Slide 1: FCX ESG Presentation
ELECTRIFYING THE FUTURE FCX ESG Presentation Q4 2022 FCX NYSE
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections, expectations, targets, objectives, strategies or go
Slide 3: Table of Contents
Table of Contents ▸ FCX ESG Overview 4 ▸ Empowered People & Resilient Communities 10 ▸ Thriving Environments 16 ▸ Robust Governance 25 ▸ Appendix 32 3
Slide 4: Freeport: Foremost in Copper
Freeport: Foremost in Copper ▸ High Quality Assets ▸ Control & Operate All Major Assets ▸ Experienced Leadership ▸ Demonstrated Operational & ESG Track Record ▸ ~25 year Implied Reserve Life for North America South America Indonesia Copper* (AZ, NM, CO) (Peru, Chile) (Papua) Employees: 11,600 Employ
Slide 5: Copper – Metal of the Future
Copper – Metal of the Future Copper is critical to support the global transition to a low-carbon economy ▸ Essential to the technologies necessary to deliver clean energy, including electric vehicles, charging stations, high-efficiency motors and renewable energy ▸ Global decarbonization is expected
Slide 6: FCX is a Leading Responsible Copper Producer
FCX is a Leading Responsible Copper Producer We are Accelerating the Future, Responsibly. FCX’s Sustainability Strategy FCX is a leading responsible copper producer — supplying nearly 9.5% of the world’s mined copper. As the world transitions to a low-carbon economy, demand for copper is expected to
Slide 7: ESG Strategy Aligned with International Best Practices
ESG Strategy Aligned with International Best Practices Voluntary Memberships & Commitments: Sustainability Reporting Frameworks: Note: As of September 20, 2022: 11 FCX sites have been awarded the Copper Mark: Atlantic Copper smelter & refinery, Bagdad, Cerro Verde, Chino, El Abra, El Paso refinery &
Slide 8: The Copper Mark
The Copper Mark Recognition for Responsible Production COPPER MARK STATUS BY SITE: AWARDED ▸ Assurance framework developed to demonstrate the copper industry’s Atlantic Copper smelter & Miami smelter, mine & responsible production practices refinery (Spain) rod mill (AZ) Bagdad mine (AZ) Morenci min
Slide 9: 2021 ESG Highlights
2021 ESG Highlights 2030 $164 2050 Global Tailings Standard 87% GHG emissions intensity reduction target million Net zero aspiration announced leadership role in total water use efficiency achieved established for PT-FI* invested in our development of standard and communities implementation in proce
Slide 10: Empowered People & Resilient Communities
EMPOWERED PEOPLE & RESILIENT COMMUNITIES 10
Slide 11: Health & Safety
Health & Safety Focused on empowering safe work behaviors across the global business ▸ Fatality prevention remains our top focus for the company globally through our Fatal Risk Management (FRM) program Our ambition is to put safety first—for ourselves, for each other and for our ▸ High-risk exposure
Slide 12: Workforce
Workforce Global Workforce (as of December 31, 2021) ▸ Flexible, highly engaged workforce prioritized across our organization ▸ Working to support the ongoing training and EMPLOYEES Approximately development of our workforce to ensure we have 24,700 the right people with the necessary skills to safe
Slide 13: Inclusion & Diversity
Inclusion & Diversity Committed to a culture that is inclusive and representative of the communities where we operate Global Employees (as of December 31, 2021; excludes contractors) 48% Racially or 98% Indonesian 12% 23% 1% Expatriates 13% Women Ethnically Diverse Nationals Under 30 Over 50 NORTH G
Slide 14: Communities & Indigenous Peoples
Communities & Indigenous Peoples ▸ Community investment focus areas seek to support our overarching effort to support long-term resilience across: 1 Education and skill-building 2 Economic opportunity 3 Community-level capacity building ▸ Women’s quality as a cross-cutting area of focus across all o
Slide 15: Indigenous Peoples & Cultural Heritage
Indigenous Peoples & Cultural Heritage ▸ Dedicated to the continued strengthening of our relationships with Indigenous Peoples across all of our sites ▸ We have formal interactions with Indigenous Peoples in Papua, Indonesia; Native Americans in the United States; and the traditional communities of
Slide 16: Thriving Environments
THRIVING ENVIRONMENTS 16
Slide 17: Environmental Stewardship
Environmental Stewardship We spent approximately $300 million on our environmental programs in 2021 ▸ Committed to sound environmental practices at our operations and seek continuous improvement ▸ All operations’ Environmental Management Systems certified to ISO 14001 ▸ Environmental focus areas inc
Slide 18: Climate Strategy Progress – At a Glance
Climate Strategy Progress – At a Glance Climate Strategy Pillars: 2020 2021 2022 REDUCTION ▸ Published inaugural ▸ Announced 2050 net zero ▸ Established 2030 GHG 1 climate report and aspiration emissions targets for Atlantic Reduce GHG emissions formalized climate Copper and our primary including ou
Slide 19: Climate Performance Update
Climate Performance Update Our 2021 absolute GHG emissions (Scope 1 & 2) are 12% lower than 2018 5-Year Global Absolute GHG Emissions 2021 Global GHG Emissions (Scope 1 & 2) 2021 2021 GHG 2021 GHG PURCHASED EMISSIONS BY EMISSIONS BY POWER BY BUSINESS TYPE1 (%) SOURCE (%) AREA2,3,4 (%) Scope 1 37% Na
Slide 20: Long-Term Decarbonization Plan
Long-Term Decarbonization Plan Freeport aspires to participate in – and positively contribute to – a 2050 net zero economy ILLUSTRATIVE NET ZERO PATHWAY1 1 2 3 4 1 This is a high-level, initial illustrative net zero pathway only. As we develop our understanding and make plans for our 2050 net zero a
Slide 21: Water Stewardship
Water Stewardship Our global water management program goals: 1 Improve water use efficiency in our processes 2 Minimize use of new freshwater at our operations 3 Reduce our water footprint by transitioning to renewable, recycled and / or lower quality water sources 4 Monitor our impact on the surrou
Slide 22: Biodiversity
Biodiversity ▸ Committed to contributing to the conservation of biodiversity; explicit commitment not to explore or mine at any UNESCO World Heritage sites ▸ In 2021, continued efforts to implement the mitigation hierarchy globally — a framework that emphasizes best practices for managing biodiversi
Slide 23: Tailings Management
Tailings Management Safety is at the foundation of our tailings management approach Communication & Action ▸ Our Tailings Stewardship program launched in 2004 ▸ Program has a foundation in independent third-party reviews including third-party expert Technical Review Boards ▸ Comprehensive measures t
Slide 24: PT-FI Controlled Riverine Tailings
PT-FI Controlled Riverine Tailings Best site-specific management alternative with lowest risk to human health and the environment ▸ PT-FI’s controlled system was selected after extensive evaluations by international experts given the extreme terrain and site-specific conditions ▸ A conventional tail
Slide 25: Robust Governance
ROBUST GOVERNANCE 25
Slide 26: Human Rights
Human Rights We are committed to respecting the rights of all people ▸ Committed to the International Bill of Human Rights and to We are an enabling partner for the implementing the United Nations Guiding Principles on Business respect and promotion of human and Human Rights and participating in the
Slide 27: Responsible Value Chains
Responsible Value Chains Dedicated to delivering responsibly produced copper to markets around the world OECD 5-Step Framework* ▸ Responsible value chain program focuses across three key areas: Responsible Sourcing (Goods & Services Establish strong Identify & assess risk in Design & implement a Car
Slide 28: Sustainability Governance
Sustainability Governance Strong governance is foundational to our sustainability strategy ▸ Active oversight from Board of Directors and dedicated Board-level Corporate Responsibility Committee ▸ Sustainability embedded in values and business strategy and cascades to leadership at the sites ▸ Seek
Slide 29: Board of Directors
Board of Directors Exceptional and highly engaged Board focused on FCX’s continued success FCX successfully achieved its board refreshment objectives by adding six new directors in 2021, enhancing the skills, experience RICHARD C. ADKERSON DUSTAN E. MCCOY and diversity of the Board. We are Chairman
Slide 30: Board of Directors
Board of Directors Strong balance of tenure, diversity, skills and experience to support effective oversight and long-term value creation Diverse Experience, Board Composition Qualifications & Skills Out of 11 Board Members 18% 64% Out of 11 Board Members Over 10 0-5 Years Years CEO Experience 18% 6
Slide 31: Effective Independent Board Oversight
Effective Independent Board Oversight Current Board leadership structure is in the best interest of FCX and its shareholders at this time Balance between strong company leadership, and appropriate safeguards and oversight by independent directors RICHARD C. ADKERSON DUSTAN E. MCCOY Chairman of the B
Slide 32: Appendix
APPENDIX 32
Slide 33: Executive & Senior Leadership
Executive & Senior Leadership Broad and experienced management expertise RICHARD ADKERSON KATHLEEN QUIRK DOUGLAS CURRAULT STEPHEN HIGGINS MAREE ROBERTSON Chairman of the Board and President Senior Vice President Senior Vice President and Senior Vice President and Chief Executive Officer and General
Slide 34: Management and Board Oversight of Cybersecurity
Management and Board Oversight of Cybersecurity Cyber resilience is critical with digital acceleration and the increase in the use of new technologies ▸ Audit Committee has oversight of information technology and Our cybersecurity strategy cybersecurity programs, with reports from the Chief Informat
Slide 35: International Council on Mining & Metals (ICMM)
International Council on Mining & Metals (ICMM) FCX founding member of ICMM in 2001 and CEO elected Chair in August 2020 ▸ International organization dedicated to a safe, fair and sustainable mining and metals industry ICMM aims to continuously set ▸ Membership includes 28 companies with responsibil
Slide 36: Our Sustainability Pillars
Our Sustainability Pillars Our strategy seeks to create greater clarity on the outcomes we are working to achieve across our 3 pillars ▸ Human Rights ▸ Health & Safety ▸ Climate ▸ Responsible ▸ Human Capital Management ▸ Biodiversity & Supply Chains (Workforce, Inclusion & Diversity) Land use Strate
Slide 37: Freeport’s Values
Freeport’s Values Our culture is the bedrock of Freeport’s sustainability strategy, aligning our core company values to our work ▸ Safety We put safety first — for ourselves, our co-workers and our communities — by Our core values direct the actively promoting safe practices and health and wellness.
Slide 38: Ambitions & Performance Targets
Ambitions & Performance Targets Robust Governance FOCUS AREA AMBITION PERFORMANCE TARGET 2021 PERFORMANCE UPDATE STATUS Human We are an enabling partner for the respect and Incur zero gross human rights1 violations at our Achieved in 2021 Rights promotion of human rights within our own operations by
Slide 39: Ambitions & Performance Targets
Ambitions & Performance Targets Empowered People & Resilient Communities FOCUS AREA AMBITION PERFORMANCE TARGET 2021 PERFORMANCE UPDATE STATUS Health & We put safety first — for ourselves, for each other Incur zero workforce fatalities (employees + In 2021, we regret to report 2 work-related Safety
Slide 40: Ambitions & Performance Targets
Ambitions & Performance Targets Thriving Environments FOCUS AREA AMBITION PERFORMANCE TARGET 2021 PERFORMANCE UPDATE STATUS Climate We aspire to participate in – and positively contribute Reduce GHG emissions intensity by 30% per Achieved 22% intensity reduction on 2018 to – a 2050 net zero economy
Slide 41: Corporate Governance Highlights
Corporate Governance Highlights Strong Board oversight and governance practices Board Structure and Governance Stockholder Rights and Engagement ▸ Active Board oversight of risk ▸ Stockholder proxy access ▸ Lead independent director of the Board with defined ▸ Majority voting for directors responsib
Slide 42: Executive Compensation
Executive Compensation Shareholder-informed program drives pay-for-performance alignment Element 2021 Components ▸ Fixed cash compensation Base Salary ▸ Set at competitive levels and used to attract and retain talent 10% Sustainability ▸ Annual variable cash compensation based on pre-established per
Slide 43: Executive Compensation
Executive Compensation Performance-based program links executive pay, company performance and results for stockholders 2021 CEO Target Compensation Mix Executive Compensation Philosophy: 10% RSUs Pay for performance by linking most ▸ Vest ratably over a three- year period following date of grant, an
Slide 44: Downstream Business
Downstream Business Fort Madison, Iowa Stowmarket, United Kingdom Molybdenum Processing Molybdenum Processing Rotterdam, The Netherlands Molybdenum Processing Miami, Arizona Copper Rod Plant and Smelter Huelva, Spain Atlantic Copper Smelter El Paso, Texas Copper Refinery Gresik, Indonesia PT Smeltin
Slide 45: Copper is Critical to Progress
Copper is Critical to Progress Copper is strategically important to enabling society’s progress Decarbonization ▸ By 2030, copper could reduce global carbon emissions by 16%* ▸ Copper is a critical component for electric vehicles, charging stations, high-efficiency motors and renewable energy techno
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