Salient human rights issues are addressed in line with our Human Rights Policy, Principles of Business Conduct, and Supplier Code of Conduct, as well as the following supporting policies:
Together these policies, along with relevant external standards and initiatives (such as the Voluntary Principles on Security and Human Rights, of which we were a founding member) form the overall framework that guides our sustainability programs, and by extension, our management of human rights. Supporting this framework are internal governance and management systems that provide the details on how we operate.
As noted above, all employees are trained on our PBC, which sets forth the global system of principles that our workforce must follow in all activities and integrates our commitment to promoting the rule of law and respecting human rights. In addition, all suppliers (including contractors) receive our Supplier Code of Conduct, which is based on our PBC and helps ensure our expectations and standards will be applied by all involved in our operations.
For more information on our application of the Voluntary Principles on Security and Human Rights (including associated training) refer to: 2017 Report to the Voluntary Principles Plenary.
We formally engage with a range of stakeholders including rights holders (such as employees and community members) and other interested stakeholders (such as development institutions, investors, banks, NGOs, civil society, government and suppliers/contractors) on an ongoing basis.
In the ‘internal’ context, for example, employees may be engaged on an ongoing basis via:
- Internal company communications
- Everyday interactions with line managers
- Formal internal grievance mechanisms
- Interactions with labor representatives
In the ‘external’ context each of our mine sites maintains 5-year community engagement and development plans that identify affected or interested parties for ongoing engagement and consultation. Issues raised help inform each operation’s Sustainable Development Risk Register and assist in developing social investment strategies. Hundreds of individuals and entities are engaged annually via (for example):
- Community foundations
- Formal external grievance mechanisms
- Community liaison officers
- Participatory group panels
- Town hall meetings
External engagement also occurs through regulatory consultation processes with local governments and community groups, including indigenous peoples.
Beyond this, dedicated in-field human rights engagement takes place under site-level HRIA process. These are organized around the level of risk or impact posed by each site as well as other practical considerations.
Key criteria for identifying stakeholders to engage as part of our series of site-level HRIAs include the following:
- The likelihood that a stakeholder's human rights might be undermined by our business activities and/or relationships (as well as the degree of potential severity of such an impact)
- The severity of any negative impacts linked to our business and/or relationships that have undermined a stakeholder's human rights
- The specific vulnerability of certain stakeholders to negative human rights impacts linked to our business and/or relationships
- The degree to which a stakeholder is either unwilling or unable to use conventional grievance mechanisms (whether public or linked to Freeport-McMoRan) to raise human rights concerns
- The degree to which stakeholders are able to provide insight into the existence and/or nature of any negative human rights impacts our business and/or relationships have on themselves, their communities and/or third-parties
For examples of the kinds of stakeholders engaged via the Cerro Verde HRIA, refer to: Cerro Verde HRIA.
For information on our ongoing stakeholder engagement refer to: Stakeholder Engagement and Workforce.
Changes in our Sustainability Focus Areas are identified via our SD Risk Register process. As previously noted, our SD Risk Register process is being enhanced in 2018 to further integrate respect for human rights. Updates will include more robust categorical definitions for risk evaluation and will more clearly incorporate human rights considerations beyond traditional security and human rights risks (see Dashboard).
Our ongoing program of site-level HRIAs act as a form of ‘deep-dive’ verification that builds on our established SD Risk Register process. These assessments use a comprehensive and dedicated HRIA methodology that is aligned with the UN Guiding Principles to identify and prioritize each operations human rights risks and impacts. In many cases, risks and impacts have been identified via the site’s SD Risk Register process and grievance mechanisms. However, the application of a specific ‘human rights lens’ means these site-level HRIAs are able to:
- Supplement these results with otherwise ‘hidden / unreported’ risks and impacts that are not otherwise being captured (including through direct engagement with affected and potentially-affected rights holders)
- Use a structured framework to prioritize identified risks and impacts using the specific criteria set out in the UN Guiding Principles (e.g. scope, scale and remediability)
- Deliver additional analytical insight into the identified risks and impacts from a specific human rights perspective
As such, these site-level HRIAs help us test our established human rights relevant management systems to ensure they are effective in identifying, mitigating and remediating human rights risks and impacts.
Integrating Findings and Taking Action
Where site-level HRIAs identify gaps in our established human rights relevant management systems, we work with the relevant cross-functional teams to develop action plans. These action plans support continuous improvement of existing systems and processes, and include the identification/definition of:
- Causal relationship to the site
- Risk/impact severity and frequency
- Affected rights holders and locations
- Action plan objectives
- Existing risk/impact controls
- Additional actions to be taken (including responsible persons and completion dates)
- Reference documents
- Resourcing requirements
Action plans are embedded and tracked within the site’s SD Risk Register process. Where necessary, they establish new measures to investigate, avoid, mitigate and/or remedy human rights risks and impacts. As of the end of 2017, the Cerro Verde team was reviewing the results of the HRIA with intentions to develop action plans to address any risks and impacts. For information on the results of the Cerro Verde HRIA, refer to: Cerro Verde HRIA
Direct input from rights holders, as well as first-hand assessment of potential and actual impacts (e.g. through site inspection), are key components of our site-level HRIA processes, which are helping us test the effectiveness of our established human rights relevant management systems.
The 2017 Cerro Verde HRIA results, for example, confirmed that Cerro Verde’s:
- Existing grievance mechanisms (particularly those operated by the Community Relations and Legal teams) are effective in capturing and addressing human rights-related complaints and incidents
- ISO 14001-certified environmental management system, OHSAS 18001-certified health and safety management system, and application of the Voluntary Principles on Security and Human Rights were, with the exception of two workplace fatalities, effective in helping minimize related human rights impacts
For more information on the Cerro Verde HRIA, refer to: Cerro Verde HRIA
While we seek to avoid causing adverse impacts, we acknowledge that they may occur despite our best efforts. Our Human Rights Policy outlines our commitment to remediating any proven adverse impacts on individuals, workers and communities that are caused by or contributed to by our operations. Grievance mechanisms support our commitment to remedy. We have multiple mechanisms for employees, community members, and members of our supply chain to report concerns. These mechanisms help us address concerns early and remediate impacts directly.
Our global, publicly available reporting options associated with our Principles of Business Conduct are available to our employees and supply chain partners (via our Supplier Code of Conduct). This includes the FCX Compliance Line, a phone system managed by an independent third party that allows for anonymous reporting of issues or concerns relating to our PBC, policies or procedures. In addition, we offers a similar web-based reporting system, also operated by a third party, along with an option for direct email to our Compliance Department. We also maintain long-established site-level community grievance mechanisms at our operations, as well as human rights grievance mechanisms at higher risk operations. We are committed to:
- Protecting the confidentiality of anyone who reports potential violations
- Cooperating with human rights-related investigations
- Supporting appropriate remediation for proven violations
We do not tolerate retaliation against any employee for raising a question or concern in good faith. Per our Human Rights Policy, use of our internal and external grievance mechanisms does not preclude access to judicial or other non-judicial grievance mechanisms.
In 2017, we initiated a project to review our employee and community grievance management procedures against the effectiveness criteria outlined in the UN Guiding Principles (i.e., legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, and based on engagement and dialogue). In addition to conducting our own internal benchmarking, we are engaging with a set employee and community stakeholders to obtain their feedback.
For information on complaints received via the Freeport-McMoRan Compliance Line and how they are processed, refer to: Principles of Business Conduct, Business Ethics, and Diversity. Also refer to Workforce for additional information on employee grievances and how they are handled.
For information on complaints received via the Community Grievance Mechanism and how they are processed, refer to: Assessing and Managing Impacts, Grievance Management System, Land Use and Customary Rights, Indigenous Peoples, Environment, and Freeport in My Community.
For information on the number of complaints received via the Human Rights Grievance Mechanisms at PT-FI and Cerro Verde and how they are handled, refer to: 2017 Report to the Voluntary Principles Plenary.
For information on our Fatality Prevention Program and how we approach family care for serious situations, refer to: Fatality Prevention.