SQM is currently one of the lithium producers with the smallest carbon footprints in the world. We aspire to be carbon neutral in all of our products by 2040, and in lithium, potassium chloride and iodine by 2030. Through this commitment, we seek to implement sustainable consumption and production mechanisms, while promoting the efficient use of resources and energy throughout our entire production chain, which helps optimize economic costs and reduce social and environmental impact. Key measures for climate action call us to take urgent action to combat climate change and its impacts.

By 2030, we aspire to be publicly associated with the world’s green industries and, thus, have advanced in pursuit of this transformation in sustainability by publishing a Sustainability, Ethics and Human Rights Policy. This policy is based on the UN Sustainable Development Goals (SDG), the Mining Principles from the International Council on Mining and Metals, ISO 14001 Environmental Management Systems, applicable standards from the International Finance Corporation (IFC) and the framework of “protection, respect and remedy” from the United Nations Guiding Principles on Business and Human Rights, among other standards. We have an Online Monitoring Plan for our operations in the Salar de Atacama, and are members of the United Nations Global Compact and subscribe to the Sustainable Development Goals (SDG). Our annual Sustainability Report follows the highest standards of ESG publication and is audited by independent experts. In 2020, S&P Dow Jones Indices selected SQM for both the DJSI Chile and the DJSI MILA Pacific Alliance indices. This marks a great accomplishment for the company that reflects our hard work to strengthen sustainability by publishing our annual Sustainability Report, which is prepared under the methodology and principles of the Global Reporting Initiative (GRI) and is externally assured. We also launched the Carbon Disclosure Project (CDP) assessment process. The CDP is an international, non-profit organization that helps companies and cities disclose the environmental impact related to greenhouse gases, water use and consumption and biodiversity. With this certification, we commit to identifying and addressing growing risks as well as finding new action opportunities to contribute to a sustainable industry. SQM is also moving forward on the process to become certified under the Initiative for Responsible Mining Assurance (IRMA) standard, which provides a framework for developing responsible processes in our value chain throughout the mining life cycle. In September 2020, we began the self-assessment process at the Salar de Atacama operations to determine the degree of alignment and design our work plan. With this certification, we seek to promote a shift in mining toward a focus on sustainable production processes that generate positive social and environmental impacts. SQM is making strides to implement standards and advance with certification processes such as: Responsible Care, Ecovadis, ISO 14001, the Chilean Standard on Gender Equality and Work/Family/Personal Life Balance (NCh 3262), the Huella Chile program and Ecoports.

At SQM, Sustainability is a core value that drives us to constantly take on new challenges and commitments that are aligned with the aspirations of neighboring communities, customers, employees and the diverse stakeholders with which we engage. In this spirit, we reduced Brine extraction by 20% in the Salar de Atacama as of November 2020. Committed to expanding and strengthening our environmental management, we will further reduce brine extraction to reach 50% by 2030. This aspiration aims to position SQM as a leader in sustainability because of its capacity to efficiently manage its natural resources, while caring for the environment through responsible consumption and production, with a proactive approach to the climate changes that are threatening our world.

We are committed to reducing consumption of continental water at all our operations, using 40% less by 2030 and 65% by 2040. In line with our Sustainability Plan, we aspire to guarantee sustainable consumption and production practices, incorporating viable solutions into our processes that not only boost productivity but promote a sustainable economic activity that respects the environment and efficiently uses key resources in order to develop both our operations and surrounding communities.