Percentage of Operations With Implemented Local Community Engagement, Impact Assessments and Development Programs

In alignment with Mosaic's Environment, Health and Safety policy, Mosaic is committed to conducting all business activities in a manner that protects the environment and the health and safety of our employees, our contractors, our customers and the public. Mosaic's core values of integrity, excellence, sustainability and connectivity define how we conduct business, how we interact with colleagues, and how we treat our communities and planet. As such, 100% of Mosaic operations have impact assessment and development programs. Mosaic employs a variety of approaches to systematically assess and manage the diverse impacts of industry on the various communities in which we operate.

Across the globe, our employees adhere to the same companywide values. This common sense of purpose and responsibility ensures that we approach our work with a shared goal. Mosaic has key distribution facilities in eight countries, serving customers in approximately 40 countries around the world. Mosaic owns more than 250,000 acres in Central Florida, where the Company mines phosphate rock and manufactures phosphate fertilizers and animal feed ingredients (AFI). The Company also mines potash from five mines in North America, primarily in Saskatchewan. Additionally, Mosaic's business in Brazil is comparatively extensive and an important factor for future growth. In Brazil Mosaic has seven blending plants, six tolling plants, a central office, one single-super phosphate plant, one AFI plant, a central office and a port. Although Mosaic continues to refine and adapt community investment programs throughout South America and Asia, due to the nature of our business and potential impact, this report heavily emphasizes Central Florida, Saskatchewan, Canada and Brazil.

Our operations in Saskatchewan, Central Florida and Brazil work diligently to engage local communities. Mosaic's engagement within local communities includes monthly meetings with a series of community advisory panels, civic organizations, elected officials, civil servants and other opinion leaders. Mosaic reaches the broader community through print, broadcast, billboard and digital ads, news and social media outlets, direct mail, and public education initiatives. When the business plans to expand operations, we host community forums and participate in public hearings convened by local and regional governments.

Mosaic is committed to conducting and reporting the results of environmental impact assessments. In April 2013, the final Areawide Environmental Impact Statement (AEIS) on Phosphate Mining in the Central Florida District was released by the Army Corps of Engineers (ACOE) for public review. In August 2013, the AEIS for continued phosphate mining in the Central Florida Phosphate District was finalized. Administered by the ACOE in compliance with the National Environmental Policy Act, this process analyzed the environmental scope and potential impacts of phosphate mining in Central Florida. Additionally, as it becomes available, information about our permit applications is posted online. This transparency provides the public with a clearer view of the regulatory process for permitting and gives local residents the ability to communicate directly with the experts overseeing a given project.

The Mosaic Potash business unit conducts regular environmental impact assessments, reporting the findings to the Saskatchewan Ministry of Environment. All environmental impact assessments have been submitted and approved to date. Additionally, the Mosaic Potash facilities in Saskatchewan, Canada, conduct thorough biological assessments of proposed expansion sites, such as the assessments for the tailing expansion at the Colonsay and Esterhazy mines, as well as the new K3 mine site at Esterhazy. Each of these assessments includes field surveys to identify rare species of plants and animals of special concern to identify if mitigation programs are required.

Community Development and Consultation

Each year, Mosaic aims to invest 1% of earnings before interest and taxes (EBIT) over a three-year rolling average into our communities. The Mosaic Company, The Mosaic Company Foundation and The Mosaic Institute in Brazil make investments in our global communities through philanthropic grants, employee engagement and in-kind product donations. Combined contributions in fiscal 2013 reached $22.9 million.

In 2013, Mosaic operations in Florida committed more than $10.5 million, and operations in Saskatchewan committed more than $4.5 million to enrich and improve communities where we have offices and operations. Mosaic employs regional, full-time community relations (CR) staff to support all communities where we have an operating footprint. Mosaic CR staff is committed to maintaining an open dialogue with the people in our communities, assessing local needs and building partnerships designed to improve community vibrancy for local residents. Independent Community Advisory Panels (CAPs) help facilitate this work. Underwritten by Mosaic, CAPs serve as a forum for open discussion among representatives of the local community, and provide a place for companies to discuss community response to industry developments and plans. CAPs also provide grants to local schools to help fund projects focused on science and environmental issues.

In some locations, there are cultural implications to our business that Mosaic addresses through community engagement. Through the efforts of the manager of Aboriginal Engagement in Canada and Mosaic's Representative Workforce Strategy, Mosaic continues to build a more inclusive workforce by working with various provincial tribal councils. Mosaic recognizes the significance of building relationships with educational institutions throughout Saskatchewan, as well as other First Nation and Metis organizations that serve the career development needs of aboriginal people in Saskatchewan. For example, Mosaic partners with the Saskatchewan Indian Institute of Technologies' Mining Industry Prep Programs, which are based in Saskatoon, Yorktown and Regina, to prepare the aboriginal workforce for careers in mining.

Stakeholder Engagement

Mosaic is committed to stakeholder engagement and public outreach efforts. Through face-to-face meetings, social media, government relations, facility tours and more, Mosaic connects with stakeholders to keep them well informed and engaged with our mission to help the world grow the food it needs.

  • Mosaic employees conduct tours for local, state and federal elected officials and staff, customers, investors, students, community leaders, the media, nonprofit and civic groups throughout the year.
  • Mosaic has an engaged social media presence (Twitter, Facebook, Youtube). These media enable us to share information with the general public and engage in conversations about our business, making thousands of impressions on users and community members.
  • Additionally, Mosaic manages micro Web sites in support of future permitting, with the goal of being transparent with the general public. These sites invite the public to be engaged with the permitting process, review maps of the proposed mining areas, ask an expert and submit questions about our activities in and around their communities.
  • During fiscal year 2013, The Mosaic Express – an educational exhibit on wheels about phosphate – traveled across Florida and the United States sharing information about our business, nutrient stewardship and the role of fertilizer in food production with more than 15,000 people in Florida, South Dakota, Alabama and Minnesota.
  • Mosaic is committed to being an engaged business partner. In the past year, Mosaic held meetings inviting current and potential vendors to discuss our corporate values and how we interact with other companies and our communities. Mosaic also regularly engages its customers in crop nutrient education and business management principles through various events, such as Mosaic's AgCollege, which hosts 250 of Mosaic's strategic customers from the U.S., Canada, Mexico, Argentina, Brazil, Australia, Chile, China and India for the premier education, personal growth and leadership development event for fertilizer retailers.
  • As a member of The Fertilizer Institute, the Canadian Fertilizer Institute, the Saskatchewan Mining Association and the Saskatchewan Potash Producers Association, Mosaic presents important information to government groups and decision-makers who directly impact operations, our current expansions and our investments in our communities.
  • Individually, Mosaic participates in ongoing consultation with both the provincial government of Saskatchewan and the federal government of Canada. Topics presented to key stakeholders include energy – particularly the high cost of natural gas in Saskatchewan, including the need for new exploration and sources to sustain potash mining and future industry. Other topics include air emissions and the ability to work in partnership with the government to approach environmental sustainability.
  • Mosaic has plans to expand in various geographies, and skilled labor is a key priority. Working with the government to make immigration a priority, Mosaic has not only helped bring new skilled labor to Saskatchewan, but has also assisted in building community infrastructure in the areas where we operate. In fiscal year 2013, Mosaic donated scholarship funds to various college engineering programs such as Virginia Tech, University of Kentucky, Louisiana State University, University of Florida and University of South Florida. Additionally, the Mosaic Phosphates business unit in Florida – Apprenticeship/Internship program.


Operations With Significant Potential or Actual Negative Impacts on Local Communities

Mosaic provides a great number of economic and social benefits to the local communities in which it operates. However, as with all mining activities, the extraction and beneficiation of phosphate rock and potash to meet the global demand for mineral fertilizer has the potential to cause environmental impacts. Mosaic operates in a highly regulated and monitored industry. We work closely with state/provincial and federal officials on operations, expansions and sales to ascertain the environmental impact of industry activities on local communities. Through this collaboration, Mosaic has identified and implemented mitigation opportunities that safeguard local communities from potential negative impact. For information on actual or potential impacts, please see the discussion of risk factors in our 10-K Report (Pages 21-25).


Prevention and Mitigation Measures Implemented in Operations With Significant Potential or Actual Negative Impacts on Local Communities

Mosaic is committed to conducting business in a manner that protects the health and safety of our employees, contractors, customers and communities. In order to assess and ensure the safety of our operations and communities, Mosaic instituted the Risk-Based Inspection Mechanical Integrity program, which was launched in 2010 at our Esterhazy operations in Saskatchewan and New Wales plant in Florida. The program provides an industry-leading process to proactively identify risk and prevent failure of assets at our mines and facilities by giving employees the information and resources they need to:

  • Assess the condition of all stationary assets at a specific location
  • Develop an inspection plan that will prevent mechanical failure
  • Help to ensure action is taken to correct any and all deficiencies

Mosaic was one of the first companies in the industry to take a look at this approach, demonstrating our commitment to continuously improving the way we operate and ensuring the safety of our facilities and local communities.

Additionally, a cross-functional team comprising of representatives from EHS, Operations and Public Affairs has identified 12 scenarios that would have the most dramatic impact on the Company's brand, reputation or financial well-being. The team built a crisis and critical issues program that tests and drills employees on their preparedness for various issues. These drills have been completed at all major facilities across the Company. The next step in Mosaic's crisis-management preparation will build on the coordination facilities already have with local first-responders and community leaders.

Environmental impact is an increasingly important issue against which all human activities must be weighed. Mosaic has been a leader in habitat conservation, land reclamation projects for previously mined land and water conservation, which mitigate potential environmental impacts on the communities in which we operate.

In fiscal 2013, Mosaic's Bartow facility reached a milestone: 500 million gallons of water saved. This accomplishment is part of the ongoing “Water Matters” initiative launched at the Bartow facility in May 2011. The project focuses on identifying opportunities to reduce fresh water usage and reuse process water, as well as reducing process water inventory through the use of reverse osmosis (RO) and evaporation. Keeping water levels in balance, particularly during heavy rain and hurricane seasons, is a critical environmental function at our operating facilities.

Furthermore, in April 2013, the final AEIS on Phosphate Mining in the Central Florida District was released by the ACOE for public review. Administered by the ACOE in compliance with the National Environmental Policy Act, this process analyzed the environmental scope and potential direct, indirect and cumulative impacts of proposed and reasonably foreseeable phosphate mining projects in the Central Florida Phosphates District. Among the report's noteworthy conclusions was that with mitigation, there will not be any significant adverse impacts on wetlands and wildlife habitat from proposed future Mosaic mining activities.


Number and Description of Significant Disputes Relating to Land Use, Customary Rights of Local Communities and Indigenous Peoples

In 2012, Mosaic had no disputes to report relating to land use, customary rights of local communities and indigenous peoples.


The Extent to Which Grievance Mechanisms Were Used to Resolve Disputes Relating to Land Use, Customary Rights of Local Communities and Indigenous Peoples, and the Outcomes; includes Use and Outcome of Any Grievance Procedures

There were no such disputes in 2012.

Before concerns or disputes arise, Mosaic strives to engage in an interactive dialogue with stakeholders, including local communities and interest groups, through means such as our Internet site and community microsites, tours of plants and mines, community advisory panels, town halls, and/or open houses.


Number (and Percentage) of Company Operating Sites Where Artisanal and Small-scale Mining (ASM) Takes Place on, or Adjacent to, the Site; the Associated Risks and the Actions Taken to Manage and Mitigate These Risks

In 2012, no artisanal or small-scale phosphate or potash mining took place on, or adjacent to any Mosaic site. Mosaic's mining operations encompass potash and phosphate ores, which are less suited to artisanal or small-scale mining (as compared to precious metals, for example). Our mine operations are capital intensive, and therefore, risks are required to be defined and managed well before any mining occurs.


Sites Where Resettlements Took Place, the Number of Households Resettled in Each and How Their Livelihoods Were Affected in the Process

Mosaic's Potash and Phosphates operations are well established mining regions with 50-plus years of operations. Mosaic has community relations managers who ensure potential impacts from our operations are communicated effectively and the appropriate level of consultation is employed.

Mosaic recently participated in an AEIS, a two-year study by the ACOE, evaluating the cumulative impacts of phosphate rock mining in Central Florida. The study involved extensive community consultation, and the final report was issued in June 2013.


Number and Percentage of Operations With Closure Plans

Mosaic's phosphate mining is a land intensive operation. As such, our mine sites have to go through a detailed permitting process that involves determination and approval of ultimate closure, post-closure care and/or reclamation of our facilities. Please refer to MM1, EN13 and EN14 for specific details of our reclamation efforts.

Mosaic has plans in place as required by governmental regulations for the closure and post closure care of our phosphogypsum management systems at seven former and current phosphoric acid manufacturing plants in Florida and Louisiana. For specific details on our estimated asset retirement obligations (ARO), please refer to our 2013 10K.

Similarly, Mosaic has plans in place as required by governmental regulations for the closure and post-closure care of its Saskatchewan mining operations. For specific details of our estimated AROs, please refer to our 2013 10K.



Business Units Analyzed for Risks Related to Corruption

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 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).


Employees Trained in Organization's Anti-corruption Policies and Procedures

Mosaic requires all salaried employees (which include all management employees) to complete online training regarding the FCPA, and since May 2009, over 4,700 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.


Actions Taken in Response to Incidents of Corruption

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.

Public Policy


Public Policy Position

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. Mosaic supports elected officials 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.

  • Mosaic's primary public policy activities during this reporting period have focused on water quality. We have advocated in the United States for science-based policies that are protective of precious water resources in the communities in which we live and operate, while also allowing for the continued growth of job-creating businesses and the local and regional economies. Specifically, Mosaic supported the passage of Florida legislation codifying the landmark agreement between the Florida Department of Environmental Protection and the EPA that details how numeric nutrient criteria water quality standards will be implemented in Florida – standards that are the strongest and most comprehensive in the nation.
  • Taxes. We have advocated in the United States for the passage of tax policies that encourage the continued viability of the manufacturing sector. This includes advocacy for a proposal to eliminate the sales tax on investments – in particular manufacturing machinery and equipment and supporting elective state corporate income tax apportionment options that do not penalize companies that make significant investments in employees and capital in their communities. In Canada, we have advocated for a resource-based tax structure that allows us to be competitive within the global potash industry. We have also received tax reductions through the recognition of our capital expansion plans in the province of Saskatchewan.
  • Electricity cogeneration from waste heat. It is Mosaic's belief that the generation of electrical energy from cogeneration sources should be considered a renewable energy source. We have advocated in the United States for comprehensive, rational renewable energy policies that would incentivize and expand the generation and use of existing, low-cost renewables, such as non-GHG-emitting waste heat electricity generated from industrial operations, and promote fairer pricing for third-party renewable producers when selling power to the electrical grid.
  • Transportation infrastructure investment. We have advocated in the United States for investment in transportation infrastructure, particularly at the Port of Tampa in Florida and in the Central Florida region.
  • Growth/land use. We have advocated in the United States for balanced growth and land use policies that would maintain and ensure the continued extensive local, state and federal reviews of our mining activities, while streamlining areas that have become unnecessarily redundant and costly.
  • India. Since 2002, Mosaic has been consistently supplying quality DAP and later MAP fertilizer to distributors in India. Mosaic has invested in equipment to set up a mid-stream discharge and fertilizer bagging plant at the Rozy Port in Gujarat, providing much needed port and packaging infrastructure. We are working to expand our footprint in India by encouraging the government to officially recognize MOP as a product that should be enrolled in the Department of Fertiliser's subsidy program so that we can continue to grow our business in this rapidly changing country.
  • European Union. As the United States and EU move forward with their Free Trade Agreement, we are urging negotiators to seek elimination of all tariffs and provide wider market access for Mosaic fertilizer. The U.S. fertilizer industry currently is subject to a 6.5% import duty to Europe, while countries such as those in North Africa enjoy tax-free access. Removing these tariffs will allow Mosaic to market in the EU on a level playing field with other fertilizer-producing countries.
  • Brazil. Brazil continues to be a key country for Mosaic. However, high demand for access to its ports often has barges waiting for an unreasonable amount of time to unload product. We are urging the Brazilian government to make necessary improvements to its ports and infrastructure so that our products can be delivered in a timely manner. In response, the government has committed to devote funds to expand and modernize its infrastructure system.


Value of Financial and In-Kind Contributions to Political Parties, Politicians and Related Institutions by Country

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.

Political Contributions
($ U.S.)
CY2010 CY2011 FY2012
U.S. $174,500 $146,250 $350,500
Canada $7,500 $42,000 $4,000
Note: U.S. political contributions include both “hard” and “soft” money donations, with contributions made from Mosaic PAC included in the U.S. total.

Anti-Competitive Behavior


Legal Actions for Anti-competitive Behavior, Antitrust, and Monopoly Practices

Mosaic settled a civil lawsuit that was filed in 2008 against Mosaic and other potash companies alleging that the defendants conspired to fix prices of potash sold in the United States. The settlement was made to avoid the expense and uncertainty associated with such litigation, and as part of the settlement Mosaic expressly denied any wrongdoing.



Significant Fines and Total Sanctions for Noncompliance With Laws and Regulations not Covered by EN28 and PR9

In 2012, Mosaic paid environmental fines of $64,856 as described in EN28 and health and Mine Safety and Health Administration fines of $106,269.