Slide 1: ESG Investor Presentation Q4 2021
ESG Investor Presentation Q4 2021 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: Table of Contents
Table of Contents 〉 FCX ESG OVERVIEW 4 〉 PEOPLE 10 〉 ENVIRONMENT 18 〉 GOVERNANCE 26 〉 APPENDIX 34 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 〉 30+ year Implied Reserve Life for North America South America Indonesia Copper* (AZ, NM, CO) (Peru, Chile) (Papua) Employees: 11,200 Employ
Slide 5: Leading Responsible Copper Producer
Leading Responsible Copper Producer Committed to all stakeholders PEOPLE ENVIRONMENT 〉 Health & Safety 〉 Climate 〉 Workforce 〉 Water Stewardship 〉 Communities & Indigenous 〉 Biodiversity Peoples 〉 Tailings Stewardship 〉 Human Rights 〉 Reclamation & Waste Management GOVERNANCE 〉 Business Integrity &
Slide 6: 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 7: ESG Strategy Aligned with International Best Practices
ESG Strategy Aligned with International Best Practices Voluntary Memberships & Commitments: Sustainability Reporting Frameworks: Note: To date, six FCX sites have been awarded the Copper Mark: Morenci, Cerro Verde, El Abra, Atlantic Copper, the Miami smelter and mine, and the El Paso refinery 7
Slide 8: The Copper Mark
The Copper Mark Recognition for Responsible Production 〉 Assurance framework developed to demonstrate the copper industry’s responsible production practices and contribution to the United Nations Sustainable Development Goals 〉 Producers participating in the Copper Mark are committed to adhering to
Slide 9: Charging Ahead – 2020 ESG Highlights
Charging Ahead – 2020 ESG Highlights 2030 $108 2nd Global Tailings 89% Americas GHG in North America in 2020 Standard million total water use emissions reduction Corporate Human leadership role in efficiency achieved target established & invested in our Rights Benchmark development of standard clima
Slide 10: People
FREEPORT FOREMOST IN COPPER 10
Slide 11: Health & Safety
Health & Safety Focused on empowering safe work behaviors across the entire global business 〉 Fatality prevention remains our top focus for the company globally through our Fatal Risk Management (FRM) program 〉 High-risk exposures continue to be a key focus; seek to identify and verify that key cont
Slide 12: COVID-19 Management Continues
COVID-19 Management Continues Protecting our people is safeguarding our business 〉 Protecting our Workforce & their Families: Ongoing active and preventive management, through implementation of global health guidelines, including testing, screening and tracking, and vaccine roll-out efforts 〉 Suppor
Slide 13: Workforce
Workforce Global Workforce Flexible, highly engaged workforce (as of December 31, 2020) prioritized across our organization EMPLOYEES 〉 Focused on enhancing the Approximately 24,500 organizational structure and high- performance culture through Freeport Edge behaviors North America 46% Indonesia 26%
Slide 14: 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, 2020; excludes contractors) 47% Racially or 98% Indonesian 12% 22% 1% Expatriates 13% Women Ethnically Diverse Nationals Under 30 Over 50 NORTH G
Slide 15: Communities & Indigenous Peoples
Communities & Indigenous Peoples Community investments totaled more than $1.9 billion since 2009 Community investment focus areas: 〉 COVID-19 response 〉 Community and economic development 〉 Education and training 〉 Public health and nutrition 〉 Women’s empowerment & development Objectives in partner
Slide 16: Building Trust with Indigenous Peoples
Building Trust with Indigenous Peoples 〉 Dedicated to the continued strengthening of our relationships with Indigenous Peoples across all sites 〉 We have formal interactions with Indigenous Peoples in Papua, Indonesia; Native Americans in the United States; and the traditional communities of Alto El
Slide 17: 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 〉 Conduct human rights due di
Slide 18: Environment
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Slide 19: Environmental Stewardship
Environmental Stewardship We spent approximately $300 million on our environmental programs in 2020 〉 Committed to sound environmental practices at our operations and seek continuous improvement 〉 Environmental focus areas include climate, water, tailings management, biodiversity, reclamation and wa
Slide 20: Climate Strategy Progress – At a Glance
Climate Strategy Progress – At a Glance Climate Strategy Pillars: REDUCTION RESILIENCE CONTRIBUTION Reduce GHG emissions including Enhance resilience to climate Contribute responsibly produced our Americas and PT-FI 2030 GHG change risks copper to the global energy transition intensity reduction tar
Slide 21: Climate Performance Update
Climate Performance Update Our 2020 absolute GHG emissions (Scope 1 & 2) are 21% lower than 5 years ago Responsibly produced copper is necessary for the technologies needed to develop and enable the energy transition 5-Year Global GHG Emissions (Scope 1 & 2) 2020 Global GHG Emissions 2020 GHG 2020 2
Slide 22: Long-Term Decarbonization Plan
Long-Term Decarbonization Plan Freeport aspires to participate in – and positively contribute to – a 2050 net zero economy 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 aspiration, we anticipate that we will n
Slide 23: Water Stewardship
Water Stewardship Water is essential to the well-being of our communities, the environment and necessary for our operations FCX recognizes the importance of working collaboratively with our stakeholders in order to secure access to water in a socially Recycled Water vs. New Water Use and environment
Slide 24: Tailings Management & Stewardship
Tailings Management & Stewardship 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 〉 Comprehens
Slide 25: 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 expects to spend approximately 〉 PT-FI’s controlled system was selected after $85 million annually to monitor and extensive evaluations by international experts giv
Slide 26: Governance
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Slide 27: Sustainability Governance
Sustainability Governance Strong governance is foundational to our sustainability strategy 〉 Active oversight from Board of Directors and dedicated Board-level Corporate 10% Responsibility Committee Sustainability 〉 Sustainability embedded in values and 15% Safety 40% Financial business strategy and
Slide 28: Board of Directors
Board of Directors Achieved enhanced Board through recent recruitment efforts FCX has successfully achieved its board refreshment objectives adding six new directors in the last two years, including five in 2021, enhancing the skills, experience and diversity of the Board RICHARD C. ADKERSON DUSTAN
Slide 29: 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 30: Corporate Governance
Corporate Governance 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 and robust 〉 Majority voting for directors responsib
Slide 31: Board of Directors
Board of Directors FCX’s Board has achieved a strong balance of tenure, diversity, skills and experience to support effective oversight and long-term value creation Diverse Experience, Qualifications & Skills Board Composition Out of 11 Board Members Out of 11 Board Members 18% 64% Over 10 Years 5 Y
Slide 32: Executive Compensation
Executive Compensation Shareholder-informed program drives pay-for-performance alignment Element 2020 Components Base Salary 〉 Fixed cash compensation used to calculate other compensation elements 10% Sustainability 〉 Annual variable cash compensation 15% 40% Annual Incentive 〉 Based on financial an
Slide 33: Executive Compensation
Executive Compensation Performance-based program links executive pay, company performance and results for stockholders 2020 Compensation Mix Executive Compensation Philosophy (CEO % shown) The fundamental principles of our company’s executive compensation philosophy are to: 1. Pay for performance by
Slide 34: Appendix
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Slide 35: Senior Leadership
Senior Leadership Broad and experienced management expertise RICHARD ADKERSON KATHLEEN QUIRK Chairman of the Board and Chief President and Chief Executive Officer Financial Officer MARK JOHNSON JOSH OLMSTED RICK COLEMAN MICHAEL KENDRICK Director, Executive Vice President President and Chief Presiden
Slide 36: Cybersecurity
Cybersecurity Cyber resilience is critical with digital acceleration and increase in the use of new technologies 〉 IT infrastructure and information security management systems and controls are reviewed multiple times throughout the year by internal audit firm (Deloitte) 〉 Partner with third-party I
Slide 37: 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 ICMM aims to continuously set and sustainable mining and metals industry the standard and strengthen ESG 〉 Membership includ
Slide 38: Responsible Value Chains
Responsible Value Chains Dedicated to delivering responsibly produced copper to markets around the world OECD 5-Step Framework* 〉 Focused on advancing responsibility in our value chains across 3 pillars: 1 2 3 4 5 1. Responsible Sourcing of Goods & Services Establish Identify & Design & Carry out Re
Slide 39: Sustainability Targets
Sustainability Targets FOCUS AREA 2020 TARGET 2020 PERFORMANCE STATUS Comprehensive training on PBC, including annual 58% employees were trained in 2020, including an 82% certification rate of certification of management-level employees management-level employees Governance Train 90% of selected emp
Slide 40: 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 41: 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
Slide 42: TEAM
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