Incitec Pivot CDP Climate Change Questionnaire 2021 Friday, July 23, 2021
Welcome to your CDP Climate Change
Questionnaire 2021
C0. Introduction
C0.1
(C0.1) Give a general description and introduction to your organization.
Incitec Pivot Limited (IPL) is a global diversified industrial chemicals company that supplies explosives, industrial chemicals, fertilisers and related services to the mining, infrastructure & construction, chemicals and agriculture industries. IPL has extensive operations throughout Australia, the United States, Canada, Mexico, Turkey and Indonesia, including over 30 manufacturing plants, scores of distribution centres and well-established channels to market. The Company employs over 4,800 staff worldwide, including almost 2,000 staff in Australia and over 2,400 staff in North America.
IPL manufactures a range of explosives and fertiliser inputs and products globally. Through the Dyno Nobel brand, IPL is the second largest supplier of explosives in Australia and is a market leader in North America. Dyno Nobel branded products include a complete range of commercial explosives including ammonium nitrate, bulk explosives, packaged emulsions and dynamite as well as a range of initiating systems. Services provided include expert technical consulting to customers such as mining companies and their suppliers, quarries and companies supporting the construction industry. In addition, IPL manufactures various industrial chemical products used in water treatment, process manufacturing and other industrial applications. Through the Incitec Pivot Fertilisers brand (IPF) IPL is Australia's largest supplier of fertilisers, dispatching approximately two million tonnes each year for use in the grain, cotton, pasture, dairy, sugar and horticulture industries. Products including ammonium phosphates, ammonia, urea, sulphuric acid and superphosphates are manufactured at five manufacturing sites across eastern Australia and IPL is the only manufacturer of ammonium phosphates and urea in Australia. IPF supplies fertiliser through a comprehensive network of distributors who supply the product to Australian farmers. IPL has a long-term commitment to investment in soil nutrition research and its Nutrient Advantage laboratory is industry accredited. As a leading provider of nutrition advice to farmers and customers, IPL promotes the sustainable use and safe handling of its fertiliser products to customers and farmers.
Due to the energy intensive nature of the manufacture of the nitrogen-based fertiliser and explosives products IPL supplies, 97% of the Company's global Scope 1 and 2 greenhouse gas (GHG) emissions are from the manufacture of these products. Natural gas is used as both a
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Incitec Pivot CDP Climate Change Questionnaire 2021 Friday, July 23, 2021
feedstock for making hydrogen and as an energy source, with 38% of global GHG in this reporting year arising from the use of natural gas as a feedstock, and 31% from the use of natural gas use for energy to drive the chemical manufacturing process. 16% of IPL's global GHG were process emissions of N2O arising from the manufacture of nitric acid, which is then used for the on-site manufacture of IPL's ammonium nitrate explosive products. 8% of the Company's emissions are from the purchase of electricity (Scope 2 emissions) and 4% are from the use of natural gas to generate electricity on IPL sites, which is used for manufacturing activities.
During this reporting period, which is the 2020 IPL Financial Year (ending September 30, 2020) the IPL Decarbonisation and Energy Transition Steering Committee was formed to map IPL's Pathway to Net Zero Emissions. The strategy being applied includes three core pillars:
- The identification of emissions reduction technologies required to reduce each of IPL's emissions sources. These technologies include renewable hydrogen (hydrogen obtained from splitting water using renewable energy, rather than natural gas) Carbon Capture and Storage/Use, N2O abatement technologies, renewable electricity and other alternate feedstocks.
- The ongoing assessment of the technical and commercial readiness of each of these technologies at the scale required to decarbonise IPL's manufacturing facilities, including an assessment of materiality & scale, technology readiness levels, access to critical infrastructure required for each, the government policies which may support these in IPL's different operation regions, financing and 'bankability' considerations and vendors & technology partners.
- The prioritisation of appropriate technologies and project development through feasibility studies such as IPL's AU$2.7m 2020 Solar Hydrogen Feasibility Study, assessment of alignment with long-term asset strategies, the strategic formation of value chain partnerships and engaging with Governments across our operating jurisdictions.
C0.2
(C0.2) State the start and end date of the year for which you are reporting data.
Start date | End date | Indicate if you are providing emissions data for | |
past reporting years | |||
Reporting | October 1, | September 30, | No |
year | 2019 | 2020 | |
C0.3
(C0.3) Select the countries/areas for which you will be supplying data.
Australia
Canada
Mexico
Turkey
United States of America
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Incitec Pivot CDP Climate Change Questionnaire 2021 Friday, July 23, 2021
C0.4
(C0.4) Select the currency used for all financial information disclosed throughout your response.
AUD
C0.5
(C0.5) Select the option that describes the reporting boundary for which climate- related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.
Operational control
C-CH0.7
(C-CH0.7) Which part of the chemicals value chain does your organization operate in?
Row 1
Bulk organic chemicals
Bulk inorganic chemicals
Ammonia
Fertilizers
Nitric acid
Other chemicals
Other, please specify
Ammonium nitrate (explosives)
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Incitec Pivot CDP Climate Change Questionnaire 2021 Friday, July 23, 2021
C1. Governance
C1.1
(C1.1) Is there board-level oversight of climate-related issues within your organization?
Yes
C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.
Position of | Please explain |
individual(s) | |
Chief Executive | The CEO is a Board Member and Chair of the IPL Decarbonisation and Energy |
Officer (CEO) | Transition (DET) Steering Committee, which comprises selected executives and |
other senior management. The CEO and the DET Steering Committee are | |
responsible for the development of the Company's Net Zero Pathway and the | |
strategic management of business risks and opportunities related to climate | |
change, including the incorporation of opportunities into business strategy. | |
During the reporting period, the CEO (and Board) set/approved IPL's first absolute | |
global GHG reduction target of 5% by 2026 against a 2020 baseline. | |
C1.1b
(C1.1b) Provide further details on the board's oversight of climate-related issues.
Frequency with | Governance | Please explain |
which climate- | mechanisms into | |
related issues | which climate-related | |
are a scheduled | issues are integrated | |
agenda item | ||
Scheduled - all | Reviewing and guiding | The IPL Climate Change Policy was adopted by the |
meetings | strategy | Board during 2019, and the IPL Board Charter and |
Reviewing and guiding | Charter of the Audit and Risk Management Committee | |
major plans of action | were updated to formally enshrine Directors' roles in | |
Reviewing and guiding | relation to the strategic management and oversight of | |
climate change-related issues. The Charter of the | ||
risk management | ||
Board states that the Board will: | ||
policies | ||
"(c) Review and approve, at least annually, Incitec | ||
Overseeing major | ||
Pivot's climate change management strategy, strategic | ||
capital expenditures, | ||
business opportunities and risks related to climate | ||
acquisitions and | ||
change, and potential targets and performance | ||
divestitures | ||
objectives". | ||
In addition, climate-related issues are integrated into | ||
'reviewing and guiding major plans of action' and | ||
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Incitec Pivot CDP Climate Change Questionnaire 2021 Friday, July 23, 2021
'decision making processes regarding major capital | ||
expenditures, acquisitions and divestitures'. This is | ||
due to both the nature of our markets (mining, quarry | ||
& construction and agriculture, which can be impacted | ||
by extreme weather events) and the nature of our | ||
main manufacturing process which requires long term | ||
access to both gas supply and large volumes of high | ||
quality fresh water (for cooling purposes), as well as | ||
the management of the physical impacts of extreme | ||
weather events. | ||
Due to the use of gas as a feedstock, the | ||
manufacturing process is also carbon intensive. For | ||
these reasons, investment decisions regarding long | ||
term capital projects consider an assessment of likely | ||
carbon regulation, changing market forces and market | ||
sentiment (which can influence regional gas and water | ||
supplies) and possible impacts on customer demand | ||
from either market changes or extreme weather | ||
events. | ||
Scheduled - some | Setting performance | Due to the significant proportion of energy cost in our |
meetings | objectives | manufacturing processes, energy efficiency/intensity |
Monitoring | (and therefore greenhouse gas emissions intensity) | |
implementation and | has been a major focus in our manufacturing | |
performance of | operations for many years. KPIs associated with | |
objectives | energy intensity are therefore integrated into our | |
Monitoring and | performance metrics at many levels of the | |
organisation. For example, see table on p. 32 of the | ||
overseeing progress | ||
IPL 2018 Annual Report, which summarises the | ||
against goals and | ||
Strategic Initiatives Condition component for the LTI | ||
targets for addressing | ||
2015/18, the LTI 2016/19 and the LTI 2017/20. These | ||
climate-related issues | ||
include an energy efficiency KPI and a manufacturing | ||
plant uptime KPI which support (and supported) the | ||
2017, 2018, 2019 and 2020 IPL global greenhouse | ||
gas intensity reduction targets, set against a 2015 | ||
baseline. (IPL's 2026 absolute reduction target is also | ||
linked to executive remuneration). | ||
Scheduled - some | Reviewing and guiding | The IPL Climate Change Policy was adopted by the |
meetings | risk management | Board during 2019, and the IPL Board Charter and |
policies | Charter of the Audit and Risk Management Committee | |
were updated to formally enshrine Directors' roles in | ||
relation to the strategic management and oversight of | ||
climate change-related issues, which are integrated | ||
into IPL's risk management processes and reported on | ||
in the Principal Risks section of the IPL Annual | ||
Reports. These included additional risks identified by a | ||
comprehensive risk and opportunity analysis | ||
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Incitec Pivot Limited published this content on 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 05:35:09 UTC.