Material Stewardship

MM11

Programs and Progress Relating to Materials Stewardship

Mosaic has established programs that address materials stewardship elements. Most recently, Mosaic participated in the certification process for the International Fertilizer Association’s (IFA) Protect & Sustain Product Stewardship program, beginning with a single production facility. Mosaic received the Product Steward Excellence rating and is addressing improvement recommendation items identified by the third-party assessor, specifically tying together existing risk assessments and closing gaps to assemble a risk assessment across the products/materials life-cycle.

This assessment covered communications, EHS reviews, and collaboration with regulators, NGOs, trade associations, researchers, and business partners to address EHS, security, efficiency and sustainable practices. Communications are directed up and down the value chain, such as Supplier Certification requirements as part of sourcing and procurement of inputs, (Material) Safety Data Sheets (M/SDS), labels, registrations, quality/traceability information, training and educational materials. Mosaic’s R&D processes include internal and external research and science-based data generation to advance product advocacy and customer results. Finally, process improvements include ISO 14001/OHSAS 18001 certification and EHS management system (EHSMS) processes, enterprise mechanical integrity programs and contractor accountability programs.

Mosaic’s phosphate is among the most responsibly sourced in the world, and we're committed to the sustainable production and use of our products. Crop nutrients must be applied sustainably to mitigate potentially negative environmental impacts stemming from improper use. Among industry organizations to which we belong and the farmers who use our products, we encourage the adoption of the 4Rs of nutrient stewardship: Right source, Right rate, Right time and Right place.

Customer Health and Safety

PR1

Life-Cycle Stages in Which Health and Safety Impacts of Products and Services Are Assessed for Improvement

Mosaic’s principal products are crop nutrients that we continually evaluate and monitor for quality, effectiveness and compliance. Our quality policy states that our intent is to lead the industry in delivering a superior quality experience for our customers, stakeholders, neighbors and environment. Mosaic is committed to supplying high-quality products that meet or exceed customer expectations. Our process for developing such products is driven by sharing best practices, innovation and partnering with our customers to excel in the global marketplace. Mosaic’s Environmental, Health & Safety (EHS) policy stresses commitment to protect the environment and health and safety of employees, contractors, customers, and communities as we conduct our business activities. It is manifested in multifaceted risk identification and reduction/elimination processes. As our business activities traverse the product life cycle – from sourcing and R&D to manufacturing, supply-chain, and point-of-use advising – these health and safety practices also apply the product life-cycle.

Mosaic complies with industry standards and regulations issued by various nongovernmental and governmental organizations that set policies and standards. Mosaic ensures that our products are continuously monitored to ensure regulatory compliance and are reviewed for health and safety impacts to identify opportunities for improvement. Mosaic promotes use of TFI’s Bulk Blend Manual and Bulk Blend Workshops that include health, safety and environmental educational segments. The Association of American Plant Food Control Officials (AAPFCO) is a body representing state fertilizer control officials; Mosaic complies with their policies and programs regarding proper labeling, health, safety and environmental communication to users.

Mosaic facilities meet Customs-Trade Partnership Against Terrorism (C-TPAT) certifications. C-TPAT improves overall international supply chain and U.S. border security, and is widely recognized as one of the most effective means of providing the highest level of cargo security. Based on the United Nations Globally Harmonized System for Classification and Labeling of Chemicals (UN GHS), we certify that our internationally shipped products are not harmful to the marine environment (non-HME) as recognized by the International Convention for the Prevention of Pollution from Ships.

Mosaic’s animal feed ingredients require a heightened level of attention to health and safety. We have adopted a relevant stringent product safety policy. It is Mosaic’s policy that our products be manufactured, stored and delivered to our customers in a manner complying with all applicable regulatory programs and industry best practices. In addition, Mosaic complies with the Food and Drug Administration (FDA) Regulation 21 CFR 589.2000, “Animal Proteins Prohibited in Ruminant Feed,” to protect the feed and animal industries as well as consumers.

Our Animal Feed monitoring programs are based on principles of Quality Assurance Management using Hazard Analysis & Critical Control Points (HACCP) and meet United States Department of Agriculture (USDA), Canadian Food Inspection Agency (CFIA), FDA and state regulations. These principles assure production, management, handling and delivery of our products to minimize tampering or other actions impacting their quality and safety. Our warehouses and production facilities handling animal feeds are certified Safe Feed/Safe Food by the American Feed Industry Association (AFIA).

New product development follows the Stage-Gate^® Business System Product Innovation System process. Mosaic has customized the system to include specific EHS review prompts for innovators to engage with EHS professionals as the project progresses and to include future life-cycle stages in these reviews. We currently have over 20 potential products in various stages of this process.

Mosaic has implemented an EHS Management System (EHSMS), specifically focused at the manufacturing stage of the life cycle, but whose benefits extend across activities for all life cycle stages. As examples, Mosaic’s supplier certification and chemical review and data management processes assure inputs and raw materials are evaluated for health and safety impacts for our customers as well as Mosaic employees and the environment. Mosaic self-audits for EHS elements across its business activities and is assessed by various third parties. Mosaic received International Fertilizer Association (IFA) Product Steward Excellence rating at its inaugural site evaluation. These include systems to maintain integrity and provide for recovery of intermediates and products for their successful re-processing, reuse or recycling. As well, these practices and assessments address proper disposal.

PR2

Incidents of Noncompliance With Regulations and Voluntary Codes Concerning the Health and Safety Impacts of Products and Services During Their Life Cycles

Mosaic has automated systems to manage, track and monitor incidents related to the health and safety impacts of products and services. Mosaic had no significant reported incidents of noncompliance with regulations or voluntary codes concerning the health and safety impacts of our products and services.

Product and Service Labeling

PR3

Product and Service Information Required

Mosaic sells and distributes fertilizer, animal feed and industrial products in many countries around the world. Mosaic complies with all safety, environmental, labeling and registration requirements of the local governments. In addition, where U.S. standards are more stringent, we follow those more rigorous standards on the products that we produce both in the United States and for export.

Mosaic provides the required country, state and local product documentation for all shipments. This includes detailed labels, data specification sheets and a Safety Data Sheet (SDS) for all products. These documents provide information about proper product handling, safety precautions and guaranteed analysis. Situations requiring disposal are also addressed in the SDS. For product undergoing vessel transport, the SDS includes certification that the discharge of cargo hold rinsate is not harmful to the marine environment. Though not addressed in typical labeling, Mosaic promotes customer education following the 4R principles of Nutrient Stewardship (4Rs): the Right product, applied at the Right rate, at the Right time and at the Right place. Mosaic agronomists share this message worldwide.

PR4

Total Number of Incidents of Noncompliance With Regulations and Voluntary Codes Concerning Product and Service Information and Labeling

Mosaic has automated systems to manage, track and monitor incidents related to noncompliance with regulations and voluntary codes concerning product and service information and labeling. Mosaic had no significant incidents of noncompliance with regulations or voluntary codes concerning labeling of our products and material services.

PR5

Practices Related to Customer Satisfaction, Including Results of Surveys Measuring Customer Satisfaction

At Mosaic, customer satisfaction and loyalty are paramount to sustaining and growing our world-class organization. On an annual basis, we adhere to a trusted feedback methodology to measure satisfaction levels of our crop nutrition, animal feed and industrial businesses. This global feedback system also allows us to monitor recent performance and to identify which performance factors likely have the biggest impact on customer loyalty, either positively or negatively.

We use the same methodology to better understand customer satisfaction throughout Mosaic’s global operations. The survey results are shared with our customer service team, as well as with our key customers around the world. In 2013, Mosaic earned a score of 8 on a scale of 0 to 10. This score is described as “Quite Satisfied.”

Our key customer loyalty metric – Net Promoter Score (NPS) – is a standard index across a variety of industries around the world. We use this metric to benchmark our results against others’, allowing us to identify and target areas that are opportunities for improvement. Year over year, we work to improve our performance by providing quality products and ensuring on-time delivery and logistical support. In 2013, Mosaic earned an NPS score of almost 50%. A 50% score is widely considered to be the threshold NPS for high performing companies.

Marketing Communications

PR6

Programs for Adherence to Laws, Standards and Voluntary Codes Related to Marketing Communications, Including Advertising, Promotion and Sponsorship

Mosaic adheres to a cross-functional review process for all marketing communications in the United States and abroad to ensure legal compliance, technical accuracy and brand standard consistency. Mosaic has also developed guidelines for industry partners to follow when implementing co-branded marketing communications. This includes advertising (television, print, digital, outdoor and social media), as well as promotional materials and sales collateral. It is important that we follow legal requirements and brand standards in all communications to not only protect Mosaic’s intellectual property but to further Mosaic’s commitment to ethical corporate stewardship.

Mosaic also partners with the agriculture community and other stakeholders, such as the International Plant Nutrition Institute (IPNI), the Canadian Fertilizer Institute (CFI), the International Fertilizer Association (IFA), The Fertilizer Institute (TFI), Ag Retailers Association (ARA) and the Conservation Technology Information Center (CTIC), which promotes and provides information on technology and sustainable agricultural systems. Along with these organizations, we support the 4R Nutrient Stewardship program, an industry-wide initiative to improve fertilizer management practices.

Mosaic seeks guidance and best practices from these third-party partners as needed to ensure understanding and compliance with industry standards.

PR7

Total Number of Incidents of Noncompliance With Regulations and Voluntary Codes Concerning Marketing Communications

Mosaic had no significant incidents related to noncompliance with regulations or voluntary codes related to marketing communications.

Customer Privacy

PR8

Total Number of Substantiated Complaints Regarding Breaches of Customer Privacy and Losses of Customer Data

Mosaic has had no substantiated complaints regarding breaches of customer privacy or losses of customer data in 2013.

Compliance

PR9

Monetary Value of Significant Fines for Noncompliance With Laws and Regulations Concerning the Provision and Use of Products and Services

Mosaic has automated systems to manage, track and monitor incidents related to fines for noncompliance with laws and regulations concerning the provision and use of products and services. Further, Mosaic uses a risk assessment matrix – to evaluate incidents and noncompliance events – that has categories for financial and reputational impacts. Mosaic had no significant fines for noncompliance with laws or regulations concerning the provision and use of our products and services.