MATERIALITY

IN ORDER TO CONTEND WITH AN INCREASINGLY COMPETITIVE ENVIRONMENT, ENAEX MUST DEFINE WHICH ASPECTS OF THE BUSINESS ARE KEY TO CREATING ECONOMIC, SOCIAL AND ENVIRONMENTAL VALUE WHILE ENSURING IT MEETS STAKEHOLDER AND DEVELOPMENT NEEDS.

ENAEX MATERIALITY MATRIX

Social Factor

Environmental Factor

Business Factor

The Company’s Materiality Analysis, under Global Reporting Initiative (G4) guidelines, included evaluation of 26 material issues set forth in its strategic plan. These were issues evaluated by customers, suppliers, employees and communities and shareholders. The result is a materiality matrix that illustrates the aspects that are most important to the Company and its stakeholders.

OCCUPATIONAL SAFETY, HEALTH AND WELLBEING

At Enaex, the safety, health and wellbeing of the people who comprise the Company is directly related to sustainable and successful development and, as such, a fundamental priority. In terms of safety, the Company seeks to consistently reduce the number of lost time accidents at all subsidiaries over the years by reinforcing a preventative risk culture where self-care and protection of colleagues are paramount.

On the other hand, seeking to align this material issue with Sustainable Development Goal (SDG) 3 (3.8) and as part of a comprehensive occupational health program that Enaex will be implementing between 2018 and 2022, the Prillex America Plant conducted a massive influenza vaccination campaign for employees and members of the Mejillones community, reaching a total of 140 people in 2018.

ENAEX CONSOLIDATED SAFETY 1

2016 2017 2018 2019 Target
Fatalities
0
0
0
0
Frequency Rate*
0.42
0.43
0.34
0.29

1 2018 data includes 100% coverage of subsidiary revenue versus total Enaex S.A. revenue.
* No. of lost-time accidents x 200,000 / total hours worked.

COMMUNITY ENGAGEMENT – DUAL EDUCATION PROGRAM

For years the Company has prioritized initiatives that promote quality education both for employees and as a means of supporting local community development. In conjunction with Fundación Chile Dual, Enaex has implemented a dual education program where students from technical high schools in areas surrounding production plants can earn a technical specialization. The program enables them to expand classroom learning by acquiring work experience, thus facilitating access to quality employment in the future. This initiative also supports Enaex’s commitment to SDG 4 (4.4).

2016 2017 2018 2019 Target
No. of Students in Dual Education Program
24
35
32
>30

ENERGY AND CLIMATE CHANGE MANAGEMENT

Beginning in 2006, the Company set out to create a low-carbon ammonium nitrate product by implementing an intense greenhouse gas reduction program in the manufacturing process. The first ammonium nitrate plant began operating in 1982. Since then “Clean Development Mechanism“ and energy efficiency projects at the Prillex America plant have managed to decouple production increases over the years from greenhouse gas emissions. At 0.3 tons of CO2 equivalent per ton of ammonium nitrate produced, 90% less carbon is released into the atmosphere each year, thereby helping achieve the targets set forth in SDG 13 “Climate Action”.

2016 2017 2018 2019 Target
GHG Emissions Scope1+Scope2 * (Mton CO2eq)
270
282
211
≤200
Production of Ammonium Nitrate (Mton)
699
682
702
>700
Emissions Intensity Index for Production of Ammonium Nitrate (tonCO2eq./ton NA)
0.38
0.41
0.30
<0.30

* Calculated using GHG Protocol methodology. Verified by SGS Chile under ISO 14,064.