Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Human Rights
• Community Engagement
• Occupational Health and Safety
• Political Risk and Corruption
• Climate Change
• Water Management
• Tailings Management
• Artisanal Mining
• Economic Impacts

Environmental Achievements

• Total direct CO2-e emissions and related direct energy consumption decreased 5 percent and 7 percent, respectively, from 2008.
• Reduced the volume of hazardous waste sent from our operations to landfills by 73 percent since 2007.
• Improved water recycling to approximately 66% of total water use.
• Reduced reportable spills to 26 from 85 in 2008.

Social Achievements

• Invested over $180 million in community programs.
• Improved company-wide Total Recordable Incident Rate (TRIR) by 40 percent compared to 2008.
• Developed company-wide community investment criteria.
• All active mining operations have five-year Community Development and Engagement Action Plans.

Governance Achievements

• Implemented the International Council on Mining & Metals (ICMM) Sustainable Development Framework.
• Established a Sustainable Development Risk Register.
• Formalized adherence to ICMM Fatality Prevention Initiative.
• Developed company-wide guidelines for social investments.

Climate Goals & Targets

Environmental Challenges

• Artisanal mining creating health, safety, and environmental risks.
• Climate change risks (increased costs, regulations).
• Community dependence on operations.
• Labor relations and workforce training.
• Human rights risks (Indonesia and DRC).
• Inherent safety hazards in hardrock mining.
• Political risk and potential for corruption.
• Communicable diseases in operating areas.
• Security incidents (Indonesia).
• Tailings management (stability, spills, water quality).
• Water quality and supply issues.
• Population influx at Tenke Fungurume Mining.

Mitigation Strategies

• Engaging with artisanal miners and authorities.
• Establishing a multi-departmental task force to address climate change issues.
• Implementing community development programs.
• Providing skills development and leadership training.
• Implementing additional human rights training and monitoring.
• Continuously improving safety performance.
• Developing anti-corruption programs and training.
• Supporting and enhancing government health programs.
• Implementing increased security measures in Indonesia.
• Identifying opportunities to reuse tailings.
• Developing company-wide water management plans.
• Implementing Resettlement Action Plan at Tenke Fungurume Mining.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global Supply Chain policy encouraging local suppliers.
• Supplier due diligence program.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Increased costs for operations emitting greenhouse gases.
• Increased cost of electricity and fuels.

Opportunities

• Increased product demand for copper in energy-efficient systems.

Reporting Standards

Frameworks Used: GRI G3, ICMM Sustainable Development Framework

Certifications: ISO 14001

Third-party Assurance: Corporate Integrity

Sustainable Products & Innovation

• Tailings-aggregated concrete
• Tailings bricks and blocks

Awards & Recognition

• 100 Best Corporate Citizens

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Climate Change
• Community Engagement and Development
• Health and Safety
• Human Rights
• Artisanal Mining
• Water
• Tailings Management

Environmental Achievements

• Incurred aggregate environmental capital expenditures and other environmental costs of $372 million (including our joint venture partners’ shares) to comply with applicable environmental laws and regulations.
• Overall TRIR (0.65) improved 12% over 2009, exceeding the company-wide target.
• Completed approximately 81% of targeted remediation work.
• Completed 90% of scheduled reclamation work.
• Generated 147 thousand metric tons of waste, down slightly from 2009 despite increased production.

Social Achievements

• Invested approximately $189 million in community programs, exceeding the 1% target of $166 million.
• Worldwide procurement expenditures with local suppliers were 27% of total expenditures, an increase of 6% from 2009.
• More than 2,100 leaders from our U.S. and South American operations completed leadership training.
• Employees across our operations in Arizona completed 138 community service projects.

Governance Achievements

• Annually publish all material payments to every country in which we operate.
• Conducted tailored anti-corruption training for approximately 70 employees at TFM and anti-corruption awareness training for approximately 320 employees at PTFI.
• Implemented a new Human Rights Risk Assessment process.

Climate Goals & Targets

Environmental Challenges

• Workplace fatalities (2)
• Artisanal mining impacts in Indonesia and DRC
• Potential regulation of greenhouse gas emissions and certainty of water supplies
• Water supply shortages
• Security risks near Grasberg operation in Papua, Indonesia
• Illegal mining activities within the TFM concession
• Human rights allegations against host country security
• Regulatory delays in remediation work

Mitigation Strategies

• Implementing Fatality Prevention Initiative
• Engaging with artisanal miners and authorities
• Developing greenhouse gas emissions plans and implementing energy efficiency projects
• Developing water management/conservation plans
• Working with local authorities to increase control measures
• Implementing human rights training programs
• Addressing recommendations for further development and improvement in emergency response plans
• Continuing remediation and reclamation projects

Supply Chain Management

Supplier Audits: Survey of top five strategic suppliers and contractors

Responsible Procurement

• Global Supply Chain Policy encourages consideration of local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Water supply shortages

Transition Risks

• Potential regulation of greenhouse gas emissions

Opportunities

• Renewable energy facilities

Reporting Standards

Frameworks Used: GRI G3, ICMM Sustainable Development Framework

Certifications: ISO 14001

Third-party Assurance: Corporate Integrity

Environmental Metrics

ESG Focus Areas

• Artisanal Mining
• Community Engagement and Development
• Corruption
• Safety and Health
• Security and Human Rights
• Tailings and Waste Rock Management
• Biodiversity
• Energy Management
• Labor Relations
• Water Supply and Management

Environmental Achievements

• Recycled water accounts for over 70 percent of total water use.
• Completed construction of a desalination plant and pipeline to supply water to Candelaria operation in Chile.
• Cerro Verde operation completed construction of a potable water treatment plant that will serve over 750,000 people.
• Cerro Verde committed to finance and construct a municipal wastewater treatment plant.
• All operations maintain environmental management systems certified to ISO 14001 standards.
• No significant consequence environmental event at any operation since 2008.

Social Achievements

• Completed construction of a potable water treatment plant serving over 300,000 people (over 750,000 at full capacity) in Arequipa, Peru.
• Invested over $1 billion in local communities since 2007.
• Launched a technical training program with the San Carlos Apache Tribe in Arizona.
• 99 percent of PTFI employees were Indonesian, 34 percent indigenous Papuans.
• 98 percent of TFM employees are Congolese citizens.

Governance Achievements

• Updated corporate-level Anti-Corruption Policy and Guidelines.
• Developed and implemented a new online training module focused on the FCPA and other anti-corruption laws.
• Maintains a Compliance Line for reporting potential violations of business conduct.
• Published all material payments to every country in which we operate.

Climate Goals & Targets

Environmental Challenges

• Six work-related fatalities in 2012 (three from a helicopter accident).
• Shooting incidents near PTFI operations resulting in fatalities and injuries.
• Consistent access to clean water in water-stressed regions.
• Approximately 50 percent of labor force covered by collective bargaining agreements, 35 percent expiring within one year.
• Illegal artisanal and small-scale miners (ASM) creating social conflict and environmental impacts.
• Managing waste rock, leach material, and tailings.
• Security risks near PTFI operations in Papua, Indonesia.
• Artisanal mining activities on the TFM concession in DRC.
• Potential regulation of greenhouse gas (GHG) emissions and associated cost increases.

Mitigation Strategies

• Full safety review of global aviation activities.
• Analysis of causal factors of events with potential for fatal consequences.
• Work with government officials on security situation.
• Commitment to promoting and implementing the Voluntary Principles on Security and Human Rights.
• Significant resources into global water management activities (recycled water accounts for over 70% of total water use).
• Developing water supply projects.
• Implementing a combination of audit and assessment programs.
• Site-level assurance of the ICMM Sustainable Development Framework.
• Developing a supplier code of conduct and a supplier due diligence tool.
• Addressing downstream customer requests for sustainability information.
• Monitoring and responding to the interests of the socially responsible investment (SRI) community.
• Updating sustainability targets.
• Enhanced security measures for personnel and material transport at PTFI.
• Engagement with DRC authorities to control illegal ore shipments at TFM.
• Awareness campaigns to educate the community on ASM risks at TFM.
• Focus on energy efficiency and deployment of innovative technologies.

Supply Chain Management

Responsible Procurement

• Developing a supplier code of conduct.

Climate-Related Risks & Opportunities

Transition Risks

• Potential regulation of greenhouse gas emissions.

Reporting Standards

Frameworks Used: GRI G3, ICMM Sustainable Development Framework

Certifications: ISO 14001, OHSAS 18001, ISO 50001 (Atlantic Copper smelter)

Third-party Assurance: Corporate Integrity

Awards & Recognition

• GRI G3 A+ level
• TFM recognized by GBCHealth for its integrated malaria control program
• WHC’s “Corporate Lands for Learning Rookie of the Year” award (PTFI)
• WHC “Conservation Education and Outreach” award (Freeport-McMoRan)

Environmental Metrics

ESG Focus Areas

• Artisanal Mining
• Biodiversity
• Community Engagement and Development
• Corruption
• Energy Management
• Labor Relations
• Safety and Health
• Security and Human Rights
• Tailings and Waste Rock Management
• Water Supply and Management

Environmental Achievements

• Completed internal environmental audits at 10 operations.
• Approximately 63 percent of purchased power was from low carbon or renewable sources.
• Completed LFAs on three reclamation units.
• Large-scale reclamation projects continued at Miami mine in Arizona (more than 1,000 acres reclaimed).

Social Achievements

• Reached agreements on two new Collective Labor Agreements (PTFI and Cerro Verde).
• Community investment totaled $173 million.
• Continued support of STEM education and student performance.
• Advanced investments in women’s economic empowerment programs.

Governance Achievements

• 98 percent of management-level employees completed Principles of Business Conduct training.
• 94 percent of non-management employees completed Principles of Business Conduct training.
• Implemented a new online training module focused on the FCPA and other anti-corruption laws.

Climate Goals & Targets

Environmental Challenges

• 35 work-related fatalities in 2013 (including 28 in a fall of ground event at PTFI).
• Alleged rape by a private security contractor in DRC.
• Fatality of an illegal miner during dispersal by Mines Police in DRC.
• Approximately 1,000 metric tons of tailings spilled from a pipeline near Ojos del Salado operation in Chile.
• Illegal artisanal mining activities at PTFI and TFM.
• Security risks near PTFI operations in Papua, Indonesia.

Mitigation Strategies

• Thorough investigation of the PTFI accident and implementation of corrective actions.
• Review of ground support in PTFI’s underground workings.
• Improvements to inspection and monitoring programs at PTFI.
• Development of a revised ground control management plan at PTFI.
• Implementation of a Take 5 for Hand Safety campaign.
• Development of a web-based due diligence tool for suppliers (FCeX).
• Implementation of Project Development Sustainability Review process.
• Enhanced security surveillance systems and fencing at PTFI.
• Development of alternative livelihoods for artisanal miners at PTFI.
• Engagement with DRC authorities to control illegal mining at TFM.
• Awareness campaigns on risks of illegal artisanal mining at TFM.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (to be released in 2014)

Climate-Related Risks & Opportunities

Transition Risks

• Potential new regulatory requirements or legislation related to greenhouse gas emissions.

Reporting Standards

Frameworks Used: GRI G3, ICMM Sustainable Development Framework

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Corporate Integrity

Awards & Recognition

• Community Empowerment Program Gold Award (PTFI)
• Sustainable Management award (Cerro Verde)
• Award of Excellence for environmental stewardship and wildlife management (Morenci)
• Best Reclamation Project award (Morenci)
• First-place in the category of Health & Beyond: Tackling Root Causes (TFM)

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Workforce
• Safety and Health
• Human Rights
• Communities
• Environment
• Product Stewardship
• Labor Relations
• Tailings and Waste Rock Management
• Water Supply and Management
• Artisanal Mining
• Biodiversity
• Energy Management
• Corruption

Environmental Achievements

• Met target TRIR at 0.56 for 2015.
• Incurred zero significant environmental events.
• Incurred zero penalties more than $100,000.
• Approximately 80 percent of water used was recycled water.

Social Achievements

• Invested approximately $165 million in community programs (93% of target).
• PTFI: 99 percent of employees were Indonesian, 36 percent were indigenous Papuans.
• TFM: 98 percent of employees are Congolese citizens.
• Successfully negotiated a new two-year Collective Labor Agreement at Grasberg operation in Indonesia without work stoppages.

Governance Achievements

• 97% of management-level employees received Principles of Business Conduct training.
• Implemented online due diligence platform, Freeport Compliance eXchange (FCeX), to assess risk in anti-corruption, international trade and human rights.

Climate Goals & Targets

Environmental Challenges

• Three work-related fatalities at mining operations.
• Social and political instability in operating areas.
• Illegal artisanal mining activities creating safety, human rights, and environmental concerns.
• Competition for water supplies in arid regions.
• Increased regulation of greenhouse gas emissions.
• Potential for corruption in local government systems.

Mitigation Strategies

• Fatality Prevention program to eliminate hazards and critical controls reinforced by training.
• Community engagement and development plans to build trust and reduce risks.
• Multi-pronged approach to address artisanal mining (security, government cooperation, stakeholder engagement, alternative livelihoods).
• Water management programs to promote efficient use and alternative water supply projects.
• Modeling of carbon tax scenarios to understand potential impacts.
• Anti-Corruption Policy and Guidelines, along with training and due diligence platform.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Freeport-McMoRan Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Water shortages
• Extreme precipitation events

Transition Risks

• Increased regulation of greenhouse gas emissions

Opportunities

• Energy efficiency improvements
• Renewable energy projects

Reporting Standards

Frameworks Used: GRI G4 core option, ICMM Sustainable Development Framework

Certifications: OHSAS 18001, ISO 14001

Third-party Assurance: Corporate Integrity

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Bat Conservation Action award (Morenci)

Environmental Metrics

ESG Focus Areas

• Biodiversity
• Community Engagement and Development
• Corruption
• Energy Management
• Human Rights
• Labor Relations
• Product Stewardship
• Safety and Health
• Tailings
• Water Supply and Management

Environmental Achievements

• Zero significant environmental events (rating of three or higher on Sustainable Development Risk Register)
• Zero penalties more than $100,000
• Approximately 63 percent of purchased power was from low carbon sources, including natural gas and renewable energy

Social Achievements

• Approximately $142 million invested in community programs across our operations (86% of target)
• Zero gross human rights violations at our operations caused by employees or contractors
• New four-year Collective Bargaining Agreement at El Abra operation in Chile

Governance Achievements

• Annually train 90% of targeted employees who interact with, or have the potential to interact with, government officials on anti-corruption laws, regulations and company policies and procedures

Climate Goals & Targets

Environmental Challenges

• Six work-related fatalities at mining operations in 2016
• Social and political instability in areas of operation may adversely impact operations
• Issues related to corruption may adversely affect business
• Increased regulation of greenhouse gas emissions may increase costs
• Impacts from security risks stemming from events or activities including political instability, labor strikes and civil strife may adversely affect operations
• Prolonged strikes or other work stoppages at our operations can adversely affect our business, our workforce and regional stakeholders
• Managing the volume of tailings, waste rock and leach material produced in our mining operations presents significant environmental, safety and engineering challenges and risks

Mitigation Strategies

• Implementation of Fatality Prevention program to eliminate fatalities
• Implementation of UN Guiding Principles on Business and Human Rights
• Rigid anti-corruption training and reporting program
• Modeling multiple carbon tax scenarios
• Voluntary Principles on Security and Human Rights as guidelines for security and human rights programs
• Open engagement with employees and union leadership to negotiate and uphold labor agreements
• Robust tailings management and stewardship program

Supply Chain Management

Responsible Procurement

• Freeport-McMoRan Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Increased costs relating to changes in energy sources for, and GHG emissions from, our mining operations

Reporting Standards

Frameworks Used: GRI G4 core option, ICMM Sustainable Development Framework

Certifications: OHSAS 18001, ISO 14001

Third-party Assurance: Corporate Integrity Ltd.

Awards & Recognition

• U.S. Department of State’s Bureau of Economic and Business Affairs 2016 Secretary of State’s Awards for Corporate Excellence in Transparent Operations (Cerro Verde)
• Wildlife Habitat Council Avian Project Award (Safford)
• Wildlife Habitat Council Grasslands Project Award (Tyrone)

Environmental Metrics

ESG Focus Areas

• Safety and Health
• Human Rights
• Community Engagement and Development
• Corruption
• Climate-Related Impacts and Opportunities
• Labor Relations
• Product Stewardship
• Tailings
• Water Supply and Management
• Biodiversity

Environmental Achievements

• Achieved 82 percent rate of recycling and reuse of water introduced into systems.
• Approximately 80 percent of global purchased power (FMC) was from low carbon sources.
• No significant environmental events (rating of three or higher on our Sustainable Development Risk Register).

Social Achievements

• Invested approximately $153 million in community programs (99% of target).
• Increased indigenous Papuan employees at PTFI to 41% (up from 36% in 2016).
• Introduced the Papuan Sustainable Human Capital Development program.

Governance Achievements

• Launched updated Freeport-McMoRan Principles of Business Conduct.
• 100% certification rate of management-level employees on Principles of Business Conduct training.
• Implemented online due diligence platform, Freeport Compliance eXchange (FCeX).

Climate Goals & Targets

Environmental Challenges

• Five fatalities occurred in 2017 across global operations.
• Series of sporadic shooting incidents in PTFI project area since August 2017.
• Increased regulation of greenhouse gas emissions may increase costs.
• Social and political instability in operating areas may adversely impact operations.
• Potential physical impacts of climate change on operations and infrastructure are uncertain.
• Security risks stemming from political instability, labor strikes, and civil strife.

Mitigation Strategies

• Fatal Risk Management Program implemented to eliminate fatalities.
• Engaging with Indonesian authorities to address shooting incidents.
• Modeling multiple carbon tax scenarios to understand potential cost increases.
• Reviewing potential adaptation measures for climate change.
• Implementing the Voluntary Principles on Security and Human Rights.

Supply Chain Management

Responsible Procurement

• Freeport-McMoRan Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation and wind events

Transition Risks

• Increased costs from regulation of greenhouse gas emissions

Opportunities

• Purchasing power from renewable energy sources

Reporting Standards

Frameworks Used: GRI G4 core option, ICMM Sustainable Development Framework

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Corporate Integrity Ltd.

Awards & Recognition

• Arizona Mining Association’s 2017 Sustainability, Preservation and Diversity in the Environment award (Safford)
• Wildlife Habitat Council’s (WHC) certifications for 15 sites

Environmental Metrics

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 objective of zero environmental penalties over $100,000
• Met objective of zero significant environmental events
• Reduced carbon intensity per metric ton of copper produced in Americas by 18% versus 2012 levels and 30% lower than Business as Usual projections
• 82% of total utilized water was from recycled or reused sources. Water use efficiency was 87% for 2019.

Social Achievements

• DreamBuilder program trained over 60,500 women across 90 countries
• 9% reduction in childhood anemia rates in Peru
• Incurred zero gross human rights violations at our operations caused by employees or contractors
• Corporate Human Rights Benchmark ranked Freeport-McMoRan 6th among 200 of the largest publicly traded companies, 1st among all North American companies assessed, and 3rd among all global extractives assessed.

Governance Achievements

• 100% certification rate of management-level employees on PBC training
• 100% of selected employees completed anti-corruption training
• Adopted and published new Responsible Sourcing of Minerals Policy

Climate Goals & Targets

Environmental Challenges

• Three fatalities in 2019
• Missed target for Total Recordable Incident Rate (TRIR)
• Higher than target employee turnover rate (9%)
• Dust occurrences at Sierrita
• Increased turnover rate in Europe/Other due to partial sale of Cobalt business
• Missed community investment target ($100 million invested vs. $166 million target)

Mitigation Strategies

• Refreshed health and safety strategy and slogan, Safe Production Matters
• Fatal Risk Management (FRM) program
• Industrial Athlete Program to address low-energy incidents
• Global initiative to strengthen focus on diversity and inclusion
• Additional control measures implemented at Sierrita to address dust occurrences (new tailings dust control management team, wireless GPS system, daily satellite imagery)
• Ongoing efforts to improve water stewardship programs and publish a corporate water report in 2020
• Implementing the ICMM Climate Change Position Statement requirements and working towards TCFD alignment

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing of Minerals Policy
• Freeport Compliance eXchange (FCeX)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding (experienced at El Abra)

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Decarbonization of energy grids

Reporting Standards

Frameworks Used: GRI Standards Core option and the G4 Mining and Metals Sector Supplement, ICMM Sustainable Development Framework

Certifications: ISO 14001:2015 (EMS), OHSAS 18001 (Occupational Health and Safety Assessment Standard)

Third-party Assurance: Corporate Integrity Ltd.

Awards & Recognition

• Forbes Magazine’s JUST 100 (4th consecutive year)
• Corporate Human Rights Benchmark (ranked 1st in North America and 3rd among global extractives)
• Newsweek’s America’s 300 Most Responsible Companies
• Forbes Magazine’s 2019 Best Employers List
• Agenda and HIP Investor’s 10 most transparent companies in S&P 500 for ESG reporting
• Corporate Responsibility Magazine’s 100 Best Corporate Citizens (8th year)

Environmental Metrics

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
• 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
• Achieved zero workplace fatalities across Americas business
• Invested approximately $108 million in community programs
• 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

Climate Goals & Targets

Environmental Challenges

• Five fatalities at PT-FI operations in Indonesia
• COVID-19 pandemic impacting operations and community engagement
• Increased employee turnover (15% in 2020)
• Decreased female representation in the workforce in some regions
• Illegal artisanal mining at PT-FI
• Water stress in some 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
• Offered Voluntary Separation Programs in North America
• Enhanced tracking and disclosure of diversity metrics
• Collaborated with Mimika Government to establish Otakwa as a transportation hub
• Implemented Chile’s voluntary gender equality ordinance at El Abra
• Initiated comprehensive climate change scenario analysis
• Advanced plans for achieving GHG emissions reduction target in the Americas
• Developed global guidance for consistent application of the mitigation hierarchy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Compliance screening processes
• FCeX online due diligence platform
• Ariba Supplier Risk Management software

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's strategy of being foremost in the global copper industry, Copper Mark validation, social impact valuations

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Fortune World’s Most Admired Companies
• Forbes World’s Best Employers
• Forbes America’s Best Employer by State
• Forbes Best Employers for Diversity
• Newsweek America’s 300 Most Responsible Companies
• Points of Light The Civic 50

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced absolute Scope 1 and 2 GHG emissions by 12% from 2018 levels by 2021 due to significant improvements in energy efficiency and grid decarbonization.
• Established 2030 GHG reduction targets for Americas Copper (15% intensity reduction), PT-FI (30% intensity reduction), Atlantic Copper (50% absolute reduction), and primary molybdenum sites (35% absolute reduction).
• Completed first global climate scenario analysis.
• Commenced a scoping study to assess replacing PT-FI’s coal-fired power plant with a gas-fired combined cycle facility fueled by LNG.
• Advanced studies on sea level rise and other potential physical risks.
• Actively collaborating with suppliers to support innovation in equipment and technology.
• Completed multi-year Scope 3 estimate review.

Social Achievements

• Formalized new heat-stress guidelines for global workforce.
• Engaged with Community Partnership Panels (CPPs) on climate change to understand their needs and how Freeport can enhance climate resilience in their communities.
• Committed $4.5 million to rebuild homes damaged by wildfire in Bagdad, Arizona.
• Partnered with regional government to supply motor pumps to protect homes from landslides in Peru.

Governance Achievements

• Enhanced governance by adding climate expertise to the Board.
• Incorporated climate performance into 2021 annual executive compensation (10% of ESG component of AIP).
• Signed letter of commitment to submit 2030 targets to SBTi.
• Established internal carbon shadow prices ($50, $100, and $150 per metric ton of CO2 equivalent).

Climate Goals & Targets

Environmental Challenges

• Mining is energy-intensive and generates significant GHG emissions.
• Supply chain disruptions due to climate events (extreme weather, water stress).
• Lack of organized electric power markets in southwestern U.S. hindering grid decarbonization.
• High carbon intensity of PT-FI's coal-fired power plant.
• Absence of commercially viable alternatives to diesel-fuel haul trucks.
• Potential sulfur market volatility and/or supply disruptions due to sharp decline of oil and gas production.
• Evolving carbon pricing policies and regulations.

Mitigation Strategies

• Developing abatement curves to assess and prioritize decarbonization projects.
• Progressing Copper Skies initiative to integrate renewable energy (up to 450MW) into power supply.
• Evaluating opportunities to incorporate more renewable energy in Peru and Chile.
• Constructing a new dual-fuel power plant at PT-FI (initially biodiesel, evaluating LNG transition).
• Joined Caterpillar's Early Learner program and Komatsu's GHG Alliance for zero-emissions mining truck development.
• Conducting trials of 400-ton diesel-electric haul trucks at Cerro Verde.
• Evaluating in-pit crushing and conveying and trolley assist routes at Cerro Verde.
• Implementing digital twin technology and energy management systems.
• Implementing Haul Truck Operator Scorecards (HTOS) to improve haulage efficiency.
• Advancing sulfide leaching technologies to reduce energy and GHG emissions.
• Initiating Leach to the Last Drop program to optimize leaching and enhance recovery rates.
• Integrating internal carbon shadow pricing into decision-making processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Actively collaborating with suppliers to support innovation in equipment and technology.
• Engaging with suppliers to address climate-related risks in the supply chain.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation
• Extreme heat
• Water stress
• Sea level rise

Transition Risks

• Technology risks (lack of low-carbon alternatives for heavy equipment)
• Policy risks (rapidly changing regulations)
• Market risks (sulfur market volatility, changes in sources of sulfur supply)

Opportunities

• Increased copper and molybdenum demand due to growth in renewable energy technologies and electric vehicles.
• Lower energy prices due to rapid grid transition.
• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: TCFD, GHG Protocol, ICMM, Copper Mark

Certifications: ISO 14064, ISO 50001 (Atlantic Copper)

Third-party Assurance: GHD Limited (GHG emissions inventory), Corporate Integrity Ltd. (limited assurance of Climate Report)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Human Rights
• Responsible Supply Chains
• Ethics & Compliance
• Health & Safety
• Workforce
• Communities & Indigenous Peoples
• Climate
• Biodiversity & Land Use
• Tailings Management
• Water Stewardship

Environmental Achievements

• Continued to reduce GHG emissions intensity in the Americas (2.5% achieved versus 15% target for 2030) and PT-FI (26% achieved versus 30% target for 2030)
• Developed absolute GHG emissions reduction targets for primary molybdenum sites (35% target for 2030) and Atlantic Copper smelter and refinery (50% target for 2030)
• Achieved Copper Mark at all 12 copper producing sites globally
• Achieved Molybdenum Mark at two primary molybdenum mines and four copper mines producing byproduct molybdenum
• Water use efficiency averaged 88% in recent years
• Reclaimed more than 472 hectares of overburden stockpile areas at PT-FI, including more than 17 hectares in 2022

Social Achievements

• Invested $177 million in community programs globally in 2022
• Achieved statistical parity for total compensation for employees (gender pay equity)
• Removed college degree requirements from many positions to eliminate barriers and provide new opportunities for career development
• Continued to maintain positive and collaborative relationships with unions representing employees

Governance Achievements

• 100% of employees received training on Principles of Business Conduct, including 100% certification rate of management-level employees
• 100% of selected employees completed anti-corruption training
• ESG metrics accounted for 25% of the executive annual incentive program

Climate Goals & Targets

Environmental Challenges

• Contractor fatality at Morenci
• Increase in total recordable incident rate
• Higher-than-normal turnover rate in North America
• Labor shortages in North America
• Three instances of underage workers employed by subcontractors at Manyar smelter project
• Slower-than-planned progress on renewable energy integration due to market and permitting challenges

Mitigation Strategies

• Enhanced training
• Renewed emphasis on active visibility and engagement by leaders
• Strengthened oversight and interaction with contractor workforce
• Root cause analysis and corrective/preventative actions at Manyar smelter (enhanced worker screening, bi-weekly meetings, Human Rights Ambassador program)
• Collaboration with Caterpillar and Komatsu on zero-emissions mining trucks
• Preliminary scoping study to assess replacing PT-FI's coal-fired power plant with LNG

Supply Chain Management

Responsible Procurement

• Business Partner Code of Conduct
• Responsible Sourcing of Minerals Policy
• FCeX online due diligence platform
• SAP Ariba Supplier Risk Management and Supplier Lifecycle and Performance onboarding tools

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water stress

Transition Risks

• Regulatory changes
• Market shifts
• Sulfur supply deficits and price volatility

Opportunities

• Development of energy-efficient products
• Replacing coal-fired power plant with LNG at PT-FI

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2021), G4 Mining and Metals Sector Supplement, SASB Standards for Metals & Mining industry

Certifications: ISO 14001, ISO 45001, Copper Mark, Molybdenum Mark

Third-party Assurance: Ernst & Young LLP (limited assurance)

Awards & Recognition

• S&P Global Sustainability Yearbook 2023
• CNBC’s 2023 JUST 100
• 3BL Media’s 100 Best Corporate Citizens