As the global population continues to grow, there is little doubt that food security will rank among the world's highest priorities. Today at Mosaic, it already does.

At Mosaic, we recognize that our business can only thrive long term if we act responsibly. The continuous effort of integrating environmental, social and economic goals through global awareness, careful planning and operational efficiency is what we call Social Responsibility. We are constantly configuring and adapting our activities so that we can help the world grow the food it needs, while ensuring the environment remains healthy and productive both now and into the future.

The global population is expected to grow by another one billion by 2030. As the global population continues to grow, there is little doubt that food security will rank among the world's highest priorities. Today at Mosaic, it already does.

Around the world, Mosaic helps farmers boost yields through efficient and responsible use of crop nutrients. Scientists estimate that crop nutrients account for 40 to 60 percent of global crop yields. When farmers optimize their use of crop nutrients, they produce more food on less land, using less water. This helps conserve scarce natural resources, preserves wildlife habitats and protects biodiversity.^(a)

GLOBAL AGRICULTURE INITIATIVES

Improving agriculture in developing countries is a cornerstone of any long-term global food security paradigm. Through our Village Projects in Guatemala and India, investments in Haiti and our work with the Millennium Villages in Africa, our efforts are helping to end the cycle of extreme poverty, hunger and disease.

One of the initiatives that is yielding positive results is our partnership with Millennium Promise, working with seven countries in sub-Saharan Africa. In fiscal 2010, we impacted the lives of 277,000 villagers by donating more than 2,600 tonnes of crop nutrients and transporting them to the Millennium Village clusters. To date, maize yields have nearly tripled on average, supporting a 30 percent reduction in levels of chronic malnutrition among children under two.

The increased yields are not only helping the farmers feed themselves; as surplus crops are sold, they create capital that the villagers can invest to alleviate other areas of need.

In developed countries, Mosaic works to improve farmers' environmental efficiency. We provide farmers with environmentally focused software and online programs that enhance their nutrient applications. These tools provide farmers a competitive advantage by helping them apply crop nutrients with fewer passes over the field, reducing the amount of fuel used. Ensuring that each field receives the optimal amount of crop nutrients prevents over-application, reducing waste and the potential for crop nutrient runoff.

Innovative technologies and management practices are critical tools in meeting the challenges of food security. Mosaic conducts research on over 300 sites globally through a network of university and contract researchers. 2010 was our third year of partnership with HarvestPlus, a global alliance of institutions and scientists seeking to improve human nutrition through new varieties of staple food crops that have higher levels of micro-nutrients. The research is focusing on addressing iron, zinc and vitamin A deficiencies among the global poor — three of the 10 leading causes of illness and disease in developing countries.

SUSTAINING OUR ENVIRONMENT

Since 2005, Mosaic has reduced direct energy consumption in our U.S. phosphate operations by 23 percent, reducing greenhouse gas emissions and increasing investor returns at the same time.

In Florida, for example, nearly 50 percent of the electrical load in our phosphate operations runs on power we generate ourselves, by capturing excess heat from our production process. That's enough energy saved to power 100,000 homes daily.

We are committed to reducing our carbon emissions through a variety of sustainable practices, including cogeneration of electricity from waste heat and the use of hydro sources of electricity. In 2009, we averted 940,000 metric tonnes of carbon dioxide equivalent, reducing our total Scope 2 carbon emissions by 62 percent over conventional sources of electricity.

We understand the importance of water to a healthy planet, and we are proud of our water conservation efforts. We recycle 95 percent of the water used in our North American Phosphates operations and 82 percent of the water required for our Potash business.

In Florida, we created and now fully fund the Horse Creek Stewardship program to ensure mining activities do not adversely affect this important water source. Government officials continuously monitor the water quality against rigorous standards, and Mosaic issues reports each year to key stakeholders.

Habitat protection is always a top priority. We have placed a conservation easement on 16,588 acres in Central Florida, ensuring the long-term protection of precious lands and waters. We reclaimed and released 4,527 acres of land in calendar 2009.

Sustainability is also a priority for our company's infrastructure. Mosaic at Circa FishHawk, our new Florida headquarters, home to about 400 employees, has earned us a Leadership in Energy and Environmental Design (LEED) Gold certification due to its design and construction, which includes the latest in green technology.

Our commitment to social responsibility requires us to use our resources wisely to produce positive outcomes for our communities and our investors while preserving and protecting the environment. We believe this is the only path to long-term sustainable success. By honoring the triple bottom line, we will help the world grow the food it needs more efficiently and with a minimal impact on the environment.