Mosaic recognizes change may be occuring in critical habitats in our communities and around the world. We are taking a proactive approach to these possible changes, with particular emphasis on improving energy efficiency and waste management. We have made it a priority to improve the use of energy, lower greenhouse gas emissions and prepare for potential climate change-related regulation.

The potential physical risks from climate change, including changes in temperature, precipitation, and the frequency and intensity of natural phenomena, could affect agricultural production. This could lead to certain regions of the world becoming less conducive to agriculture, while other areas become more productive. Some scientific models predict that certain crop varietals will fare better with temperature increases, while others predict the opposite. To prepare for these possibilities, Mosaic has established partnerships with major universities around the globe to develop crop nutrients that pair well with seeds that can tolerate wetter or dryer conditions.

Mosaic is also a partner in the Global Landscapes Initiative (GLI) at the Institute on the Environment at the University of Minnesota. The GLI's Crop Mapper program uses data from NASA to help identify changing global patterns in irrigation, crop nutrient usage and yields — very important information if changes in precipitation patterns become severe.

Rising sea levels and the increased incidence of floods could be disruptive to our existing transportation infrastructure and logistics. Mosaic is also dependent on the capacity of a number of key ports to handle its imports and exports. To mitigate these risks, Mosaic has a focus on hurricane preparedness at all facilities that are within the zone of risk. Mosaic has plans at all its facilities for dealing with extreme weather events, including our port facilities, with respect to storm surge.

There is the potential for new regulations that may restrict our operating activities, requiring us to make changes in our operating activities and limit our output. Other regulations may require us to make capital improvements, increase energy efficiency, and manage our raw materials usage and transportation. Mosaic has taken proactive steps to prepare for these eventualities.

Mosaic also initiated a ROIC Works! (return on invested capital) program in our Phosphate facilities and Momentum 2012 in our Potash facilities to target energy savings through productivity enhancement, operational efficiency analysis and accountability.

Mosaic has formed a Sustainability Steering Committee to ensure transparency and action company wide. This committee will help ensure the company's continued commitment to corporate responsibility and sustainability, including our commitment to monitoring and mitigating the effects of climate change.