Codelco

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

No leading practices were identified in the ecosystems and biodiversity area.

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

Sustainability strategy and accountability
Codelco does not disclose group-wide targets on key sustainability topics for the most material parts of its value chain according to the SBTN materiality table. The company also does not report consistently against all its targets such as water consumption. Codelco has an opportunity to link performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. Furthermore, the company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Stakeholder engagement
While Codelco discloses how often and through which channels it engages with various stakeholder groups, it does not disclose an overview of the issues raised during its stakeholder engagement activities beyond its materiality assessment.

Lobbying
While Codelco discloses a list of trade associations of which it is a member wherever it operates, it does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. As a result, the company does not report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment
The company does not disclose any assessment of its impacts on nature, including biodiversity, within its own operations or in its supply chain. The company does not disclose any assessment of its dependencies on nature within its own operations or of its upstream business relationships.

Key areas and species
Codelco discloses the locations that are in or adjacent to areas important for biodiversity within its own operations but does not disclose such locations for its suppliers. While the company discloses some species existing in or adjacent to its own locations, it does not disclose all of them. Furthermore, it does not disclose species populations existing in or adjacent to the locations of its suppliers. The company discloses the status according to national and international conservation lists of species identified in its own locations.

Ecosystem conversion and restoration
Codelco does not disclose a commitment to minimise ecosystem conversion nor activities to minimise ecosystem conversion. The company is also not committed to restoring ecosystems and does not disclose details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.

Resource exploitation and circularity
The company does not disclose its inputs, including its material footprint. The company does not report quantitatively on its group-wide circularity performance. While the company states that it complies with strict regulations that sets out the conditions to prevent potential effects on soil, no further evidence that the company improves soil health and/or increases agrobiodiversity in its production and/or sourcing practices could be found in the public domain. The company also does not have a target to improve soil health in its production or sourcing practices.

Water
No quantitative evidence was found of reductions in water withdrawal across the company’s own operations. Furthermore, while Codelco has a target to reduce unitary continental water consumption 60% by 2030, it does not report a baseline. The company does not report how much water is withdrawn for its own operations in water-stressed areas. The company does not engage with suppliers to reduce water withdrawal. The company does not report a decrease in water pollution nor its processes for managing and monitoring discharge water quality. It also does not regularly report on water pollution. The company does not disclose targets to reduce water pollution. The company does not disclose a commitment to respect the right to water. The company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution
The company is reducing the production of hazardous waste. While Codelco reports regularly on air quality parameters of emissions of harmful air pollutants, it does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.

GHG emissions
The company is not reducing its scope 1 and 2 greenhouse gas emissions. While Codelco has a target to GHG emissions by 70% by 2030, no evidence that they detail specific scope 1 and 2 reductions could be found in the public domain. Furthermore, the company is not reducing its scope 3 emissions. It has an opportunity to disclose a time-bound target to reduce its scope 3 emissions aligned with a 1.5-degree trajectory and report against it.

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

Safe, clean, healthy and sustainable environment
The company does not show if it is committed to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights
While Codelco mentions Indigenous Peoples’ rights, it does not report a commitment to respect their rights which references the relevant part(s) of ILO Convention No. 169 on Indigenous and Tribal Peoples or the UN Declaration on the Rights of Indigenous Peoples. The company also does not disclose its processes for identifying and recognising the rights of Indigenous Peoples when activities in its own operations may impact their rights, nor does it describe how it obtains Indigenous Peoples’ free, prior and informed consent. Moreover, Codelco does not disclose a commitment to respect ownership and use of land and natural resources and related legitimate tenure rights, as set out in the relevant part(s) of the VGGTs or the IFC Performance Standards. It also does not require its business relationships to have a process to identify legitimate tenure rightsholders, paying particular attention to vulnerable or marginalised tenure rightsholders, and to negotiate with them to provide adequate compensation.

The company describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations. There is no evidence that the company describes its process for assessing its human rights risks and discloses what it considers to be its salient human rights issues. No evidence was found that the company has a global system to act on its salient human rights issues. While the company discloses the categories of stakeholders it engages with generally on sustainability issues, it is not clear if these stakeholders are those whose human rights have been or may be affected by its activities. There is no evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities.

While the company has a publicly available statement regarding health and safety in its Sustainability Report, a statement of commitment in Sustainability Report is not considered to be a part of formal policy document as required by the indicator. Also, the company discloses health and safety policy in Spanish hence, not considered. There is no evidence that the company has a publicly available statement of policy that expects its suppliers to commit to respecting the health and safety of their workers. The company has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. The company has an opportunity to describe how it determines a living wage for the regions where it operates. While the company discloses the proportion of its total direct operation’s workforce covered by collective bargaining agreements, it states that monitoring only covers a percentage of the group. While the company states that it encourages its suppliers to respect employees’ right to freedom of association and the right to collective bargaining, it has an opportunity to describe how it works to support the practices of its suppliers in relation to those.

The company has an opportunity to publish a global tax strategy and should assign responsibility for this strategy to an executive-level individual or body. The company has an opportunity to disclose a policy on bribery and corruption and its processes for identifying and addressing bribery and corruption. There is no evidence that the company has a publicly available policy statement or policy setting out its lobbying and political engagement approach. The company states that it does not make political contributions but does not formalise this commitment in a public policy document.