Climate Change Data

Freeport-McMoRan Inc.

Climate Impact & Sustainability Data (2020)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:7-9 million metric tons CO2e/year
Scope 1 Emissions:4,229,894 metric tons CO2e/year
Scope 2 Emissions:2,885,925 metric tons CO2e/year
Scope 3 Emissions:600,545 metric tons CO2e/year
Renewable Energy Share:12.1 PJ (2016) to 10.6 PJ (2020)
Total Energy Consumption:86.2 PJ/year
Water Consumption:1,492,352 thousand cubic meters/year
Waste Generated:629 thousand metric tons slag/year, 229,300 metric tons non-mining waste/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental Management
  • Climate
  • Water Stewardship
  • Tailings Management & Stewardship
  • Biodiversity
  • Waste Management & Reclamation
  • Health & Safety
  • Human Rights
  • Workforce
  • Community Engagement & Development
  • Engaging with Indigenous Peoples
  • Anti-Corruption
  • Ethics & Integrity
  • Board & CRC Leadership
  • Responsible Value Chains
  • Product Stewardship
  • Political Spending

Environmental Achievements

  • Met target TRIR of 0.69 (Total Recordable Incident Rate)
  • Achieved zero significant environmental events
  • Achieved zero penalties exceeding $100,000
  • 8% decrease in absolute Scope 1 and Scope 2 global emissions from 2019 to 2020
  • 21% lower absolute Scope 1 and Scope 2 global emissions in 2020 compared to 2016
  • Americas copper operations GHG emissions 6% lower than 2019 and 24% lower than projected 'Business as Usual'

Social Achievements

  • Zero gross human rights violations
  • Positive and collaborative relationships with 15 unions in seven locations worldwide
  • Invested approximately $108 million in community programs (less than the $165 million target)
  • Cumulative enrollment in women’s economic empowerment and leadership programs surpassed 100,000 women
  • All employees met BSR’s living wage benchmark in 14 assessed locations

Governance Achievements

  • 82% of selected employees completed anti-corruption training
  • 58% of employees completed Principles of Business Conduct training, with 82% certification rate of management-level employees
  • ESG metrics accounted for 25% of the annual incentive program (AIP)

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce GHG emissions by 15% per ton of copper cathode in the Americas by 2030 (vs. 2018 baseline)
  • Implement the Global Industry Standard on Tailings Management at all tailings facilities
Short-term Goals:
  • Align climate strategy and disclosures with TCFD recommendations
  • Implement ISO 45001 Health and Safety Management System company-wide

Environmental Challenges

  • Five fatalities at PT-FI operations in Indonesia
  • COVID-19 pandemic impacting operations and community engagement
  • Increased employee turnover (15% in 2020)
  • Lower than target community investments ($108 million vs $165 million)
  • Challenges in engaging remote communities virtually due to unreliable internet access
  • Illegal artisanal mining at PT-FI
  • Water stress in several operating regions
  • Climate change risks (physical and transitional)
Mitigation Strategies
  • Intense efforts underway to enhance fatality prevention programs
  • Implemented wide-ranging COVID-19 mitigation protocols
  • Provided monetary and in-kind support to communities during the pandemic
  • Offered Voluntary Separation Programs (VSP) in North America
  • Shifted to virtual or socially distanced community engagement formats
  • Collaborated with government and partner organizations to address illegal artisanal mining
  • Implementing water use efficiency measures and transitioning to renewable water sources
  • Initiated a comprehensive climate change scenario analysis to identify risks and opportunities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Code of Conduct
  • Freeport Compliance eXchange (FCeX)
  • Ariba Supplier Risk Management system

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Water stress
Transition Risks
  • Capital costs for fuel switching
  • Carbon taxes
  • Carbon emissions caps
  • Renewable energy standards
Opportunities
  • Increased copper demand for renewable energy technologies

Reporting Standards

Frameworks Used: GRI Standards Core option and G4 Mining and Metals Sector Supplement, SASB Metals & Mining industry framework

Certifications: ISO 14001:2015, OHSAS 18001 (migrating to ISO 45001)

Third-party Assurance: Corporate Integrity Ltd.

UN Sustainable Development Goals

  • SDG 12: Responsible Consumption and Production

Freeport aims to contribute to various SDGs through its operations and social investments; SDG 12 is central to its strategy

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Fortune magazine’s 2021 World’s Most Admired Companies list
  • Forbes magazine’s 2020 World’s Best Employers List, America’s Best Employer by State, and Best Employers for Diversity
  • Newsweek’s America’s 300 Most Responsible Companies
  • Points of Light’s 2020 The Civic 50 list
  • Forbes magazine’s 2020 JUST 100 list