ARAUCO

Lobbying
ARAUCO discloses a list of trade associations of which it is a member.

Stakeholder engagement
The company discloses its process for engaging with stakeholder groups, including frequency and channels, beyond its materiality assessment or an equivalent.

Sustainability strategy and accountability
The company reports consistently against all its targets.

Ecosystem conversion and restoration
The company discloses some activities to minimise ecosystem conversion. Furthermore, the company is committed to restoring ecosystems, has time-bound ecosystem restoration targets, and discloses details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.

GHG emissions
The company reduces its scope 1 and 2 greenhouse gas emissions.

Resource exploitation and circularity performance
The company discloses activities to improve soil health or agrobiodiversity in its production or sourcing practices.

Solid and air pollution
The company reports regularly on air quality parameters of emissions of harmful air pollutants.

Water
The company demonstrates reducing water withdrawal in its own operations and reports how much water is withdrawn for its own operations in water-stressed areas. Additionally, the company discloses its processes for managing and monitoring discharge water quality, and reports a decrease in water pollution.

No leading practices were identified in the social inclusion and community impact area.

Act ethically
The company discloses a policy on bribery and corruption and a grievance mechanism allowing stakeholders to raise related concerns.

Provide and promote decent work
The company discloses a policy commitment to respecting the health and safety of workers for its operations. Also, it reports the proportion of its total direct operations workforce for each employee category by age group and nationality, and that of women in its total direct operations workforce for each employee category.

Respect human rights
The company indicates it has a human rights grievance mechanism accessible to all workers and external stakeholders who may be adversely impacted by the company.

Lobbying
The company has an opportunity to disclose a clear and detailed framework for assessing alignment of its trade associations with its sustainability targets and to report (potential) misalignments.

Stakeholder engagement
The company has an opportunity to disclose an overview of the issues raised during its stakeholder engagement activities.

Sustainability strategy and accountability
While the company states that it has a materiality assessment, it has an opportunity to disclose its process for identifying and prioritising its most relevant sustainability topics and impacts. This should include how external stakeholders are involved in the process. Also, the company discloses some sustainability objectives/targets including climate, biodiversity, ecosystem conversion and solid waste. However, there is an opportunity to establish group-wide targets for the most material parts of its value chain. Additionally, although the company assigns decision-making and oversight responsibility for its sustainability strategy to senior management, it could assign decision-making and oversight responsibility for its sustainability strategy to the highest governance body. Furthermore, the company has an opportunity to link performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. Lastly, it could improve its transparency by disclosing whether its highest governance body has expertise with respect to the company’s most material sustainability topics.

Ecosystem conversion and restoration
The company does not have a commitment or time-bound targets to achieve conversion-free supply chains, and does not disclose activities working towards zero conversion.

GHG emissions
The company should set time-bound targets to reduce its scope 1, 2 and 3 greenhouse gas emissions as well as report progress against them. Crucially, the company needs to reduce its scope 3 emissions and all its scope 1, 2 and 3 targets need to align with a 1.5-degree trajectory.

Impact and dependencies assessment
The company has an opportunity to disclose assessments of its impacts on nature, including biodiversity, within its own operations and in its supply chain. It also has the opportunity to disclose its dependencies on nature within its own operations and upstream business relationships.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Key areas and species
While the company reveals some locations adjacent to biodiversity-important areas within its own operations, more comprehensive information is needed. There are opportunities to disclose the full list of species populations in or near its own locations, along with their conservation status according to national and international lists. Additionally, transparency could be improved by specifying which supplier locations are in or adjacent to biodiversity-critical areas, as well as disclosing species populations in those supplier locations.

Resource exploitation and circularity performance
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Solid and air pollution
The company does not disclose relevant information related to pollution in its operations or supply chains.

Water
The company has an opportunity to further improve water withdrawal by setting a time-bound target and engaging with suppliers. The company does not disclose relevant information on water pollution or rights to water in its operations or supply chains.

Indigenous Peoples’ and land rights
The company does not show if it is committed to respecting Indigenous Peoples’ rights or land rights of local communities.

Safe, clean, healthy and sustainable environment
The company has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
The company has an opportunity to include anti-bribery and anti-corruption clauses in its contractual agreements with business relationships. Also, it could disclose its processes for identifying and addressing bribery and corruption. Furthermore, the company has an opportunity to disclose its approach to lobbying and political engagement beyond the employee level in a public policy document and state that it does not make political contributions and divulge its lobbying expenditures.

Provide and promote decent work
The company has an opportunity to disclose a policy commitment to respecting the health and safety of workers for its supply chain and provide evidence of how it monitors its suppliers’ performance on health and safety standards. Additionally, the company could disclose a time-bound target for paying all workers a living wage or state that it has achieved paying all workers a living wage. It could also describe how it determines a living wage for the regions where it operates and how it works to support its suppliers in paying a living wage. Furthermore, the company could commit to gender equality and women’s empowerment and disclose related targets. It could also disclose the representation of women on the highest governance body and the ratio of the basic salary and remuneration of women to men.

Respect human rights
The company has a publicly available statement committing it to respect human rights but has an opportunity to place it in a formal policy document. Also, while it has a policy statement committing it to respect specific workers’ rights, it could reference all the ILO fundamental rights at work. It could also disclose a policy committing to respecting the ILO fundamental rights at work in its supply chain.

Moreover, the company could describe a comprehensive process for assessing and identifying human rights risks and impacts across all its activities and supply chain, and its salient human rights issues. It could specify what it considers to be salient human rights issues, how relevant factors are considered such as geographical, economic and social factors, and how it acts to prevent, mitigate or remediate its salient human rights issues through a global system.