Three of the ten polluting factories in Israel in 2021 are in the refinery complex

(haipo) – The factories Bezan, Carmel Olifinim and Gadiv, are among the ten most polluting factories in Israel and all three are located in the refinery complex in Haifa Bay. This is what the negative environmental impact report for 2021 states, published today (14/8/23) by the Ministry of Environmental Protection.
The lives and health of the residents of Haifa and the Kiryat are in danger. All eyes are now on the promotion of the factory evacuation plan by the Israeli government.
In about a month, the index for 2022 will also be published.

The announcement of the Ministry of Environmental Protection:

Who are the ten factories with the most negative environmental impact in Israel: The Ministry of Environmental Protection publishes the "Red List" - the index of the environmental impact of the factories in Israel: KIL Rotem Ampert, BaZen, Paz Beit Zikok Ashdod, Carmel Olfins and Alcon are at the top of the index

Minister of Environmental Protection, Idit Silman: "Environmental risks are financial risks, and thanks to the Environmental Impact Index of the Ministry of Environmental Protection, the investors in industrial companies - the institutions that manage our pensions, savings and investments - receive a significant risk management tool. The realization of an environmental risk may result in losses for the shareholders And the bonds of the companies that pollute the environment - losses that could reduce the savings that are supposed to serve us all at retirement age. The companies must make sure to act according to the principles of environmental responsibility, and minimize risks to public health and the environment, and know that if they do not act in this way - the Ministry will use all the means at its disposal"

At the beginning of September 2023, the Ministry of Environmental Protection will publish the level report and emissions findings based on the year 2022

For the 11th year, the Ministry of Environmental Protection is publishing the Environmental Impact Index of the Ministry of Environmental Protection for 2021, which presents to the public the environmental risk data from publicly and government-owned industrial plants. The index provides the public with comparative and simple information on the performance and environmental risks of public companies with a large environmental impact and the factories they own. The index helps companies to conduct themselves in a more responsible manner, in accordance with ESG (corporate and environmental responsibility management) principles.

The index examines in depth the environmental risk of 45 public companies and 123 large industrial plants. The preparation of the index was done with the help of DHVMED. According to the scoring method in the index, the higher the rating - the greater the negative impact on the environment and the greater the environmental risks.

The index is the main tool for information on the level of environmental risk of companies, compiled by a government agency, and allows investors in public companies to receive simple and direct information on their level of risk. In the last year, the ministry updated the methodology for calculating the index in order to simplify and improve it. Among the updates that were made, the method of scoring environmental non-compliance was changed so that it would focus on violations for which some enforcement action was taken, activity without a business license or impermissible emission or transfer into the environment. Also, a positive element was added to the 2021 index: recognition of the obligation within the "zero hour" mechanism of the Ministry of Environmental Protection. As part of the process of updating the methodology, stakeholder dialogue and public consultation were carried out, and simulations were carried out on previous index data in order to analyze the effects of the new methodology on the ranking. The results of the index for 2021 are according to the new methodology, and the 2020 data will also be comparable according to the same methodology.

In the index for 2021, the ICL Rotem plant (Rotem Ampert), which is owned by the listed companies Israel Society and ICL Group, was ranked as the plant with the highest negative environmental impact with a 3% increase in the score compared to 2020. It is followed by negative "stars" on the list of Israel's red plants: In Zan, Paz Ashdod refineries, Carmel Olipinim, Alcon Naut Hovav Recycling Center, Leviathan, Shpadan, Gadiv, Israel Electric Company - Orot Rabin and Rahat MTS.

The ranking of the environmental impact of the public companies, which points out and presents the rate of their exposure in direct or indirect ownership of all holdings, ranks the ICL Group company as public in first place. After her: Electra, oil refineries, Generation Capital, Israel Electricity Company, Israel Society, Alcon, Paz Oil Company, Mekorot and Shikon and Binui.

The outstanding findings of the index:

• At the top of the index for 2021 is the ICL Rotem plant (formerly Rotem Ampert) with a 3% increase in the score from 2020 and with 516 negative points. The majority of the score for the plant was given due to an administrative order issued in 2021 for violations of wastewater discharge, infrastructure violations, and exceeding pollutant emissions into the air. In 2020, a financial sanction was issued to the plant due to irregularities in emissions of pollutants into the air. An additional negative score is given to events from 2019 that include violations of the conditions of the emission permit, failure to submit documents and reports on time, as well as one-off incidents of hazardous materials. Also, the plant has a high score due to the amount of emissions and transfers to the environment. It should be noted that recently, as part of a mediation process in a state class action against the company due to the incident of the spill into Nahal Ashlim, on behalf of the entire public, a compensation amount of NIS 115 million was determined for the environmental damage caused by the plant.

• In second place with the most negative environmental score is the oil refineries plant (Bazan). The factory received a negative score on enforcement procedures from 2021 for exceeding pollutant emissions into the air as well as for a hazardous materials incident of a benzene leak during emptying that occurred in 2020. In 2020, the factory was convicted in a legal proceeding for a fire in a hazardous materials tank that occurred in 2016. In addition to that, the factory was issued Administrative order on failure to upgrade an infrastructure facility. During this year, various violations were recorded and warnings were given for violations of air emission abnormalities, poor operation and discharges to the sea. Another negative score was given for hearings held for the company for irregularities in the emission of pollutants into the air as well as the imposition of a financial sanction for not handling a hazardous materials incident as required. The factory in advance has a high score due to the amount of emissions and transfers to the environment.

• In the ranking of companies traded at the top of the index for 2021 is the ICL Group company, with an upward trend in the ranking between 2018-2020, which means a greater environmental impact, and a trend of improvement in 2021. ICL owns a number of factories that stand out in the ranking of factories, including ICL Rotem and Mamalei Yam the salt.

The ten factories with the most negative environmental impact:
Index 2021 | High score = high environmental risk potential

The ten companies the public having the most negative environmental impact:

Extension - explanation of the index's components:

The index is made up of several components that are multiplied by each other:
• The company's environmental impact: pollutant emissions into the air, sea, stream, land, wastewater discharges, waste generation, use of hazardous materials, sensitivity of the plant's location (proximity to the population and water sources). Based on data from the Environment Emissions Register (MPLAS).

• Supervision and enforcement: Violations of the provisions of the law and regulations on environmental protection that were discovered as part of supervision and enforcement by the Ministry of Environmental Protection.

• Environmental management: a positive score for activities to improve environmental performance that are not required by law: the existence of environmental management systems, environmental optimization, voluntary environmental reporting.

Financial regulators in many countries are expanding the disclosure and risk management duties in companies and financial entities, and an example of this is the disclosure and implementation of sustainability risks legislation enacted by the European Parliament in 2019-2020. In accordance with the global trend, in recent years the financial regulators in Israel have published guidelines and recommendations dealing with aspects of reporting on the performance and environmental risks of companies: in 2021, the Securities Authority published updated recommendations for the disclosure of information on environmental risks from the activities of companies (as part of aspects of environment, society and corporate governance), and in 2022 issued guidelines that include disclosure instructions for fund managers and large investment portfolios. In addition, the Capital Market Authority, Savings Insurance and the Supervision of Banks have published in the last two years new guidelines on the disclosure of information about environmental risks.

The index published by the Ministry of Environmental Protection is part of a global trend that works to expand the supply of available information about the environmental performance of business entities. The purpose of expanding the supply of information is to serve the rising demand among investors and business entities, when according to OECD and Bloomberg estimates, financial assets (such as funds and bonds) totaling more than 40 trillion dollars are managed while incorporating environmental and social considerations into the investment decision-making processes. The upward trend even indicates that the amount is expected to reach approximately 50 trillion dollars as early as 2025. The index is an important pillar in these trends, being a tool that assists in assimilating risks and environmental considerations in financial and business decision-making processes.

The Union of Haifa Bay Cities reported to Haifa News Corporation:

Nothing has changed in the new index published by the Ministry of Environmental Protection, which reinforces the importance of promoting the plan to close BZN. Year after year, the Bezan Group leads the list of dangerous and polluting factories in the country with its three plants. Furthermore, it can be learned that both the Bezan plant and the Carmel Olefinim plant worsened their environmental impact this year compared to the year before. We witness dozens of anomalies in the emissions of these factories throughout the year, from the chimneys and the torches, and recognize that the most polluted area in the Haifa metropolis is the area surrounding the Bazen Group. And despite the serious environmental impact of these factories, the Bazen Group promotes plans for the renewal of the complex, which include the construction of tanks new ones, new production facilities and even a power plant which we claim will increase emissions in Haifa Bay. This, when the plan for the rehabilitation of Haifa Bay, TMA 75, will receive government approval this year, and the entire complex will be vacated within the current decade.
It is important to note, the index published by the Ministry of Environmental Protection is an index based on criteria that facilitate with the factories such as the score that can be violated only in case of enforcement, while we know that the enforcement is not complete.

The chairman of the Union of Cities, attorney Sharit Golan said:

The three factories of the Bezen Group are among the top ten most polluting factories in Israel. The sum of the scores of the three factories located in Haifa Bay makes the group the most polluting factory in Israel, that is, the most dangerous factory. This is exactly the time when the heads of the authorities in Otef in Ze'an should lend a shoulder together with the government ministries and bring TAMA 75 to the approval of the National Council for Planning and Construction. The right of the residents of the Haifa metropolis to clean air and a healthy life should prevail over any economic or planning consideration of one authority or another.

The organization 'Cleaning up the Haifa Bay' told Lahi Fe:

As in every index publication, so also this time, the three Bezan Group plants "star" in the top ten. As in every publication, and due to being in one complex and involved in this activity, we claim that if they were examined as one plant, they would lead the table by a considerable margin. In the index This, in two of the three factories there was a deterioration compared to the previous index.

This year, we wonder to what extent the index achieves its goal and whether with its publication, the state's responsibility ends, and this in light of the fact that last year, the institutional bodies rallied to support and promote a huge haircut of about a billion NIS alongside the raising of new capital for the Bezan Group and its buyers.

In light of the data presented in the index, the acute need to close the polluting compound in the country as soon as possible becomes acute. We demand the urgent mobilization of the ministry and the directorate for the revival of Haifa Bay to promote a solution to the dispute that arose recently regarding the land designations in the new master plan for the bay, which is delaying its approval.

In contrast to the various publications of KAB in Zean about large investments to prevent pollution incidents and its commitment to the environment, the reality as usual presents a different bleak picture. In addition, the business plan they presented intends to leave the existing situation in practice, so for example the purchase of the plastic recycling plant VPM Plast, does not achieve A reduction in the planned plastic production in the factory as above, in the coming years as well as the production of hydrogen in the factory, which, besides the tiny transport pilot and far from implementation, remains polluting and not green.

We will continue to act against all the relevant factors for the quick end of this saga which translates into damage to the health of the residents of Haifa Bay.

The response of Avihu Han, the candidate for mayor of Haifa, to the polluting factories report:

As every year, once again a publication in which Bezen stars as the second most polluting enterprise in the State of Israel - and the world as usual.
The plant, which sits in the heart of the Haifa metropolis, significantly exceeds its emission permits, produces 40 percent of what it needs abroad and leaves us here in Haifa with death and disease - and the mayors and candidates prefer to deal with other things.
It was not for nothing that yesterday, the Greens led by Avihu Han, went out to demonstrate in front of the Kiryat Ata Yaakov Peretz mayor's office, calling not to delay the evacuation of the polluting factories in Zan.
We did this, because we understand the meaning of every day that Bezan is here and continues to pollute. This is why the factory needs to be closed as soon as possible.
The Greens led by Avihu Han, along with other environmental organizations, have been at the forefront of the struggle for years, initiating the government's decision to evacuate the polluting factories.
Today it is clear to everyone - only Han will kick Bezan.

The oil refineries group (Bazan) stated in response:

"The Bazen Group leads a policy of a responsible transition to clean and innovative energy, alongside providing energy security and maintaining the continued supply of essential products to the Israeli economy. As part of the implementation of its strategy, the Bazen Group invests in groundbreaking technologies in the field of clean hydrogen for transportation, recycling and treatment of plastic waste. The Bazen Group is involved in the effort to reduce carbon emissions and it is currently formulating a long-term plan to reduce carbon emissions in its entire supply chain. In addition, Bazen recently signed an agreement to purchase green electricity, under which approximately 50% of Bazen's average electricity consumption starting in 2026 will be green and save approximately 25 thousand tons of emissions of carbon dioxide into the air per year.

As part of its activities in the field of ESG, Bezen expanded its reporting base in accordance with global standards, which will include reference to its conduct in the fields of the environment, climate and water, energy, social impact and corporate governance. The Bezen Group will continue to implement a responsible policy, after having invested approximately 2.2 billion shekels since the privatization of the group and through this investment reduced pollutant emissions by up to 96%."