Impact report 2013

Society indicator points

SO1. Percentage of operations with implemented local community engagement, impact assessments, and development programs.

All Yara's major manufacturing sites monitor their environmental impact and operate according to strict standards, e.g. implementing the standards of ISO 9001, ISO 14001 and OHSAS 18001. An overview of the progress on standards implementation is provided in the Environmental DMA.


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

No specific significant negative impacts were recorded in 2014. The 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 company also operates under its own-defined HESQ Policy and


Product Stewardship standard.

The plants are not considered to represent a risk to the local environment, except if a major accident should occure. 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.


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.

In 2014, Yara recorded positive developments in the safety performance throughout 2014, particularly among contractors, a group that has been more prone to accidents than Yara employees. Yara also continued to roll out our Safe by Choice initiative to instill a common safety culture and lead the company to safety excellence.

Yara achieved a TRI rate of 3.9 (Total Recordable Injuries per million hours worked) for employees and contractors combined, a reduction of 10% compared to 2013. Yara targets a TRI rate below 3.0 - towards the ultimate goal of zero accidents. 

The TRI rate includes fatalities, lost-time injuries, restricted work cases (employees and contractors were able to be at work, but on restricted duties), and medical treatment cases. The trend continued to decrease since the turning point in 2012. Breakdown of TRIs by gender shows that 96% of the incidents and accidents involved men, 4% women. The LTI rate (Lost-Time Injuries per million hours worked) for Yara employees was 1.5 and contractors 3.2 for 2014. 

The contractor LTI rate rose slightly while the Yara employees' rate remained at the prior-year level . Yara calculates LTI rate based on scheduled work days and begins the day after the accident.

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. Additional attention is also given to reducing incidences of human error, an important factor in most accidents.

Yara's production sites are either certified or being certified to ISO 9001 (Quality Management), ISO 14001 (Environmental Management) and OHSAS 18001 (Health & Safety Management). Yara's operations in Europe are in compliance with the requirements of the Fertilizers Europe (FE)

Product Stewardship Program. Outside Europe, Yara is implementing the IFA Protect & Sustain product stewardship program set forth by the International Fertilizer Industry Association (IFA).


Corruption


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

Yara's risk assessment process aims to identify, evaluate and manage risk factors across all areas of the company, including corruption risks.

Risk assessment (which includes corruption) is mandatory for all business units : All expert functions; from Upstream down to plant level; Downstream down to country level; Industrial and Supply & Trade down to Business Unit level.


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

Yara's video learning program on ethics and compliance is mandatory for all new employees, and it covers various topics including anti-corruption policies and procedures.

In addition to the mandatory training program for new employees, Yara's Ethics and Compliance Department has a face to face training program called "Share it!". This is a role based dilemma training program conducted by Ethics and Compliance professionals. The program encourages managers and employees to identify and reflect on ethical and compliance related issues with strong focus on anti corruption , and aims to build a culture of open discussion about such matters. It also provides practical guidance about the Ethics and Compliance tools available, such as the Ethics Handbook and the Ethics Hotline.

The percentage of employees trained in face-to-face sessions during 2014 in the organization's anti-corruption policies and procedures was 13 %.


SO4. Actions taken in response to incidents of corruption.

In 2014 there were five reports to the Ethics Hotline regarding gifts, bribes and kickbacks. These cases were handled according to Yara's investigation procedures.

In April 2011, Yara International ASA launched an external investigation and concurrently notified The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime ( Økokrim) of possible irregularities. The main findings of the external investigation were published in June 2012 and shared with Økokrim , which continued investigating through 2012 and into 2013.

In January 2014 the Board of Yara International ASA informed Økokrim that the company acknowledges guilt and accepts a corporate fine and confiscation totalling NOK 295 million.

The fine of NOK 270 million is related to historical irregularities linked to the establishment of Lifeco (Libya), an unrealized project in India and Yara's activities in Switzerland. In addition Økokrim has imposed a confiscation of NOK 25 million related to earlier phosphate deliveries.


Public Policy


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.


Position papers

Yara has developed publicly available position papers on a number of topics, declaring its points of view. Apart from generic issues these also include position papers on a number of important issues for Yara, the industry and the agricultural sector:

• Agriculture and Climate, PDF (1013 KB)

• Baltic Sea, PDF (622 KB)

• The CAP towards 2020, PDF (255 KB)

• Water Use Efficiency, PDF (163 KB)

• Biofuels, PDF (462 KB)

• Fertilizer Use, PDF (983 KB)

• Genetically Modified Organism, PDF (589 KB)

• Land Use Efficiency, PDF (3188 KB)

• Organic Farming, PDF (831 KB)


Corporate engagement

Yara engaged in a number of international policy processes and dialogues. Based on Yara's position papers, strategy and focal areas, the company took part in events such as the WEF annual meeting, EU Development Days, the UN Global Compact's LEAD summit, the UN General Assembly's Private Sector Forum and the FAO's Committee on World Food Security (CFS).


FABs and RAI

During 2014 we continued our participation in the process leading up to the Food and Agriculture Business Principles (FAB) being launched by the UN Global Compact in September. This was the culmination of a process started in 2012; Yara joined the Core Advisory Group in 2013. The principles address the need for more specific sustainability throughout the agriculture value chain. In February, we co-hosted consultations in Brussels, hosted by Paolo De Castro, Chair of the Committee on Agriculture and Rural Development of the European Parliament; in March we supported regional consultations in Bogotá.

In October 2014, the Principles for Responsible Investment in Agriculture and Food Systems (RAI) were approved by the plenary of the Committee of World Food Security (CFS). The set of six voluntary principles address all types of investments, and intends to ultimately promote investments in agriculture that contribute to food security and nutrition. 

It includes a specific link to climate change, urging appropriate measures to reduce or remove greenhouse gas emissions. Yara, also representing the International Fertilizer Industry Association (IFA) a nd the Private Sector Mechanism (PSM) coordinated by the International Agri-Food Network (IAFN), participated at the plenary. Through the PSM, Yara has taken part in the two-year multi-stakeholder consultation process leading up to the 2014 endorsement.

Additional information is provided in the Impact Review 2014 Chronicle, pages 11 - 24 (PDF, 2,17MB).


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. Yara is not aware of any violations to this policy during 2014.


Anti-Competitive Behavior


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

In 2014, Yara was not subject to any legal actions for anti-competitive behavior, anti-trust, or monopoly practices laws or regulations.


Compliance


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

In January 2014, The Board of Yara International ASA informed the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) that the company acknowledges guilt and accepts a corporate fine and confiscation totalling NOK 295 million.

The fine of NOK 270 million is related to historical irregularities linked to the establishment of Lifeco (Libya), an unrealized project in India and Yara's activities in Switzerland. In addition Økokrim has imposed a confiscation of NOK 25 million related to earlier phosphate deliveries.

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