Environment, Health & Safety

In order to manage its environmental, health and safety (EH&S) risks, Agrium has established rigorous processes and regular independent reviews to ensure compliance with these processes and all related laws and regulations. Responsible management of EH&S matters must not only be integrated into the value chain, but must be carefully considered as Corporate strategies and action plans are being formulated. For this reason, environmental projects, which prevent or reduce future contamination, are separately identified.

This process is based on the latest ISO 14000 standard and standardizes policy and procedures across the Company. A key element of the process is the EH&S audits. Agrium?s policy is to audit each major production facility every three years, at a minimum, and each retail outlet every two years. Agrium has employees who are qualified to perform compliance, system, process and regulatory EH&S audits. In addition, external EH&S specialists are engaged where appropriate to review the audit processes and standards. Follow-up procedures are also in place to ensure deficiencies are addressed and performance results are reported to the Environment, Health & Safety Committee of the Board of Directors on a quarterly basis.

In addition to ongoing audits of active facilities and farm centres, the EH&S group is also charged with the responsibility to monitor and recommend remedial action on inactive sites and to advise on the environmental and economic implications of future decommissioning of facilities. Other responsibilities of the group include the maintenance, communication and testing of Agrium?s emergency response plan.

Like it was for so many areas of the business, last year was a mixed bag in terms of EH&S performance. Despite general improvement in accident frequency rates, Agrium suffered three employee fatalites - our first since 1997. One - ever - is too many. Environmental performance, in terms of total incidents, were way down, but we experienced a few that were significant.  And the threat warning following the terrorist attacks in the US prompted significant reassessment and improvement of Agrium's security procedures.

Loss data is now being tracked and analyzed by an incident information gathering and analysis tool called Incidenter and used in prevention efforts. The rigor in corporate compliance auditing has risen significantly.  Liabilities associated with predecessor companies are being actively managed, with positive results.  Regulatory change, tracking and influence efforts are at an all time high. Even Crisis Management, preparation for the unthinkable, has undergone significant improvement.

Corporate EH&S focus in 2002 will be on continuing Agrium's five-year plan towards ISO 14001 registration.  Expect company-wide EH&S targets and objectives, a few company-wide standards and lots of training and compliance support, a concerted effort to improve safety performance across the board.?

• 2003 Sustainability Report