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RESPONSIBLE COPPER
Jun-2018
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Productive Development
Productive Development Gender
parity
Ethics
Transparency
Inclusion
Water footprint
Carbon footprint
Respect for Human Rights
TRADE OFF?
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Final consumer Manufacturers Suppliers
MARKET´S NEW STRUCTURE
SOCIAL
ECONOMICS
ENVIRONMENTAL
DEMANDS
Divisions Final goods and services producers
Through their purchase decision, consumers push back the value chain, which is why suppliers are required to offer more sustainable raw materials.
MARKET TRENDS ARE REFLECTED ACROSS THE VALUE CHAIN
CODELCO´S COMERCIAL NEED
THE COPPER VALUE CHAIN
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The main productive sectors that consume copper have certification plans and systems that contain sustainability indicators.
Source: Own elaboration, International Copper Association and WoodMackezie.
And our customers demand us…
Electricity y electronics (8.900 kt/año) Environmental report & Eco -labelling Made in China 2025
Construction (7.000 kt/año) Made in China 2025 Leed Certification
General Products (2.250 kt/año)
Transportation (2.620 kt/año) Electromobility vs. Fossil Fuels End of life Directive (ELD)
Eco-labelling
COPPER MARKET TRENDS
HSEC
Labour conditions
Legal Compliance
Anti-bribery Codes
Transparency Codes
Declaration of Human Rights
...
Audit Requirements
Responsible Production
Environmental certifications
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INDUSTRY´S RESPONSE TO NEW MARKET CONDITIONS
Main users of aluminum are driving the demand for a cleaner and greener metal. Rio Tinto certified its product "RenewAL", within the Aluminium
Sustainable Initiative (ASI)
Companies manufacture products aligned with new
trends
Anglo American will cut Greenhouse Emissions (GHG)
30% by 2030
By 2030, BHP contemplates the integrated management of water resources in all its operations, and
eliminating the consumption of fresh water in its operations in Chile
(Malchuk, CESCO 2018).
BHP will reduce fresh water consumption by 100% in Chile
by 2030
The generation of sustainable products must be accompanied by a clean
production in the mining processes (Oscar Landerretche, CESCO Shanghai
2017 and CESCO Santiago 2018).
“Cobre Verde” must be the future of mining in Chile
Anglo American is pursuing community development, reducing its impact on
environment and improving transparency within the mining
industry.
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Occupational health and safety Goal 2020: zero fatal accidents Goal 2030: Frequency rate < 0,5
Environment Goal 2020: reduce by 10% fresh water consumption per treated ton Goal 2030: -Capture 99% of SO2 and As emissions -Reduce by 40% fresh water consumption per treated ton -Reduce GHG at least 30% by redistributing Codelco´s energy matrix and implementing more energy-efficient technologies
Business and Corporate Governance Goal 2020: -To be positioned in the second quartile of cost consistently -Corporate Governance aligned with OCDE Guidelines Goal 2030: -have a diversified business plan and global reach
Communities and territory Goal 2020: zero incidents Goal 2030: To be perceived as close, transparent and an active member of the community
People Goal 2020: 20% of women in top management positions Goal 2030: 30% of women in decision-making position
Strategic Innovation Goal 2020: 5% traceable production Goal 2030: To be in the 1st quartile of the most environmentally friendly cathodes
SUSTAINABILITY
The Sustainability Master Plan launched in 2016
CODELCO´S RESPONSE TO NEW MARKET CONDITIONS
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The Responsible Copper Initiative, within Codelco, put emphasis on a number of strategic dimensions included in the Sustainability Master Plan in order to develop a distinctive seal in the industry.
CODELCO´S DISTINCTIVE SEAL
People Strategic Innovation Business and
Corporate Governance
Community and
Territory
Environment Occupational Health
and Safety
People´s safety and processes
Occupational health
Emissions / Air quality
Water resources
Community relations and indigenous peoples
Financing
Corporate governance
Closure plan
Mining waste
Energy efficiency
Territory, soil and landscape
Biodiversity
Develop community and territory
Topics
Construction of bussiness plan
Operational, financial and productivity
Ethics, lobby, conflict of interest and transparency
Development organization and people
Diversity and inclusion
Labor Relations
Management culture
Structure and culture of innovation
Technological breaks
Divisional projects
Traceability
Dimensions
Responsible Copper Initiative
industrial liquid residuals
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Emissions footprint Water footprint Carbon footprint Respect for Human Rights Health and occupational safety Impact on communities and territories Transparency, ethics and compliance Inclusion and gender parity
Seeks to articulate the copper value chain to
respond effectively to the requirements of the market
and society, through a system of traceability in all its stages and thus achieve sustainable and responsible
practices.
8 DIMENSIONS
3 Partnerships
(to date)
CODELCO´S RESPONSIBLE COPPER
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CODELCO´S RESPONSIBLE COPPER
Dimension Current Standard or Initiative?
Standard/Initiative Key Sustainable Indicators
Health and Occupational Safety YES GRI, ASI, RJC, IRMA, ICMM • Frequency Rate (FR) • Accident rate • FR reduction target • Evaluation Impacts on health
• Training and information on occupational health
• Emergency procedures
Community and Territory YES
GRI, ASI, RJC, IRMA • Number of significant events on the environment
• Reduction of significant events target
• Reconciliation plans
• Periodic reports on impacts and mitigations
• Deposit closure plan • Impact evaluation
Transparency, Ethics and Compliance YES GRI, ASI, RJC, IRMA, ICMM, OCDE • Disclosure of environmental judgments
• Code of ethics
• Sustainability report • Compliance system
Inclusion and Gender Parity YES GRI, RJC • Female participation • Indigenous participation
• Non-discrimination code
Respecto for Human Rights YES
GRI, ASI, RJC, IRMA • Signature of voluntary principles of security and human rights
• Freedom of unionization and collective bargaining
• License to operate of indigenous groups
• Participation of all stakeholders • Prevention and risk mitigation
Water Footprint YES ASI, IRMA • fresh water use rate • Fresh water reduction plans
• Recirculation rate • Reports and monitoring
Carbon Footprint YES ASI, RS • GHG total emissions • GHG reduction target
Emissions Footprint YES GRI, RJC • SO2 and As emissions • Potential of acidification • Hazardous substances control
• Energy consumption • Renewal sources • Energy efficiency goals
Key Sustainable Indicators Preliminary Definition
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For the final product to be indeed sustainable, recognized, valued and PREFERRED, an integration of the value chain is required.
Industry Validation
Partners and Collaborators
RCI Multi-stakeholder
RESPONSIBLE COPPER INITIATIVE (RCI)
CODELCO is a relevant actor to articulate the entire chain.
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RESPONSIBLE COPPER