A Message from the Chairman
During 2017 IPL continued to create long term economic value while caring for our people, our communities and our environment. We remain committed to operating in a manner which acknowledges and proactively manages those issues which are most material to the long term sustainability of our business, the environment and the communities in which we operate.
Safety remains our number one priority at IPL and everywhere I go in the Group, it is clear that all our people share our objective of Zero Harm. In 2012 we set a number of 5-year targets in the area of safety, including reducing the Total Recordable Injury Frequency Rate (TRIFR) to less than 1. In 2017 we achieved a TRIFR of 0.9, a 35% reduction since 2012, and, in addition, our Employee Lost Day Severity Rate declined by 89% over the same period. While these are very encouraging results, we recognise that there can never be room for complacency in the area of safety. 84% of our sites were free of recordable injuries in 2017 and this must be our objective everywhere we operate.
Energy efficiency, reducing waste and water use and managing our impact in the context of climate change continue to be key parts of our environmental focus. Although our total use of natural resources increased this year due to the newly commissioned Waggaman, Louisiana plant, which increased IPL’s ammonia production, our continued investment in emissions abatement technology and in the new energy efficient Waggaman plant allowed us to achieve targeted global reductions in greenhouse gas emissions per tonne of ammonia and nitric acid, as well as significant reductions in our total global nitrogen oxide (NOx) and sulphur oxide (SOx) emissions. In addition, the new plant created 65 above-average wage positions and 466 flow-on positions, creating extra-financial social value in the local community, which we quantified through our first Social Return On Investment (SROI) analysis.
Diversity also remains a key focus for IPL. In 2017, we continued to progress our diversity agenda with a particular focus on strengthening the talent pipeline so that we can increase the number of women in the Company. To meet this commitment, the Board and management established a target to increase the percentage of women across the business by 10% year-on-year and to achieve a minimum participation rate globally of 25% women by 30 September 2022. This is an important strategic action which is underpinned by our diversity principle of “Shaping our Future Organisation”.
On 14 November 2017 James Fazzino stepped down as Managing Director & CEO after almost 9 years in the role. Jeanne Johns commenced as Managing Director & CEO on 15 November 2017. Jeanne is a truly global executive with deep experience in leading manufacturing operations and is uniquely qualified to lead both personal and process safety initiatives given her previous leadership role as Head of Safety & Operational Risk for BP Downstream, to which she was appointed in the wake of the Deepwater Horizon disaster. Jeanne’s global experience, leadership and customer focus are strongly aligned to our Company strategy.
For the fourth year, this online Sustainability Report supplements the short form Sustainability Report in our Annual Report. Our objective is to meet the needs of our diverse stakeholder group in an efficient and effective manner. I invite you to read it and welcome any feedback you may have.