Creating impact by developing sustainable solutions for improved productivity
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Creating impact by developing sustainable solutions for improved productivity
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COVER STORY YARA INNOVATION CURBS EMISSIONS ............................................. 1
With its game-changing catalyst technology,
Yara curbs GHG emissions.
IMPACT STRATEGY YARA STRATEGY CHASES VALUE CREATION .................................. 9
By executing its business strategy,
Yara creates value – creating impact.
IMPACT CHRONICLE YARA STRATEGIC EXECUTION CREATES IMPACT ......................... 11
Through core business and global commitment,
Yara engages internationally.
CASE STORY YARA SOLUTIONS IMPROVE PRODUCTIVITY................................ 19
Through food value chain engagements,
Yara contributes crop nutrition knowledge.
IMPACT PERFORMANCE YARA DELIVERS ON ITS STRATEGIC PRIORITIES....................... 28
Within key sustainability areas,
Yara documents its operational performance.
Impacting voices
Making a difference implies active engagement.
DAVID MOHAMMADU JAKAYA
WALLER NINDOW KIKWETE
SCIENTIST, YARA FARMER, GHANA PRESIDENT, TANZANIA
Innovating catalyst Improving agricultural Developing enabling
technology to curb productivity and maize policy frameworks for
GHG emissions. production. agriculture.
PAGE 2 PAGE 20 PAGE 17
Global challenge: Climate change Agriculture is responsible for a quarter of all man-made GHG emissions Most of this stems from land use change Production and use of mineral fertilizer is responsible for about 2 percent Response: Increase agricultural productivity Lower emissions from fields Lower emissions from production
Small pellet packs a punch
Yara’s catalyst pellets are making an impact,
off and on the field.
9 mm
The catalyst pellets
promote the reaction:
N2O > N2 + 1/2 O2 Cobalt compound in
a cerium oxide
Co2AIO4 + CeO2
9 mm
GHG CARBON
-54 -50
EMISSIONS FOOTPRINT
% %
MINIMIZED EMISSIONS LARGE-SCALE IMPACT LIFE-CYCLE ADVANTAGES
Production of nitrate fertilizers, known Largely thanks to its catalyst technology, The catalyst technology is putting
for their agronomic efficiency, can Yara has reduced its total GHG emissions a shine on Yara’s competitive edge.
cause large emissions of nitrous oxide by 54 percent since 2004. The innovative Combining low-carbon nitrate fertilizers
(N2O) – a greenhouse gas (GHG) with pellets enable Yara to produce fertilizers and best practice application tools,
about 300 times the global warming with a very small carbon footprint: Yara offers a solution to cut the carbon
potential of CO2. Yara’s catalyst pellets low-carbon nitrate fertilizer with footprint from fertilizer use for food
can reduce these emissions by as much clear advantages both before and after production by half.
as 90 percent. application on the field.
Yara Impact Review 2012 / 1
Curbing the
carbon
10 years that changed fertilizer production
Efforts on a tiny scale
10 years of research. 20 centimeters of a 1.5 square kilometer
plant. NOK 200 million in investments.
Yielding a great result
Yet, a huge impact: Increasing food production
while reducing carbon footprints.
Chasing footprints
A GAME-CHANGER. Agriculture drives land
use change, contributing to global warming.
Increased agricultural efficiency and produc-
tivity can mitigate emissions. Yara combats
high carbon footprint and drives efficiency:
Jørgen Ole Haslestad, President and CEO
2 / Yara Impact Review 2012
The benefits extend
to the field. We’ve
made our nitrates the
fertilizers of choice for
climate-conscious growers.
David Waller
Chief Engineer, Yara Technology Center
Jørgen Ole Haslestad, President and CEO
CLIMATE CHANGE has much innovating to provide technology low-carbon mineral fertilizer. Major
more to it than mathematical and knowledge, curbing emissions. food companies eager to reduce their
calculations and political quarrels. carbon footprints are exploring this as
Being a farmer myself, I have We have already developed catalyst an opportunity in their supply chain.
first-hand experience with erratic technology that drastically reduces
weather patterns affecting yields. harmful emissions. We have cut CARBON FOOTPRINTS can be cut
greenhouse gas emissions from all along the food value chain. As
As an industry leader, I can be part our own operations – by about half. the world-leading provider of crop
of the solution. Yara has engaged This has made it possible for us to nutrition solutions we collaborate
to mitigate global warming – offer the world’s first guaranteed with partners to increase yields while
Yara Impact Review 2012 / 3
PORSGRUNN: “It’s a real kick to for several years; in some for over five
develop something of such huge environ- years. However, its impact on the fertilizer
mental proportions,” says David Waller, industry landscape and carbon footprint
Chief Engineer at Yara’s Technology Center of food production has barely surfaced.
in Porsgrunn, Norway. The ‘something’ “Our technology raises the bar, not only
in question is, or rather was, a novel tech- for fertilizer producers,” Waller adds. “The
nology for curbing greenhouse gas (GHG) benefits extend to the field. We’ve made
emissions from production of nitrate fertil- our nitrates the fertilizers of choice for
izers. It has been doing well in Yara’s plants climate-conscious growers.”
reducing emissions. Agriculture has and pilot projects to examine climate-
the potential to become a solution and environment-friendly solutions.
to global warming – not just a cause.
Globally, we have engaged to link Yara is a partner in the Sahara Forest
the issues of food and climate. Project, which launched its pilot
future-lab in the Qatari desert in 2012.
An open mind and innovative spirit is In the spirit of collaboration we also
also needed to find new approaches teamed up with Brazil’s renowned
and develop new methods. We research institution, Embrapa.
participate in research collaboration Yara's 2012 GHG emissions
were down 54 percent compared
to 2004 levels.
Jørgen Ole Haslestad, President and CEO
4 / Yara Impact Review 2012
Certainly, the farmers’ fields are central in oxygen. Since its first full-scale install- nutrients. Before the catalyst these benefits
limiting climate change. In a 2012 report ment in 2002, the catalyst technology has were offset by large GHG emissions from
the Consultative Group on International reduced Yara’s total GHG emissions from the production. In came the pellets, remov-
Agricultural Research (CGIAR) concluded production by roughly half. ing emissions at the production stage and
that food systems were responsible for up leaving nitrates with a clearly advantageous
to one third of all man-made GHG emis- GAME CHANGER carbon footprint over their life cycle.
sions in 2008. Agricultural production, The catalyst pellets were conceived at Yara’s
including land use change, accounts for Technology Center in Porsgrunn, part of
as much as 86 percent of emissions from the 1.5 square kilometer industrial site that
food systems. Next on the list is fertilizer hosts Yara’s – and Europe’s – largest pro-
production, responsible for 3–3.5 percent. duction capacity for NPK complex fertil-
Breakthroughs are needed both on and off izers. To a stranger it resembles seemingly
the field. endless spaghetti of pipes surrounding and
embracing large industrial structures that
CATALYTIC IMPACT tower over the dock. From here, finished
Yet breakthrough is about the last word fertilizers are shipped in bags or bulk to
that comes to mind at the sight of Yara’s customers worldwide. Some of the largest
catalyst technology: a matte green-grayish volumes find their way to China and other
honeycombed pellet, about the size of the parts of Asia.
tip of your little finger. “Size and shape
are important, but the real secret is in the The impact of the catalyst technology goes Triggered by the N2O catalyst
composition,” explains David Waller. “It beyond reduced emissions from nitrate technology, Yara launched the world’s
consists mostly of cerium oxide, but it’s the fertilizer plants like Porsgrunn. It has first Carbon Footprint Guarantee in
cobalt inside that makes it work.” also impacted on the perception of – and Scandinavia in 2010. This guarantees
awareness of – nitrate-based fertilizers. that the carbon footprint for nitrate
And work it does. When placed in the To European farmers nitrates are known fertilizers sold in Denmark, Finland,
burner of a nitric acid plant the pellets as the most efficient and reliable source of Norway and Sweden is below 3.6 kg
reduce N2O emissions by as much as 90 nitrogen. Now, with the catalyst technol- CO2 equivalents per kg nitrogen. Yara’s
percent. The catalyst splits nitrous oxide ogy, the clear climate and environmental nitrate fertilizer meets requirements
(N2O) – a highly potent GHG and an advantage adds even more value. Nitrates for the Swedish Climate Certification
unwanted byproduct from nitric acid perform better on the field, improving for the Food Chain, an initiative
production – into harmless nitrogen and yields with less GHG emissions and loss of supported by Yara.
Jørgen Ole Haslestad, President and CEO
IMPROVED PRODUCTIVITY is the
key to increasing yields and reducing
emissions. Yara’s main contribution
is to offer solutions that improve
the efficiency of scarce resources
needed to produce the 70 percent
more food needed by 2050.
million
hectares Improving agricultural productivity
and water use efficiency are
priorities in Yara, Water scarcity
Worldwide, Yara’s fertilizers
and resource efficiency are two
are used on 50 million hectares
of our innovation pillars.
of land, by 15 million farmers
producing 160 million tons of grain.
1 2
Yara Impact Review 2012 / 5
Ammonia and air
BURNER
Burner basket
with catalyst 1 Chasing improvements: Yara’s scientists
pellets work continuously to increase the efficiency
and reduce the carbon footprint of fertilizer
production. Access to a unique pilot plant allows
Heat exchanger for testing under real conditions. 2 Efficient
removal: The N2O is formed when ammonia is
BOILER reacted to produce the key ingredient in nitric
acid. A 5–20 cm layer of catalyst pellets in the
NOx for burner basket removes up to 90 percent of the
nitric acid N2O emissions. 3 Best Available Technique:
Yara’s catalyst pellets qualify as BAT under the
EU IPCC Directive on industrial emissions.
3
Increased production and environ- GLOBAL ENGAGEMENT is Yara’s way
mental responsibility must go hand of contributing to the dialogue and the
in hand, and farming must be a policy agenda, sharing our expertise on
profitable business, also for the world’s frameworks for sustainable agriculture.
smallholders. To produce enough
food, fiber and fuel to meet future In 2012 I had the opportunity to
demand, we depend upon improving engage in key global and regional
smallholders’ productivity. Adequate venues debating the future. One was Resolving the
crop nutrition and better practices
are vital to meet growing demand.
the launch of the New Alliance for
Food Security and Nutrition. Here,
challenges can be done
US President Barack Obama took in partnerships.
We are facing a common future the lead – illustrating the level of
– and common, global challenges. political attention to agriculture.
Resolving the challenges can
be done in partnerships. Jørgen Ole Haslestad, President and CEO
1
6 / Yara Impact Review 2012
1 PepsiCo’s Tropicana: Yara’s crop nutrition
program can potentially decrease the carbon
footprint of orange juice production by up to
50 percent. 2 PepsiCo potatoes: Field evalu-
ations of Yara’s low-carbon nitrates show that
they can reduce the carbon footprint of growing
potatoes for Walkers Crisps by 27 percent.
2
Jørgen Ole Haslestad, President and CEO
AFRICAN AGRICULTURE has a huge A great swath of land across
untapped potential. I had the pleasure Sub-Saharan Africa has been dubbed
of presenting the 2012 Yara Prize at ‘Africa’s Cerrado’, referring to the vast
the African Green Revolution Forum expanse of highly productive cropland
(AGRF) in Arusha, Tanzania. We in Brazil. In 2012 Yara positioned
We create value honored two outstanding contributors itself for significant expansion in
by responding to to the continent’s food security. Brazil, which still harbors potential
to increase its agricultural output,
the challenges of AGRF has become the venue for for food as well as fuel. We intend
food, resources and exchanging ideas and entering partner- to help realize that potential.
ships, across business boundaries and
environment. sectors. It was inspiring to take part, to YARA’S ENGAGEMENT is not altruis-
feel the enthusiasm and momentum. tic. I’m a businessman heading a listed
company; we’re in it for business – toYara Impact Review 2012 / 7
SECRET: CORN FOOD FRONTIER
“It is a true case of innovation,” says The team’s innovative spirit and hard
David Waller of the process behind the labor has added to Yara’s competitive edge.
pellet catalysts. “We harvested ideas from “Food companies are increasing the pull
different disciplines, such as metallurgy
and ceramic engineering, and applied
for our crop solutions. They have ambitious
sustainability and quality targets, and
It is a true case
them to our own.” He explains that the are passing new requirements on to their of innovation
team struggled to find the right support suppliers and contract growers,” says Egil
phase, the base material, for the pellets. Hogna, Yara’s SVP and Head of Down- David Waller
That’s when a failed test was turned into stream. “Our low-carbon fertilizers and
a success: The pellets changed color as agronomic knowledge resonate very well
the performance went from good to poor. with their ambitions.” Hogna sees partner-
Conclusion: The cobalt worked, but they ships with food companies as an attractive
had to find a support phase that would not way to reach more growers and spread
react with the cobalt under the extreme Yara’s message that farming can become ‘Halve the GHG impact of our products
conditions in the burner. The scientists more productive without compromising across the lifecycle by 2020.’ ‘Reduce
found what they were looking for – in a the climate and environment. the carbon emissions of the products
fuel cell component: a cerium oxide with in our supply chain by 30 percent by
just the right properties. “Yara’s work on fertilizers is one of the 2020.’ Ambitions for GHG reductions
key elements in the carbon footprint work are high among food giants Unilever,
Cornstarch is another and surprising key for our bakeries,” said Jacqui Macalister, Tesco and their like, driven by discern-
to the pellets’ efficiency. “Cornstarch gives Sustainability Executive of McDonald’s ing consumers and general concerns
them the right porosity. We mix it in with Europe, following a workshop at Yara’s over global warming.
the other materials and then carefully agronomic R&D center Hanninghof in
burn it off from the finished pellet, leaving 2012 investigating options for reducing Farming – and particularly the use of
small cavities of the perfect size,” Waller the footprint of the company’s burger buns. fertilizer – is a hotspot for achieving
explains enthusiastically. He praises the carbon emission reductions. Yara offers
entrepreneurial attitude of the research The combination of state-of-the-art solutions to help food companies reach
team. “We had a strong and dedicated fertilizer production technology and their targets: Low-carbon fertilizers
team that was willing to roll up their best farming practices has already proven and best farming practices can reduce
sleeves, push boundaries and really step successful in projects on orange juice and the carbon footprint associated with
into production of manufacturing equip- potatoes with PepsiCo, and on coffee in fertilizer use for food production by
ment and pellets.” Vietnamese fields. 50 percent or more.
create value. But having a century long
history, we take a long term approach.
Yara positions itself by creating value
not only for our shareholders.
Executing our growth strategy, we
create value also for our customers,
and we create value for society at large.
million people
By creating value, we create impact.
Worldwide, Yara’s crop nutrition
solutions support food production
CREATING IMPACT is our blueprint to
feeding 160 million people.
create business value in the way we
respond to the human challenges of
food, resources and the environment.
Jørgen Ole Haslestad, President and CEO1
8 / Yara Impact Review 2012
1 Halving the footprint: Yara’s low-carbon
fertilizer and best farming practices can reduce
the carbon footprint of fertilizer use for food
production by 50 percent or more, while saving
land and maintaining yield.
I’d like to know if the
principles of the catalyst
can reduce emissions
from other processes.
David Waller
GOOD FORESIGHT
Back at the technology center in Porsgrunn,
David Waller is proud of Yara’s forerunner
role: “The technology is a case of good
foresight and determination. We started to
make provisions to regulations on emissions
of N2O well before this became an issue.
The project was thoroughly anchored in
management, and they were ready to spend.”
Development of the catalyst hasn’t stopped.
Yara’s scientists continue to investigate
modifications, but Waller’s curiosity now
extends beyond N2O emission. “We’ve
spent ten years investigating what goes
on in 20 centimeters of a huge plant, with
exciting results. I’d like to know if the prin-
ciples of the catalyst can reduce emissions
from other processes.”
Jørgen Ole Haslestad, President and CEO
With our crop nutrition yields increase
and quality improves – giving farmers
a better income, creating opportunities.
With our environmental solutions
municipalities can cleanse the air,
NOx
improving the health of their citizens. Worldwide, Yara’s
environmental solutions
We shall continue to make a differ- contributed to reducing
ence; engaging in global dialogues NOx emissions by
while delivering solutions that add 866,000 tons
value to shareholders, customers and Jørgen Ole Haslestad in 2012.
society alike – driving business growth. President and CEOYara Impact Review 2012 / 9
Strategic ambition: Creating Impact!
CREATING IMPACT is Yara's blueprint to create business
value in the way the company responds to the human
challenges of food, resources and the environment.
Yara’s commitments include adherence to company’s approach to creating shared The three impact areas are intrinsically
international human rights, labor rights value. Successful alignment of the compa- linked. Improved agricultural productivity
and the principles of transparency and ny’s current and future core business with is vital to meet an anticipated 70 percent
accountability. Yara firmly believes that global challenges will strengthen the com- increase in food demand by 2050. As the
its business conduct and development pany’s position and develop a sustainable increased output has to be obtained with
can deliver strong results both financially, competitive edge. less input, resource efficiency is imperative.
environmentally and in terms of societal Simultaneously, global warming is already
value. IMPACT AREAS thought to affect world food production
By developing and delivering solutions negatively, making reduced emissions
In 2012, Yara fully adopted Creating addressing global challenges relating to another key intervention.
Impact as the driver to create business food, resources and the environment, Yara
value and our growth strategy. The foun- will grow its business and find new busi- Yara contributes agronomic solutions to
dation for this long-term growth is the ness opportunities. improve resource use efficiency, reduce the
7 CREATING IMPACT
– DELIVERING BETTER YIELD
RC
ES FOOD ENVIR
U
O
RESO
NMENT
6
RESOURCE SUSTAINABLE REDUCED
EFFICIENCY AGRICULTURE EMISSIONS
GLOBAL ENGAGE MENT & IMPACT AREAS
5 C R E AT I N G VA LU E
4 COMPETITIVE + EDGE
$ ¥
£
€
KNOWLEDGE FINANCIAL INNOVATION PROFITABLE GLOBAL OPERATIONAL
3 MANAGEMENT DISCIPLINE CULTURE GROWTH ENGAGEMENT SAFETY
ST R AT E G I C I M P E R AT I V E S
2 GLOBAL MEGATRENDS
1 YARA BUSINESS MODEL
Yara builds on its industry platform and 1 business model and is influenced by 2 global megatrends, when executing
its strategy through six 3 strategic imperatives: priority areas. Yara’s 4 competitive edge is the key to 5 creating value.
Engaging globally, Yara has identified three 6 impact areas where it contributes substantial solutions – 7 creating impact.
Creating Impact!10 / Yara Impact Review 2012
need for land use change, drive techno- has entered into a number of partnerships. ments – including human rights and labor
logical innovation and introduce environ- The common thread for Yara’s engagement rights – and to international and national
mental solutions to reduce greenhouse gas is improving efficiency, productivity and legislation where it operates.
emissions and other pollutants. profitability – in a sustainable manner.
A key commitment relating to production
Yara is positioned to drive global dialogues, GLOBAL COMMITMENT is Yara's adherence to the industry stan-
which also provide a platform for forging Yara is committed to transparency and dard of Product Stewardship. Also, Yara
partnerships and engaging in global initia- accountability, which constitutes a foun- has a clear policy on Health, Environment,
tives. Yara contributes its knowledge and dation for the company’s Code of Conduct Safety and Quality (HESQ) with strong
solutions in debates on policy frameworks, and a core element of its Ethics and Com- emphasis on safety – and an ambition of
industry processes and management prac- pliance Program. Here, and through being zero accidents.
tices. In recent years Yara has played an a signatory to the UN Global Compact,
active part in several key initiatives, and Yara adheres to key international agree-
UN GLOBAL COMPACT LEAD UN GLOBAL COMPACT FTSE4Good
Yara has been admitted to the UN Yara has signed the United Nations FTSE Group confirms that Yara Inter-
Global Compact LEAD. The group of Global Compact, embracing its princi- national ASA has been independently
companies comprise a vanguard play- ples. The UN GC is a strategic policy assessed according to the FTSE4Good
ing an essential role in shaping expec- initiative for businesses committed to criteria, and has satisfied the require-
tations of corporate sustainability as aligning their operations and strategies ments to become a constituent of the
well as advancing broader UN goals with ten universally accepted principles FTSE4Good Index Series. Created by
and issues. LEAD was launched in 2011 in the areas of human rights, labor, the global index company FTSE Group,
to provide knowledge and inspiration environment and anti-corruption. FTSE4Good is an equity index series
on advanced aspects of corporate sus- that is designed to facilitate invest-
tainability, and to provide leadership ment in companies that meet globally
for global issue platforms. recognized corporate responsibility
standards. Companies in the FTSE-
4Good Index Series have met stringent
environmental, social and governance
criteria, and are positioned to capitalize
on the benefits of responsible business
practice.Yara Impact Review 2012 / 11
IMPACT
chronicle
GLOBAL TRENDS
and challenges p 12
are influencing Yara’s business
environment, challenging agriculture
and future food security
YARA
engages p 13
in policy processes, seeking
answers to resource scarcity,
food security and climate change
YARA
responds p 16
by developing and delivering
solutions for sustainable
agriculture and the environment
Impact chronicle12 / Yara Impact Review 2012
GLOBAL TRENDS The outcome document of
and challenges the p. 13 Rio+20 conference,
‘The future we want’, called
We must find new for increased private sector
ways to exploit During 2012 attention to the links between
participation, and committed
the links between food demand, resource availability and
to food security and sustain-
agriculture and other climate change gained prominence. Within able agricultural development.
sectors, including this context, agriculture is key. In May, the G8 launched
health, nutrition, its p. 13 ‘New Alliance for
water, and energy. 2012 witnessed dramatic events Food Security and Nutri-
with regard to climate con- GLOBAL RESPONSES tion’, responding to the
International Food Policy
Research Institute
ditions and food production, Global challenges require continuous high levels of
‘2011 Global Food Policy Report’, including the hottest summer integrated global responses food insecurity in Africa.
Washington D.C., 2012 ever recorded in the USA and from multiple stakeholders,
the coldest winter in decades where the private sector CLIMATE CHANGE
in China and Russia, all major has an important role In 2012 global attention
food producers. World food within all key issues. focused on climate change.
prices remained high, at a The Rio+20 summit stated
level established after the food RESOURCE SCARCITY that “climate change is one
crisis of 2008. High prices are In 2012 global attention of the greatest challenges of
an incentive for farmers to focused on p. 13 water scar- our time”. The World Bank
invest in productivity, while city. Agriculture currently report ‘Turn Down the Heat’
threatening food availability consumes about 70 percent indicated a potential rise
to low-income families. of freshwater withdrawals. in global temperatures of
In the future it will have to 4°C. Another 2012 study, by
do with less. Entering the the Global Carbon Project
International Year of Water Consortium, stated that
GLOBAL CHALLENGES Cooperation 2013, the United with present levels of atmo-
The world is facing a number Nations (UN) launched its spheric CO2 global warming
Cultivated land per person has of interrelated challenges new ‘Water Development could reach 5°C by 2100 –
been halved since 1961.
relevant to agriculture and Report’, noting the critical with dire consequences.
UNESCO
food production, as well as to role of water in feeding the
key environmental issues. future world population
with climate change exac-
RESOURCE SCARCITY erbating water stress.
Related to food production,
CropWorld Global:
there is limited land avail- An action framework for
Yara participated in the able for farm expansion, agriculture and food security,
‘CropWorld Global 2012’ and several regions face a ‘Coping with water scarcity’,
conference in London in
November 2012, sitting
critical scarcity of water. issued by the Food and Agri-
on a panel on sustainable culture Organization of the
agricultural intensification. FOOD SECURITY United Nations (FAO) in
To respond to population 2012, pointed to improved
growth and dietary changes, agricultural practices and
world agriculture must almost increased water productivity
double its output by 2050. This as major response options.
increase requires resource
use efficiency and improved FOOD SECURITY
agricultural productivity. In 2012 global attention
B4E Global Summit: focused on investments in
CLIMATE CHANGE agriculture. In its ‘The State
Yara participated at the Global warming is a major of Food and Agriculture
Business for Environment
(B4E) annual Global Summit threat to future food security. 2012’, the FAO called for
in Berlin in May 2012, Agriculture is vulnerable to more and better investments
presenting recommendations climatic conditions, but may as one of the most effective
for the p. 13 Rio+20
conference. also mitigate global warming. ways to reduce hunger and
poverty while safeguard-
ing the environment.Yara Impact Review 2012 / 13
YARA A New Alliance
engages to Grow Africa
In 2012 the New Alliance
Engaging in global issues through policy
for Food Security and
processes and business partnerships is an
Nutrition, a public-private
integral part of Yara’s business strategy. partnership, was launched
at the G8 summit, building
In 2012 Yara reiterated its and a variety of stakehold- on the Grow Africa partner-
commitment to promote ers convened for the UN ship established in 2011.
solutions for sustainable Conference on Sustainable
agriculture and the environ- Development in Rio de The Grow Africa partnership
ment. This global engagement Janeiro, Brazil in June 2012. Food security is a aims to accelerate private
largely targets three focal moral imperative, sector investments, enable
areas where Yara can wield Yara participated at the but it’s also an multi-stakeholder partner-
particular impact: resources, Rio+20 summit, and in the economic imperative. ships and expand knowledge.
food, and the environment. Sustainable Growth Sum- The platform builds on
mit at the WEF on Latin BARACK OBAMA partnership models cham-
President of the USA
In 2012 Yara issued policy America, in Puerto Vallarta, pioned through the p. 16
Launching the New Initiative,
papers on Agriculture and Mexico, in April 2012, lead- Washington, 2012 New Vision for Agriculture.
climate; p. 15 the Baltic ing up to the Rio summit.
Sea; Genetically Modified Here the importance of pub- Yara is a member and a
Organisms; Biofuels; lic-private partnerships as co-chair of the Grow Africa
and Organic farming. an approach to sustainable Task Force and has been
50
growth was highlighted. a catalyst and contribu-
PARTNERING AT WEF tor to the process leading
WEF: Yara is an industry G20: Yara joined the Green to its formation. The first
partner to the World Eco- Growth Action Alliance step was the launch of the
nomic Forum, participating at (G2A2), launched at the p. 14 p. 16 Agricultural Growth
the annual meetings in Davos G20 / B20 Summit in Los Corridor concept for the
million people
as well as regional summits. Cabos, Mexico, in June 2012. African Green Revolution.
The WEF provides a unique
platform for engaging with The G2A2 is a public-private The G8 collaborated with
major stakeholders. Within partnership initiative com- The New Alliance for Food Grow Africa when estab-
this framework Yara has prising 50 global companies Security and Nutrition is a lishing the New Alliance for
joined processes such as the that aims to address the commitment to raise 50 Food Security and Nutrition
New Vision for Agriculture. shortfall in green infrastruc- million people out of poverty in 2012, with a goal to sup-
10
over the next
ture investment, including port inclusive and sustained
At the 2012 WEF Annual sustainable agriculture. agricultural growth. Yara
Meeting Yara co-hosted and
years
represented the private
moderated a session on the sector in Washington DC,
‘Food, Water, Energy, Climate USA in May 2012, when
Change Nexus’. The President RESOURCES President Barack Obama
and CEO of Yara, Jørgen Ole In 2012 Yara reinforced its launched the New Alliance.
Haslestad, co-chaired a meet- attention to resource man-
ing on Green Growth, fram- agement, with an empha- » yara.com/sustainability
ing the debate on agriculture’s sis on nutrient and water
role in promoting sustain- use efficiency. Satisfying Investment Forum:
able economic progress. future demand for agri- Yara participated in the ‘Grow
cultural products requires Africa Investment Forum’
During 2012 Yara’s Senior VP improved productivity and in Addis Ababa, Ethiopia in
May 2012, which was held in
Sean de Cleene was a member resource use efficiency. conjunction with the WEF on
of the WEF Global Agenda Africa summit, and included
Council on Climate Change, WATER SCARCITY several heads of state.
focusing on low-carbon and SCI: Yara sponsored the
resource-efficient growth. “More crop per drop
MEETING IN RIO – raising water use effi-
RIO+20: World leaders ciency” seminar hosted by
Impact chronicle14 / Yara Impact Review 2012
the Society of Chemical suggested were innovative at the G20 / B20 summit.
Industry in London, UK. development of stable food Key recommendations
chains and active engagement of the B20 Summit in
WEF: The Nexus meeting by the private sector with par- June 2012 were to:
Green growth strategies
at the 2012 WEF Annual liamentary select committees. t increase investments to
are growth strategies
Meeting, co-hosted by Yara, improve productivity
with the additional
focused on the unprecedented THE YARA PRIZE t ensure sustainability
goal of fostering a
crunch on water and other YP: The Yara Prize for an through effective
better environment.
global resources in the years African Green Revolution resource management,
to come and the need to 2012 was awarded to two The World Bank including improving
look for holistic solutions. prominent African leaders, ’Inclusive Green Growth’ water use efficiency
from the public and private Washington D.C., 2012 t apply climate smart
sector: Dr. Agnes Kalibata, agriculture.
Minister of Agriculture
FOOD and Animal Resources in The Task Force pointed at the
In 2012 Yara made its commit- Rwanda, and Dr. Eleni Gabre- need for increased private
ments to the African Green Madhin, former CEO of investments in agriculture to
Revolution more specific, the Ethiopian Commodity help reach the twin goals of
increasing its involvement in Exchange (ECX) in Ethiopia. improving productivity and
food p. 16 value chains. Yara » yaraprize.com increasing production. Also,
advocates sustainability in of developing-world farmers it advocated optimization of
agriculture as a way to increase UNITED NATIONS GLOBAL are women. (FAO) productivity through actions
profitability while reducing COMPACT like strengthening the p. 16
environmental footprint. UNGC: Yara is a signatory value chains and agriculture
» yara.com/sustainability to the UN Global Compact systems, improving mar-
and was invited in 2012 to ket access for smallholder
AFRICAN GREEN join its Core Advisory Group farmers and bolstering the
REVOLUTION on Sustainable Agricul- support for small-scale
AGR: Yara has engaged in the ture Business Principles. farmers, especially women.
African Green Revolution for
a decade, and continued to The UNGC works together FEEDING THE WORLD
take an active part in 2012. with the FAO on developing FtW: Yara participated
‘Voluntary business princi- in the Feeding the World
The second African Green ples for sustainable agricul- conferences hosted by The
Revolution Forum (AGRF) ture’, to be ready late 2014. Economist in Johannesburg,
convened in Arusha, Yara will participate in this, South Africa, in November
Tanzania, in September. sharing its knowledge and 2012, and in Amsterdam, the
Yara was one of the main offering its expert opinion Netherlands in January 2013.
sponsors and CEO Jørgen on key issues pertaining to BCTA
Ole Haslestad co-chaired the the future of agriculture Yara is a member of the In Amsterdam Yara’s CEO
event. He emphasized the and food production. Business Call to Action Jørgen Ole Haslestad dis-
(BCtA), challenging
great value of the AGRF as companies to develop
cussed smart partnerships
the meeting place for Afri- In early 2012 the UNGC innovative business models and how to explore opportu-
can agriculture development presented its framework for that achieve commercial nities to collaborate in order
success which drive
and an important incubator action on Corporate Sus- sustainable development.
to deliver improved nutrition
for innovative solutions. tainability Leadership to the and sustainable agricultural
p. 13 Rio+20 process. Yara IFDC markets to benefit local com-
Discussions centered on ways was one the signatories, as Yara is a partner to the munities and global consum-
International Fertilizer
to scale up investments and a member of the UNGC’s Development Center (IFDC), ers. Yara has engaged in pub-
innovation, and through Caring for Climate group. promoting research and lic-private partnerships for
this build the foundation for knowledge to increase food several years, including p. 16
production, especially in the
rapid growth in agricultural INVESTING IN developing world. value chains as one avenue of
productivity and income for PRODUCTIVITY transformative collaboration.
African farmers. Proposed G20: Yara's CEO Jørgen
actions included initiatives Ole Haslestad was a mem- MICRONUTRIENTS
to leverage catalytic finance ber of the Task Force on FOR HEALTH
and reinforce capacity for Food Security, established IFA: Yara’s general crop
regional trade. Other actions by the Mexican presidency nutrition and specializedYara Impact Review 2012 / 15
micronutrient knowledge the implementation of best Imaging the crop
is drawn upon in several agricultural practices as the
international forums. most viable solution. Several Yara continued its digital
of Yara’s principles were innovation in 2012, adding
Balanced fertilization
In 2012 Yara’s senior scien- accepted in public documents the new smartphone app
[…] increases resource
tist, Dr. Kevin Moran, was and policies for the region. ImageIT to its range of
use efficiency by
a member of the editorial Key innovations have been mobile tools for growers.
crops, particularly the
committee of the three- tailored to the challenges of
efficiency of nitrogen
volume scientific review the Baltic Sea region and are The ImageIT app essentially
and water use.
‘Fertilizing Crops to Improve recommended by EU Baltic turns a smartphone camera
Human Health’, issued Sea flagship projects, among The International Fertilizer into a high-tech crop nutrient
by the International Plant them the p. 18 Yara N-Sensor Industry Association (IFA) scanner. It analyzes images
Nutrition Institute (IPNI) and and the P-trap project to trap in 'Increasing Agricultural taken by growers and cal-
Productivity to Mitigate
the International Fertilizer phosphorous in the field. culates the nitrogen uptake
Greenhouse Gas Emissions',
Industry Association (IFA). Paris, 2012 in the crop based on leaf
The review was launched CLIMATE CONFERENCE cover, color and fraction of
at the COP18 in Doha. COP18: World leaders con- brown leaves. The growers
vened for the 18th Conference receive the nitrogen rate
of the Parties in Doha, Qatar along with quality assured
in November–December 2012. fertilizer recommendations
ENVIRONMENT that will increase the yield
In 2012 Yara remained com- Yara was present at the and quality of the crop.
Message from Yara:
Your oilseed rape crop
mitted to developing and COP18, where the p. 17 has currently taken
up 100 kg N/ha.
Yara recommends a
delivering environmental Sahara Forest Project pilot ImageIT is a highly advanced
2nd N application of
70 kg/ha.
solutions for agriculture, facility outside Doha was yet user-friendly and flexible
industry and society through unveiled. At the COP Yara agricultural tool. It is largely
both innovative technologies participated in a session of insensitive to camera type
and policy dialogues argu- long-term fertilizer demand and is available in selected
ing for improved practices. forecasting to 2050, includ- markets for iOS, Android
Crops
ing the controversial ‘Peak and Windows Mobile. In
EU AGRICULTURE Phosphate’ hypothesis. poor signal areas pictures
Precise tools
CAP: In 2012 Yara contin- can be stored offline and
ued to take part in processes COOL FARMING Yara’s tools for precision growers can also receive
on farming within the CFI: Yara is one of the found- farming range from the handy nutrient reports via email.
ImageIT and CheckIT mobile
European Union (EU), the ing partners of the Cool Farm apps to the tractor-mounted
company’s largest market. Institute (CFI), a not-for- p. 18 N-Sensor. ImageIT joins the two other
profit organization promoting Yara apps CheckIT and
Issuing a position paper on agricultural practices that TankMixIT. The first helps
the future of the EU’s Com- reduce GHG emissions. growers identify and correct
mon Agricultural Policy nutrient deficiencies in their
(CAP) towards 2020, Yara Launched in May 2012, the crops. The latter provides
advocated the provision of CFI’s mission is to enable advice on the suitability of
incentives to improve resource millions of growers to make spray mixtures with the Yara-
use efficiency and promote better informed on-farm Future Forum: Vita range of foliar products
good agricultural practices. decisions that improve their and other agrochemicals.
environmental impact. Focus- Yara participated in the 5th Easy to use, the three apps
‘Forum for the Future of
BALTIC: In 2012 the EU ing on GHGs first, the insti- Agriculture’ (FFA) event in keep Yara’s knowledge read-
launched its ‘Blueprint tute provides the Cool Farm Brussels, Belgium in March ily at hand for customers.
to Safeguard Europe’s Tool (CFT), a free support 2012, where Yara’s Head of
Downstream Egil Hogna held
Water Resources’, build- tool that helps growers mea- a presentation on sustainable
ing on the 2000 Water sure the carbon footprint of agriculture and its future
Framework Directive. crop and livestock products. role at the heart of the EU’s
Common Agricultural Policy
(CAP).
In 2012 Yara launched a By 2012 the CFT had been
position paper describing used on about 30 different
the company’s approach crops worldwide. As of 2013,
and engagement in the Bal- Unilever requires all its sup-
tic Sea region, pointing to pliers of fruits and vegetables
Impact chronicle16 / Yara Impact Review 2012
Fertigation
to complete the CFT for a YARA
sample of at least 30 farmers
per crop, amounting to over
responds
10,000 farmers worldwide. Yara aims to grow its business and explore
Dripline Dripline
new opportunities by developing and delivering
CAP AND TRADE
N P K solutions addressing
N global
P K challenges.
ETS: Entering its phase III Mg Ca Mg Ca
in January 2013, the Euro-
N N
pean Union’s Emission In 2012 Yara continued toCa
Water + Nutrients
NEW VISION
Trading System (EU ETS) contribute agronomic and At the WEF 2013 Annual
includes European nitric acid Fertigation environmental solutions Meeting the New Vision for
plants for the first time. within the three areas where Agriculture (NVA) initiative
Yara is the industry leader
the company can make the presented a report highlight-
within fertigation – the
All of Yara’s nitric acid plants practice of applying soluble most impact: resources, food ing new models for action.
had installed catalyst tech- fertilizers along with water and the environment. Yara
through an irrigation system.
nologies for reducing GHG also expanded its participa- Yara participated in the devel-
emissions ahead of time, tion in value chains, regarding opment of the NVA, launched
making the economic impact this as a way to help boost in 2010, and has remained a
of the ETS neutral for Yara. sustainable food production member of the Project Board.
while demonstrating the The initiative has catalyzed a
BURGER BUNS effectiveness and efficiency number of multi-stakeholder
LCA: Global food com- of the company’s solutions. partnerships in Africa,
panies are eager to reduce Asia and Latin America,
their carbon footprints. One Green Week 2012: including the regional part-
of these is McDonald’s. nership p. 13 Grow Africa.
Yara participated in the
European Union’s (EU) Green RESOURCES
In 2012 Yara’s agronomic Week Conference ‘Every Drop Yara is addressing the global The report highlights model
R&D center Hanninghof Counts’ in Brussels in May,
challenges of water scarcity partnerships like the coffee
presenting the company’s
helped McDonald’s Europe solutions regarding water by improving water use value chain in Vietnam,
examine the carbon footprint scarcity and resource use efficiency, turning this con- to which Yara is a part-
(CFP) of bakery products efficiency. straint to agriculture into ner. Another example is
by studying the production a business opportunity. . the development of infra-
of wheat grain. Yara carried structure and value chains
out scientific trials on how to In 2012 Yara stated its ambi- along a growth corridor in
produce high quality wheat tion to be the market shaper Tanzania, a concept orig-
at the lowest possible CFP. for water scarce agriculture inally launched by Yara.
and the leading supplier
of crop nutrition solutions VALUE CHAINS
responding to water scarcity Yara has engaged in several
issues. The water innovation food value chains, helping
platform Yara launched in to increase food security
2011 guides the compa- and economic develop-
Better buns
ny’s efforts to provide new ment, as well as providing
McDonald's and Yara solutions. Several projects business opportunities.
together examined the carbon
have been initiated based
footprint of bakery products
in 2012. on the platform, includ- In 2012 Yara reaffirmed its
ing the development of engagement in food value
water footprint sensors. chain developments by con-
tinuing its participation in
existing initiatives in Ghana,
Mozambique, Tanzania and
FOOD Vietnam. Yara also commit-
Yara has identified agricul- ted to new ones in Burkina
tural productivity as the main Faso, Ghana and Tanzania,
avenue to achieving food as well as expanded its colla-
security in a sustainable way. boration with Nestlé to
look into new coffee
value chain opportuni-Yara Impact Review 2012 / 17
ties, potentially in Africa Tanzania respectively, with Greening the
and Latin America. the intention of continuing desert
ongoing initiatives as well
GROWTH CORRIDORS as establishing more food In 2012 the visionary idea
After launching the Agri- value chains. New initiatives of growing food in the des-
cultural Growth Corridors covered include rice value ert, utilizing solar power
(AGC) concept at the United chains in Ghana and Burkina and seawater, was realized
Nations in 2008, Yara has Faso, and two to three value through the Sahara Forest
been a catalyst in the estab- chains under SAGCOT. Project’s (SFP) pilot facil-
lishment of two corridors At a pan-African level Yara ity outside Doha, Qatar.
in East Africa: The Beira is undertaking a significant
Agricultural Growth Corri- business development activity The project, which is
dor (BAGC) in Mozambique to identify the most com- supported by Yara and
and the Southern Agricul- petitive location to develop its joint venture Qafco,
ture Growth Corridor of a world-class fertilizer pro- We should involve opened its greenhouses
Tanzania (SAGCOT) are duction facility, taking into the private sector. for guests during the p. 15
inclusive public-private consideration a range of Proactively. COP18 in Doha in Decem-
partnerships for agricul- factors including pricing of ber, offering vegetable
tural transformation. raw material, infrastructure JAKAYA KIKWETE snacks grown using solar
developments and location President of Tanzania power and salt water.
African Green Revolution Forum,
In SAGCOT a Greenprint was relative to market potential. Arusha 2012
developed in 2012 as a green The overall local and regional The SFP is a pioneering
growth investment framework potential for agricultural environmental project
to ensure that the corridor development is of critical with a unique approach to
development is environmen- importance, where a manu- food security and climate
tally sustainable, socially facturing facility can act as change, using restorative
equitable and economically a catalyst for growth and practices to establish veg-
feasible. The strategy aims underpin the viability of etation in desert areas.
to help large numbers of sustainable food production.
farmers move from being Yara signed the cooper-
subsistence producers to gen- KNOWLEDGE TRANSFER ation agreement to build
erating marketable surpluses. The transfer of knowledge a pilot facility in February
» yara.com/sustainability to farmers is a key to sus- 2012, paving the way for
tainable agriculture. In construction and testing.
BOD: In June 2012 Yara's 2012 Yara continued its Crop Nutrition The project aims to produce
Board of Directors and CEO interaction with local grow- The Yara Crop Nutrition food, fresh water, clean
Jørgen Ole Haslestad were ers around the world. concept offers growers a energy and biomass using
received by the President of unique package of products proven green technologies.
and services, bringing local
Tanzania, Jakaya Kikwete, to Yara shared its knowledge on answers to global challenges.
discuss SAGCOT progress. crop nutrition and fertilizer » yara.com/sustainability
The Board of Directors visited application with growers in
Tanzania where the construc- several ways; through p. 15
tion of Yara’s new fertilizer fertilizer application tools and
terminal in Dar es Salaam by engaging farmers in local
commenced in 2012. This is meetings, often in connection
a corridor project scheduled with demonstration plots.
for completion in 2013. Farmers’ meetings were held
in several countries, including Fertilizer innovation:
GROWTH COMMITMENTS Ghana where Crop Clinics Yara CEO Jørgen Ole Haslestad
In connection with the launch in the form of open forums served as Chairman of the
International Fertilizer
of the p. 13 New Alliance sev- and field-based one-on-one
Industry Association (IFA)
eral global businesses signed consultations allowed farm- Standing Committee on
Letters of Intent (LoI), com- ers to discuss strategies for Innovation and Research in
2012.
mitting to invest in Africa. increased farm productivity
and efficiency. In Thailand
Yara signed LoIs with the Yara aimed at reaching about
governments of Ethiopia, 60,000 farmers at 1,200 work-
Ghana, Burkina Faso and shops throughout 2012.
Impact chronicle18 / Yara Impact Review 2012
will collect and provide inven- POWERFUL SALTS
ENVIRONMENT tory data to aid decisions R&D: In 2012 Yara launched
Yara has identified reduced and communication on the a new grade of potassium
emissions as a major global eco-impact of food products calcium nitrate, a salt that
issue to which it can contrib- and processes. The project Benchmark reduces cost and improves
ute sustainable solutions. will be completed in 2015. technology performance in concentrated
solar power (CSP) plants.
The tractor-mounted N-Sensor
CLIMATE COMPATIBILITY BRAZILIAN PARTNERSHIP reads nitrogen requirements CSP systems use mirrors
R&D: Improving agricultural R&D: Efficient use of crop and adjusts fertilizer application or lenses to concentrate
productivity is the main nutrients and their environ- rates as the tractor moves across sunlight and heat water, oil,
the field.
avenue towards achieving mental impact on production or molten salts. The stored
food security while pro- systems in tropical soils heat is then converted to
tecting the environment. is the core of the research
agreement between Yara and electricity when needed.
In Tanzania Yara looks at Empresa Brasileira de Pesquisa Yara’s solution reduces the
climate compatible, susta- Agropecuária (Embrapa). melting point of the molten
inable intensification of Through the agreement signed salt and is less corrosive. This
maize and rice production. in November 2012 the world makes the molten salt more
Field trials conducted in leader in crop nutrition and versatile and reduces cost
2011–12, continuing in 2013, a world leader in agronomic significantly for CSP plants.
indicate significant increases research joined efforts to
in crop productivity as well investigate agronomic effi- EMISSION TERMINATORS
as farmer profitability as ciency and carbon footprint NOX: In 2012 Yara’s NOx
a result of improved input on different crops in Brazil, abatement solutions saw con-
application. At the same one of the fastest-growing tinued strong growth, further
time the carbon footprint economies in the world. reducing global emissions.
(including potential land use
Plantmaster Yara is the world’s largest
change emissions) has been Embrapa is the largest Yara launched its first producer of AdBlue/DEF/
radically reduced compared research institution in Brazil Plantmaster nutrient guide ARLA 32, the reagent used
for sugar cane in 2012.
to traditional practices. and a key contributor to the in NOx abatement in vehi-
country’s agricultural growth. cles. Demand for the reagent
The project, conducted in Brazil has become one of the continued to grow in 2012,
partnership with Syngenta world’s largest agricultural particularly in the USA. Yara
of Switzerland, Tanza- producers, with significant also launched its product
nia’s Sokoine University of
Agriculture and the Nor-
potential for increases in
acreage and yields. Yara fur- 866,000 tons
in the Brazilian market and
closed several supply agree-
wegian University of Life ther strengthened its position ments with leading producers
of NOx emissions were cut in
Sciences, is linked to the in Brazil in 2012, aiming to 2012 by Yara’s deliveries of
of heavy-duty vehicles.
development of p. 16 growth become the country’s num- abatement solutions.
corridors in East Africa. ber one fertilizer company. In the industrial market for
NOx abatement Yara has
FOOD ECO-IMPRINT SWEET SUCCESS become a global leader in
WFLDB: In 2012 Yara joined CANE: Sugarcane is a major SNCR systems. Following
with other key stakeholders crop in Brazil, especially as the acquisition of Petro-
in founding the World Food feedstock for biofuel product- Miljö in 2011, YaraMiljö
Life Cycle Analysis Data- ion. In 2012 Yara launched its has emerged with a united
base (WFLDB), aimed at first sugarcane PlantMaster portfolio of chemicals, tech-
charting the environmental to support productivity nology and services. In 2012
impact of the food industry. improvements. Yara also YaraMiljö sold a record-high
introduced its Crop Nutrition 28 systems, contributing
A full life cycle approach is program ‘Longevita’in 2012. to reduced NOx emissions
needed to understand and Brazil is by far the world’s from industry worldwide.
assess the environmental largest, and a highly efficient, YARA’S BIRKELAND PRIZE
2012 was awrded to Dr. Yun
impacts, risks and oppor- producer of sugarcane. Still, Cheng for her doctoral thesis
tunities connected to food productivity can be improved ‘Hydrodynamics and Freeze
production and consumption, based on Yara’s recommenda- Out Problems in Energetic
Heavy Ion Reactions’, carried
of which carbon footprint is tions and use of the N-Sensor out at the University of Bergen,
one element. The databases technology. Norway.Yara Impact Review 2012 / 19
Thriving on partnership
5 years of transformative collaboration:
Maize for prosperity
Ghana Grains Partnership
Partnering to improve maize productivity
and increase farm profitability
Value chain intervention
Engaging throughout the food value chain
to enhance food production
1
Prosperity in Ghana
1 Maize: With good harvests, Ghana is practically AN AFRICAN SUCCESS STORY.
self-sufficient in maize. 2 Cocoa: Ghana ranks
among the world’s leading exporters of cocoa.
2
Agriculture is the economic backbone.
Economic growth has been consistent.
Ghana is moving towards prosperity.
Prosperity in Ghana1
20 / Yara Impact Review 2012
“Now, I can even
afford to send my
children to school.
Mohammadu Nindow
Maize farmer
Prosperity in Ghana
+5%
GHANA was the black star of Africa’s GOLD used to be the main contributor
quest for independence. Again, to Ghana’s coffers, before and after
the West African country shines independence, competing with
bright – hailed as the continent’s cocoa as the main foreign exchange
premier development success story. earner. Even with oil and gas adding
After years of consistent economic revenues, and more than half of the
growth, Ghana in 2012 entered the 25 million inhabitants now living in
During the past 25 years Ghana has ranks of low middle-income countries. urban areas, agriculture remains the
recorded annual agricultural growth The country is on track to reach the backbone of Ghanaian economic
of more than five percent.1 first of the Millennium Development development and social fabric –
Goals: to cut poverty in half by 2015. creating jobs and food security.You can also read
