SUSTAINABILITY REPORT 2023
PARTNERS IN GLOBAL FOOD INDUSTRY
TABLE OF CONTENTS
Corporate Strategy | 21 |
Sustainability Journey | 27 |
APC's Governance | 35 |
Enterprise Risk Management | 43 |
Ensuring Economic Resilience | 48 |
Leading Markets and Creating Impact | 52 |
Streamlining Operations for Success | 58 |
Delivering Customer Satisfaction | 60 |
Responsible Procurement | 61 |
Fostering Innovation | 69 |
Environmental Management | 71 |
Pursuing our Environmental Aspirations | 73 |
Climate Action and Responsibility | 74 |
Sustaining Natural Resources | 83 |
Putting Safety First | 96 |
Empowering our People | 109 |
Building Thriving Communities | 123 |
Sustainability Report 2023 | Our Priorities | Thriving Future | Environmental Stewardship | People Centricity | |
His Majesty | His Royal Highness | ||
King Abdullah II Bin Al Hussein | Crown Prince Al Hussein Bin Abdullah II | ||
03 | 04 |
Sustainability Report 2023 | Our Priorities | Thriving Future | Environmental Stewardship | People Centricity | |
Message from our Chairman
Eng. Shehadah Abu Hdaib
Chairman of the Board of Directors
This report showcases our pursuit of environmental conservation, social empowerment, and robust governance throughout 2023. Our eorts at APC have been guided by national visions, including the Jordan Economic Modernization Vision and Jordan 2025 Vision, and in line with the United Nations Sustainable Development Goals (UN SDGs).
This year, APC has reinforced our position as a major global player in the fertilizer industry, a sector that is crucial for feeding half the world's population and is recognized globally as essential for food security. In line with this, our eorts solidify our position at the forefront of global food security inuencers, reinforcing our commitment to foster prosperity and further contribute to the sustainable development agenda.
Our extensive operations and international reach have made us particularly aware of, and resilient against, geopolitical shifts such as the ongoing Russian-Ukrainian war and the tensions in the Red Sea. Despite these challenges, APC has demonstrated exceptional resilience in 2023. Not only did we navigate these adversities, but we also accomplished remarkable achievements in production levels and operating prots, showcasing our economic stability and nancial resilience. Notably, we recorded the third highest net prots in our history, totaling JOD (293) million. The year 2023 also marked a record year for potash production, with (2.78) million metric tonnes produced - our highest ever and a (4%) increase from the previous record of (2.68) million metric tonnes set last year.
Leveraging our social responsibility initiatives, APC has continued to lead in supporting Jordanian communities with contributions totaling approximately JOD (7) million in 2023. These eorts spanned various sectors, including educational and healthcare projects in collaboration with ocial bodies. Notably, we have worked on the National Center for Diabetes, Endocrinology and Genetic Diseases and contributed to the rehabilitation of the Ghor Al-Mazraa health center. We also supported sports unions, aided the Aman Fund for the Future of Orphans, and partnered with cultural centers to train youth in southern regions, equipping them with essential job skills.
APC also steadfastly supported research, development, and production initiatives. A notable project in 2023 was the funding of a factory in the Karak Governorate for producing biodegradable water preservatives. This initiative was carried out in partnership with the Ministry of Agriculture and the Royal Society for the Conservation of Nature (RSCN).
As part of our vision for a greener future, APC has implemented our Energy Strategy by incorporating renewable energy sources into our energy mix. This not only reduces our carbon footprint but also strengthens our sustainability prole, aligning with our proactive approach to addressing climate change. In line with our goal to increase generation from renewable energy, we have taken signicant strides this year by initiating the licensing process for implementing various solar energy projects with a total capacity of (80) MWp.
In this regard, APC is currently studying desalination and water extraction projects to provide for our future needs, especially in light of the ambitious expansions we plan to implement by the end of the current decade. We have already installed a surface water collection system which has successfully collected about (3.6) million cubic meters of water in 2023. The system has proven highly eective in harnessing water from various sources, including Wadi Numeria, Wadi Issal, Ain Magharah, Wadi Bin Hammad, Ain Younis, and Al-Sammar.
This brings me to declare the conclusion of our 2021-2025 Strategy, APC's pioneer strategy, as we embark on a new journey with the launch of our 2024-2028 Strategy. This forward-looking blueprint is designed to propel us ahead in our sustainability journey, with sustainability placed as one of our pillars. Keeping an eye on future opportunities, we are poised to embrace new challenges and lead the industry toward a more sustainable
On behalf of the Board of Directors, I am proud to present the fourth Sustainability Report for the Arab Potash Company (APC), a testament to our continuous eort to report on our sustainability journey.
Complementing these eorts, APC also proactively ventured into new markets to ensure that we thrive amidst adversity. This year, we expanded our footprint by establishing a representative oce in Brazil, underscoring our agility and ability to grow. In 2023, APC successfully sold (2.89) million metric tonnes, showcasing a (10%) improvement from the (2.62) million metric tonnes sold in 2022.
We acknowledge that this success would not have been possible without the exceptional commitment and hard work of our dedicated team. Each team member's relentless pursuit of excellence, adaptability in the face of challenges, and collaborative spirit have been crucial to our achievements. On top of this, we recognize that the commitment of our employees reects the nurturing, positive, and inclusive culture we have cultivated at APC. Our focus on creating a supportive workplace environment is evidenced by our remarkable (92%) employee satisfaction rate in 2023, highlighting the mutual respect and motivation that drive our collective success.
future.
I would like to arm that the Board of Directors of APC will remain dedicated to enhancing the company's competitiveness, protability, and commitment to sustainability through our distinguished executive teams. In this regard, I extend my heartfelt gratitude to the company's CEO, Dr. Maen Al-Nasoor, for his signicant contributions that have driven the development of the company's performance locally and globally. I also wish to express my appreciation to all of APC's employees, whose dedication and hard work have been instrumental in achieving our exceptional results in 2023.
Together, with the continued dedication of our employees and support from all our stakeholders, I am condent in APC's future success and in our ability to set new standards of excellence within the industry, leading the way in sustainable development.
Thank you so much for joining us in our journey towards a more sustainable future.
05 | 06 |
Sustainability Report 2023 | Our Priorities | Thriving Future | Environmental Stewardship | People Centricity | |
Message from our CEO
Dr. Maen Nsour
President & CEO
It is with great sense of responsibility I share with you the strides we have made in our sustainability journey over the past year. This Sustainability Report exhibits the pivotal sustainability milestones we have reached in 2023, reecting our ongoing eorts to incorporate sustainability into our business practices.
07
Operating in an energy-intensive industry, we recognize our responsibility to promote sustainable practices. This has been one of the key drivers that galvanized our ambition of aligning with leading frameworks to root sustainability into the culture of APC.
Amidst challenging global conditions that have disrupted fertilizers supply chain and created a dicult operating environment, APC has stood resilient. We achieved the third-highest net prot in our company's history accumulating a staggering JOD (293) million, and the highest production record reaching (2.78) million metric tonnes.
Our global reach necessitates vigilant procurement practices, prompting continuous enhancement of our internal controls and processes. In 2023, we revised our procurement manual to include leading industry practices and ethical and environmental considerations, setting the stage for sustainable growth. APC is committed to engaging with diverse suppliers and vendors, selecting those who meet our high standards for quality and sustainability. This strategy aligns with our broader goal of optimizing procurement processes and ensuring high-quality materials and services for our projects. We aim to cultivate a sustainable supply chain that signicantly contributes to Jordan's economic development. Demonstrating this commitment, (62.8%) of our purchase order values in 2023 were allocated to local suppliers, reinforcing our support for local economies and dedication to economic resilience in the region.
Aligning our Energy Strategy with global eorts to combat climate change by transitioning from fossil fuels to renewable sources, we have made integrating sustainable energy a top priority. Starting the journey this year, we have installed a (0.587) MWp solar system in the carpark in Ghour Alsa. Simultaneously, we are conducting feasibility studies for the implementation of various photovoltaic projects across our locations. This initiative, alongside others we have implemented across the years, led to an (18%) reduction in our overall emissions intensity in 2023 when compared to our baseline 2019 values.
Understanding the urgency of the water scarcity issue in the country, we initiated measures this year to manage our water consumption. This included automating the control of our water stations and installing a surface water collection system. Notably, we have seen a (4.4%) decrease in our specic water consumption this year compared to 2022 despite the increase in our production output. This reduction is a result of various strategic initiatives we have conducted which have signicantly improved eciency and decreased water usage at APC.
At APC, we operate with the health and safety of our employees being of the utmost importance to us. The multiple projects that APC has implemented this year required stringent safety procedures to guarantee the health and safety of our workers. The enhancement in safety measures this year coupled with health and safety training and awareness sessions is the reason the Lost Time Injury Rate (LTIR) decreased by (54%) compared to the previous year.
We consider the skills and knowledge of our employees as a key contributor to our success. That is why we continue to invest in them by providing training and development opportunities. In 2023, we oered our employees a combined total of (20,654) hours of training, focused on upskilling and enhancing their abilities. Extending the importance of knowledge transfer beyond APC, and as part of our commitment to nurturing the potential of the next generation, we are proud to have overseen (430) university scholarships this year. These scholarships are awarded to young people from the local community, as well as the sons and daughters of our employees. Additionally, we are proud to have donated JOD (7) million to support local communities in 2023. To further solidify our commitment to sustainable practices, we established a dedicated Sustainability Unit in 2023 under the Strategic Planning, Excellence & Growth Sector. This new unit will act as the cornerstone for driving sustainability initiatives and instilling a culture of environmental responsibility across our operations. The primary role of this unit is to develop and execute transformative sustainability strategies at various APC locations, ensuring that our sustainability journey is both impactful and integral to our overall business strategy.
Upon reection on our sustainability contributions in 2023, we are proud to announce that APC has been awarded the Silver Medal by EcoVadis. This prestigious global recognition is a testament to our commitment to sustainable business practices. Receiving this accolade arms our position as a company that prioritizes ethical and responsible business practices. Moving forward, we will continue to pursue sustainable initiatives to achieve our business goals while contributing to a better world.
I am proud of APC's remarkable achievements, which are a direct result of our strategic foresight. The success we celebrate today is largely attributable to our 2021-2025 Strategy which has pushed us forward over the last four years, and it was a testament to APC's strategic vision. This strategic roadmap has allowed us to maintain operational exibility, scaling up production to full capacity, ensuring the sustainability and safety of our production processes, diversifying our product oerings, and expanding our global presence while strengthening our position in our current markets. The strategy encompasses (194) targeted initiatives focusing on excellence in product quality, environment conservation, employee welfare, and community engagement. Notably, in 2023, APC achieved the majority of our planned targets under our 2021-2025 Strategy, demonstrating a clear commitment to our goals. As a result, we have revised our goals and strategy, leading to the development of our new 2024-2028 Strategy. Through this new strategy, we have placed sustainability as a key pillar, reminding us of its importance to APC as we embark on our new journey.
I am optimistic about what we can achieve together, and I acknowledge that the milestones we have achieved could not have been possible without the support of our stakeholders. The guidance of our Board of Directors chaired by Eng. Shehadeh Abu Hdeib, the experience of the Executive Management team, and the hard work of our employees have collectively pushed us to reach this far in our sustainability journey.
As we step into a promising new chapter in 2024, our condence is reinforced by the collaborative eorts with our valued partners, stakeholders, and the broader community. Together, we will persist in leading the journey toward a brighter, more sustainable future.
Thank you for your ongoing trust and support.
08
Sustainability Report 2023 | Our Priorities | Thriving Future | Environmental Stewardship | People Centricity | |
About this Report
We are proud to present our fourth annual Sustainability Report of 2023. Through this report, Arab Potash Company, hereunder referred to as APC, provides an overview of how we continue to integrate sustainability into our operations, highlighting our key initiatives and endeavors for the year.
Scope | Reporting Frameworks | |
Feedback
To ensure we are constantly evolving as an organization in our reporting on our sustainability performance, we welcome your feedback on sustainability at APC and this report at:
sustainability@ArabPotash.com
Arab Potash Company
@ArabPotashJo
Arab Potash Company
@ArabPotashJO
@Arabpotashcompany1499
Please note that an electronic version of this report can be found on our website:
www.arabpotash.com/En/List/Sustainability_Reports
The report covers APC's operations within Jordan. Sustainability data relating to subsidiaries, clients, external contractors, and suppliers is not exclusively included in this report unless mentioned otherwise.
Completeness
Through our reporting, we are committed to inclusivity, materiality, and completeness in disclosing our sustainability performance data. Through this commitment we guarantee our stakeholders have access to the data material to them. Previous annual sustainability reports can be found on our Sustainability Reports webpage mentioned hereafter. For nancial, legal, and governance details, please refer to our 2023 Annual Report.
09
This report was developed in accordance with the GRI 2021 Sustainability Reporting Standards, the United Nations Sustainable Development Goals (UN SDGs), and the Amman Stock Exchange (ASE) Guidance on Sustainability Reporting.
In alignment with Jordan's eorts for economic and social development, this report highlights how APC is contributing to realizing Jordan's 2025 Vision.
Reporting Period
The reporting period covers the calendar year from 1st January 2023 until 31st December 2023, focusing on our performance during that period. Data from previous years is provided where relevant to the context and for insights on our performance trends.
10
Sustainability Report 2023 | Our Priorities | Thriving Future | Environmental Stewardship | People Centricity | |
Sustainability Highlights
Environmental Stewardship
Maintained zero environmental non-compliance incidents for the past
(5) years
Initiated the licensing and approval process for the commissioning of a
- MWp solar plant wheeling project
Commenced with the implementation of a new state-of-artpower and steam generation unit
Currently assessing the implementation
of two PV projects within APC's sites with a total of (36) MWp
Achieved an (18%) decrease in our overall emissions intensity compared to our 2019 baseline
Improved our energy intensity by (22%) compared to our 2019 baseline
Powered (95%) of our energy requirements independently
Reduced our specic water consumption by (4.4%) compared to 2022 performance
Established agreements with manufacturers for the return and safe
disposal of radioactive sources
Automated the control of all our pumping stations and water wells
Managed to sustain our emissions intensity around (151) kg of CO
equivalent per metric tonnes of KCl as compared to the year 2022, despite recording (4%) increase in our production values
Thriving Future
Secured the third highest operating prots in APC Group's history,
amounting to JOD (308) million
Produced (2.78) million
metric tonnes of potash, the highest production ever achieved in the company's history, surpassing last year's record of (2.68) million metric tonnes
Directed (81%) of the total sales volume towards our top ten markets
Allocated (62.8%) of the total purchase orders value to local suppliers
11
Sold (2.89) million
metric tonnes, showcasing a signicant improvement from the (2.62) million metric tonnes sold in 2022
Invested JOD (+170) million in
capital expenditures
Processed over (5,000) purchase orders, culminating in a total expenditure exceeding JOD (341) million
People Centricity
Covered (100%) of employees and workers under APC's OHSMS
Recorded a (54%) reduction in Lost Time Injury rate compared to 2022
Attained a remarkable (92%) employee satisfaction rate
Invested JOD (7) million
in CSR initiatives
Conducted an awareness session for
-
of APC's truck drivers on road
safety
Recorded (+20,000) hours of employee training
Covered (100%) of employees in formal performance reviews this year
Conducted comprehensive training programs for (131) individuals from the local community
Oversaw the awarding of (430) university scholarships
12
Sustainability Report 2023 | Our Priorities | Thriving Future | Environmental Stewardship | People Centricity | |
Organizational Prole
APC at a Glance
Established in 1956, Arab Potash Company is a pan-Arab enterprise operating in Jordan. APC was formed to extract salts and minerals from the Dead Sea, advancing to become the eighth largest potash producer worldwide by volume of production and remaining the sole producer of potash in the Arab World.
Two years after its establishment, APC was granted an exclusive concession for the exploitation of Dead Sea salts and minerals from the Government of Jordan for (100) years. To guarantee our business is sustained after the expiration of the concession, APC has ventured into downstream industries, including fertilizers, and Dead Sea salts and minerals.
• The Jordanian Executive Management assumed the management duties of APC.
• Started the production of red granular potash.
• Achieved new record figures in terms of potash sales.
• Produced and sold our first batch of red standard potash
• Released our first
• Achieved record |
figures in terms |
of potash |
production. |
• Achieved the |
Silver Medal |
from EcoVadis |
scoring in the |
top (25%) |
percentile. |
1956
- Established APC in Jordan.
- Commenced operations after being granted an exclusive concession by the Government of Jordan to exploit Dead Sea salts and minerals.
1958
1982
- The Hot Leach Plant (HLP) was established, and experimental production commenced.
- The Cold Crystallization Plant (CCP I) was established, and experimental production commenced.
1994
1997
- Numeira is established under APC.
- We obtained full ownership of KEMAPCO.
2007
• Entered the Brazilian market by sending the first shipment of APC's potash to Brazil.
2010
2019
- The New Cold Crystallization Plant (CCP II) was established, and experimental production commenced.
Sustainability Report covering our performance for the year 2020.
• Launched APC's Corporate Strategy for the years 2021-2025.
2020
2021
-
Achieved record
figures in terms of potash production and sales, as well as the start of red granular potash production. - Honored to receive a royal visit from His Majesty King Abdullah II bin Al-Hussein and the Crown Prince Hussein bin Abdullah to APC.
2022
-
Achieved record
figures in terms of potash production. - Achieved the highest net profits since our establishment.
- Expanded presence in new and existing markets such as Southeast Asia, Australia, and Brazil.
• Secured the |
third highest |
operating |
profits in APC |
Group's history. |
• Completion of |
the new |
compaction |
plant for |
granular potash. |
2023
13 | 14 |
Sustainability Report 2023 | Our Priorities | Thriving Future | Environmental Stewardship | People Centricity | |
APC has two subsidiaries1 operating under it, KEMAPCO and Numeira Mixed Salts and Mud Company, wholly owned by APC. KEMAPCO was established to sell Potassium Nitrate (NOP) fertilizer and Nitric Acid for agricultural use. On the other hand, Numeira's operations include purchasing and packaging carnallite as well as extracting mud from the Dead Sea to be used in cosmetics manufacturing.
Number of Employees | Ghor Al Sa | Aqaba | Amman | Total |
APC | 1,448 | 46 | 98 | 1,592 |
Subsidiary | 57 | 265 | 23 | 345 |
KEMAPCO | - | 265 | 15 | 280 |
Numeira Mixed Salts and | 57 | - | 8 | 65 |
Mud Company | ||||
Having been a long-standing pillar in Jordan's economy, APC is a leader among companies in the country, particularly in the realms of robust governance, environmental preservation, and community empowerment. Our emphasis on these aspects has solidied APC's position as an innovator in the potash industry, showcasing our ability to compete on a global scale.
APC's Footprint in Jordan
Amman
Ghor Al Sa
Aqaba
Amman | Ghor Al Sa | Aqaba | ||
15 | 1 For further information on APC's subsidiaries and aliates, please refer to our Annual Report 2023. | 16 |
Sustainability Report 2023 | Our Priorities | Thriving Future | Environmental Stewardship | People Centricity | |
APC's Presence
APC specializes in producing a range of potash products, including standard, ne, white, and red granular potash. The previous year set a new benchmark for our highest production since our establishment. In 2023, we surpassed this record by producing (2.780) million metric tonnes, marking a (4%) growth compared to the preceding year. This remarkable accomplishment stems from our vigorous corporate eorts aimed at reducing production costs and boosting sales. These eorts signicantly strengthened APC's capacity to elevate our production volumes, underscoring our commitment to excellence and eciency in operations.
Performance Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
Potash production (thousand metric tonnes) | 2,486 | 2,620 | 2,563 | 2,684 | 2,780 |
Potash sales (thousand metric tonnes) | 2,408 | 2,553 | 2,631 | 2,621 | 2,887 |
Consolidated sales revenues (JOD) | 504,608 | 456,169 | 648,010 | 1,268,192 | 792,523 |
Potash sales revenue (JOD) | 459,824 | 395,113 | 583,937 | 1,206,224 | 720,264 |
Gross prot (JOD) | 226,179 | 179,355 | 316,556 | 913,402 | 409,362 |
Finland | ||
Netherlands | ||
North America | ||
China | ||
Jordan | ||
Thailand | ||
Egypt | India | Malaysia |
Indonesia | ||
South America |
Furthermore, the increase in production is attributed to our strategic expansion into new European markets, such as Estonia, Latvia, Lithuania, Ukraine, and Poland. By diversifying our geographic presence, we have accessed new customer segments, enhancing our competitiveness and resilience in the market. Notably, our products were distributed to (47) countries in 2023, demonstrating the global demand for our potash products. For instance, our top ten sales markets in 2023 included China, India, Egypt, the Americas, Jordan, Indonesia, Malaysia, Netherlands, Thailand, and Finland, underscoring the broad appeal and reach of our products.
Looking ahead, we are committed to sustainable growth through further market expansion and growth in our sales.
17
Production Quantity (metric tonnes)
15.4% Red granular potash
428,405
0.3% | White granular potash | |
7,650 |
36.9% White ne potash
1,024,832
APC Sales By Area (metric tonnes)
China | ||||||||||
India | ||||||||||
Egypt | 238,776 | |||||||||
Americas | 209,820 | |||||||||
Jordan | 204,113 | |||||||||
Indonesia | 165,947 | |||||||||
Malaysia | 130,466 | |||||||||
Netherlands | 98,350 | |||||||||
Thailand | 73,391 | |||||||||
Finland | 71,500 | |||||||||
Red standard potash 3.9% 109,387
White standard potash 43.5% 1,209,726
697,706
456,839
18
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
APC - Arab Potash Company plc published this content on 14 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 July 2024 09:25:03 UTC.