SALIENT HUMAN RIGHTS ISSUES & SCOPE OF POTENTIAL HUMAN RIGHTS IMPACTS

In 2023, we began updating our FCX-level human rights saliency assessment in order to provide a current overview of our global human rights risk profile. The saliency assessment, last updated in 2013, evaluates the 10 site-level human rights impact assessments (HRIAs) FCX has conducted to date in Peru, the U.S., Chile and Indonesia as well as benchmarking of peer companies to identify salient risks at the industry level. The saliency assessment seeks to identify and prioritize human rights risks based on scope, scale, remediability and likelihood.

Global Salient Human Rights Risks:

• Community Wellbeing and Standards of Living ​ ​
• Discrimination & Harassment​ ​
• Healthy Environment and Water​ ​
• Indigenous People's Rights
• Labor and Working Conditions​
• ​Modern Slavery ​ ​
• Occupational Health and Safety​ ​
• Security 

Our human rights dashboard helps frame our UN Guiding Principles (UNGPs) implementation across our operational activities. The dashboard is intended to reflect the scope of our potential human rights risks and impacts as well as the scope of our human rights impact assessments (HRIAs) and our continued efforts to integrate human rights considerations across relevant business functions at our operations.

Each dashboard topic is mapped to specific internationally recognized human rights which is intended to support a comprehensive, rights-driven approach. While the dashboard topics are generally applicable across our global operations, certain dashboard topics such as illegal artisanal mining and Indigenous Peoples may not be relevant at every operating location.

We leverage our sustainability risk register process and our human rights due diligence program to assess which topics in our human rights dashboard are most salient at a site-level. We aim to manage the salient human rights topics as part of our ongoing operational work. Learn more about our approach in our 2023 Annual Report on Sustainability.

HUMAN RIGHTS DUE DILGENCE

As we seek to further embed respect for human rights across our organizational activities, we use our sustainability risk register process to identify risks to people at our existing operations. We are currently reviewing this process to drive continuous improvement in assessing human rights risks on an ongoing basis. We also have a risk identification process for our new or growth projects to address potential and actual impacts on rights-holders. We implement and refine our approach to human rights through ongoing stakeholder engagement, grievance management and the findings from our HRIAs.

A variety of factors are considered when prioritizing sites for specific human rights due diligence. We consider which sites have a higher human rights risk profile, as well as whether a site has recently undergone or has potential for significant operational change, stakeholder feedback and other practical considerations regarding implementation. Higher risk sites are assessed approximately every 5 years and lower risk sites less frequently.

Human Rights Impact Assessments

HRIAs, conducted by third-party consultants using methodologies aligned with the UNGPs, are our primary method for conducting human rights due diligence at our operations. These assessments involve direct input from a broad cross-section of internal and external rights-holders (and those with insight into rights-holders). They support continuous improvement of our management systems by testing their effectiveness in identifying and addressing potential, actual and perceived human rights risks and impacts. Our current HRIA schedule and status is outlined below.

For information about our HRIA methodology, process and assessment summaries, please refer to the following documents:

• FCX HRIA Methodology
• FCX El Abra HRIA Summary
• FCX AZ Operations HRIA Summary
• PT-FI Grasberg HRIA Summary

Responsible Sourcing

In addition to HRIAs, our responsible sourcing programs require human rights due diligence on suppliers of both goods and services, and minerals and metals for further processing. The development of these programs is informed by our HRIA findings. For information on our approach to assessing supplier human rights and other sustainability-related risks, see the Responsible Value Chains section of our 2023 Annual Report on Sustainability.

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