1.0 Strategy and Analysis


Statement From Jim Prokopanko, CEO Mosaic Company

We help the world grow the food it needs. At Mosaic, these nine simple words—our mission—guide all our decisions and actions. The challenge before us is great, especially as Earth's population continues its upward climb. To feed an increasingly hungry world, it's clear we must find ways to increase agricultural production. And we must do so sustainably.

Up to 60 percent of crop yields depend on soil fertility, and crop nutrients are fundamental to the production of healthy crops. As the world's largest combined producer of phosphate and potash—two minerals essential for plant growth—Mosaic plays an integral role in achieving global food security, while protecting Earth's natural resources.


Mosaic's enduring and unwavering commitment to sustainability begins with the health and safety of our people—and I am pleased to report that fiscal 2013 was Mosaic's best year ever for safety performance.

In particular, I'd like to highlight the performance of our Canadian potash expansion program, where we are employing many short-term contractors to expand our Esterhazy, Saskatchewan mining operations. Mine expansions are high-risk environments, and contractors must be thoroughly trained in Mosaic's safety standards before they begin work. To date, we've performed 20,000 contractor orientations, and we have recorded more than 10 million hours worked on expansion projects. Even with so many new people, we've reduced our recordable injury frequency rate for our potash expansion program from 2.68 in fiscal 2011 to 1.0 in fiscal 2013. Our safety training efforts have also led to increased risk awareness among contractors and employees, and a corresponding, fourteen-fold increase in near-miss reporting in fiscal 2013 versus fiscal 2011.

Mosaic is equally committed to our stewardship of the environment. In an effort to understand and prepare for water-related risks and opportunities, we're developing strategies to drive long-term water management improvements. For example, in our Florida phosphate operations, employee-led water conservation efforts are saving billions of gallons of water, and helped avoid the need for a new, $50 million reverse osmosis facility.

We are also expanding Mosaic's capacity to generate clean energy. In 2012, we installed additional transmission lines between our Bartow, Florida cogeneration plant and our South Fort Meade phosphate mine. This enabled us to transport emission-free electricity cogenerated by recovering waste heat, and avoid purchasing more than 158,000 gigajoules of fossil fuel-generated electricity from local utilities.

As a committed supporter of our communities around the globe, Mosaic invests in food, water and local initiatives of importance to our stakeholders. The Mosaic Villages Project is an example of our commitment; the project helps smallholder farmers in India, Guatemala and Africa increase yields and break the cycle of poverty. Strong implementing partnerships allow us to customize the Mosaic Villages Project according to each community's needs. For example, in India's Mewat region, where farmers struggle with water scarcity outside of the monsoon season, we worked with our partners to build a new check dam, which captures rainfall to replenish the aquifer—allowing farmers to irrigate their crops and produce more from their small parcels of land. The Mosaic Villages Project in Mewat expanded from five to 15 villages this year.


Mosaic's sustainability future is bright. Around the world, our 8,400 employees are applying their expertise to innovate, improve our sustainability practices and help the company perform at ever-higher levels.

By 2015, we plan to reduce Mosaic's absolute greenhouse gas (GHG) emissions by 10 percent and our GHG intensity by 5 percent in our North American phosphate operations from 2005 levels. We will continue our industry-leading reclamation work, maintaining our focus on preserving biodiversity and protecting wildlife. And we will continue helping farmers increase yields, while promoting balanced crop nutrition principles and the 4R Nutrient Stewardship Framework.

Mosaic will continue to lead as a responsible global corporate citizen. We are a signatory to the United Nations Global Compact, and we have completed a formal Commitment to Human Rights. We will remain a U.S. GRI sector leader, and we will again participate in the World Economic Forum as a Dual Industry Partner, with engagement at Davos and the regional summits in India, Latin America and China.

At Mosaic, we're continually learning from our diverse stakeholders about what it means to be responsible and accountable. We value our ongoing conversations and collaboration with individuals and groups, both supportive and critical. We believe it's only through greater understanding that all parties can make progress—and find solutions that strengthen communities, protect the natural environment and feed our growing world.

Sustainability is an integral part of Mosaic's business strategy, with sustainability performance goals connected to our strategic priorities and our operational and financial goals. By reducing our environmental impacts, using scarce resources wisely, lowering operating costs and engaging openly with society, we ensure long-term growth and profitability for our shareholders.

Best Regards,

James T. Prokopanko
President and Chief Executive Officer


Description of Key Impacts, Risks and Opportunities

Key Impacts and Risks

Factors affecting our market, including impacts and risks, are summarized within Mosaic’s 2013 10-K Report (pages 21-36).

Key Opportunities

Key opportunities are discussed in detail in our response to the CDP Report (sections 6.1a-6.1f), Mosaic’s 2013 10-K Report (page 3) and Sustainability Report.