♦ Environmental Compliance

As a “large emitter” under Australian National Greenhouse and Energy Reporting (NGER), IPL is required to report annually on energy and GHG emissions associated with more than 50 sites across Australia. Direct and indirect emissions from our Australian operations are reported to the Government under this national initiative, which began in 2009. Assurance was obtained over our Australian GHG emissions, energy consumption and production figures for the period 1 July 2015 to 30 June 2016. The third party issued an unqualified opinion over our reported emissions, energy production and energy consumption.

We supply data regarding our Australian energy consumption and the emissions to air associated with the manufacture of fertiliser to Fertilizer Australia each year, which is published as part of their annual consolidated Public Environment Report. Details of emissions are also supplied to the International Fertilizer Association for consolidated public reporting.

We report environmental release and discharge data to the National Pollutants Inventory in Australia, the Toxic Release Inventory in the United States, the National Pollutant Release Inventory in Canada and the Register of Pollutant Release and Transfer in Mexico. As required in New South Wales (NSW), Australia under the Protection of the Environment Operations Act 1997, holders of Environment Protection Licences who undertake pollution monitoring as a result of a licence condition must publish monitoring data on their corporate website. Of the five Environment Protection Licences which we hold for our NSW sites, there was one which required us to undertake pollution monitoring during 2016 (Kooragang Island) and we continued to publish this data on our website.

We are subject to environmental regulation under the jurisdiction of the countries in which we operate including Australia, United States of America, Mexico, Canada, Indonesia, Papua New Guinea and Turkey. These environmental laws and regulations generally address the potential aspects and impacts of our activities in relation to, among other things, air and noise quality, soil, water, biodiversity and wildlife. We operate under a Global Health, Safety and Environment Management System which sets out guidelines on the Group’s approach to environmental management, including a requirement for sites to undertake Environmental Site Assessments. In certain jurisdictions, the Group holds licences for some of our operations and activities from the relevant environmental regulator. We measure our compliance with such licences and report statutory non-compliances as required. 

Continuous improvement during the 2016 financial year was focused around risk management, compliance and increased reporting of potential incidents and hazardous observations.

While this has increased the total number of incidents reported globally in 2016,

over 90 percent of these reports were near misses which informed mitigation strategies and allowed potential environmental incidents to be avoided. 

 Highlights during the 2016 financial year included the following:

• The review of all Australian licensed sites’ Compliance Management Plans and Risk Registers to identify environmental risks and implement improved mitigation controls.

• The rollout of a new Environmental Compliance Audit Tool to an additional 21 sites in North America.
• The auditing of Spill Prevention, Control and Countermeasure Plans across North American sites, and the use of Visual Management tools and 5S processes to increase loss of containment awareness globally. This resulted in increased operational control of product and a reduction in environmental risks associated with product tracking and spills.

• The maintenance of the Environmental Incident Frequency Rate (EIFR) below 1 at just 0.32, a reduction of 57% on the 2015 EIFR. 

For the 2016 financial year, IPL received fines in aggregate of approximately A$60,500 for incidents relating to its fertiliser operations in Australia and a fine of US$100,000 for failure to conform strictly with an air quality permit in relation to one of its plants in the US.