We set company-wide performance targets to support key objectives, particularly in areas prioritized in our sustainability risk register.

Business Ethics | Workforce | Health & Safety | Human Rights | Communities | Environment

Business Ethics
Target	2011 Status	Performance Description	Target Date
Annually train 90% of management and 33% of non-management employees (rotational basis) in the Freeport-McMoRan Principles of Business Conduct		During 2011, 98% of management-level and one-third of non-management employees received training in the Principles of Business Conduct.	Annually Recurring
Publish payments to host governments at all active foreign mining operations in support of revenue transparency and the Extractive Industries Transparency Initiative (EITI)		We annually publish all material payments to every country in which we operate (pg. 17). We also support the EITI and participate in its implementation in the DRC, Peru and Indonesia.	Annually Recurring

Workforce
Target	2011 Status	Performance Description	Target Date
Increase the percentage of women in our workforce, including representation in managerial roles, to 15%	Behind Schedule	Women comprise 9% of our employee population and hold 11% of managerial positions which is relatively unchanged from recent years.	Ongoing

Health & Safety
Target	2011 Status	Performance Description	Target Date
Incur zero fatalities		We incurred five workplace fatalities in 2011.	Annually Recurring
Meet company-wide TRIR of 0.62		Our overall TRIR (0.61) exceeded our company-wide target and improved over 2010.	Annually Recurring

Human Rights
Target	2011 Status	Performance Description	Target Date
Incur zero human rights transgressions at our operations		In 2011, we were not aware that any employees or contractors committed any material human rights transgressions. However, several incidents were reported and investigated including abuses by host government security personnel in our project area in Indonesia. There were also reported threats and acts of intimidation among certain PTFI workforce members leading up to, during and subsequent to the labor strike.	Annually Recurring
Train all new security employees directly employed at our operations in Indonesia and the DRC on the Company’s Human Rights Policy and procedures		Human rights training for all new security personnel at our operations in Indonesia and the DRC was conducted, as well as refresher training for existing security employees.	Annually Recurring
Implement a new human rights risk assessment process and improve training at operations in Indonesia and the DRC by 2011 and other international operations by the end of 2012	On Track	Human rights risk assessments were conducted at PTFI and TFM in 2011. The risk assessment portion of the Voluntary Principles Implementation Guidance Tool also was piloted at TFM during the year. With external assistance, additional training and capacity building programs were conducted at both PTFI and TFM.	2012

Communities
Target	2011 Status	Performance Description	Target Date
Invest (in aggregate) 1% of the average of the previous three years annual revenue, as reported in Freeport-McMoRan’s audited consolidated financial statements, in community programs, including in-kind support and administration		In 2011, approximately $191 million was invested in community programs across our operations, which exceeded our 1% target of $173 million. The amount reported includes all mitigation and program administration costs, as well as community funds committed in the 2011 fiscal year.	Annually Recurring
Complete third-party studies with improved methodology to evaluate direct and indirect economic impacts of all mining operations at the local, regional and country level	Behind Schedule	Our Chilean operations and TFM are conducting economic impact studies in 2012. Studies have been completed for all other major operations.	2009
Develop community guidelines for exploration projects	Behind Schedule	Draft community guidelines for exploration projects have been developed and are expected to be formalized in 2012.	2011
Prepare a Native American engagement plan for operations in the U.S.		A plan has been completed and we are actively engaging with Native American tribes near our Arizona operations.	2011
Add at least two new Community Investment Funds in communities near our operations		In 2011, we implemented three new Community Investment Funds in Arizona, New Mexico and Colorado.	2011
Conduct a comprehensive baseline assessment on artisanal mining in our project area in Indonesia in cooperation with host governments and community stakeholders	Behind Schedule	The baseline assessment being conducted by Atma Jaya Catholic University is continuing into 2012. The assessment has been delayed due to the heightened security situation in our project area in late 2011. TFM also has launched a baseline study in 2012 to help develop a deeper understanding of the socio-economic drivers and risks associated with artisanal mining.	2011

Environment
Target	2011 Status	Performance Description	Target Date
Incur zero significant environmental events (rating of three or higher on Sustainable Development Risk Register)		We did not incur a significant consequence environmental event. We did have 11 spills or releases that were reportable to agencies based on applicable regulations.	Annually Recurring
Incur zero penalties more than $100,000		In 2008, our Morenci operation unintentionally released electrolyte solution into Lower Chase Creek, an ephemeral stream that is normally dry. Morenci conducted a thorough cleanup of the spill. In 2011, the operation paid one penalty totaling $75,000 and agreed to a Supplement Environmental Project valued at $75,000.	Annually Recurring
Prepare a biodiversity inventory and land management plan for all active mining operations	Behind Schedule	Biodiversity inventories were completed for all active mining sites in 2010. Land management plans are expected to be complete for these mining operations by the end of 2012.	2011
Survey our top five strategic suppliers and contractors to identify alignment with Freeport-McMoRan policies, CDP greenhouse gas emissions and water reporting, and materials stewardship opportunities in our value chain		Surveys of our top 10 strategic suppliers identified certain opportunities for improved alignment with Company policies and sustainability reporting practices, and these will be explored in 2012.	2011
Operations prioritized using the Sustainable Development Risk Register process to implement a water management/conservation plan	On Track	Water balance models and management plans are expected to be completed at all prioritized operations by the end of 2012.	2012
Establish two renewable energy facilities on mining-related property		Solar energy facilities at our Bagdad mine and Ajo facility (discontinued operation) in Arizona were completed in 2011. Additional renewable energy projects are under evaluation, including a significant hydroelectric power study in Papua, Indonesia, near PTFI.	2014
Identify and implement one material carbon offset mitigation project in Papua, Indonesia	Behind Schedule	Due to political and stakeholder uncertainty, identification and implementation of a project continues to be challenging.	2016
For sites with direct CO2-e (carbon dioxide equivalents) emissions exceeding 100,000 metric tons per year, prepare a greenhouse gas emissions plan that optimizes fuel-related emissions with long-term mine production plans	Target Removed	As we respond to increased product demand, our mine plans indicate longer and steeper mining hauls to expand production capacity. As a result, our direct emissions are forecasted to increase. Our GHG Task Force continues to directly engage mobile equipment providers on fuel-efficiency opportunities. At this time, site-level plans will not be developed given the physical and technological constraints on meaningful emissions reductions.	N/A
Conduct energy-efficiency audits at major operations by the end of 2012 and implement prioritized improvement projects by 2014	Target Removed	Milling and solution extraction/electrowinning are the most significant power-consuming processes at our facilities. Based on recent energy audit findings, future evaluation will focus on potential energy-efficiency opportunities associated with these processes, and site-wide audits are no longer required.	N/A

 

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