The Freeport-McMoRan Board of Directors (Board) as a whole is responsible for risk oversight, with reviews being conducted by the relevant Board committees that regularly report to the full Board. In its risk oversight role, the Board reviews, evaluates and discusses with members of management whether the risk management processes designed and implemented are adequate in identifying, assessing, managing and mitigating material risks facing the company.
Our Non-Executive Chairman regularly meets with our Chief Executive Officer and discusses a variety of matters including business strategies, opportunities, key challenges and risks facing the company as well as management’s risk mitigation strategies. Senior management attends regularly scheduled Board meetings where they present on various strategic matters involving our operations and are available to address any questions or concerns raised by the Board. The Board oversees the strategic direction of the company and, in doing so, considers the potential rewards and risks of our business opportunities and challenges and monitors the development and management of risks that impact our strategic goals.
The Board has four standing committees: Audit, Compensation, Nominating and Corporate Governance, and Corporate Responsibility, each of which is composed entirely of independent directors. The Corporate Responsibility Committee assists the Board in fulfilling its oversight responsibilities with respect to the management of risks associated with our safety and health policies and programs, environmental policy and programs, human rights policy and practices, community and public health programs, community policy and practices, governmental and stakeholder relations, sustainable development programs, programs to evaluate and address climate-related impacts and opportunities, charitable contributions, and political activity and spending practices.
During 2018, the Corporate Responsibility Committee received various reports and considered items with a particular focus on safety, which included reviewing the root causes of safety incidents and corrective actions implemented to prevent future accidents. In addition, the Corporate Responsibility Committee reviewed our human rights program, including the results of the human rights impact assessments at Cerro Verde and the New Mexico operations, responsible sourcing frameworks, social investment and charitable contributions, progress addressing reclamation and remediation liabilities, community medical and public health services, political activity and spending practices, and financial sector stakeholder engagement on sustainability matters. The Corporate Responsibility Committee reports to our Board, which provides oversight on all matters.
PHOTO DESCRIPTION: The Grasberg Block Cave will anchor the world’s largest underground copper mining complex. Above, an automated rail system is being installed on four levels of the mine to safely transport ore and materials.