Impact reporting 2015

Sustainable Value Matrix and Boundaries

Identified material aspects and boundaries  

G4-17 All entities included in the organization’s consolidated financial statements or equivalent documents

Financial Report 2015, Note 2, pages 74-75. 

Annual report 2015

b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

The consolidated financial statement of Yara comprises 160 legal companies that are controlled by Yara. The material subsidiaries are disclosed in the in the Financial Report 2015, in the table in Note 2, pages 74-75, and the associated companies and joint ventures are disclosed in the Financial Report 2015, Note 14, pages 96-98. 

Reference is also made to G4-20.

G4-18 The process for defining the report content and the Aspect Boundaries

The process to determine what issues are viewed as material to Yara, and as significant to Society, was led by Head of Sustainability Bernhard Stormyr, with support from Harvard-professor Robert Eccles. The following methodology was used: 

Preliminary phase 

We used Sustainability Accounting Standards Board (SASB) as a basis and the list of issues from both the chemicals and the metals & mining industries as a starting point 

The heads of each business segment appointed key people to participate in a survey and workshops 

Background information was shared with the segments, explaining the need for a materiality analysis, the method used and the goals 

Participants in upcoming workshops was asked to determine material issues in a survey, in order to use this as a basis for a group discussion 

The process was documented

A dedicated writer was appointed to document the process 

Interviews and discussions 

Three workshops was conducted with senior representatives from the four different segments, determining which issues are material to Yara and which issues are societally significant 

Stakeholder views were also covered in these workshops, based on the experience of the business segment representatives, and also the ongoing dialogue Yara is involved in with a number of different stakeholders on a corporate level 

In-depth interviews was conducted with IR and Ethics&Compliance 

Minutes of meetings was distributed afterwards in order to anchor conclusions 

A fourth workshop with the strategy team and communications team was conducted, based on the input from the other workshops and interviews

Concluding phase 

The fourth workshop concluded and came up with a recommendation for the management group on the materiality analysis for Yara 

Yara has drawn upon a range of stakeholder tools such as the GRI G4 guidelines, SASB standard, UN Global Compact and not least the Post 2015 UN Sustainable Development Goals, which serve as the main input for Societal significance.

Conclusions were drawn in February 2016 by Yara Management.

Reference is also made to the G4-19 response.


G4-19 Material Aspects – Sustainable value matrix: Responsible creation of shared value 

Yara's corporate strategy is sustainable and profitable growth. In our strategic approach and ambition, we believe that knowledge is a key driver of our business and creates value for our customers. Building on the existing priority areas for Yara's global engagement and expert solutions; Food, Resources and Environment, in 2015 Yara performed a materiality analysis. The methodology is described in G4-18. 

The result is Yara's Sustainable Value Matrix, identifying topics which we find to have an impact on the company's ability to create value as well as topics which are relevant to our business, and which are seen as significant from a societal point of view.

Yara opted to use the United Nations' Sustainable Development Goals (SDGs) as the starting point for the societal dimension. This comes in addition to the extensive stakeholder contact in Yara's business segments and expert organization, which formed the basis for the workshops' analysis of themes. SDG themes are marked with an asterix *). Several of the material, Yara-specific topics are also related to the SDGs as described below. 

Right hand column: Topics which are seen as material to Yara. Top row: Topics which are seen as significant to society.



Sustainable value matrix

Sustainable value matrix View chart

The top left themes include the SDGs which Yara sees as relevant either in terms of raising societal expectations towards the company or in presenting potential future business opportunities, i.e. which may over time move to the top right quadrant of the matrix.

Company material, societally significant aspects

Knowledge margin: Yara realizes a knowledge margin relative to most of its peers in several key areas, providing a competitive edge. For the Sustainable Value Matrix these dimensions include: 

  • Process safety and environmental stewardship 
  • Knowledge, tools and solutions to support yields, sustainable agriculture and farmer profitability 
  • Product Stewardship 

These topics are linked to several SDGs, in particular SDG 9 - Industry, innovation and infrastructure; SDG 12 - Responsible consumption and production; SDG 15 - Life on land; SDG 6 - Clean water and sanitation; and SDG 14 - Life below water.

Climate change: Yara has a leading position in its industry on greenhouse gas emissions and solutions for climate smart agriculture, providing a competitive edge in a society dedicated to reducing emissions. Regional differences in policy implementation may however raise risks if regulatory actions do not ensure fair competition. This topic is linked to both SDG 13 - Climate action and to the COP21 negotiations and outcome.

Energy: Natural gas is Yara's main raw material and also its main cost. Affordable access to natural gas is a competitive advantage, and improving energy efficiency is a contribution to reduced costs. This topic is linked to SDG 7 - Affordable and clean energy. 

Safety: Safety is a key priority in Yara. We value our employees, who represent a knowledgeable and diverse workforce, and every employee has a right to a safe working environment. A safe workplace is good for business. We believe that all accidents are preventable. Our goal is zero injuries. This topic is linked to SDG 8 - Decent work and economic growth. 

Ethics and Compliance: Success can only be celebrated when it is achieved in the right way. Our manner of conducting business defines who we are as a company. We leverage this externally as a competitive advantage and use it internally as a directional compass. Through consistent integrity, we create trust both internally and externally. This topic is linked to SDG 16 - Peace, justice and strong institutions.

Knowledge sharing: Yara is dedicated to collaboration, working with other stakeholders to promote safe, sustainable, efficient and profitable solutions. Sharing knowledge with farmers, customers, policy makers, business partners and society at large promotes a supportive operating framework, creating shared value while also improving Yara's competitive position. While this topic touches upon most of the topics also mentioned above, the extension services element has additional relevance to SDG 1 - No poverty. 

Company material but societal insignificant aspects 

The four material aspects which are not seen as significant from a societal perspective are covered in the Financial Report. 

Company immaterial, societal significant aspects 

The SDGs were screened towards Yara relevance. When the SDG themes were not covered by Yara's material aspects, but had relevance to Yara's operations, they were listed as societally significant. The SDGs are explained through the UN system, and for Yara's process the SDG Compass was used as a tool for navigation: http://sdgcompass.org/ 

The two additional items identified by Yara are: 

Community relations: For our individual production sites, having a positive community relationship is a key part of the license to operate. 

Human rights: The Norwegian Government is the largest Yara shareholder. In the white paper covering expectations to companies in which the government holds shares, the four core areas are climate and environment, human rights, labor rights and anti-corruption.

Material GRI aspects 

Based on the Sustainable Value Matrix, the core team of Yara's GRI reporting prioritized GRI aspects. The GRI aspects were also cross-linked to company commitments, in particular expectations from the Norwegian Government as the largest Yara shareholder, the UN Global Compact and its 10 principles, the CEO Water Mandate, Caring for Climate and Call to Action: Anti-Corruption and the Global Development Agenda. 

Aspects were included as material when they cover themes relevant to the included SDGs, the Yara commitments or the company material items. 

This is an overview over GRI Aspects and the matrix items to which they are linked:

Category: Economic
ASPECT: ECONOMIC PERFORMANCE

Material per se

ASPECT: INDIRECT ECONOMIC IMPACTS

Knowledge margin: Knowledge, tools and solutions to support yields, sustainable agriculture and farmer profitability

No poverty

Decent work and economic growth

Category: Enviromental
ASPECT: MATERIALS

Global optimization and scale

ASPECT: ENERGY

Energy

Industry, innovation and infrastructure

ASPECT: WATER

Life below water

ASPECT: EMISSIONS

Knowledge margin: Process safety and environmental stewardship

Climate change

Industry, innovation and infrastructure

Sustainable cities and communities

Life below water

Community relations

Caring for Climate

ASPECT: EFFLUENTS AND WASTE

Knowledge margin: Process safety and environmental stewardship

Knowledge margin: Product Stewardship

Life below water

Industry, innovation and infrastructure

ASPECT: PRODUCTS AND SERVICES

Knowledge margin: Knowledge, tools and solutions to support yields, sustainable agriculture and farmer profitability

Sustainable cities and communities

ASPECT: COMPLIANCE

Knowledge margin: Process safety and environmental stewardship

ASPECT: TRANSPORT

Knowledge margin: Product Stewardship

ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT

Responsible consumption and production

ASPECT: ENVIRONMENTAL GRIEVANCE MECHANISMS

Community relations

Category: Social
Sub-category: Labor practices and decent work
ASPECT: EMPLOYMENT

Decent work and economic growth

ASPECT: OCCUPATIONAL HEALTH AND SAFETY

Safety

Decent work and economic growth

ASPECT: TRAINING AND EDUCATION

Knowledge margin

ASPECT: DIVERSITY AND EQUAL OPPORTUNITY

Decent work and economic growth

ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN

Decent work and economic growth

ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICES

Decent work and economic growth

UN Global Compact

ASPECT: LABOR PRACTICES GRIEVANCE MECHANISMS

Decent work and economic growth

Sub-category: Human rights
ASPECT: INVESTMENT (human rights)

Human rights

UN Global Compact

ASPECT: NON-DISCRIMINATION

Human rights

ASPECT: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

Decent work and economic growth

ASPECT: CHILD LABOR

Human rights

Decent work and economic growth

ASPECT: FORCED OR COMPULSORY LABOR

Human rights

Decent work and economic growth

ASPECT: SECURITY PRACTICES

Human rights

ASPECT: ASSESSMENT (human rights)

Human rights

ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT

Human rights

Responsible consumption and production

ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS

Human rights

Community relations

Sub-category: Society
ASPECT: LOCAL COMMUNITIES

Community relations

ASPECT: ANTI-CORRUPTION

Ethics and Compliance

Call to Action: Anti-Corruption and the Global Development Agenda

ASPECT: PUBLIC POLICY

Ethics and Compliance

ASPECT: ANTI-COMPETITIVE BEHAVIOR

Ethics and Compliance

ASPECT: COMPLIANCE

Ethics and Compliance

ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY

Ethics and Compliance

Responsible consumption and production

ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY

Community relations

Sub-category: Product Responsibility
ASPECT: CUSTOMER HEALTH AND SAFETY

Knowledge margin: Product stewardship

ASPECT: PRODUCT AND SERVICE LABELING

Knowledge margin: Product stewardship

Responsible consumption and production

ASPECT: COMPLIANCE (products and services)

Knowledge margin: Product stewardship

Responsible consumption and production

G4-20 Aspect Boundaries

Boundary of report (Countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers) 

Consolidated data within this report covers the reporting year 2015, unless otherwise noted. Boundaries are mainly reflecting IFRS accounting principles. Readers should take note of the following changes and limitations to the scope and boundaries of the reporting: 

Environmental performance data covers Yara's major chemical production and mining sites. Read more about Yara's production sites. 

Joint ventures are included where Yara has operational responsibility according to IFRS 11 requirements. For the 2015 report this includes Yara's joint ventures in Trinidad and Pilbara, Australia. 

The JV Lifeco, Libya, no longer fulfills the IFRS 11 requirements, but data are provided to the extent available and commented upon in the indicators. 

Companies where Yara holds control (IFRS 10) are included, with Galvani, Brazil, being a significant change from 2014 as figures are included for the 2015 reporting. Historical Galvani data have not been recalculated into Yara data. 

Equity accounted investees are not reported. The significant EAI companies are listed in Note 13 to the Financial Report 2015. 

Environmental impacts from staff functions, wholesalers, agents and associated companies have not been included. Downstream distribution has been covered to the level of transport accidents (EN 30).

Yara Marine Technologies is a recent acquisition and not integrated in our systems yet, more detailed information is currently not available. 

HR and LA Indicator points were not reported for sites with less than five permanent employees. The HR data therefore covers 57 countries out of the 61 in which we operate.

GRI ASPECT Relevance to Yara and society
ASPECT: ECONOMIC PERFORMANCE Material to Yara, significant to society
ASPECT: INDIRECT ECONOMIC IMPACTS Significant to society
ASPECT: MATERIALS Material to Yara
ASPECT: ENERGY Material to Yara, significant to society
ASPECT: WATER Significant to society
ASPECT: EMISSIONS Material to Yara, significant to society
ASPECT: EFFLUENTS AND WASTE Material to Yara, significant to society
ASPECT: PRODUCTS AND SERVICES Material to Yara, significant to society
ASPECT: COMPLIANCE Material to Yara, significant to society
ASPECT: TRANSPORT Material to Yara, significant to society
ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT Significant to society
ASPECT: ENVIRONMENTAL GRIEVANCE MECHANISMS Significant to society
ASPECT: EMPLOYMENT Significant to society
ASPECT: OCCUPATIONAL HEALTH AND SAFETY Material to Yara, significant to society
ASPECT: TRAINING AND EDUCATION Material to Yara, significant to society
ASPECT: DIVERSITY AND EQUAL OPPORTUNITY Significant to society
ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN Significant to society
ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICES Significant to society
ASPECT: LABOR PRACTICES GRIEVANCE MECHANISMS Significant to society
ASPECT: INVESTMENT (human rights) Significant to society
ASPECT: NON-DISCRIMINATION Significant to society
ASPECT: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING Significant to society
ASPECT: CHILD LABOR Significant to society
ASPECT: FORCED OR COMPULSORY LABOR Significant to society
ASPECT: SECURITY PRACTICES Significant to society
ASPECT: ASSESSMENT (human rights) Significant to society
ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT Significant to society
ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS Significant to society
ASPECT: LOCAL COMMUNITIES Significant to society, material to the individual Yara production site
ASPECT: ANTI-CORRUPTION Material to Yara, significant to society
ASPECT: PUBLIC POLICY Material to Yara, significant to society
ASPECT: ANTI-COMPETITIVE BEHAVIOR Ethics and Compliance
ASPECT: COMPLIANCE Material to Yara, significant to society
ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY Material to Yara, significant to society
ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY Significant to society, material to the individual Yara production site
ASPECT: CUSTOMER HEALTH AND SAFETY Material to Yara, significant to society
ASPECT: PRODUCT AND SERVICE LABELING Material to Yara, significant to society
ASPECT: COMPLIANCE (products and services) Material to Yara, significant to society


G4-21 

a. For each material Aspect, report the Aspect Boundary outside the organization, as follows: 

  •  Report whether the Aspect is material outside of the organization 
  •  If the Aspect is material outside of the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified 
  • Report any specific limitation regarding the Aspect Boundary outside the organization

Reference is made to G4-20.

G4-22 

a. Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

No significant restatements are provided in the report. 

G4-23 

a. Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

Yara has transferred the GRI reporting from G3.1 to G4 standards, which impacts the definitions of aspects. Apart from this, there were no significant changes.

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