Empresas Copec's Corporate Magazine No. 107

empresas copec’s corporate magazine

No.107 august 2021

DIFFERENCES THAT BRING US TOGETHER

diversity: more than a number

a mobilizing purpose

the importance of collaboration

the role of business in shaping recovery and resiliency

the value of doing things right

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No.107 at empresas copec we promote diversity and inclusion with the conviction that only through multiple experiences, opinions and visions, dialogue can be enriched, better decisions can be made and value can be added to all stakeholders. these differences bring us together in a common purpose: to build a more sustainable world for all. august 2021 / no. 107

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different voices, the same longing

the role of business in shaping recovery and resiliency

a necessary complement

eduardo navarro, ceo of empresas copec, reflects on the demands that have been expressed globally, in which all sectors of society must be key players.

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børge brende, president of the world economic forum, discusses the role of companies in developing a more equitable and sustainable future.

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representatives of four generations of empresas copec and its subsidiaries discuss diversity in organizations.

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copec honors health care workers

a strong boost to the community

a mobilizing purpose

the subsidiary has delivered breakfasts to more than 50,000 people to express its gratitude for their commitment during the pandemic.

arauco’s grayling mill, one of the largest chilean investments in the united states, consolidates its position in the u.s. panel market.

copec defines its commitment to its stakeholders beyond business objectives.

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diversity: more than a number

the value of doing things right

empresas copec and its subsidiaries have implemented initiatives that promote diversity and inclusion as key elements for value creation.

caleta bay aims at a healthy and quality product, with an uncompromising commitment to sustainability.

arauco strives for a more sustainable planet

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the subsidiary seeks to contribute to the community through sports and to promote values and environmental awareness.

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the importance of collaboration

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after a challenging 2020 marked by the pandemic, the first half of 2021 brought good news for empresas copec’s business areas.

during this period, empresas copec and its subsidiaries have achieved major milestones in the area of sustainability and have received important awards.

months away from its 20th anniversary, the copec-uc foundation has become a benchmark for the virtuous link between business, university and government.

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— DIFFERENT VOICES, THE SAME LONGING Almost a year and a half into the health crisis, with huge economic and social consequences, some hopeful lights are beginning to appear.

At the same time, in various parts of the world, citizens have increasingly expressed their need for change, something that has also happened in our country. In different contexts, motivations and forms, but with common expectations of inclusive

_ in the photo: Eduardo Navarro CEO of Empresas Copec.

growth, better living conditions for all, and an increased commitment to the protection of the planet and its resources.

These are voices and demands that must be listened to with deep attention. Our ability to process our differences and channel them constructively will be an effective indicator of the maturity of society, its institutions and people, as well as its future. These are intense processes, where many times opinions or actions emerge that cause uneasiness. But it is the defined path to face these challenges.

No one can be left out in this effort. The private sector and entrepreneurship, with their natural optimism, must also be key players, with that force of change that seeks sustainable development, capable of adapting again and again to new and more complex scenarios, always based on trust and with confidence in making a better tomorrow.

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We hope that this is not naivety, but rather realism and a view to the long-term. The worstcase scenario is that this transforming energy, which is objectively expressed in society, is not adequately channeled and that, on the contrary, it implodes, with effects that put the historic moment we are living in at greater risk.

In the world, citizens’ trust in companies has been strengthened during this crisis, due to their involvement and capacity to respond to the new needs and expectations of society, to their agility for constantly transforming

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vaccine, something that would be key to strengthen the scientific relationship and the subsequent signing of the agreement between Sinovac Biotech and UC. The team already has four Chilean vaccine prototypes with promising advances, and is about to start the clinical stage in our country.

themselves and for managing the most dynamic social, technological, economic and cultural realities accelerated by the pandemic.

Because, despite all the difficulties, the human groups that make up companies have demonstrated the passion, commitment and flexibility necessary to continue collaborating, to deliver goods and services to people when they need them most, to keep the economy running and to contribute with concrete and innovative solutions to society’s most pressing problems.

At Empresas Copec we are taking on these challenges. We are proud, for example, to have bet on Chilean science, and we will continue to do so wherever we see talent and commitment to the development of solutions that Chile and the world demand. An example of this was the extraordinary contribution made by the Copec-UC Foundation to the scientific team of the Instituto Milenio UC, led by Dr. Alexis Kalergis, to contribute to the study and development of a Chilean Covid-19

We are convinced that companies need to promote science and technology, innovation and entrepreneurship. The commitment to talent and the articulation of innovation ecosystems in the private sector are creating powerful synergies, capable of producing goods and services aligned with the new realities. It is surprising to see how our different subsidiaries, in a short period, have contributed to promote innovative projects where sustainability plays a key role. An example is Copec, through its innovation platform WIND, with a venture capital arm in Silicon Valley, whose objective is to capture, scale and bring innovations that contribute to speed up the energy transition in Chile and the region. It is also the rationale behind the partnership between ARAUCO and Odd Industries, whose artificial intelligence platform is contributing to reforestation and forest management, the type of initiatives that could eventually slow and even reverse climate change. It is also the raison d’être of the Copec-UC Foundation, whose support for science, technology and innovation in the natural resources sector has had a significant impact on the development of young talent and industry.

THE DEEP CHANGES BEING EXPERIENCED IN CHILE AND THE WORLD ARE EQUALLY CHALLENGING STATES AND THEIR INSTITUTIONS, CIVIL SOCIETY AND ITS ORGANIZATIONS AND, OF COURSE, COMPANIES AND THEIR ECOSYSTEMS.

These synergies demonstrate how businessmen and new entrepreneurs can and should work together, as links in the same chain driving economic, social, environmental and human development in the 21st century. It is not a matter of rivalry, but of complementarity.

The way in which the private sector integrates with these forces of transformation is also key. Certainly, conviction, commitment to talent and financial support are necessary, but not sufficient. Dedication and commitment to people must be at the core of each of our relationships.

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to do so with dedication. Time and again, when called upon, the private sector has demonstrated, throughout history, its commitment to the great challenges.

And speaking of people and talents, today we require the confluence of all of them. Because understanding and addressing today’s increasingly urgent and complex challenges requires greater diversity. At stake is an important part of our ability to connect with society and create value for people, communities and the country. For this reason, in recent years, Empresas Copec has made great efforts to incorporate different points of view in each of its companies. This is the reason behind the strong promotion of female leadership in Terpel, Copec and Abastible. This is also the reason behind the necessary incorporation of more women, of independent members, and of directors with different professional experiences to the Boards of this parent company and its subsidiaries, from where the approval of a series of policies and inclusion committees is promoted. Of course, this is a path on which we still have a long way to go, but we are motivated by an integrating purpose, with a view to the future, where diversity plays a central role.

This diversity is also expressed in terms of age, because new generations have been incorporated into the work of our subsidiaries. They enable us to assimilate the transformations at the speed

BUSINESSMEN AND NEW ENTREPRENEURS CAN AND SHOULD WORK TOGETHER, AS LINKS IN THE SAME CHAIN DRIVING ECONOMIC, SOCIAL, ENVIRONMENTAL AND HUMAN DEVELOPMENT IN THE 21ST CENTURY. IT IS NOT A MATTER OF RIVALRY, BUT OF COMPLEMENTARITY.

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we need today. They are people who have renewed tools and are used to collaborative schemes where horizontality, agility and networking are key. This is a fundamental contribution, but complementary to the invaluable experience of their predecessors.

Thus, today in our companies we see the coexistence of generations, from babyboomers to centennials, in the search for a fusion of enthusiasm, creativity and wisdom, balancing diversity and governance, something so necessary for this new cycle.

As companies, we still have a lot of work to do in developing trust. We are committed to it each and every day and will continue

It has certainly been a time of learning. And today it is time to ratify that commitment. The deep changes being experienced in Chile and the world are equally challenging States and their institutions, civil society and its organizations and, of course, companies and their ecosystems. We must all contribute to the climate of understanding that is needed, and be able to adapt our social behavior according to the new circumstances.

Let us listen to all voices, let us recover fraternity, and let us do our best to be instrumental in the generation of a public debate capable of giving rise to a renewed sense for our society. They are different voices that share the same longing to build a more equitable, sustainable and resilient world for all.

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“BUSINESS CANNOT ACT ALONE. OUR GREATEST CHALLENGES CAN ONLY BE SOLVED WHEN BUSINESS AND GOVERNMENT WORK IN PARTNERSHIP.”

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THE ROLE OF BUSINESS IN SHAPING RECOVERY AND RESILIENCY

Regarding the road to an equitable recovery and a resilient future, Børge Brende, President of the World Economic Forum, says, “We need business to lead in advancing our common priorities, the public and private sectors to work hand in hand, and both communities to champion forward-looking innovation. These steps are key to accelerating the arrival of a post-Covid-19 era in the region and around the world.”

Børge Brende is president of the World Economic Forum. Previously he was the Norwegian minister of Foreign Affairs, minister of Trade and Industry, and minister of Environment. He was Member of Parliament for more than a decade, chairman of the UN Commission on Sustainable Development and board member of Statoil and the Norwegian School of Economics.

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We are at a moment that is at once trying and promising.

It has been over a year since the World Health Organization first declared COVID-19 a pandemic. The repercussions of the virus have been devastating for the world and for the region: seven of the 10 countries with the highest per-capita death rates from COVID-19 are in South America.

But amid the challenges there are hopeful signs. The largest vaccination campaign in human history is underway and we are seeing increased vaccine distribution across Latin America. The International Monetary Fund projects 6.0% global economic growth this year and a 4.6% for the region.

_ in the photo: Børge Brende President of the World Economic Forum.

Yet, it would be a mistake to think that though there is promise on the horizon, the job is done. The road toward an equitable recovery and a resilient future is still not paved—we need business to lead in advancing our common priorities, the public and private sectors to work hand in hand, and both communities to champion forward-looking innovation. These steps are key to accelerating the arrival of a post-Covid-19 era in the region and around the world.

For a long time, many people said, “the business of business is business”—the sole purpose of a company was to maximize profit. But we saw the toll this approach took in terms of environmental degradation and societal inequity.

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and governments all aligning. And the distribution of the vaccines is the product of stakeholders across the public and private sectors coordinating with each other.

It should therefore come as no surprise that stakeholder capitalism has strong public support. According to the 2021 Edelman Trust Barometer, 86% of respondents feel CEOs should speak out about societal challenges and 66% feel CEOs should take the lead in addressing them. These numbers are only expected to increase, as younger generations have high levels of social, ethical, and environmental engagement—and expect the same from the businesses they support.

But business cannot act alone. Our greatest challenges can only be solved when business and government work in partnership.

Thankfully, today we are seeing more and more businesses step up to address the challenges facing our societies and our planet by practicing stakeholder capitalism—an approach that accounts not only for the interests of shareholders but for the interests of employees, customers, and society at large. At the World Economic Forum’s Davos Agenda in January, over 60 business leaders committed to a set of stakeholder capitalism metrics. These metrics offer a set of universal, comparable disclosures that companies can report on, regardless of industry or region.

The momentum of companies adopting stakeholder capitalism is a signal that business is fast moving past the mindset in which there is a supposed inconsistency between sustainability and value creation. Indeed, quite the opposite is true. According to analysis by JUST Capital, companies that practice stakeholder capitalism generate 6.4% higher return on equity than those who do not, and have higher net and operating margins.

The last year has shown that multistakeholder coordination is not a luxury, it is a necessity. The miraculous speed at which vaccines have been developed is the result of research institutions, pharmaceutical companies,

The World Economic Forum is proud to serve as a leading platform for multistakeholder cooperation, including through the Regional Action Group for Latin America.

This group of CEOs, ministers, members of civil society and experts has convened regularly in virtual meetings since the start of the pandemic to drive action based on the region’s needs and priorities. It released a roadmap that calls for committing to fiscal stability, economic equity, and environmental sustainability as part of an approach to drive investment and growth in the region.

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Looking toward the long term, our health and resiliency depend on business and government continuing to drive innovation.

The COVID-19 pandemic hit a world already being transformed by the Fourth Industrial Revolution.

Our economies, businesses, and societies were becoming ever more technology-dependent, and the pandemic has only accelerated this trend. We must use the innovation ecosystems that we have built to unlock new opportunities.

At the Annual Meeting in 2020, the Forum launched UpLink in partnership with Salesforce and Deloitte. UpLink “crowdsources the SDGs” by serving as a digital platform that “challenges” entrepreneurs to help advance the Sustainable Development Goals.

Achieving these priorities is essential if we want to shape a healthier and more resilient future.

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6% GLOBAL ECONOMIC GROWTH

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4,6% REGIONAL ECONOMIC GROWTH

Stakeholder capitalism is an approach that takes into account the interests of shareholders, employees, customers, and society at large.

We see this commitment to innovation in Latin America, particularly when it comes to “ecopreneurship” in the Amazon Basin. The Trillion Trees challenge on UpLink is just one example of how stakeholders are working together to propose local, inclusive ways of preserving and restoring biodiversity and ecosystem functions of the forest while delivering social and economic benefits for local communities.

As we stand in the second half of what is hoped to be a brighter year, we must shape the economies and societies we want in place in both the near and longer term. The leadership of the private sector is critical in ensuring Latin America takes bold steps to realize a more equitable and sustainable future because business, by design, must be creative, energetic, and solution-oriented.

According to the 2021 Edelman Trust Barometer, CEOs:

These are the very ingredients we need to help shape a stronger tomorrow.

87%

66%

Should speak out about societal challenges

Should take the lead in addressing them

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MORE THAN 37 THOUSAND PEOPLE WORK AT EMPRESAS COPEC AND ITS SUBSIDIARIES, A TEAM CHARACTERIZED BY ITS DIVERSITY.

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A NECESSARY COMPLEMENT generational diversity:

Currently, four generations coexist in the Empresas Copec companies: Baby Boomers, Generation X, Generation Y (millennials) and the new Generation Z (centennials). Each of these is marked by different characteristics, experiences, values and expectations in the workplace.

In this context, we invited employees of various ages from Empresas Copec and its subsidiaries to a conversation to reflect on the challenge faced by organizations today in managing generational diversity; what each age group brings to the workplace; how they complement each other; what people expect from the companies in which they work, and the importance of diversity in promoting more sustainable companies.

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More than 37 thousand people work at Empresas Copec and its subsidiaries, a team characterized by its diversity in terms of age, gender, nationality, professions and experience. With regard to the generational factor, 25% are under 30 years old; 35% are between 30 and 40 years old; 24% are between 41 and 50 years old; 13% are between 51 and 60 years old; and 3% are over 60 years old.

In order to get to know the visions of such diverse generations, this new virtual discussion brought together representatives from each of them: José Odone, Vice Chairman of the Board of Directors of Abastible; Antonio Caram, Director of Raw Material Procurement Orizon; Angela Nattero, Head of Training at the Copec Academy; María José Lobos, Head of Internal Communications at ARAUCO, and Begoña Bilbao, Research Analyst at Empresas Copec. The meeting was moderated

by Francisca Riveros, Director of Communications Empresas Copec.

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— am i staying here?

There is much talk about the characteristics of the four generations that coexist in the world of work today: baby boomers (people from 56 to 75 years), generation X (people from 41 to 55), generation Y or millennials (people from 26 to 40 years) and the new generation Z or centennials (people from five to 25 years).

To begin this meeting, we asked each of the participants to define their age group.

According to José Odone, Vice Chairman of Abastible’s board of directors, who joined Empresas Copec Group 45 years ago, first at Copec and then at Abastible, what characterizes baby boomers is that “they benefit from job stability. They have a great commitment and loyalty to the company. They want to make their career within the company and not use it as a stepping stone to project themselves into other positions in other organizations. So much so that, in my day, the work environment motto was: ‘If you are happy at work, you are happy in your life.’”

Antonio Caram, Director of Raw Material Procurement Orizon, who belongs to this same generation and who in his 42-year professional career has only had two employers, agrees with José Odone on the importance that baby boomers give to job stability. He says that this is mainly explained by the situation of the country when he graduated from University in 1979.

“Chile at that time had a much lower per capita income than the current level, that is, we had to solve more basic needs. Added to this is the fact that at that time family groups were much

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market. “I remember my mother telling me and my two sisters that we had to study for a university degree so that we would never depend on our husbands. This marked me a lot in the sense that we had to have a profession, we had to study and be independent.”

larger. I have five children, so in my case, it was more difficult to venture a change of job at any time, because with five, with four, with seven children, the room one has to explore other alternatives is much more limited. The new generations are different, since I see that my children, for example, do not plan to have a large family.”

Angela Nattero, Head of Training at the Copec Academy, says that her generation, generation X, was marked by the entry of women into the labor

María José Lobos, Head of Internal Communications at ARAUCO, says that millennials “have a little bit of everything, because we do make a commitment to the company, unlike what many people think. We really like teamwork, immediate feedback, we adapt easily and we have been getting used to technology, although we were not born with it, as is the case with centennials. As for job stability, I would say that we are at a time when many are already married, many have children, and so one is looking for a little security, but, to be honest, one is always looking at the market

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and what it can offer. There comes a time when you have to put things in the balance and think about whether you want stability because you are starting a family or whether you can still afford to change jobs. But I would say that unlike what happens with previous generations, of saying ‘here we stay’, I would say no, it is not the millennial’s premise.”

Angela Nattero has a different view. She says that when she arrived at Copec at the age of 27, she knew immediately that this was the place where she wanted to stay. “When I came in, I looked around, the Agustinas building had just been remodeled, so it was very nice, and I said: ‘I want to stay here. That was the feeling I had at that moment. I loved the environment, the people...

I was projecting where I really wanted to settle down in the workplace. That doesn’t exist today in the new generations.”

The youngest of the participants, Begoña Bilbao, Research Analyst at Empresas Copec, defines centennials as “a generation that comes with many causes already won or evolved, such as, for example, advances in gender equality and in overcoming poverty in Chile, among others. We are a generation that arrived to a world with many things already solved in the technological sense as well.

In addition, I emphasize that we are used to a very changing context and, at the same time, that work is also dynamic.”

FOUR DIFFERENT GENERATIONS CURRENTLY COEXIST IN THE WORLD OF WORK WITHIN EMPRESAS COPEC AND ITS SUBSIDIARIES: BABY BOOMERS, GENERATION X, MILLENNIALS AND CENTENNIALS.

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a process in which more and more open spaces were created to promote communication and collaboration among the teams. I believe that the relationship between people has changed a lot within the company, in the way you know and communicate with your colleagues, how you listen to them and how you respect them in their spaces.”

+37,000

Antonio Caram shares the case of Orizon: “There has been a super-accelerated evolution. Since the People area was created, it has been declaring and managing various remuneration policies, climate management, performance management systems, among others. A series of issues that were not previously our focus, which was more on the business and economic results.

And, since the People area was created, other areas have followed, including Communications People work at Empresas Copec and its subsidiaries, a diverse team in terms of age, gender, nationality, professions and experience.

and Sustainability, which are doing a very important job in linking us with our environment and projecting the company into the future.”

— shared purpose The participants, mainly those of the more experienced generations, highlight the evolution that companies have undergone since they entered the labor market.

Angela Nattero says that the change has been striking. “When I arrived at Copec, 24 years ago, there were closed offices with doors. I was in a cubicle with very high panels and I had to stand up high to know if someone was passing by me. Little by little I went through

25%

35%

24%

16%

PEOPLE UNDER 30 YEARS OLD

PEOPLE BETWEEN 30 AND 40 YEARS OLD

PEOPLE BETWEEN 41 AND 50 YEARS OLD

PEOPLE BETWEEN 51 AND 60 YEARS OLD

José Odone says: “I believe that the conviction of the social role of companies has grown. For example, within Abastible’s sustainability policy, it is not only important to be a recognized brand that is close to people, but also to participate in the solution of their real problems. And to be recognized for its social seal, through various solidarity actions.

Certainly, there has been a very interesting evolution in this sense, to participate directly in social action beyond service.”

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Angela Nattero adds: “Today in Copec there is a strategic installation of a purpose and a performance review that has to do with values, that is, with transversal skills that we should all have, such as concern for people, for example. This is very much in line with what a company should be today, with the social role it should play today and how it impacts communities. This is highly relevant in the current context and for the future. Organizations that do not follow this path will be lost. Today, the company looks beyond the value it delivers to shareholders, today it looks at how it adds value to the communities around it.”

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work in an organization that is not, and neither would he work in a place that says it is, but does not really believe it. In fact, there are all these concepts like purple washing, rainbow washing, green washing, which have to do with companies that seem green or inclusive, but really aren’t.

And we realize that.”

María José Lobos adds: “It is important to be consistent in our language, because today we are reaching another audience: the employees’ families.

Until before the pandemic, when you came home from work you might have commented on a couple of things at home and that was all, but now, with teleworking, it is different, since your child, your partner or any member of your family could hear what is happening in meetings or, in general, in your work environment. So, consistency between what you say and what you do must be even stronger. Finally, workers become ambassadors of brands by themselves, because they realize that they are transmitting something that is true, that they live daily.”

José Odone adds: “It is true. It has to be a shared purpose within the organization, and everything has to emanate from the people and the areas, that is, there must be a complete conviction of what is being done.”

María José Lobos adds, “At ARAUCO we became certified as carbon neutral a little over a year ago and, obviously, these commitments that the company takes on are emerging in response to a global challenge, but at the same time you realize that they are also requirements that the new generations demand from you.

Issues such as labor flexibility, working in a greener company, having a social role. And I

think that, finally, the most important thing is that when the company makes these commitments, it does so because it believes that it adds value, not as a PR issue, but because of why we do things.”

Begoña Bilbao agrees on this point: “The younger generations have expectations that any commitment from a company to the outside must also be internal. A centennial who says he is committed to the environment would not

DIVERSITY IN TERMS OF AGE, GENDER, NATIONALITY, PROFESSIONS AND EXPERIENCE ADDS VALUE TO COMPANIES.

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— immigrants and digital natives Millennials, X generation and baby boomers are classified as digital immigrants, i.e., they have had to adapt to the use of new technologies. Centennials, on the other hand, are digital natives, that is, they have grown up with technology, so they have skills and a greater intuition for the use of digital devices and tools.

Begoña Bilbao says that her age group, being digital natives, is also the generation of immediacy. “We want everything now and we want everything fast. You can see it from the big change in social networks, where Facebook was replaced by TikTok, with videos of maximum one minute. But in my case if the video is one minute long, I fast forward it to the end, because I don’t want to watch a full minute video either.”

Antonio Caram says: “In general, the younger generations have much more skills and ease in the use of technology than I do. But even so, we have been able to adapt, for example, to teleworking without any problems.

José Odone adds: “In my case, naturally, it has been a significant change. We have been using many technological tools for a long time, but hyper-connection like the one we have today is something new, which at first cost me a little. But you learn.

16 _ And the great advantage is that, if you have a doubt, you turn to the Internet and clarify it.

In other words, you become self-taught and I consider that a positive thing. If there is a beneficial attribute of the pandemic, it is that it has incorporated us more in technology and communication. Because whether through WhatsApp, email, etc., in the end we are writing more than we did before, and that has brought us closer, regardless of the physical distance.”

As an anecdote, Begoña Bilbao says: “A couple of weeks ago I was talking to one of my coworkers and he told me that when he had a doubt about a certain subject, he called such

and such a person. So, I said to him: ‘You were calling, but how, did you have his cell phone? I found it strange, a bit invasive. And he says to me: ‘No, in the office I was calling from the landline to his landline’. And I said to him: ‘What?

Of course, since I started working at Empresas Copec, a little over a year ago, I have only worked online, and I just found out that everyone has a landline phone and they call each other through extensions. In other words, landlines no longer existed for me. I talk to people via e-mail, Teams, etc.

I’m impressed that there are still landlines in the office, it’s something completely new to me.”

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ALL PARTICIPANTS SAY THAT DIFFERENT GENERATIONS ADD UP AND CONTRIBUTE EACH WITH THEIR VIRTUES AND EXPERIENCES. IN OTHER WORDS, THEY ARE COMPLEMENTARY.

— enriching differences All the participants say that different generations add up and contribute each one with their virtues and experiences. In other words, they are complementary.

According to Angela Nattero, “diversity will always contribute and enrich you. It allows you to be empathetic, to understand and answer many questions. For example, when you see the younger generations adapting so quickly to

Begoña Bilbao adds: “I think María José touches on a very important point, which is patience and respect for the processes that already exist. As a centennial, you arrive and see a process that is done in a certain way and you think of a different way of doing it and you want to change it without giving it much more thought. But we forget that behind a decision taken there is a whole process behind it, which has its reasons. So, the older generations are like a grounding cable for the younger ones, who tend to be more impulsive.” change, without fear, you realize that you can do it too. So, you follow them. And, on the other hand, the bond, the value you give to your work, the respect you have for your company, as in the case of generation X and baby boomers, is also transferred.

And so, we understand each other and we contribute to each other. If, on the other hand, we were all separated, we would learn absolutely nothing and we would believe that life is only one way. So, I think that difference is exquisite.”

María José Lobos agrees: “Although we younger generations are able to adapt more quickly, it also has its disadvantage, because you have to be patient and tolerant, since you can’t expect everyone to walk at your pace. So, it is in that synergy and in how different we are that something enriching is achieved for the work that you do at work.”

Another point of complementarity highlighted by the participants is the experience that the older generations pass on to the younger ones. In this regard, Antonio Caram says: “I am very pleased when younger people call me on the phone or come to my office and ask me what I think about a certain topic. It is satisfying for me, because to some extent I can pass on to them what I have experienced in 42 years of work.”

Begoña Bilbao agrees: “Those who have been working longer obviously know more things. They have a battery of knowledge and resources that you don’t have, because for me, if I don’t know something or have a question, my first reflex is to google it, and if I don’t find it on the first page

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of Google, I say: ‘Ok, it doesn’t exist, there’s no way to get this information’. But if you ask someone with more experience, they give you a lot of different resources for information, like talking to other people who are experts on the subject, for example.”

On this subject, José Odone recalls a story he experienced in the second half of the 1990s at Abastible. “At that time, a system of posts was used to distribute the gas orders received at the telephone exchange. That is to say, they were noted down, distributed by sector and taken to third-party warehouses in the different districts

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of Santiago. And then the delivery truck would pick up these orders and deliver them.

Naturally, in this way it was very difficult to deliver an order during the day, so it was usually done the following day. But the commercial area told us that we had to differentiate

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ourselves, improve and set ourselves the goal of delivering the orders within two hours and in no more than four hours.

A difficult challenge. And then a young innovator of the time came along and said, ‘Look, I’ve heard of something called wireless data communication,’ which was still in its early stage. And it was thanks to this technology that we were able to transmit telephone orders to a receiving device that we had to import and that allowed us to achieve our goal. This shows us that every day we are complementing ourselves between tradition and history, which are necessary to avoid repeating mistakes, and permanent innovation. The world has always innovated, but at different speeds. In the past it was slower and today it is faster, but it has always been innovating and, therefore, that there is this diversity in the company, between history and innovation, is really remarkable and necessary.”

Antonio Caram concludes: “At Orizon, the coexistence between different generations flows naturally, there are no differences and we treat each other as equals. I believe that the younger people contribute a lot in various aspects and enrich us. In addition, many women have joined the team, as well as people of different nationalities. So good for diversity, I think it only adds value.”

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why is diversity important in an organization?

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“The world we live in today is diverse, so companies have to adapt to it and bring out all the good in that diversity. It is very difficult for a company to prevail over time if it does not adapt and embrace this diversity.” antonio caram Director of Raw Material Procurement Orizon.

“The company must reflect the diversity in society and must represent all its stakeholders, because only in this way will it be able to empathize and understand how the different actors behave and understand the environment. Only from diversity and from different points of view and opinions can the best conclusions be drawn.”

“Mainly it has to do with the culture of learning: meeting, sharing, understanding, listening to diverse people from different realities, histories and opinions. I think it enriches the learning of each one of us and gives value to what we do.” angela nattero Head of Training at the Copec Academy.

begoña bilbao Research Analyst at Empresas Copec.

“Diversity represents an indispensable complementarity for the development of companies and for the good management of each of the major challenges they face.

Therefore, long live diversity, long live complementarity between one and the other.” josé odone Vice Chairman of the Board of Directors of Abastible.

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“To advance in diversity there are three key concepts: tolerance, humility and patience. I believe that to the extent that we realize that this difference is what will add value, things will work out well, but we have to keep an open mind, be humble, be tolerant, and realize that this is what truly adds value.” maría josé lobos Head of Internal Communications at ARAUCO.

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COPEC HONORS HEALTH CARE WORKERS

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From April to date, the subsidiary has delivered breakfasts to more than 50,000 workers in the hospitals with the greatest coverage throughout the country, as a gesture of gratitude for their vocation and great commitment in this pandemic, since they have cared for the health of the inhabitants of Chile for almost a year and a half in a challenging health scenario.

This solidarity action is part of the “Copec al Servicio de Chile” program, which has been implemented by the subsidiary since the beginning of the pandemic, to contribute to the solution of the sanitary crisis in the areas of health, food, heating and research, among others. In 2020, they donated fuel for all SAMU ambulances; they set up areas for taking PCR test samples “without getting out of the car” at service stations, and gave kerosene to 2,000 elderly heads of household in La Pintana, an initiative they are carrying out again this year.

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The subsidiary has provided breakfast/ snacks to more than 50,000 hospital workers throughout the country.

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arauco north america grayling mill:

A STRONG BOOST TO THE COMMUNITY THE GRAYLING MILL, ONE OF THE LARGEST CHILEAN INVESTMENTS IN NORTH AMERICA, EMPLOYS ABOUT 240 PEOPLE ON A PERMANENT BASIS

Located in the north-central U.S. state of Michigan, ARAUCO North America’s Grayling panel mill has now been in operation for two years, supplying the entire Midwest.

A journey that began as a dream in the middle of the last decade, and has faced such serious challenges as the Covid-19 pandemic. This, however, has not been an obstacle to achieving high production standards, worker safety and customer service, in addition to generating employment in an area that suffered a severe economic crisis.

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A couple of hours from the Canadian border is the town of Grayling, in the state of Michigan, United States.

With a little less than two thousand people, it is located in the middle of three of the five great lakes of the North American continent, Michigan to the west, Huron to the east and Superior to the north. This green area, a “paradise” for lovers of outdoors, four hours from Detroit, is the location of the namesake mill, owned by ARAUCO North America, a subsidiary of Empresas Copec.

With an initial investment of US$ 450 million, the continent’s most modern

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chipboard mill came on line in April 2019 in an area of about 76 thousand square meters.

Currently, the Grayling mill employs about 240 people on a permanent basis, boosting communities that faced the strong financial crisis of 2008, which peaked when Detroit filed for bankruptcy in 2013.

Why Grayling and not another area of the United States? Although the territory’s climate —with wide temperature variations ranging from 20 °Celsius in summer to easily -20 °Celsius in winter— faces significant operational challenges, the fact is that a vast share of its target market is located within a radius of 800 to 1,000 km. Russ Jordan, Vice President of Sales and Marketing at ARAUCO North America, explains this from Atlanta, where the subsidiary’s headquarters are located. He adds that this is compounded by the fact that this location is in a perimeter that has adequate raw materials:

_ in the photo: Mike Luepkes Vice President of Operations at ARAUCO North America.

23 _ “We believe we can have a competitive advantage in the long term, because logistics is becoming increasingly challenging, and our type of product doesn’t travel well over long distances, because we don’t sell cell phones, we make wood products, for construction and furniture components and nautical elements. We saw it as a good opportunity.”

The executive also adds, as a determining factor, the fact that ARAUCO seeks to be a significant part of the communities in which it is inserted. Support from the authorities of the state of Michigan was very important, as well as the community of Grayling, who welcomed with enthusiasm and gratitude the economic boost that the mill would bring to the people. “It is exciting to see ARAUCO put down roots in northern Michigan and be part of the development of our state. Michigan offers talent and a good economic climate for an employer of this size to be successful. We greatly value the investment and recognize the impact it will have for decades to come in the community,” said former Governor Rick Snyder in 2017, during the ceremony marking the groundbreaking of the mills’ construction.

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is used, while the rest is pine or softwood varieties. In addition, a mixture of wood waste from sawmills is used, which makes the process more sustainable, since these would otherwise end up being discarded. In a covered area of 7.6 hectares, there is a continuous line for the production of chipboard and two other presses for melamine boards.”

Grayling has been one of the largest Chilean investments in North America, with direct and positive effects for the end consumer: “Today we manufacture products that have

24 _

— making the most of technology Grayling was the first major investment in 15 years seen by the North American wood panel industry. The outcome was a modern unit that came not only to bring employment to the area, but also to shore up the North American Midwest market, including the states of Michigan, Ohio, Indiana, Illinois and Wisconsin, as well as the province of Ontario in Canada. “It was a great deal, and we worked with suppliers and also with ARAUCO’s global team to maintain our leadership as the largest panel producer in North America,” says Russ Jordan.

Mike Luepkes, Vice President of Operations at ARAUCO North America, illustrates this point by noting that “the mill was designed to produce 800,000 cubic meters of panels. A third of them are laminated with melamine paper. In terms of inputs, 40% hardwood, including oak,

lower density and are better in terms of physical properties than they would be with older technology, so variations from unit to unit are much smaller. Today we can literally meet the needs of the market with less wood and glue, which is good for the environment and for our customers,” says Mike Luepkes.

This achievement, however, is not only explained by technical developments, but also by ARAUCO’s global know-how and the experience of its employees. “Technology is available to everyone. It’s really about

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the commitment and engagement of our people that sets us apart from the competition. Anyone can have the newest equipment, but being able to leverage that technology and create products with value comes from a work group that is 100% committed to customer satisfaction. That’s one of the things we’re most proud of at ARAUCO: that our team, at every level, understands that we work, first and foremost, for our families and for our customers,” says Luepkes, a view that is also shared by Jordan: “We take this very seriously, we try to live up to this ethos. We can have the most modern equipment in the world, but it’s really about people. They are the number one priority.”

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MICHIGAN GRAYLING MILL EE.UU.

— the dream of the “panel city” “It takes years for a mill of this size and scale to spread its wings and reach full maturity,” says Russ Jordan. Even so, in the two years it has been operating, it has already made its mark on the market. The executive, who has been with the company since 2005, where he now leads sales, distribution and marketing efforts for the United States and Canada, points out that boards manufactured there have the characteristic that they are highly versatile, thus meeting the requirements of a very broad customer base. In addition, they behave well with household tools used by consumers, who can then convert them into various components for furniture

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manufacturing: “Our product is considered today to be the best performing in the market. You want to create a board that is as light as possible with all the necessary physical properties, and Grayling has made it possible.”

It should also be considered that much of the factory’s start-up has been under pandemic conditions. Mike Luepkes says that the arrival of the coronavirus brought them out of their silos and got them all thinking and sharing ideas about how to take care of families, employees and the business. “What did the pandemic do for ARAUCO North America? I think it made us stronger, it showed us the power we knew people had, bringing out the best in them,” he says from Sault Ste. Marie, Ontario, Canada, where he oversees MDF/HDF (medium and highdensity boards) manufacturing, technical support teams and leads continuous improvement

2019

US$450 MILL.

START OF OPERATIONS

INITIAL INVESTMENT

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Employees work in Grayling on a permanent basis.

240

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initiatives for ARAUCO’s operations. The Vice President of Sales and Marketing, for his part, adds that customers have always told them that they were able to arrive on time and on budget, even in the most challenging times.

Another positive aspect for ARAUCO North America that can be highlighted in these times of pandemic is that demand for panels in the United States has increased. This is mainly explained by two factors: a boom in home remodeling and real estate construction, much of it

related to new developments in satellite cities and away from traditional urban centers, a product of remote working, a new lifestyle that will mark a substantial improvement in people’s well-being.

Covid-19 or no Covid-19, the dreams Russ Jordan and Mike Luepkes have aim to ensure they stay in the community

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for many years to come. “I would love to see what I would call ‘panel city’ built around the mill,” Jordan says, envisioning a future in which a range of economic activities develop in the area.

“It would be great for me to see in 10 more years a lot of home furnishings manufacturers, offices, or more facilities being built around it and, in that way, expanding the business of the community.”

For now, this year, while continuing to increase production, they are focused on expanding the product mix and continuing to add value, deepening the work that has been done with melamine panels.

From an operational standpoint, Mike Luepkes has three main objectives. First, to continue to focus on strengthening employee safety: “I want Grayling to be known not only as the most technologically advanced or the one that produces the highest quality boards in the world, but to become the safest facility in the world.

Secondly, to increase customer satisfaction on a daily basis, which implies being able to meet their demands in a timely manner. Finally, the Vice President of Operations cites cost control as the third focus. “We have to be able to manufacture products that not only provide value to our customers, but also to our shareholders, so we are very focused on managing our cost structure to reach both target audiences.

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DURING THE PANDEMIC, A BOOM IN HOME REMODELING AND REAL ESTATE CONSTRUCTION, BOOSTED DEMAND OF PANELS IN THE UNITED STATES. 26 _

_ in the photo: Russ Jordan Vice President of Sales and Marketing at ARAUCO North America

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A MOBILIZING PURPOSE

copec:

A PURPOSE-DRIVEN COMPANY HAS A DEEP COMMITMENT, BEYOND BUSINESS OBJECTIVES, TO MAKING A POSITIVE IMPACT ON THE QUALITY OF LIFE OF PEOPLE AND SOCIETY.

During 2020 and in the midst of the pandemic, the subsidiary Copec decided to start a process to formalize its corporate purpose, considering the future projections of the energy industry, as well as the needs of people and communities.

“We exist to empower the development and movement of people, companies and the country,” is the purpose defined by the subsidiary. It is part of its DNA and gives a deep, inspiring and mobilizing sense to the work of the entire team.

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a transcendent meaning, that is, it is a deep answer to why a company exists.

The concept of corporate purpose is directly linked to the evolution that companies have undergone in recent decades. In simple terms, purpose is the reason for an organization’s existence. A purpose-driven company has a deep commitment, beyond business objectives, to making a positive impact on the quality of life of people and society.

Thus, the purpose is a binding concept that takes into account the needs of different stakeholders: communities, employees, customers and shareholders, among others.

It is also capable of uniting a diverse group of people around a common goal, providing strategic clarity, mobilizing innovation, inspiring change and giving meaning to the daily efforts of each of the people who work in the company.

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Purpose is not equivalent to corporate vision or mission, because while the former refers to long-term challenges, to what an organization wants to achieve in the future, the latter is related to the what and how of corporate action. The purpose, on the other hand, points to a search for

Communities, employees, customers, shareholders, etc.

MISSION

What and how of corporate action.

VISION

Long-term challenges of an organization.

PURPOSE

Binding concept, which takes into account the needs of the various stakeholders.

COPEC’S CORPORATE PURPOSE IS PART OF THE COMPANY’S DNA AND INSPIRES, ON A DAILY BASIS, THE ENTIRE TEAM.

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— towards building copec’s purpose In a scenario first marked by the social crisis of 2019 and then by the pandemic, where expectations about the role of companies have broadened and deepened, the corporate purpose publicly assumed by Copec emerges as an essential tool for management in all its areas.

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_ in the photo: Arturo Natho CEO of Copec.

Thus, in 2020 and in the midst of the health crisis, the subsidiary decided to define its purpose, a process that took several months.

Copec’s corporate purpose is part of the company’s DNA and inspires the entire team on a daily basis.

“Our challenge is to project and strengthen Copec’s current leadership, expanding its value beyond its original territory. Because we are more than energy. We are part of the mobility and life in motion of people and society. Our purpose is also the challenge of making explicit and committing ourselves clearly to our reason for existing, to what mobilizes us and allows us to be a

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company with a significant social role. Copec is for everyone and exists for everyone, for every person that moves, every company that grows and every milestone that pushes the country forward,” said Arturo Natho, Copec’s CEO, during the launch of the purpose.

During this meeting, which took place in January of this year and brought together virtually more than 800 of the company’s employees, the subsidiary made its purpose known in an inspiring day of dialogue and reflection. A significant definition, where there was the opportunity to participate, give opinions and deliver visions. A purpose that was widely shared and recognized by the team.

Today, Copec’s purpose is an essential guide for the company’s current and future challenges.

Declaring and formalizing it is only the first stage of this process. The challenge, for each of the people who make up the team, is to live it day by day.

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copec’s voices THE PURPOSE AIMS AT A SEARCH FOR A POSITIVE IMPACT ON THE QUALITY OF LIFE OF PEOPLE AND SOCIETY. THE PURPOSE POINTS TO A SEARCH FOR A TRANSCENDENT MEANING, THAT IS, IT IS A DEEP ANSWER TO WHY A COMPANY EXISTS.

“I am happy working at Copec. I think it was the best decision of my life to join Copec... And it excites me, because it has been my whole life. Thanks to Copec I am happy, I have my beautiful family, my grandson, my children who are fulfilled and I have achieved a lot of things. All thanks to the company.” luis hernández Reception Assistant, Isidora Building.

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“When people ask which companies are at the top of the list in the country or which is the name of a company that attracts attention, Copec will always be among those that stand out, because it really is first in service. The service that Copec provides is the same everywhere.

You know a Copec service station because immediately the person will greet you in the same way in all the stations: welcome to Copec, my name is... And they serve you very well. That makes me very proud to belong to Copec.”

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maría victoria ovalle EDS Vitacura Franchisee.

“Copec is a company with a soul. You can see that when catastrophes and crisis situations occur. Copec is always present then, supporting its customers and Chile.

This commitment to the country and the future of Chile is a hallmark of Copec and is present everywhere, from the offices to the last station lost in Patagonia.” jorge bunster Director of Copec.

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“When I was 16 years old and still in school, I started washing trucks. I continued studying and after having gone through many positions and done many things within Copec, today I am shift manager at the Maipú Plant.” manuel hidalgo Shift Manager Maipú Plant.

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“At Copec we are first in service. I also like to be first in my work. I like to perform well. I like to do it well.” claudia quevedo Credit Assistant, Industrial Sales Management.

“As Copec’s slogan says, it is first in service. But this is not a joke or a game, it is the pure truth, because Copec takes time to train us so that we can then pass on what we have learned to the customer, who is the one who in the end has to feel satisfied. That is why Copec is first in service and will continue to be so.” roberto toledo LUB Service Manager.

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TODAY, COPEC’S PURPOSE IS AN ESSENTIAL GUIDE FOR THE COMPANY’S CURRENT AND FUTURE CHALLENGES. 31_ THE CHALLENGE, FOR EACH OF THE PEOPLE WHO MAKE UP THE TEAM, IS TO LIVE IT DAY BY DAY.

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EMPRESAS COPEC AND ITS SUBSIDIARIES HAVE IMPLEMENTED MULTIPLE INITIATIVES THAT PROMOTE DIVERSITY, CONSIDERING IT AS A CORE ELEMENT IN CREATING VALUE FOR PEOPLE, CUSTOMERS, COMMUNITIES AND ALL ITS STAKEHOLDERS.

empresas copec:

DIVERSITY: MORE THAN A NUMBER

Our society is constantly changing and demands that companies align themselves with the new challenges of the 21st century.

Additionally, people demand new equality and diversity standards and that organizations become a true reflection of a world where different visions exist and where tolerance and respect are key.

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_ in the photo: Carolina Garcia Founder of Comunidad Inclusiva.

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The work of this Foundation is, precisely, to create a cultural change in the company’s ecosystem. “The world is diverse. On the other hand, in organizations, apart from the fact that we have different offers, customers and markets, we have diversity of talent, gender, generations, people with disabilities. In this context, the leader has to manage varied cultures and understand that diversity is a value and creates value. However, if there is no real inclusion, all the virtues it brings will not be effective,” she warns.

34 _ It was 2006 and Carolina García held a relevant position in a mining consulting firm. This engineer from the University of Chile considered herself an “independent, determined and well-traveled” woman. But, unexpectedly, one day everything changed. On a business trip in Antofagasta, the vehicle in which she was traveling collided head-on with a truck. After this accident, Carolina became part of the 20.3% of adult Chileans who have some degree of disability, according to SENADIS data, forcing her to use a wheelchair permanently. This change was not only radical in her personal life, but

also in her job, where, after a few years, she was fired. “I was no longer useful,” she says.

From then on, she began a long road, like many disabled people, looking for a job opportunity where she could continue to develop her talents, without impediments, as well as help others in the same condition. Thus, Comunidad Inclusiva was born.

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purpose. Over the last few years we have been on a persistent path in this area. When we talk about diversity, we understand it as a core element in creating value for people, customers, communities and all our stakeholders. It also allows us to have a much broader vision and to make better decisions.

But there is no point in having this diversity if people do not feel welcome and as an essential part of the organization. To this end, it is key to foster an inclusive culture.”

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_ in the photo: Marcela Bravo CEO of ACCIÓN Empresas.

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— a shared effort It has taken a long time to introduce these contents into everyday conversations in our country.

Global and local phenomena helped to install these issues as part of the agenda. For Marcela Bravo, CEO of ACCIÓN Empresas, trends such as “Me Too” or “Black Lives Matter” made visible a society that demanded more commitment to these issues. “We saw that a very strong force was emerging regarding the need to generate more awareness in companies, not only from the ethical duty to incorporate diversity and inclusion as a policy and as something that is really promoted, but also as a factor of greater productivity and competitiveness within organizations,” she says.

In this regard, Empresas Copec and its subsidiaries have implemented multiple initiatives promoting diversity and inclusion. This is confirmed by its CEO, Eduardo Navarro: “The Company and each of its subsidiaries are, today more than ever, challenged by an inclusive

— not just a good practice The inclusive culture Navarro talks about is the most difficult thing to incorporate. In this regard, Carolina García says: “Diversity brings collaboration, communication and happiness in teams. But there must also be inclusion, because what’s in it for me to have migrants, a woman of color, a person in a wheelchair, a deaf person or a centennial on the team if I don’t manage it. Diversity without management is not inclusion.”

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Bravo adds: “Inclusion improves productivity, competitiveness, organizational climate and the ability to innovate. And it makes a lot of sense, because if society is diverse, when that is represented in a company, it is likely to be more successful, since it better understands the community of which it is a part and for which it is providing services or products.”

Numbers support their statements.

McKinsey & Company, in its study “Diversity wins”, with data from more than a thousand companies in 15 countries, says that the top 25% companies in terms of gender parity are 25% more likely to obtain higher profits than the bottom 25%.

Additionally, companies with more than 30% female presence perform 48% better than those with 10% to 30% women on their team. Statistics are not much different in the case of ethnic and cultural multiplicity.

Organizations that rank in the top

1% OF THE WORKFORCE

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EMPRESAS COPEC AND SUBSIDIARIES, CONSOLIDATED DATA:

27% FOREIGN WORKERS

>30 AÑOS

•

ONE IN FOUR EMPLOYEES

25% would generate 36% more dividends compared to 25% of companies at the bottom of the list. And these percentages have been growing steadily since 2014.

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directly to me, there is gender parity. But beyond the positive evolution of these indicators, I value the fact that we have had excellent female professionals in the companies in prominent positions, some of them historically filled by men. Examples of this are women executives responsible for logistics and operations in the fuels area, or leading the forestry assets division, as well as in the position of CEO in some of our investments abroad, to mention a few.

Likewise, today four of the 10 plants of our subsidiary Abastible are managed by women. We have undoubtedly taken important steps, but we know that we need to continue making progress and we are committed to this purpose.” He also mentions the evolution of female participation in some areas within the subsidiaries, such as energy, where the share of women is 41%.

Navarro stresses the importance of promoting diversity and inclusion in all areas. “Generally, when we talk about these issues, the first thing that comes to mind is gender, but we must also add diverse talents in terms of age, profession, experience, nationality, among others. At the corporate group level, it is noteworthy that 27% of employees are foreigners and one in four is under 30 years of age. Other examples of diversity have been seen in the board of directors.

At Abastible, for example, an important step was taken when another woman, only 36 years old and a designer, joined its board of directors. At Empresas Copec, meanwhile, two female executives and an architect joined the board this year.

Another McKinsey & Company study shows that nine out of 10 CEOs consider diversity to be a top, very important or moderate priority. Another piece of data from the same analysis shows that two out of five firms are currently expanding their investments in diversity programs.

In this regard, Eduardo Navarro highlights various initiatives and policies being implemented by Empresas Copec and its subsidiaries. “In corporate governance, the Company acts under solid principles including, among others, equitable treatment of all shareholders and consideration of the different stakeholders in decision making. Today we can say that our metrics have been improving. For example, 40% of Empresas Copec’s staff are women and, in the executive team who report

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25% FEMALE EMPLOYEES

41% IN THE ENERGY SECTOR WOMEN

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— a change from the leaders Although there are figures that support the benefits of implementing these policies in the long term in companies, Carolina García and Marcela Bravo agree that there is still some difficulty in convincing executives to consider the issue as part of a strategy. According to Comunidad Inclusiva founder, some of them can only understand it from specific cases or data related to the business. “With inclusion, accident rates go down, and people collaborate better, so in many industries sales increase, for example. The inclusive leader, finally, cares about each of the people on the team, obtaining greater commitment and performance from them.”

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Once managers are convinced, explains Marcela Bravo, there must be a policy.

“Then, a lot of education, training, sharing good practices, assessing how much the organization’s employees value this.

Communicate it, have an inclusive language.

Be careful when we make comments like, ‘Hey, but how, don’t you have a wife to take your child to school?’ Managers must be very, very careful in that sense,” she warns. Another significant move, in Bravo’s opinion, is for the boards of directors to get involved, for a plan to be drawn up and for progress to be presented, with follow-up of its fulfillment at the highest level. “The creation of committees with people from different priority groups, in turn, is a positive action, so that everyone feels represented. Finally, setting gradual goals and generating indicators and KPIs that go beyond the Human Resources area are key.”

Finally, Eduardo Navarro concludes: “We are currently going through the worst global crisis since World War II, which is implying a series of paradigm shifts and doses of uncertainty about the future. This new stage will be marked by the search for greater social cohesion and inclusion, where the role of leaders and companies will be key to a more sustainable and resilient future.”

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_ in the photo: Eduardo Navarro CEO of Empresas Copec.

“THIS NEW STAGE WILL BE MARKED BY THE SEARCH FOR GREATER SOCIAL COHESION AND INCLUSION, WHERE THE ROLE OF LEADERS AND COMPANIES WILL BE KEY TO A MORE SUSTAINABLE AND RESILIENT FUTURE,” SAYS EDUARDO NAVARRO.

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some initiatives of empresas copec and subsidiaries

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In 2020, in the context of the pandemic, the subsidiary carried out various actions related to co-responsibility at home. It also created special leave for female employees, facilitating flexible working hours and teleworking for women caregivers or those at risk.

In 2020, the organization issued its first version of the Gender Equity Policy, which in 2021 evolved into the Diversity, Gender Equity and Inclusion Policy. In addition, it created a new position of Leadership, Diversity and Culture Director, who took office in March of this year.

Currently, women account for 41% of its board of directors, 40% of its executive officers and 55% of supervisors and analysts.

Terpel was recognized in 2020 as one of the three companies with the highest gender equity in the retail sector in its country, according to the PAR 2020 Ranking.

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abastible and subsidiaries: focus on equity Since 2019, the company has been promoting a Women’s Leadership Program, aimed at promoting diversity and inclusion of women, fostering a culture that values gender complementarity in work teams.

terpel: setting the standard in colombia

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Norgas established its Inclusion and Diversity Policy and was invited to join the advisory committee “Energy that transforms. Mining-Energy Alliance for Gender Equity” in Colombia. Thus, the affiliate climbed 51 places in the PAR Ranking, which measures corporate evolution in gender equity practices.

copec and subsidiaries: building a framework for action Copec is preparing a Diversity and Inclusion Policy that is expected to be completed and approved during 2021, and which will lead the organization to make progress in these matters. arauco: long-term inclusion The company currently has a program that promotes hiring of people with disabilities and incorporates a benefit plan that bolsters resources provided by the government.

In addition, in March of this year it announced a new Inclusion and Gender Committee, which is currently working on carrying out a comparative analysis in this area, defining its different fronts of action and training.

Its subsidiary Arcoprime, on the other hand, has a significant share of workers from different nationalities. The number of foreigners at the end of 2020 reached 675, accounting for 14% of the workforce.

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EACH MEMBER OF THE CALETA BAY TEAM IS AWARE OF BEING PART OF A GREATER PURPOSE: TO BE RECOGNIZED WORLDWIDE FOR THE QUALITY OF ITS PRODUCTS AND THE HAPPINESS OF ITS PEOPLE.

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THE VALUE OF DOING THINGS RIGHT

caleta bay:

The major national producer of rainbow trout, Caleta Bay, in which Empresas Copec participates through its associate Inversiones Caleta Vitor, has strong roots in southern Chile and an unwavering commitment to sustainability.

The team’s efforts are aimed at obtaining a healthy and quality product, controlling the environmental, social and economic impact that its activity could eventually have.

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Along with the work of genetic improvement of species, the following years brought with them the great leap towards sea farming. The acquisition of a processing plant and the start of fresh trout exports to the United States were part of a sustained growth process, which would later mean looking beyond the Reloncaví estuary and across the Pacific.

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In 2017, the company had a research and breeding center and opened its office in Tokyo, from where it supplies the Japanese market. Today, 80% of its exports go to Japan, where Caleta Bay Asia serves 121 customers and has alliances with retailers to reach end consumers. This is followed by markets in Canada, Russia, part of Asia and South America.

Its facilities include six operating freshwater farms, 10 offshore farms and two processing plants. In 2020, 16,528 tons were harvested, of which 13,660 tons were rainbow trout and 2,868 tons were coho or Pacific salmon.

With approximately 70 thousand tons per year, Chile is Latin America’s largest producer of rainbow trout and is among the world’s leading producers. In the domestic industry, the most relevant player is Caleta Bay, a company with more than 30 years in the business, strongly identified with the south of the country, whose products today have a significant presence in the Japanese market.

Its history dates back to the early 1980s, when salmon farming was taking its first steps on a promising path. At the end of the decade, in a fish farm on the banks of the Pitreño River, in the Lago Ranco commune, the first 25,000 coho salmon eggs were hatched and a concession was leased on Lake Rupanco.

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— closeness, humility and commitment In a highly competitive market full of challenges, the Caleta Bay team has been concerned about leaving a mark and taking care of details that make the difference. Its maxim is “doing things right”, a concept that is both broad and deep, which is rooted in the corporate culture, in the values and in the day-to-day work of its almost 500 permanent employees, rising to 1,200 in high season.

_ in the photo: Anibal Pérez de Arce CEO of Caleta Bay.

Caleta Bay’s CEO, Aníbal Pérez de Arce, explains that the daily efforts of the entire team are aimed at “obtaining a healthy, quality product, prioritizing the minimization of the impacts and taking responsibility for all the possible effects, both positive and negative, of our production activity, both at the environmental, social and economic levels.”

Everyone is aware that working with nature is an activity that requires dedication, effort and patience. “For this reason, we focus on building a close company, where humility and commitment are key. We are convinced that each of our employees and the members of the communities in the industries where we operate can contribute from their own perspective to the development of a more inclusive, friendly and respectful industry,” he adds.

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Chile, the largest producer in Latin America and the world.

This way of doing things also involves connection with the environment.

For this reason, we develop longterm projects and spaces for dialogue, in which the neighbors themselves can raise their concerns and build opportunities for improvement and growth, working together. This translates into transparent, close and mutually trusting relationships for the benefit of all.

CALETA BAY:

RAINBOW TROUT

70,000

6

TONS PER YEAR

— for a sustainable world Under the conviction that doing things right means going beyond the requirements or regulations, Caleta Bay has a sustainability strategy that covers all areas and operations. For Pérez de Arce, the certifications obtained are, in the end, “the external X-ray of our capacity for compliance, adaptation or resilience to change or new demands, for which we must be prepared at all times.”

He adds that “it is only possible to achieve the great goal of building a more sustainable world if we take responsibility for our actions. We believe that we can make a difference by focusing on long-term goals and dreaming together, as a team, to build a better company.”

FRESHWATER CENTERS

10 SEAWATER CENTERS

A concrete measure in this line is ongoing investment in research and development, enabling a substantial reduction in the use of antibiotics in relation to the rest of the Chilean salmon farming industry. The result?

The company consistently shows the lowest consumption of antibiotics in the industry. In addition, 100% of the drug used is applied by injection, ensuring its total absorption by the farmed fish.

On the other hand, in 2019, the commitment to quantify the carbon footprint through the “Huella Chile” program, aimed at promoting the calculation, reporting and management of greenhouse gases, materialized. “Last year we obtained the quantification seal for our freshwater and seawater operations.

In this way, we seek to manage and reduce the eventual effects that could be created as a result of our activity,” says Aníbal Pérez de Arce.

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TODAY, 80% OF ITS EXPORTS GO TO JAPAN, WHERE CALETA BAY ASIA SERVES 121 CUSTOMERS AND HAS ALLIANCES WITH RETAILERS TO REACH END CONSUMERS. THIS IS FOLLOWED BY MARKETS IN CANADA, RUSSIA, PART OF ASIA AND SOUTH AMERICA.

— a sea of challenges Caleta Bay knows how to face challenges and turn threats into opportunities. At one time it was the ISA virus, which put the salmon industry in check. “Nature gave us a big signal; we could not continue operating with uncontrolled growth,” he says. However, trout was not as affected by the virus as Atlantic salmon and the crisis period was one of the best commercial years for the company. “In fact, in 2009 we had our first experience with the Angelini group through the association with KABSA, which turned out extremelly well,” says Pérez de Arce.

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Environmental challenges are an ongoing issue. Climate change is a reality, with rising sea temperatures contributing to the appearance of the so-called “algae bloom”, affecting fish by consuming the available oxygen. In response, the company has developed contingency plans that include the upcoming purchase of a multipurpose vessel, which will meet the requirements in times of crisis, removal of massive mortalities and on-site silage, as well as the ongoing needs of the operation.

And, ultimately, the pandemic forced the entire organization to adapt very quickly to a new way of living, working, relating and communicating. Caleta Bay’s CEO points out that this was particularly challenging in an industry whose operations are dispersed and connectivity is often poor. “It was an important learning opportunity, which allowed us to evaluate how we could respond effectively to ensure the safety of our employees and business continuity. When working with living beings, it is not possible to paralyze operations, so we were obliged to find effective solutions as soon as possible, and we did,” he says.

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tests in recirculation fish farming, the construction of a smoking plant, the integration of a feed plant and genomic studies to improve the immune sanitary performance of the fish and the yield of meat, texture and color.

The Caleta Bay team works every day to be a differentiating company in the industry, in which each member is aware of being part of a greater purpose: to be recognized worldwide for the quality of its products and the happiness of its people.

— long-term view Flexibility, the ability to adapt to changes, to be open to seek new solutions and approaches are aspects that Caleta Bay considers essential to continue growing. “We have to be prepared to adapt to the different scenarios, to the social, environmental and health changes that we are constantly encountering,” says the executive.

Thus, Caleta Bay is a company that looks with well-founded optimism towards sustainability, focusing on all players in the value chain, prioritizing local suppliers and promoting continuous improvement in each of its products. Examples of this are the

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FLEXIBILITY, THE ABILITY TO ADAPT TO CHANGES, TO BE OPEN TO SEEK NEW SOLUTIONS AND APPROACHES ARE ASPECTS THAT CALETA BAY CONSIDERS ESSENTIAL TO CONTINUE GROWING.

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ARAUCO STRIVES FOR A MORE SUSTAINABLE PLANET 45 _ In recent months, the subsidiary has promoted the “Red on the outside, green on the inside” campaign, in which more than 10,000 used clothing items from the Chilean National Football Team were reused. They were handed to more than 200 clubs nationwide, thus giving a second life to this clothing and preventing them from becoming waste.

In this same context, ARAUCO launched the social and environmental impact initiative “Juégatela por tu cancha” (Go all-in for your football field), inviting clubs throughout the country to commit to caring for the planet and to participate in a collaborative renovation of their neighborhood’s football field. More than 1,500 teams joined this crusade, and the winner was Club Deportivo Baquedano Maullín, from the Los Lagos Region. It was recognized for its more than 100 years of history, effort and the positive impact it has had on its sports community through values and environmental awareness.

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10,000 ITEMS OF CLOTHING DONATED

200 CLUBS NATIONWIDE

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COPEC-UC FOUNDATION HAS BECOME A BENCHMARK FOR THE SUCCESSFUL LINK BETWEEN BUSINESS, UNIVERSITY AND STATE

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THE IMPORTANCE OF COLLABORATION copec-universidad católica foundation:

As the Copec-UC Foundation (FCUC) is approaching its second decade, we talked to its executive director, Alfonso Cruz, about the beginnings of the organization and its major achievements.

In addition, Cruz reflects on the contribution of this institution to scientific research and the development of the country, especially in the current challenging context, which has revealed the key role of science and technology in people’s welfare and quality of life.

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A “long-term strategic alliance”, with an “avant-garde and innovative” perspective, a “high-level and strongly committed” board of directors and “highly experienced and knowledgeable counselors”. These are four concepts that Alfonso Cruz highlights to summarize the unique characteristics of the FCUC, founded in 2002 by the Pontificia Universidad Católica de Chile (UC) and Empresas Copec, in order to promote and support scientific and technological research in Chile and in the world.

Anacleto Angelini, founder of the controlling shareholder group of Empresas Copec , and former UC

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rector Pedro Pablo Rosso were the ones who started a crusade that, at the time, was ahead of its time, according to Cruz. “At that time there was very little talk of innovation. In universities and companies, it was practically not a topic. So, they founded this Foundation with a very avant-garde focus for the time: to innovate mainly in the natural resources and energy sectors,” he says.

Currently, the Foundation mainly supports projects related to biotechnology, food, fishing and aquaculture. It also has a portfolio of initiatives in the areas of mining, medicine, agriculture, livestock,

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industry and forestry, among others. An average of six projects are awarded each year through three competitions. The first, of a regular nature, grants up to 4,000 UF of financing and consulting services, and companies, universities, research centers and individuals may apply. In addition, there are two exclusive competitions for young talents and higher education students, which provide funding of up to 3,000 UF and support in technical aspects, intellectual property and commercial management.

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_ in the photo: Alfonso Cruz Executive Director of Copec-UC Foundation.

— a partnership that makes a difference Thanks to a management structure leveraged by executives from Empresas Copec and renowned academics and researchers from UC, the Foundation has become a benchmark for the successful link between business, university and State. A clear example of this is the creation of expert committees made up of executives and researchers, a virtuous combination of skills and experience, which is complemented by a committed and specialized executive team that works from the development of an innovation to its commercial management, a group of people of whom Cruz says he is very proud.

On the other hand, he highlights the importance of the role of the State in “co-financing initiatives, in order to reduce their risk and, thus, encourage more projects of this type. In Chile we have institutions such as the Production Development Corporation (CORFO) and the Ministry of Science, Technology, Knowledge and Innovation. There are good policies in this area, but there is still a long way to go, as we are far from more developed countries”.

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FOSTERING APPLIED RESEARCH IN THE NATURAL RESOURCES SECTOR, PROMOTING THE CREATION OF STRATEGIC ALLIANCES AND DISSEMINATING DEVELOPMENTS IN SCIENCE AND TECHNOLOGY ARE PART OF THE OBJECTIVES OF THIS ORGANIZATION WHICH, TO DATE, HAS FAVORED MORE THAN A HUNDRED R&D PROJECTS.

— comprehensive support Fostering applied research in the natural resources sector, promoting the creation of strategic alliances and disseminating developments in science and technology are part of the objectives of this organization which, to date, has favored more than a hundred R&D projects. “What we do is to convene those that already have some degree of progress and support them so that they become global innovations. We are not a Foundation that promotes basic science, but we support projects that

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we assist them in the technology transfer and commercialization of the results so that they can be implemented at a productive level. We also advise them in obtaining regulatory approvals, certifications and access to national and international networks. And finally, we participate in dissemination and communication, because when you have a technological innovation, it can be very valuable, but adoption is not simple, as it always involves risks. Therefore, we also have to facilitate this process.”

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already have, at least, a proof of concept. And our characteristic is to provide comprehensive support to these teams so that they can transform their research into a valuable contribution to society”, says Cruz.

Although the organization in its years of history has provided more than eight billion pesos in funding, for FCUC’s top executive the hallmark of the institution is not only in these resources, but also in the integral support given to the research teams. “We support them in the technical aspects, in the management of R&D and in achieving appropriate protection of the intellectual property created. Then,

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111

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R&D&i PROJECTS FUNDED

PESOS AWARDED

PATENT APPLICATION

COUNTRIES

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to the sanitary emergency. “The Foundation had the flexibility to contribute to one of the most significant initiatives in recent years. And it was done quickly and effectively, which demonstrates the dynamism and capacity to adapt to new circumstances,” adds Cruz.

For him, this is a significant milestone in the history of the institution. “The world needs a diversity of vaccines, and we, from Chile, are contributing to the creation of a vaccine against Covid-19. We need to have our own capabilities in these matters; we cannot depend solely on international entities. In this line, we have made a frequent follow-up of its progress, in order to accelerate it and make it a reality,” he concludes.

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— dynamism and adaptability 2020 marked a turning point for the planet.

Covid-19 unexpectedly hit and posed a great challenge for the scientific field. There were no vaccines to combat the virus and laboratories quickly began to find solutions. Chile was no exception: UC researcher and academic Alexis Kalergis approached the Foundation’s board of directors seeking support to develop shots made locally. Competitions were not open at that time, therefore, collaborating with this work represented a change in internal policies, due

PATENTS GRANTED

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4 TRADE SECRETS

8 TRADEMARK REGISTRATION

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flip: technology for healthier snacks UC researcher Pedro Bouchon achieved something that seemed impossible: to produce potato chips and other similar products with two thirds less fat and low sodium, better preserving nutrients and maintaining their original flavor, texture, color and aroma.

The Foundation built a virtuous link between scientific research and the private world by incorporating Empresas Copec’s subsidiary, Orizon, in this project. Orizon implemented a pilot plant in Coronel, in the Biobío Region, to develop and validate the technology.

responses made in chile to global challenges Having the first Chilean vaccine against Covid-19 is the dream of the team led by Alexis Kalergis, director of the Millennium Institute of Immunology. Currently, they are in the study phase, with positive results.

It is also worth noting the work that his team has been carrying out for several years to develop a vaccine against syncytial virus based on highly conserved antibodies.

The researchers are completing pre-clinical trials and, in parallel, are in the process of licensing and raising capital for clinical trials.

This is how Flip was born, a product that is available to the consumer through the website: www.lamesadetodos.cl and in some Pronto Copec stores. The snack allowed Orizon to receive the Technology Transfer 2020 award as a “Collaborating Company”, recognition from the Ministry of Science, Technology, Knowledge and Innovation, CORFO and the Network of Technology Managers of Chile, which highlights players that promote the creation of technology-based entrepreneurship. It is currently in the process of expanding its production and market presence.

fastwine: improving the quality and competitiveness of domestic wines Alejandro Maass, director of the Mathematical Modeling Center, and Verónica Cambiazo, head of the Bioinformatics and Genetic Expression Laboratory of INTA, both from the University of Chile, implemented a technology enabling to detect and quantify in a few hours the presence of contaminating yeasts and bacteria from wine samples, through a molecular analysis system (qPCR), specifically designed against native strains.

The mechanism is fully validated and commercially available through DiagnoFast, a spin-off company created by the researchers, which has significantly contributed to modernizing the quality management of the national wine industry and sustaining its competitive capacity at the international level.

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reagents that protect aquaculture

beetechnology: nutritional supplement that protects bees When Alejandro Olmos, together with his team, participated in the “Aplica tu Idea” contest of the Copec-UC Foundation, aimed at undergraduate and graduate university students, they never imagined that their idea would be transformed into BeeTechnology, a nutritional supplement for bees. The creation of this start-up not only prevents the disease called American foulbrood, which affects bee brood, but also provides better nutrition and quality of life to the hives. BeeTechnology plans to initiate field trials in the United States and to raise capital this year for industrial scale-up, completion of product registration with regulatory agencies and beginning of marketing activities.

Timely detection of pathogens is key to sustainability of the salmon industry, and Arturo Yudelevich’s work generated analysis reagents capable of identifying their presence. His research allowed the control of the ISA virus (Infectious Salmon Anemia), which strongly affected the national industry some time ago. This project was the first licensed by FCUC to the industry.

52 _ chaski: democratizing access to highperformance sport Bringing comprehensive cardiorespiratory evaluation closer to athletes is one of the aims of Daniel Hurtado and Vader Johnson’s Chaski.

This tool, which until recently was only for elite athletes, is now available thanks to a device that allows athletes to measure and optimize their physical resistance on a daily basis, reducing the need for costly clinical tests. The innovation was highlighted by MIT in the United States and will be sold this year through IC Innovations SpA, a spin-off of the researchers.

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“The Foundation is today a unique organization in the context of Chile’s innovation system, since it not only provides funding, but also invaluable support and guidance to researchers in the arduous journey that must be taken to transform research into products, services and processes that create value, have an impact and end up improving people’s lives. Thinking about the future, I believe it is essential to contribute with developments related to climate change and for the country to have greater strategic capabilities to face critical situations, such as the pandemic.

Although the Foundation is a national benchmark in innovation, it would be important to increase our impact and look for ways to transmit our knowledge and experience in the management of R&D&i.”

new ideas for renewed challenges The three executives who joined the FCUC in the middle of the pandemic are between 37 and 39 years old. A biologist, a biochemical civil engineer and a journalist seek to continue promoting technological development in our country.

Below, they briefly share what makes them proud to be part of this organization and how they envision it in the future.

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jonathan núñez Administration, Finance and Corporate Affairs Manager “The Foundation today plays a fundamental role in its contribution to R&D and, in the future, I would like our projects to have an increasing impact and importance in society. I highlight many of them, particularly those that directly benefit public health, such as the development of vaccines for Covid-19, the syncytial virus and SIMULMEDIC, a robotic arm for venous puncture training for health students. In addition, there are other initiatives that are related to innovations linked to our resources, such as, for example, the Rubisco project, an anti-aging cream based on larch extract.” isidora insunza Transfer and Marketing Manager.

“It is very interesting to see that 20 years ago the Foundation had the vision of linking business, on the one hand, and academia, on the other, in order to have an impact on society through the development of new technologies. I would like the Foundation to position itself not only as a benchmark in innovation, but also as an example of how collaboration between entities from different fields allows us to think of a better country, connected to the problems and needs of society. I am very proud that Copec-UC Foundation supports initiatives related to different sectors, where there is a comprehensive view of the needs we have as a society, the problems that exist and how they can be solved, always considering the concern and impact on the environment”. constanza zülch Marketing and Communications Manager.

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empresas copec FUEL SECTOR EBITDA: US$ 630 million

FISHING SECTOR EBITDA: US$ 30 million

RESULTS AS OF JUNE 2021

FORESTRY SECTOR EBITDA: US$ 923 million

empresas copec consolidated ebitda and net income as of june 2021 amount to us$ 1,576 million and us$ 569 million, respectively.

OTHER EBITDA: US$ (8) million

TOTAL NET INCOME: US$ 569 million EBITDA: US$ 1,576 million

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Also, in the forestry sector, the panel and lumber market has shown an interesting performance, with strong demand, driven, especially in some markets such as North America, by a boom in home improvement and residential construction. Added to this is the effect of our logistics optimization initiatives implemented after the inauguration of the Grayling mill. _ in the photo: Rodrigo Huidobro CFO of Empresas Copec.

The first half of 2021 brought generally very good news for our different business areas. This is especially encouraging compared to 2020, when the different units were hit hard by the effects of the pandemic.

The pulp business has maintained attractive price levels, after a long period in which prices were the lowest in decades. Recovery began towards the end of last year, consistent with a gradual increase in demand for fibers in general, associated with gradual lifting of restrictions associated with Covid-19. The price increase continued in the first months of this year, and peaked during the second quarter, before falling back slightly in recent weeks, mainly due to seasonal demand factors. Today, prices for all fibers are at very good levels. Going forward, we see a well-balanced market, where the gradual entry of new projects should balance a demand driven by both traditional uses and new requirements in e-commerce or the substitution of plastic and cotton.

In fuels, volumes sold showed strong recovery, although they are still affected by both restrictions associated with the pandemic and high oil prices. The liquefied gas market has also been adversely affected by declines in those segments most impacted by health restrictions and by the increase in prices of raw materials, although this has been partially offset by volume increases in the residential market, as well as by the auspicious results of new commercial strategies aimed at providing industrial customers with an efficient and more environmentally friendly energy supply.

All this has resulted in an accumulated Ebitda as of June of US$ 1,576 million and a profit of US$ 569 million, well above first half of last year.

In terms of project progress, Mina Justa is already in operation, and sent its first shipment last July. This completes a US$ 1.6 billion investment. MAPA, on the other hand, is 90% complete and is expected to begin operations by the last quarter of this year. We are thus

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overcoming, in both cases, the huge challenge of building in a pandemic, having always placed the focus and the highest priority on guaranteeing the health and safety of our employees and contractors. In both cases it seems that the projects will face their respective markets with positive price scenarios.

The asset sale processes also show important milestones.

Abastible completed the sale of its stake in Gasmar, generating a net income of more than US$100 million before taxes.

ARAUCO reached an agreement to sell some 80 thousand hectares of forestry assets, in an operation that will generate revenues of close to US$ 400 million.

All of the above has allowed us to rapidly reduce our debt levels, which reached record highs last year, as our large investments coincided with the impact of the pandemic and low pulp prices on our cash flow generation capacity. Today, we have already reached a value of 2.8 for the DFN/Ebitda ratio, a figure closer to our target levels.

The Company has thus shown enormous resilience in overcoming the challenges of the past year and is on a firm footing to face those to come. And it will do so, as always, with the long term and the well-being of all its stakeholders in mind.

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empresas copec receives important awards

abastible closes gasmar sale agreement

mina justa makes its first shipment of copper concentrate

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orizon receives 2020 technology transfer award read

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copec will bring the use of solar energy to 300 families read

abastible and techo launch “chile comparte calor “ campaign

innovative project wins inmobiliaria las salinas’ parque urbano contest

empresas copec supports students from belén educa foundation

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empresas copec receives important awards the company’s esg (environmental, social and governance) performance in the last period was distinguished by prominent indexes and studies. in addition, the investor relations team was distinguished in several categories in the pulp and paper industry.

Empresas Copec was ratified in the FTSE4Good Index Series, which reviews ESG (environmental, social and governance) performance of the major listed organizations globally.

In addition, it was distinguised by Institutional Investor, one of the world’s most prestigious magazines on market trends and relations between companies and institutional investors, in its new version of the Institutional Investor ranking: The Latin America Executive Team. A total of 765 buy-sideand sell-side analysts, as well as asset managers, voted in this study, with 341 companies and more than 1,000 executives in 16 sectors nominated. Empresas Copec’s Investor Relations team and three of its members —Rodrigo Huidobro, Cristián Palacios and Juan Hurtado— were distinguished by the market in categories that can be reviewed in detail here.

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Regarding these major milestones, Cristián Palacios, Director of Finance and Investor Relations at Empresas Copec, says: “We are very proud of these awards, as they are the result of the efforts made by the Company in these aspects for years.

I would like to congratulate the entire Finance and IR team for their professionalism and commitment, which have undoubtedly been crucial in allowing us to obtain these distinctions. I would also like to thank the Corporate Affairs area, whose support in ESG issues has been key.”

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abastible closes gasmar sale agreement the subsidiary of empresas copec sold its entire shareholding, amounting to 36.25%, to inversiones arco 4 spa, for approximately us$ 117.6 million.

As reported by the Company on May 21, the agreement was subject to certain conditions precedent, including the approval of the local antitrust authorities, all of which have been fulfilled.

According to preliminary estimates, the agreement will have a positive effect on Abastible’s earnings of approximately US$ 102.7 million before taxes.

Considering Empresas Copec’s shareholding in the subsidiary, which to date is 99.2%, the effects on its financial statements are expected to be of a similar amount.

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mina justa makes its first shipment of copper concentrate 22 thousand metric tons of copper concentrate where shipped, an important milestone for the copper company, which begun production this year.

With an investment of close to US$ 1.6 billion, Mina Justa marks Empresas Copec’s debut in large-scale mining and was made possible thanks to a joint venture between its subsidiary Alxar and Minsur.

Erwin Kaufmann, Alxar CEO, says: “It is exciting that, after so many years of study, construction and the challenges of the pandemic, we are beginning to sell the first tons of copper.

What began as a dream, that Alxar would enter the large copper mining industry, is finally becoming a reality today, in an operation that is world-class from every point of view. In addition to the deposit’s own characteristics, high grade, good metallurgy and excellent location, we have a great partner, the Breca Group, and a highly professional and dedicated Marcobre team. We are very excited”.

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The company will achieve its maximum production capacity by the first quarter of 2022, reaching 150,000 tons per year.

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orizon receives 2020 technology transfer award thanks to its healthy snack flip, the company was recognized by the ministry of science, technology, knowledge and innovation, corfo and the chilean network of technology managers.

The subsidiary ranked first in the “Collaborating Company” category, an award given to players that promote cooperation and generation of technology-based enterprises, and the link between academia and the private sector.

Orizon adopted an innovative Chilean system that considerably reduces the percentage of fat in potato chips, preserving their flavor and color, and which was created by academics from Universidad Católica. This initiative secured support of the Copec-UC Foundation, the institution that applied it for the public tender.

“This is the first R&D project that we support and, moreover, are betting on, which is not linked to the sea. We will continue to develop other businesses along the same lines.

In this case, we are working on scaling it up to turn it into

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a spin-off and reach new distribution channels,” said Orizon’s Development and New Business Manager, Jorge de Llano.

Six months ago, production capacity of this product was 1,000 bags per month and today they aim to continue growing and reach more than 50,000.

FLIP potato chips are available on the website www.lamesadetodos.cl.

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copec will bring the use of solar energy to 300 families through its subsidiary flux solar, it will be part of the “casa solar” program, promoted by the ministry of energy and the energy sustainability agency.

The initiative aims to promote the use of this type of energy through a special financing system. In this way, more people will enjoy the benefits of having an environmentally friendly source of energy and, at the same time, reduce their electricity bills.

In this context, the Copec subsidiary was awarded a tender to install 300 photovoltaic panels in the Metropolitan and Maule Regions. “Solar energy will not only enable these families to save up to 300,000 pesos a year on their electricity bills, but will also be a concrete contribution to reducing emissions and accelerating the energy transition process,” said David Rau, CEO of Flux Solar.

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The beneficiary families will be able to purchase the complete system with significant discounts and will receive financial support from the State for its installation.

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abastible and techo launch “chile comparte calor “ campaign the subsidiary committed to an initial donation of 4,500 gas refills, which will go directly to families, community kitchens and camps throughout the country.

The arrival of winter, cold and rains worry many families, especially the most vulnerable ones who, in times of pandemic, must make a greater effort to obtain sources of energy and shelter.

In this regard, Julio Vidal, Abastible’s Sustainability Manager, said: “For us this initiative is fully identified with our vocation to work for the welfare of communities. We are very proud to once again be part of this alliance with TECHO, as it allows us to contribute to improving the quality of life of the most vulnerable people, especially children, the elderly and families living in camps that are being affected.”

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This solidarity crusade is part of the emergency campaign “Chile Comparte 2021”, which seeks to finance at least one thousand basic homes, in addition to repairs and improvements to face the winter, deliver more than 12 thousand gas refills and support more than 100 community kitchens with which TECHO works.

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innovative project wins inmobiliaria las salinas’ parque urbano contest this stands out for being a great integrating space, sensitive to the citizens’ demand for quality green areas, responding to environmental and socio-cultural realities.

In December 2020, the real estate subsidiary of Empresas Copec launched an international competition for different architecture and design studios to design the area of the Las Salinas Neighborhood Urban Park. The aim was to turn this area on the coastline into a social, sports and cultural meeting place for its inhabitants.

Of the 14 initiatives that were submitted, the “Botanical Garden Park” project, developed by the architectural firm Archiplan, in conjunction with Gt2p and Planoamano, was the winner. It includes an area of 1.8 hectares and a large park, fair and exhibition hall, urban viewpoint and children’s play area, among others. The design is based on the principle of “Urban Biological Corridors”, which aim to mitigate the fragmentation of the landscape and restore its

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ecological functions within the urban layout.

It is worth noting the collaborative nature of this competition, as it was born as part of the Regional Urban Panel (PUR), an instance of dialogue and territorial reflection in the area.

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empresas copec supports students from belén educa foundation in line with its commitment to promote quality education in the country’s most vulnerable sectors, the company provides scholarships and tutoring to students of the institution.

This year, eight outstanding young people from the Foundation received the “Anacleto Angelini Fabbri Academic Excellence Scholarship”, which includes an Tutoring Program, annual financial support and professional support during their studies.

During the scholarship award ceremony, Roberto Angelini, Chairman of the Board of Empresas Copec, highlighted the excellent work done by the Belén Educa Foundation in the health crisis. “Today, more than ever, we need technicians and professionals committed to the development and growth of the country. To this end, it is essential to train leaders with the skills and competencies required by the new times, but also with all those values that will enable us to make a greater contribution to society and build a more reliable and sustainable world for future generations,” he said.

In addition to this initiative, there is the 2021 mentoring program, where 38 executives from Empresas Copec and its subsidiaries

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are currently guiding students in order to support them in their personal, academic and work-related concerns, as well as encouraging them to pursue higher education. This year a version of this program was incorporated in English, so that students have the opportunity to practice and enhance their learning in that language. These activities are carried out in virtual format, due to the pandemic.

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journalistic magazine published by: empresas copec s.a. el golf 150, 17th floor. las condes phone: 2461 7000 legal representative: eduardo navarro beltrán director: rodrigo huidobro alvarado editing and writing: m. francisca riveros novoa journalists: natalia labbé daniela araneda marisol silva proofreading: norinna carapelle photography: luis vargas empresas copec and subsidiaries photographic archives image bank design and graphic production: porta4, design studio translation: paulina munita if you have any suggestions and opinions, please write to us at comunicaciones@empresascopec.cl follow us:

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The opinions expressed by the different authors and contributors in this magazine are the exclusive responsibility of those who express them and do not necessarily represent the opinion of Empresas Copec S.A.