The Importance of Environmental Sustainability

PotashCorp's commitment to the environment reduces risk, enhances its reputation and in some cases improves operational efficiency and lowers costs while strengthening facility performance.

Environmental Policy Commitments

The company's long-term goal is no damage to the environment from its operations, as stated in its Safety, Health and Environment (SHE) Policy. It aims to achieve this goal by continuing to reduce waste, emissions and discharges, and by using energy efficiently.

The SHE Policy sets out these commitments and expectations with respect to energy, water, biodiversity and wastes:

• PotashCorp aims to lessen the environmental impacts of its operations by using energy efficiently and minimizing its use.
• Facilities are designed, built and operated to minimize air emissions, water discharges and overall impact on the environment, while meeting federal, state/provincial and local regulatory requirements.
• Facilities are designed, built and operated to maximize recycled and reused water in its operations.
• Facilities are operated and maintained to minimize impacts associated with emissions and effluents. Comprehensive waste management programs ensure that wastes are minimized, reused, recycled or disposed of properly.

Environmental Management Systems

A special management framework supports the planning, implementation and review of PotashCorp's environmental programs.

Performance Expectations: This SHE management system sets out 88 performance expectations integrated into 13 elements of accountability. It is designed to help managers focus on critical needs, forecast and allocate resources, set direction for activities and consistently improve safety, health and environmental performance.

Accountability: Accountability rests with facility or location leaders, who put appropriate systems and processes in place and ensure continuing progress towards the company's long-term SHE goals and annual SHE targets.

Training: Ongoing employee training supports the implementation and operation of the SHE management system. Procedures have been developed for suppliers and contractors, and emergency plans are regularly tested.

Corrective Action: Incidents are reported, investigated and analyzed to prevent recurrence and improve performance. Investigations focus on root causes and/or system failures. Corrective actions and preventive measures are taken to reduce or eliminate the likelihood of future incidents.

Assessments and Audits: Annual reviews take place at all operating sites. Sites undergo internal and external audits that assess regulatory permits and review key internal controls and best practices.

Reporting: The SHE Policy commits PotashCorp to reporting progress and planned activities. This update is integrated into this annual Sustainability Report.

Management Responsibility for Environmental Performance

The Chief Operating Officer and Vice President, Safety, Health and Environment oversee the consistent application of SHE Policy and expectations in all operations.

Leaders at all levels are responsible for engaging the workforce and meeting PotashCorp's SHE goals and objectives.

Facility or site leaders are responsible for putting appropriate systems and processes in place for each SHE expectation, for ensuring continuing progress toward SHE goals, for meeting annual targets and for confirming the effectiveness of these processes through the SHE assessment system.

PotashCorp's CEO and Board of Directors are regularly assured of effective implementation of the SHE commitment and expectations. Along with requisite external corporate SHE assessments, each facility assesses itself routinely against these expectations.

Key internal controls are periodically reviewed through environmental assessments and compliance audits, which are then examined by the board's safety, health and environment committee.