Sociedad Quimica y Minera (SQM)

No leading practices were identified for the company in the governance and strategy measurement area.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
The company lists elements it took into consideration for identifying material aspects and discloses a materiality matrix. However, it does not disclose time-bound targets for its most relevant sustainability topics and reports progress against them.

Governance and accountability for sustainable development strategy
The company states its board of directors is responsible for reviewing and approving the sustainability. However, there is an opportunity for SQM to link its executive-level and highest governance body remuneration policy to sustainability performance across all environment, nutrition and social inclusion topics.

Stakeholder engagement
SQM states that it has identified its stakeholders according to the nature of its business and relations with them, based on four areas: needs, impacts, interests and expectations. It lists the way it engages with each stakeholder group and shows the integration into its sustainability strategy through its materiality matrix. However, there is room for SQM to improve by making its stakeholder engagement cover sustainability topics across all three benchmark dimensions (environment, nutrition, and social inclusion) across its value chain.

Scope 1 and 2 greenhouse gas emissions
SQM aims to be carbon neutral for Iodine, Lithium and Potassium Chloride by 2030, and for all SQM products by 2040. However, the targets do not cover all its scope 1 and 2 GHG emissions and does not report against them. The company has an opportunity to set stronger targets and align future targets with the Science Based Targets initiative’s 1.5-degree warming scenario.

Scope 3 GHG emissions
The company does not disclose quantitative evidence to demonstrate that it is reducing its scope 3 GHG emissions.

Soil health and agrobiodiversity
The company does not disclose that it is contributing to sustainable production practices that improve soil health and increase agrobiodiversity.

Fertiliser and pesticide use
The company does not disclose that it is contributing to sustainable production practices that optimise the use of fertilisers and pesticides.

Water use
The company does not disclose that it is reducing water withdrawals across its operations and supply chain.

Availability of healthy foods
The company does not disclose a commitment or activities to increase the availability of healthy and nutritious foods.

Accessibility and affordability of healthy foods
While the company disclose that its Atacama Tierra Fértil Program provides farmers with technical expertise and support for their crops and production, the project is not explicit about improving access to quality inputs to support food security. As such, SQM does not disclose a sufficient commitment to address food insecurity by improving the accessibility and affordability of healthy and nutritious foods.

Workforce nutrition
While the company discloses a programme to improve workforce nutrition through healthy foods at work, it has an opportunity to develop this programme further to ensure the provision of nutrition education, nutrition-focused health checks and breastfeeding support throughout its operations.

Child labour
While SQM commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place.

Forced labour
While the company commits to prohibiting forced labour in its own operations and supply chain, it has an opportunity to disclose a requirement that prohibits its suppliers from retaining workers’ personal documents and restricting workers’ freedom of movement.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Health and safety of vulnerable groups
The company does not disclose that it specifically recognises the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers.

Farmer productivity and resilience
The company discloses that its Atacama Tierra Fértil Program provides farmers with technical expertise and support for their crops and production and details its Rio Grand garlic production program. However, the company does not disclose the impact of its support activities. There is an opportunity for SQM to enhance its disclosure on its activities supporting the resilience, productivity, and access to markets for farmer.

Land rights
The company does not commit to recognising and respecting the legitimate tenure rights related to the ownership and use of land of local communities.

SQM discloses policies and commitments across most key topics under respect for human rights, as well as integrating and acting on human rights risk and impact assessments. However, there is an opportunity for SQM to improve its policies and disclosure on this topic and provide publicly commitment on human rights due diligence process.

SQM has in place policies and commitment on ensuring health and safety and discloses on workforce diversity. However, there is an opportunity for the SQM to improve commitments and disclosure on supporting collective bargaining and gender equality and women’s empowerment. In addition, the company does not disclose sufficient commitments to other key metrics in providing and promoting decent work, such as paying a living wage and respecting working hours.

SQM addresses the topics of personal data protection, anti-bribery and anti-corruption as well as responsible lobbying and political engagement through publicly available policies or statements, but there remains an opportunity for these to be. Additionally, SQM does not disclose on responsible tax fundamentals.