Stakeholder engagement is key to building mutually beneficial relationships that help us achieve our organizational goals and move us toward our vision. Our major stakeholders are employees, customers, investors, suppliers, regulators and the communities where we operate.

How PotashCorp Engages Stakeholders

Stakeholder Engagement Highlights – 2008

Customers

Surveys conducted in mid-2008 revealed that industry-wide availability of fertilizer supply was an ongoing concern for customers. Rising nutrient prices were also of concern, with many customers identifying the emergence of biofuels as a cause of rising prices.

All customer groups rated service as very important, particularly in matters related to supply reliability. Across all four sales groups, PotashCorp was rated significantly higher than all competitors in providing market information and communication.

Feedback

Our Fertilizer group:

• Finished first in product quality ratings;
• Was judged to have the most reliable long-term supply by a margin ranging from 9 percent to 38 percent;
• Was considered to be the most reliable supplier by 60 percent of customers – more than all other companies combined (reliable supply was considered an important issue for 93 percent of customers).

Our Feed group:

• Tied for first in credit policies and ranked second in pricing, with the gaps continuing to narrow in pricing;
• Finished first in product quality and reliability of supply, beating competitors by a minimum of 8 percent.

Our Industrial group:

• Ranked below primary competitors in pricing and credit policies;
• Ranked 1 percent below competitors in product quality and supply reliability;
• Ranked first in all areas surveyed for sales representatives.

Our Purified Acid group:

• Rated 19 percent higher than competitors in reliability of supply, which 72 percent of customers considered an important criterion;
• Rated slightly lower than competitors on product quality, pricing and credit policies.

Company actions taken in response to feedback

We:

• Continued to expand capacity in potash to address supply reliability issues;
• Worked with customers to increase the number of warehouses from 150 to 172 across North America, which enables customers to secure and store supply;
• Continued to offer 24/7 customer service and to train service agents to maintain quality standards.

Investors

In pursuit of our goal of maximizing shareholder value, we strive for excellence in investor engagement. In addition to our annual survey of buy-side and sell-side analysts, the investor relations team:

• Hosted 498 in-person investor/analyst meetings, up 43 percent from 2007;
• Met with more than 90 percent of shareholders who own more than 1 percent of shares;
• Attended 11 sell-side conferences;
• Hosted an analyst meeting in London (UK);
• Met with 101 investors in Saskatoon and Northbrook;
• Hosted 12 mine tours.

Quarterly conference calls to discuss financial performance attracted an average of 2,100 participants, triple the average in 2007, while page views on Potashcorp.com reached nearly 10 million for the year, up 73 percent from 2007.

Feedback

Investors considered a decline in potash demand or deferral in potash purchasing caused by rapidly rising potash prices the primary concern in the first eight months of 2008. They also questioned the effect of lower crop prices on nutrient demand for potash, phosphate and nitrogen.

Investor concerns shifted in the last four months of 2008 as fertilizer buyers conserved cash in response to global economic uncertainty. Investors questioned whether potash prices would fall as phosphate and nitrogen prices had, whether global food consumption would decline, whether grain prices would hold above historical averages and whether supply/demand would remain tight for all three nutrient businesses.

Through surveys in 2008, we also affirmed that investors:

• See potash as the key driver of our long-term growth;
• Consider adding potash capacity the best use of our cash flow;
• Consider the agriculture sector attractive despite challenging near-term market conditions;
• See PotashCorp as an undervalued, must-own, multi-year investment;
• Are confident of management’s ability to create long-term shareholder value;
• Value our communication efforts, describing us as responsive, transparent and consistent in our messaging.

Communities

Site Specific Activities

Each of our sites participates in a myriad of activities which are summarized in the Facilities section.

Donations

We donated $6.6 million in 2008. To learn more about corporate donations and totals, see Charitable Donations.

Meetings

We hold regular community meetings to build strong relationships and better understand and respond to concerns. We participated in or conducted 369 meetings in 2008.

Surveys

Community leaders at Lima, Marseilles and Weeping Water completed surveys in 2008 to help us measure perceptions of our community involvement, our business practices (specifically in the areas of safety, health and environment) and our impact on local economies. Sites were given an overall grade on a scale from 1 (not performing well) to 5 (performing very well).

• Lima – Score: 3.7
  Findings: We assumed control of our operations from INEOS in January 2008. The survey helped us evaluate the needs of the community as new operators of the site. The community wants increased communications from the site, and we are creating a community communication plan to address this concern. We have become more involved with organizations since the survey, including the Allen County 4H program, United Way Campaign for Success, Big Brothers/Big Sisters of Allen County and the Ottawa River Coalition. The survey also indicated the site’s importance to the community. PotashCorp was praised for assuming operating responsibility at Lima from INEOS, and we are seen as a positive force for economic development.
• Marseilles – Score: 4.1
  Findings: PotashCorp scored lowest on how the site communicates with the community. In response, Marseilles intends to distribute more sustainability brochures, broadcast more radio spots, sponsor more local school sporting events and host an open house for its new LEED building. Marseilles scored well on business success and safety, health and environmental performance. PotashCorp scored highest on the hypothetical question related to expansions. Jobs and economic activity provided are seen as important.
• Weeping Water – Score: 4.2
  Findings: PotashCorp scored lowest on how the site communicates with the community. In response, Weeping Water will do a better job of promoting volunteer activities within the community to raise awareness. It organized a local coloring contest for children, which was covered by the local newspaper. Weeping Water will continue to offer a mine tour, an annual event attended by 250-300 people. It will also have a booth at the local fair with videos and prizes. PotashCorp’s highest rating came in response to a question about the company’s importance to the community. The site also scored high on questions about safety, health and environmental performance. There were several positive comments about its reduction in dust emissions.

Community Engagement by PotashCorp’s Operating Sites 2008

Trinidad Community Projects

After learning from a 2006 Community Leaders Survey that the people of Trinidad and Tobago were receptive to the idea of PotashCorp taking a leadership role in the community – particularly in agriculture – we began planning what would become the PCS Model Farm and Agricultural Resource Centre. The project provides local farmers with free training in state-of-the-art agricultural management practices and technology.

Community Sustainability Reports

Each year, we issue site-specific sustainability brochures that detail our operations to local communities. These include information on safety and environmental performance, community initiatives and local spending.

Responding to Community Concerns

We responded to a number of issues raised by communities in 2008:

• Aurora – The Pamlico Tar River Foundation and other non-governmental organizations opposed our mine permit.
  We maintain dialogue with the foundation and provide it with accurate information.
• Geismar – There was a release of oleum (fuming sulfuric acid).
  Authorities in the area issued a recommendation for residents to stay in their homes or places designated as safe shelters during the event. We quickly stopped the release.
• Trinidad – Community concerns about odor, noise, emergency response and environmental impact were expressed.
  We met with members of the community through the Community Awareness and Emergency Response organization for Trinidad and Tobago. We also have a 24-hour emission complaint telephone line and provide the only emergency response truck and trailer in the industrial complex where our plant is located.
  The facility continues to dialogue with the community through the Trinidad and Tobago Chamber of Industry and Commerce, the American Chamber of Commerce and the Point Lisas Energy Association of CEOs.
• New Brunswick – Local residents and a community leader expressed concern about the proposed construction of a brine pipeline from the site to our Cassidy Lake facility.
  We held public meetings about public concerns and communicated directly with the individuals.
  Some residents experienced well water problems in Penobsquis.
  Residents were unhappy about delays in bringing in piped water and raised health concerns over the condition of their temporary water systems. The province completed construction of a new regional pipeline to residents, and was beginning to hook residents up to the new water supply in May 2009. Although there is no conclusive evidence that PotashCorp operations had any impact on the aquifer, we have contributed $1.2 million towards construction of the water pipeline system and continue to pay the cost of supplying drinking water to residents who have lost wells.

Employees

Approximately 1,600 PotashCorp employees responded to 10 engagement questions and other organization culture questions. While specific responses varied by location and group, some trends emerged:

• The company scored highest in the areas of job knowledge and customer satisfaction
• Results indicated room for improvement in internal communications and job growth
• Engagement ratings improved in almost all areas in 2008 compared to 2006

We then held focus group sessions for employees, conducted by a qualified third party. The results of the survey were discussed and employees relayed their opinions about areas where the company is doing well and areas where improvement is needed. Participating site managers developed action plans to address feedback received.

Political Engagement

Public policy issues addressed or monitored in 2008 included:

• Proposed Climate Change Legislation – Through industry organizations, The Fertilizer Institute and Canadian Fertilizer Institute, we tracked how legislators want to address climate change and analyzed legislation drafts to determine how our industry and commercial fertilizer use would be impacted.
• Proposed Rules Related to the Transportation of Hazardous Materials – PotashCorp testified before the US Department of Transportation (DOT) regarding new regulations for transporting hazardous materials. Final rules were issued on December 30, 2008.

Aboriginal Communities

Having good relations with Aboriginal communities is important to our company, both because they are valued members of our community and because their success will help us to grow.

As we expand operations in Saskatchewan and New Brunswick, we look for ways to deepen our partnership with Aboriginal groups, increase Aboriginal representation in our company and look for targeted, sustainable ways to contribute to Aboriginal education and socio-economic development.

In 2008, we:

• Increased our exposure within the Aboriginal community and continued to develop relationships with key leaders;
• Participated in career fairs aimed at Aboriginal students in post-secondary institutions and attended a two-day interactive workshop designed to promote and coordinate the education, training and hiring of Aboriginal people in the community;
• Introduced scholarships totaling CDN $22,000 per year for Aboriginal students at the Saskatchewan Indian Institute of Technology (SIIT), the Saskatchewan Institute of Applied Science and Technology (SIAST) and the University of Saskatchewan;
• Met with Aboriginal leaders in New Brunswick to discuss purchasing and employment opportunities resulting from expansion projects;
• Encouraged significant contractors to consider hiring Aboriginal sub-contractors and employees.