Creating superior shareholder value is essential to ensure we can make plentiful possible for all our stakeholders. Strong and sustainable earnings growth – coupled with a premium valuation multiple – rewards our shareholders and, at the same time, allows us to focus on our broader social and environmental responsibilities. Our seven strategic priorities determine where we focus our efforts to create long-term value for all those associated with our business.

Our Long-Term Objective

Create superior shareholder value by:
Growing earnings and cash flow while minimizing volatility Protecting and enhancing a premium valuation multiple Maintaining the trust and support of our stakeholders
Financially, we prioritize earnings growth and investment opportunities in potash while complementing that business with other best-in-class assets.

For additional information on our sustainability performance, refer to our GRI content index.

Learn more

Portfolio and Return Optimization

Maximize returns for our assets and explore other value creation opportunities

  • Achieved
  • Not achieved
  • On track
  2016 2015 2014 2013 2012
Total shareholder return (TSR) vs peers
TSR vs. DAXglobal Agribusiness Index (DXAG)
Cash flow return (CFR) vs sector
  • Achieved
  • Not achieved
  • On track
Target Progress Discussion
Exceed TSR performance for our sector * and the DXAG
  • PotashCorp’s TSR of 12.4 percent exceeded the sector return of 7.6 percent due primarily to improving potash fundamentals in the second half of 2016.
  • Despite exceeding the sector return, our TSR was slightly below the DXAG return of 12.5 percent.
Exceed CFR 1 for our sector *
  • Our 2016 CFR of 5.5 percent was below the sector average, driven primarily by weaker cash flow generation.
Expand and further develop innovation teams for each nutrient
  • In 2016, we conducted an evaluation to benchmark our corporate innovation practices to best-in-class peers. We are internalizing what we’ve learned from the process as we seek to improve our approach to innovation and further develop our capabilities.
  • *Sector: weighted average (based on market capitalization) for Agrium, APC, CF Industries, ICL, Intrepid, K+S, Mosaic, SQM and Yara for most recent four fiscal quarters available
  • 1See reconciliation and description of this non-IFRS measure

Cash Flow Return1

(percentage)
Graph of Cash Flow Return<sup>1</sup>

Cash Flow Return1

(percentage)
Graph of Cash Flow Return<sup>1</sup>

Total Shareholder Return

(percentage - 2016)
Graph of Total Shareholder Return

Total Shareholder Return

(percentage - 2016)
Graph of Total Shareholder Return
  • Exceed TSR performance for our sector and the DXAG
  • Exceed CFR for our sector

Market-responsive potash approach

We produce to meet the needs of our customers as we believe this approach to the market provides the best opportunity to generate the greatest long-term value for our shareholders. In 2016, we responded to challenging market conditions by indefinitely suspending production at our Picadilly, New Brunswick operations and initiating operational changes at Cory. We also took temporary shutdowns at a number of our Saskatchewan operations to manage inventories during the year.

Nitrogen and phosphate optimization

We strive to allocate our production toward the combination of products that provides the greatest gross margin with the least volatility. In nitrogen, our focus is on industrial markets and ensuring that product can be reliably and competitively supplied under long-term contracts. In phosphate, we focus on specialized feed and industrial products and niche liquid fertilizers.

Merger of Equals with Agrium

During the third quarter of 2016, the company entered into an Arrangement Agreement with Agrium to combine businesses in the Proposed Transaction, which is designed to:

  • 1
    Bring together world-class nutrient production assets and retail distribution, providing an integrated platform with multiple paths for growth;
  • 2
    Create up to $500 million of annual run-rate operating synergies within 24 months of closing;
  • 3
    Enhance financial flexibility through the use of a strong balance sheet and improved cash flows, enabling the support of growth initiatives and shareholder returns; and
  • 4
    Leverage best-in-class leadership and governance through the combination of two experienced teams that are focused on creating long-term value.

During the fourth quarter, shareholders of both companies overwhelmingly approved the Proposed Transaction and the Ontario Superior Court of Justice issued a final order approving it.

From a regulatory standpoint, we continue to cooperate with the various enforcement agencies in their reviews. We have received clearances in Brazil and Russia, and continue to work on obtaining approval from China, India, Canada and the US.

Upon closing of the Proposed Transaction – which is anticipated mid-2017 – PotashCorp and Agrium will become indirect, wholly owned subsidiaries of a new parent company. PotashCorp shareholders will own approximately 52 percent of the new company and Agrium shareholders will own approximately 48 percent.


Operational Excellence

Improve our competitive position through reliability, productivity and flexibility

  • Achieved
  • Not achieved
  • In progress
  2016 2015 2014 2013 2012
  • “n/a” indicates no stated target in noted year
Potash per-tonne cash cost savings n/a n/a
Procurement savings n/a n/a n/a n/a
Ammonia reliability rate n/a n/a n/a n/a
  • Achieved
  • Not achieved
  • On track
Target Progress Discussion
Achieve potash cash cost savings of $20-$30 per tonne from 2013 levels by 2017 (excluding the impacts of foreign exchange and royalties)
  • We expect to achieve our target in 2017 as we ramp up our Rocanville expansion, which was completed in 2016.
Track procurement effectiveness and capture cumulative savings of $125 million from 2014 levels by the end of 2016
  • We have captured $213 million in cumulative procurement savings since 2014.
Achieve 96 percent operating rate 1 for all US nitrogen plants and 88 percent in Trinidad
  • Our ammonia reliability rate was 97 percent in the US and 94 percent in Trinidad for 2016.
  • 1The company has clarified that the target refers to ammonia reliability rate, its focus in the nitrogen segment. Operating rate is defined as actual production divided by capacity. Reliability rate is defined as actual production divided by capacity, less non-reliability downtime.

Potash Cost of Goods Sold

($ per tonne)
Graph of Potash Cost of Goods Sold

Potash Cost of Goods Sold

($ per tonne)
Graph of Potash Cost of Goods Sold

Ammonia Reliability Rates

(percentage – 2016)
Graph of Ammonia Reliability Rates

Ammonia Reliability Rates

(percentage – 2016)
Graph of Ammonia Reliability Rates
  • Achieve potash cash cost savings of $20-$30 per tonne from 2013 levels by 2017 (excluding foreign exchange and royalties)
  • Capture direct and indirect annualized procurement savings of $170 million from 2014 levels by the end of 2017
  • Achieve a 95 percent ammonia reliability rate for our nitrogen division

Optimizing potash production

Our cash cost of goods sold decreased compared to 2015 due primarily to the shift of production to our lower-cost Saskatchewan mines and the impact of foreign exchange, which more than offset closure-related costs at our Picadilly mine.

Capital expenditures under our multi-year potash expansion program are complete and Rocanville is in the final stages of ramp-up. It will provide additional low-cost production flexibility to meet future customer needs and allow us to increase our Canpotex allocation. We expect cash goods sold to decline further in 2017 as we source a greater proportion of production from Rocanville.

In 2017, we expect to have 10.1 million tonnes of operational capability, maintaining flexibility to meet demand should it exceed our current sales volumes estimate. With the ability to restart idled capacity if market conditions warrant, we believe we are best positioned to meet long-term growth in global demand.

Increasing efficiencies and productivity

In nitrogen, a key focus is to improve our cost position by achieving energy and labor efficiencies through innovation and process improvements. In phosphate, at our Aurora facility we continue to benefit from initiatives to lower rock mining costs and refine our mining and recovery techniques. Across all three nutrients, we are working to better share and standardize maintenance processes to strengthen the reliability of our operations.

In addition, we have transformed the way PotashCorp sources goods and services. Establishing a new center-led approach to procurement has enabled us to improve our supplier relationships, leverage our size and scale to generate significant cost savings, create connections to improve the way we operate and provide our operating sites with new capabilities. 

~$10
Estimated reduction in potash per-tonne cost of goods sold in 2017
(compared to 2016)


Customer & Market Development

Encourage product demand and support customer growth

  • Achieved
  • Not achieved
  • In progress
  2016 2015 2014 2013 2012
  • “n/a” indicates no stated target in noted year
Customer survey score
Enhance market development initiatives n/a n/a n/a
  • Achieved
  • Not achieved
  • On track
Target Progress Discussion
Outperform competitor groups on quality, reliability and service as measured by customer surveys
  • We outperformed our competitors in quality, reliability and service in 2016. Our average customer survey score was 89 percent compared to 72 percent for our peers.
  • Our sales team continued to rank higher than competitors in service and knowledge of products, customers and the industry.
Support development of existing and new markets with initiatives in education, sales and supply chain enhancements
  • Our sales and agronomy teams held 57 seminars in the US and international locations, communicating the benefits of our products and proper soil fertility.
  • Our eKonomics ROI calculator was named one of the top apps in CropLife’s list of ‘Agriculture apps that will help you farm smarter in 2017.’
Successfully integrate Hammond, Indiana distribution facility into our North American marketing strategy
  • In 2016, we completed construction of our Hammond distribution facility and we are using it to more efficiently deliver potash to our US customers.

25%
Reduction in net potash railcar transit time to the Chicago interchange due to our Hammond facility

Average Customer Survey Score VS Peers

(percentage – 2016)
Graph of Average Customer Survey Score VS Peers

Average Customer Survey Score VS Peers

(percentage – 2016)
Graph of Average Customer Survey Score VS Peers
  • Outperform competitor groups on quality, reliability and service as measured by customer surveys
  • Support development of existing and new markets with enhancements in education, sales and the supply chain

Encouraging potash consumption growth

We explore and invest in market development opportunities primarily through Canpotex and our membership in the International Plant Nutrition Institute to encourage consumption growth in places that have historically under-applied potash, such as Africa, China and India.

Optimizing potash infrastructure

In North America, we added 700 new railcars to our domestic potash fleet and now own approximately 3,000 custom-built high-capacity cars, which increases volumes per trainload. With construction of our regional distribution center in Hammond now complete, we can serve key markets in the US more efficiently.

Our offshore sales are made through Canpotex where our current sales allocation is 51.6 percent. This allocation is expected to grow in the second half of 2017 following the completion of our Rocanville capacity audit. Canpotex currently has export capability of approximately 19 million tonnes annually, which is projected to increase to 20 million tonnes with the expansion of its Portland terminal, expected to be complete in 2017.

Capitalizing on future nitrogen opportunities and maximizing returns

We seek opportunities to enter new market segments where we have a competitive advantage. We have been expanding in the diesel emission fluid (DEF) market, leveraging our ability to produce high-quality products in an area with strong demand. Our expanded Lima facility is expected to further enhance our ability to serve this profitable and growing market.

Evaluating new fertilizer products to meet customer needs

We continue to explore opportunities to differentiate our products in response to changing needs of our customers. In 2016, we evaluated opportunities to integrate new product offerings into our portfolio through investment and partnerships and are working to leverage such opportunities in 2017. 

eKonomics

Farmers value business analysis. Our user-friendly eKonomics website features concise summaries of the latest crop nutrition research, tips and tools for more productive soils, industry news, commodity futures prices, rainfall data, as well as our Nutrient ROI Calculator and Nationwide Nutrient Balance Analysis - both industry firsts exclusive to PotashCorp.


Stakeholder Communications & Engagement

Earn stakeholder trust through strong communications and engagement

  • Achieved
  • Not achieved
  • In progress
  2016 2015 2014 2013 2012
  • “n/a” indicates no stated target in noted year
Community investment
Community survey score
Shareholder survey score n/a n/a n/a n/a
  • Achieved
  • Not achieved
  • On track
Target Progress Discussion
Invest 1 percent of consolidated income before income taxes (on a five-year rolling average) in community initiatives
  • We invested $15 million in community initiatives, representing more than 1 percent of 2016 pre-tax income, but fell short of our five-year rolling average target after realigning our spending with current market conditions during the year.
  • We refined our community investment objectives to better match our business priorities of community building, education and training, and food solutions.
Achieve 4 (performing well) out of 5 on surveys of community leaders
  • We achieved an average score of 4.2 out of 5 among surveyed communities.
  • Our communities continue to acknowledge us as a key contributor to their local economies and appreciate our commitment to employment, safety and environmental stewardship.
Achieve rating on third-party annual shareholder survey that exceeds 2015 results for quality of communications
  • We achieved an average score of 8 out of 10 on quality of communications with the investment community, an improvement from our 2015 results.
  • 83 percent of respondents rated our communications on par with or better than other best-practice companies.

8
Quality of shareholder communications as determined by 2016 annual survey
(average score out of 10)

Average Community Survey Score

(score out of 5)
Graph of Average Community Survey Score

Average Community Survey Score

(score out of 5)
Graph of Average Community Survey Score
  • Achieve 4 (performing well) out of 5 on surveys of community leaders
  • Outperform competitor group on quality of communications and responsiveness as measured by investor surveys

Building relationships with our communities

Our stakeholders are critical to our long-term success, and we support them by improving the quality of life in our communities. In 2016, we continued our support of school nutrition programs, food banks, our Trinidad Model Farm and other initiatives related to food security. We also supported a number of Aboriginal initiatives, community-building events and funded scholarships that help develop the workforce of the future.

Engaging with our shareholders

Each year we engage a third party to survey a sample of current and potential shareholders to gain additional insight into perceptions of our company, industry and quality of communications. While we proactively ask for feedback over the course of the year, this annual process allows us to formally benchmark shareholder perceptions so we can address their concerns and improve our performance. We monitor changes over time and ensure investor views are communicated to our management team and the Board.

In 2016, we also asked shareholders to rank key topics in all seven of our strategic priorities to better understand what is most important to them. This information will be combined with similar input from other key stakeholders to give us a holistic picture of what matters most to those who depend on our company, allowing us to improve our communicaitons and reporting.

Partnering with our suppliers

We continue to explore opportunities to connect with our suppliers in new and meaningful ways. This helps us improve performance while focusing on safety, the environment and our other core values.

Our procurement strategy is strongly aligned with our diversity and inclusion objectives. We have an initial objective to allocate 30 percent of our local purchasing in Canada to Aboriginal suppliers by 2020.

$9M
Invested annually in food security-related initiatives
(3-year average)


People Development

Attract, develop and retain engaged employees 

  • Achieved
  • Not achieved
  • In progress
  2016 2015 2014 2013 2012
  • “n/a” indicates no stated target in noted year
Employee engagement score n/a n/a
Annual employee turnover rate n/a n/a
Implement Diversity and Inclusion Policy n/a n/a n/a
  • Achieved
  • Not achieved
  • On track
Target Progress Discussion
Achieve an average employee engagement score of 75 percent on the company-wide biennial survey
  • We achieved our target with an average employee engagement score of 75 percent on our 2016 survey, which represents a 12 percent increase from our 2014 results.
  • We have made strides over the past two years to improve our internal communications and will review our 2016 results to look for areas of further improvement.
Maintain an annual employee turnover rate of 5 percent or less
  • Our 2016 annual employee turnover was 3 percent, which demonstrates that our employees value working at PotashCorp.
Implement Diversity and Inclusion Policy through training and communication initiatives
  • In 2016, we began advancing our diversity and inclusion priorities through focused communication and training initiatives, and we will continue our work in this area.

12%
Increase in company-wide employee engagement score
(compared to 2014)

Employee Turnover Rate

(percentage)
Graph of Employee Turnover Rate

Employee Turnover Rate

(percentage)
Graph of Employee Turnover Rate
  • Have 95 percent of salaried staff submit and review business goals and individual development plans through our new performance management process
  • Maintain an annual employee turnover rate of 5 percent or less
  • Achieve progress toward our diversity priorities of increasing the representation of women in management to 25 percent or more by 2025 and becoming representative of Aboriginal people in our Canadian operations by 2020

Managing performance

In 2016, we designed and implemented a new global performance management process, along with a supporting talent management system. This will help us design performance plans for our staff employees, including business goals and an individual development plan, by the end of 2017. Our goal is to provide clarity for performance and behavioral expectations, with an increased focus on coaching and guided development to support employee growth.

Enhancing employee communications

Based on feedback from our employees, we have taken steps to enhance our internal communications. This includes keeping employees informed of events and changes in our company in a timely and interactive manner through in-person meetings, videos and written communications. We also provide employees with updates on performance, development and compensation.

Growing our diverse workforce

We recognize that having a diverse workforce enhances our organizational strength and better reflects our stakeholders. In 2016, we adopted our global Diversity and Inclusion Policy, which includes long-term initiatives to increase representation of women in management across our operations and increase the representation of Aboriginal people in all our Canadian operations. 

Developing our employees

In 2016, PotashCorp introduced a new global leadership development framework so employees at all levels could develop skills in this area. Activities include formal learning opportunities, such as classroom training and development, along with self-directed learning, which allows employees to take ownership of their own professional development.

22%
Increase in management positions held by women
(compared to 2015)


Good Governance

Foster a culture of accountability, fairness and transparency

  • Achieved
  • Not achieved
  • In progress
  2016 2015 2014 2013 2012
  • “n/a” indicates no stated target in noted year
Top quartile of governance practices n/a n/a
  • Achieved
  • Not achieved
  • On track
Target Progress Discussion
Remain in the top quartile of governance practices as measured by external reviews
  • We ranked in the top quartile of governance practices in The Globe and Mail’s annual Board Games.
  • Our governance practices were highly ranked by the Dow Jones Sustainability Index (DJSI) and the FTSE4Good Index.
  • Our 2015 Annual Integrated Report was ranked fifth globally by reportwatch.com and received the Award of Excellence in Financial Reporting from CPA Canada.

2015 Annual Integrated Report ranked fifth in the world

Corporate Governance Rating

(out of 100)
Graph of Corporate Governance Rating

Corporate Governance Rating

(out of 100)
Graph of Corporate Governance Rating
  • Remain in the top quartile of governance practices as measured by external reviews

Leading governance practices

Our governance score from our 2016 RobecoSAM Corporate Sustainability Assessment far exceeded both the average for our industry and the average score of Dow Jones Sustainability World Index members, a best-in-class benchmark representing approximately 250 of the top companies globally. The areas where we are most progressive are related to Board composition, diversity and disclosure.

Focusing on Board composition and education

The PotashCorp Board and management team bring a broad range of complementary skills and perspectives that allow us to better identify areas of value creation and potential challenges. To ensure our Board members have the best information available to them regarding our company and industry, we provide and support internal and external education opportunities.

We value diversity and believe it enhances our organization by bringing new perspectives and skills. In 2016, women represented 31 percent of our Board and 20 percent of our management positions. To further our efforts in this area, we adopted a company-wide Diversity and Inclusion Policy in 2016 with the aim of developing a more representative workforce, including enhancing female and Indigenous representation across our organization.

Aligning compensation with stakeholder interests

To ensure alignment with the interests of shareholders, our Board members are required to own shares or deferred share units (DSUs) with a value equal to at least five times their annual retainer. We believe an ownership mentality is important for management as well, and have a similar stipulation for our executives – with higher share ownership requirements for more senior roles – including our CEO, whose requirement is five times base salary. 

Learn more

93
Score (out of 100) on The Globe and Mail's annual Board Games


Safety, Health & Environmental Excellence

Be relentless in pursuit of the safety of our people and protection of the environment

  • Achieved
  • Not achieved
  • In progress
  2016 2015 2014 2013 2012
  • “n/a” indicates no stated target in noted year
Life-altering injuries at our sites
Total recordable injury rate
Total lost-time injury rate n/a n/a n/a
Greenhouse gas emissions per tonne of nitrogen product
Environmental incidents
Water consumption per tonne of phosphate product n/a

Safety Performance

  • Achieved
  • Not achieved
  • On track
Target Progress Discussion
  • *Simple average based on the most recent publicly available data from a sample of 18 leading global resource companies
Achieve zero life-altering injuries at our sites
  • There were no life-altering injuries at any of our sites in 2016. As safety is our top priority, we continue to increase our efforts to prevent serious injuries and fatalities (SIF) at our sites so our employees and contractors can return home safe every day.
Reduce total recordable injury rate to 0.85 (or lower) and total lost-time injury rate to 0.09 (or lower)
  • Our total recordable injury rate was 0.87. Although we narrowly missed our target, the rate decreased 14 percent from 2015 and is our lowest on record.
  • We achieved our total lost-time injury rate target with a rate of 0.08, our second-lowest on record.
  • During the year we focused on four key priorities: leadership training, SIF prevention, pre-job hazard assessments and work pausing.
By 2018, become one of the safest resource companies in the world by achieving recordable injury and lost-time injury rates in the lowest quartile of a best-in-class peer group *
  • We continue to achieve improvements in our total recordable injury rate while our total lost-time injury rate is one of the lowest in the industry.
  • While we maintain our overarching objective to be one of the safest resource companies in the world, our primary focus going forward will be on SIF prevention, with targets aimed at continually improving our injury rates and avoiding life-altering injuries.

PotashCorp's Safety Performance

 
Graph of PotashCorp's Safety Performance

PotashCorp's Safety Performance

 
Graph of PotashCorp's Safety Performance

Safety Performance vs Peers

 
Graph of Safety Performance vs Peers

Safety Performance vs Peers

 
Graph of Safety Performance vs Peers

Environmental Performance

  • Achieved
  • Not achieved
  • On track
Target Progress Discussion
By 2018, reduce GHG emissions per tonne of nitrogen product by 5 percent from 2014 levels
  • Our GHG emissions per tonne of nitrogen product decreased by 13 percent compared to 2014 levels. This was mainly a result of enhanced emission control at our largest nitric acid plant and more CO2 sold as product and consumed in urea production.
By 2018, reduce environmental incidents by 40 percent from 2014 levels
  • In 2016 we had 18 incidents, a 25 percent decrease from 2014 levels. With our continued focus on identifying and implementing best practices, we believe we are on track to meet our 2018 target.
By 2018, reduce water consumption per tonne of phosphate product by 10 percent from 2014 levels
  • Our water consumption increased by 23 percent compared to 2014 levels, mainly as a result of a drought at our White Springs facility, which recycles rainwater for use in operations. Although our water consumption increased from 2014 levels, we expect to meet our target due to reductions from our Eagle Creek water recycling project at White Springs, which became operational in the fourth quarter of 2016.

Greenhouse Gas Emissions

(CO2 equivalent tonnes per nitrogen product tonne)
Graph of Greenhouse Gas Emissions

Greenhouse Gas Emissions

(CO2 equivalent tonnes per nitrogen product tonne)
Graph of Greenhouse Gas Emissions

Environmental Incidents

(number of incidents)
Graph of Environmental Incidents

Environmental Incidents

(number of incidents)
Graph of Environmental Incidents

Safety

  • Achieve zero life-altering injuries at our sites
  • Reduce total recordable injury rate to 0.75 or lower
  • Reduce total lost-time injury rate to 0.07 or lower

Environmental

  • By 2018, reduce GHG emissions per tonne of nitrogen product by 5 percent from 2014 levels
  • By 2018, reduce environmental incidents by 40 percent from 2014 levels
  • By 2018, reduce water consumption per tonne of phosphate product by 10 percent from 2014 levels

Safety

Driving change on serious injuries and fatalities

To ensure our safety program remains best-in-class, we introduced an enhanced SIF prevention program focused on proactive and reactive processes. Our reactive prevention program helps ensure that in-depth investigations are performed on all potential SIF incidents and that the strongest possible controls are put in place to prevent them from recurring. Our proactive prevention program is focused on discovering potential occurrences in routine work and mitigating them before something happens.

While our aim is preventing all injuries, no matter how minor, we are increasingly focused on SIF prevention.

Highlighting the “H” in SH&E

In 2016, we undertook an initiative to enhance our corporate health and wellness program, which included reviewing health and wellness best practices at our sites for inclusion in our program. We also established a corporate steering committee and increased education through our new health and wellness website for employees and their families.

Coaching for safety engagement

A cornerstone of our safety program and one of our four key safety priorities is leadership. For our safety culture to evolve, we have to influence what happens at the worker level – where the majority of our safety exposures exist. We recognize that front-line supervisors have the largest influence on what happens at this critical grassroots level. Our objective is to enable each front-line supervisor in our company to become an expert in safety engagement.

We are proud that this program won the Queen’s University Industrial Relations Center Professional Development Award at the 2016 Canadian HR Awards.

Learn more

33%
Decrease in our total recordable injury rate
(since 2012)


Environmental

Reducing our environmental impact

To ensure we are minimizing our environmental impact, we have increased our focus on engaging employees in four key environmental priorities. These are identifying and mitigating environmental hazards before every job, regularly stopping during jobs to check for new or missed environmental hazards, identifying and eliminating significant environmental hazards, and focused environmental leadership.

Elevating our environmental practices

We continue to identify, communicate and implement best practices at all our sites. We have developed and are implementing a series of environmental leading indicators to measure our current practices, with the goal of reducing our reportable environmental incidents. These indicators will focus on environmental professionals’ time in the field and environmental incident root-cause corrective actions.

Auditing and site assessments

To affirm our environmental excellence and compliance with regulatory requirements, we regularly conduct site assessments and audits of our operations. During the year, we developed an enhanced auditing program that will be used consistently at all our operating sites. This program will provide us with a better understanding of the severity of audit findings so we can improve environmental performance. Further, we have independent third-party environmental audits conducted biennially at each of our sites.

Reducing serious environmental incidents

We currently report our environmental incidents based on regulatory reporting requirements regardless of the nature or severity of the incident. While we want to prevent all environmental incidents, no matter how minor, our focus is increasingly on preventing serious incidents. We are developing an internal severity and consequences classification matrix to assist in classifying our reportable incidents. We are developing an internal severity and consequences classification matrix to assist in classifying our reportable incidents.

91%
Water recycled company-wide in 2016
(compared to total water use)