for a Better World
A Message from Tony Will, President and CEO
Across the world you can feel a shift in how people are thinking about the role of business. Stakeholders expect companies to provide a higher level of transparency and disclosure coupled with continuous improvement in reporting beyond financial metrics. Companies must now take into account a broader range of interests that address environmental, social and governance (ESG) issues, including impacts on the customers they serve, the people they employ, the communities where they operate and the broader world around us.
CF Industries has long recognized the importance of all of our stakeholders, which is why we continue to improve how we engage with the numerous individuals and organizations who care about what our company does and how we do it. As part of that commitment, we make every effort to increase the level of transparency and detail on our annual nonfinancial reporting. Last year, we reported on a comprehensive basis, and we disclosed to all standards of the Global Reporting Initiative (GRI). In this year’s reporting cycle, we have also incorporated reporting to the Sustainability Accounting Standards Board, or SASB, framework.
We value safety first and are proud that in 2019 we achieved our lowest year-end recordable rate — 0.48 incidents per 200,000 labor hours — in our company’s history.
While we are very pleased with our progress to date, we can do more. We have listened to our stakeholders and are now working to establish ambitious sustainability goals, including a reduction in our greenhouse gas (GHG) emissions. We look forward to providing an update on the status of this goal-setting project in next year’s Corporate Sustainability Report.
FROM FACILITIES TO THE FARM
CF works hard to minimize GHG emissions from our manufacturing operations. We have made multibillion-dollar capital investments in state-of-the-art manufacturing technologies installed in our production facilities in recent years. These investments have enabled us to process natural gas into nitrogen fertilizer products more efficiently. In fact, CF operates some of the most energy-efficient nitrogen plants in the world.
CF produces nitrogen products that help farmers feed a growing population. With the world population expected to hit 9.8 billion people by 2050, fertilizer will play a critical role in feeding the world in a sustainable manner. The proper use of our products will ensure that GHG emissions associated with fertilizer application and agricultural production are minimized. Fertilizers help farmers improve yield per acre, allowing them to grow more food on less land. This means fewer acres need to be cleared and used for agriculture, leaving more acres devoted to carbon-sequestering forests.
CF also plays a role in ensuring the best use of our products. Farmers who employ the 4Rs of nutrient stewardship (applying the right nutrient source at the right rate, right time and right place) and complementary conservation practices see not only increased yields, but also decreased nutrient loss to the environment and lower field-level GHG emissions. Since 2016, in partnership with The Nature Conservancy (TNC), CF has led the “4R Plus” campaign in Iowa to boost farmer adoption of these practices. Through a four-year campaign, we have educated over 95 percent of Iowa’s farmers on the proper use of fertilizer and conservation practices to improve soil health. We are committed to partnering with TNC, Iowa farmers and other stakeholders to reduce the environmental impact that fertilizer application has on our air and water.
PUTTING SAFETY FIRST
Another innovative way we leverage best practices similar to the 4R Plus program is through efforts like the Stephen R. Wilson Excellence in Safety Award. This is an annual honor to recognize the most impactful safety innovations and improvements made by our manufacturing sites. We share these measures across the company and our industry. We value safety first and are proud that in 2019 we achieved our lowest year-end recordable rate — 0.48 incidents per 200,000 labor hours — in our company’s history.
CF’s “Do it Right” culture is built on a commitment to put safety first, operate our facilities to the highest standards, create an environment of inclusivity and do the right things for the right reasons. Clearly, this commitment is paying off in the safety record we achieved in 2019.
INCLUSION AND DIVERSITY
Equally important as continuous improvement in safety is fostering an inclusive and diverse place to work. To that end, we are implementing talent development strategies that make people aware of potential biases and create a culture of belonging.
Our innovative talent development programs encourage open discussion and help all of us work to find solutions that are aligned with stakeholder expectations. This work is supported by a commitment to exemplary corporate governance practices and oversight of ESG impacts at the highest levels of the company. In the pages that follow, I hope you will learn more about how CF is putting best practices to work while continuing to play our part in feeding the world sustainably.
Tony Will
President and CEO