Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environmental Stewardship
• Anti-corruption
• Sustainable Agriculture

Environmental Achievements

• Reduced total GHG emissions by 6%
• Reduced GHG emissions per ton of raw material by 1%
• Reduced total water withdrawal by 17%
• Reduced water withdrawal per ton of raw material by 9%
• Reduced total waste generated by 23%
• 60% of total waste reused or recycled

Social Achievements

• Increased employee base by 14% globally (versus 2013)
• 147 managers participated in sexual harassment training
• More than 10,000 hours of employee volunteer work in support of local communities
• 434 days of training for 162 dealers and 810 dealer employees in India
• More than 2,500 farmer meetings reaching more than 150,000 farmers in India
• Nearly 50 factory visits for 994 farmers and 64 dealers in India

Governance Achievements

• Implemented a new data collection system for environmental data
• Netafim India awarded "Best Irrigation Solution Provider of the Year"

Climate Goals & Targets

Environmental Challenges

• Data limitations for certain regions and years
• Challenges in increasing the percentage of women in the workforce in India
• Complexity and expense of dripperline collection and recycling
• Regulatory requirements limiting collection and disposal flexibility

Mitigation Strategies

• Improved HR systems data
• Ongoing efforts to increase women's participation in all roles
• Exploring safe and environmentally favorable solutions for end-of-life dripperlines
• Offering financial incentives for farmer collaboration in dripperline collection

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaborative partnerships with suppliers
• Monitoring supplier performance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 18001

Third-party Assurance: Beyond Business Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Family Drip System (FDS™)

Awards & Recognition

• Netafim India: Best Irrigation Solution Provider of the Year

Environmental Metrics

ESG Focus Areas

• Mass adoption of drip irrigation
• Sustainable productivity
• Enhancing customer capabilities
• Supporting sustainable agriculture policy
• Lean supply chain
• Water conservation
• Employee performance

Environmental Achievements

• 25% water savings and 25% reduction in greenhouse gas emissions for alfalfa growers in the US using drip irrigation
• Zero crop damage for a grower in Denmark using our new irrigation system that combats extremely cold weather
• 60% less water and 20% increase in yield for rice farmers in India using drip irrigation
• 2% reduction in electricity use per ton of raw material at our sites in 2015

Social Achievements

• More than 100,000 farmers in 2015 trained in drip irrigation in over 2,500 events organized by Netafim around the world
• 20% increase in income for sweet potato growers in Israel using drip irrigation
• 5,000 farmers received training in a USAID program featuring Netafim's drip irrigation technology in Kenya
• Monetary and product donations of $367,200 and 12,243 volunteering hours by our employees in 2015
• More than 8,000 farmers trained in China in 2014-2015

Governance Achievements

• 99% of employees received a performance evaluation in 2015
• 300 employees in South America completed e-learning courses in 2015
• Average employee engagement score of 4 (out of 5) based on a 2015 survey
• 37% reduction in injury rate and 27% reduction in lost day rate in 2015

Climate Goals & Targets

Environmental Challenges

• The 2015 planned launch of a large-scale rice irrigation pilot with the Tamil Nadu government and 600 farmers was delayed due to monsoon conditions.
• Susceptibility to harsh cold spells can destroy certain crops.
• Severe spring cold that occurs in many parts of the world can damage the newly-sprouted leaves and buds of deciduous crops.

Mitigation Strategies

• Developed a new fertigation process using dairy wastewater (i.e. liquid manure) that is high in nutrients and and has a positive impact on the health of the groundwater supply.
• Netafim's new Pulsar™ system was designed specifically to combat the cold. It is a sprinkler system that operates with great precision, enabling up to 70% water savings versus the full coverage sprinkler method.
• Our low-flow drippers led not only to greater water savings and efficiency, but also to more uniform yields, helping Primaflor's lettuce conform to high standards for agri-produce.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Erratic monsoons
• Prolonged periods of drought
• Typhoons
• Flooding

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 18001 (Israel)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 5
• Goal 6
• Goal 8
• Goal 9
• Goal 13
• Goal 15
• Goal 17

Netafim’s business and approach have always been aligned with broad sustainable strategy and aspirations with the SDGs upon their introduction so that our stakeholders can be clear about how Netafim supports this important global agenda.

Sustainable Products & Innovation

• Pulsar™ system
• DripNet PCTM

Awards & Recognition

• 2015 Innovative Rice Farmer Award
• Best Irrigation Solution Provider of the Year
• 2015 Excellence in HR Competition
• Industry Award for Social and Environmental Leadership

Environmental Metrics

ESG Focus Areas

• Mass adoption of drip irrigation
• Lean supply chain
• Sustainable productivity
• Water conservation
• Enhancing customer capabilities
• Supporting sustainable agriculture policy
• Employee performance

Environmental Achievements

• 25% water savings and 25% reduction in greenhouse gas emissions for alfalfa growers in the US using drip irrigation
• 2% reduction in electricity use per ton of raw material at our sites in 2015
• 7% increase in recycled waste by 2020 (target)

Social Achievements

• More than 100,000 farmers trained in drip irrigation in over 2,500 events organized by Netafim around the world
• 20% increase in income for sweet potato growers in Israel using drip irrigation
• 60% less water and 20% increase in yield for rice farmers in India using drip irrigation
• Monetary and product donations of $367,200 and 12,243 volunteering hours in our communities in 2015
• Average employee engagement of 4 (out of 5) based on a 2015 survey
• 37% reduction in injury rate and 27% reduction in lost day rate in 2015

Governance Achievements

• 1,000 employees participated in developing our mission, vision and values
• 99% of employees received a performance evaluation in 2015
• Netafim won the 2015 Excellence in HR Competition in the Strategic Partner category

Climate Goals & Targets

Environmental Challenges

• Delayed large-scale rice irrigation pilot in Tamil Nadu due to monsoon conditions
• Need to reduce chlorine use in drip irrigation systems to avoid pollution

Mitigation Strategies

• Collaboration with universities and government institutions to test rice technologies in India
• Multi-year initiative with Bar-Ilan University to develop chlorine-reducing nanotechnology for drip irrigation

Supply Chain Management

Responsible Procurement

• Rigorous manufacturing standards across all plants

Climate-Related Risks & Opportunities

Physical Risks

• Erratic monsoons
• Prolonged periods of drought
• Typhoons
• Flooding

Opportunities

• Increased demand for water-efficient irrigation solutions

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO (multiple sites)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

Netafim's business and approach have always been aligned with broad sustainable development objectives.

Sustainable Products & Innovation

• New fertigation process using dairy wastewater
• Drip irrigation technology for rice cultivation

Awards & Recognition

• Industry Award for Social and Environmental Leadership (Netafim Magal)

Environmental Metrics

ESG Focus Areas

• Human rights
• Labor standards
• Environment
• Anti-corruption
• Sustainable agriculture

Environmental Achievements

• Installed a 680 KW solar array, delivering up to 1,000 MWH per year (around 10% of Fresno site's total power requirements)
• Increased % of recycled waste to a level exceeding 75% by 2020 (target)

Social Achievements

• Conducted 552 days of training for 138 dealers and 800 dealer employees in India
• Held more than 2,500 farmer meetings reaching more than 125,000 farmers in India
• Netafim Agricultural Financing Agency (NAFA) in India provided loans totaling $73 million to 47,000 farmers since 2013

Governance Achievements

• Updated whistleblower accessibility with an online submission option

Climate Goals & Targets

Environmental Challenges

• Low percentage of women in Netafim India's workforce (3%) due to the nature of many roles
• Complex and expensive dripperline collection and recycling

Mitigation Strategies

• Encouraging women to apply for all available jobs in India
• Operating a successful recycling operation in the U.S. through Netafim Recycling, offering financial incentives for farmer collaboration

Supply Chain Management

Responsible Procurement

• Collaborative partnerships with suppliers, monitoring supplier performance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 18001 (Israel factories)

Third-party Assurance: External specialist in CSR/sustainability strategy, reporting and communications

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Drip irrigation contributes to improved water and energy efficiency, increased crop yields, and reduced environmental impact

Environmental Metrics

ESG Focus Areas

• Environmental Health and Safety (EHS)
• Resource Efficiency
• Pollution Prevention
• Labor and Working Conditions
• Community Engagement
• Climate Smart Agriculture

Environmental Achievements

• 73% of solid waste recycled out of a total of 3,400 tons of waste produced in 2017
• 0.51 tons of CO2 equivalents produced per ton of raw materials processed in 2017

Social Achievements

• 2,599 employees received training (an average of 11 hours per employee) in 2017
• 1,851 employees used the company’s iLearn platform in 2017
• Grievance mechanism in place for addressing employee concerns, including sexual harassment

Governance Achievements

• Sustainability Steering Team works alongside the Executive Management Team to set company strategy regarding EHS matters
• Annual senior management review conducted to review EHS performance

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions
• Minimizing environmental impact of raw materials and other aspects of the manufacturing supply chain

Mitigation Strategies

• Tracking GHG emissions and seeking ways to reduce them
• Implementing technically and financially feasible measures for improving efficiency in consumption of energy, water, and other resources

Supply Chain Management

Responsible Procurement

• Inputs obtained from reputable companies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, OHSAS 18001:2007

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 2: Zero Hunger
• SDG 5: Gender Equality
• SDG 6: Clean Water and Sanitation
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 13: Climate Action
• SDG 15: Life on Land

The company's sustainability strategy targets SDGs related to poverty, hunger, gender, availability of water, economic growth, industry and innovation, climate, and biodiversity through actions, education, and operational improvements.