Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Occupational Health and Safety
• Community Development
• Corporate Governance
• Human Rights

Environmental Achievements

• Reduced emissions by over 154,205 tons of CO2eq by replacing traditional energy sources with more efficient and renewable sources.
• 70.5% of total water consumed was reused water, requiring only 29.5% fresh water.
• Recovered and/or reused 529,618 tons of materials.

Social Achievements

• Reduced occupational disease rate to zero in the Transportation Division.
• Reduced the incident rate by 40% and the severity rate by 60% in the Mining Division over the last 5 years.
• Launched the “Plaza Móvil Parral” project, providing literacy training and/or elementary or middle school education to 1,280 adults in 8 months.

Governance Achievements

• Maintained certifications at 12 mines under OHSAS 18001 in Mexico and Peru.
• No incidents of corruption were reported in Grupo México in 2016.
• The Board of Directors was comprised of 14 members, 9 of which are independents.

Climate Goals & Targets

Environmental Challenges

• Inconsistent growth in the Transportation Division due to seasonality of certain sectors and economic region characteristics.
• Insecurity on some transportation routes.
• Climate change risks including intense rains and droughts.

Mitigation Strategies

• Strategies to minimize insecurity on routes (preserving right of way, split-level crossings, stronger regulatory mechanisms).
• Engineering projects to reinforce water management systems and improve water reuse.
• Multi-year improvement program to protect facilities against climate events (reinforcing roads, bridges, track, drainage).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Assessment of suppliers' legal compliance (environmental and labor history, permits).
• Requirement for contractors to have technical expertise and adhere to health and safety policies and Code of Ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Intense rains and droughts

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and renewable energy sources

Reporting Standards

Frameworks Used: GRI G4 (Core option), AccountAbility AA1000APS (2008)

Certifications: OHSAS 18001 (Mining Division), ISO 14001 (Mining & Infrastructure Divisions), ISO 9001 (Infrastructure Division)

Third-party Assurance: Independent third-party assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Casco de Plata “Jorge Rangel Zamorano” prize (Mining Division)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced emissions and energy needed to produce a ton of copper from 2014 to 2017 in the Mining Division.
• Prevented the emission of 559,866 tons of CO2eq by consuming clean and renewable energy produced by the Infrastructure Division.
• Remediated 192 hectares of industrial land in San Luis Potosi.

Social Achievements

• Completed major projects boosting social and economic development in Mexico, Peru, and the United States, totaling US$13.80 billion in investments.
• Made voluntary investments totaling US$322 million in community development, health, training, infrastructure, and services.
• Provided 266,440 comprehensive medical services through Dr. Vagón.
• Trained nearly 500 people in different trades and over 400 youth gained work experience through the ‘Forjando Futuros’ program in Peru.

Governance Achievements

• Included in the Mexican Stock Exchange (BMV) IPC Sustainability Index for the seventh year and the S&P Dow Jones Sustainability MILA Pacific Alliance Index (DJSI MILA) for the first time in 2017.
• Five companies in the Infrastructure Division received the distinction as socially responsible companies (ESR) for the first time in 2017.

Climate Goals & Targets

Environmental Challenges

• Four collaborators lost their lives on the job in 2017.
• Illegal work stoppages at operations in Peru.

Mitigation Strategies

• Ongoing efforts to identify risks and prevent accidents to reach the goal of ZERO ACCIDENTS.
• Agreements signed with unions involved in work stoppages in Peru.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Assessment of legal compliance in terms of environmental and labor history; requirement for permits; assessment of technical expertise; adherence to health and safety policies and procedures; compliance with Grupo México Code of Ethics; selection of local suppliers and contractors.

Climate-Related Risks & Opportunities

Physical Risks

• Intense rains and droughts

Transition Risks

• Regulatory risks
• Financial risks

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 (Core option, Mining and Metals, Construction and Real Estate sector supplements), AccountAbility AA1000APS (2008)

Certifications: ISO 14001 (four mines)

Third-party Assurance: Independent verification according to the scope set in the independent assurance report

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Socially Responsible Companies (ESR) distinction (Infrastructure Division)

Environmental Metrics

ESG Focus Areas

• Climate change
• Human rights
• Community relations
• Occupational health and safety
• Water management
• Mine waste management

Environmental Achievements

• Reduced fresh water consumption by 6.6% while copper production increased by 11.7%
• 18.6% of electricity from renewable sources
• 85% of tailings confined in dams built with a downstream method
• Reduced GHG emissions by more than 774,000 tons of CO2 equivalent

Social Achievements

• Dr. Vagon Health Train delivered medical services to more than 360,000 people
• Invested US$29 million in infrastructure and services to strengthen social wellbeing
• Rolled out Community Grievance Mechanism in Mining Division in Mexico and Peru
• All Grupo México-sponsored schools in Mexico and Peru reported academic results above the national average

Governance Achievements

• Published General Human Rights Policy
• Implemented a Behavior-Based Safety System in 47% of Mining Division business units
• Migrating OHSAS 18001:2007 to ISO 45001:2018 in all operations

Climate Goals & Targets

Environmental Challenges

• Several fatalities occurred in 2019
• Increased injury frequency rate by 14.8% in the Mining Division
• Climate change impacts on water resources
• COVID-19 pandemic

Mitigation Strategies

• Strengthening prevention and training programs to achieve zero fatal accidents
• Investing in infrastructure and new technologies to improve responsible water use
• Developing a COVID-19 response protocol, including donations of US$26 million in supplies in Mexico and US$5 million in Peru

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Forjando Futuro program for supplier training

Climate-Related Risks & Opportunities

Physical Risks

• Water stress

Transition Risks

• Not disclosed

Opportunities

• Renewable energy projects

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 45001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Contribute to the United Nations Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Biodiversity
• Waste
• Occupational Health and Safety
• Human Rights
• Local Communities
• Indigenous Populations
• Business Ethics
• Corporate Governance
• Economic Performance

Environmental Achievements

• Reduced operating greenhouse gas emissions by almost 8% compared to 2019
• Approximately 20% of electricity consumed came from renewable sources

Social Achievements

• Reduced employee injury rate by 44% in the Mining Division, 30% in the Transportation Division and 25% in the Infrastructure Division
• Invested US$79 million in programs to improve water quality and volume over the last five years
• Donated US$30.8 million to strengthen public health institutions and care for vulnerable families

Governance Achievements

• Established a COVID-19 Committee to manage the pandemic response
• Created a Compliance Office with a Chief Compliance Officer for each division
• Aligned internal practices to manage climate risks according to TCFD recommendations

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Supply chain disruptions
• Climate change related risks (droughts, etc.)

Mitigation Strategies

• Implemented COVID-19 protocols and support programs
• Developed alternative sourcing strategies
• Implemented adaptation measures to increase operational resilience

Supply Chain Management

Responsible Procurement

• Code of Ethics
• General Human Rights Policy
• Tax compliance
• COVID-19 Protocols

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Extreme weather events

Transition Risks

• Regulatory changes
• Carbon pricing

Opportunities

• Increased demand for copper in clean technologies

Reporting Standards

Frameworks Used: GRI Standards (Core option, Mining and Metals sector supplement), SASB, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Independent review

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 6
• Goal 7
• Goal 9
• Goal 12
• Goal 13
• Goal 17

Investments and expenses in projects that contribute to the UN Sustainable Development Goals

Sustainable Products & Innovation

• Copper for clean technologies

Awards & Recognition

• Cascos de Plata awards
• Great Place to Work certification

Environmental Metrics

ESG Focus Areas

• Occupational Health and Safety
• Diversity and Inclusion
• Community Development
• Climate Change
• Biodiversity
• Water and Effluents
• Mining Waste
• Supply Chain
• Human Rights
• Indigenous Peoples
• Corporate Governance
• Business Ethics

Environmental Achievements

• Received The Copper Mark certification for La Caridad open pit mine and Sonora Processing Plant.
• 5,849,378 specimens produced in reforestation program (18% more than in 2021).
• Received Wildlife Habitat Council (WHC) certification for Buenavista del Cobre Wildlife Conservation Center.

Social Achievements

• 6 SCC operations in Mexico received ELSSA safe and healthy workplace recognition.
• Casco de Plata Award and 1st place for rescue brigades at the 16th National Competition for Mine Rescue Teams (Mexico).
• 48.9% increase in training hours compared with 2021.
• 96.4% of non-union personnel participated in an annual performance review.

Governance Achievements

• Formalized a Sustainable Development Committee under the Southern Copper Corporation Board of Directors in 2022.
• Created a Climate Change Office in 2022 to monitor climate strategy implementation.

Climate Goals & Targets

Environmental Challenges

• Significant impact on the ecosystem due to uncontrolled release of chemical substances.
• Serious impacts on the ecosystem due to acid drainage from impoundments.
• Significant impact on air quality due to emissions of fugitive dusts or gases.
• Significant impact on the ecosystem from the release of mining waste.
• Serious injuries to personnel due to improper operation of mine vehicles, sliding slopes, contact with electricity, handling of explosives, falls from height, explosions in pyrometallurgical processes and pressurized containers, deficient ventilation, falling rock, and fire inside the mine.

Mitigation Strategies

• Implemented a Critical Risk Log in 2022, informed by the ICMM Good Practice Guide on Health and Safety Critical Control Management.
• Focus on risk prevention, responsible planning, design, building, and operation.
• Various practical tools to protect human rights of communities, employees, and suppliers/contractors.
• Compliance with national and local regulatory frameworks on indigenous peoples and communities.
• Grupo México Action Protocol with Indigenous Communities (2020).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for Suppliers, Contractors and Relevant Business and Commercial Partners

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing mechanisms
• Global decarbonization scenarios

Opportunities

• Increase revenue
• Reduce emissions
• Low-emission supply chain

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: The Copper Mark, ISO 14001, ISO 45001, ELSSA (6 operations in Mexico), Wildlife Habitat Council (WHC)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligned with UN Sustainable Development Goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Casco de Plata Award
• 1st place for rescue brigades at the 16th National Competition for Mine Rescue Teams

Environmental Metrics

ESG Focus Areas

• Workplace Health & Safety
• Climate Change
• Local Communities
• Environmental Compliance

Environmental Achievements

• Increased renewable energy consumption from 19% to 33% in 2023, surpassing the 2027 target.
• Reduced GHG emissions by 3.7% in 2023.
• Reduced water usage per ton of crushed ore by 18% over the last four years.
• Reforested 3,484 acres (1,410 hectares) in 2023, 2.1 times more land than affected by operations.

Social Achievements

• Increased number of women employees by 22% in 2023.
• Increased investments in benefit of communities by 8.5% in 2023.
• Largest contributor to education infrastructure projects in Peru in 2023 (five high-performance schools).

Governance Achievements

• Improved Grupo México rating by 13% in Sustainalytics annual Mining and Metals assessment (compared to 2021).
• Improved Southern Copper Corporation rating by 16% in Sustainalytics annual Mining and Metals assessment (compared to 2021).

Climate Goals & Targets

Environmental Challenges

• Three fatal accidents involving company personnel and one involving a contractor in 2023.
• Increase in accidents in 2023 in the Infrastructure Division's Construction line of business.
• Increase in GHG emissions by 7.7% in 2023 in the Transportation Division due to increased cargo volume.
• Gaps in compliance with the Tailings Systems Policy.

Mitigation Strategies

• Ongoing promotion of safety culture through campaigns and programs.
• Development of a system that penalizes omissions in procedures and acknowledges safe practices.
• Implementation of a Critical Risk Registry to strengthen supervision.
• Strategy to increase the use of renewable energy and improve fuel consumption efficiency.
• Work plan to close identified gaps with the global standard for tailings facilities.

Supply Chain Management

Supplier Audits: 490 onsite inspections in Mexico in 2023

Responsible Procurement

• Code of Conduct for Business Partners
• Code of Conduct for Suppliers, Contractors and Relevant Business or Commercial Partners
• Dow Jones Risk & Compliance tool

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortages

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

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

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3
• 7
• 8
• 11
• 12
• 13
• 15

Investments and programs contribute to these goals through workplace health and safety, renewable energy, community development, infrastructure, waste management, climate action, and biodiversity.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Casco de Plata award
• Safe and Healthy Workplace Environment recognition
• Great Place to Work for Women certification

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Action

Environmental Achievements

• Renewable electricity consumption at Grupo Mexico increased from 19 to 32%, enabling the Mining Division to reach its 2027 target ahead of schedule by consuming at least 25% of its electricity supply from renewable sources.
• Group's greenhouse gas emissions decreased by nearly 4% in 2023 compared to 2022.

Social Achievements

• Successful social programs in education, healthcare, and productive development implemented in Peru to improve the quality of life in the region.
• Promotion of agricultural and livestock activities in the Tambo Valley and support for growth in manufacturing, fishing, and tourism in Islay, Peru.

Governance Achievements

• For the third consecutive year, Grupo México was included in the Sustainability Yearbook 2024 by S&P Global, meaning it is within the top 15% of the best-rated companies in sustainability in the mining and metals sector.

Climate Goals & Targets

Environmental Challenges

• Buenavista operation experienced difficulties with its water supply in 4Q23.
• Inflationary pressures worldwide impacting net cash cost.

Mitigation Strategies

• Actions taken in 1Q24 to cover water requirements for Buenavista, ensuring sufficient supplies.
• Continuous cost improvement strategy to mitigate inflationary pressures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS® S1

Awards & Recognition

• Sustainability Yearbook 2024 by S&P Global