Freeport McMoRan : 2024 Annual Report on Sustainability (2024 annual report on sustainability)
FCX
P O W E R I N G P R O G R E S S
2024 ANNUAL REPORT ON SUSTAINABILIT Y
2 2024 ANNUAL REPORT ON SUSTAINABILIT Y
ABOUT FREEPORT-MCMORAN Freeport-McMoRanInc. (FCX or Freeport) is a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, FCX operates large, long-lived,geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. FCX's portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits; and significant operations in North America and South America, including the large-scaleMorenci minerals district in Arizona and the Cerro Verde operation in Peru.
RECENT AWARDS AND RECOGNITION
P O W E R I N G P R O G R E S S
Copper's Transformative Role in Human Progress Cannot be Overstated.
For over 10,000 years, copper has shaped civilizations and enabled us to meet the challenges of each era through technological advancements, improving both health and quality of life.
As we move toward an increasingly connected, electrified and decarbonized future, copper continues to be a critical metal for a rapidly changing world.
It's versatile. Durable.
Infinitely recyclable.
And is superior at conducting electricity.
From urban development to everyday electronics and data centers, transportation to grid infrastructure, renewable energy systems to electric vehicles …
Copper is essential in Powering Progress
Cover Photo: An employee surveys haulage operations at the Safford mine, U.S.
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OUR APPROACH
6 Our Strategy
ROBUST GOVERNANCE
19 Governance
EMPOWERED PEOPLE
AND RESILIENT COMMUNITIES
THRIVING ENVIRONMENTS
67 Climate
ABOUT THIS REPORT
106 Independent Accountants Assurance Statements
ESG PERFORMANCE DATA
Morenci contractors lay side-slope drip lines, one of the many innovative solutions to extract more copper from existing stockpiles.
4 2024 ANNUAL REPORT ON SUSTAINABILIT Y
APRIL 23, 2025
Kathleen L. Quirk
President and
Chief Executive
Officer (CEO)
LETTER TO OUR STAKEHOLDERS
Dear Stakeholders,
I am pleased to share our 2024 Annual Report on Sustainability
which highlights progress for our value-driven sustainability strategy - Accelerate the Future, Responsibly - supporting our business strategy of being Foremost in Copper and informing our decisions and our core values.
The health, safety and well-being of our workforce remains our top priority. I commend the tireless efforts of our operations teams to set clear expectations, spend dedicated time in the field, enhance accountability and drive a safety-first culture. In 2024, we achieved our best total recordable incident rate (TRIR) in more than a decade. Despite our progress, we mourned the deaths of two logistics contractors delivering materials in North America and continued to experience a significant number of high-risk events. In October, we held a global safety stand-down to reinforce our safety commitment. Across our operations, we facilitated meaningful conversations about safety performance, emphasized hazard recognition and reminded our employees and contractors of their obligation to stop work if safety concerns are identified.
Technology and innovation continue to play an increasingly pivotal role in our operations. The implementation of new and innovative technologies and practices, such as our leaching initiatives and the advancement of autonomous haulage aim to increase copper production while improving operational efficiency, safety and environmental performance.
Our Bagdad team is making substantial progress in converting our haul truck fleet to operate autonomously by year-end 2025. With several trucks already operating, our team has been learning and adapting to this new technology. Although commercially viable electrification of haul trucks is still years in the future, in early 2025, Sierrita received one of Caterpillar's prototype battery-electric haul trucks to trial at our site. We are eager to test its capabilities and support the further advancement of new technologies.
We recognize the need to balance our environmental impacts with our mission to deliver the copper and metals necessary for modern life and the global economy. In 2024, we added new energy sources in the Americas and progressed PTFI's natural gas-fired power plant at Grasberg. Reliable water supplies are integral to our mining operations, and innovation and technological advancement will play a key role
in enhancing our water stewardship in the future. To further this, our dedicated Tailings Innovation Group is exploring opportunities to improve tailings management and reduce water consumption at our tailings facilities.
As we embrace this exciting period of innovation and advancement, our commitment to sustainability and operational excellence remains unwavering. We are driven by our goal to responsibly meet current and increasing demand for the metals we produce and will continue to innovate and improve as we are "Powering Progress."
Kathleen L. Quirk
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APRIL 23, 2025
MESSAGE FROM OUR CORPORATE RESPONSIBILITY COMMITTEE CHAIR
Dear Stakeholders,
Frances Fragos
Townsend
Corporate
Responsibility
Committee Chair
On behalf of Freeport's Corporate Responsibility Committee (CRC),
I am honored to share Freeport's recent sustainability-related progress and achievements.
Freeport is dedicated to continually advancing its responsible production practices in alignment with its business strategy and leadership role in the global copper industry.
The CRC is aligned with management's priority of workplace safety and closely monitors the company's safety performance. We recognize that Freeport's workforce faces challenging situations and extreme conditions every day and support management's unrelenting
focus on hazard recognition and reducing the frequency of high- risk incidents. These efforts are delivering positive results with the company achieving its best TRIR in more than 10 years and several sites achieving their best individual performance ever in 2024. Despite this progress, two logistics contractors delivering materials in North America were fatally injured. We will continue to monitor the company's performance and support management's efforts to strive for zero fatalities.
We commend management for continuous improvement in the company's tailings management program, which has been evolving for more than two decades. The CRC provides active oversight of the company's tailings management, including its implementation of the Global Industry Standard on Tailings Management (the Tailings Standard) across its tailings storage facilities (TSFs) in the Americas. As part of the implementation, the company undertook a systematic process to identify, analyze and minimize the risk of failure scenarios associated with its TSFs. In Indonesia, PTFI continues to actively manage and improve the performance of the tailings management system and the surrounding ecosystems.
In 2024, the company completed a human rights assessment for its global operations to identify potential risks and opportunities related to its relationships with the workforce and host communities. The assessment confirmed that Freeport's current focus areas and related programs are aligned with key risks and stakeholder needs, reaffirming the business value these programs provide.
Freeport's connection to its host communities is built on a foundation of trust and shared value. In 2024, the company continued to strengthen its work with communities to support health, education and skills training. Freeport is dedicated to increasing the quality, availability and access to education and skills training for the communities and Indigenous Peoples living near its operations.
With nearly 200,000 registered participants, programs such as DreamBuilder, which Freeport created in partnership with Arizona State University's Thunderbird School of Global Management, support entrepreneurs through practical workshops on digital marketing, finance, leadership, growth and economic autonomy.
We are operating in a dynamic environment shaped by technological advancements, geopolitical complexity, broad ranging stakeholder input and numerous other factors. We are confident that Freeport will continue to seek continuous improvement, with an unwavering commitment to "Powering Progress."
Frances Fragos Townsend
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Our Approach
FCX is a leading responsible copper producer, supplying approximately 8.5% of the world's mined copper. Copper is essential for global progress, including in the technologies necessary for accelerating electrification. We recognize the interdependencies of growth and sustainability and the importance of managing our environmental and social impacts. FCX is committed to meeting growing demand for metals through our sustainability strategy, Accelerate the Future, Responsibly. This strategy contributes to our objective of being Foremost in Copper by advancing responsible production and informing stakeholders of our values. We aim to enhance the future of copper and mining practices, delivering shared value and addressing critical sustainability issues.
Our sustainability strategy aligns with our core values and supports our company culture, helping to cultivate an ethical and engaged workforce capable of innovating the future of mining.
Morenci operations, U.S.
OUR STRATEGY
Our sustainability strategy -
Accelerate the Future, Responsibly
Robust
Empowered People and
Thriving
Governance
Resilient Communities
Environments
SUSTAINABILIT Y PILLARS
CRITICAL ENABLERS
HEALTHY AND
OPERATIONAL
COLLABORATIVE
RESPONSIBLE
ENGAGED
EXCELLENCE
PARTNERSHIPS
VALUE CHAINS
WORKFORCE
OUR VALUES: SAFET Y | RESPECT | INTEGRIT Y | EXCELLENCE | COMMITMENT
OUR BELIEFS
The beliefs that shape our focus and drive action across our most important priorities:
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OUR VALUES
Our culture is the bedrock of our sustainability strategy, aligning FCX's core company values to our work. Our core values direct the decisions we make as a company and as individual employees. These values represent who we are and how we work - everyone, everywhere, every day.
SAFETY
We put safety first - for ourselves, our co-workers and local communities - by actively promoting safe practices and health and wellness. No job is so important and no schedule so urgent that time cannot be taken to plan and perform work in a safe manner.
RESPECT
We treat each other and our stakeholders with respect. We value the ideas, perspectives and experiences of our employees and our stakeholders.
INTEGRITY
We are honest, transparent and responsible, and we do what we say we will do.
EXCELLENCE
We pursue excellence in our work by taking pride in what we do and always doing our best. We collaborate to create and implement innovative ideas and to develop solutions to issues and concerns.
COMMITMENT
We are committed to contributing to the long-term sustainability of the environment and communities where we work. We hold ourselves accountable for our environmental and social performance.
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OUR SUSTAINABILITY PILLARS
Our sustainability strategy seeks to create greater clarity on the outcomes we are working to achieve across our three sustainability pillars:
ROBUST GOVERNANCE
Good governance depends upon dedicated leadership that integrates sustainability-related considerations into everyday operations and business decisions through effective internal structures and processes. We strive to embed a holistic approach into decision making by leveraging our internal culture as well as regulatory and technical systems and expertise.
EMPOWERED PEOPLE AND RESILIENT COMMUNITIES
People are at the core of our business. We are committed to supporting the health, safety and well-being of our people, including our workforce, host communities and Indigenous neighbors. We seek to do this in a manner that increases resiliency and empowers people to thrive over the long term.
THRIVING ENVIRONMENTS
Mining impacts the natural environment. We strive to conduct our operations with minimal adverse impacts on the environment, and we support the protection of ecosystems through responsible environmental stewardship. This commitment is embedded in our management systems and our approach to continuous improvement.
OUR CRITICAL ENABLERS
We seek to deliver our sustainability strategy through four critical enablers:
HEALTHY, ENGAGED WORKFORCE
Empower our people to deliver a sustainable and innovative mining future by providing pathways for skills development and career advancement. We support our people to work safely, acquire new skills and learn and embrace new technologies. We aim to recruit and retain talented employees.
OPERATIONAL EXCELLENCE
Set the standard for responsible copper and molybdenum production. Continuous improvement enables us to drive the innovation needed to embrace new approaches, ideas and technologies that will help us meet or exceed, where feasible, future operational and sustainability-related expectations while consistently delivering stakeholder value.
COLLABORATIVE PARTNERSHIPS
Earn and maintain trust with communities and stakeholders. We seek to proactively and collaboratively engage our host communities, including Indigenous Peoples, to define and build a common vision for creating shared value.
RESPONSIBLE VALUE CHAINS
Responsibly deliver our products to the global economy. We seek to embed sustainability, integrity and compliance across our value chain - both upstream and downstream - to help ensure copper and molybdenum are produced and used responsibly.
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Stakeholder Engagement and Materiality
Our approach to stakeholder engagement is characterized by transparency, collaboration and meaningful dialogue, with the primary goal of fostering mutual understanding, trust and cooperation. We recognize the interests and concerns of our various stakeholders can change over time, which underscores the need for proactive and ongoing engagement to learn about their changing needs and perspectives. We believe effective stakeholder engagement can help reduce our sustainability-related risks by identifying the risks early and enabling us to work in partnership with stakeholders to address them, ultimately supporting our endeavors to make positive contributions to society. For these reasons, we seek to maintain stakeholder engagement programs at both the corporate and site levels throughout the year.
We have a broad range of stakeholders with whom we engage, including shareholders, employees, host communities and Indigenous Peoples, customers and suppliers, industry associations, regulators and policymakers, local and national host governments, local community associations and nongovernmental organizations (NGOs). Many individuals and teams across FCX are responsible for engaging with different stakeholder groups. Collectively, our stakeholder engagements inform management's decision making and the board's oversight, particularly in relation to our policies, practices, programs and initiatives.
We believe our dialogue with stakeholders strengthens FCX and helps us understand varying perspectives while simultaneously providing an opportunity to share information about our strategy, practices and performance. These engagements can range from informal and formal direct dialogue to anonymized, independent interviews by our sustainability assurance provider or other independent due diligence consultants. For example, each Copper Mark and Molybdenum Mark assurance visit includes context-specific, culturally sensitive direct engagement with stakeholders to provide both the assurer and site management with a clear view of how stakeholders perceive our practices.
ENGAGING WITH INDUSTRY AND BUSINESS ASSOCIATIONS
We are a member of various industry and business associations that provide a platform for advancing sustainability. Industry and business associations can be important vehicles for furthering industry contributions at the global, national, regional and local levels. We recognize the importance of collaboration with other thought leaders to help drive change and progress, which is why we offer expertise to, and partner with, various external organizations and industry associations committed to our industry and to advancing sustainability. This work enables us to understand the views of a variety of stakeholders while also forming industry agreements and positions on our responsibilities across sustainability areas and throughout our value chains. Together with our internal commitments, these memberships enable us to take meaningful action with and for our industry and our operations.
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INDUSTRY ASSOCIATIONS AND COMMITMENTS
The International Council on Mining and Metals (ICMM) is dedicated to a safe, fair and sustainable mining and metals industry, aiming continuously to strengthen performance across the global mining and metals industry. As a member company, FCX is required to implement the 10 Mining Principles, which define good environmental, social and governance (ESG) practices, and associated position statements, while also meeting 39 performance expectations.
The International Copper Association (ICA) brings together the global copper industry to develop and defend markets for copper and to make a positive contribution to sustainable development through greater use of copper in applications that support sustainability. FCX has been a member since the ICA's inception in 1989. FCX's Chief Administrative Officer served as Chair of the ICA Board of Directors from 2020 to 2022.
FCX is a member of the International Molybdenum Association (IMOA), which was founded in 1989. IMOA's members represent approximately 95% of molybdenum mine production and almost all conversion capacity outside of China. IMOA raises awareness of molybdenum by promoting its applications in alloys among fabricators, engineers, designers and material specifiers.
The Copper Mark is an independent, multi-stakeholder organization with a comprehensive responsible production assurance framework, developed specifically for the copper industry and extended to other metals, including molybdenum. Copper Mark 2.0 addresses 33 ESG risk areas using a third-party validation system. FCX has achieved, and is committed to maintaining, the Copper Mark and Molybdenum Mark at all of its operating sites globally, as applicable.
Business Roundtable is an association of Chief Executive Officers (CEOs) from leading U.S. companies working to promote a thriving U.S. economy and expanding opportunities for all Americans through sound public policy. FCX's CEO, Kathleen L. Quirk, is a member of the Business Roundtable.
GLOBAL BUSINESS COMMITMENTS
The UN Global Compact is a voluntary corporate sustainability initiative of CEO commitments to implement universal sustainability principles and to support
the Sustainable Development Goals (SDGs). FCX became a supporting member in March 2020 and seeks to contribute to achievement of the SDGs in its
host communities and by responsibly producing metals.
The United Nations Guiding Principles on Business and Human Rights (UNGPs or Guiding Principles) are the global standard on business and human rights,
UNITED NATIONS
ON BUSINESS
providing guidelines for companies to prevent and address the risk of adverse human rights impacts related to their business activities. FCX's Human Rights
GUIDING PRINCIPLES
& HUMAN RIGHTS
Policy includes a commitment to the UNGPs.
The Extractive Industries Transparency Initiative (EITI) is the global standard to promote transparent and accountable governance in the extractives sector.
FCX supports EITI's goal of promoting beneficial ownership transparency globally and has been committed to EITI since 2008.
The Voluntary Principles on Security and Human Rights (VPs) is a multi-stakeholder initiative that promotes implementation of principles that guide
companies in providing security for their operations while also respecting human rights. The VPs are the guidelines for FCX's security programs, including
interactions with host-government security personnel, private security contractors and our internal security employees. FCX was a founding member of the
VPs in 2000 and remains an active member today, reporting annually and participating in plenary sessions on the VPs.
Effective in 2025, the Wildlife Habitat Council (WHC) and World Environment Center merged to form Tandem Global. Tandem Global takes the combined
75 years of experience of the two organizations to expand opportunities to collaborate with companies to halt and restore nature loss, improve water
stewardship, enhance climate and community resilience, and support the transition to a circular economy. FCX has been a member of the WHC since 2006.
Disclaimer
Freeport-McMoRan Inc. published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 01:50 UTC.