Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility and Well-Being
• Fair and Transparent Governance

Environmental Achievements

• Reduced ammonium hydroxide waste by 81% at a Brazilian site, with a 90% cost reduction.
• Reduced methanol losses by approximately 70%, saving nearly $155,000 annually since 2020 at a Brazilian site.
• Installed a Regenerative Thermal Oxidation (RTO) system in Neot Hovav, Israel, incinerating more than 20 tons of organic material emissions annually.

Social Achievements

• 94% active participation rate in the 401k plan for eligible US employees (vs. 78% peer average).
• 90% of 401k participants achieving a 10% saving rate (vs. 48% peer average).
• Average annual employee 401k contribution of $9,166 (vs. $7,183 peer average).
• Implemented a new DEI training program in 2022.
• Maintained consistent employee engagement and commitment scores (82% and 76% favorable, respectively) from 2017 to 2021.
• Donated $20,000 USD to hospitals in Brazil and provided food baskets to local communities during the COVID-19 pandemic.
• Matched $50,000 USD in employee donations to Ukraine relief organizations.

Governance Achievements

• Implemented a Code of Business Conduct and Ethics with annual employee review and acknowledgement.
• 85% compliance rate with Code of Conduct training.
• Established an ethics hotline (EthicsPoint) for anonymous reporting of concerns.

Climate Goals & Targets

Environmental Challenges

• Climate change could have a material adverse impact on operations and customers’ businesses.
• Potential for increased bacterial resistance to antibiotics used in food-producing animals.
• Competition in the animal health market.

Mitigation Strategies

• Companywide ESG initiative to address climate change risks.
• Working with regulators and veterinarians to ensure responsible antibiotic use.
• Investing in R&D to develop innovative products and solutions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

UN Sustainable Development Goals

• No Poverty
• Zero Hunger
• Decent Work and Economic Growth
• Responsible Consumption and Production
• Climate Action

Report describes how healthy animals contribute to these SDGs.

Sustainable Products & Innovation

• Bioaugmentation solutions (Osprey Biotechnics)
• pHi-Tech® poultry vaccination system

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility and Well-Being
• Fair and Transparent Governance

Environmental Achievements

• Reduced ammonium sulfate waste by 65% and landfilling of ammonia salts waste by 250 tons per year (approximately 30%) at the Neot Hovav facility in Israel.
• Reduced purified water consumption by 78,000 liters per year at the Sligo, Ireland facility.
• Reduced CO2 emissions by 22 tons per year at the Sligo, Ireland facility through energy management improvements.
• Achieved "Zero Waste to Landfill" at the Sligo, Ireland facility.
• Phibro Brazil’s Bragança Paulista location eliminated 90% of its methanol and ammonium sulfate waste.
• Phibro Argentina completed construction of a new state-of-the-art hazardous waste storage area.

Social Achievements

• Employee engagement and commitment scores remained consistent in 2017 and 2021 with 82% responding favorably for engagement and 76% for commitment.
• Implemented a new, mandatory DEI training program in 2022.
• Achieved annual goal to reduce fleet safety incident claims and costs.
• Phibro Bragança Paulista - Brazil achieved 5 years without work-related accidents.
• Expanded mentorship program to 36 participants in 2022.

Governance Achievements

• Performed second annual global Strategic Risk Assessment.
• No cases of terminations or contracts not being renewed due to suspected business ethics breaches or corruption in the reporting period.
• No legal proceedings regarding business ethics or corruption.

Climate Goals & Targets

Environmental Challenges

• Significant challenges in the South American Region’s human resources department related to implementing a new HRIS, integrating an acquired company, internalizing payroll, and implementing new controls, all during a global pandemic.
• Global macroeconomy and its impact on financial performance.

Mitigation Strategies

• Leveraged the diverse backgrounds, strengths, and preferences of the employee base to overcome HR challenges.
• Annual global Strategic Risk Assessment and review of progress and the evolution of the external landscape.

Supply Chain Management

Responsible Procurement

• Statements in contracts with business partners and suppliers obligating them to follow all applicable laws, rules, and regulations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

Phibro's products and services contribute to food security, animal health, economic development, and reduced environmental impact.

Sustainable Products & Innovation

• pHi-Tech® vaccination system
• TAbic® tablet vaccine technology
• Abundance® microbial fertilizer solution

Awards & Recognition

• Top Rural 2021 award for Responsible Livestock Challenge campaign in Brazil

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility and Well-Being
• Fair and Transparent Governance

Environmental Achievements

• Recycles all cardboard, wooden pallets, steel and polyethylene drums at Omaha, Nebraska facility.
• Quincy, Illinois facility transitioned to a new supplier of zinc sulfate that exclusively utilizes recycled zinc.
• Implemented energy efficiency measures across operations, including energy-efficient boiler systems, bioreactors, LED lighting, and collaboration with utilities for renewable energy.
• Piloting a shrink-wrap plastic system for pallets in Quincy that uses 60% less film.
• Complies with Rever Institute’s Reverse Logistics program in Brazil, with at least 22% of product packaging recycled.
• Facility improvements in Sligo, Ireland, include a rain garden and rooftop solar panels.

Social Achievements

• Welcomed over 300 new employees in 2023.
• Ongoing investment in employee development, including LinkedIn Learning platform with over 1,200 training hours completed.
• 66% lower workplace safety incident rate than the national average.
• Omaha Vaccines facility secured National Safety Council award for fifth consecutive year.
• Phibro Brazil’s Making a Difference program supports local nursing homes, children’s homes, and schools.
• Global mentoring program with 64 participants in 2023.
• Participation in Taasuka Shava mentoring program in Israel to aid integration of people with disabilities into the workforce.

Governance Achievements

• Global ESG Council chaired by CFO and sponsored by an independent Board director.
• Rigorous materiality assessment conducted, including stakeholder surveys.
• Third-party verification of data and calculation methodologies.
• Board of Directors oversees strategic and business planning, monitors performance, and assesses internal controls.

Climate Goals & Targets

Environmental Challenges

• Outbreaks of animal diseases could significantly reduce demand for products or availability of raw materials.
• Perceived adverse effects on human health linked to consumption of food derived from animals using Phibro's products.
• Restrictions on the use of antibacterials in food-producing animals.
• Potential FDA withdrawal of approval of Mecadox product.
• Competition from large and small companies.
• Negative effects of weather conditions and availability of natural resources.
• Negative impacts of pandemics on business, financial results, and supply chain.
• Climate change impacts on operations and customers' businesses.
• Actions of regulatory bodies.
• Consolidation of customer groups and emergence of large buying groups.
• Controlling costs and expenses.
• Misuse or extra-label use of products.
• Rising costs and reduced customer income.
• Heightened competition from generics and advances in veterinary practices.
• Unanticipated safety or efficacy concerns.
• Dependence on suppliers with current regulatory approvals.
• Raw material price fluctuations and limited availability.
• Natural and man-made disasters.
• Business interruption from political and social instability.
• Terrorist attacks.
• Changes in tax rates and exposure.
• Successful implementation of strategic initiatives.
• Adverse economic market conditions and currency fluctuations.
• Failure of product approval, R&D, acquisition, and licensing efforts.
• Product liability claims, legal proceedings, and litigation expenses.
• Impact of current and future laws and regulatory changes.
• Modification of foreign trade policy.
• Dependence on Israeli and Brazilian operations.
• Increased or decreased inventory levels at customers or distributors.
• Substantial level of indebtedness and debt-service obligations.
• Restrictions imposed by covenants in debt agreements.
• Risk of work stoppages.

Mitigation Strategies

• Robust risk and crisis management, including collaboration with Guarulhos Integrated Emergency System Group (SIEG) in Brazil.
• Implementation of various policies and programs to mitigate risks related to data security, cybersecurity, and ethical marketing practices.
• Continuous improvement across ESG realms, adapting to industry standards and exceeding stakeholder expectations.
• Emphasis on science and data-driven decision-making, compliance, integrity, and responsible business practices.

Supply Chain Management

Responsible Procurement

• Sourcing of metals and minerals from secondary ore.
• Use of recycled zinc in Quincy, Illinois facility.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: SASB, GRI

Third-party Assurance: Third-party verification of data and calculation methodologies by a top environmental consulting firm.

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 3 (Good Health and Well-being)
• SDG 13 (Climate Action)

Phibro's work in animal health and nutrition contributes to food security, improved health outcomes, and reduced greenhouse gas emissions.

Sustainable Products & Innovation

• Microbials for plant protection
• Autogenous vaccines
• TAbic® IBVAR206 vaccine
• Salmonella vaccines
• pHi-Tech® PVX vaccine management system
• Magni-Phi® nutritional specialty product

Awards & Recognition

• National Safety Council award (Omaha Vaccines facility)