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1.1
Statement From Jim Prokopanko, CEO Mosaic Company
1.2
Description of Key Impacts, Risks, and Opportunities
Mosaic's corporate governance structure is characterized by the Board of Directors, Board Committees and Senior Management teams. Additional information regarding directors, executive officers and corporate governance is detailed in our 10-K Report.
In 2010, Mosaic formalized its commitment to sustainability by establishing a Sustainability Steering Committee to ensure company-wide transparency and accountability. This group works to define priorities, needs and performance gaps across the company. The Environmental, Health, Safety and Sustainable Development (EHSS) Committee of Mosaic's Board of Directors provides oversight of the company's overall environmental and sustainability strategy. Their recommendations are comprehensively reviewed by Mosaic's Board of Directors and Senior Leadership Team (SLT).
In 2011, Mosaic formed an ISO implementation team to accelerate and optimize Mosaic's implementation of the ISO4001 and OHSAS18001 management systems. This team is responsible for building an environment where our sites can achieve and maintain certification.
During the 2011 reporting period, Mosaic conducted an organizational Environmental, Health and Safety (EHS) assessment. As a result, we increased frontline EHS staff to ensure consistent coverage across facilities and offices. Individual employees at any level may observe and communicate risks, opportunities and ideas. This information is analyzed, and material matters are presented to the Sustainability Steering Committee, the Senior Leadership Team, the EHSS Committee and the Board of Directors.
Mosaic is continuing to develop a product stewardship charter. Product stewardship promotes a way of thinking that is consistent with our core values (integrity, excellence, sustainability and connectivity).
Mr. Robert L. Lumpkins is Chairman of the Board of Directors.
Mosaic's Board of Directors has 11 members. Please refer to our 10-K Report (page 50).
Shareholder participation is detailed in our 10-K Report (page 50).
Information on how employees can provide feedback on sustainability is detailed in the 2012 Sustainability Report (page 64-66).
Performance measures for members of Mosaic's governance executives (Management Incentive Plan) are based not only on financial results but also on operational excellence measures and achievement of strategic priorities. Details of our corporate governance are provided in Mosaic's 10-K Report (page 50).
Please refer to Mosaic's 10-K Report for details on corporate governance, risk management and avoiding conflicts of interest (page 50).
Requirements for our Board of Directors are detailed in the Corporate Governance Guidelines and in our 10-K Report (page 50).
No matter where Mosaic operates in the world, our employees adhere to the same company-wide values. This common sense of purpose and responsibility ensures that we approach our work with a shared goal.
Our mission is to help the world grow the food it needs. As the world's largest supplier of phosphate and potash, we consider this mission to be a noble one that carries vast responsibility.
Our values of integrity, excellence, sustainability and connectivity define how we conduct our business, how we interact with each other and how we treat our communities and our planet.
We live in an increasingly populous and prosperous world, one in which the accelerating demand for food is a powerful force. Today the world's population is growing at a rate of about 1.1% per year. That might not sound like much, but it means we need to set the dinner tables for an additional 73 million people each year. This population explosion poses a serious challenge to the food producers of the world.
Another factor driving the demand for food is increasing prosperity, particularly in the developing world. As millions of people continue to increase their earning power, a protein-rich diet is generally one of their first lifestyle improvements. The demand for more protein has a significant impact on grain and oilseed demand, as protein-based diets are more dependent on these products than carbohydrate-based diets.
Considering the ever-expanding world population, the increased demand for protein and the fact that there is limited arable land on our planet, the most efficient way to meet the increasing demand for food is to increase crop yields. That's where Mosaic comes in. Our crop nutrients can double, triple or even quadruple a farmer's yield per acre. Agronomists estimate that commercial crop nutrients directly account for 40 to 60% of crop yields. The optimum use of crop nutrients is essential to growing the food the world needs.
Our crop nutrition products are complemented by our customized services. From field mapping and soil testing, to agronomic consulting and fertilizer blending innovations, our services provide real-world benefits to our customers.
Please refer to Mosaic's 10-K Report (page 50).
Mosaic Board, Mosaic's Environmental, Health Safety and Sustainable Development Committee, Compensation Committee and Corporate Governance Guidelines
In 2012 Mosaic became a member of the United Nations Global Compact, which includes a precautionary approach statement.
Mosaic is a signatory of the United Nations Global Compact (2012).
The Mosaic Company strives to be the global leader in the crop nutrient industry. As such, we recognize the importance of being active in industry associations and cross-sector business forums that provide common platforms to advance cutting-edge scientific research and best management practices within our company and our industry. Mosaic considers the relevance of the engagement opportunities to our business strategies and pursues mutually-beneficial partnerships. A selection of key organizations with which Mosaic is involved are listed below:
| Cross-Sector and Industry Partnerships | ||
|---|---|---|
| Cross-sector Organization | Ways we engage | Involvement |
| Carbon Disclosure Project (CDP) | Member | Mosaic supports the CDP's aims to improve transparency with respect to greenhouse gas emissions and develop reduction strategies. |
| Global Landscapes Initiative (GLI) | Founding partner | Mosaic supports the GLI'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. |
| GRI's Focal Point Sector USA | Founding U.S. Sector Leader | In 2011, Mosaic joined the 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. |
| United Nations Global Compact (UNGC) | Signatory | In 2011, The Mosaic Company became a signatory to the UNGC, affirming our deep commitment to operating responsibly. |
| World Economic Forum (WEF) | Member and committee level | Mosaic's participation in the WEF in both the Consumer and the Mining &Metals sectors allows us the opportunity to engage other global companies, gain line of sight and contribute to best practices. |
| Industry Organization | Ways we engage | Involvement |
|---|---|---|
| ANDA | Member | As a member of ANDA, Mosaic promotes the value and correct use of fertilizers in Brazil. |
| 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. |
| Canadian Fertilizer Institute (CFI) | Board level | Mosaic supports the CFI's efforts to promote the responsible, sustainable and safe production, distribution and use of fertilizers. |
| Conservation Technology Information Center (CTIC) | Board level | In 2011, Mosaic continued to partner with the CTIC on several initiatives that champion, promote and provide information on technologies and sustainable agricultural systems. |
| International Plant Nutrition Institute (IPNI) | Board level | In 2011, Mosaic contributed to and benefited from IPNI's information about the production, distribution and use of potash and its influence on soil fertility. |
| International Fertilizer Industry Association (IFA) | Board level | As a member, Mosaic supports the IFA's efforts to represent, promote and protect the fertilizer industry among policymakers, regulators, farmers and society at-large. |
| Saskatchewan Mining Association | Member | Mosaic supports the Association'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) | Member | Our membership in the SPPA allows us to be an active stakeholder and leader in the policy process, building the industry's technical, legal and policy capacity. |
| The Fertilizer Institute (TFI) | Board level | Mosaic partners with TFI in its mission to represent, promote and protect the fertilizer industry. |
Mosaic encourages open lines of communication with stockholders, in the communities that we operate and with all other stakeholders. Additional information on stakeholders engaged by Mosaic is provided in the 2012 Sustainability Report.
| Stakeholder Engagement | |||
|---|---|---|---|
| Mosaic's Stakeholder | Ways We Engage | How Often | Topics of Importance |
| Employees | Intranet sites, e-screens at plants andmines, town hall meetings, employee magazine, engagement surveys | Daily to Biannually | Environment, health and safety; company, business unit and facility performance; our business and our industry; business conduct and ethics; professional development and training |
| 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; and economic impact |
| Customers | Sales relationships, regular visits, customer service surveys, special events | Weekly to Biannually | Product innovations; agronomic research and developments; certifications; impacts of our business and the industry |
| Government and Regulatory Officials | Legislative advocacy, permitting applications, tours of plants and mines | Biweekly to Quarterly | Compliance; environmental investment and footprint; industry leadership; voluntary programs |
| Investors | 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 priorities |
| 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 |
| Suppliers | Internet site, meetings with procurement team, supplier survey | Weekly to Biannually | Cost reduction; productivity, quality, innovation opportunities; new technologies; contract preparation; environment, health and safety evaluation and renewal; products and services provided; certifications; impacts of products and services |
| 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 |
| Note: Information displayed in summary is available in full form in GRI: 4.13-4.17 | |||
Mosaic utilizes a variety of methods to engage with stakeholders. Some examples are provided below (Methods and opportunities for communication with the Board of Directors is detailed in our Proxy Statement).Mosaic maintains EthicsPoint, a 24-hour, independently administered, confidential, anonymous and multilingual hotline and website. EthicsPoint allows Mosaic employees to express any concerns they might have about compliance with our Code of Business Conduct and Ethics, as well as other workplace issues, concerns, inquiries and suggestions.
During the 2011 reporting period, Mosaic supported formal and informal communication channels to leverage the collective strength of our employees, communities, partners and consumers. Mosaic underwrites independent Community Advisory Panels (CAPs). For example, the CAP in Manatee County, Florida, is comprised of members from an active cross-section of civic leaders, environmental groups, business leaders and Mosaic's neighbors. A mix of self-identified citizens and those selected by a third-party facilitator identifies topics of community interest and concern, and invites knowledgeable presenters to address specific areas of focus. The Company is working to expand stakeholder outreach to improve our accountability feedback loop. We will be piloting interactive microsites to keep local residents informed and gather feedback on Mosaic's operations, permitting and reclamation plans, and community involvement. Each microsite is intended to serve as an open line of communication between Mosaic and local communities.
Mosaic is committed to stakeholder engagement and public advocacy efforts. Through social media, government relations, facility tours and more, we work to ensure that our stakeholders are well-informed and engaged with our mission.
Please refer to Mosaic's GRI indicator SO1 and the 2012 Sustainability Report (page 38) for details.
Meaningful engagement of internal and external stakeholders is central to The Mosaic Company's social responsibility and long-term success. We want to hear the full range of voices in our workplace and in our communities, and we strive to earn and preserve the trust of our communities and our world. Please refer to Mosaic's 2012 Sustainability Report for details.
In addition, the draft of the Area Wide Environmental Impact Statement (AEIS), which was undertaken for the phosphate industry in Florida provides an summary of the many considerations raised with regard to our phosphate operations. Please refer to the draft AEIS Report.