring to their home communities, we invest millions of dollars annually to food, water and local community organizations to help improve lives.
Our environmental stewardship also continued to improve. For example, in 2014 we reused or recycled approximately 90 percent of the water used at our Florida phosphate and Saskatchewan potash operations. We generated approximately 7 million gigajoules of electricity through cogeneration in our North American operations. And we reclaimed approximately 5,990 acres of mined land in Central Florida. I am pleased that with the publication of this report Mosaic has committed to measurable new environmental targets: We are aiming to reduce our companywide greenhouse gas emissions, energy use and freshwater use by 10 percent per tonne of product by 2020.
This report demonstrates our commitment to continuous improvement in our sustainability reporting and transparency. We have elevated our reporting to meet the standards of the Global Reporting Initiative’s G4 framework, which focuses reporting on issues that matter most. In this context, we have completed an assessment of risks and other elements of Mosaic’s sustainability reporting that are material to our stakeholders, and streamlined our reporting accordingly. A clear understanding of material matters is essential to defining productive and efficient operating and sustainability strategies, and I am pleased with our progress in this regard.
We believe our business is positioned to outperform our competitors in the years ahead; we are operating efficiently while improving our safety results; we are developing and delivering innovative products to drive sustainable agricultural intensification; and we are demonstrating success in our commitments to environmental stewardship.
Committed to Leading:
Mosaic’s dedication to responsible operation has received important recognition: For the fifth consecutive year, we were named to Corporate Responsibility Magazine’s annual 100 Best Corporate Citizens list; Newsweek magazine named Mosaic to its 2014 list of America’s Greenest Companies; and we were included in the Carbon Disclosure Project’s Global CDP Leaders A List in 2014, with an overall carbon performance score of 99 out of 100—the best in CDP’s materials sector. In addition, we are a signatory to the United Nations Global Compact, and we remain committed to the universal principles it supports.
We will not rest on these laurels. Leadership bears responsibility, and Mosaic is embracing its obligation to drive continuous improvement—across the company, and across the crop nutrition industry. While we continue our efforts to advance Mosaic, we are also working to promote good stewardship of our fertilizer products, driving industry consensus on critical issues and engaging in important dialogs concerning the future of agriculture with participants from all segments of the industry.
The future is bright for agriculture and for Mosaic, and we understand that fulfilling our great potential requires unwavering commitment to responsible operations and corporate citizenship. Mosaic remains committed to leading with purpose.
James T. Prokopanko
President and Chief Executive Officer
Mining, producing and delivering millions of tonnes of fertilizer each year to customers around the globe is complex. It requires teams of dedicated professionals working to make responsible decisions each day and at every step in the production and supply chains.
We work to safely extract phosphate and potash ore from the Earth’s extensive reserves.
b Land Reclamation
We reclaim every acre of phosphate-mined land, creating high-quality habitats and wildlife corridors for fish, birds and other animals, and land suitable for agriculture and other diverse uses.
We refine, process, and blend phosphate and potash minerals to create crop nutrition products, then prepare goods for shipment.
We move raw materials, phosphate, potash and finished crop nutrition products across the supply chain using pipelines, trains, trucks, river barges and ships.
e Storage & Distribution
We have port terminals, warehouses and storage capacity in key geographies, with global distribution.
We sell to retail customers and regional distributors, as well as large international growers.
We provide large and smallholder farmers with the vital crop nutrients and micronutrients they need to help grow healthy plants, achieve better yields and grow food, feed, fuel and fiber more sustainably.
Our crop nutrients play a key role in growing crop yields and providing people with the healthy, affordable food they need to thrive.
At Mosaic, we deliver value to our stakeholders by thinking and acting sustainably. By leading with purpose, we’re preparing for a future full of promise.
Reporting Leadership & Awards Since 2009
At Mosaic, we aspire to be the industry leader in corporate sustainability. As such, we commit ourselves to sustainability and social responsibility as an employer, supplier, neighbor and value creator for shareholders.
Since our first sustainability report in 2009, we have strengthened our companywide commitment to transparency, reporting and improving sustainability performance with each passing year.
About This Report
2014 Sustainability Report
(G4-17, G4-22, G4-23, G4-32, G4-33) Our 2014 Sustainability Report report is based on the Global Reporting Initiative’s (GRI) G4 Guidelines ‘in accordance’ option core. The content of this report has been shaped by the issues identified through a materiality study, the results of which we analyze on an ongoing basis. The process is summarized in the Materiality section of this site.
This report primarily summarizes the activities occurring in the period of calendar year 2014. In 2013, Mosaic changed our fiscal year-end to December 31 from May 31. Accordingly, some historic data is presented in fiscal year (FY) terms. This report is aligned with our 10-K Report for the 2014 period and our 2014 CEO Review and Outlook, and should be read in conjunction with the information in those reports.
This report covers our global operations and includes entities over which Mosaic exercises majority control, including all their operations and departments that have the potential to generate significant impacts. Except for financial data, this report does not specifically reflect equity-method investments, including joint ventures. Please see our 10-K (page F-53) for a list of those investments.
Our method of determining production tonnes for the purpose of calculating intensity figures has changed. Whereas we used to include co-products, moving forward we will only include our primary products. We also modified the division of facilities among business units in G4-EN8. Specifically, two facilities, which were previously assigned to the Phosphates Business Unit withdrawal total, have been reassigned to the International/Distribution line. Prior years have been restated to reflect the same. This change affects the total withdrawals by business unit but does not affect the enterprise’s overall withdrawal totals.
In 2014, we completed the acquisitions of the Florida phosphate assets of CF Industries, Inc., and Archer Daniels Midland Company’s fertilizer distribution businesses in Brazil and Paraguay. We permanently discontinued production of muriate of potash (MOP) at our Carlsbad, N.M., facility and transitioned to exclusive production of K-Mag®. We completed the sale of our salt operations and closed low-producing potash operations at our Hersey, Mich., mine. We sold our distribution assets in Argentina, and completed the closure and liquidation of our Chile distribution assets. Unless otherwise noted, the information in this report reflects those changes.
Mosaic commissioned iCompli, a division of BPA Worldwide, to provide independent third-party assurance over the sustainability content within the Mosaic 2014 GRI Indicators (the “Report,” covering activities occurring in the period of calendar year 2014). This engagement has been managed in accordance with AccountAbility’s AA1000AS (2008) assurance standard, where the format of the engagement was structured to meet the AA1000AS Type I (Moderate) requirements.
Mosaic authorized Trucost Plc to perform a third-party verification of waste, energy, water withdrawals and greenhouse gas emissions data and calculations Scope 1, Scope 2 and Scope 3 emissions for 2014. Trucost evaluated Mosaic’s data, methodologies and calculations, and provided a statement of assurance to the AA1000AS standard.