IFA Protect & Sustain

– Product Stewardship from

Theory to Practise
IFA/IFDC Nitrogen Fertilizer Workshop Sevilla Oct 3-7, 2011
Soili Ylisuutari, Yara International
Ben Muirheid, IFA
 PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN INITIATIVE

This presentation will guide you to…

1) Gain better insight into the Product Stewardship concept
2) Familiarize yourself with the IFA Protect & Sustain framework for a
global Fertilizer Product Stewardship Programme
3) Share Yara’s experiences on Product Stewardship implementation
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN
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Protect & Sustain is the trademark for the International

Fertilizer Industry Association's (IFA) Product
Stewardship initiative.

Producer focused, producer driven

Co-operating and communicating

A modern, holistic business approach

Keywords: safety, security and sustainability
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN
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… to embody the IFA SHE Principles:

1. Leadership and commitment
2. Zero harm / environmental impact and a healthy work place
3. SHE and security management central to corporate policy
4. Adequately resourced - financial and manpower
5. Complying with laws, embracing best practices
6. Continuous, measured, improvement
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN
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IFA SHE Principles

7. Maintaining procedures and controls
8. Competence of staff and contractors
9. Continual hazard evaluation and risk assessment
10. Internal and external auditing
11. Sharing information and expertise
12. Promoting social responsibility and accountability
 PRODUCT STEWARDSHIP THE BUSINESS CASE THE PROTECT&SUSTAIN INITIATIVE
DEFINED

Product Stewardship is by definition responsible

production and use
… Management of the safety, health and environmental aspects of a product
throughout its lifecycle in an ethical and responsible way“
IFA 2009/ ICCA Responsible Care 2003

Background in the Responsible Care program

“Product Stewardship is the shared responsibility for
understanding, managing and communicating the impacts to
human health and the environment throughout the life cycle of
products. This life cycle involves the development, production,
use, distribution and end-of-life management of products. Thus,
companies and their partners are better enabled to develop and
promote safe and sustainable use of products.”
 PRODUCT STEWARDSHIP THE BUSINESS CASE THE PROTECT&SUSTAIN INITIATIVE
DEFINED

Product Stewardship is
… the next step in Safety, Health and Environment management

… throughout the product lifespan from product development and

materials sourcing to delivery and application at the farm

… beyond the factory gate in closer cooperation with suppliers,

transporters and retailers, sharing our values and commitment, right
through to the end-user
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN INITIATIVE

Safer working conditions

Safer communities
Better environmental
protection

Good public image

Influencing policy
Minimizing costly accidents
Maximizing profitability
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN INITIATIVE

Poor product stewardship

can be very damaging

Hungary Oct 2010

PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN INITIATIVE

and very expensive!

Deepwater Horizon
Oil Spill 2010
 PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN
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Product Stewardship extends the scope of Health, Safety and

Environmental Management to cover the whole Fertilizer Lifespan
1) Assessment of product risks, Product Dossier
2) Supplier selection and management, Best manufacturing practises,
Contractor management
3) Packaging, storage, transportation
4) Product safety, quality and security, Customer advice and training, Fertilizer
Best Management Practises, Management of inquiries and complaints
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN
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The Product Stewardship programme is

a strategic planning and management framework
to align business activities with product stewardship practices
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN
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www.protectandsustain.org

A single point of reference

For P&S Pioneers,
IFA Product Stewards
and everybody involved
A wealth of information
Tools and resources
Network hub
A point for recognition
A launch pad
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN
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5 steps to
certification

1) Registration: Sign Up by clicking a button – it will take you to a simple

guide for registering and developing your own product stewardship
programme
2) Read up to familiarize with the practises
3) Self-assessment with the IFA Evaluation Tool - designed to help
assess your organization’s strengths and weaknesses and to
benchmark your progress
4) Validation of self-assessment by a third-party
5) Certification as an IFA Product Steward through third-party site visits
Yara is a leading provider of both nitrogen-
based fertilizer and industrial products

Revenues (2010) Number of employees Global #1

in ammonia
USD 10.9 > 7,300 in nitrates
in NPK
located in more than
billion 51 countries
in specialty fertilizers
in marketing and
distribution
Yara global fertilizer sales 20.7 mil. tons
52%

Europe
10.9 mill tons
North America
13% 2.7 mill. tons
Asia
11% 2.3 mill. tons

Africa
7% 1.4 mill. tons

17% Latin America

3.4 mill. tons
Clear focus on agriculture and environment

Our Vision Our Mission Our Values

To be an To strive for Ambition
industry shaper better yield Teamwork
Trust
Accountability
Yara has built up systematic Product Stewardship
Management since early 2000

 Product Stewardship as a part of sustainability lies at the heart of Yara’s

ambitions – guaranteeing Top Management commitment
“Yara’s success as a listed company, a global business and as
the industry shaper is dependent upon the public trust and our
ethical reputation”
 Yara will operate in a sustainable manner in order to create long-term
value through superior financial performance
 Yara will support the development of sustainable agriculture

 Product Stewardship Management is chosen

as one elementary tool to achieve these goals
 Systematic implementation started
in Europe after the Toulouse AN accident
Product stewardship – ensuring quality and
safety throughout the value chain

Product application
Marketing and sales Product development

THE PRINCIPLES
OF PRODUCT
STEWARDSHIP
Storage GUIDE ALL OF Sourcing

YARA’S ACTIVITIES

Transportation Manufacturing

Packaging
Product Stewardship principles are included in
all Yara activities

• Yara Corporate Social Responsibility Policy and Code of Conduct

Policies • Yara Policy for Health, Environment, Safety and Product Stewardship

• Technical and Operational Standards for critical plant / supply chain operations
• Shared Best Practises
Steering • ISO 9001 / 14001 / OHSAS 18001 and local PS programmes applied
system

• Corporate, segment and local level KPIs and improvement actions

• Implementation by operational management
Implemt. • Self-assessment on each standard with stringend procedure to accept any
deviations

• Management of non-conformities, incidents and accidents

• Internal HESQ-PS auditing covering all units
Follow-
up • Management review
Example of Yara Steering System content
Yara Crop Nutrition focus

Consolidated and deep

knowledge on
crops

Tools and services, application Wide and unrivalled product range

concepts and competence to combine for better results
Examples of Yara Tools for Sales and marketing:
comprehensive knowledge packages provided to
support correct use at the farm

 Plantmaster™ Series for agronomic

information on specific crops
 Product Manuals covering:
– Production Technology
– Product Properties
– Basic Agronomy Information
– Product Performance Information
 Best Practice of Fertilizer Application
– Basic Soil and Plant Nutrition Manual
– Fertigation Manual
Examples of Yara Tools for the supply chain:
Technical Manuals on handling and storage of
products

My Triple Ten –
A pocket checklist for the supply
chain
Examples of Yara Tools for ethical conduct: Extensive
e-learning portal and Code of Conduct for Business
Partners
Higher profitability throughout the value chain

Profits
Increased
profit

Growers’
base
profit

Distributors Growers

Knowledge
IFA Protect & Sustain piloted in Yara Mexico
 Yara as a ”First Mover” decided to comply with IFA Protect & Sustain globally in all
fertilizer units
 Yara Mexico was pilot unit for certification audit in Oct 2010
– No certified ISO 90001/14001/OHSAS platform as a background, Yara Steering
System practises form the basis
– Careful and accurate self-assessment prior to the certification
– Successful result with few non-conformities to correct
– Confessed by the auditor for a high level of commitment and professionalism -
“It was noted that this commitment was embodied in the ethics of the business
and not just to obtain certification”
 3-year-plan with self assessment and corporate level verification audits created for
the rest of the units
Product Stewardship is a tool to benchmark and
improve overall SHE performance, example: a rating
of European fertilizer manufacturers
Block 3 Distribution
98.44 98.35
100.00 94.00 93.50 91.00 95.40 93.90 91.30
90.00 86.50 84.78 87.50

80.00
71.00 73.44 68.63
70.00 66.30
Percentage

60.00
50.00
40.00
30.00
20.00
10.00
0.00
PS 1 PS 2 PS 3 PS 4 PS 5 PS 6 PS 7 PS 8 PS 9 PS PS PS PS PS PS
10 11 12 13 14 15
Organisation
How do we manage it?
 PS is an elementary part of each Business Unit’s and Site’s operation
– Establish a management system supported by procedures and specifications
as appropriate
– Operate in accordance with these principles
– Establish goals and action plans for improvements when applicable
 HESQ-PS function shall
– Assist the units in Product Stewardship activities
– Review performance regularly
 “Total cost” of PS cannot be calculated – in the long run it shall lead to
improved SHE performance and lower cost of doing business
 Management commitment and clear strategic link to company’s own
business is an absolute success factor
"Product Stewardship should be considered as a critical component to
running fertilizer business in the 21st century"
Tore K. Jenssen, President for HESQ in Yara
PRODUCT STEWARDSHIP DEFINED THE BUSINESS CASE THE PROTECT&SUSTAIN
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Go for it!

www.protectandsustain.org