Risk Management and Compliance

Effective risk management is an essential part of our culture and strategy. The accurate and timely identification, assessment and management of key risks give us a clear understanding of the actions required to achieve our objectives.

Key elements of integrated risk management

• We recognise that risks are inherent to our business
  Only through adequate risk management can internal stakeholders be supported in making key decisions and implementing our strategy
  
  
• Exposure to risks must be consistent with our risk appetite
  The Board defines and regularly reviews the acceptable level of exposure to emerging and principal risks. Risks are aligned with our risk appetite, taking into consideration the balance between threats and opportunities
  
  
• We are all responsible for managing risks
  Each business activity carries out risk evaluations to ensure the sound identification, management, monitoring and reporting of risks that could impact the achievement of our goals
  
  
• Risk is analysed using a consistent framework
  Our risk management methodology is applied to all our operating companies, projects, exploration activities and support areas so that we have a comprehensive view of the uncertainties that could affect the achievement of our strategic goals. The framework is based on ISO 31000 and COSO ERM.¹
  
  
• We are committed to continuous improvement
  Lessons learned and best practices are incorporated into our procedures to protect and unlock value sustainably

Risk management

We are aware that not all risks can be completely eliminated and exposure to some risks is necessary in pursuit of our corporate objectives. Mining is, by its nature, a long-term business and as part of the key risks update and evaluation process we identify new or emerging risks which could impact the Company’s sustainability in the long run, even if there is limited information available at the time of the evaluation.

Any new or emerging identified risks that could impact long-term strategic objectives are included in the key risk analysis and are reviewed and monitored periodically by the Board. As new information based on research, expert analysis and internal investigations becomes available, suitable controls and action plans are defined and incorporated into the Company’s risk matrix.

We identify, assess and manage the risks critical to the Company’s success. Overseeing these risks benefits Antofagasta and protects our business, people and reputation. The risk management process provides reasonable assurance that the relevant risks are recognised and controlled, and the Company achieves its strategic objectives and creates value.

Because risks change and are periodically re-evaluated, the risk map shown here represents the position at a specific point in time and the changes that have taken place since 2019.

The Board carried out a robust assessment of the Company’s principal and emerging risks during the year, which are set out below with the related preventive and mitigation measures.

Compliance and internal controls

The way in which we achieve our objectives is crucial to the long-term sustainable development of the Company. We have zero tolerance for bribery and corruption, and we are committed to working with integrity and transparency. We comply with all applicable anti-corruption and anti-bribery legislation and ensure the necessary controls are in place to prevent any unethical behaviour

Code of Ethics

The Code of Ethics sets out Antofagasta’s commitment to undertaking business in a responsible and transparent manner.

The Code requires honesty, integrity and accountability from all employees and contractors and includes guidelines for identifying and managing potential conflicts of interest. It is the basis for the Compliance Model and supports the implementation of all other related activities.

For more information, please read the Code of Ethics (PDF)

Compliance model

Antofagasta’s Compliance Model applies to both employees and contractors. It is clearly defined and is communicated regularly through internal channels, as well as being available on our website.

All contracts include clauses relating to ethics, modern slavery and crime prevention to ensure contractors’ adherence to our Compliance Model.

We actively promote open communication with all our employees, contractors and local communities. This helps ensure that our corporate and value creation objectives are achieved in an ethical and honest way.

The Compliance Model is reviewed regularly, both internally and by third parties, and on matters relating to corruption it has been certified under Chilean anti-corruption legislation.

Crime Prevention

For more information, please read the Crime Prevention Manual (PDF)

^{1. The Committee of Sponsoring Organizations of the Treadway Commission Enterprise Risk Management framework}