Mosaic employs a variety of approaches to systematically assess and manage the impacts of our operations on our communities. We also have a comprehensive approach to community engagement and development. Our largest operations are located in Saskatchewan, Canada, and four counties in Florida. We also have operations in South America and Asia. Although we continue to refine and adapt our programs in our more recent expansion areas of South America and Asia, this response focuses primarily on our North American operations. Mosaic has not quantifiably measured its percentage of local community engagement.
Mosaic is committed to conducting and reporting the results of environmental impact assessments. In 2011, the draft AEIS for continued phosphate mining in the Central Florida Phosphate District was launched. Administered by the Army Corps of Engineers and Environmental Protection Agency in compliance with the National Environmental Policy Act, this process analyzes the affected environment and potential impacts of phosphate mining in Central Florida. The draft AEIS scoping process included public meetings in March 2011, which attracted more than 800 industry supporters. There were 2,874 comments submitted during the public submission period, of which 91% were supportive of the phosphate industry and continued mining.
We are committed to public disclosure of our environmental impact assessments and permitting application details. For example, we are submitting our applications for future permits in conjunction with the draft AEIS with a focus on transparency. As information about our permit applications becomes available, it is posted online. This gives local residents the ability to communicate directly with the experts overseeing a given project, and provides the public with a clearer view of the regulatory process for permitting.
Our Potash business unit also conducts regular environmental impact assessments, reporting the findings to the Saskatchewan Ministry of Environment. The last study completed was in May 2011 and was for the Mosaic Potash Expansion K2 Stage 2 (K3). A full environmental impact assessment was conducted, including drilling test holes and a study of the local biology and wildlife, wetlands, topography and heritage factors.
We disclose the results of our Potash environmental impact assessments through open houses for the local community. These events are advertised in the local newspaper by Mosaic, and the public can submit comments up to 30 days after the presentation.
Each year, Mosaic donates 1% of pre-tax earnings to our philanthropic efforts. In fiscal 2011, Mosaic set a company record in corporate giving, and Mosaic employees logged more volunteer hours than ever before. We are striving to increase community support where our employees live and work.
In 2011, Mosaic operations in Florida committed over $8.4 million to enrich and improve communities where we have offices and operations. Community development projects in Florida include:
In 2011, Mosaic operations in Saskatchewan committed over $11 million to enrich and improve our Canadian communities. Community development projects in Canada include:
Mosaic is also committed to maintaining an open dialogue with the people in our communities. Examples of community consultation efforts include:
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.
Mosaic is committed to occupational health and safety for employees, and we strive to build a representational workforce. As such, we adhere to all occupational health and safety committee regulations as required by the provincial government in Saskatchewan. The Saskatchewan Mining Inspector ensures that Mosaic follows all regulations.
Meanwhile, Mosaic has created a detailed Representative Workforce Strategy for our Potash business unit in Saskatchewan. After meeting continually with both the Saskatoon and Yorkton tribal council, we hired a new representative workforce manager to implement and oversee the strategy.
In communities where Mosaic has majority ownership in our plants and facilities, we do not believe we have a negative societal impact. Local vendors supplied 73% of our supply chain needs in our Phosphates business and 67% in our Potash business during 2011, supporting local jobs and contributing economic viability. Mosaic operates in a highly regulated and monitored industry, and we are continually working with state/province and federal programs on operations, expansions and sales. As an example, the U.S. Army Corps of Engineers has recently released a draft form of an AEIS, focusing on past, present and reasonably foreseeable mining projects, looking at potential and cumulative impacts of phosphate mining in Central Florida. Mosaic and other phosphate companies requested that the U.S. Army Corps of Engineers issue permits for activities associated with phosphate mining or mine expansions within the Central Florida Phosphate District (CFPD). Because issuance of multiple similar permits would be considered a "Major Federal Action" under the National Environmental Policy Act of 1960 (NEPA), the Corps has committed to preparation of a draft AEIS. Once completed, the Corps will use the draft AEIS to make final decisions on permit applications filed by Mosaic and other companies, including Mosaic's Wingate East, Ona and DeSoto mines.
The draft AEIS addresses several primary issues related to the potential effects of continued phosphate mining:
These issues, as well as others accepted for inclusion as a result of public input, will be better defined through the "public scoping" phase of the draft AEIS. The draft AEIS is paid for by Mosaic and other companies as a part of permit applications. Historically, draft AEISs are conducted as the result of the activities of applicants, and as such, the applicants have to provide what is essentially unsponsored research funding. Mosaic and other companies are required to provide this funding for the study, but have no more say than the rest of the public in how it is conducted or what is in the scope. Other than providing raw data at the beginning of the process, the companies are not allowed to have any communication outside of the public commenting process.
As part of our permitting and reclamation processes, Mosaic strives to go above and beyond what is required and to create additional benefit to local economies whenever possible. Significant efforts are placed into best-in-practice land reclamation procedures and projects. Previously mined and reclaimed lands play an important role in a community's long-term economic development and environmental management plans.
Over the past 40 years, phosphate mining has advanced technologically and mine operators were noted as having adopted the following beneficial best practices and processes to improve water quality in the receiving streams after phosphate production and land reclamation: "(1) eliminating the use of ammonia in the ore separation (i.e., beneficiation) process, thereby reducing the nutrient (nitrogen) load in any water discharged; (2) increasing the water reuse rate, principally to address the hydrologic alterations discussed below, with the secondary benefit of reduced effluent volumes and loadings being released to the receiving streams; and (3) installation of sharp-crested weirs instead of discharge canals, which results in aeration at the point of discharge and increased dissolved oxygen levels downstream. In addition, improved floatation process control technology provides not only improved ore recovery and economic efficiency, but also water quality benefits as measured in units of flotation reagents applied per ton of phosphate rock recovered."
Mosaic's engagement within these communities includes monthly meetings with a series of community advisory panels, civic organizations, elected officials, government staff and other opinion leaders. We recognize that it is not practical to reach everyone through personal contact. Instead, we reach out to the broader community through television, news outlets, direct mail and public education initiatives. Our Phosphate operations also have developed community-specific websites. When our plans call for expanding our operations, we also participate in public hearings convened by local or regional governments.
In 2010, Mosaic had the unique opportunity to develop a large parcel of formerly mined phosphate land in Central Florida. These 16,000 acres of rolling, undulating land are being transformed into Streamsong®, a resort, conference center and golf venue. The area's dramatic contours contributed to the design of a highly distinctive 18-hole golf course. Additionally, the Central Florida Development Authority awarded Mosaic its highest honor, the George Harris, Jr. Award for business growth, community service and economic stability in Polk County.
Mosaic's Code of Business Conduct and Ethics demands strict compliance from our employees and requires employees to complete online code of conduct training and certify compliance with the code annually. Mosaic also maintains a 24-hour independently administered confidential and anonymous incident reporting hotline for all Mosaic employees. In addition, Mosaic conducts a robust risk assessment to identify risks related to the U.S. Foreign Corrupt Practices Act (FCPA). A robust fraud risk assessment is also completed in the Sarbanes-Oxley compliance efforts.
Mosaic recognizes the importance of the FCPA and has established a Worldwide Anti-corruption Policy. Mosaic conducts periodic FCPA audits of selected various geographic locations and respective individuals - including but not limited to country managers, sales representatives, accounting/finance personnel and supply chain - whose job responsibilities require a keen awareness of and compliance with the FCPA. The next audit will be conducted in 2012.
The total number of business units analyzed for risks related to corruption: Three (Potash, Phosphates and Corporate).
The percentage of business units analyzed for risks related to corruption: 100% (all three business units, which is our total population of business units).
Mosaic requires all salaried employees (which include all management employees) to complete online training regarding the FCPA, and since May 2009, over 4,100 Mosaic employees have completed such training. In addition to the online training, instructor-led training is also provided to certain employees, based on their location and job responsibilities. As part of our Code of Business Conduct and Ethics certification process, which is required annually of all salaried employees, employees are specifically asked to certify as to their compliance with the FCPA.
Mosaic has not had any incidents of corruption during the life of our company. Accordingly, we have not dismissed or disciplined any employee for corruption, nor have we declined to renew a contract with a business partner due to violations related to corruption.
As one of the world's leading crop nutrient companies, Mosaic has a responsibility to be actively engaged in the promotion of sound and sustainable public policies. We are proactive in educating government officials and staff at all levels on our company's operations, the key issues our company faces, our company's importance to local communities and the critical role we play in the world's food supply.
Our primary public policy activities this reporting period have focused on:
The Mosaic Company Political Action Committee (PAC), though officially chartered in late 2008, will be officially introduced to U.S. Mosaic employees in 2012. The purpose of the PAC is to support and help elect those federal candidates who are supportive of Mosaic's mission and share our views on important issues, such as maintaining a strong American manufacturing and mining base, recognizing the importance of crop nutrients in maintaining domestic food security and supporting reasonable science-based regulation with responsible environmental stewardship.
Amounts are reported based on when Mosaic wrote the check, which in some cases may be in a different fiscal year than when the check was delivered and reported by the receiving candidate or organization.
Contribution levels vary in accordance with election cycles in local and regional communities where we operate. 2011 was an active political year in our key geographies in the United States, as the Florida Legislature prepared to embark upon the once-a-decade redistricting process beginning in 2012 where every House, Senate and Congressional seat would be up for election. In Canada, the important Saskatchewan Provincial Election in 2011 led to the increase in political spending. The company is continuing to ramp up for a series of busy election cycles in the immediate future, and we continue to focus on telling the Mosaic story, while maintaining Mosaic's level of engagement in key races to promote a strong American manufacturing, agriculture and mining base, and reasonable science-based regulation with responsible environmental stewardship.
| Political Contributions ($ U.S.) |
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|---|---|---|---|
| FY2009 | CY2010 | CY2011 | |
| U.S. | $69,950 | $174,500 | $146,250 |
| Canada | $7,500 | $7,500 | $42,000 |
| Note: U.S. political contributions include both "hard" and "soft" money donations, with contributions made from Mosaic PAC included in the U.S. total. | |||
Mosaic is vigorously defending the civil lawsuits which were filed in 2008 against Mosaic and other potash companies alleging, among other things, that the defendants conspired to coordinate and fix prices of potash sold in the United States.
In 2011, Mosaic paid environmental fines of $9,600 and health and safety fines of $11,719. For more information download our 2012 Sustainability Report or go to section 4.14.
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