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Stock Exchange Symbol: (FCX:US)

Does your company have a publicly available commitment to respect human rights?

The Freeport-McMoRan Human Rights Policy outlines our dedication to respecting and promoting human rights wherever we do business. We are committed to conducting our worldwide operations in a manner that ensures all employees treat everyone in and around our operations with dignity and respect. [link]

The cornerstone of our commitment to integrity is our Principles of Business Conduct, which set forth the global system of principles that our workforce must follow in all activities – from complying with laws to avoiding conflicts of interest. The Freeport-McMoRan Principles of Business Conduct includes our belief in promoting the rule of law and protecting human rights. [link]

We believe in doing business only with Suppliers who demonstrate the highest standards of ethical business conduct. The Freeport-McMoRan Supplier Code of Conduct is based on our Principles of Business Conduct and is provided to ensure that our expectations and standards are understood and followed by everyone involved in the Company’s operations. [link]

Update 2016:

Freeport-McMoRan is committed to respecting human rights. Our Human Rights Policy requires us (and our contractors) to conduct business in a manner consistent with the Universal Declaration of Human Rights, and to align our human rights due diligence practices with the United Nations Guiding Principles on Business and Human Rights (UN Guiding Principles).

Freeport-McMoRan Inc. Human Rights Policy: http://www.fcx.com/sd/approach/policies.htm

The cornerstone of our commitment to integrity is our Principles of Business Conduct, which set forth the global system of principles that our workforce must follow in all activities. The Freeport-McMoRan Principles of Business Conduct includes our belief in promoting the rule of law and protecting human rights.

Freeport-McMoRan Inc. Principles of Business Conduct: http://www.fcx.com/sd/approach/policies.htm

We believe in doing business only with Suppliers who demonstrate the highest standards of ethical business conduct. The Freeport-McMoRan Supplier Code of Conduct is based on our Principles of Business Conduct and is provided to suppliers to ensure that our expectations and standards are understood and followed by everyone involved in the company’s operations.

Freeport-McMoRan Inc. Supplier Code of Conduct: http://www.fcx.com/sd/approach/policies.htm

How are human rights governed in your company?

The Corporate Responsibility Committee of the Board of Directors oversees the Company’s sustainable development programs, including our human rights policy and practices. [link] The Freeport-McMoRan Sustainable Development Leadership Team provides strategic and operational guidance regarding our sustainability commitments. The team is sponsored by our Executive Vice President and Chief Administrative Officer, and is led by our Vice President of Environmental Services and Sustainable Development. The team includes business unit presidents and senior personnel from the safety, supply chain, human resources, sales, compliance, and land and water functions.

During 2013, the team reviewed and addressed key issues and projects including our corporate-level Human Rights Impact Assessment and overall process for integration of the UN Guiding Principles for Business and Human Rights into our programs; development of a Supplier Code of Conduct that specifies our expectations of suppliers with respect to sustainability areas such as anti-corruption, human rights, social and environmental performance; and development of Freeport Compliance eXchange, a survey-based online due-diligence software designed to assess the risk level of suppliers based on criteria related to anti-corruption and human rights. [link]

At a site level, our site human rights compliance officers oversee compliance and training, as well as a grievance mechanism for reporting, documenting and following-up on all human rights allegations that are reported in our areas of operations. [link]

How are human rights managed within your company?

Freeport-McMoRan uses a sustainable development risk register process for all our operating sites. Human rights and security are included in this register as risk areas for sites to assess, and any risks ranked as actionable require development and implementation of an action plan. In addition, at select sites with higher risk portfolios, our site human rights teams conduct risk assessments specific to human rights and security. In 2013, we also continued to implement a Project Development Sustainability Review process for new or expansion projects. The process includes an assessment of risks and opportunities associated with the project, including security and human rights factors. In order to better assess potential human rights-related risks in our supply chain, we developed a web-based due diligence tool for contractors and suppliers. The tool issues a risk assessment questionnaire to contractors and suppliers for completion prior to being approved as a business partner with our Company. Among several legal, regulatory, and reputational risk areas, the questionnaire includes questions related to human rights and security that we believe important to the integrity of our supply chain. In 2013, we advanced our work to integrate the UN Guiding Principles on Business and Human Rights into our existing human rights program. We contracted a UK-based advisory firm to assist us with a corporate-level human rights impact assessment to identify potential impacts across our portfolio and assess opportunities for further due diligence at the operating level using a risk-based approach. For more information, including statistics on our human rights training programs, please see our Security and Human Rights reporting at: [link] and our 2013 Voluntary Principles on Security and Human Rights reports to the Plenary: [link].

Update 2016:

Freeport-McMoRan uses a sustainable development risk register process for our operating mining and metals processing sites. Human rights and security are included in this register as risk areas for sites to assess, and any risks ranked as actionable require development and implementation of an action plan. In 2015, we also continued to implement a Project Development Sustainability Review process for new or expansion projects. The process includes an assessment of risks and opportunities associated with the project, including security and human rights factors.

In 2015, we continued to integrate the UN ‘Protect, Respect and Remedy’ framework and the supporting Guiding Principles into our business. This included coordination between corporate resources and operational teams to review site sustainable development risk registers from a human rights perspective and to identify related risks, beyond traditional security matters. We worked with a third party to complete a site-level human rights impact assessment (HRIA) at our TFM operation in the DRC. Action plans for the potential and actual impacts identified are embedded and tracked within TFM’s sustainable development risk register process. These plans were developed to support continuous improvement of existing systems and processes, and establish new measures to investigate, avoid, mitigate and/or remedy identified human rights impacts. For more information, including statistics on our human rights training programs and TFM HRIA results, please see our Security and Human Rights reporting and our 2015 Voluntary Principles on Security and Human Rights report to the Plenary at: [http://www.fcx.com/sd/security/index.htm].  

What is the company’s approach to the engagement of stakeholders (including workers, and local communities impacted by the company’s activities), on human rights issues?

Project planning and project life-cycles can span decades. We consider early and effective engagement with stakeholders critical for creation of mutual opportunities and for the reduction of sustainability-related risks to our plans. Our mining operations maintain 5-year community engagement and development plans that identify affected or interested parties and appropriate methods for ongoing engagement. Local strategies for stakeholder engagement are aligned with business-related risks and opportunities identified in each operation’s Sustainable Development Risk Register. We engage with hundreds of entities via community foundations, formal grievance systems, individual meetings and operations tours, workshops, participatory group panels or focus groups, town hall meetings, and surveys. We also engage at the earliest stages through regulatory consultation processes with local governments and community groups, including indigenous peoples, as part of expansion plans for our copper business. Our corporate Sustainable Development Department and senior personnel regularly work with the socially responsible investment (SRI) community and NGOs through in-person meetings and site visits, teleconferences, inquiries via email and conferences.

Key topics of interest include safety and occupational health, human rights, security, and community engagement programs. As an example, during September and October of 2013, we held stakeholder roundtable meetings in New York and London to review the methodology, process and initial outputs of our corporate-level Human Rights Impact Assessment. More than 30 participants from over 20 entities, including academia, NGOs, business partners and the investment community, participated and provided meaningful input with respect to our human rights programs. For more information, please see: [link]

Update 2016:

In the mining sector, project life-cycles can span decades. That is why early, transparent and consistent engagement with stakeholders is critical. Doing so creates mutually beneficial opportunities and reduces sustainability-related risks to our plans. We always seek strategic partnerships with host governments, communities and development partners to ensure the viability of our projects while delivering meaningful benefits including post-closure.

Our operational-level teams regularly engage with community stakeholders, development institutions and nongovernmental organizations (NGOs). Mining operations maintain 5-year community engagement and development plans that identify affected or interested parties and programs for ongoing engagement and consultation. Issues raised through stakeholder engagement help inform the risks and opportunities identified in each operation’s sustainable development risk register and assist in developing social investment strategies. Resulting engagements with hundreds of entities occur via community foundations, formal grievance systems, workshops, participatory group panels or focus groups, town hall meetings and surveys. Engagement with stakeholders also occurs through regulatory consultation processes with local governments and community groups, including indigenous peoples, as part of project plans.

Our corporate Sustainable Development Department and senior personnel regularly work with the socially responsible investment (SRI) community and NGOs through in-person meetings and site visits, teleconferences, inquiries via email and conferences. Key topics of interest include fatality prevention, environmental management, revenue transparency, human rights, resettlement programs, water resources and community development. As an example, during 2015, we conducted international-level stakeholder meetings aimed at verifying the TFM HRIA methodology and reviewing the findings of the assessment. Approximately 20 entities, representing academia, investors, business partners and the NGO community, participated in these meetings. The feedback received from these stakeholders was summarized and shared with participants following the meetings. For more information, please see: http://www.fcx.com/sd/approach/stake_engage.htm

Priority human rights issues: What are some of the priority human rights issues for your company?

The company selected the following from a check list:

  • Health
  • Land rights & displacement
  • Access to water
  • Freedom of association
  • Relations with security providers
  • Transparency in payments to governments
  • Indigenous peoples

Update 2016:

For more information on/actions related to

Actions on health

For more information on: Health, please see our safety and health reporting: [link]

Actions on freedom of association and trade union rights

For more information on freedom of association and trade union rights, please our labor relations reporting: [link]

Actions on displacement and community relocation

For more information on displacement and community relocation, please see our reporting on TFM Community Resettlement: [link]

Actions on access to water

Access to water, please see water supply and management: [link]

Actions on relations with security providers

Relations with security forces, please see our security and human rights reporting and our Voluntary Principles on Security and Human Rights reports: [link] and [link]

Actions on tax avoidance & revenue transparency

For more information on transparency in payments to governments / responsible tax practices, please see transparency of government payments: [link]

Actions on indigenous peoples

For more information on indigenous peoples, please see our reporting: [link]

How are human rights commitments and information about how the company addresses its human rights impacts communicated, internally and externally?

We report on our human rights performance in our annual Working Toward Sustainable Development report. Freeport- McMoRan has been a member of the Voluntary Principles on Security and Human Rights since it was first established in 2000 and we also publish our annual Voluntary Principles on Security and Human Rights report to the Plenary. [link] [link] [link] Please also see Stakeholder Engagement above and at: [link]

Update 2016:

We report on our human rights performance in our annual Working Toward Sustainable Development report. Freeport-McMoRan maintains a sustainability reporting prioritization assessment process to define topics and their level of priority to the company and its stakeholders for inclusion in its sustainability reporting. A combination of internal and external factors were used to determine the significant topics of priority to our business and stakeholders. Freeport-McMoRan has been a member of the Voluntary Principles on Security and Human Rights since it was first established in 2000 and we also publish our annual Voluntary Principles on Security and Human Rights report to the Plenary. http://www.fcx.com/sd/index.htm, http://www.fcx.com/sd/security/index.htm, and http://www.fcx.com/sd/sustain/vol_principles.htm Please also see Stakeholder Engagement above and at: http://www.fcx.com/sd/approach/stake_engage.htm

What provisions does your company have in place to ensure that grievances from workers and affected communities or individuals are heard, and can you provide examples of remedies provided?

Human rights compliance officers receive, document and follow up on any reported human rights allegations. The role of the Human Rights Compliance Officer is communicated to community groups as well as all employees and contractors. Some sites have drop-boxes available for anonymous reporting and, as part of the Freeport-McMoRan Principles of Business Conduct, anonymous compliance hotlines managed by third parties have also been established. Human rights have also been incorporated into our corporate Community Grievance Management System Procedure, which is implemented at each site, to ensure that there is a mechanism for collecting human rights grievances (security-related or other) from the community. It is the role of the mine site Human Rights Compliance Officers to report any incidents, grievances, or allegations of human rights to site-level management as well as the corporate office. For further information regarding our human rights grievance mechanism, please see our annual Voluntary Principles on Security and Human Rights reports to the Plenary: [link].

Update 2016:

Our human rights compliance officers oversee grievance mechanisms for reporting, documenting and following up on human rights allegations that are reported in our areas of operation. We promote human rights awareness through outreach and the provision of training to our employees, contractors and local communities, and we protect anyone who reports suspected violations. The role of the Human Rights Compliance Officer is communicated to community groups as well as employees and contractors. Some sites have drop-boxes available for anonymous reporting and, as part of the Freeport-McMoRan Principles of Business Conduct, anonymous compliance hotlines managed by third parties have also been established. Human rights have also been incorporated into our corporate Community Grievance Management System Procedure, which is implemented at each site, to ensure that there is a mechanism for collecting human rights grievances (security-related or other) from the community. It is the role of the mine site Human Rights Compliance Officers to report any incidents, grievances, or allegations of human rights to site-level management as well as the corporate office. For further information regarding our human rights grievance mechanism, please see our annual Voluntary Principles on Security and Human Rights reports to the Plenary: http://www.fcx.com/sd/security/report_engage.htm

Which external and collaborative human rights initiatives does your company participate in, and what is the nature of your involvement?

Freeport-McMoRan has been an active member of the Voluntary Principles on Security and Human Rights since it was first established in 2000. In 2013, we continued to participate in the Business for Social Responsibility’s multi-industry human rights working group, which has provided us with a forum for gaining insight from peer companies to help determine the best way to integrate human rights due diligence into our business practices. We participate in the Fund for Peace Security, Rights and Development Roundtable as part of continual improvements to our human rights programs. We have been an active member of ICMM since it was established in 2001.

Which are the key one, two or three elements of your approach to human rights that been developed or amended since June 2011? Please indicate if these actions were in response to the UN Guiding Principles.

We continue to evolve and expand our human rights programs. After the United Nations’ endorsement of the UN Guiding Principles on Business and Human Rights in 2011, Freeport-McMoRan began evaluating how best to integrate this expanded framework into our existing human rights program. Working with a UK-based advisory firm, Freeport-McMoRan launched a corporate-level human rights impact assessment process in 2013 to identify potential impacts across the Company’s portfolio and assess opportunities for further due diligence at the operating level using a risk-based approach. While this global, high-level assessment helped to prioritize areas of focus, it did not include a site-level verification of impacts. As a next step, Freeport-McMoRan is planning to conduct a site-level assessment at its Tenke Fungurume Mining operation in the DRC. We plan to use the findings from the corporate-level assessment to inform a review of our human rights policy and strategy.

Update 2016:

We are committed to respecting human rights and continue to evolve and expand our human rights programs. We updated out Human Rights Policy in 2015 to align our human rights due diligence practices with the UN Guiding Principles. In 2015, we also continued to further integrate the UN Guiding Principles into our human rights program. Working with the same UK-based advisory firm that facilitated our corporate‐level human rights impact assessment (Corporate HRIA) in 2013-2014, we subsequently facilitated a site‐level HRIA at our Tenke Fungurume Mining (TFM) operation in the DRC (TFM HRIA). TFM was prioritized for a site‐level assessment on the basis that it was identified as the company’s highest ranking site for both potential and actual impacts in the Corporate HRIA. The TFM HRIA built upon the methodology developed for the corporate HRIA, but included extensive local stakeholder engagement. Lessons learned from the TFM HRIA will further shape our global human rights strategy. We are developing a work plan to roll-out the site-level HRIA framework to other higher-risk sites over time. For more information on how we are aligning our human rights due diligence practices with the UN Guiding Principles, please see our human rights reporting: http://www.fcx.com/sd/security/index.htm

What are some of the obstacles and challenges that your company encounters in implementing its human rights commitments?

Update 2016:

Freeport‐McMoRan’s portfolio of metal assets includes the Grasberg minerals district in Indonesia, significant mining operations in North and South America, and the Tenke Fungurume minerals district in the DRC. In some of these locations, high‐levels of interaction with public security forces, as well as related challenges linked to education levels, poverty, in‐migration and diversity of culture, have combined to create a need for improved security and human rights programs.  

In some cases, limited scope exists for Freeport-McMoRan to make significant further improvements to its management of human rights issues. This, in part, reflects the extensive management measures we already have in place, as well as the involvement of independent external parties. Impacts associated with illegal artisanal mining and the conduct of host government security at TFM are an example. Nonetheless, we are committed to continuing our engagement with government, industry participants, and other stakeholders on complex human rights issues.

For more information on how we are implementing our human rights commitments, please see our human rights reporting: http://www.fcx.com/sd/security/index.htm.