♦ Environment

We rely on resources such as natural gas and water, and we have the potential to impact the environment through emissions of greenhouse gases, waste generation and contamination of soil and groundwater. We are committed to our Value of ‘Care for the Community & our Environment’ and we aim to minimise environmental impacts and leave no legacies.

In line with our Value of “Care for the Community and our Environment”, we apply a continuous improvement approach to management of environmental matters, focusing on the efficient use of non-renewable resources, environmental management at our sites and the rehabilitation and remediation of contaminated sites.

Our Health, Safety, Environment and Community Policy states that we will conduct our operations in compliance with all relevant environmental licences and regulations, promote the efficient use of resources and energy and strive to minimise our impact on the environment. This Policy is enacted on a day-to-day basis through our HSEC Management System. Our induction process includes discussion and sign off on our HSEC Policy for all employees.


IPL completes the CDP and CDP Water reports annually. These are available on our website and can be downloaded here: 2018 CDP Report and 2018 CDP Water Report. Our 2019 CDP Report, which corresponds to the period covered in this online report, will be completed in June 2019.

We have conducted high level Life Cycle Assessments of the energy and carbon emissions associated with our two major manufacturing processes, being the production of ammonia and ammonium nitrate. The first LCA is based on our Phosphate Hill site, which makes ammonia based fertilisers. The second is based on our Moranbah ammonium nitrate manufacturing site. Each is representative of the scope and activity of our manufacturing operations across the Group.

We have a governance structure in place that oversees the management of our environmental impacts:

 

• The Board’s Health, Safety, Environment and Community (HSEC) Committee assists the Board in its oversight of health, safety, environment and community matters arising from our activities as they may affect employees, contractors, and the local communities in which we operate.

 • The Zero Harm Council, chaired by our Managing Director & CEO and consisting of members of the Executive Team, is accountable for reviewing health, safety and environmental performance, developing strategy and targets, reviewing progress against targets and prioritising activities on a Group-wide basis. 

 • The Zero Harm Council is supported by Zero Harm Councils within each business unit, down to site level. These Councils are chaired by the business unit head to provide leadership on health, safety and environment. Business Unit Councils meet monthly and report to the Executive Team. Within each of our business units, operations staff and project teams are responsible for preparing and executing plans to support environmental targets and strategies.

 • Site managers are responsible for the operation of their site, including their environmental performance. Environmental managers within the business provide site managers with expertise to support the day-to-day environmental management of sites.

 

 • Auditing is a key component of the IPL HSEC Management System and contributes to the effective management of our HSEC risks through ensuring the careful and systematic identification and assessment of specific hazards and the establishment of control measures to prevent negative environmental impacts. Audits are undertaken regularly throughout the company, and a number of internal auditors are trained to conduct these audits. All audits are planned and managed through IPL's Safety, Health and Environmental Reporting System (Cintellate), including audit results and assigning and tracking of corrective actions. In addition, an internal auditing tool outlines the key requirements of the customised audit protocols tailored to IPL's HSEC Standards.

 

Our consumption of resources, such as fossil fuels (mostly natural gas), electricity and water and the amount of GHG emissions we produce is representative of the scale and capacity of our manufacturing plants, in particular the energy-intensive manufacture of ammonia-derived products, including urea, ammonium sulphate, ammonium phosphate and ammonium nitrate for the fertiliser and explosives markets. All of these products require natural gas as both an energy source and a raw material for production, with carbon dioxide being liberated during the process. In addition, carbon dioxide is liberated during the acidulation of phosphate rock in the manufacture of phosphate fertilisers and nitrogen oxides (NOx) and nitrous oxide (N2O, a potent GHG) are released during the production of nitric acid.

 

IPL has a strong focus on both abatement technologies and progressively increasing resource efficiencies to reduce its impacts on the environment, including NOx and SOx, and GHG emissions which contribute to climate change.

In Australia a central reporting system collects energy use, water use and waste data from all manned sites. The data is obtained from utility bills, except where electricity is generated on site. Electricity generated from natural gas at remote sites is metered on site and this is also entered into the database. Municipal water use is obtained from water bills, whereas volumes for storm water, river water, recycled process water or ground water are typically metered on site. The data is then consolidated and verified for reporting purposes. Energy use, water use and waste data for our sites in North America and Europe are supplied separately.


We continued to drive environmental improvements and resource efficiencies during 2018 through:

 

• Implementation of an engineering framing assessment model to identify engineering and operational opportunities to improve environmental outcomes;

• Extension of the use of iAuditor from fertiliser distribution sites to Australian manufacturing sites to conduct daily site photo logs which facilitate continuous improvement in product handling, compliance management and risk management;

• Performance of Environmental Site Assessments at 22 sites across North America;

• Continued auditing of spill prevention, control and countermeasure plans, including storm water pollution prevention controls, across North America;

• Continued use of visual management tools and lean processes, particularly 5S, to increase loss of containment awareness globally. This has resulted in increased operational control of product and a reduction in environmental risks associated with product tracking and spills; and

• Maintenance of the Environmental Incident Frequency Rate below 1 and setting of a new target of Zero Significant Environmental Incidents for 2019.

 

Key Challenges and Opportunities

 

• Continuing to identify and prioritise resource inefficiencies and reduce energy, water and waste;

• Securing capital to drive resource efficiencies in difficult market conditions;

• Responding to changing carbon regulatory conditions globally, particularly in Australia;

• Continuing to improve our environmental compliance and management systems, and our environmental performance; and

• Responding to climate change risks and opportunities.

 

 

Strategic Priorities

 

• Continued focus on improving environmental awareness through training, with emphasis on loss of containment, spill prevention, site cleaning processes and stormwater pollution prevention;

• Roll out of the IPL Environmental Awareness Training module through the IPL Learning Management System; and

• Continuing to work with the Australian Federal Government on energy and carbon policy to ensure favourable outcomes for business and the environment.