The OCP Group, the world leader in the plant nutrition market and the world’s leading producer of phosphate fertilizers, is continuing its efforts to improve its ESG (Environment, Social and Governance) indicators. The extra-financial rating agency Sustainalytics and the independent organization CDP (formerly Carbon Disclosure Project) have submitted their respective annual ratings relating to the monitoring of performance in this area.
Sustainalytics, which identifies the ESG risk levels of companies for investors, awarded this year 2022 a score of 24.4 (an improvement of 3.1 points compared to 2021) to the OCP Group. The latter thus rose to 4th place out of a total of 65 companies evaluated in the “Agricultural Chemicals” category. This score confirms the solidity of the group’s strategies, practices and policies in the field of sustainable development, thus renewing the “Strong” character of its management and management of ESG risks, i.e. the highest level of the scale.
In the same vein, the CDP is an independent organization that encourages companies, cities, states and regions to disclose their environmental impacts and reduce their greenhouse gas emissions. CDP’s annual climate assessment and publication is widely recognized as the benchmark for corporate climate transparency. As early as 2021 for its first year of membership, CDP recognized the OCP Group for its efforts in transparency and communication on climate change by awarding it a B score, corresponding to the “Management Level” category, for an average of B- of assessed companies. This year, while the average fell to C, the OCP Group stayed the course by obtaining the A- score and integrating the “CDP Leadership Level”, which recognizes companies that are leading the way in terms of reducing emissions, mitigating climate risks and promoting a low-carbon economy.
Sustainalytics rewards OCP Group’s ambitious decarbonization strategy
This year, the Sustainalytics agency was particularly attentive to the progress of the OCP Group’s decarbonization roadmap. Indeed, the group has published for the first time the scope 3 of its Carbon Footprint, the widest scope for calculating the carbon footprint including all indirect emissions upstream and downstream of its production cycle (purchase of materials raw materials, transport and travel, etc.), in addition to scope 1 (linked to its direct activity) and scope 2 (indirect emissions linked to its electricity consumption) that the group had previously published.
Sustainalytics has thus improved the indicator linked to the disclosure of its CO2 emissions (from 75 to 100/100), but also the scores assigned to the carbon footprint reduction program (from 50 to 100/100) and the greenhouse gas risk management (from 50 to 100/100).
Sustainalytics also recognized OCP Group for the good management of risks related to water management with a score of 100/100, thus highlighting the decisions taken by the group in 2021 with a view to accelerating its Water program, to face the context of water stress in Morocco, where the group is based.
It should also be noted that Sustainalytics confirmed the group’s good performance on the social aspect. Indeed, the OCP Group stood out on several indicators and obtained 100/100 for its diversity program, its community initiatives, its HSE management (Health, Safety, Environment) and the development of its Human Capital.
CDP positions OCP among organizations demonstrating environmental leadership
By obtaining an A- score in its second year of submission to the CDP, OCP stands out among the most committed fertilizer producers in terms of climate leadership and ambitious on its decarbonization trajectory. Indeed, the group is one of the 24% of companies in the chemical sector to have reached the ‘Leadership Level’, the average of which is around B-.
CDP also recognizes the robustness of OCP’s objectives, obtaining a score of A- for an industry average of C, the solidity of its energy transition program which is rated at A for an industry average of C, and the relevance of its analysis of climate scenarios, its financial plan and its business strategy, rated A for an industry average of B.
OCP Group’s overall ESG performance also recognized by other players and stakeholders
As a reminder, Moody’s ESG (formerly Vigeo Eiris) ranked the group among the “top performers” for its ESG performance, 25th in the world out of 4,952 companies across all sectors (and 1st in its industry and region). OCP notably maintains the “Advanced” level for the 2nd consecutive year.
Another significant distinction in 2021: OCP’s ranking in the Food and Agriculture Benchmark of the World Benchmarking Alliance (WBA), which positions the group in 4th place worldwide out of 350 companies in the food value chain and at the top of the “Agricultural inputs “. These ratings, as well as other world-renowned distinctions and certifications, confirm the ambition of the approach adopted by the group and the relevance of its choices to align with best practices and ESG standards.
OCP Group is committed to achieving carbon neutrality by 2040
In this context, the group undertakes to achieve carbon neutrality by 2040 on scopes 1, 2 and 3, renews its ambition for water self-sufficiency in 2024 and also undertakes that 100% of its electricity needs come from from renewable sources in 2027. These changes reflect the group’s commitment to sustainable development. An ambition in line with Morocco’s strategy in terms of energy transition and which is fully in line with the new Green Investment Program of the OCP group launched on December 3rd. This investment program for an amount of MAD 130 billion provides, over the period 2023-2027, for the increase of the group’s mining and fertilizer production capacities, by leveraging renewable energies and the low-carbon economy. .