Yara and sustainability

Society indicator points 2011

SO2 - Percentage and total number of business units analyzed for risks related to corruption

Risk assessment in regard to corruption was conducted for individual countries, not business units. In 2011, fraud and corruption were part of the internal audit scope for several countries and specific investigations have also been executed to follow-up on specific incident reports. In addition, Yara's Internal Risk and Audit unit has performed a monitoring/audit of the Ethics and Compliance function as a whole.

SO3 - Percentage of employees trained in organization’s anti-corruption policies and procedures

In 2010, Yara rolled out its Ethics Program to the whole organization. A new Ethics Awareness Program will be launched in 2012 to mark the 2nd anniversary of the Ethics Program with the purpose of encouraging managers and employees to speak up and share any questions and concerns they may have.

SO4 - Actions taken in response to Corruption

The Ethics Hotline was established in 2010, and is run by an external company.

In 2011, there were two reports to the Ethics Hotline regarding gifts, bribes and kickbacks. These cases were handled according to Yara's investigation procedures.

Yara is currently being investigated by white collar crime unit Økokrim in Norway for alleged corruption in India and Libya. The investigation is still ongoing. 

SO5 - Public policy positions and participation in public policy development and lobbying

Yara continuously engages with key stakeholders, particularly its shareholders, partners and customers, national and regional authorities and organizations locally and globally. In addition, Yara participates in a number of partnerships and networks, also as a member of industry associations and relevant organizations and initiatives. 
 
Public affairs

During 2011, Yara was involved in international dialogue related to key global issues, with a priority given to the interconnection of food security and climate change, with a particular focus on African agriculture.

Global issues

A major policy issue on the table in 2011 was the progression of the Kyoto Protocol, debated at the COP17 (Conference of the Parties) in Durban, South Africa in December, aimed at reducing the emission of greenhouse gases. UN Secretary-General Ban Ki-Moon joined the Business for Environment (B4E) event at the COP17 Durban Dialogue, where Yara’s Chairman of the Board, Øivind Lund, was among the speakers, addressing the issue of sustainable agriculture and food security. The Chairman noted that high-level political engagement drives development, and creates an enabling environment that supports investments into the agricultural sector.

In a policy brief, the World Bank (WB) noted that ensuring food security under a changing climate is one of the major challenges facing Africa. Yara was the private sector’s onstage representative at the WB venue, addressing the need to step up efforts to make agriculture the engine for green growth.

The combined challenge of food security and climate change featured prominently at the World Economic Forum annual meetings in 2011 as well as 2012, in which Yara took a representative position for the agricultural business sector. In the 2012 WEF annual meeting Yara together with Nestlé and Pepsico hosted a session addressing the issue of the Food-Water-Climate-Energy Nexus.

Yara took up a position as co-chair in African Union’s initiative, Grow Africa Taskforce. The Task Force aims at leveraging experience from the growth corridors and related projects, scaling up investments into the agricultural sector. Yara’s CEO co-chaired a session in Davos titled “Agriculture as a Driver for Green Growth”,

Yara’s key messages were:

Agriculture will be in the spotlight during discussions on Green Growth through 2012:
It represents about 30% of GHG emissions, 40% of jobs and 50% of the world’s hungry. Global population will surpass nine billion by 2050, almost doubling demand for agricultural products – while climate change is a long term threat.

Agriculture holds great promise to provide key solutions. Investing in improved agricultural efficiency can contribute towards reducing hunger and GHG emissions, shaping rural development and safeguarding biodiversity and sustainable land use.

Yara pursues green growth at multiple levels, not least in the public-private partnership with president Kikwete on the Southern Agricultural Growth Corridor of Tanzania – the SAGCOT – and in the public-private task force for sustainable agricultural growth together with the Government of Vietnam.

Visions for agriculture

Yara maintained a key role in the "New Vision for Agriculture" roadmap, which has attracted attention and gained momentum during 2011 – now counting 26 global companies. The vision remains firm, aiming at reducing agricultural productivity, reducing GHG emissions and reducing rural poverty by 20% every decade.

Industrial issues

Yara is Europe's largest industrial consumer of natural gas, and has a key role in the processes leading to a more liberalized European gas market. Processes leading to increased transparency for the benefit of gas customers, more efficient balancing and better regulation of the European gas market are political efforts in which Yara is currently strongly involved. Dialogue and cooperation with relevant authorities from a number of EU member states has also been initiated to improve the level of understanding related to the future implementation of new legislation.

Common Agricultural Policy - CAP

Yara has made note of the ongoing process of revising the EU Common Agricultural Policy. As a business stakeholder in the agricultural value chain, Yara prepares to engage in the policy-making process. Yara’s key position is to maintain focus on increasing yields while improving resource use efficiency throughout the value chain, which is an important contributor to sustainable agricultural development.

ETS

The EU Emissions Trading System (ETS) is the world's largest international scheme for the trading of GHG emission allowances. A cornerstone of the EU's policy to combat climate change, the ETS covers about 11,000 power stations and industrial plants in 30 countries.

From 2013, all European ammonia and nitric acid plants will be regulated under the European Emission Trading Scheme (ETS). This will lead to added production costs for Yara and other European producers, especially in the ammonia sector. The European industry is deeply concerned that this will lead to competitive distortion versus non-European producers, resulting in increased imports from less efficient producers outside the EU, with consequent carbon leakages and more global emission of GHGs.

Yara expects to meet the new requirements for its nitric acid plants by having installed the company's N2O reduction technology, and examines the possibility for further technical improvements in some of its ammonia plants.

SO6 - Total value of financial and in-kind contributions to political parties, politicians and related institutions by country

Yara’s Ethics Handbook has a clear policy against donating to political parties, politicians and related institutions.

SO7 - Total number of legal actions for anti-competition behavior, anti-trust and monopoly practices and their outcomes 

Yara is currently involved in one pending case involving allegations of anti-competitive behavior. This case, in South Africa, has been decided in Yara's favor. The relevant competition authority can, however, still appeal the court's decision.

SO8 - Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations   

Yara was not a subject to significant fines, nor any non-monetary sanctions for non-compliance with laws and regulations in 2011.

SO9  - Operations with significant potential or actual negative impacts on local communities

No specific negative impacts have been recorded. Manufacturing of Yara’s products leads to emissions to air and water, therefore the operations at Yara’s sites are subject to local environmental permits. The plants are not considered to represent a risk to the local environment, except if a major accident should take place. All Yara sites are classified as industrial activities with potential major-accident hazards – in the EU, so-called Seveso sites -  and are required to operate in accordance with strict procedures and management controls to prevent major accidents.

Details on emissions and permits for each individual Yara plant is available at the Impact reporting web page. 

SO10 - Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

Through strict, standardized operating procedures, employee training and audits, Yara works continuously and systematically to prevent occupational safety risks and avoid accidents. Strong management  commitment and active employee involvement in preventive measures are crucial, and compliance is monitored diligently.

All accidents and near-accidents are thoroughly investigated and preventive action implemented. A lot of effort has been expended to improve process safety at Yara.

To maintain our industry-leading position and further improve operational safety mechanisms, the Process Safety program was initiated in 2009 to focus on technical analysis, effective alarm and control systems, procedures, training and competence development. More attention is also given to reducing incidences of human error, an important factor in most accidents. During 2011 we have continued to strengthen contractor safety follow up, tighten requirements for working in confined space, and initiate more safety walks.

Information is also provided at EN11.

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