PotashCorp Carbon Management Strategy

Our carbon strategy has been developed with three guiding principles: first, to ensure compliance with future regulations in the most effective manner; second, to protect the company’s reputation as an environmental steward; and third, to explore opportunities for generating revenue in new regulatory frameworks.

• Carbon Management Plan — After the carbon footprint was calculated for each facility, a management strategy was established to define possible emission reduction projects for our largest emission units and to outline possible future compliance responsibilities and opportunities.
• Reducing GHGs — PotashCorp monitors nitrous oxide (N₂O) emitted by our nitric acid plants so we can document emission performance. We are evaluating the installation of N₂O controls in these plants. We will install the controls first at our Geismar LA operation, reducing our company-wide greenhouse gas (GHG) emissions by more than 10 percent.
• Carbon Trading — PotashCorp is enrolled in the Chicago Climate Exchange (CCX) until the program ends in the fall of 2011. CCX members make a commitment to meet annual GHG emission reduction targets, which become more stringent each year. Companies that reduce below the targets can sell or bank surplus allowances; those that emit above the targets comply by purchasing carbon dioxide (CO₂) allowances from other CCX members. Our membership in CCX is part of a comprehensive plan to manage our greenhouse gases and be better prepared for future regulations. Since we have significantly reduced GHG emissions from CCX baseline levels (1998–2001), we are able to sell CO₂ equivalents on the CCX market.
• Task Force Participation — PotashCorp senior management is represented on the Climate Change Task Force for The Fertilizer Institute (US), the Canadian Fertilizer Institute (CFI) and the International Fertilizer Industry Association (IFA). Through these organizations, PotashCorp continues to monitor new and proposed GHG regulations to ensure we adhere to our guiding principles for climate change and that new rules are based on good science and protect food security.
• Next Steps — PotashCorp must continue to work with all stakeholders to address climate change. With only 3 percent of the Earth’s surface available for agriculture, we believe that high-yield farming and other best land use practices must be employed to ensure sustainable food production. Without high-yield farming, more of the world’s forests would have to be converted to farmland. The UN’s Intergovernmental Panel on Climate Change states that more than 380 million tonnes of greenhouse gases were added to the atmosphere in 2006 due to changing land for crop use.
  
  PotashCorp also supports the research of the International Plant Nutrition Institute (IPNI) to determine the science behind GHG emissions associated with different farming techniques.