SALIENT HUMAN RIGHTS ISSUES & SCOPE OF POTENTIAL HUMAN RIGHTS IMPACTS

In alignment with our sustainability strategy and informed by our materiality assessment and ongoing stakeholder engagement, we have identified our key focus areas across three sustainability pillars, as follows:

• Robust Governance: Human Rights, Responsible Supply Chains, and Ethics & Compliance;
• Empowered People & Resilient Communities: Health & Safety, Workforce, and Communities & Indigenous Peoples;
• Thriving Environments: Climate, Water Stewardship, Biodiversity & Land Use, Tailings Management, and Environmental Compliance

Across these sustainability pillars and corresponding strategic focus areas and cross-cutting themes, we work to assess and address where our business activities present potential risks to people and their rights. To support this effort, we developed a human rights dashboard to help frame our UN Guiding Principles (UNGPs) implementation across for our operational activities. The dashboard is intended to reflect the scope of our potential human rights risks and impacts as well as the scope of our human rights impact assessments (HRIAs) and our continued efforts to integrate human rights considerations across relevant business functions at our operations.

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

We leverage our sustainability risk register process and our human rights due diligence program to assess which topics in our human rights dashboard are most salient at a site-level. We aim to manage the salient human rights topics as part of our ongoing operational work. Learn more about our approach in our 2022 Annual Report on Sustainability.

HUMAN RIGHTS DUE DILGENCE

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

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

HUMAN RIGHTS IMPACT ASSESSMENTS

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

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

• FCX HRIA Methodology
• FCX El Abra Case Study
• FCX AZ Operations HRIA Case Study

RESPONSIBLE SOURCING

In addition to HRIAs, our responsible sourcing programs require human rights due diligence on suppliers of both goods and services, and minerals and metals for further processing. The development of these programs is informed by our HRIA findings. In 2022, we advanced our approach to assessing supplier human rights and other sustainability-related risks, which we discuss in more detail in the Responsible Value Chains section of our 2022 Annual Report on Sustainability.

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