Slide 1: FCX ESG Presentation Q4 2023
FCX ESG Presentation Q4 2023 fcx.com
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements in which FCX discusses its potential future performance, operations and projects. Forward- looking statements are all statements other than statements of historical facts, such as plans, projections, expectations, targets, ob
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) (Central Papua) Employees: 12,40
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 ~9% of the world’s mined copper. As global decarbonization accelerates, demand for copper is expected to increase. FCX is co
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 April 21, 2023: 12 FCX sites have been awarded the Copper Mark: Atlantic Copper smelter & refinery, Bagdad, Cerro Verde, Chino, El Abra, El Paso refinery & rod
Slide 8: The Copper Mark
The Copper Mark Recognition for Responsible Production STATUS BY SITE: • Assurance framework developed to demonstrate the copper industry’s AWARDED responsible production practices Atlantic Copper smelter & Henderson mine (CO)** • Producers participating in the Copper Mark are committed to adhering
Slide 9: 2022 ESG Highlights
2022 ESG Highlights 12 sites $177 2030 Global Tailings Standard 89% awarded Copper Mark, including 4 in 2022 and million GHG emissions reduction targets established for progressed implementation at total water use efficiency achieved 1 in early 2023 invested in our Atlantic Copper and our applicable
Slide 10: Empowered People & Resilient Communities
EMPOWERED PEOPLE & RESILIENT COMMUNITIES
Slide 11: Health & Safety
Health & Safety Focused on empowering safe work behaviors across the global business • Safe Production Matters strategy focused on fatality prevention and eliminating high-risk incidents • Our robust root cause analysis program aims to eliminate systemic causes of incidents, identify and verify corr
Slide 12: Workforce
Workforce Global Workforce • Flexible, highly engaged workforce prioritized across (as of December 31, 2022) our organization • Working to support the ongoing training, development EMPLOYEES and retention of our workforce to ensure we have the Approximately right people with the necessary skills to
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, 2022; excludes contractors) 49% Racially or 97% Indonesian 13% 23% 99% In-Country Nationals 14% Women Ethnically Diverse Nationals Under 30 Over
Slide 14: Communities & Indigenous Peoples
Communities & Indigenous Peoples Community resilience focus areas seek to support our overarching effort to support long-term resilience across our three pillars: COMMUNITY-LEVEL EDUCATION & ECONOMIC LEADERSHIP & SKILL-BUILDING OPPORTUNITY CAPACITY BUILDING Women’s empowerment as a cross-cutting are
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 Central Papua, Indonesia; Native Americans in the United States; and the traditional communi
Slide 16: Thriving Environments
THRIVING ENVIRONMENTS
Slide 17: Environmental Stewardship
Environmental Stewardship FCX spent approximately $400 million on our environmental programs in 2022 • Committed to sound environmental practices at our operations and seek continuous improvement • All operations’ Environmental Management Systems certified to ISO 14001 • Environmental focus areas in
Slide 18: Climate Strategy Progress — At a Glance
Climate Strategy Progress — At a Glance Climate Strategy Pillars: Climate Achievements 2020-2023 1 REDUCTION Establishing our Climate Strategy Reduce GHG emissions • Formalized climate strategy of reduction, resilience and contribution including achieving our • Established 2030 GHG emissions reducti
Slide 19: Climate Performance Update
Climate Performance Update Our 2022 absolute GHG emissions (Scope 1 & 2) were 6% lower than 2018 baseline year levels 5-Year Global Absolute GHG Emissions 2022 Global GHG Emissions (Scope 1 & 2) 2022 2022 GHG 2022 GHG PURCHASED EMISSIONS BY EMISSIONS BY POWER BY BUSINESS TYPE1 (%) SOURCE (%) ACTIVIT
Slide 20: Long-Term Decarbonization Plan
Long-Term Decarbonization Plan FCX aspires to participate in – and positively contribute to – a 2050 net zero economy ILLUSTRATIVE NET ZERO PATHWAY1 2020 2030 2050 Decarbonization Levers 1 Decarbonizing Electrical Supply 2 Equipment Electrification 3 Energy & Asset Efficiency 4 Process Innovation 20
Slide 21: Water Stewardship
Water Stewardship Our global water management program goals: 1 Optimize water use efficiency in our processes 2 Minimize use of new freshwater at our operations Reduce our water footprint by transitioning to renewable, 3 recycled and/or lower quality water sources Monitor our impact on the surroundi
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 • Extensive conservation programs globally; 17 operating sites and facilities currently are certified through Wildlife Habitat Council for our b
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 • Our program has a foundation in independent third-party reviews, including third-party expert Independent Tailings Review Boards • Comprehe
Slide 24: PT-FI Controlled Riverine Tailings
PT-FI Controlled Riverine Tailings Best site-specific management alternative with lowest risk to people and the environment • PT-FI’s controlled system was selected after extensive evaluations by international experts given the extreme terrain and site-specific conditions of the operating area • A l
Slide 25: Robust Governance
ROBUST a GOVERNANCE
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 implementing We are an enabling partner for the the United Nations Guiding Principles on Business and Human Rights respect and promotion of human 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 Identify & Design & Carry out Report and Minerals & Met
Slide 28: Sustainability Governance
Sustainability Governance Strong governance is foundational to our sustainability strategy • Active oversight from FCX’s Board of Directors and dedicated Board-level Corporate Responsibility Committee • Sustainability embedded in values and business strategy and cascades to leadership at the sites •
Slide 29: Board of Directors
Board of Directors Exceptional and highly engaged Board focused on FCX’s continued success FCX is proud to be named to Fortune’s Modern Board 25 for 2023, a list that recognizes the 25 most RICHARD C. ADKERSON Chairman of the Board and DUSTAN E. MCCOY Lead Independent Director innovative corporate b
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 12 Board Members 17% 66% Out of 12 Board Members Over 10 0-5 Years Years 17% 6-10 Independent
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
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 processes and procedures, with reports from th
Slide 35: International Council on Mining & Metals (ICMM)
International Council on Mining & Metals (ICMM) FCX is a founding member of ICMM • International organization dedicated to a safe, fair and sustainable mining and metals industry • Membership includes 25 companies ICMM aims to continuously set the standard and strengthen ESG performance • Maintains
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 three pillars • Human Rights • Health & Safety • Climate • Responsible • Human Capital Management • Biodiversity & Supply Chains (Workforce, Inclusion & Diversity) Land use St
Slide 37: FCX's Values
FCX’s Values Our culture is the bedrock of our 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. No job is s
Slide 38: Ambitions & Performance Targets: Robust Governance
Ambitions & Performance Targets Robust Governance FOCUS AREA AMBITION PERFORMANCE TARGET 2022 PERFORMANCE UPDATE Human Rights We are an enabling partner for the Incur zero gross human rights violations1 at our operations by PT-FI identified three instances of underage workers employed by respect and
Slide 39: Ambitions & Performance Targets: Empowered People & Resilient Communities
Ambitions & Performance Targets Empowered People & Resilient Communities FOCUS AREA AMBITION PERFORMANCE TARGET 2022 PERFORMANCE UPDATE Health & Safety We put safety first — for Incur zero workforce fatalities (employees + contractors) For 2022, we regret to report one work-related fatality of a con
Slide 40: Ambitions & Performance Targets: Thriving Environments
Ambitions & Performance Targets Thriving Environments FOCUS AREA AMBITION PERFORMANCE TARGET 2022 PERFORMANCE UPDATE Climate We aspire to participate in — and positively Achieve GHG emissions reduction targets by 2030 Continued to reduce GHG emissions intensity in the Americas (2.5% achieved contrib
Slide 41: Corporate Governance Highlights
Corporate Governance Highlights Strong Board oversight and governance practices Board Structure and Governance Stockholder Rights and Engagement • Active Board committee oversight of risk • Stockholder proxy access • Lead Independent Director of the Board with defined • Majority voting for directors
Slide 42: Executive Compensation
Executive Compensation Shareholder-informed program drives pay-for-performance alignment Element 2022 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 2022 CEO Target Compensation Mix Executive Compensation Philosophy: 1 17% RSUs Pay for performance by linking most • Vest ratably over a three- year period following date of of our
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: FCX.COM
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