Corporación Nacional del Cobre de Chile (CODELCO)
Climate Impact & Sustainability Data (2015, 2016)
Reporting Period: 2015
Environmental Metrics
Total Carbon Emissions:5,474,069 tCO2e/year
Scope 1 Emissions:1,586,922 tCO2e/year
Scope 2 Emissions:3,887,147 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:13,580 GWh/year
Water Consumption:177,862,000 m3/year
Waste Generated:93,826 tons/year (non-hazardous) + 201,344 tons/year (hazardous)
Carbon Intensity:3.2 tons of CO2e/FMT
ESG Focus Areas
- Economic performance
- Environmental management
- Social performance
- Occupational health and safety
- Community relations
- Indigenous peoples
- Corporate governance
Environmental Achievements
- No severe or very severe environmental incidents (except one severe incident in September at Salvador division)
- 95% emission capture goal set for all divisions by 2018-2019
- Closure of 10 social-environmental vulnerabilities and 40% progress in total gap closure
- Improved water recirculation (78.5%)
- Reduction of GEI emissions (5.5 million tons of CO2e in 2015, lower than 5.7 in 2014)
- Approval of mine closure plans for all eight divisions
Social Achievements
- Zero fatalities in 2015
- 31% reduction in global accident frequency rate (own and contractor workforce)
- 39% reduction in global severity rate (own and contractor workforce)
- Strategic Governance Agreement signed with Copper Workers Federation (FTC)
- Increased female participation in workforce (8.9%)
- Successful completion of six collective bargaining agreements in four divisions
- Community investment projects totaling approximately $5,670 million
Governance Achievements
- Implementation of new ethics and transparency standards
- Establishment of a whistleblower line (222 reports received)
- Improved corporate governance model
- Appointment of committees to oversee economic, environmental, and social matters
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Consolidate implementation of new environmental risk management system
- Close gaps/mitigate risks associated with social-environmental vulnerabilities
- Update corporate environmental regulatory instruments
- Achieve 95% emission capture in all divisions by 2018-2019
- Zero severe/very severe environmental incidents
Environmental Challenges
- Low international copper prices
- Aging deposits with lower mineral grades
- Increased energy costs
- Social-environmental vulnerabilities
- Need to update internal regulatory instruments
- Need to improve communication with communities
Mitigation Strategies
- Cost containment plan (US$1,203 million in savings)
- Implementation of the Environmental Risk Management System (SGRA)
- Implementation of the Management System for Health and Safety in the Workplace and Operational Risks (SIGO)
- Development of a new community relations model
- Increased investment in sustainability projects (US$479 million)
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Public bidding processes
- Upgraded procurement portal
- Development of new supplier relationships (mainly from China)
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI G4
Certifications: Null
Third-party Assurance: KPMG
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Gabriela Mistral division awarded Iguala and Conciliación Seals
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- Occupational health and safety
- People
- Environment
- Communities and territory
- Strategic Innovation
- Business and Corporate Governance
Environmental Achievements
- Significant progress in smelter emissions to meet new environmental requirements (US$ 1.8 billion invested for 95% capture rate of SO2 and As emissions)
- Implementation of a management system for environmental incidents, resulting in improved results since 2009 (though 2016 saw 2 very severe and 5 severe incidents)
Social Achievements
- Financed 68 community investment projects totaling 4,744 million pesos, focusing on human capital, territorial development, socio-environmental commitments, and indigenous peoples.
- Creation of the Ventanas Children's Symphony Orchestra, engaging over 60 young people from the community.
- Comprehensive medical agreement in Alhué providing medical care to 2,400 community members, including mental health services.
Governance Achievements
- Establishment of a Master Plan for Sustainability, defining short, medium, and long-term objectives for the next 25 years.
- Updated Corporate Sustainability Policy addressing critical challenges to enable economic activity within its social and environmental context.
- Implementation of a new corporate standard for community relations (NCC 39).
Climate Goals & Targets
Short-term Goals:
- Reduce freshwater consumption per treated ton by 10% by 2020.
Environmental Challenges
- Reducing freshwater consumption per treated ton by 10% by 2020.
- Two very severe and five severe environmental incidents in 2016.
- Sanction proceedings initiated by the Superintendence for the Environment (SMA) for non-compliance with environmental regulations at Ventanas and El Teniente Divisions.
Mitigation Strategies
- Implementation of efficient water management strategies, increased reuse of water resources, and reduced consumption per ton of processed ore.
- Evaluation of internal safety regulations to strengthen education and incident management.
- Submission of compliance plans to the SMA, resulting in suspension of sanction proceedings at Ventanas and ongoing review of disclaimers at El Teniente.
Supply Chain Management
Supplier Audits: 231 audits on contractor companies (90% coverage)