Freeport McMoRan : 2025 Annual Report on Sustainability (2025 annual report on sustainability)
FCX
Published on 04/22/2026 at 04:53 pm EDT
COPPER
AT OUR CORE
2025 AN N UAL R EP O R T O N S U S TAI NABI L I T Y
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*
Fully Integrated Metals U
Producer with Geographically D
Diverse Operations *PT Freeport Indonesia's (PTFI's) smelter and precious metals refinery are collectively referred to as the "downstream processing facilities."
Freeport-McMoRan Inc. (FCX, Freeport or the company) 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 the United States and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. By supplying responsibly produced copper, FCX is proud to be a positive contributor to the world well beyond its operational boundaries. Additional information about FCX is available at fcx.com.
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4 LEADERSHIP REMARKS
6 OUR APPROACH
9 Ambitions and Performance Objectives
11 Stakeholder Engagement and Materiality
15 Our Strategy in Action: Responsible Production
21 Governance
24 Business Conduct
26 Human Rights
32 Responsible Value Chains
38 EMPOWERED PEOPLE
AND RESILIENT COMMUNITIES
39 Health, Safety and Well-Being
46 Workforce
54 Communities and Indigenous Peoples
66 Economic Contributions
68 THRIVING ENVIRONMENTS
69 Climate
80 Water Stewardship
88 Nature
94 Biodiversity
96 Tailings Management
104 Non-Mineral Waste Management
106 Mine Closure and Reclamation
108 Environmental Compliance
110 ABOUT THIS REPORT
112 Independent Accountants Assurance Statements
120 SUPPLEMENTAL DATA
Safford operations in Arizona, U.S.
Throughout this report, this icon indicates examples of FCX's technological advancements.
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2025 ANNUAL REPORT ON SUSTAINABILIT Y
Kathleen L. Quirk President and Chief Executive Officer (CEO)
Dear Stakeholders,
At the core of Freeport's sustainability strategy - Accelerate the Future, Responsibly - is a long-term commitment to excellence in all we do. As we reflect on both our achievements and the difficult moments of 2025, the team has shown remarkable resolve to drive progress and uphold our values throughout the year.
We are deeply saddened by the tragic loss of seven team members in the unprecedented external mud rush incident at PTFI's Grasberg Block Cave underground mine and the two additional team member fatalities that occurred in separate workplace incidents in 2025. We take these losses very seriously and have conducted comprehensive investigations into each to further strengthen our risk management practices and operating controls. Our hearts remain with the families, friends and coworkers impacted by these events.
As we move forward, strategically embracing innovation and technology is central to our shared objectives of advancing safety measures, achieving operating efficiencies, providing opportunities for employee development and supporting our environmental stewardship efforts. With the completion of the conversion of the haul truck fleet to autonomous in 2025, our Bagdad operation in Arizona became the first
U.S. mine with a fully autonomous haulage system, while identifying new career opportunities for the employees affected by the transition.
Our innovative leaching initiatives further demonstrate efforts to test new technologies and processes that we believe have the potential for significant increases in copper recovery while supporting energy and water efficiency improvements. We are currently deploying our first internally developed leaching additive, which is already showing encouraging results. We also opened the new Center for Innovative Solutions in Tucson where employees can expand research skills and advance our overall innovation journey.
We recognize that our value is deeply tied to the trust we build with the communities where we operate. We listen and engage openly with community members to gain insight into their perspectives and inform our business plans and activities. In connection with our potential major copper expansion project at El Abra, the team actively engaged with local communities and Indigenous Peoples to gain insight into their perspectives and inform project planning and evaluation. This builds on decades of engagement intended to contribute positively to the well-being and resilience of local communities.
With "Copper at our Core," Freeport is committed to supplying responsibly produced copper to a growing market. We benefit from the integration of global responsible mining frameworks and standards such as the Copper Mark and the Global Industry Standard on Tailings Management (the Tailings Standard) across our operations. These frameworks and standards help to establish Freeport as a trusted partner in copper value chains.
I'm pleased to share our 2025 Annual Report on Sustainability which further highlights how innovation and technology are not isolated efforts, but as integral to safeguarding our people, enhancing efficiencies and minimizing our environmental footprint. We are committed to acting transparently and holding ourselves accountable to our stakeholders as we seek to continuously advance the responsible production of our products.
Kathleen L. Quirk
Dear Stakeholders,
Frances Fragos Townsend Corporate Responsibility Committee Chair
As Chair of Freeport's Corporate Responsibility Committee (CRC),
I am proud to share insights into Freeport's ongoing commitment to responsible production. The CRC's role of overseeing the company's sustainability-related programs, strategies and performance is more important than ever given copper's essential and increasingly important contribution to the global economy, including electrification initiatives, technological advancement and critical energy infrastructure.
The health, safety and well-being of Freeport's workforce remain the highest priority. Regrettably, Freeport experienced three fatal events during 2025, including the heartbreaking loss of seven workers in the Grasberg mud rush incident. The full Board of Directors (Board) was engaged with management from the early days of the incident and throughout the search and recovery process. A robust investigation was completed and reviewed with the Board, and management developed plans to address identified risks and prevent recurrence. These actions, together with clear communication of future plans, reflect Freeport's core values and commitment to learning from this tragedy and strengthening its safety practices.
In support of Freeport's commitment to human rights, the company completed three important human rights impact assessments during 2025: one at PTFI's downstream processing facilities and the other two at Freeport's Colorado operations. These assessments provide valuable information on how human rights are embedded in operations and opportunities for improvement.
Freeport also recognizes the importance of managing environmental impacts while seeking to grow copper production. As part of this effort, Freeport remains committed to enhancing its climate resiliency and responsibly managing its water use and tailings. Embracing technology and advancing innovative leaching initiatives support Freeport's decarbonization efforts and water stewardship initiatives.
We commend the ongoing work being done across the organization to protect existing water supplies, prepare for future water risks, optimize water use efficiency, and enhance the resilience of operations and surrounding communities. In 2025, 83% of the water used for operations was from recycled or reused sources. Building on efforts
to use lower quality water, Cerro Verde recently signed a strategic agreement with the local municipality to strengthen collaboration for the management of water and sanitation in Arequipa. These actions reflect management's focus on responsible production, creating shared value and implementing sustainable solutions for the future.
Through its tailings innovation programs, Freeport aims to manage its tailings responsibly and effectively across its sites globally. After several years of effort, Freeport completed the implementation of and verification of conformance with the Tailings Standard at all applicable tailings storage facilities during 2025.
The CRC encourages management's ongoing engagement with stakeholders and investments in innovation and technology, both of which are essential to navigating future challenges and opportunities. By fostering a commitment to sustainability and transparency, we are confident that Freeport will continue to lead in responsible copper production, delivering value for its stakeholders for years to come.
Sincerely,
Frances Fragos Townsend
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Potable water distribution infrastructure financed by Cerro Verde, Peru.
Our Approach
FCX is a leading responsible copper producer-supplying approximately 7% of the world's mined copper in 2025. Copper is essential to global progress, including
for electrification initiatives, technological advancement and growing connectivity globally. We recognize the interdependencies of growth and sustainability and the importance of managing our environmental and social impacts while supplying copper to a world with increasing need for the metal. We are committed to
the objective of being Foremost in Copper and to our sustainability strategy,
Robust Governance
SUSTAINABILIT Y PILLARS
CRITICAL ENABLERS
HEALTHY AND ENGAGED WORKFORCE
OPERATIONAL EXCELLENCE
COLLABORATIVE PARTNERSHIPS
RESPONSIBLE VALUE CHAINS
OUR VALUES: SAFETY | RESPECT | INTEGRITY | EXCELLENCE | COMMITMENT
enhance the future of copper and mining practices, delivering shared value and addressing critical sustainability issues.
OUR STRATEGY
Our sustainability strategy -
Accelerate the Future, Responsibly - is designed to achieve enduring progress and is comprised of four components: our beliefs, our values, our critical enablers and our sustainability pillars.
Empowered People and Resilient Communities
Thriving Environments
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The beliefs that shape our focus and drive action across our most important priorities:
to innovate and challenge the status quo, and the financial strength necessary to chart new paths and weather any storm. Not only do we apply this internally, but we use the same lens in our work with external stakeholders, including with local communities and Indigenous Peoples.
OUR VALUES
Our culture is the bedrock of our sustainability strategy, aligning FCX's core 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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2025 ANNUAL REPORT ON SUSTAINABILIT Y
We seek to deliver our sustainability strategy through four critical enablers:
Empower our people to deliver a sustainable and innovative mining future by providing pathways for skills development and career advancement. We
invest in our people so they can work safely, acquire new skills and learn and embrace new technologies. We aim to recruit and retain talented employees.
Set the standard for responsible metals 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.
Earn and maintain trust with communities and stakeholders. We seek to proactively and collaboratively engage our local communities, including Indigenous Peoples, to define and build a common vision for creating shared value.
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.
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.
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.
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, local communities and Indigenous neighbors. We seek to do this in a manner that increases resiliency and empowers people to thrive over the long term.
Our sustainability strategy seeks to create greater clarity on the outcomes we are working to achieve across our three sustainability pillars:
Ambitions and Performance Objectives
In alignment with our sustainability strategy and informed by our materiality assessment and ongoing stakeholder engagement, we have established ambitions and performance objectives for each of our key focus areas, which are outlined in this section.
ROBUST GOVERNANCE
FOCUS AREA
AMBITION
PERFORMANCE OBJECTIVES
2025
PERFORMANCE
PAGE
Business Conduct
N/A¹
Annual Target: Complete comprehensive training on Principles of Business Conduct (PBC)
Achieved
25
Annual Target: Train at least 95% of selected employees on anti-corruption laws, regulations and company policies and procedures
Achieved
25
Human Rights
We are an enabling partner for the respect and promotion of human rights within our own operations and across our value chain.
2025 Target: Complete human rights impact assessments (HRIAs) at PTFI's downstream processing facilities and Colorado operations (Climax and Henderson)
Achieved
28
2026 Target: Complete HRIAs at El Paso and Fort Madison
N/A
28
2026 Target: Assess opportunities for continual improvement work on grievance mechanisms at both Cerro Verde and PTFI
N/A
30
Annual Target: Incur zero gross human rights violations² at our operations by employees or contractors
Achieved
131
Responsible Value Chains
We work with our supply chain and business partners to manage and promote responsible and sustainable practices.
2025 Target: Begin evaluation of Tier 2 and Tier 3 suppliers³ and their associated sustainability-related risks
Achieved
33
2026 Target: Continue evaluation of Tier 2 and Tier 3 suppliers³ and their associated sustainability-related risks
N/A
33
Ambition statements were not developed for compliance obligations.
Gross human rights violation - There is no uniform definition under international law; however, FCX's ongoing data collection and review processes are guided by the United Nations Office of the High Commissioner report,
"The Corporate Responsibility to Respect Human Rights - An Interpretive Guide," to identify such types of violations. In addition, FCX uses specific interpretation guidance for certain types of violations from various international organizations such as the International Labour Organization (ILO).
Tier 2 suppliers are defined as suppliers or subcontractors to FCX's direct suppliers/contractors; Tier 3 suppliers are suppliers or subcontractors to FCX's Tier 2 suppliers.
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2025 ANNUAL REPORT ON SUSTAINABILIT Y
EMPOWERED PEOPLE AND RESILIENT COMMUNITIES
FOCUS AREA
AMBITION
PERFORMANCE OBJECTIVES
2025
PERFORMANCE
PAGE
Health, Safety and Well-Being
We put safety first - for ourselves, for each other and for local communities - by championing a culture of health, safety and well-being wherever we do business.
2025 Target: 0.64 Total Recordable Incident Rate (TRIR)
Achieved
41
2026 Target: 0.55 TRIR
N/A
41
Annual Target: Incur zero workforce fatalities (employees and contractors)
Target not met
41
Workforce
Our culture is safety-focused, respectful and inclusive to empower our workforce to innovate, adapt and succeed.
2025 Target: Implement four new critical lines of progression (LOPs) for U.S. frontline workforce into our Learning Management System (LMS), enhancing career development and tracking
Target not met
48
2026 Target: Deploy new leadership training program in alignment with operational initiatives and innovation opportunities to at least 85% of U.S. operational leaders
N/A
48
Communities and Indigenous Peoples
We work in partnership with our host communities and Indigenous Peoples to earn and maintain their trust and to contribute to long-term shared value and resilience.
2025 Target: Pilot methods to better evaluate the effectiveness of our social programs
Achieved
54
2026 Target: Expand social impact measurements to projects supporting communities near Cerro Verde and El Abra
N/A
65
2026 Target: Formalize and integrate Free, Prior, Informed Consent (FPIC) assessment tool as part of the Project Development Sustainability Review (PDSR) process for applicable projects
N/A
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THRIVING ENVIRONMENTS
FOCUS AREA
AMBITION
PERFORMANCE OBJECTIVES
2025
PERFORMANCE
PAGE
Climate
We aspire to participate in - and positively contribute to
- a 2050 net zero economy.
2025 Target: Participate in the development of a science-based copper sectoral decarbonization approach (SDA) for the copper industry
Achieved
72
2026 Target: Establish science-based GHG target(s) in alignment with the newly developed SDA for the copper industry
N/A
72
2030 Target: Achieve greenhouse gas (GHG) emissions reduction targets (vs. 2018 baseline)
In progress
72
Water Stewardship
As responsible water stewards, we aim to minimize our impacts on shared resources, while supporting the longterm resilience of our operations, host communities and the environment.
2025 Target: Develop internal water stewardship plans for seven operations with the highest water stress ratings
Achieved
81
Annual Target: Advance water stewardship objectives from site-level water stewardship plans
N/A
81
Biodiversity
We aim to avoid or minimize impacts from our operations on biodiversity while contributing to the conservation of biodiversity beyond our boundaries.
2027 Target: Formalize biodiversity management plans for each of our seven downstream processing facilities
N/A
94
Tailings Management
We strive to continuously manage, enhance and innovate our tailings systems in a manner that minimizes impacts to stakeholders and the environment.
2025 Target: Implement the Tailings Standard at remaining applicable tailings storage facilities (TSFs) by August 2025
Achieved
98
2025 Target: Complete construction of a geostable tailings project at Sierrita
Achieved
99
2026 Target: Advance tailings innovation initiatives through the study of high-density thickened technology, filtration technology and/or geostable technology at various sites
N/A
99
Annual Target: Maintain conformance with the Tailings Standard for applicable TSFs
Achieved
98
Environmental Compliance
N/A¹
Annual Target: Incur zero significant environmental events (as identified by our sustainability risk register process)
Target not met
109
Annual Target: Incur zero penalties in amounts exceeding $100,000
Achieved
109
1. Ambition statements were not developed for compliance obligations.
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Stakeholder Engagement and Materiality
Transparency, collaboration and meaningful dialogue are fundamental to stakeholder engagement, with the objective of fostering mutual understanding, trust and cooperation.
We engage with a broad range of stakeholders, including shareholders, employees, local community groups and Indigenous Peoples, customers and suppliers, industry and business associations, regulators and policymakers, local and national governments and nongovernmental organizations (NGOs). We recognize that each group has distinct and evolving interests. We value ongoing engagement and regularly monitor what matters most to FCX and our stakeholders, enabling us to identify emerging issues early and prioritize actions that create shared value and support long-term business objectives.
Different stakeholder groups are managed by various teams across FCX at both corporate and site levels. These engagements inform management's decision making and the Board's oversight of our policies, practices, programs and initiatives.
We believe our dialogue with stakeholders strengthens our understanding of varying perspectives while simultaneously providing an opportunity to share information about our own strategies, 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 local stakeholders to provide both the assurer and site management with a clear view of how stakeholders perceive our practices.
We are members 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 develop good data; share practices; and, where appropriate, help drive change and progress; which is why we offer expertise to, and partner with, various external organizations and industry associations. 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.
El Abra, Chile.
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2025 ANNUAL REPORT ON SUSTAINABILIT Y
EXAMPLES OF OUR 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 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, and FCX's Chief Administrative Officer served as Chair of the ICA Board of Directors from 2020 to 2022.
The International Molybdenum Association (IMOA), founded in 1989, and its 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 environmental, social and governance risk areas using a third-party validation system. FCX remains committed to maintaining the Copper Mark and Molybdenum Mark, as applicable, at all our operating sites globally.
Business Roundtable is an association of 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 is a member of the Business Roundtable.
EXAMPLES OF OUR GLOBAL BUSINESS COMMITMENTS
The United Nations (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 local communities and by responsibly producing metals.
UNITED NATIONS GUIDING PRINCIPLES ON BUSINESS & HUMAN RIGHTS
The United Nations Guiding Principles on Business and Human Rights (UNGPs or Guiding Principles) are the global standard on business and human rights, providing guidelines for companies to prevent and address the risk of adverse human rights impacts related to their business activities. FCX's 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, when possible.
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.
We are committed to maintaining the highest levels of ethical and legal conduct and transparency regarding our political activity and spending practices, and to complying with applicable laws and regulations.
We exercise our right and responsibility to participate in public policy matters by staying informed on public matters important to our business and interacting, where appropriate, with elected and appointed government officials, regulators and their staff.
Our membership in trade associations and other organizations provides information and assistance with policy issues of concern to us. When we join a trade association, we do so because we believe the association generally
represents FCX's best interests, although importantly, our membership does not mean we support or agree with an association's position on every issue.
Outside the U.S., we have significant operations in Indonesia, Peru, Chile and Europe. We work cooperatively with local, regional and national governments, and with supranational bodies, such as the European Union (EU), as issues arise in these jurisdictions that may affect our business.
With agreement from senior management, we may engage in dialogue with government officials on issues that affect our business goals and objectives, including the jobs that our businesses add to and support in local economies. Internationally, we engage in non-partisan political activity and spending as permitted by applicable laws and regulations, including the U.S. Foreign Corrupt Practices Act (FCPA) and similar anti-corruption and anti-bribery laws of the other jurisdictions in which we operate. Employees are trained on these requirements and empowered to report potential violations.
FCX's political activity and spending practices are overseen and approved by senior management. In addition, the Board's CRC periodically reviews our political activity and spending practices. Our political spending also is subject to legal review. For more information, refer to our Political Activity and Spending Practices webpage, which details our expectations regarding this topic. These expectations apply to FCX and its affiliated political action committees (PACs).
We do not make corporate contributions to individual political candidate committees. In Colorado and New Mexico, we may make corporate contributions to certain independent expenditure committees, which do not contribute to candidate committees but can indirectly support or oppose candidates by funding campaign expenditures not controlled by or coordinated with any candidate.
Separately, we sponsor a federal PAC as well as PACs in the states in which we operate. All FCX-affiliated PACs are fully compliant with applicable laws and regulations, and their activities are bipartisan. Political spending by these PACs is solely funded by the voluntary individual contributions of eligible employees. Information on our political contributions is publicly available on the Corporate Governance section of our website.
FCX has been a top-scoring company for its political spending disclosure and accountability for the last decade and remained a Trendsetter* by the CPA-Zicklin Index.
*According to the 2025 benchmarking study released by the Center for Political Accountability and The Wharton School's Zicklin Center for Governance and Business Ethics.
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2025 ANNUAL REPORT ON SUSTAINABILIT Y
This report reflects the results of an externally led sustainability materiality assessment which incorporates impact materiality, as described by the Global Reporting Initiative (GRI) Standards and in reference to the topics included in GRI 14: Mining Sector Standards (published in 2024). This assessment helped us to prioritize the sustainability-related actual and potential, negative and positive external impacts of our business. A range of inputs were taken into consideration, including FCX's enterprise risk management (ERM) program, human rights saliency assessment, site-level sustainability risk registers, topics raised through stakeholder and customer engagements, and industry standards and guidance.
The understanding of impact materiality included an analysis of relevant topics by internal subject matter experts; a direct survey completed by certain stakeholders, including customers and NGOs; and mapping of external evidence to validate
the findings. In addition to the focus on external impact, we also considered the business context for each sustainability topic to evaluate the impact the topics could have on FCX's performance. Along with the previously mentioned inputs, this included interviews with the Sustainability Leadership Team (SLT) and a survey of members of FCX's internal sustainability network. The results were reviewed and reaffirmed by our SLT in 2026. By considering both external
impact and internal context, we believe that we have identified the most relevant sustainability-related topics for our business and stakeholders.
Following this assessment, our three sustainability strategy pillars (Robust Governance, Empowered People and Resilient Communities, and Thriving Environments) and our core strategic focus areas remain unchanged from prior years, demonstrating the endurance and long-term perspective of our
sustainability strategy. In addition to the topics listed in the materiality matrix, the assessment identified several cross-cutting themes, including: (1) Governance, Compliance and Ethics, (2) Risk Management, (3) Nature and (4) Human Rights.
FCX SUSTAINABILITY MATERIALITY MATRIX
CIRCULAR COPPER
RESPONSIBLE VALUE CHAINS
BIODIVERSITY
TAILINGS
CLIMATE MANAGEMENT
ECONOMIC COMMUNITIES AND CONTRIBUTIONS INDIGENOUS PEOPLES
HEALTH, SAFETY AND WELL-BEING
WATER STEWARDSHIP
WORKFORCE BUSINESS CONDUCT
CONFLICT-AFFE AND HIGH-RISK
MINE CLOSURE AND RECLAMATION
ARTISANAL AND PUBLIC POLICY
SMALL-SCALE MINING
NON-MINERAL
WASTE SECURITY
PRACTICES
AIR POLLUTION
CTED AREAS
CYBERSECURITY
MINERAL WASTE
MOST MATERIAL
TOPICS TO MONITOR
ENVIRONMENTAL / SOCIETAL IMPACT
BUSINESS CONTEXT
Note: As used in this report, the term "materiality" is based on a different definition of materiality than used in U.S. federal securities laws and regulations or the disclosure requirements of the Securities and Exchange Commission (SEC). Please refer to Cautionary Statement on page 111.
FCX's most recent materiality assessment was conducted in 2024.
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Our Strategy in Action: Responsible Production
Our actions as a responsible producer reflect the high standards we work to uphold across all aspects of our business. Our sustainability strategy supports the long-term success of our business by proactively managing sustainability-related risks and opportunities across FCX. Critical to this is continued collaboration with stakeholders to innovate and further advance the sustainability-related practices of the industry.
We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry and extended to other metals, including molybdenum. To achieve the Copper Mark, each site is required to complete an independent external assurance process, including workforce and external stakeholder interviews, to assess conformance with various environmental, social and governance criteria. Awarded sites must be revalidated every three years.
We have achieved, and are committed to maintaining, the Copper Mark and Molybdenum Mark, as applicable, at all our operating sites globally. With the completion of PTFI's downstream processing facilities, we currently are working toward their initial Copper Mark validation.
View the independently assured site-level assessment reports at coppermark.org/participants-home/participants/.
Product at our Cerro Verde operations, Peru.
ICMM is an organization dedicated to a safe, fair and sustainable mining and metals industry. ICMM member companies, including FCX as a founding member, are required to comply with its 39 performance expectations and 10 Mining Principles for sustainable development. These expectations, along with topic-specific position statements and assurance and validation requirements, define ICMM's membership commitments. The 39 performance expectations must be validated by a third-party assurance provider at the site level, with annual activities published, including how expectations will be met.
The Copper Mark and ICMM, along with the Mining Association of Canada and World Gold Council, are in the process of combining their individual standards and principles into one voluntary standard. The four organizations - collectively the partners of the Consolidated Mining Standard Initiative (CMSI) - are working to reduce complexity and define responsible practices for mining, smelting and refining companies. The new consolidated standard is expected to be finalized later in 2026 and replace the standard as the basis for achieving the Copper Mark as well as the ICMM Mining Principles Framework, position statements and performance expectations. As a member of the CMSI Industry Advisory Group and the Copper Mark Advisory Council, FCX has been actively involved in providing feedback on the development of the draft standard, with a particular emphasis on promoting a path for continuous improvement for all mining companies regardless of maturity levels. FCX intends to adopt the new standard following the implementation period.
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2025 ANNUAL REPORT ON SUSTAINABILIT Y
Our commitment to responsible production is grounded in a holistic, data-driven approach to managing risks. By integrating robust programs and specialized tools, we proactively identify, evaluate and address sustainability-related risks throughout our operations. This includes systematic processes such as ERM and sustainability risk registers alongside targeted solutions such as climate scenario analyses and human rights impact assessments that enhance accountability and drive continuous improvement.
Our ERM program provides the Board with information about the company's enterprise risk profile and allows the Board to assess and monitor the risks over the short, medium and long term, both within and outside our operational boundaries. Enterprise-level risks are identified and assessed through our ERM program, which is designed to provide cross-functional executive insight across the business to identify and monitor risks, opportunities and emerging trends that can impact our strategic business objectives. Sustainability-related risks embedded within FCX's ERM program include health and safety performance, human capital management, community engagement and changing climate conditions, as well as water stewardship and tailings management. Further, human rights risks and impacts are considered as part of our ERM program when evaluating the stakeholder-related consequences of our portfolio of enterprise risks. The Board has delegated oversight responsibility for certain areas of risk to its standing committees. These committees receive regular reports from management responsible for monitoring and mitigating key risk exposures defined within our ERM program, and the committee chairs provide regular reports to the full Board on relevant areas of oversight.
Our ERM Management Committee is comprised of senior leaders with responsibility across operations and core business functions, and with a breadth of knowledge and experience covering the risks FCX faces. An annual report on our enterprise risks is presented to FCX's Audit Committee and/or the full Board.
The ERM Management Committee is responsible for providing input and oversight on our ERM program, which seeks to link our global operations and business functions to (1) identify enterprise risks and opportunities, (2) analyze and prioritize risks, (3) review risk control environments and determine additional management actions where warranted, and (4) monitor and report progress. Management
and FCX's internal audit firm coordinate to align assurance activities with priority enterprise risk topics.
Our cybersecurity risk management and strategy processes are led by our Chief Information Officer (CIO) and our Chief Information Security Officer (CISO),
both of whom report to our Chief Innovation Officer. Our CIO is responsible for the strategy, deployment, operational effectiveness and risk management of our technology systems and operations. Our CISO is responsible for protecting our global technology systems from cybersecurity incidents, which includes overseeing the deployment of cybersecurity controls, managing a team of cybersecurity professionals and reporting on cybersecurity matters to management and the Audit Committee of our Board. While management is
responsible for the day-to-day management of cybersecurity risks, our Board and its Audit Committee have ongoing oversight roles.
Our cyber risk management program is designed to assess, identify, manage, mitigate and respond to cybersecurity threats and incidents and is integrated into our overall ERM program. We regularly evaluate and assess the threat landscape and our security controls, including through audits and assessments, regular network and endpoint monitoring, vulnerability testing, penetration testing and tabletop exercises that include senior management. The underlying controls of our cyber risk management program are based on recognized
best practices and industry standards for cybersecurity and information technology, including the National Institute of Standards and Technology Cybersecurity Framework.
To learn more about our approach to cybersecurity-related risk management, strategy and governance, please refer to our annual financial reports on fcx.com.
Read our Corporate Governance Documents
SUSTAINABILITY-RELATED DATA MANAGEMENT PROCESS
Our sustainability-related data collection and management process is an important component of our responsible production approach. We have built and deployed a software system to track data on critical sustainability-related processes as well as actions related to risks and opportunities. In 2025, the platform was improved to enhance data visualization capabilities, allowing us to better interpret data for monitoring and evaluating the effectiveness of our programs. These enhanced capabilities are expected to support our ability
to more quickly identify risks and evaluate incidents, create action plans and refine our management approach over time. The program also supports task assignments and tracking across action plans, underscoring our commitment to accountability, transparency and continuous improvement.
Our internal sustainability network acts as a liaison between corporate and site-based personnel to implement our sustainability strategy across our operations. The sustainability network equips on-site personnel with the knowledge and tools needed to recognize risks and opportunities at their respective sites. On a monthly basis, the sustainability network connects on-site and corporate personnel to discuss company practices and tools as well as existing, new and emerging sustainability-related drivers relating to, among other things, nature, water, climate, risk management, strategy, social performance, disclosure and the Copper Mark.
We translate our responsible production commitments into everyday work through our sustainability risk register, which identifies, prioritizes, manages and tracks sustainability risks and actions at both the corporate and site levels. Defined
Technology Center Tucson, located in Arizona, U.S.
in a global standard operating procedure, the process uses a risk assessment matrix to prioritize risks based on their likelihood and consequence, using functional-area-specific impact definitions to drive action. All our sites review their operational risk profiles at least annually and prepare detailed action plans for risks rated as actionable. Sites use the sustainability risk register to identify risks and opportunities in relation to their operation and stakeholders. Any new risks identified before the annual sustainability risk register review are incorporated into the registers and managed through the overall process.
The sustainability risk register prioritizes risks that could have significant negative consequences to our business, communities and/or other stakeholders in areas such as health and safety, human rights, environmental management, community development and economic impact. It also enables sites to identify and prioritize opportunities that could have positive consequences. The sustainability risk register and action plans are the foundation of our internal processes for understanding site-level risk and our external assurance program at both the corporate level and at operating sites.
The risks included in the sustainability risk register are mapped to our external commitments, including ICMM's performance expectations and the Copper Mark's requirements. We work cross-functionally to implement our various commitments, and our sustainability risk register enables site-level management teams to focus on priorities while promoting globally consistent implementation across our operations. We continue to monitor opportunities to improve our risk processes and subsequently update them. Improvements to our sustainability risk register process are underway and expected to be implemented in 2026.
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2025 ANNUAL REPORT ON SUSTAINABILIT Y
We employ a variety of baselining and risk management tools to identify and evaluate potential sustainability-related risks and impacts associated with our growth projects. Together, these tools help us embed sustainability
topics into a robust decision-making framework that allows us to measure our performance over time as well as build the necessary action plans to drive responsible production.
We perform Environmental and Social Impact Assessments, which identify stakeholders that may be affected and potential impacts from the outset of new projects. We integrate human rights considerations into these assessments to be better informed about potential impacts from growth projects.
El Abra has supported its nearby communities for many years, including through collaboration with local unions representing fishermen, divers, and shellfish and seaweed collectors in the coastal city of Tocopilla, Chile.
As part of the internal risk review process, the Project Development Sustainability Review (PDSR) considers sustainability issues during the study of potential mine expansion and development projects. The PDSR process enables us to proactively identify, prioritize and manage potential risks throughout the development stages prior to beginning construction. The PDSR is maintained and updated during construction, ultimately serving as a key input to the sustainability risk register once a project is operational. Key focus areas identified at different project stages have included: access to water, energy and materials; potential impacts to water resources, air quality, biodiversity and human rights; community receptivity; economic impacts; and land acquisition and resettlement. The process also supports preparation for future closure of operations.
In connection with a potential expansion project at El Abra, we have advanced the Environmental Impact Study (EIS) required to authorize the project,
which identifies potential impacts and, where necessary, actions to mitigate those impacts. Submitted in March 2026, the EIS builds on nearly 10 years of environmental and social baseline studies that evaluate potential impacts to biodiversity, water, air quality, Indigenous Peoples, archaeology and cultural heritage, among others. If approved, the expansion would extend the life of mine by up to 40 years, generating a range of social and economic opportunities.
We also continued to advance the PDSR process, which is an internal process to evaluate risks associated with the project and develop associated action plans. In support of our objective of obtaining Free, Prior and Informed Consent (FPIC) for new projects and material expansions where significant impacts to Indigenous Peoples may occur, we piloted the use of an FPIC assessment tool as part of El Abra's PDSR process. The tool integrates best practices, training, engagement and impact assessments to document an organization's pursuit of FPIC. Throughout 2025, El Abra held more than a dozen community meetings to describe the potential expansion project's characteristics, anticipated impacts and possible mitigation measures. We plan to incorporate feedback received into future project planning. Finally, as we continue to navigate the project process, we utilize the International Finance Corporation (IFC) Performance Standards and the mitigation hierarchy to help inform risk mitigation strategies and identify opportunities. The decision to proceed with and timing of the potential project will take into account overall copper market conditions, required permitting and other factors.
We do not have any new or ongoing involuntary community resettlement activities. When advancing new greenfield projects and brownfield expansions, we seek to avoid involuntary displacement of people by exploring alternative project designs. Where community resettlement is unavoidable, we are committed to complying with applicable host country laws and regulations, the UNGPs,
IFC Performance Standard 5: Land Acquisition and Involuntary Resettlement and IFC Performance Standard 7: Indigenous Peoples (as applicable). This requires careful planning and implementation, including information disclosure, consultation and informed participation of affected people to minimize impacts through appropriate mitigation measures, with particular attention paid to vulnerable households, which is reflected in our Social Performance Policy
and Human Rights Policy. If resettlement is deemed unavoidable, we develop a resettlement action plan and/or livelihood restoration plan, as applicable, with the objective of maintaining or improving standards of living and livelihoods.
When advancing brownfield expansions and greenfield projects, we seek to avoid involuntary displacement of people by exploring alternative project designs.
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Our Bagdad operations in Arizona, U.S.
Robust Governance
FCX's governance framework provides the foundation for delivering consistent, long-term value for our stakeholders, and reflects the central role sustainability
plays in our business. Designed to uphold high standards of responsible production, our governance structure includes the expectation of ethical business practices, reinforces our codes of conduct, and helps build trust among employees, suppliers, customers, regulators and the communities where we operate. In line with international expectations of responsible business conduct, we are committed to respecting human rights, and we maintain mechanisms to identify and mitigate potential and actual adverse impacts, and address those impacts when they occur. In parallel, as a responsible metals producer, we are expected by customers, NGOs, regulators and other stakeholders to apply robust due diligence practices across our supply chain to support alignment between the goods and services we source and our values and sustainability commitments.
2025 PERFORMANCE HIGHLIGHTS
Ongoing Board oversight of key sustainability initiatives
Completed three human rights impact assessments
Initiated an evaluation of the potential sustainability-related risks of our Tier 2 and 3 suppliers
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RELATED POLICIES
RELEVANT RESOURCES
Principles of BusinessConduct
Responsible Sourcing ofMinerals Policy
Anti-Corruption Policy
Business Partner Codeof Conduct
Human Rights Policy
Proxy Statement
Board Committees andCharters
Suppliers Portal
UK Modern Slavery Act Statement
Annual Report to the VoluntaryPrinciples Plenary
El Abra, Chile.
Disclaimer
Freeport-McMoRan Inc. published this content on April 22, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 22, 2026 at 20:51 UTC.