At CAP Group we create future

It is with great pride and satisfaction that we submit to you a new Sustainability Report. We have prepared this document in a collaborative and uninterrupted manner for the last nine years, pursuant to the Global Compact guidelines and the United Nations Sustainability Development Goals (SDG). The report provides an account of our main achievements as a company in the various topics of interest to our different stakeholders.

Ever since the creation of CAP, we have historically driven the development of Chile and its people. Likewise, the company has privileged its corporate social responsibility and sustainability for over 65 years; long before these concepts were actually formalized.

Although during these last years we have mostly concentrated on costs, in operational excellence, on productivity and innovation, and in product diversification and business areas, we always operate honoring the Group’s historic commitment to sustainability. In other words, at CAP we seek to ensure a long-term projection contributing shared value to our workers and to the communities in which we live together, in an ethical and responsible manner.

It is undoubtedly and naturally important to highlight that the relationship between productive entities and their respective environments has indeed evolved. The continuously growing empowerment of the civil society and the continuous changes –ever faster and dynamic- require companies to be proactive; for example, in the manner in which they relate to the communities.

We are fully aware that for most companies, including CAP, striking a balance between economic development and a harmonious environment is a continuous challenge. The CAP Group’s Sustainability Strategy is aimed at creating sustainable value for all its stakeholders.

This is why we are convinced that industrial projects can be developed in harmony with their respective communities and environments. On this particular point, I consider that our companies: CAP Mineria, CAP Acero and Cintac, with continuous operations throughout the last six decades, have always concerned themselves with sustainable development practices in the regions of Atacama, Coquimbo, Biobío and Santiago Metropolitan, respectively, are exemplar in this sense.

Additionally, in our case, in all the countries in which we operate, we are an active member of the community. This is so, not only because our companies are immersed in them, but also and primarily, because most of our own collaborators (nearly 96% of the total) live in the same locations of our operations.

This is what sets CAP apart from other mining companies or new investors: our operations operate amidst our communities, where both our collaborators and our neighbors live. During our long history, we have learned to listen and be listened to and to understand and be understood in the common understanding that development must be sustainable. Our credibility stands on our own track record and in our responsibility and commitment to each new project.

Likewise, CAP’s commitment with employment quality is clearly reflected today in each of its more than 8 thousand workers.

It is worth mentioning that good labor relations are an integral part of one of the pillars that support our Operational Excellence and, at the same time, it is one of the challenges of Sustainability. In terms of work union relationships, CAP has maintained, in each of its companies, its traditional openness and transparency with the work union organizations set up within the company, fully adhering to the current legislation. The year 2016 was no exception in this respect.

Our commitment to the safety and integrity of persons and to the environment is also an integral part of this relationship and of our own culture of sustainability.

I also wish to highlight that despite adverse scenarios, our Persons and their Innovation continue to be fundamental company pillars: the company is indeed its own people and, therefore, their creativity is no less important that their knowledge and skills, particularly in times of important challenges.

In sum, CAP’s historical role in responsibly developing its activities has materialized in specific actions aimed at improving the quality of life of the community through, for example, the support of educational, health, cultural, recreational and sports activities. The CAP Group will, of course, continue to make a significant contribution to social progress on technical matters, including continuous innovation in mining and steel industry processes, as well as steel solutions for the development of the country’s infrastructure, housing and industry.

Finally, and, in what will be my last sustainability report as CAP’s Chairman of the Board, I wish to thank each and every person that has been involved with our beloved company, whether as worker, neighbor, supplier, client or investor contributing toward creating future and enabling the company to continue to decisively contribute to the growth of those countries and regions where we currently or once operated.