As Chairman of the Board, I am very pleased to present the 10th CAP Group Sustainability Report, in accordance with Global Compact principles and the UN Sustainable Development goals.

This document represents the collaborative work carried out by the different Group companies and accounts for the goals achieved by the company but, above all, it highlights the permanent challenges addressed in different areas, as part of our commitment to support the sustainable development of the countries and communities where we operate, in some of them, for over 65 years.

At CAP, we keep moving towards an ever more agile, efficient and innovative organization. In this sense, the objectives set for the coming years encompass a number of aspects, from people, business or clients through the numerous needs of the country.

From a business point of view, among our priority, short-term goals is to continue making progress in those area where we already have an active participation while charting the path towards the organization we would like to build. This is why I believe that, in the space of five or ten years, our company will have evolved and embraced the new challenges.

In broad terms, 2017 was a positive year for our organization. Besides inaugurating two modern production plants in Peru, completing the business consolidation of our infrastructure area and considerably improving our results, the main achievement, in my opinion, is having implanted the CAP vision into the organization, as a live entity moving to a well-defined destination, determined to meet, in the long term, the needs of society.

Thus, organizational changes took place at the highest levels of the company, intended to reinforce this company approach like, for instance, the creation of a New Businesses Management. Additionally, and from an operational standpoint, we experienced a renewed emphasis on operational excellence.

It should be pointed out also that the institution as strengthened its commitment with our country’s sustainable development. CAP always stands “on Chile’s side” and we believe its economic development is in no way incompatible with the defense of the environment or with society, in general, as proved by the different recognitions received by the company and its employees.

In this context, safety stands as a corporate priority and is addressed with a systemic approach. For this reason, besides the awards received for third consecutive year, as a result of the outstanding performance in mining safety and prevention matters (John T. Ryan and Sernageomin awards) and the distinctions for transparency, talent retention and cordial relationships with labor unions (Clotario Blest award to CAP Acero), CAP is part of the Dow Jones Sustainability Index Chile and of the DJSI MILA Pacific Alliance.

I would like to add also that CAP becomes part of every community where it operates or has operated. Suffice to say that over 90% of people working at the company lives in the same area where our facilities are located. We are part of the territory and respect its characteristics. This is why each new investment initiative is carefully examined, always pursuing a harmonious integration, by building environmentally and socially sustainable projects.

Sustainability is and has always been of major importance. Companies can engineer the most profitable business ever in the planet but, if it fails to be sustainable, it will not persist over time. Thus, sustainability is at the core of the business strategy. Moreover, the business strategy should be based on innovation and creativity.

Companies should be in a permanent process of adaptation to the new needs of society, the new technological advances and the new scientific discoveries that lead part of sustainable development.

Likewise, I would like to mention that even if last year CAP developed its mining activities in a slightly more favorable international scenario than 2016, in terms of prices and premiums for the quality of our products, in domestic terms, the local context continued to be affected by the economic crunch and unfair competition issues that have impacted the steel industry.

Finally, it is important to emphasize the fact that sustainability has been part of CAP long-term business vision for the last seven decades, thus contributing to the development of the country, the regions and people’s wellbeing. We hope to keep on the same track, building the future, with renewed vigor, at least, for next seven decades.

Fernando Reitich S.
CAP Group President