CAP

SUSTAINABILITY
REPORT
2016

2


CAP AND ITS
STRATEGY

STRATEGIC SUSTAINABILITY PILLARS

Responsible Development has been an integral part of CAP’s DNA for over 65 years. Ever since its creation, the Group incorporated sustainability in its business vision.

CAP aims at becoming a point of reference in terms of sustainability and human capital management, designing and promoting a strategy to consider the different moments confronted by Group companies and to incorporate.

The company seeks to continuously ensure that current and future activities carried out by Group companies develop without altering their environmental relationships, while also contributing value to the areas where it operates.

CAP aims sat Creating Value on the basis of three central elements (axes): contributing to society; operating the business in harmony with the environment; and, providing quality employment to its workers. The foregoing, in full compliance with the Group’s Corporate Principles and an efficient operation.

Contributing to society

The CAP Group has defined economic development and integration with the neighboring communities to their operations to be priority topics. An example of integration is that 96% of its workers live in areas in which the company operates. Consequently, company workers are relevant stakeholders within such communities.

Harmony with the environment

CAP aims at responsibly manage its environmental impacts while generating value in its operating areas. The foregoing is reflected in the increasing incorporation of environmentally-friendly technologies in its projects. Such is the case of the Cerro Negro Norte ore deposit, which has desalinized water available, waste paste and a concentrate pipeline for transporting material to minimize road and traffic impacts.

Quality of employment

The occupational safety and health of the Group’s workers, along with the maintenance of a proper working environment, represent the priorities in this realm. In terms of safety, indicators have shown a sustained drop of frequency and severity rates.

In 2016, the Group systematized its “Corporate policies of human resources and sustainability”, which were approved by the Board of Directors to cover the following topics:

  • Corporate Policies for Human Resources: Recruitment and selection management; Learning management; Recognition management; Performance and recognition management; Development and leadership management; Social relationships management; and, Diversity and quality of life management.
  • Corporate Policies for Sustainability: Labor safety and health management; Social management; and, Environmental management.

The above-mentioned polices apply to all CAP Group companies. As such, they constitute a reference framework for the design and application of both people and sustainability management practices, as well as a tool whereupon the managers of these areas may implement management processes according to the peculiarities of their respective companies.

INTERNATIONAL GUIDELINES

Ever since 2008, CAP has participated in the Chilean Chapter of the United Nations Global Compact, undertaking to adopt its ten universal principles related to human rights, labor standards, the environment, and anticorruption practices.

Additionally, it has adhered to the Sustainable Development Goals (SDG) promoted by the United Nations since 2015, and has incorporated the gender equality objective into its own Diversity and Quality of Life Policy.

The company has a Corporate Sustainability and Human Resources Department, an area that is replicated in each one of its companies. This department is responsible for defining common criteria, to be shared by the entire organization, implementing policies and strategies on these matters, and establishing the control mechanisms required to supervise their compliance.

Additionally, the Sustainability and Innovation Committee has been operating since 2015 as a formal instance for the discussion of strategic guidelines on these topics. Its mission is to ensure that the Group tackles its future challenges in a timely, innovative and efficient manner approaching the various topics identified in its sustainability risk maps. This committee is comprised by the Corporate Sustainability and People Manager and his/her corresponding counterparts in each of the subsidiary companies, in addition to Cintac’s Innovation and Business Development Manager.

Such guidelines are managed through the Practice Communities (CoP, in its Spanish acronym); an instance that seeks to transfer good practices and cocreate sustainable strategies between the companies of the Group. There are currently nine CoP involving the participation of 95 professionals covering the following topics: the Environment; Occupational safety and health; Corporate reputation; Human capital; Procurement; Information technologies (IT); Milling; Thickeners; and TICAR (in its Spanish acronym: Information technology; Process control; Automation; and, Reportability). These three last CoP were created in 2016. The Cop have a collaborative platform: JAM under SAP’s Success Factors.

Some noteworthy 2016 achievements in the work carried out by the CoP are: the creation and consolidation of a Social Investment Strategy for the Group; the implementation of a Corporate People Management Model; the closing of the implementation process of the Corporate People Management Tool denominated “CONECTADOS” (connected); the creation of the new website for the CAP Group; the new form of reporting the environmental investments of the companies; and, the implementation (as of 2017) of the SAP-EHS (in its Spanish acronym: Environmental Health & Safety) Platform, aimed at managing incidents, permits, environmental compliance, safety and hygiene.