Freeport-mcmoran, Inc. · NYSE:FCX
Freeport-mcmoran — ESG Presentation (November 2020)
32 slides from Freeport-mcmoran's sustainability presentation, Nov 12, 2020
Slide 1: ESG Investor Presentation
ESG Investor Presentation November/December 2020 fcx.com
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: Freeport: Foremost in Copper
Freeport: Foremost in Copper Global Industry Trusted World-Class Block Cave Responsible Leader Operator Developer Leader Producer One of the world’s Strong Industry leading Industry leading Long-standing largest publicly reputation and track record for technical commitment traded copper franchise in
Slide 4: Leading Responsible Copper Producer
Leading Responsible Copper Producer Committed to all stakeholders • Health & Safety • Climate & Water • Workforce Stewardship • Communities & • Biodiversity Indigenous Peoples • Tailings Management • Human Rights • Reclamation & Waste Management By supplying responsibly produced copper, FCX is • Bus
Slide 5: 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 Infra
Slide 6: Responsible Value Chains
Responsible Value Chains Dedicated to delivering responsibly produced copper to markets around the world • Focused on advancing responsibility in our The Copper Mark is a new assurance value chains by: (1) managing risks in our framework developed to demonstrate own supply chain; (2) managing risks
Slide 7: Aligned to International Best Practices
Aligned to International Best Practices Dedicated to continuous improvement and evolving with changing expectations Voluntary Memberships & Commitments: Sustainability Reporting Frameworks: Committed to SASB for FY2020 reporting 7
Slide 8: 2019 ESG Performance Snapshot
2019 ESG Performance Snapshot 82% $100 1st 99% of total water million in North America in 2019 Corporate Human of our employees are utilized was from invested in our Rights Benchmark from the countries recycled sources communities Assessment where we operate 13% 17% 81% ZERO women reduction in globa
Slide 9: People
People a 9
Slide 10: COVID-19 Response
COVID-19 Response Protecting our people is protecting our business Protecting our Supporting Maintaining Workforce & our Local Resiliency their Families Communities & Value • Adhering to global standards to • Partnering with local governments, • Rapid response efforts initiated manage health and hyg
Slide 11: Health & Safety
Health & Safety We choose to work safely because it MATTERS In 2020, rolling out our new Incident Frequency (per 200,000 hours worked) “Safe Production Matters” strategy: • Optimize health & safety resources • Eliminate systematic causes of incidents and issues • Focus on high risk/potentially fatal
Slide 12: Human Rights
Human Rights We are committed to respecting the rights of all people • Committed to the Universal Declaration of Human Rights and to implementing the United Nations Guiding Principles on Business and Human Rights and the Voluntary Principles on Security and Human Rights • The 2019 Corporate Human Ri
Slide 13: Communities & Indigenous Peoples
Communities & Indigenous Peoples Community investments totaled more than $1.8 billion since 2009 We are increasingly focused on investing in the “sustainability of people” which includes providing the enduring skills and opportunities individuals need to achieve productive livelihoods post-mining Co
Slide 14: Our Employees
Our Employees Focused on adapting and excelling in the “new normal” Global Employees (As of December 31, 2019) • Prioritizing a lean, flexible, and highly- Approximately engaged workforce North America 46% 27,500 Indonesia 25% Employees • Promoting the Agile framework South A merica 24% throughout t
Slide 15: Diversity & Inclusion
Diversity & Inclusion Progress on strengthening gender diversity across the value chain 2019 Women Employed by Region (%) Women as % of Global Workforce • Women represent 33% of the Board of Directors, 13% of global workforce and 21% of new hires in 2019 • Targeted programs to support and advance wo
Slide 16: Environment
\ Environment FREEPORT 16
Slide 17: Environmental Stewardship
Environmental Stewardship We spent $400 million on our environmental programs in 2019 • Seek to avoid and minimize the adverse impacts of our operations on the environment while promoting opportunities to conserve and enhance resources in the areas of our operations • Stewardship initiatives aim to
Slide 18: Climate
Climate Our GHG emissions have reduced by 17% in the last 5 years 2019 Purchased Power by Source Natural Gas 35% Hydro 32% Coal, Other Fossil 18% Nuclear 9% 81% from low -carbon or renew able sources Solar, Wind, Geother mal 5% Other 1% Climate Strategy outlined in Global GHG Reduction by Five-Year
Slide 19: Tailings Stewardship
Tailings Stewardship Safety is at the foundation of our tailings management approach We support, and are committed to implementing, the new Global Tailings Standard • Tailings Stewardship program launched in 2004 • Program has a foundation in independent third-party reviews • Comprehensive measures
Slide 20: PT-FI Controlled Riverine Tailings
PT-FI Controlled Riverine Tailings Alternative with lowest risk to human health and the environment • PT-FI’s controlled system selected after PT-FI spends ~$100 million extensive evaluations by international annually to monitor and experts given extreme terrain and site- manage the controlled syste
Slide 21: Governance
Governance a 21
Slide 22: Sustainability Governance
Sustainability Governance Focused on integrating sustainability into all aspects of our business and culture • Active oversight from Board of Directors and dedicated Board-level Corporate Being a Responsible Responsibility Committee Producer means integrating sustainability in everything we • Sustai
Slide 23: Corporate Governance
Corporate Governance Strong Board oversight and governance practices Highly Independent and Strong Governance Shareholder Rights: Engaged Board: Practices: • Active Board oversight of risks • Majority voting for directors • Shareholder right to call special meetings (15%) • Board has four standing •
Slide 24: Board of Directors
Board of Directors Actively focused on enhancing our Board through recruitment • Enhancing the composition and size of Being a Responsible the Board remains a top priority Producer means integrating •sustainability Focused oninachieving an we everything appropriate RICHARD C. ADKERSON Vice Chairman,
Slide 25: Board of Directors
Board of Directors Focused on achieving a balance of tenure, diversity, skills and experience Diverse Experience, Qualifications & Skills Out of 6 Board Members Senior Leadership Experience International Business Board diversity, tenure and age will continue to evolve Accounting/Financial Expertise
Slide 26: Executive Compensation
Executive Compensation Shareholder-informed program drives pay-for-performance alignment Element 2019 Components Base Salary • Fixed cash compensation used to calculate other compensation elements 10% Sustainability • Annual variable cash compensation 15% 40% Annual Incentive • Formula-driven plan b
Slide 27: Executive Compensation
Executive Compensation Committed to Best Practices Paying for Performance: 2019 Compensation Mix (CEO % shown) • 67% of target compensation is delivered in equity, aligning CEO’s interests with those of shareholders • 87% of target total direct compensation is at-risk COVID-19 Impact on Compensation
Slide 28: Appendix
Appendix a FREEPORT 28
Slide 29: Senior Leadership
Senior Leadership Broad and experienced management expertise RICHARD C. ADKERSON KATHLEEN L. QUIRK Vice Chairman, President Chief Executive Vice President and Chief Executive Officer Financial Officer MARK JOHNSON JOSH OLMSTED RICK COLEMAN MICHAEL J. KENDRICK Director, Executive Vice President Presi
Slide 30: International Council on Mining & Metals
International Council on Mining & Metals FCX founding member of ICMM in 2001 and CEO elected Chair in August 2020 • International organization dedicated ICMM aims to continuously set the to a safe, fair and sustainable mining standard and strengthen ESG and metals industry performance across the glo
Slide 31: Cybersecurity
Cybersecurity Resiliency is critical with digital acceleration and increase in the use of new technologies Focused on aligning our cyber • IT infrastructure and information strategy with the new remote security management systems are business environment reviewed by internal audit firm emerging from
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