Freeport-McMoRan maintains a sustainability reporting prioritization assessment process to define topics and their level of priority to the company and its stakeholders for inclusion in its sustainability reporting. The process allows for:

  • A structured and objective approach for decision-making and planning around sustainability reporting
  • Selecting topics to include in annual sustainability reporting based on a documented measurement approach and evaluation of sustainability topics of importance to internal and external stakeholders
  • Monitoring trends in sustainability topics of importance to stakeholders over time
  • Adherence to the Global Reporting Initiative (GRI) G4 framework, core option

The prioritization process requires cross-review of documents and systems that summarize stakeholder engagements such as queries received from value chain members; community and employee grievance reports; community engagement processes and reports; environmental and social impact assessment reports; employee surveys; and meetings with financial stakeholders, NGOs, and industry groups. These reviews are used to prioritize the level of importance of reporting topics to key groups with whom we regularly engage as part of our business at the corporate and operational levels.

To align prioritization of reporting topics from the perspective of importance to our business we review the outputs of our operations’ Sustainable Development Risk Register process and consider the topics addressed in our corporate public reporting, including our filings with the U.S. Securities and Exchange Commission (SEC). The resulting importance of each topic to our business is then reviewed and confirmed annually by the Freeport-McMoRan Sustainable Development Leadership Team. 

In most instances, key sustainability topics prioritized by our business are also of high importance to stakeholders. This commonality is demonstrated by Sustainability Focus Areas. On occasion, we have chosen to report on G4 indicators that may not be of high importance to internal or external stakeholders because our reporting systems have historically captured the information used by certain groups such as sustainability analysts.
We are reporting in accordance with the GRI G4 core option reporting guidelines for the second year and in accordance with the Mining and Metals Sector Supplement for the seventh consecutive year. Prior to our 2015 Working toward Sustainable Development report, we have reported according to the GRI G3 A+ level since 2008.

United Nations Sustainable Development Goals (SDGs)

Freeport-McMoRan seeks to make a positive contribution to the SDGs while mitigating any potential impediments to their realization. The company is evaluating areas where it can help advance the SDGs while continuing to enhance its existing programs that align with SDG objectives. We are implementing the International Council on Mining & Metals (ICMM) Sustainable Development Framework and continue to apply ICMM’s 10 Sustainable Development Principles that are linked to the SDGs. A cross-reference to the SDGs is included in our GRI Content Index below.

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Data presented in this section include the primary operations of Freeport-McMoRan’s mining subsidiaries: Freeport Minerals Company (FMC) and PT Freeport Indonesia (PTFI) for the period January 1, 2016 to December 31, 2016. We completed the sale of our effective 56 percent interest in the Tenke copper and cobalt mining concessions (Tenke Fungurume Mining or TFM) in November 2016. TFM data, up to the sale date, is included in the boundary of this section. Information related to our remaining oil and gas assets is included where noted.

GRI Content Index

Strategy and Analysis
Disclosure Description Reference
G4-1 Statement from the most senior decision-maker of the organization Letter to Stakeholders
2016 WTSD Report
G4-2 Description of key impacts, risks, and opportunities Sustainability Focus Areas
Form 10-K: Risk Factors, page 39
2016 WTSD Report
Organizational Profile
Disclosure Description Reference Link to SDGs
G4-3 Name of the organization Freeport-McMoRan Inc.  
G4-4 Primary brands, products, and services Copper, gold, molybdenum and cobalt  
G4-5 Location of organization's headquarters Phoenix, Arizona USA  
G4-6 Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report Our operating mines are located in Chile, Indonesia, Peru and the United States. For more information on our operations, please see
Form 10-K: General, page 1;
Form 10-K: Mining Operations, page 7
2016 WTSD: About this Report
 
G4-7 Nature of ownership and legal form Form 10-K, General page 2
G4-8 Markets served Form 10-K: Products and Sales, page 4  
G4-9 Scale of the organization Workforce
2016 Revenues: Form 10-K, page 124
2016 Sales Data: Form 10-K, page 74
 
G4-10 Total workforce by employment type, employment contract, region and gender Workforce
G4-11 Percentage of total employees covered by collective bargaining agreements Labor Relations
Form 10-K: Labor Matters, page 6
G4-12 Description of the organization’s supply chain Form 10-K: Sources and Availability of Energy, Natural Resources and Raw Materials, page 24
Global Supply Chain
Commodity Management
 
G4-13 Significant changes during the reporting period regarding the organization's size, structure, ownership or its supply chain Form 10-K: Management's Discussion and Analysis, page 62  
G4-14 Explanation of whether and how the precautionary approach or principle is addressed by the organization Our Approach
Environment
 
G4-15 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or which it endorses External Initiatives  
G4-16 Memberships of associations and national or international advocacy organizations External Initiatives  
Identified Material Aspects and Boundaries
Disclosure Description Reference
G4-17 Entities included in the organization’s consolidated financial statements or equivalent documents and whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report Form 10-K
2016 WTSD Report: About This Report
G4-18 Process for defining report content and the Aspect Boundaries, and how the organization has implemented the Reporting Principles for Defining Report Content 2016 WTSD Report: About this Report
Our Approach
Sustainability Focus Areas
GRI Content Index
G4-19 Material aspects identified in the process for defining report content WTSD Report: About this Report
GRI Content Index
G4-20 Material aspect boundary within the organization WTSD Report: About this Report
G4-21 Material aspect boundary outside the organization WTSD Report: About this Report
G4-22 Effect of any restatements of information provided in previous reports, and the reasons for such restatements As a result of methodology changes or corrections, prior year data may be updated. Data presentation and comparisons may not meet the direct needs of all stakeholders, and we encourage users of this information to contact our Sustainable Development Department with inquiries.
G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries WTSD Report: About this Report
Stakeholder Engagement
Disclosure Description Reference
G4-24 List of stakeholder groups engaged by the organization Our Approach
Communities
Stakeholder Engagement 
Human Rights
G4-25 Basis for identification and selection of stakeholders with whom to engage Our Approach
Communities
Stakeholder Engagement 
Human Rights
G4-26 Approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process Letter to Stakeholders
Our Approach
Communities
Stakeholder Engagement
Human Rights 
G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting; list of the stakeholder groups that raised each of the key topics and concerns Letter to Stakeholders
Our Approach
Communities
Stakeholder Engagement
Human Rights 
Report Profile
Disclosure Description Reference
G4-28 Reporting period (e.g., fiscal/calendar year) for information provided Fiscal year ended December 31, 2016 
G4-29 Date of most recent previous report 2015 WTSD Report
G4-30 Reporting cycle (annual, biennial, etc.) Annual 
G4-31 Contact point for questions regarding the report or its contents sustainability@fmi.com 
G4-32 GRI Content Index for the chosen 'in accordance' option, and the reference to the External Assurance Report GRI Content Index
External Assurance  
G4-33 Policy and current practice with regard to seeking external assurance for the report, including the relationship between the organization and the assurance provider, and whether the highest governance body or senior executives are involved in seeking assurance for the organization's sustainability report External Assurance 
Governance
Disclosure Description Reference Link to SDGs
G4-34 Governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts Corporate Governance
2017 Proxy Statement: Corporate Governance, page 6 
 
G4-35 Process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees Our Approach
2017 Proxy Statement
 
G4-36 Has the organization appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body Our Approach   
G4-37 Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics Our Approach
2017 Proxy Statement, page 5
G4-38 Composition of the highest governance body and its committees Corporate Governance
2017 Proxy Statement, page 3
G4-39 Indicate whether the Chair of the highest governance body is also an executive officer Mr. Gerald J. Ford is the Non-Executive Chairman of the Board of Freeport-McMoRan Inc. 
G4-40 Nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members 2017 Proxy Statement, page 12
Corporate Governance Guidelines
G4-41 Processes for the highest governance body to ensure conflicts of interest are avoided and managed Freeport-McMoRan maintains Conflicts of Interest Guidelines designed to provide guidance to directors, officers and employees so that conflicts of interest may be avoided. The guidelines establish procedures for disclosure of actual or potential conflicts of interest so that concerns may be addressed and any necessary corrective action may be taken.
Corporate Governance Guidelines
Principles of Business Conduct
2017 Proxy Statement 
G4-42 Highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts Our Approach
Business Ethics
 
G4-43 Measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics Our Approach 
G4-44 Processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics Corporate Governance Guidelines
2017 Proxy Statement, page 11 
 
G4-45 Highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities Our Approach
2017 Proxy Statement
Corporate Governance Guidelines
Corporate Responsibility Committee Charter  
G4-46 Highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics Our Approach
2017 Proxy Statement: p. 11 
 
G4-47 Frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities Our Approach
2017 Proxy Statement
Corporate Governance Guidelines
Corporate Responsibility Committee Charter 
 
G4-48 Highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered The Freeport-McMoRan Sustainable Development Leadership Team and Freeport-McMoRan senior management
Our Approach 
 
G4-49 Process for communicating critical concerns to the highest governance body 2017 Proxy Statement
Our Approach
 
G4-50 Nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them Our Approach
2017 Proxy Statement 
 
G4-51 Remuneration policies for the highest governance body and senior executives 2017 Proxy Statement   
G4-52 Process for determining remuneration 2017 Proxy Statement   
G4-53 How stakeholders’ views are sought and taken into account regarding remuneration 2017 Proxy Statement 
Ethics and Integrity
Disclosure Description Reference Link to SDGs
G4-56 Explanation of organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics Our Approach
Principles of Business Conduct
External Initiatives
G4-57 Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines Business Ethics
Principles of Business Conduct
G4-58 Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines Business Ethics
Principles of Business Conduct
Economic
Disclosure Description Reference Link to SDGs
G4-DMA Disclosure on management approach including economic performance, market presence, indirect economic impacts, and procurement practices Economic Impacts
2016 WTSD Report
Form 10-K

Economic Performance
G4-EC1 Direct economic value generated and distributed Economic Impacts
2016 WTSD Report Transparency of Government Payments
Land Use and Customary Rights


G4-EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change Form 10-K, page 52
Energy Management
Water Supply and Management
2017 CDP Climate Change Information Request
2017 CDP Water Information Request
Indirect Economic Impacts
G4-EC7 Development and impact of infrastructure investments and services supported Community Investment
Public Health
Environment


G4-EC8 Significant indirect economic impacts, including the extent of impacts Economic Impacts

Procurement Practices
G4-EC9 Proportion of spending on local suppliers at significant locations of operation Economic Impacts
Local Suppliers
Environmental
Disclosure Description Reference Link to SDGs
DMA Disclosure on management approach including energy, water, biodiversity, emissions, effluents and waste, environmental compliance and environmental grievance mechanisms Our Approach
Letter to Stakeholders
Environment
2017 CDP Climate Change Information Request
2017 CDP Water Information Request

Energy
G4-EN3 Energy consumption within the organization Energy Management
2017 CDP Climate Change Information Request

G4-EN6 Reduction of energy consumption Energy Management
2017 CDP Climate Change Information Request

Water
G4-EN8 Total water withdrawal by source Water Supply and Management
2017 CDP Water Information Request
G4-EN10 Percentage and total volume of water recycled and reused Water Supply and Management
2017 CDP Water Information Request

Biodiversity
G4-EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas Biodiversity
Controlled Riverine Tailings Management

MM1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated Reclamation
Biodiversity


MM2 The number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria, and the number (percentage) of those sites with plans in place Biodiversity
Emissions  
G4-EN15 Direct greenhouse gas (GHG) emissions (scope 1) Energy Management
2017 CDP Climate Change Information Request


G4-EN16 Energy indirect greenhouse gas (GHG) emissions (scope 2) Energy Management
2017 CDP Climate Change Information Request


G4-EN17 Other indirect greenhouse gas (GHG) emissions (scope 3) 2017 CDP Climate Change Information Request

G4-EN18 Greenhouse gas (GHG) emissions intensity Energy Management
2017 CDP Climate Change Information Request

G4-EN19 Reduction of greenhouse gas (GHG) emissions Energy Management
2017 CDP Climate Change Information Request

G4-EN20 Emissions of ozone-depleting substances (ODS) Air Emissions
G4-EN21 NOx, SOx, and other significant air emissions  Air Emissions
Effluents and Waste
G4-EN22 Total water discharge by quality and destination Water Discharges
Controlled Riverine Tailings Management

G4-EN23 Total weight of waste by type and disposal method Non-Mineral Waste and Recyclable Material
MM3 Total amounts of overburden, rock, tailing and sludges, and, their associated risks Tailings
Controlled Riverine Tailings Management
Management of Sludges and Residues
Form 10-K, pages 46 and 51

G4-EN24 Total number and volume of significant spills Performance Targets
Environment


G4-EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff Controlled Riverine Tailings Management
Biodiversity

Compliance
G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Environment
Overall
G4-EN31 Total environmental protection expenditures and investments by type Form 10-K, page 100


Environmental Grievance Mechanisms
G4-EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms Environmental Grievances
Grievance Management Systems
Labor Practices and Decent Work
Disclosure Description Reference Link to SDGs
DMA Disclosure on management approach including employment Workforce
Safety and Health
Human Rights
Form 10-K, page 6

Employment
G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region Workforce
Labor/Management Relations
G4-LA4 Minimum notice periods regarding significant operational changes, including whether these are specified in collective agreements Labor Relations
MM4 Number of strikes and lock-outs exceeding one week's duration, by country None
Occupational Health and Safety
G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender Safety and Health
Training and Education
G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Workforce
Diversity and Equal Opportunities
G4-LA12 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity Diversity
2017 Proxy Statement, page 16
Equal Remuneration for Women and Men
G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operations  It is our policy to make all employment decisions on the basis of merit and the essential functions of a position and provide equal pay and benefit opportunities to persons with equal skill, effort and job responsibilities.
Supplier Assessment for Labor Practices
G4-LA14 Percentage of new suppliers that were screened using labor practices criteria Using its online due diligence system, the Freeport Compliance eXchange (FCeX), our goal is to screen 100 percent of all suppliers to its operations in Indonesia, Chile, Peru and selected explorations sites for compliance with the company’s labor standards. New suppliers to locations not covered by the online system undergo manual screening by the company’s Global Supply Chain department. All suppliers receive and are expected to perform in accordance with the Company’s
Supplier Code of Conduct.
Business Ethics

G4-LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken Human Rights 
Labor Practices Grievance Mechanisms
G4-LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms WTSD Report: Labor Relations
Business Ethics
Human Rights 
Human Rights
Disclosure Description Reference Link to SDGs
DMA Disclosure on management approach including investment, non-discrimination, freedom of association and collective bargaining, child labor, forced or compulsory labor, security practices, indigenous rights, assessment, supplier human rights assessment and human rights grievance mechanisms Our Approach
Human Rights
2016 Voluntary Principles Report
Communities

Investment
G4-HR2 Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained 2016 Voluntary Principles Report
Business Ethics
Human Rights
 
Non-discrimination
G4-HR3 Total number of incidents of discrimination and corrective actions taken Diversity 
Freedom of Association and Collective Bargaining
G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights We do not believe that the right to exercise freedom of association and collective bargaining is at significant risk at any of our operations.
Labor Relations
Human Rights Policy
Child Labor
G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor We do not believe that any of our operations are at significant risk for incidents of child, forced or compulsory labor.
Business Ethics
Human Rights
Forced or Compulsory Labor
G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor Our Human Rights Policy requires fair treatment and work conditions for all employees and prohibits child, forced, or compulsory labor. We do not believe that any of our operations are at significant risk for incidents of child, forced or compulsory labor.
Supplier Code of Conduct
Human Rights
Security Practices
G4-HR7 Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations   2016 Voluntary Principles Report
Indigenous Rights
G4-HR8 Total number of incidents of violations involving rights of indigenous peoples and actions taken Assessing and Managing Impacts
Indigenous Peoples
MM5 Total number of operations taking place in or adjacent to Indigenous Peoples' territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples' communities Assessing and Managing Impacts
Indigenous Peoples
Land Use and Customary Rights 
Assessment
G4-HR9 Total number and percentage of operations that have been subject to human rights reviews or impact assessments Human Rights   
Supplier Human Rights Assessment
G4-HR10 Percentage of new suppliers that were screened using human rights criteria Using its online due diligence system, the Freeport Compliance eXchange (FCeX), our goal is to screen 100 percent of all suppliers to its operations in Indonesia, the DRC, Chile, Peru and selected explorations sites for compliance with the company’s labor standards. New suppliers to locations not covered by the online system undergo manual screening by the company’s Global Supply Chain department. All suppliers receive and are expected to perform in accordance with the company’s
Supplier Code of Conduct.
Human Rights
Freeport-McMoRan 2014 WTSD Report: Business Ethics, page 17
 
G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken Human Rights
2016 Voluntary Principles Report 
 
Human Rights Grievance Mechanisms
G4-HR12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms Human Rights
Communities
2016 Voluntary Principles Report
Principles of Business Conduct   
Society
Disclosure Description Reference Link to SDGs
DMA Disclosure on management approach including local communities, anti-corruption, public policy, compliance, supplier assessment for impacts on society, grievance mechanisms for impacts on society, emergency preparedness, artisanal mining, resettlement and closure planning Our Approach
Business Ethics
Communities
Assessing and Managing Impacts
Human Rights

Local Communities
G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs Our Approach
Communities
Assessing and Managing Impacts
 
MM6 Number and description of significant disputes relating to land use, customary rights of local communities and Indigenous Peoples Indigenous Peoples
Land Use and Customary Rights
MM7 The extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and Indigenous Peoples, and the outcomes Indigenous Peoples
Land Use and Customary Rights
Anti-corruption
G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified Every year, our internal audit firm performs a company-wide, global business risk assessment to assist in planning the next year’s audit projects. This overall risk assessment includes corruption as a risk factor. 
G4-SO4 Communication and training on anti-corruption policies and procedures Business Ethics 
G4-SO5 Confirmed incidents of corruption and actions taken Business Ethics 
Compliance
G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations As a global company in a regulated industry, we are subject to thousands of legislative, judicial and administrative regulations at all levels of government in all jurisdictions. Please refer to our annual report on Form 10-K and quarterly reports on Form 10-Q.
Grievance Mechanisms for Impacts on Society
G4-SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms Communities
Assessing and Managing Impacts
Human Rights
Environment
2016 Voluntary Principles Report
Principles of Business Conduct
Emergency Preparedness
    Safety and Health  
Artisanal and Small-scale Mining
MM8 Number (and percentage) of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site; the associated risks and the actions taken to manage and mitigate these risks   Artisanal Mining
2016 Voluntary Principles Report


Resettlement
MM9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process Resettlement
Assessment
MM10 Number and percentage of operations with closure plans Form 10-K, page 41   
Materials Stewardship
Disclosure Description Reference Link to SDGs
DMA Disclosure on management approach Our Approach
Product Stewardship

Cautionary Statement The sustainable development section of our website contains forward-looking statements in which we discuss factors we believe may affect our performance in the future. Forward-looking statements are all statements other than statements of historical facts, such as statements regarding projected production and sales volumes. We caution readers that our actual results may differ materially from those anticipated or projected in the forward-looking statements. Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements are described in Freeport-McMoRan’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission and available on our website.

PHOTO DESCRIPTION: Members of the Tailings Stewardship Team (TST) inspect the Henderson Tailings Dam in Colorado.