At Mosaic, sustainability is more than just a buzzword—it’s about improving our performance and delivering value to our diverse stakeholders. We're proud of all we've accomplished in our more than 10 years as a public company, and we will continue to strive for sustainability excellence. This year, we’ve developed a series of progressive sustainability targets. We are committed to progress against these targets and will work to evaluate future areas for measurement and improvement.
Strategy &
Performance
2014 Comparative Highlights
Helping the world grow the food it needs is no easy task. Mining, producing and delivering millions of tonnes of fertilizer each year to customers around the globe is complex. It requires teams of dedicated professionals making responsible decisions each day and at every step in the production and supply chains. We’ve built a resilient, responsible, financially strong and innovative enterprise, capable of responding day by day, quarter by quarter and decade by decade to the ever-changing agriculture markets. Our recent moves to grow and become more efficient enhance the promise Mosaic provides for all of our stakeholders.
Economic Highlights
in Millions (except per share amounts)
| FY2011 | FY2012 | FY2013 | CY2013* | 2014 | |
| Net Sales | $9,937.8 | $11,107.8 | $9,974.1 | $9,021.4 | $9,055.8 |
| Gross Margin | 3,121.8 | 3,085.0 | 2,760.2 | 2,015.4 | 1,926.6 |
| Operating Earnings | 2,664.2 | 2,611.1 | 2,209.6 | 1,339.9 | 1,311.8 |
| Net Earnings | 2,514.6 | 1,930.2 | 1,888.7 | 1,062.9 | 1,028.6 |
| Diluted Net Earnings Per Share | 5.62 | 4.42 | 4.42 | 2.49 | 2.68 |
| Cash and Cash Equivalents | 3,906.4 | 3,811.0 | 3,697.1 | 5,293.1 | 2,374.6 |
| Total Assets | 15,786.9 | 16,690.4 | 18,086.0 | 19,554.0 | 18,283.0 |
| Total Long-term Debt | 809.3 | 1,010.5 | 1,010.5 | 3,009.3 | 3,819.0 |
| Total Equity | 11,661.9 | 11,999.4 | 13,442.9 | 11,320.6 | 10,720.6 |
| Net Cash Provided by Operating Activities | 2,426.7 | 2,705.8 | 1,887.5 | 2,019.9 | 2,293.7 |
| Capital Expenditures | 1,263.2 | 1,639.3 | 1,588.3 | 1,426.6 | 929.1 |
| Dividends Per Share on Common Stock | 0.20 | 0.275 | 1.00 | 1.00 | 1.00 |
Note: Change of year end from May 31 to December 31 occurred in 2013 (from a fiscal to a calendar year); first full calendar reporting year is 2014. For more detailed financial information, please refer to our 10-K.
*Unaudited due to change of year end from May 31 to December 31 in 2013.
Environment Highlights
| 2010 | 2011 | 2012 | 2013 | 2014 | |
| Total | |||||
|
Water Withdrawals*,** 000m3 | 288,534 | 268,527 | 288,065 | 319,004 | 309,371 |
|
Energy Consumption*** indirect and direct energy, million GJ | 94.6 | 92.9 | 97.7 | 97.13 | 105.91 |
|
Greenhouse Gas (GHG) Emissions tonnes CO2e | 4,264,055 | 3,593,390 | 4,509,579 | 4,410,252 | 4,721,097 |
| Intensity | |||||
|
Freshwater 000m3 per tonne of finished dry product**,** | 4.38 | 4.37 | 5.43 | 5.07 | 4.59 |
|
Energy GJ/tonne dry product**** | 2.61 | 2.24 | 2.73 | 2.63 | 2.59 |
|
GHG (Scopes 1 and 2) tonnes CO2e/tonnes finished dry product | 0.26 | 0.21 | 0.28 | 0.27 | 0.26 |
**In line with our sustainability targets, we are reporting freshwater intensity. The intent of our water target is to drive water efficiency improvements across our business and to increase the use of alternative sources. "Freshwater" is defined as ground and surface water, and excludes reclaimed water, brine, seawater and Mississippi River water.
***Total water withdrawal includes once-through cooling water.
****Energy consumption includes electricity, fuels and energy from waste heat consumed by Mosaic operation including mines, manufacturing plants, distribution sites, offices and agricultural operations. 2012 and 2013 figures include energy consumed in sinking the K3 mine shaft in Esterhazy and the operation of Streamsong Resort. Prior years were restated with the exclusion of steam as an energy source.
Social Highlights
| FY2011 | FY2012 | FY2013 | CY2013 | CY2014 | |
| Direct Economic Impact***** | $1.61B | $1.71B | $1.56B | $1.45B | $1.75B |
| Community Investments****** | $11.6M | $23.6M | $22.6M | $27.1M | $17M |
| Number of Employees******* | 7,700 | 8,000 | 8,400 | 8,200 | 8,717 |
| Recordable Injury Frequency Rate | 1.70 | 1.27 | 1.20 |
1.04 (July-Dec) 1.11(CY) | 1.02 |
| Lost Time Incident Frequency Rate | 0.18 | 0.12 | 0.10 |
0.11 (July-Dec) 0.091 (CY) | 0.075 |
| Fatalities | 1 | 1 | 0 | 0 | 1 |
|
United Way avg. pledge per employee | $456 | $475 | $514 | $535 | $502 |
*****Direct economic impact is wages and benefits + income taxes paid + Canadian resource taxes and royalties + community investment contributions.
******Mosaic focuses its community investments in food, water, and local philanthropic or civic partnerships where Mosaic has offices and operations. Figures reflect investments made in communities where targeted beneficiaries are external to the company. This may include contributions to research institutes unrelated to Mosaic’s research and development activities, funds to support community infrastructure and other philanthropic efforts.
*******This figure, which differs from the number of employees reported in our 10-K, excludes long-term leaves, co-ops, seasonal and temporary employees.
Sustainability
Targets
At Mosaic, we are continually developing innovative ways of doing our work. These innovations increase our efficiency while demonstrating our respect for the Earth’s resources. And they enable us to continue driving toward our goal of an incident- and injury-free workplace. These efforts support our ability to deliver value to our employees, customers, shareholders and stakeholders around the world.
To develop our Sustainability Targets, Mosaic reviewed 10 years of operational data and analyzed statistical means. The 2012 dataset was selected as the baseline year because it
allows our company to stretch for meaningful and sustainable long-term improvement.
Improve Safety Performance
| Target | Where We Are Today | What We Plan to Do Next |
|---|---|---|
| By 2020, reduce recordable injury frequency rate to 0.6 | We achieved record safety performance in 2014—for the third consecutive year
| Improve hazard awareness and risk mitigation through a standardized pre-job field level risk analysis and communication process Continue to enhance the effectiveness and efficiency of our environmental, health and safety management system Define and implement additional environmental, health and safety (EHS) leading indicators to help drive proactive EHS performance improvements |
Reduce Freshwater Use
| Target | Where We Are Today | What We Plan to Do Next |
|---|---|---|
| By 2020, reduce freshwater* use by 10% per tonne of product | Our freshwater* use per tonne of product was 4.59m3 in 2014 We used more than 3 million m3 of reclaimed water in 2014 We reused or recycled approximately 90% of freshwater used at Phosphates Business Unit manufacturing and Potash Business Unit operations in 2014 | Continue commitment to water stewardship companywide Establish site specific goals to drive water conservation at the facility level Increase use of reclaimed water Evaluate additional partnerships with industry and government to use alternative water sources |
*For the purposes of this target, "freshwater" is defined as groundwater and surface water, excludes reclaimed water, brine, seawater and Mississippi River water.
Reduce Energy Use
| Target | Where We Are Today | What We Plan to Do Next |
|---|---|---|
| By 2020, reduce total energy use by 10% per tonne of product | Our total energy use was 2.59 GJ/tonne of product in 2014 Our continuous energy improvements in manufacturing facilities and support functions resulted in more than 1.6 million GJ energy savings in 2014—the equivalent of powering approximately 40,000 homes (view more projects G4-EN6) | Enhance site specific efforts to conserve energy, and establish specific goals to drive conservation at the facility level Increase internal consumption of cogenerated electricity wherever possible Investigate and evaluate renewable energy options |
Reduce Greenhouse Gas Emissions
| Target | Where We Are Today | What We Plan to Do Next |
|---|---|---|
| By 2020, reduce our combined Scope 1 (direct emissions) and Scope 2 (purchased electricity) greenhouse gas (GHG) emissions by 10% per tonne of product | We completed our goal, published in 2012, to reduce absolute GHG emissions by 10% and GHG intensity** by 5% in our Phosphates Business Unit from 2005 levels by 2015
In 2014, Mosaic’s worldwide Scope 1 and Scope 2 GHG emissions per tonne of product was 0.26 tonnes of CO2e Our Phosphates Business Unit operations produced 5.8 million GJ of clean energy through cogeneration, the process of converting waste heat to energy, helping Mosaic avoid almost 1 million metric tonnes of CO2e—the equivalent of taking over 200,000 cars off the road | Evaluate additional Scope 3 emissions sources Continue using lower carbon options for material transport |
**Intensity per tonne of product and GHG targets exclude ammonia production due to pending decision on capacity expansion.
Reduce Waste
| Target | Where We Are Today | What We Plan to Do Next |
|---|---|---|
| Reduce waste by increasing reuse and recycling of resources | Across business units, we recycled more than 15,000 tonnes of waste Our South Pierce facility received recognition from the Florida Department of Environmental Protection in 2014 for recycling 50% of its solid waste We strive for continuous improvement in our waste reporting. For the second year in a row, we commissioned Trucost, Plc to verify our waste data, resulting in a statement of assurance to the AA1000AS standard | Evaluate, develop, educate and, where appropriate, implement ways to increase reuse and recycling to reduce wastes Collect and externally audit waste streams to form a baseline for promoting waste minimization Optimize potash tailings management areas to minimize footprint Explore reuse and beneficial uses of potash mine salt tailings Explore reuse and beneficial uses of phosphatic clay |
Stakeholder
Engagement
Meaningful engagement of internal and external stakeholders is central to Mosaic’s long-term success. We want to hear the full range of voices in our workplaces and our communities worldwide. By demonstrating our commitment to transparency and ongoing dialogue, our goal is to earn and preserve the trust of all our stakeholders.
(G4-24, G4-25, G4-26, G4-27) Mosaic’s stakeholders include our employees, communities, customers, government and regulatory officials, investors, civil society, environmental organizations, suppliers, media, academia and others. We identify our stakeholders as those who are affected by our activities and whose actions have the potential to affect the outcome of our business activities. Our stakeholders help shape our strategic priorities and give meaning to our mission to help the world grow the food it needs.
Mosaic supports formal and informal communication channels to connect our employees, communities, partners and consumers.
Stakeholder Engagement
| Mosaic’s Stakeholder | Ways We Engage | How Often | Topics of Importance |
|---|---|---|---|
| Academia | Fund or sponsor research, technical and industry meetings, research site visits, in-person visits during growing season, remote meetings | Monthly to Quarterly | Product innovations, agronomic research and development, nutrient stewardship, product trials, regulations, and impacts of our business and the industry |
| Civil Society Organizations | Internet site, meetings with organization, local community and business leaders, corporate communications | Weekly to Biannually | Nutrient stewardship, sustainable agriculture, food security, local community investment and partnerships |
| Customers | Sales relationships, regular visits, customer service surveys, special events | Weekly to Biannually | Product innovations, agronomic research and development, 4R Nutrient Stewardship, certifications, impacts of our business and the industry |
| Employees, Senior Leadership Team and Board of Directors | Intranet sites, e-screens at plants and mines, town hall meetings, engagement surveys, Annual Meeting, committee meetings | Daily | Environment, health and safety, company, business unit and facility performance, our business and our industry, business conduct and ethics, professional development and training |
| Government and Regulatory Officials | Congressional and administration advocacy, permitting applications, tours of plants and mines | Biweekly to Quarterly | Compliance, environmental investment and footprint, industry leadership, voluntary programs |
| Investors and Financial Markets | Internet site, webcasts and presentations, Securities and Exchange Commission (SEC) reports, analyst meetings, press releases | Daily to Quarterly | Investments, financial results, market data, operational excellence, risks and opportunities, company and shareholder priorities |
| Joint Ventures and Business Partners | Board meetings, technical and planning sessions, site visits | Daily to Biannually | Project details, environment, health and safety, investments, technologies, product and process knowledge |
| Labor Unions | Employee and labor relations meetings, contract negotiations | Daily to Annually | Safety, contract interpretation, employee relations issues, engagement, productivity, work environment |
| Local Communities | Internet site and community microsites, tours of plants and mines, community advisory panels, town halls and/or open houses, media, community organization memberships, economic and charitable partnerships | Daily to Quarterly | Partnerships and community relations, corporate and charitable support, environmental investment, environmental footprint, education, local jobs, economic impact |
| Media | Press releases, interviews and briefings, Internet site and community microsites, SEC reports, tours of plants and mines, town halls and/or open houses | Daily to Quarterly | Company priorities, performance and products, food security, nutrient stewardship, watershed restoration and preservation, local economic impact, partnerships and community relations, corporate and charitable support |
| Retirees | Mailings, HR Connect | As Needed to Annually | Plan benefit summaries and changes, investment updates and disclosures |
| Suppliers | Internet site, meetings with procurement team, supplier survey | Weekly to Biannually | Cost reduction, productivity, quality and innovation opportunities, new technologies, contract preparation, environment, health and safety evaluation and renewal, products and services provided, certifications, impacts of products and services |
Cross-sector and Industry Partnerships
(G4-15 and G4-16) Mosaic recognizes the importance of being active in industry associations and cross-sector business forums. These common platforms help advance cutting-edge scientific research and best management practices within our company and our industry. We consider the relevance of each engagement opportunity to our business strategies, and we pursue mutually beneficial partnerships. Many of the key organizations we engage with are listed here.
Cross-sector and Industry Partnerships
| Cross-sector Organization | Ways We Engage | Involvement |
|---|---|---|
| Carbon Disclosure Project (CDP) | Member | Mosaic supports CDP’s aims to improve transparency with respect to greenhouse gas emissions and develop reduction strategies. We report to CDP annually. |
| Global Reporting Initiative (GRI) Focal Point Sector USA | Founding U.S. Sector Leader | In 2011, Mosaic joined GRI Focal Point USA as a U.S. sector leader to help boost the number of U.S. companies reporting on sustainability, to improve the quality of those reports and to increase U.S. organizations’ input into developing new guidance for sustainability reporting. |
| Institute on the Environment (IonE) at the University of Minnesota | Founding Partner | Mosaic supports IonE’s activities to assess trends in global agricultural supply and demand, improve our ability to balance human needs with environmental stewardship and promote secure landscapes across the globe. |
| United Nations Global Compact (UNGC) | Signatory | In 2011, Mosaic became a signatory to the UNGC, affirming our deep commitment to operating responsibly. We communicate our progress annually. We are also committed to UNGC's Food and Agriculture Business (FAB) Principles. |
| Industry Organization | Ways We Engage | Involvement |
| Agriculture Nutrient Policy Council (ANPC) | Member | Our membership in the ANPC allows us to be an active stakeholder and leader in the policy process, building the industry’s technical, legal and policy capacity. |
| Agricultural Retailers Association (ARA) | Board Level | Mosaic contributes to ARA’s mission to advocate, influence, educate and provide support to agricultural retailers. |
| Associação Nacional para Difusão de Adubos (ANDA) | Member | As a member of ANDA, Mosaic promotes the value and correct use of fertilizers in Brazil. |
| Canadian Fertilizer Institute (CFI) | Board Level | Mosaic supports CFI’s efforts to promote the responsible, sustainable, and safe production, distribution and use of fertilizers. |
| Conservation Technology Information Center (CTIC) | Board Level | In 2014, Mosaic continued to partner with CTIC on several initiatives that champion, promote, and provide information on technologies and sustainable agricultural systems. |
| Field to Market® | Board Level | Mosaic contributes to solutions for sustainability and continuous improvement in U.S. commodity agriculture. |
| International Fertilizer Industry Association (IFA) | Board Level | Mosaic supports IFA’s efforts to represent, promote and protect the fertilizer industry among policymakers, regulators, farmers and society at large. |
| International Plant Nutrition Institute (IPNI) | Board Level | Mosaic contributes to and benefits from IPNI’s information about the production, distribution, and use of potash, and its influence on soil fertility. |
| Saskatchewan Mining Association (SMA) | Board Level | Mosaic supports the SMA’s aims to enhance the general welfare of the mining industry through technical innovations in the fields of health and safety standards, waste disposal, environmental protection, and extractive metallurgy research and development. |
| Saskatchewan Potash Producers Association (SPPA) | Board Level | Our membership in SPPA allows us to be an active stakeholder in the policymaking process. |
| The Fertilizer Institute (TFI) | Board Level | Mosaic partners with TFI in its mission to represent, promote and protect the fertilizer industry. |
| Fertiliser Association of India (FAI) | Member | Mosaic supports and partners with FAI in its objective to ensure food security through balanced and efficient use of plant nutrients. |
Materiality
Defining What's Most Important
(G4-18, G4-19, G4-26) As a global, publicly traded company, we are continually exploring what it means to be responsible and accountable to Mosaic’s diverse stakeholders. From employees, customers, shareholders and industry partners to trade unions, community organizations, government officials and academics, we seek ongoing dialogue with individuals or representatives of stakeholder organizations that impact—or are impacted by—Mosaic’s business activity.
Topics and indicators that reflect Mosaic’s significant economic, environmental and social impacts or that would substantively influence the assessments and decisions of stakeholders are deemed by us to be "material" for sustainability reporting purposes. References in this Report to "material" or "materiality" refer to matters that are material, or to materiality, for sustainability reporting purposes.
While our stakeholders’ different perspectives occasionally harbor a potential for conflict, we aim to strengthen a broad foundation of trust, open communication and mutual understanding. In our effort to understand and prioritize issues material to our stakeholders, we worked with a third-party auditor to analyze how Mosaic defines significant economic, environmental and social impacts, engages stakeholders, prioritizes and manages issues, and develops targets by which we measure and report our progress. AccountAbility’s AA1000 Stakeholder Engagement Standard guided the review process that reflects our company’s commitment to more fully inform all stakeholders on matters that influence our business and society.
We aim to strengthen a broad foundation of trust, open communication and mutual understanding
In addition to analyzing peer sustainability reports, Global Reporting Initiative (GRI) G4 guidelines and the Mining and Metals sector supplement, as well as other reports and frameworks, our analysis included:
- Reviewing Mosaic’s public financial reports, sustainability reports, GRI tables, policies and commitments as well as an internally-conducted survey of senior management, customers and employees
- Conducting quantitative telephone surveys to measure progress of community relations and environmental stewardship in two primary geographies in which Mosaic operates—regions of Saskatchewan and Florida
- Scanning media reports, social media and blogs for issues raised for public concern
- Engaging leaders of local, regional, national and global community organizations
- Comparing sustainability materiality determination practices to peer companies
- Cataloguing issues identified by stakeholder surveys, sustainability indexes, principles of the United Nations Global Compact, regulatory and policy trends, industry associations and cross-sector partnerships
- Reviewing marketing research and customer satisfaction survey results
- Analyzing investor insights
- Compiling community perceptions through social media activity and brand awareness surveys
Focus Areas
Our former Sustainability Steering Committee and Public Affairs team members evaluated the materiality of more than 50 issues based on their relevancy and importance to stakeholders, the likelihood of impact and the connection to Mosaic’s business strategies and values. Material issues are structured around and summarized in five areas of sustainability focus:
- Food
- Environment
- People
- Company
- Community
Continuous improvement is a cornerstone of our company culture, driving us forward. Our stakeholders—whether supportive or critical—voice concerns and provide suggestions that help us define and achieve our sustainability goals. Our goals and reporting will evolve as we refine our understanding and identify further material issues.
5 Areas of Sustainability Focus: Food, Environment, People, Company, Community
(G4-19) The following issues, grouped into 14 categories by sustainability focus area, stand out as most material to our stakeholders.
Category Descriptions
- Water
- Withdrawals, recycling and discharge
- Occupational Health and Safety
- Injury-free workplace
- Promoting safe and healthy behaviors
- Communities
- Local sourcing and hiring
- Community relations
- Community investment
- Revenue sharing and sustainable community investment
- Commercial, in-kind or pro bono impacts
- Closure plans
- Greenhouse Gas (GHG) Emissions and Energy
- Energy consumption, source and efficiency
- GHG and other significant air emissions
- Product Stewardship, Innovation and Food Security
- Agricultural yields and sustainable intensification practices
- Agronomic and technological research and development
- Product innovation
- 4R Nutrient Stewardship
- Government
- Public policy activities
- International fiscal or political unrest
- Environmental Incidents
- Environmental releases
- Fines and nonmonetary sanctions
- Waste
- Overburden and tailings
- Mining wastes
- U.S. Resource Conservation and Recovery Act
- Shareholders
- Performance, priorities and investment
- Market forecasting, competition and risk
- Market access
- Low-cost provider of crop nutrients
- Supply Chain
- Raw materials and energy price and availability
- Supply chain and JV risk
- Data security
- Workforce Management
- Recruiting, developing, demographics
- Labor relations
- Training and benefits
- Customers
- Satisfaction, expectations, loyalty, requirements
- Land Use and Biodiversity
- Mined, reclaimed and managed land
- Management plans, International Union for Conservation of Nature red list
- Human Rights
- Freedom of association and collective bargaining
- Indigenous rights
Continuous improvement is a cornerstone of our company culture, driving us forward
(G4-20, G4-21) Material aspects, as well as aspect boundaries within and outside the organization, are as follows:
Food
| Material Category and Relevant G4 Aspects | Aspect Boundary Within the Organization | Aspect Boundary Outside the Organization |
|---|---|---|
Product Stewardship, Innovation and Food Security
| Whole Organization | Customers; Civil Society Organizations; Competitors; Government and Regulatory Officials; Media; Academia |
Customers
| Whole Organization |
Environment
| Material Category and Relevant G4 Aspects | Aspect Boundary Within the Organization | Aspect Boundary Outside the Organization |
|---|---|---|
Water
| Whole Organization | Local Communities; Suppliers; Customers; Government and Regulatory Officials; Media |
Greenhouse Gas (GHG) Emissions and Energy
| Whole Organization | |
Environmental Incidents
| Whole Organization | |
Waste
| Whole Organization | |
Land Use and Biodiversity
| Phosphates and Potash Business Units | |
Supply Chain
| Whole Organization | |
Other Material Aspects
| Whole Organization |
People
| Material Category and Relevant G4 Aspects | Aspect Boundary Within the Organization | Aspect Boundary Outside the Organization |
|---|---|---|
Occupational Health and Safety
| Whole Organization excluding acquisitions completed in 2014 (CF Industries and ADM) | Suppliers; Local Communities; Labor Unions |
Workforce Management
| Whole Organization |
Company
| Material Category and Relevant G4 Aspects | Aspect Boundary Within the Organization | Aspect Boundary Outside the Organization |
|---|---|---|
Government
| Whole Organization | Investors; Suppliers and Joint Ventures; Competitors; Government and Regulatory Officials; Civil Society Organizations; Media |
Shareholders
| Whole Organization |
Community
| Material Category and Relevant G4 Aspects | Aspect Boundary Within the Organization | Aspect Boundary Outside the Organization |
|---|---|---|
Communities
| Whole Organization | Local Communities; Civil Society Organizations |
Human Rights
| Whole Organization |