Climate Change Data

SQM Salar S.A.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Human Rights
  • Water Management
  • Climate Change
  • Community Engagement
  • Environmental Compliance
  • Responsible Business Management
  • Product Responsibility and Innovation

Environmental Achievements

  • Implemented measures to reduce water and brine use by 50% by 2030
  • Committed to carbon neutrality by 2040 for all products and by 2030 for Lithium scope 1 & 2
  • Implemented air quality stations with publicly available data
  • Incorporated environmental variables early in project design to mitigate impacts
  • Implemented systems for monitoring water and brine extraction

Social Achievements

  • Entered into cooperation agreements with indigenous communities focusing on social development, education, and cultural heritage
  • Implemented a Sustainability, Ethics and Human Rights Policy
  • Established a complaint channel and communities portal
  • Implemented programs for employee growth and development
  • Implemented a diversity and inclusion policy
  • Implemented programs to prevent and eradicate harassment and bullying

Governance Achievements

  • Implemented a Corporate Risk Management Policy based on international standards
  • Commissioned a Human Rights Impact Assessment
  • Implemented a Responsible Sourcing Policy
  • Undertook due diligence processes in its supply chain
  • Completed the Conflict Minerals Reporting Template
  • Implemented a Crime Prevention Model

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality in all products by 2040
Medium-term Goals:
  • Achieve carbon neutrality in lithium and potassium chloride by 2030
  • Reduce water consumption by 40% for all operations by 2030
Short-term Goals:
  • Reduce water consumption by 65% by 2040
  • Reduce brine use by 50% by 2028
  • Reach 25% female staff by 2025

Environmental Challenges

  • Impact on water and groundwater due to contamination
  • Impact on the way of life of indigenous communities
  • Impact on access to water for human and agricultural consumption
  • Bullying and harassment of employees
  • Unsafe working conditions
  • Stakeholder concerns about sustainable production
  • International regulations associated with climate change
  • Potential environmental emergencies
  • Community concerns regarding communication channels and joint monitoring
Mitigation Strategies
  • On-line monitoring system for water withdrawals
  • Environmental roundtables with communities
  • Crime Prevention Model
  • Sustainability, Ethics and Human Rights Policy
  • Mechanisms for participation and dialogue with communities
  • Donations and Contributions Agreement
  • Early warning plans for water contingencies
  • Sustainable development plan to reduce water use
  • Standard No. 3262 on gender equality
  • Code of Ethics and Global Procedure for Internal Investigations and Sanctions
  • Operational Risk Management System (SISGRO)
  • Alcohol and Drug Policy
  • Regulations for Control of Entry to operating sites
  • Training courses on use of force
  • Sustainability strategy for carbon neutrality by 2040
  • Initiatives to reduce GHG emissions
  • Community engagement and relations area strengthened
  • Formal agreements with communities
  • Remedial measures including improved communication channels and community environmental units

Supply Chain Management

Responsible Procurement
  • Responsible Sourcing Policy
  • Supplier self-assessment platform
  • Supplier training programs

Climate-Related Risks & Opportunities

Physical Risks
  • Water scarcity
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts towards sustainable products
Opportunities
  • Development of energy-efficient products and processes
  • Innovation in sustainable production

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 45001, ISO 14001, IRMA

Third-party Assurance: Deloitte

UN Sustainable Development Goals

  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 11
  • SDG 12
  • SDG 13
  • SDG 15
  • SDG 16
  • SDG 17

The company's responsible business strategy is aligned with the SDGs through its pillars focused on responsible processes, development, research, and innovation, human development, sustainability, ethics, and business, and sustainable supply chain.

Sustainable Products & Innovation

  • Green lithium production