REPORT
2019
What inspires us?
Our purpose
To generate shared and sustainable value through the extraction and processing of mining resources, for the development of high quality products, goods and services.
CAP, always with Chile
Iron and steel for a better world
Iron ore gives rise to steel, which is present in all aspects of our daily lives. Iron and steel are essential materials in industry, mining, infrastructure, agriculture and energy, as well as in many household items.
Steel is the heart of the new green economy
CAP Group at a Glance
We are the leading producer of iron ore and pellets on the America Pacific coast, the largest steel producer in Chile, the most important steel processor and the third largest port operator in the country.
Our businesses
Iron Extraction
Compañía Minera del Pacífico, CMP
With operations in the Atacama and Coquimbo regions, it is the largest producer of ores on the American Pacific coast. It extracts and produces iron ore and pellets, which it exports to world markets.
Steel Processing
Grupo Cintac & Tubos Argentinos (TASA)
Leader in the manufacture and marketing of construction systems and a wide range of steel products for different productive sectors in Chile and Peru (CINTAC Group) and in Argentina (TASA).
Steel Production
Compañía Siderúrgica Huachipato, CSH
It’s the largest steel complex in the country. It is located in the regions of Biobío and Magallanes, supplying mining, industry, metal mechanics and construction companies with long steel products, among others.
Infrastructure
Aguas CAP, Puerto Las Losas and Tecnocap
The desalination plant (Aguas CAP) supplies this resource to CMP and other mining customers. Puerto Las Losas serves the CAP Group, the growing industry of the Atacama Region and international customers. Tecnocap supplies electric power to Aguas CAP, Puerto Punta Totoralillo and Cerro Negro Norte (CNN, for its acronym in Spanish) of CMP.
Location of our operations
Chairman’s vision
We are committed to continue advancing true to our principle of being “Always with Chile” and “Always with Latin America
From a social perspective, 2019 was a year that presented us with new challenges and, based on the discussions of the climate crisis and the social outburst, we feel called to reinforce our role as a company, offering opportunities for development and well-being for our employees, collaborators, customers and communities, with the aim of working together for shared and sustainable development.
From the economic point of view, we are preparing to return to the path of growth. Nevertheless, we are aware of the complex social, sanitary, political and economic context. In the case of our country, we hope that the legitimate social demands will be resolved with understanding, respect and dialogue, and that the sanitary emergency will be faced in the best possible way, with discipline and solidarity.
In this complex and challenging context, it is a great pleasure for me, as Chairman of the Board of Directors of the CAP Group, to present our twelfth Sustainability Report, prepared in a collaborative manner according to the guidelines of the Global Reporting Initiative (GRI) Standards, the Global Compact and the Sustainable Development Goals of the United Nations, organization to which we have adhered since 2008.
Rodolfo Krause
Chairman of the board of directors
CAP S.A.
Our transformation roadmap
Certainly, the year 2019 was full of challenges, but also of great learning.
The situations we faced led us as a company to a deep state of reflection, which drives us to redouble our commitment to occupational safety, the environment and the communities where we operate. Our commitment is to always act in a transparent manner and implement the use of the latest technology available, in the search for efficiency in each of our operations.
Over the last few years, at CAP we have been adapting to changes in regulations and society, understanding that they have advanced faster than the company has in some stages. That is why in 2019 we were challenged to begin an accelerated transformation process that will allow us to continue creating value and contributing to the development of Chile and the countries where we have a presence, in a context that demands new perspectives, ability to adapt, efficiency and teamwork.
Sustainability Management Model
Our Sustainability Strategy is a way to make CAP a sustainable business over time, growing the value for the company and promoting the potential of the places where we are located. This path to “Crear Valor Sostenible” (Create Sustainable Value) is based on two pillars. The first, flawless operation, materialized in sustainable practices and environmental responsibility. The second, environmental awareness, materialized in the delivery of social value to the territories where we have a presence and in the communication and commitment with the stakeholders.
Corporate governance, risk management and ethics
Sustainability Governance
In 2019 we established instances and mechanisms to coordinate and monitor the Strategy and the Sustainability Plan. The monitoring of the implementation of the strategy, as well as the approval of the resources, plans and corporate standards and the follow-up of the indicators, during the last year was in charge of the Corporate Sustainability Committee. It is composed of the Chairman of the Board of Directors of CAP S.A., the General Manager of the Group, the corporate managers and the managers of the operating companies, who meet every three months.
Our performance
We transformed the corporate governance of CAP S.A. and its operating companies.
We implemented the Integrity and Compliance Program, and launched the new Code of Integrity.
32
complaints to the Code of Integrity. Two were for discrimination.
CAP Integrity
CAP Integrity, the communication name of the Integrity and Compliance Program, is an intranet portal where employees can access the program’s documents and guidelines. Among them, the Integrity Code, Crime Prevention Manual, Short Guides, the guidelines related to the Compliance Program on Free Competition and a direct access to the Integrity Channel of
the company.
Diversity
During 2019, women were incorporated to lead the Sustainability and External Affairs, Compliance, and Ports management areas.
Crisis management
We have protocols in place for quick operational response in cases of crisis and unexpected incidents. During 2019 we updated the associated communications procedures to coordinate efforts and actions, especially in the generation of reliable, transparent and timely information for stakeholders.
Cybersecurity
In 2019 we created the position of Corporate Cybersecurity Officer, whose job is to identify gaps, provide guidance and support to the Group and its operating companies
Our people: Workers and Contractors
“The best company to attract and retain talent in its sector” was the recognition given to the CAP Group by Merco Talento.
Professional development, diversity and inclusion
Our scopes of action, with a strategic and collaborative look, advance in aligning more closely the management of people with the business. It is at this point that the initiatives related to talent management - which seek to ensure the attraction, retention, development and identification of critical talent for the Group -, take on great relevance. In 2020, we will make progress in different areas of human capital formation.
Social outburst and pandemic
As a result of the national contingency - the social outburst of October 2019 -, we implemented a support program for the workers in the corporate building, to which we have given continuity during 2020, given the pandemic. In addition, we reviewed the financial compensation of our workers and contractors, adjusting the levels of their compensation along with our contractors.
Occupational safety
Since May of last year, we have incorporated the reporting and review of safety indicators in all CAP’s Boards of Directors and defined a reporting system from operations, which we are constantly improving.
In parallel, we worked on the definition of corporate Critical Operational Risk (ROC, for its acronym in Spanish) standards, which aim at the implementation of measures that prevent or reduce severe or fatal accidents.
As a result of the above, in 2019 we recorded the best accident rate results, with the lowest Frequency Rate and Severity Rate in the last ten years. This is attributable to the visible leadership and commitment acquired and promoted by all the teams of the Group’s companies, confirming an enrichment of our internal culture in terms of safety.
Environmental responsibility
As part of the transformation we seek in our relation with the environment, for the years 2019 - 2020, we generated and implemented with all operating companies, an Action Plan that seeks to strengthen innovative and responsible management on environmental aspects and impacts, compliance with the applicable regulatory framework and natural resource management, with special emphasis on action for the climate, the circular economy and the careful use of water and energy. Likewise, convinced that people are the driving force behind the necessary changes, the Plan considered for 2019, the analysis of the existing operational structures and competencies related to environmental responsibility.
Responsible waste management
In the CAP Group we promote clean production, the reduction of waste generated and the practice of recycling, an effort which has been made through its “Cero Residuos” (“Zero Waste”) initiative. In Chile, the management of these is regulated by national regulations, and safeguarding its compliance has been a priority for us. In total, the Group’s companies recycled 93% of their waste in 2019.
Water and energy
For their part, in the care for water and energy, all operating companies have energy efficiency programs. In 2019, thanks to the achievement of ISO 50001 certification and the presentation of two successful energy-saving measures, Huachipato obtained the Gold Seal, the highest category of the Energy Efficiency Seal awarded by the Ministry of Energy.
Biodiversity
Care and respect for the environment includes concern for the flora and fauna and biodiversity in the surroundings of its operating companies. 47% of our operations (8 of 17) are located in fragile ecosystems. Thus, we put special emphasis on caring for our environments, including those protected sites due to their sensitivity or abundance of biodiversity; or those sites with high physical, cultural or biological uniqueness. For this purpose, we have special programs designed by the operating companies and approved by the corresponding authority.
Desalinated water
A contribution to the water crisis in Chile
CAP has a plant of this type that supplies desalinated water to all the mining operations of Compañía Minera del Pacifico in the Copiapó Valley, and also, through other mining customers in the area, makes it possible to comply with voluntary environmental commitments in Caldera and Tierra Amarilla. In this way, it collaborates to reduce water stress in the Atacama Region, in the north of Chile.
Working together with communities
During 2019 we developed a Social Management Strategy based on the installation of best practices, definition of corporate standards applicable according to the context of each operating company, collaborative work of different areas of the Company, community relations integrated into the business processes, generation of Alliances with external stakeholders and focused on the priorities of the company and the community. Our method is aligned with 3 pillars: social risks and impacts, relations and community development.
Community relations in operating companies
Ensuring that we work together with communities to achieve mutual success in the long term is the essence of our vision. That is why we are updating our strategy based on the following pillars (i) installing industry best practices, (ii) developing corporate standards applicable to each Business Unit (BU), (iii) collaborative work with other areas of the company, (iv) community relations integrated into business processes, and (v) generating alliances with external stakeholders.
System of claims, inquiries and suggestions
What is it?
A platform made up of several channels for members of a community or other stakeholders to express their concerns, inquiries and claims about actual actions or perceptions produced by us, whether in the Corporate, operating companies or projects.
What’s it for?
Alert and respond in a timely manner to claims and complaints from stakeholders about our activities. This is achieved through an efficient internal coordination process that ensures they are properly dealt with and channels a timely response.
Companies best at paying SMES
In 2019 CMP and CSH were recognized for their short payment period to SMEs providing goods and services. Both were ranked in the top three places in the ranking of the best payers to SMEs, prepared by the Chilean Commodities Exchange (BPC) and the Chilean Association of Entrepreneurs (Asech).
