Freeport McMoRan : ESG Report

	Voluntary Principles on Security and Human Rights
	2023 Annual Report to the Plenary
	June 2024
Table of Contents
Our Approach	2
A. Commitment to the Voluntary Principles	4
1.	Public Statement of Commitment or Endorsement of the Voluntary Principles,
Engagement in the Voluntary Principles Initiative and Transparency	4
2.	Examples of Promoting Awareness of the Voluntary Principles Throughout Our
Organization, Including Within the Value Chain	4
3.	Examples of Promoting and Advancing Implementation of the Voluntary Principles
Internationally	5
B. Policies, Procedures and Related Activities	6
4.	Relevant Policies, Procedures and Guidelines to Implement the Voluntary Principles	6
5.	Company Procedure to Conduct Security and Human Rights Risk Assessments, and
Integrate Findings	8
6.	Company Mechanism to Report Security-Related Incidents with Human Rights
Implications by Public/Private Security Forces Relating to the Company's Activities	10
7.	Company Procedure to Consider the Voluntary Principles in Entering into Relations with
Private Security Providers	10

8. Company Mechanism to Investigate and Remediate Security-Related Incidents with Human Rights Implications by Public/Private Security Forces Relating to the Company's

Activities	11
C. Country Implementation	11
Indonesia	11
Peru	18
D. Lessons or Issues from this Reporting Year, as well as Plans or Opportunities to Advance the
Voluntary Principles for the Organization	21

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Freeport-McMoRan Inc. (FCX or the Company) is dedicated to the recognition, respect and promotion of human rights wherever we do business. We are a leading international mining company with headquarters in Phoenix, Arizona. We operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. Our portfolio of assets includes PT Freeport Indonesia's (PT-FI) Grasberg minerals district in Indonesia (PT-FI Grasberg), one of the world's largest copper and gold deposits; and significant mining operations in North and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

This report summarizes the developments in our human rights programs as well as implementation activities, events and incidents that occurred during 2023, unless otherwise noted. Country-level implementation details are provided for Indonesia and Peru, as these countries represent our higher risk operating environments in terms of security and human rights.

Our Approach

Respect is a core value that guides how we do business. We are committed to respecting the rights of all people, including our employees, business partners, community members and others who potentially may be impacted by our business activities. We take this obligation seriously in all aspects of our business, and we expect the same of our business partners. FCX's Human Rights Policy states our commitments to respecting internationally recognized human rights standards, including the rights under the International Bill of Human Rights, and to implementing both the United Nations Guiding Principles on Business and Human Rights (UN Guiding Principles) and the Voluntary Principles on Security and Human Rights (Voluntary Principles). We work toward continuous improvement in establishing greater institutional awareness and deeper understanding of what human rights are and how they impact every role within FCX. Our Principles of Business Conduct (PBC) and other core policies

• including An -Corruption, Environmental, Inclusion and Diversity, Safety and Health, Social Performance, and Tailings Management― support the applica on of our Human Rights Policy. These policies and supporting management systems, along with relevant external standards and initiatives, guide our management of human rights.

We recognize that human rights are overarching and that they connect to every aspect of our business. As such, we aim to promote human rights through proactive engagement with host governments and communities and by educating stakeholders, including training our employees and contractors.

FCX was a founding member of the Voluntary Principles Initiative and has been an active participant since it was first established in 2000. The Voluntary Principles are an important cornerstone of our human rights and security program, providing guidance for our operations as well as a mechanism to drive engagement and promote awareness of and respect for human rights within our workforce and with our business partners, government and community partners.

As part of our UN Guiding Principles implementation, we continue advancing Human Rights Impact Assessments (HRIAs) at our operations and processing facilities. These assessments, conducted by third-

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party consultants, use comprehensive and dedicated HRIA methodologies that seek to identify and assess which human rights topics are most salient at the site-level so that we can manage and integrate these risks, including those related to security and human rights, into our ongoing operational work.

We continue to participate in multi-industry dialogues on respect for human rights through BSR's human rights working group. We also participate in and engage with the Corporate Human Rights Benchmark (CHRB), which assesses our performance related to a set of human rights indicators based on publicly available information, including our participation in the Voluntary Principles Initiative and implementation of the Voluntary Principles.

Human Rights Defenders. Violence against human rights defenders has become an issue of global concern. We respect the rights of all individuals who may be impacted by our business activities, engage with affected stakeholders in the development of our human rights approach, and prohibit harassment. We do not condone any form of threats, intimidation or violence against those who peacefully promote and defend human rights and we expect the same from our business partners. We recognize the value of an active and open society supported by the rule of law and believe it is important that our stakeholders are able to express their opinions in a safe manner without fear of reprisal or persecution.

Responsible Production Frameworks. FCX is a founding member of the International Council on Mining & Metals (ICMM). FCX's Chairman and former Chief Executive Officer, Richard Adkerson, served as Chair of ICMM from 2008 to 2011 and from 2020 to 2022. ICMM sets forth 39 performance expectations along with topic-specific position statements for ICMM members - including a commitment to supporting the implementation of the UN Guiding Principles and to implementing, based on risk, a human rights and security approach consistent with the Voluntary Principles.

In addition to our ICMM commitments, FCX has achieved, and is committed to maintaining, the Copper Mark and/or Molybdenum Mark at all of our operating sites globally. The Copper Mark is a comprehensive assurance framework that promotes responsible production practices. It is the first and only framework developed specifically for the copper industry. To achieve the Copper Mark, sites are committed to adhering to internationally recognized responsible operating practices and specifically to a detailed framework based on the Responsible Minerals Initiative's Risk Readiness Assessment. The Copper Mark requires an independent external assurance process, including external stakeholder interviews, to assess conformance at each site. Awarded sites are required to be revalidated by the Copper Mark every three years and communicate routinely with the organization on action plans to meet any "partially meets" criteria. The Copper Mark includes several human rights requirements, such as the UN Guiding Principles and the Voluntary Principles.

We translate our responsible production commitments (including those related to human rights and security) to everyday work through the use of our sustainability risk register process (risk register) which identifies, prioritizes, manages and tracks sustainability risks and actions at the corporate and site level. The risks included in the risk register are mapped to our external commitments, including ICMM's performance expectations and the Copper Mark's requirements.

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A. Commitment to the Voluntary Principles

1. Public Statement of Commitment or Endorsement of the Voluntary Principles, Engagement in the Voluntary Principles Initiative and Transparency

In 2000, FCX joined other extractive companies, governments and human rights organizations in endorsing the joint U.S. Department of State-British Foreign Office Voluntary Principles. Since that time, we have worked closely with our affiliate operations to assist in the implementation of the Voluntary Principles. Our endorsement of the Voluntary Principles is set forth within our Annual Reports on Sustainability and Annual Voluntary Principles Reports to the Plenary located on our website.

We have incorporated our commitment to the Voluntary Principles into our Human Rights Policy as well as our PBC. Our Human Rights Policy and PBC apply to all of our employees and our Board of Directors (Board). We expect our business partners, including suppliers, contractors, customers and recipients of charitable giving, to uphold and abide by the same standards, which are reflected in our Business Partner Code of Conduct.

In 2023, FCX participated in country-level Voluntary Principles activities in Indonesia and Peru (please see the country-level reports below in Part C). At the Voluntary Principles' Initiative-level, we attended the 2023 Voluntary Principles Plenary in London, United Kingdom. Throughout the year, we attended Corporate Pillar and Secretariat meetings.

Annually, we publish our Voluntary Principles Report to the Plenary on our website as part of our broader sustainability reporting and are committed to engaging with fellow Voluntary Principles members and observers to facilitate greater understanding of our Voluntary Principles implementation.

2. Examples of Promoting Awareness of the Voluntary Principles Throughout Our Organization, Including Within the Value Chain

FCX has incorporated standard language on human rights into our corporate contract templates. Business partners receive, and are expected to perform in accordance with, our Business Partner Code of Conduct. Our Business Partner Code of Conduct is based on our PBC and sets forth our expectations for business partners in areas such as safety, human rights, anti-corruption, community and environment.

We use a combination of tools to help gather critical data on business partners with regard to compliance, sustainability and other related risks, including human rights risks. We operate an online due diligence platform, the Freeport Compliance eXchange (FCeX). FCeX is a survey-based software platform designed to assess risk of our business partners in the areas of anti-corruption, international trade, human rights and responsible sourcing, and includes a number of sustainability-related questions. FCeX enhances our ability to identify, assess, and mitigate these compliance risks. The survey is given to new vendors as an initial step in our responsible sourcing due diligence and existing vendors are

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reevaluated periodically. FCX decides whether to enter into or continue contractual relationships based in part on responses to the survey.

El Abra. We have included information on our site-level Voluntary Principles implementation at our El Abra operation in this report. El Abra is an open-pit copper mining complex located 47 miles north of Calama in Chile's El Loa Province. We have identified a large sulfide resource that would support a potential major mill project. Technical and economic studies continue to be evaluated to determine the optimal scope and timing for the sulfide project. Capital cost requirements are being updated to reflect current market conditions. We are evaluating water infrastructure alternatives to provide options to extend existing operations and support a future expansion, while continuing to monitor Chile's regulatory and fiscal matters, as well as trends in capital costs for similar projects. In parallel, as part of the permitting process for the potential expansion, we are planning for a potential submission of an environmental impact statement during 2025, subject to ongoing stakeholder engagement and economic evaluations.

In 2023, the El Abra operation provided training on Human Rights and the Voluntary Principles to all of its security employees and private security contractor personnel. In addition, approximately 300 employees and contractors received training on our Human Rights, Social Performance and Environment policies through classroom and online training classes. Our Human Rights Policy is posted in various locations throughout the operation. El Abra employs one private security contractor company, which deploys unarmed personnel to assist with the protection of Company assets. Government security personnel are not directly assigned to the site.

For other examples of how we promote awareness of the Voluntary Principles in Indonesia and Peru, including with host governments and authorities, please see the country-level reports below in Part C.

3. Examples of Promoting and Advancing Implementation of the Voluntary Principles Internationally

We seek to proactively engage with financial and other stakeholders on security and human rights issues, including our implementation of the Voluntary Principles, and we also frequently engage stakeholders at their request. We continue to participate in BSR's human rights working group, which provides a forum for gaining insight from companies representing multiple industrial sectors on methods for integration of the UN Guiding Principles into our business practices.

For other examples of how we promote awareness and advance implementation of the Voluntary Principles in Indonesia and Peru, please see the country-level reports below in Part C.

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B. Policies, Procedures and Related Activities

4. Relevant Policies, Procedures and Guidelines to Implement the Voluntary Principles

Our Human Rights Policy, which incorporates the Voluntary Principles, outlines our dedication to the recognition, respect and promotion of human rights wherever we do business. We respect the rights of all individuals, including employees, suppliers, community members and other stakeholders who may be impacted by our business. The policy, first established in the late 1990s, was most recently updated in December 2020. We respect internationally recognized human rights, including the rights under the International Bill of Human Rights, and are committed to implementing the UN Guiding Principles, to educating employees about human rights, to maintaining grievance mechanisms to record and address human rights allegations and incidents, and to protecting anyone who reports suspected human rights violations. The policy also includes a commitment to not tolerating forced, compulsory or child labor; and human trafficking; and respecting the rights of our workforce by providing fair treatment and work conditions, including fair wages and working hours and right to freedom of association and collective bargaining. Moreover, the Voluntary Principles serve as guidelines for our security and human rights programs, including for interactions with host government police, military personnel and private security contractors. We condemn any form of threats, intimidation or violence against those who peacefully promote and defend human rights. Furthermore, we expect all suppliers of goods and services to operate in accordance with this policy. Please refer to our Human Rights Policy for more detail.

At the Board level, the Corporate Responsibility Committee (CRC) provides oversight of our human rights program. The CRC receives reports on, among other topics, relevant human rights strategy updates, human rights impact assessment (HRIA) results and actions, and significant incidents. The CRC reviews the effectiveness of FCX's strategies, programs and policy implementation with respect to human rights and other environmental, social and governance (ESG) related areas. During 2023, the CRC reviewed and recommended the Board approve our 2022 UK Modern Slavery Act Statement.

At the management level, the Sustainability Leadership Team (SLT) provides oversight of our human rights plans, and the program is directed and managed by our corporate and site-level sustainability teams. Our cross-functional SLT includes members of management tasked with defining our sustainability strategy and implementing our sustainability policies, systems and programs across the organization to achieve integrated decision making for responsible production and performance, including with respect to human rights.

The SLT is sponsored by our Chief Administrative Officer and is led by our Chief Sustainability Officer, with active participation from other members of the SLT, including our five business unit presidents and senior leadership from functional groups including health and safety, security, supply chain, human resources, sales, legal, compliance, sustainability and finance.

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In 2023, the SLT met nine times and members of the SLT regularly reported to executive leadership. In addition, members of the SLT regularly report to the relevant Board committees on key environmental and social matters and periodically report to the full Board.

Our cross-functional human rights working group refreshed its charter in 2023 to reflect our current needs as well as the evolving human rights landscape. The working group assists the SLT in overseeing FCX's Human Rights Policies, programs and related risks as well as in integrating respect for human rights across our business by setting and implementing our human rights strategy. It is sponsored by our Vice President and Chief Sustainability Officer and co-led by our regional human rights managers. Representatives from responsible production frameworks & sustainability, operations, health & safety, supply chain, human resources, inclusion and diversity, security, compliance, environment, social performance and Indigenous Peoples and product stewardship teams comprise the working group.

Our corporate human rights and corporate and site-level sustainability teams continue to collaborate across our operations on an ongoing basis, working to educate and inform the business of human rights risks and mitigation strategies. Our human rights team held regular meetings with higher-risk operating sites to discuss and address complex issues, enabling our operations to adapt quickly and keep respect for human rights at the forefront.

We conduct comprehensive annual training on FCX's employee code of conduct, the PBC, which incorporates our commitment to the Voluntary Principles and links to our Human Rights Policy. The PBC highlights our core values - Safety, Respect, Integrity, Excellence and Commitment - and provides guidance for the application of these values to our business, from top-level management to entry-level employees. It sets forth the global principles that our workforce must follow in all activities - from complying with laws, to avoiding conflicts of interest, to treating colleagues and stakeholders with dignity and respect, and developing positive relationships with local communities. All new employees receive training as part of the onboarding process, and refresher training on the PBC is provided annually.

We aim to promote awareness of our Human Rights Policy and the Voluntary Principles through a variety of mechanisms, including annual training through classroom and online training classes, distribution of pamphlets and other media for managers, and periodic training for non-managers on a rotating basis.

The Voluntary Principles serve as a key component of our broader human rights program, which includes implementation of the UN Guiding Principles. Not all human rights issues are security issues, and not all security issues are human rights issues; it is at the nexus of human rights and security where our implementation of the Voluntary Principles resides.

We voluntarily report our ESG performance, including our human rights performance, annually using established reporting standards. FCX's 2023 Annual Report on Sustainabilityhas been prepared in reference to the GRI Sustainability Report Standards (2021) and the G4 Mining and Metals Sector

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Supplement (2013) as well as in alignment with the International Financial Reporting Standards (IFRS) Foundation's SASB Standards for the Metals & Mining industry (2023).

Our annual reports on sustainability have been independently verified since 2005. Limited third-party assurance of our 2023 Annual Report on Sustainability was obtained from an independent public accounting firm. External reasonable-level assurance reviews occur at each of our active mining and metals processing operations every three years for purposes of maintaining the Copper Mark and/or Molybdenum Mark and confirming each site is upholding ICMM Performance Expectations. Certain of our larger mining operations also undergo limited-level assurance more frequently to support our disclosures and overall responsible production performance.

We are implementing the Corporate Pillar Verification Framework, which entails a process to verify that we are meeting our responsibilities as a Voluntary Principles Initiative member. As such, our Voluntary Principles reporting, is assessed for consistency with our annual external assurance process. A public assurance statement is located on page 118 of our 2023 Annual Report on Sustainability.

5. Company Procedure to Conduct Security and Human Rights Risk Assessments, and Integrate Findings

As we seek to further embed respect for human rights across our organizational activities, we use our risk register process at our operating sites to identify and address risks to people and their human rights as outlined in our human rights dashboard. Similar to our risk register process, our Project Development Sustainability Review (PDSR) integrates sustainability into project planning for our new or growth projects by helping teams identify risks and opportunities associated with expansions or development projects, including potential and actual impacts on rights-holders. This process is informed by ongoing internal and external stakeholder engagement, internal and external grievance mechanisms, and the findings from our ongoing HRIA program.

HRIAs, conducted by third-party consultants using methodologies aligned with the UN Guiding Principles, are our primary method for conducting human rights due diligence at our operations, including a sampling of our on-site contractors and local suppliers. These assessments involve direct input from a broad cross-section of internal and external rights-holders, and they support continuous improvement of our management systems by testing their effectiveness in identifying and addressing potential, actual and perceived human rights and security risks and impacts.

HUMAN RIGHTS IMPACT ASSESSMENT STATUS

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For updates on HRIAs completed or initiated in 2023, please see the country-level reports below in Part C.

In addition to HRIAs, our responsible sourcing programs require human rights due diligence on suppliers of both goods and services, and minerals and metals for further processing. The development of these programs is informed by our HRIA findings. In 2023, we advanced our approach to assessing supplier human rights and other sustainability-related risks.

We translate our responsible production commitments to everyday work through the use of our risk register, which identifies, prioritizes, manages and tracks sustainability risks and actions at the corporate-andsite-level. Defined in a global standard operating procedure, the process uses a risk assessment matrix to prioritize risks by both their likelihood and consequence, based on customized impact definitions by functional area to drive action. All our sites review risks at least annually and prepare detailed action plans for risks rated as actionable.

Sites use the risk register to identify risks and opportunities in relation to their operation and stakeholders. The risk register prioritizes risks that could have negative consequences to our business and our stakeholders in areas such as health and safety, human rights, security, environmental management, community development and economic impact. It also enables sites to identify and prioritize opportunities that could have positive consequences. Once the risks and opportunities are prioritized, action plans are developed. The risk register and these plans are the foundation of internal and external assurance processes at both the corporate level and operating sites.

Our risk register assists our teams to identify and prioritize the most significant risks to our business and our stakeholders. We work cross-functionally to implement our various commitments, and our risk register enables site-level management teams to focus on priorities while promoting globally consistent implementation across our operations.

As part of the internal risk review process, the PDSR considers sustainability issues during the evaluation, and implementation of, potential expansion and development projects. The PDSR process enables us to identify, prioritize and proactively manage potential risks before a project begins and throughout its development, including those relating to human rights and security. The process is applied during the early stages of mine expansion and project development, particularly during scoping, prefeasibility and feasibility stages so that risks may be adequately addressed early and continuously throughout. The process also supports preparation for future closure of operations. The process complements the risk register process and serves as a key input to the risk register once a project is operational, enhancing the integration of sustainability into decision making across FCX. One review was conducted in 2023.

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6. Company Mechanism to Report Security-Related Incidents with Human Rights Implications by Public/Private Security Forces Relating to the Company's Activities

FCX has established Human Rights Compliance Officer (HRCO) roles at PT-FI Grasberg and Cerro Verde where the operating environments are higher risk in terms of security and human rights. HRCOs lead training for security personnel (both employees and contractors) and host government security forces on human rights and the Voluntary Principles. HRCOs also receive, document and follow up formally and informally on reported human rights incidents, grievances and allegations, including those relating to the conduct of public and private security personnel. We actively communicate about the responsibilities of, and ways to contact, HRCOs to employees, business partners and community groups. All members of our workforce have access to the Compliance Line, a hotline managed by an independent third party that allows for anonymous reporting (refer to PBCpages 42-43 for additional information). The Compliance Line is also available to members of our supply chain via our Business Partner Code of Conduct(refer to page 15 for additional information). The Compliance Line is fully compliant with all applicable international data privacy regimes.

While all sites can utilize the Compliance Line for anonymous reporting, Cerro Verde and El Abra also have physical drop boxes for anonymous reporting. We have also incorporated human rights into our corporate community grievance management system, which is implemented at each site to collect community grievances including those potentially related to human rights and/or security. Site-level HRCOs report human rights incidents, grievances or allegations to site-level management, the corporate human rights team, as well as legal counsel as appropriate. Allegations related to public security providers are reported to the appropriate government institutions for investigation and, when appropriate, to urge action to prevent recurrence.

As outlined in our Human Rights Policy, FCX does not tolerate retaliation against anyone who raises a question or concern about our business practices or reports a human rights violation. When requested, we are committed to protecting the confidentiality of anyone who reports potential violations. Furthermore, use of our internal and external grievance mechanisms does not preclude access to judicial or other non-judicial grievance mechanisms.

For examples of how we implemented this reporting mechanism in Indonesia and Peru in 2023, please see the country-level reports below in Part C.

7. Company Procedure to Consider the Voluntary Principles in Entering into Relations with Private Security Providers

Contracts with private security providers in Indonesia, Peru and Chile include requirements to comply with our Human Rights Policy (and, by extension, the Voluntary Principles). Security contractors are required to comply with FCX's Human Rights Policy, including receiving human rights training and instructions to immediately notify the site-level HRCO of any human rights related incidents, grievances or allegations.

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