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Appendices |
| Appendix Table of Contents |
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Appendix A Environmental Policy |
Appendix B Social, Employment & Human Rights Policy |
Appendix C Voluntary Principles on Security & Human Rights |
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General |
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Environmental Auditing Environmental auditing is a key component of this Environmental Policy. This process is a systematic, objective evaluation of facility operations and practices which is designed to: 1. Verify compliance with environmental regulations, internal policies, and accepted practices. 2. Evaluate the effectiveness of environmental management systems in place. 3. Identify and assess any reasonably foreseeable risks associated with hazardous conditions attributable to environmental and related factors and provide an avenue for effective prevention and resolution. As prescribed in the FCX Environmental Auditing Protocol, major operational facilities are to continue to be internally audited on an annual basis. Smaller facilities, with senior management concurrence, can be audited on a biannual basis. Periodic, external audits may also be deemed appropriate for certain facilities by FCX Senior Management. The formal auditing protocol covers all aspects of environmental management, programs, controls and treatment facilities. Oversight and Communication The FCX Board of Directors Public Policy Committee and the Board will periodically review and update this Environmental Policy. Based on the results obtained from the periodic evaluations and audits, FCX Senior Management will review and revise, as needed, environmental objectives, environmental programs and the environmental management system of each operating unit. FCX will work to foster throughout the Company and its operating affiliates a sense of responsibility regarding the environment. FCX also recognizes its responsibility to communicate to the public on its environmental status and progress through annual reports, publication of external audit results, notifications of all environmental certifications, and other public statements and announcements. |
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Freeport-McMoRan Copper & Gold Inc. (FCX) believes that, as a responsible corporate citizen, it is the duty of the company and its operating affiliates to foster positive social and employment relationships in every area where they operate, and FCX is committed to continuous improvement of those relationships. FCX is dedicated to ensuring that its operations are conducted in a manner that respects the Universal Declaration of Human Rights and other applicable international standards of human rights, the laws and regulations of the host country, and the culture of the people who are indigenous to the areas in which the company operates. FCX will work to be a partner in the social and economic development of the people in and around areas of operations.
The objective of this document is to clearly establish the Company's policy on Social, Employment, and Human Rights, specifically how it is applied to its social interaction with the community, its relationships with employees, and its conduct with regard to human rights and security.
Coverage
This policy applies to all employees of FCX and its operating affiliates, including PT Freeport Indonesia (PTFI).
Note: Employees of privatized or contractor companies doing business with PTFI must comply with this policy. Alternatively, the privatized or contractor company may implement a policy similar to this policy for their respective employees.
Policy
1. Social Interaction with the Community
FCX has always been cognizant of its multiple responsibilities toward the development of the local people. The Company has conducted its Indonesian operations with concern for and a sense of responsibility toward its Indonesian Papuan employees and the indigenous people who live around its operations area. The Company's commitment to the community is evident from our various social programs. In addition to our contributions toward community development, we recognize the importance of understanding the perspectives and respecting the rights of the indigenous population.
To achieve these Policy objectives, FCX and its operating affiliates will:
- Build relationships with people in the host country and especially with people indigenous to areas of operations or exploration;
- Work continuously to understand the culture and social patterns of the people in the host country and especially the people indigenous to areas of operations or exploration. To accomplish this, the company and its affiliates will undertake social, cultural and medical studies;
- Consult with local populations about important operational issues that will impact their communities;
- Work with the host country government, the local people and responsible non-governmental organizations to create and periodically update social integration and/or sustainable development plans for all operational sites. These plans shall address the issue of economic and social viability of each operating area after cessation of operations;
- Encourage awareness among our employees of attitudes, beliefs, and values of the local community.
- Recognize its significant impact on the local indigenous population and voluntarily recognize this in various ways.
FCX is committed to supporting certain fundamental principles within the area of employment and employee relations, including the elimination of discrimination in the workplace, the freedom of association and the right to collective bargaining, the elimination of forced and compulsory labor, and the abolition of child labor.
To support these principles, FCX and its operating affiliates will:
- Obey the laws and regulations of the host country with respect to employment practices;
- Adhere to applicable international standards of health and safety;
- Employ as many citizens of the host
country as practicable and will, wherever practicable, employ people
who are
indigenous to the operational or exploration site;
- Provide training to citizens of the host country and especially to those indigenous to an operational or exploration area to prepare them for employment in the operation;
- Promote employees on the basis of their willingness and ability to perform the job without discriminating on the basis of race, creed, gender or national origin. However, special efforts will be made to train and hire people indigenous to each operational or exploration area.
- Ensure that employees are fairly remunerated.
- Establish a favorable work environment free of discrimination and harassment, including but not limited to sexual harassment.
- Respect the employee's right to join a union or other coordinated association.
- Prohibit the employment of forced, bonded, or child labor.
3. Human Rights
a. Definition, Commitment, and Objectives
The Universal Declaration of Human Rights (UDHR) contains a good definition of human rights.
FCX, its affiliates, and its employees are dedicated to the promotion of the rule of law and protection of human rights at all operational sites. The Company is committed to ensuring that its operations are conducted in a manner that respects the UDHR, the Voluntary Principles on Security and Human Rights, other applicable international standards of human rights, the laws and regulations of the host country, and the culture of the people who are indigenous to the areas in which the Company operates.
FCX has instituted several methods of accountability, including an annual certification process and the engagement of an independent firm to audit the Company's implementation of the Social, Employment, and Human Rights Policy. Employees are expected to respect human rights principles and to report any acts that may constitute violations of human rights.
The Company and its affiliates will:
- Educate employees about human rights;
- Notify all employees that the company requires them to treat employees and non-employees in and around areas of company operation with dignity and respect;
- Take appropriate action against any employee who violates the human rights of others;
- Report any credible accusation of a
human rights violations to the appropriate government authorities
and
other agencies;
- Provide the company’s full cooperation with any responsible human rights investigation and to support appropriate punishment for any proven violations;
- Protect all employees who report suspected human rights violations;
- Work proactively to create a constructive climate for promotion of human rights in all areas where it operates by implementing programs and policies aimed at building positive relationships, and by setting a good example;
- Take appropriate steps to ensure that no party uses our property and/or equipment to engage in actions that violate human rights.
FCX, together with several other companies from the United States and the United Kingdom, helped to establish the Voluntary Principles on Security and Human Rights. This document was formulated as part of a dialogue between the governments of the United States and the United Kingdom and a number of companies and non-governmental organizations. It covers both interactions between companies and public security, such as police or military, and interactions between companies and private security.
To uphold human rights standards, PTFI's Security Personnel will:
- Carefully screen all potential new hires to avoid hiring anyone who has been credibly implicated in human rights abuses or has a criminal record.
- Respect all people's human rights throughout their daily activities; this includes those persons accused of illegal activity. Among other things, this means avoiding discrimination on the basis of age, gender, ethnicity, race, color, language, sexual preference, religion, political affiliation, or tribal affiliation; arbitrary interference with any person's privacy; and any inhuman or degrading treatment.
- Monitor our equipment and facilities to prevent misuse by parties that may be engaged in actions that violate human rights.
- Consult regularly with local communities on security matters.
- Ensure that all security procedures and policies are publicly available in order to mitigate distrust between operations and local communities.
- Train personnel regularly to reinforce the principles set out in the Voluntary Principles on Security and Human Rights.
- Consult regularly on security, human rights, and related work-place safety issues.
- Communicate Company policies regarding ethical conduct and human rights.
- Support government efforts to provide human rights training and education for all.
- Inform the public of any arrangements of support made by PTFI for the benefit of public security so that such support shall be transparent and publicly disclosed.
- Monitor the use of equipment provided by the Company and investigate situations in which equipment is used in an inappropriate manner.
- Report any credible allegations of human rights abuses by public security in our contracted area of work to the senior military or police official in the area and to the Corporate Human Rights Compliance Officer.
Each operational site will have a Human Rights Compliance Officer (HRCO) and there will be a Corporate HRCO. The HRCOs will be responsible for receiving all reports of possible human rights violations, evaluating those reports, investigating when necessary, forwarding them to appropriate government authorities and, where applicable, to non-governmental organizations if deemed appropriate. The Corporate HRCO is responsible for documenting all allegations, overseeing all investigations, and making recommendations to correct any existing problems and/or to prevent problems from occurring in the future.
PTFI has set forth a supplementary method of reporting potential human rights violations, which can be found in the Human Rights Implementation Guide and Action Plan (FMPROC.02).
d. Annual Certification
Each year senior Staff employees, all security employees, and all community development employees will be required to fill out and submit to the Corporate HRCO a Human Rights Assurance Letter stating that they understand the Company's Social, Employment, and Human Rights Policy and that they have neither taken part in any activities that would violate human rights nor have they witnessed any such activities. The Corporate HRCO will make a report to the Public Policy Committee of the FCX Board of Directors each year about human rights and compliance with the Company's Social, Employment, and Human Rights Policy.
PTFI has set forth a supplementary method of annual certification, which can be found in the Human Rights implementation Guide and Action Plan (FM-PROC.02).
e. Audit
On a periodic basis, the Company will engage an independent firm to conduct an audit of the Company's implementation of this Social, Employment, and Human Rights Policy to assess its effectiveness and the extent of the Company's compliance. The findings from such an audit would be expected to note areas for improvement to which the Company will respond with a plan for implementing recommended improvements. Both the audit report and the Company's response would be made publicly available.
Procedure Referenced:
Refer to FM-PROC.02: Human Rights Implementation Guide and Action Plan.
Exceptions
There are no exceptions to this policy.
The participants recognize the importance of the promotion and protection of human rights throughout the world and the constructive role business and civil society (including non-governmental organizations, labor/trade unions and local communities) can play in advancing these goals. Through this dialogue, the participants have developed the following set of voluntary principles to guide Companies in maintaining the safety and security of their operations within an operating framework that ensures respect for human rights and fundamental freedoms. Mindful of these goals, the participants agree to the importance of continuing this dialogue and keeping under review these principles to ensure their continuing relevance and efficacy.
Acknowledging that security is a fundamental need, shared by individuals, communities, businesses and governments alike, and acknowledging the difficult security issues faced by Companies operating globally, we recognize that security and respect for human rights can and should be consistent;
Understanding that governments have the primary responsibility to promote and protect human rights and that all parties to a conflict are obliged to observe applicable international humanitarian law, we recognize that we share the common goal of promoting respect for human rights, particularly those set forth in the Universal Declaration of Human Rights, and international humanitarian law;
Emphasizing the importance of safeguarding the integrity of company personnel and property, Companies recognize a commitment to act in a manner consistent with the laws of the countries within which they are present, to be mindful of the highest applicable international standards, and to promote the observance of applicable international law enforcement principles (e.g., the U.N. Code of Conduct for Law Enforcement Officials and the U.N. Basic Principles on the Use of Force and Firearms by Law Enforcement Officials), particularly with regard to the use of force;
Taking note of the effect that Companies’ activities may have on local communities, we recognize the value of engaging with civil society and host and home governments to contribute to the welfare of the local community while mitigating any potential for conflict where possible; Understanding that useful, credible information is a vital component of security and human rights, we recognize the importance of sharing and understanding our respective experiences regarding, inter alia, best security practices and procedures, country human rights situations, and public and private security, subject to confidentiality constraints;
Acknowledging that home governments and multilateral institutions may, on occasion, assist host governments with security sector reform, developing institutional capacities and strengthening the rule of law, we recognize the important role Companies and civil society can play in supporting these efforts;
We hereby express our support for the following voluntary principles regarding security and human rights in the extractive sector, which fall into three categories, risk assessment, relations with public security and relations with private security:
Risk Assessment
The ability to assess accurately risks present in a Company’s operating environment is critical to the security of personnel, local communities and assets; the success of the Company’s short and long-term operations; and to the promotion and protection of human rights. In some circumstances, this is relatively simple; in others, it is important to obtain extensive background information from different sources; monitoring and adapting to changing, complex political, economic, law enforcement, military and social situations; and maintaining productive relations with local communities and government officials.
The quality of complicated risk assessments is largely dependent on the assembling of regularly updated, credible information from a broad range of perspectives - local and national governments, security firms, other companies, home governments, multilateral institutions and civil society knowledgeable about local conditions. This information may be most effective when shared to the fullest extent possible (bearing in mind confidentiality considerations) between Companies, concerned civil society, and governments.
Bearing in mind these general principles, we recognize that accurate, effective risk assessments should consider the
following factors:
- Identification of security risks. Security risks can result from political, economic, civil or social factors. Moreover, certain personnel and assets may be at greater risk than others. Identification of security risks allows a Company to take measures to minimize risk and to assess whether Company actions may heighten risk.
- Potential for violence. Depending on the environment, violence can be widespread or limited to particular regions, and it can develop with little or no warning. Civil society, home and host government representatives and other sources should be consulted to identify risks presented by the potential for violence. Risk assessments should examine patterns of violence in areas of Company operations for educational, predictive and preventative purposes.
- Human rights records. Risk assessments should consider the available human rights records of public security forces, paramilitaries, local and national law enforcement, as well as the reputation of private security. Awareness of past abuses and allegations can help Companies to avoid recurrences as well as to promote accountability. Also, identification of the capability of the above entities to respond to situations of violence in a lawful manner (i.e., consistent with applicable international standards) allows Companies to develop appropriate measures in operating environments.
- Rule of law. Risk assessments should consider the local prosecuting authority and judiciary’s capacity to hold accountable those responsible for human rights abuses and for those responsible for violations of international humanitarian law in a manner that respects the rights of the accused.
- Conflict analysis. Identification of and understanding the root causes and nature of local conflicts, as well as the level of adherence to human rights and international humanitarian law standards by key actors, can be instructive for the development of strategies for managing relations between the Company, local communities, Company employees and their unions, and host governments. Risk assessments should also consider the potential for future conflicts.
- Equipment transfers. Where Companies provide equipment (including lethal and non-lethal equipment) to public or private security, they should consider the risk of such transfers, any relevant export licensing requirements, and the feasibility of measures to mitigate foreseeable negative consequences, including adequate controls to prevent misappropriation or diversion of equipment which may lead to human rights abuses. In making risk assessments, Companies should consider any relevant past incidents involving previous equipment transfers.
Although governments have the primary role of maintaining law and order, security and respect for human rights, Companies have an interest in ensuring that actions taken by governments, particularly the actions of public security providers, are consistent with the protection and promotion of human rights. In cases where there is a need to supplement security provided by host governments, Companies may be required or expected to contribute to, or otherwise reimburse, the costs of protecting Company facilities and personnel borne by public security. While public security is expected to act in a manner consistent with local and national laws as well as with human rights standards and international humanitarian law, within this context abuses may nevertheless occur.
In an effort to reduce the risk of such abuses and to promote respect for human rights generally, we have identified the following voluntary principles to guide relationships between Companies and public security regarding security provided to Companies:
- Companies should consult regularly with host governments and local communities about the impact of their security arrangements on those communities.
- Companies should communicate their policies regarding ethical conduct and human rights to public security providers, and express their desire that security be provided in a manner consistent with those policies by personnel with adequate and effective training.
- Companies should encourage host
governments to permit making security arrangements transparent and
accessible to the public, subject to any overriding safety and security concerns.
- The primary role of public security should be to maintain the rule of law, including safeguarding human rights and deterring acts that threaten Company personnel and facilities. The type and number of public security forces deployed should be competent, appropriate and proportional to the threat.
- Equipment imports and exports should
comply with all applicable law and regulations. Companies that
provide equipment to public security should take all appropriate and
lawful measures to mitigate any foreseeable negative
consequences, including human rights abuses and violations of international humanitarian law.
- Companies should use their influence
to promote the following principles with public security:
(a) individuals credibly implicated in human rights abuses should not provide security services for Companies; (b) force should be used only when strictly necessary and to an extent proportional to the threat; and (c) the rights of individuals should not be violated while exercising the right to exercise freedom of association and peaceful assembly, the right to engage in collective bargaining, or other related rights of Company employees as recognized by the Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work.
- In cases where physical force is
used by public security, such incidents should be reported to the
appropriate
authorities and to the Company. Where force is used, medical aid should be provided to injured persons,
including to offenders.
- Companies should hold structured
meetings with public security on a regular basis to discuss
security, human rights and related work-place safety issues.
Companies should also consult regularly with other Companies, host
and home
governments, and civil society to discuss security and human rights.
Where Companies operating in the same region have common concerns,
they should consider collectively raising those concerns with the
host and home governments.
- In their consultations with host
governments, Companies should take all appropriate measures to
promote observance of applicable international law enforcement
principles, particularly those reflected in the U.N. Code of Conduct
for Law Enforcement Officials and the U.N. Basic Principles
on the Use of Force and Firearms.
- Companies should support efforts by governments, civil society and multilateral institutions to provide human rights training and education for public security as well as their efforts to strengthen state institutions to ensure accountability and respect for human rights.
- Companies should record and report any credible allegations of human rights abuses by public security in their areas of operation to appropriate host government authorities. Where appropriate, Companies should urge investigation and that action be taken to prevent any recurrence.
- Companies should actively monitor the status of investigations and press for their proper resolution.
- Companies should, to the extent reasonable, monitor the use of equipment provided by the Company and to investigate properly situations in which such equipment is used in an inappropriate manner.
- Every effort should be made to ensure that information used as the basis for allegations of human rights abuses is credible and based on reliable evidence. The security and safety of sources should be protected. Additional or more accurate information that may alter previous allegations should be made available as appropriate to concerned parties.
Where host governments are unable or unwilling to provide adequate security to protect a Company’s personnel or assets, it may be necessary to engage private security providers as a complement to public security. In this context, private security may have to coordinate with state forces, (law enforcement, in particular) to carry weapons and to consider the defensive local use of force. Given the risks associated with such activities, we recognize the following voluntary principles to guide private security conduct:
- Private security should observe the policies of the contracting Company regarding ethical conduct and human rights; the law and professional standards of the country in which they operate; emerging best practices developed by industry, civil society, and governments; and promote the observance of international humanitarian law.
- Private security should maintain high levels of technical and professional proficiency, particularly with regard to the local use of force and firearms.
- Private security should act in a lawful manner. They should exercise restraint and caution in a manner consistent with applicable international guidelines regarding the local use of force, including the U.N. Principles on the Use of Force and Firearms by Law Enforcement Officials and the U.N. Code of Conduct for Law Enforcement Officials, as well as with emerging best practices developed by Companies, civil society, and governments.
- Private security should have policies regarding appropriate conduct and the local use of force (e.g., rules of engagement). Practice under these policies should be capable of being monitored by Companies or, where appropriate, by independent third parties. Such monitoring should encompass detailed investigations into allegations of abusive or unlawful acts; the availability of disciplinary measures sufficient to prevent and deter; and procedures for reporting allegations to relevant local law enforcement authorities when appropriate.
- All allegations of human rights abuses by private security should be recorded. Credible allegations should be properly investigated. In those cases where allegations against private security providers are forwarded to the relevant law enforcement authorities, Companies should actively monitor the status of investigations and press for their proper resolution.
- Consistent with their function, private security should provide only preventative and defensive services and should not engage in activities that are exclusively the responsibility of state military or law enforcement authorities. Companies should designate services, technology and equipment capable of offensive and defensive purposes as being for defensive use only.
- Private security should (a) not employ individuals credibly implicated in human rights abuses to provide security services; (b) use force only when strictly necessary and to an extent proportional to the threat; and (c) not violate the rights of individuals while exercising the right to exercise freedom of association and peaceful assembly, to engage in collective bargaining, or other related rights of Company employees as recognized by the Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work.
- In cases where physical force is used, private security should properly investigate and report the incident to the Company. Private security should refer the matter to local authorities and/or take disciplinary action where appropriate. Where force is used, medical aid should be provided to injured persons, including to offenders.
- Private security should maintain the confidentiality of information obtained as a result of its position as security provider, except where to do so would jeopardize the principles contained herein.
- Where appropriate, Companies should include the principles outlined above as contractual provisions in agreements with private security providers and ensure that private security personnel are adequately trained to respect the rights of employees and the local community. To the extent practicable, agreements between Companies and private security should require investigation of unlawful or abusive behavior and appropriate disciplinary action. Agreements should also permit termination of the relationship by Companies where there is credible evidence of unlawful or abusive behavior by private security personnel.
- Companies should consult and monitor private security providers to ensure they fulfil their obligation to provide security in a manner consistent with the principles outlined above. Where appropriate, Companies should seek to employ private security providers that are representative of the local population.
- Companies should review the background of private security they intend to employ, particularly with regard to the use of excessive force. Such reviews should include an assessment of previous services provided to the host government and whether these services raise concern about the private security firm's dual role as a private security provider and government contractor.
- Companies should consult with other Companies, home country officials, host country officials, and civil society regarding experiences with private security. Where appropriate and lawful, Companies should facilitate the exchange of information about unlawful activity and abuses committed by private security providers.
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| Local residents have many uses for Casuarina trees. This man has harvested a tree in a young Casuarina forest planted just four years earlier in the tailings deposition area. |
