Empresas Copec's Corporate Magazine No. 109

empresas copec's corporate magazine april 2022

Nº109 building trust: the ongoing challenge to be better companies

leading with purpose

THE VALUE OF TRUST

ec and smes: win / win connecting with citizens' expectations knowledge and experience for a sustainable future

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Nº109 the current global crisis of trust is affecting different public and private institutions and, among them, the business world. it is therefore necessary to rebuild and strengthen ties with our employees, customers, suppliers and the communities that embrace us, through values such as integrity, consistency, transparency and empathy. these principles, which have guided our actions for decades, are even more important today, as well as our purpose of contributing to the development of a more sustainable future for all. april 2022 / n° 109

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"let's build trust"

building trust: the ongoing challenge to be better companies.

eduardo navarro, empresas copec's ceo, presents his vision regarding the crisis of trust affecting various institutions, including companies, and how to re-build this important bond.

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leading with purpose

taking reading to new spaces

ec and smes: win / win

copec's "viva leer" program seeks to make a significant contribution to communities by implementing libraries in vulnerable schools and other institutions in the country.

the company and its subsidiaries recognize smaller companies as key players and carry out different initiatives to empower them.

six ceos of empresas copec subsidiaries met in a virtual conversation where they reflected on various topics such as attracting and retaining talent, business confidence and the most relevant challenges they currently face.

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knowledge and experience for a sustainable future

connecting with citizens' expectations

voltex brings electromobility to panama

through bioforest, arauco has maintained an approach to innovation and development based on collaborative work.

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copec's marketing manager, gloria ledermann, explains how the subsidiary has managed to tune in to the demands of a country in transformation.

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“caleta de cariño”: from the soul to the table

arauco line 1: a closure for 50 years of history

acercaredes: going local

orizon launches a novel initiative in which its employees are the protagonists.

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carolina altschwager discusses the need for a more sensitive and humane approach to the pain people experience when dealing with the company.

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this milestone is part of the start up process of mapa, which will begin operations in june 2022.

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this quarter, the annual figures for fiscal year 2021 were published, with historical results and much higher than those of the previous year. this shows a significant recovery in all business lines.

during this period, empresas copec and its subsidiaries achieved important milestones in sustainability, innovation and new businesses.

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the foundation provides tools to entrepreneurs to ensure a sustainable link between arauco and the community.

terpel is a pioneer in its industry by launching the first electric vehicle charging point in this country.

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editorial

— LET'S BUILD TRUST We are living in turbulent times, no doubt about it. One after another, disruptive events have taken place that have made us question what we thought were certainties and have affected our vision of the world. Social crises around the world, including the Chilean crisis, a long pandemic, the war that has made us look at Eastern Europe with fear, among others, are all events that are difficult to predict and have a high impact. When they occur successively, they cause significant changes in so many paradigms that we considered unquestionable.

_ in the photo: Eduardo Navarro Empresas Copec CEO.

Against this background, and in parallel, a trend that does nothing to help rebuild the certainties we need so much has become increasingly evident. The loss of trust in institutions (governments, media, NGOs and private companies) is a phenomenon without borders, and in Chile it affects business to a greater extent than in other countries. In fact, according to the Edelman 2022 Trust Barometer, globally the company is one of the institutions that reaches the highest levels of trust, surpassing many other social agents. However, in the most recent Public Opinion Study CEP Survey, the private sector is in one of the last places of the ranking in Chile.

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Much can be said about the causes of the loss of institutional trust. Factors such as problems in the way and timeliness in which we report; or so many types of mistakes that organizations make, a consequence of their human nature; or, undoubtedly, some specific cases that reflect some inappropriate behavior, which has irritated a citizenry that sets an increasingly high ethical standard; or the lack of empathy with customers and their pain; or the exacerbating effect on negative feelings and opinions of

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social network dynamics; or failures in promises or disappointment of the expectations that are created, to name a few.

The truth is that, in the case of companies, society today demands a role that goes far beyond that traditionally assigned to them.

Providing goods and services of excellence at competitive prices, granting an adequate return to its shareholders is, undoubtedly, insufficient. The company must also promote the development of the talents and dreams of its employees; coexist in a good way with its environment and contribute to improve it; care for and promote its suppliers, and, of course, get involved in the great challenges facing society. In short, to be an active part of the solution to the many urgent needs that afflict the citizens of the communities where we are present.

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At Empresas Copec we are addressing these demands, which has translated into a constant adaptation of our companies to be part of the solutions. A clear example of this is the actions we are taking to face one of today's great challenges: climate change. Copec's strong drive for energy transition is testimony to this, committing, within certain timeframes, to carbon neutrality; to distribute and market a greater share of renewable energies over fossil fuels; and to contribute to the circular economy and biodiversity.

A TREND THAT DOES NOTHING TO HELP REBUILD THE CERTAINTIES WE NEED SO MUCH HAS BECOME INCREASINGLY EVIDENT. THE LOSS OF TRUST IN INSTITUTIONS (GOVERNMENTS, MEDIA, NGOS AND PRIVATE COMPANIES) IS A PHENOMENON WITHOUT BORDERS, AND IN CHILE IT AFFECTS COMPANIES TO A GREATER EXTENT THAN IN OTHER COUNTRIES.

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ARAUCO's efforts in the forestry sector also make a substantial contribution to this goal.

With its carbon neutrality certified in 2020, the subsidiary continues to materialize its commitment to the conservation of large tracts of native forests, which are essential for carbon capture and preserving the balance of ecosystems, as well as valuing its biodiversity, conducting research and constantly generating new scientific knowledge. At the same time, it maintains a policy of permanent reforestation, which incorporates special attention to the care of water resources.

Likewise, as we report in this edition, our companies have forged strong ties with their suppliers, SMEs and the communities with which they interact. The "win-win" relationship that has been established with small and medium-sized companies; the work of ARAUCO's Acerca Redes Foundation, where collaborative work has boosted the business of 450 entrepreneurs; the virtuous circles of joint knowledge and science that Bioforest has formed with universities around the world; campaigns such as Orizon's "Caleta de Cariño"

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that directly target the souls of employees; and the emphasis on building citizen brands, are all initiatives that undoubtedly contribute to repairing damaged trust. And, as our CEOs emphasized in this edition's conversation, with the more than 38,000 direct employees that EC has worldwide, we have also worked to achieve more trusting relationships, through honest and timely internal communication, and where the development of talents and the construction of a transcendent corporate purpose are fundamental.

There are so many things that can be done from within the company. Our "General Interest" article outlines some courses of action. It is clear that we need full transparency in our actions, coherence, personalized links, more dialogue, humility that enlightens in

IT IS CLEAR THAT WE NEED FULL TRANSPARENCY IN OUR ACTIONS, COHERENCE, PERSONALIZED LINKS, MORE DIALOGUE, HUMILITY THAT ENLIGHTENS IN MOMENTS OF ERROR, PROMOTING SPACES OF GREATER COMPETITION, WHICH ENCOURAGES US TO GIVE THE BEST OF EACH ONE, AND ALWAYS OFFERING GREAT CONSUMER EXPERIENCES, NOT ONLY BEFORE, BUT ALSO AFTER EACH TRANSACTION.

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moments of error, promoting spaces of greater competition, which encourages us to give the best of each one; and always offering great consumer experiences, not only before, but also after each transaction. In this way, it will be easier for the business world to continue creating social, environmental and economic value.

Undoubtedly, we must work tirelessly to rebuild trust and, from there, continue to make an enormous contribution to overcoming problems and building a better society. We are part of a sector that has the will, the capacity, the tools and the resources. It does need to be granted spaces, to be given clear rules and

6 _ legal certainties, to be judged in good faith, without prejudice or ideological stereotypes. It needs to be recognized for the great contribution that the company has made so far, and the doors must be opened so that it can be the protagonist of a future with greater well-being for all.

Trust has been key to the development of societies. We need to count again on this fundamental ingredient. Day by day, we will continue to do everything necessary to recover it.

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“THE CRISIS OF TRUST EXPERIENCED IN THE WORLD AND IN OUR COUNTRY INVOLVES COMPANIES AND SHOWS THE NEED FOR A MORE CONSCIOUS, SENSITIVE AND HUMANE LOOK AT THE PAIN THAT PEOPLE EXPERIENCE WHEN THEY RELATE TO THE COMPANY OR ARE AFFECTED BY IT."

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BUILDING TRUST:

THE ONGOING CHALLENGE TO BE BETTER COMPANIES "We want to be a country of citizen companies that create opportunities and contribute to the development of the country with competitiveness, but also with humanity, empathy and that take charge of mitigating asymmetries." (Grupo Compromiso Mejores Empresas, ENADE 2022).

Carolina Altschwager is Founding Partner and Executive Director of Almabrands. She is a Psychologist graduated from the University of Chile, Specialist in Brand Building and Consumer Behavior. Her areas of interest include the development of companies with purpose and social impact, building trust between institutions - society and within organizations. She has been recognized with the Marketing Best 2015 and 2018 awards and as one of the 100 Women Leaders 2007 and 2015 by Diario El Mercurio. She is co-author of the book "Psicología Económica." She is also a member of the board of Canal 13 and Orizon, a subsidiary of Empresas Copec.

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Within the framework of ENADE 2022, a group of businessmen, managers and corporate executives met under ICARE and CPC to reflect and propose ways to move forward in the challenge of developing better companies for our country and each of its citizens.

The starting point was clear, since there is no doubt that companies have an indisputable value for our society. Notable is the large number of benefits they represent: they contribute 96% of our country's GDP, provide more than 50% of the revenues that finance the State, generate more than 7.5 million jobs. In addition, 67% of citizens believe that they are very important for the welfare and development of our society (according to the study "The Company We Want," Visión Humana 2020), and they have a strong capacity to adapt to changes in the environment, which was particularly active in times of pandemic.

However, "the crisis of trust experienced in the world and in our country involves companies and shows the need for a more conscious, sensitive and humane look at the pain that people experience when they relate to the company or are affected by it" (Grupo Compromiso Mejores Empresas, ENADE 2022). With this

approach, and always from a constructive self-criticism, we could identify that there are historical gaps and new expectations that companies have to address in their relationship with the different social actors with whom they interact: employees, customers/citizens, communities and suppliers.

Looking at the gaps and pains requires analyzing the data and indicators that show us the most critical side of the companies, which in terms of size seem less important numbers than the positive indicators, but if we look at them in depth, they have a great impact on the levels of trust that an organization can build.

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Against this background, we can highlight, for example, that in the study Pro Calidad 2021 by Praxis and UAI, 67% of people are satisfied with the service they receive, but 12% are dissatisfied, and this percentage represents approximately 1,700,000 people. Ipsos, which surveys the social problems that most affect citizens, shows that 13% of people consider that one of the problems they face is that consumers are abused by companies. The Cadem Citizen Brands study, meanwhile, shows that only three out of 10 Chileans trust brands and companies.

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From the perspective of employees, we can see that they show 72% job satisfaction, but the levels of trust in their company show 21% distrust (Icreo Organizacional, Almabrands 2021). And if we return to citizens, only 43% of people agree and strongly agree that companies contribute to the common good ("The Company We Want," Visión Humana).

What are the challenges posed by these gaps? How can we move forward in solving these pains and building trust? Beyond the differences that exist in the various stakeholders with which companies relate (customers, citizens, workers, suppliers and communities), there are clear commonalities.

A first and central aspect to generate changes is that we must become aware of the asymmetries that are created in many of the company's relationships, and work to mitigate them. It is a natural phenomenon that they exist in different areas (asymmetries of power, information, size, etc.), but the challenge is to assume and manage them in order to reduce them. Failure to do so has negative consequences, leading to dissatisfaction and mistrust among the different actors

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involved in the company. "Recognizing this reality is the first step to manage them, promoting transparency, traceability and accountability, since, otherwise, they are a silent and permanent source of perception of 'microabuses' that erode trust.” (Grupo Compromiso Mejores Empresas, ENADE 2022).

A second aspect closely related to the previous one is that we need to strengthen the humanistic mentality of the company, its capacity to build links, dialogue and instances of engagement. We need to mobilize organizations to relate to each other in a different way.

Today people expect to be an active part of companies, to be considered in their interests and concerns, and this implies systematically creating spaces for participating and closeness to get to know each other, listen to each other and collaboratively seek solutions to the pains or unresolved needs of each of the stakeholders. This is the basis for advancing in the development of trust, an essential ingredient for sustaining relationships.

A third aspect that responds to one of the most significant changes in the expectations of organizations is to enhance the support and collaboration of the company in the creation of public value along with the creation of economic value. In their future development strategy and in their daily way of doing things, companies should be seen as committed to their environment, striving to mitigate the negative externalities they produce, while at the same time generating wealth and satisfaction for their customers, but taking into account unresolved social needs and the limits of nature and the planet.

9 _ _ in the photo: Carolina Altschwager Founding Partner and Executive Director of Almabrands and Director of Orizon.

Finally, it is essential to continue promoting the development of competitive markets. Healthy competition is what permanently stimulates companies to be better day by day, innovating to make the experience they deliver to their customers more satisfactory, strengthening the relationship they have with their employees, integrating more robustly into the experience of being a community with the environment and caring for the limits of our own planet.

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The above aspects place us in a more conscious and attentive mentality about the relationships that companies are building in their work to give sustainability to the businesses that mobilize them. But if we go further, this change of mentality invites us to make clear commitments in certain areas: · Prioritize initiatives that focus on active management of gaps, pain and impacts. Focus on the gaps, put a face to them and continue to measure in order to be able to manage. What is not measured does not exist, and what is not managed only tends to decay. We must therefore avoid having opaque areas in the world of pain that we cannot see.

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CONTRIBUTION OF COMPANIES IN CHILE

· Commit to defining and managing companies with purpose, along with measuring their social and environmental impact on citizenship.

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96% of our country's GDP

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50% of the income that finances the State

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7,5 million jobs

CORPORATE COMMITMENTS

Promote the development of instances of dialogue, collaboration and systematic engagement.

· Promote the development of instances of dialogue, collaboration and systematic engagement with workers, suppliers and communities, which allow progress in building trust and spaces for shared value. At this point, it is also a challenge to be able to measure and manage the trust of all stakeholders that relate to the companies. · Integrate all stakeholders as key actors for the development of the organization, designing, explaining and delivering a value proposition for each of them.

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Prioritize initiatives that focus on active management of gaps, pain and impacts.

Commit to defining and managing companies with purpose, along with measuring their social and environmental impact on citizenship.

Integrate all stakeholders as key actors for the development of the organization.

In order to move forward in these challenges, it is important to consider that our greatest enemy is to be complacent. We may be doing things well in many areas, but there is no doubt, looking at the indicators, that we can do much better, and that not taking charge of the gaps destroys trust. And in the current environment, which is more critical and demanding, this is a call with a sense of urgency.

The invitation is to join a shared dream to be better companies and build trust. "We want to be a country of citizen companies that create opportunities and contribute to the development of the country with competitiveness, but also with humanity, empathy and that take charge of mitigating asymmetries. We want companies that build virtuous relationships and bonds of trust with all the people with whom they relate to generate benefits that put the common good of our society at the center." (Grupo Compromiso Mejores Empresas, ENADE 2022).

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SIX CEOs OF THE GROUP'S COMPANIES MET IN A NEW EC VIRTUAL CONVERSATION.

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CEOs CONVERSATION

LEADING WITH PURPOSE In less than three years, Chile and Colombia have faced a social outbreak, the world has suffered the ravages of a pandemic and today is witnessing a global war. Added to all this is one of the biggest threats in the history of humanity: the fight against climate change. These are challenging years, in which business leaders play a key role.

In a virtual conversation, CEOs of Empresas Copec subsidiaries reflected on these challenges and on topics such as the need to rebuild trust and the importance of sustainability in organizations.

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This new meeting brought together Oscar Bravo, Joaquín Cruz, Cristián Infante, Arturo Natho and Rigoberto Rojo, CEOs of Terpel, Abastible, ARAUCO, Alxar and Copec, respectively. The discussion was moderated by Natalia Labbé, Head of Communications at Empresas Copec.

— communication and trust According to the Edelman Trust Barometer 2022, globally the company is the only trustworthy institution, ahead of NGOs, the government and the media. However, in Chile the situation is different.

In the latest CEP Public Opinion Survey, the private sector is at the bottom of the ranking. Analyzing this data, several reflections emerge from the CEOs. Joaquín Cruz, CEO

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of Abastible, says: "I think there is a social and political context to consider. Some people are disappointed and frustrated because they have fair aspirations that have not been fulfilled, or not as quickly as everyone would like. In this context, unfulfilled expectations that do not solve the underlying problems obviously generate an atmosphere of distrust not only with companies, but with institutions in general”.

Erwin Kaufmann, CEO of Alxar, adds that in Chile there have been some cases of abuse in certain industries, where consumer standards are below those of other developed countries.

The executive explains that in addition to these _ ceos conversation summary video

factors there is also a communication problem. "I believe that there are many people who are surprised when they learn about the positive actions taken by companies. We have always had the idea that you have to have a relatively low profile, which, in the end, with the Internet and social networks, today does not exist. It is impossible to have a low profile, because images are still being built, even if you don't want them to be, so the things you do that are positive must be communicated and communicated well".

Terpel´s CEO, Óscar Bravo, agrees. "There is no doubt that we lack communication strength.

I, at least, was raised under a structure where results speak for you and you don't have to 'sell yourself'. But today we are in a world where communication is an absolutely fundamental element”.

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far beyond simply benefiting shareholders; we are a contribution to society, to the workers, to economic development, to education, in other words, there are a number of areas where companies do indeed have an impact and where they make a tremendous contribution.

And it is our obligation to promote this and make it known”.

Infante also highlights the role that social networks have played as catalysts of this distrust towards the business sector. "Today, anyone with a telephone has the power to say something that may be true or, many times, as it happens, be false, and discredit this or that person or institution. And that has led in all countries, not only in Chile, to a polarization of society, which finally makes some see certain people as the good guys and others as the bad The CEO of ARAUCO, Cristián Infante, adds, "We, as leaders of our organizations, have an important responsibility to let people know what we do. I always say that at ARAUCO, when people get to know us, when people come and learn about what we do, they change their opinion in a positive way. We have always been a rather low-profile company and I believe that we have to move forward, and we have already done so, but we have to continue opening up and showing that the contribution of our companies goes

THE EXECUTIVES EMPHASIZE COMMUNICATION BETWEEN COMPANIES AND THEIR STAKEHOLDERS AS A KEY FACTOR IN CONFIDENCE BUILDING.

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guys, and that effectively deteriorates trust in institutions, because socially you stop believing, in some cases with reason and in others without reason to do so”.

Regarding this point, Copec´s CEO, Arturo Natho, says: "Social networks are creators of a reality and, as such, they seek to generate content and stories anchored in behavior and conduct, therefore, mistakes, unfulfilled promises and inconsistent speeches become the best evidence for the viralization of stories and, in turn, this disconnection is what also generates distrust, an issue that companies have to deal with. We receive in our facilities a citizen who is judging us with a 360° view, not only for the product or service we offer, but also for our conduct, for how we contribute to society, how we take care of our workers. Therefore, this citizen demands excellence from us, an attitude of service, humility, because we can make mistakes, but we can also make up for them. This attitude speaks of empathy, of connection with others, essential attributes today”.

The CEO of Orizon, Rigoberto Rojo, also has a view on this greater demand on companies. "Companies are required to do much more than the rest of society, because it is understood that they are an entity different from people.

When you listen to citizens' opinions about companies, they see them as a superstructure and that is because they have resources and more capabilities than even some government institutions, so more is demanded from us. We also have to understand that today in Chile society is moved by emotions.

People question technical data even when it is supported by scientists. So,

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I think we have to learn as a company to approach people more in relation to the emotions that we generate and the emotions that are present in the country, and not only with hard and scientific data”.

According to Óscar Bravo, the situation in Colombia, regarding business confidence indicators is more favorable than in Chile. "Not because we are better. I think it is because our country has suffered, for more than 50 years, war and drug trafficking, and companies have made a great effort to fill certain gaps of the State, in infrastructure, in education and in several services. So private companies are very well positioned in terms of confidence. I don't think we are doing things very differently; I think there is an issue of context that has really made us turn to contribute genuinely to society and to the country. I also believe that the pandemic turned the Colombian business community to a level of solidarity never seen before in terms of maintaining employability, of contributing to the workers and their families, of trying to guarantee certain services. And I think that this also helped us to position ourselves, but also to strengthen a conscience of true social contribution, of not thinking only, which sounds cliché, in economic return to shareholders and investors, but to genuinely contribute to the environment”.

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— inspire and mobilize According to the afore mentioned Edelman study, 81% of respondents believe that CEOs should take a visible stance on public policy issues with external stakeholders or audiences. In addition, 60% of employees expect their CEO to speak out on controversial social and political issues that concern them.

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ONE OF THE CONCEPTS THAT WAS STRONGLY EMPHASIZED AND REITERATED DURING THE CONVERSATION WAS THAT OF "PURPOSE".

When asked about the role of leaders in building trust with different stakeholders, the concept that was repeated most often during the conversation was "purpose”.

Arturo Natho said: "Companies have a social role that goes beyond the success of the business, or the profitability achieved. Companies have to share value with our environment and with society in general and assume that without sustainable development we will not be viable. At Copec, our purpose is to exist to promote the development and movement of people, companies and the country. And this conviction is what inspires and moves us as an integral part of society, to which we contribute not only economically, but also environmentally and socially”.

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ambassadors in your communication have to be your own employees. So, it is key to report effectively what is the contribution of the business to society, and we can call that purpose, and start with the employees. That is the first layer and then go outward”.

Today a leader has to be:

ETHICALLY IMPECCABLE

KNOW HOW TO COMMUNICATE

For his part, Rigoberto Rojo points out that a key role of leaders is to know how to understand the context. "To be able to perceive the moment in which we are, our markets, how our country is, to understand in detail what is happening in the communities where our operations have an impact. Having a good understanding of the context is what allows us to define our role, what we are going to do as a company, how we are going to integrate everything we see happening with the needs of society. Companies are no longer just an internal door, today they are part of a social fabric. So, reading well is the first thing. The second is to take action, to understand that we are a player

BUILD TRUST CEO

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81%

Joaquín Cruz adds to this idea: "A leader has to be an ethically impeccable person, you have to generate trust, know how to report, have a vision, a dream, in short, you have to inspire. As long as you are able to inspire a group of people, everything is fine. In relation to the purpose, we at Abastible have sought to review and rediscuss it. If you really manage to have a powerful purpose, shared by society, that really makes society better, I believe that this is a path that can be very effective in generating trust, and that requires your company to inspire not only your team, but also all members of society”.

Believe CEOs should take a position on public policy with external stakeholders or audiences.

HAVE VISION

INSPIRE

Likewise, Cristián Infante emphasizes the need to share the company's purpose with its employees. "At ARAUCO we have approximately 40,000 direct and indirect employees globally, and one must communicate what the company is, the business model we have, and our purpose. Your first

EDELMAN STUDY

60% Expect CEOs to talk about controversial social or political issues that concern them.

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not only in economic terms in our communities, but that we also have to know how to develop the opportunities that exist within them, and based on that define a responsible strategy, of deploying resources, to be able to sustain and address the needs of the markets and our communities”.

On this same point, Erwin Kaufmann highlights the concepts of empathy and transparency. "It is very important to show empathy for what is happening in the environment in which we operate. We may be in business, having a good result, but there may be a drought in the area. So, we have to understand what is happening around us and be part of that community. And another term that has also become more and more important is transparency to inform if we have a problem or if we have made a mistake, and I think that helps to increase trust in companies, which today is so deteriorated. I believe that this can lead to an important change in the vision that communities have of how companies contribute to the country and to development”.

CEOs AGREE THAT COMPANIES HAVE A SOCIAL ROLE THAT GOES BEYOND THE SUCCESS OR PROFITABILITY OF THE BUSINESS.

16 _ In addition, Oscar Bravo highlights the importance of consistency in those who lead companies. "Many see us as a good role model, as a person with a position where they would like to get to, and that generates a huge responsibility of which sometimes one is not aware. I believe, then, that consistency between what we say and what we do is essential to motivate and mobilize people. We must also ask ourselves: What are we here for?

Surely, we want to leave a legacy and we want to contribute much more than just generating cash flow, a dividend and obtaining a return

on a project. I believe that this is one of our greatest responsibilities, to be able to permeate the team, so that they have that feeling of belonging and desire to do things for the common good and so that everyone can grow.

Hence the value of purpose”.

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GLOBALLY, ONE OF THE MOST IMPORTANT CHALLENGES FACING CEOS TODAY IS ATTRACTING AND RETAINING TALENT. outdoors, other hobbies, and for that they need time.

Added to this is the fact that they want to work in a company with a purpose”.

— enhancing talent According to the recently published Fortune/Deloitte CEO Survey, one of the biggest challenges facing CEOs today is the attraction and retention of talent. In this regard, Empresas Copec and its subsidiaries have a variety of policies and plans to enhance the development of its more than 38,000 direct employees worldwide.

On this point, Erwin Kaufmann comments: "Until a few years ago, perhaps the two main focuses for professionals joining our company were basically professional development and remuneration in line with the market. But today other things have been added: quality of life, i.e., people don't just want to work, they want to raise a family, enjoy sports, the

Óscar Bravo adds: "And that is where flexibility plays an important role. We must be aware that we have to evolve in the forms of interaction and work models, because clearly a generation with different needs and desires is coming. In this trend of digital transformation and a very accelerated technological adoption is where we have experienced the greatest challenge in attracting talent, because that type of talent that we want to attract to the company has a different way of working”.

Arturo Natho shares this view: "For new generations, flexibility is a must, because it implies a certain freedom.

And young people are looking for that: flexibility in schedules, differentiated benefits that allow them, depending on their interests and preferences, to choose”.

17 _ Cristián Infante says: "To retain talent, first you have to have a good working environment, so that people feel comfortable and supported.

And secondly, there must be internal mobility, so that they feel that if they do their job well, they will have opportunities within the company.

For that, one must have good communication with employees, know the people and be able to build teams that are really in tune and work together. This generates a good climate, allows you to detect where

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the talents are and give them internal mobility, because if the talent does not have internal mobility, it will most likely end up going elsewhere”.

Joaquín Cruz emphasizes how important it is for an organization's employees that it provides benefits not only from a labor or professional perspective, but also from the inspiration and value they can contribute to society through their participation in it, which ultimately makes people enjoy and have a good time at work. "Time has taught me that it is very important to enjoy what you do. Having a good time, I think, is key. And

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for that it is essential to add an inspiring project, closely associated with the company's purpose; I think that is the future, that is what attracts young talent: a job that gives you much more than the professional dimension, and we see that as closely linked to having a powerful and profound purpose for society”.

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Arturo Natho agrees: "I believe that people who feel that they generate a positive impact with their work are more motivated.

That is why it is necessary to understand the whole phenomenon and not section it. For example, Copec is a tremendously exposed brand, because it is part of the daily life of Chileans. Doing well in the stations, in the plants or in the fields implies that there is a team behind it that did well... These achievements are pure motivation for the people who work in the company and, therefore, these are talents that stay and go for more”.

Rigoberto Rojo tells that in Orizon they created an area called "The worker experience". "We hire a lot of temporary people, so their experience is very important for them to come back to work with us the following year. In addition, I believe that humanizing the employee's relationship with the company and with the rest of the people is something we are very dedicated to and I think it is key to being able to retain talent”.

— sustainability, a matter of balance A very key issue for Empresas Copec and its subsidiaries is ESG factors (environmental, social and governance).

Currently, each company has a strategy that places sustainability at the center.

Regarding this issue, Cristián Infante highlights the concept of "balance". "We must have safe, environmentally friendly operations, but at the same time operations that effectively allow us to maintain long-term subsistence of the company.

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This balance is a central part of our work and every day the part that goes beyond the operation itself is taking on more weight and it is interesting to see how one begins to increase the time dedicated to ESG issues”.

Arturo Natho agrees: "There must be a balance.

A company can disappear for not taking care of environmental, social and governance issues.

For this reason, at Copec we have defined that sustainability is at the heart of our business, we have declared it to be transversal and indispensable. We have a Sustainability Policy under ESG criteria, a strategy and an annual action plan that allows us to carry out the transformation we have defined”.

Erwin Kaufmann comments that these standards are also critical in the mining industry. "When one studies a potential project, one starts with this and then one goes to the profitability indexes, because otherwise it is impossible for it to be developed. For us, ESG issues are key, they are requirements imposed on us by law in many areas, but also by society.

In our industry, I would add a fourth element: safety, which in our operations is as important as the other areas of sustainability. The world is changing to such an extent that complying with these standards is and must be good business, not in the short term but in the long term.

In this regard, Rigoberto Rojo highlights the importance that investors give today to sustainability. "Today there are very large investment funds that make billions of dollars

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available to companies with good ESG standards. On the other hand, consumers are willing to pay for a product with a low water footprint or a low carbon footprint, for example”.

For his part, Joaquín Cruz says: "ESG is no more and no less than what society asks of you, and if you have a good purpose, you will achieve the balance that has been talked about. Purpose is not a marketing campaign, it is not corporate social responsibility, nor is it sacrificing profitability. The virtue of having a shared purpose with society is that society will be happy that you generate more financial resources because of the social commitment you have through your purpose. I believe that it all boils down to how you insert yourself into society and that is defined by a good purpose, which has to be shared with it and must be profound, in the sense that you have the intention of improving the society where you live”.

19 _ The executives agree that this issue is key to their management and that, although the Angelini Group's companies have been characterized since their beginnings for managing these issues, this commitment has been evolving and deepening. Óscar Bravo concludes: "I believe that the organization, not only Terpel, but I can also talk about Copec and what I know about Empresas Copec, has had it recorded in its DNA for many years, long before ESG factors became something so important and new. These three pillars have been present here for many years, with different degrees of maturity, development and interest, but under the conviction of acting well, that everything we have around us belongs to society as a whole. I am also convinced that these pillars must undoubtedly be tied to the company's purpose and that they have many economic benefits, attracting talent, community relations, that is, they have an immense relevance in terms of sustainability and long term value”.

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what is the most important challenge you currently face as ceo?

"Climate change, by far. Reducing greenhouse gas emissions to curb it is a global decision and we decided to transform ourselves to be part of this challenge. We are committed to the energy transition and to our role in this transition.

For this reason, last year we published our Climate Change Declaration, in which we set out the route to achieve carbon neutrality by 2030. We have many challenges, but this is undoubtedly the biggest one”. arturo natho CEO of Copec.

"For the mining sector climate change is clearly the main challenge. Water, in particular, is a big issue in the industry.

For our operation we use sea water and, in the future, there are several technological developments that seek to take care of the environment and to ensure that operations do not impact the environment. It is a fact that the development of clean technologies, such as electric cars, solar or wind energy, among others, will require much more copper, which should encourage the development of more mining operations, with the respective care”. erwin kaufmann CEO of Alxar.

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"At Terpel, our great challenge has to do with energy transition and decarbonization, and that is where our focus lies. We must not only adopt it, but also support governments in promoting it in the countries where we operate and be real agents of change to lead this transition". óscar bravo CEO of Terpel.

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"The greatest challenge for Abastible is for our company to integrate and play a prominent role in the development of our society. I believe this is the most important challenge and, therefore, all our focus seeks to have a deep and shared purpose for society”. joaquín cruz CEO of Abastible.

CLIMATE CHANGE, ENERGY TRANSITION AND EFFECTIVE COMMUNICATION WITH STAKEHOLDERS ARE KEY CHALLENGES FOR THE LEADERS OF EMPRESAS COPEC GROUP.

"The main challenge we have at ARAUCO is to make our company well-known. We have a business model that is extremely virtuous and that is totally in line with what the world expects of the future: trees that capture CO2. In fact, we are carbon negative, rather than carbon neutral, and we replace cement, concrete, textiles, fossil fuels, many things that have an extremely high carbon footprint. Therefore, if we as ARAUCO are able to publicize how virtuous our business model is, I believe that society will begin to value the contribution we make as a company”. cristian infante CEO of ARAUCO.

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"In the fishing industry we have a reputational challenge.

We must improve our reputation by making visible all that we contribute to society. And as a company, this challenge has to do with technological change. We have to know how to take advantage of all the benefits and opportunities generated by digital transformation and automation to address a problem that today seems specific, but that I believe is long-term: the lack of people available to work in our industry. Consequently, we have to take advantage of technology to make up for the labor shortage, creating wellpaying, secure jobs”. rigoberto rojo CEO of Orizon.

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TAKING READING TO NEW SPACES Through the "Viva Leer" Program, Copec seeks to make a significant contribution to the communities by implementing libraries, furnishings and book collections in some of the most vulnerable schools in the country.

Likewise, the company is developing a pilot project, whose objective is to replicate these spaces in public places other than schools, such as foundations, hospitals, rehabilitation centers and shelters, among others.

"We want to encourage reading, and to do so we are looking for new formulas that allow us to reach more places. One of them is reading digitalization and another is this new format 'Espacio lector', a novel proposal that also allows us to generate social value in communities other than schools," explained Alejandro Palma, Copec's Corporate Affairs manager.

Since this program was created a decade ago, the company has delivered 105 complete libraries, including furniture, 2,000 titles and accompaniment and follow-up by Fundación La Fuente, to encourage children and young people to get to know the world of reading.

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105

2.000

FULL LIBRARIES

TITLES

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empresas copec and smes

EMPRESAS COPEC AND ITS SUBSIDIARIES ARE IMPLEMENTING VARIOUS INITIATIVES TO BOOST THIS IMPORTANT ECONOMIC SECTOR.

WIN / WIN

The Company and its subsidiaries recognize smaller companies as key players, both for themselves and for the country. In this line, and each one from its own reality, ARAUCO, Orizon, Abastible and Copec carry out notable initiatives that seek to empower them from perspectives as diverse as mentoring, financial support and greater openness, among others.

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Small and medium-sized companies are strategic players for Empresas Copec's subsidiaries and, in many cases, they make up more than half of its total suppliers. In addition, due to their intrinsic characteristics, they have greater flexibility, speed in decision-making and adaptability. For this reason, strengthening them is a real "win-win" situation. "Here we all have to win: SMEs, ourselves, workers, the country," says Daniça Kusanović, Copec's Deputy Purchasing Manager, a phrase that also sums up the feelings and actions of the subsidiaries ARAUCO, Orizon and Abastible, all of which have a vast experience in this area.

These companies are currently implementing projects and processes that seek, from different points of view, to strengthen this important economic sector in Chile.

_ in the photo: Signing of the first contract for the "Juega Local" program in Mariquina.

Left to right: Rodrigo Benavente, MRO ARAUCO Project Manager; Claudia Álvarez and José Álvarez, both from Ferretería Motosierras El Bosque.

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— arauco plays local “Juega local" is the name of the shared value program that ARAUCO has been developing since mid-2019, whose purpose is to strengthen the economies of the territories where the company has a presence, facilitating the commercial interaction of local businesses and producers with the company, its workers and contractors. "ARAUCO is a regionalist company in essence; it was born in regions and continues to be very present. That is why we are committed to driving the local economies of the places where we have forestry or industrial operations, and there is a transversal commitment to this," says Marcela Wulf, ARAUCO's deputy manager of Public Affairs in the Los Ríos Region.

The initiative has three axes: Connect, Accompany and Add. The first is aimed at making the crossroads between the local supply of goods and services and the requirements of the industry; the second is to collaborate with SMEs to strengthen their management capacities and enable them to participate in bidding processes that lead to a commercial relationship; and the third is to bring together workers, neighbors and other companies so that they bet on local commerce.

In the second step, the AcercaRedes Foundation, which was created in 2012 with the support of the subsidiary, is heavily involved.

"AcercaRedes, in alliance with universities, business centers and other institutions, works to strengthen the management capabilities, processes and quality standards of small businesses and entrepreneurs. Because that is a fundamental challenge: your internal customer must be satisfied", Wulf explains.

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For Rodrigo Ulloa, the latter is key. He leads Maestranza Famantec, which was founded by his father in 1998 upon his retirement from ARAUCO. In 2010, after the unexpected death of his father, Rodrigo took over. At the time, he was also working in the forestry industry, and today he is grateful that he was given the opportunity to demonstrate that he was not only a good maintenance mechanic, but that he could also manufacture industrial parts with precision.

"They gave me the opportunity to continue with the workshop, which was fantastic for me.

They trusted me," he says from Carampangue.

After a few years of much learning, he signed his first framework agreement in 2015. Marcela Wulf highlights this important milestone. "The idea is that they can opt for this type of contract, because in addition to spot or occasional purchases, we want more framework agreements to materialize that give them a long-term look at the project and our linked entrepreneurs." Famantec is currently in its second such contract and is participating in the process for a third. In addition, they carry out other specific works for the company, which account for 80% of their business. "I was able to earn their trust because I was able to move forward with the workshop and provide them with the service they really wanted, so in this

_ in the photo: Marcela Wulf ARAUCO Deputy Manager of Public Affairs, Los Ríos Region. case I feel grateful to ARAUCO, because they gave me the opportunity to grow, to have people and a sense of well-being.

ARAUCO opened its doors to me and I responded as they wanted me to," says Rodrigo Ulloa.

The dream going forward is that this experience can be replicated in the more than 100 companies and 220 hosting services that are now part of "Juega Local". "In the last year, 40% of the goods and services that ARAUCO required were provided by more than 2,800 small and medium-sized companies throughout Chile. Our goal is for that figure to grow even more and to do so by incorporating small neighborhood businesses, the local hardware store or the family business, all of which add up. That is the focus of ‘Juega Local’, collaborating so that these businesses in the districts where we are present grow, consolidate and become capable of selling to any company in the country," says Marcela Wulf, adding that they are designing a reporting system that will allow them to report the progress of the initiative to all the collaborators.

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"WE DON'T JUST WANT SPOT OR OCCASIONAL PURCHASES, BUT RATHER FRAMEWORK AGREEMENTS THAT GIVE A LONGTERM VIEW TO THE PROJECT AND TO OUR RELATED ENTREPRENEURS."

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This is materialized in key issues, such as payment within 30 days, which is now a legal requirement, although, as Raúl Burgos, owner and general manager of Bursan, a company that provides cleaning and sanitation services in Coronel and Talcahuano to Orizon, explains, this is not always complied with by the principals due

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a contractors' yard, with containers and office areas. In addition, 2022 began a survey to get feedback from contractors. "We want to know their perceptions and where we can detect major shortcomings. We want them to tell us how they feel about issues such as treatment, for example," adds Chacín.

— orizon: a symbiotic relationship In 2021, 973 of Orizon's suppliers were small and medium-sized companies, accounting for 56% of the total.

Alejandro Chacín, the subsidiary's sourcing deputy manager, explains that many come from the Biobío and Coquimbo regions, where its plants are located. "For us, as for anyone, it is a good strategy to have SMEs, especially local ones, because at the end of the day, when there has been social unrest, for example, or when certain things have been paralyzed, they are there, they support you. It is a symbiotic relationship. Therefore, for us, getting closer to them is a strategic decision," says the executive.

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_ in the photo: Alejandro Chacín Orizon Deputy Procurement Manager.

to lack of supervision. However, says Alejandro Chacín, the subsidiary has been able, since before the law came into force, to comply with this regulation. Chacín adds that during 2021 they conducted an internal analysis of Orizon's relationship with all its suppliers, the result of which was the determination to use a single standard in terms of infrastructure for internal and external collaborators. "We are providing more restrooms, improving the ones we have, remodeling them completely, including more dressing rooms, more rest areas and lockers.

We also remodeled the entire casino recently."

They are also considering a project to establish

Raúl Burgos says that his six-year experience with the subsidiary has been very positive.

"Regarding the treatment, it has always been the same in terms of seriousness, compliance with payments and invoicing. I feel that there has been a lot of mutual respect," he says from Concepción. He especially highlights the fact that Orizon has been enhancing the development of Bursan, which was founded in 2007. "Orizon has helped us grow. And the key factor is that they look at us with importance; we feel that we are an ally." During the pandemic, policies such as the IFE and pension fund withdrawals strained the labor market, resulting in increased hiring costs. "Orizon helped us. Otherwise, we wouldn't have been able to maintain services, and we had already raised costs by 10% and then 20%, and when we still weren't getting anywhere, for the next 10% we had to ask Orizon for help. And we were accepted. For this reason, Burgos assures that this company occupies a relevant place in his life. "I'm happy with Orizon, it's one of my great loves."

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— abastible: growing together In the distribution of liquefied gas, those who bring energy to millions of homes are vital.

This role is fulfilled together with Abastible by around 1,200 distributors who are small or medium-sized companies that have grown hand in hand with this subsidiary that promotes the business and development of these actors.

Álvaro Sepúlveda, distributor of the company since 1998, says that he has always been very well accompanied by Abastible. Borne in the town of Parral and "adopted" by the Los Lagos Region, where he arrived attracted by the salmon industry's job offer, unemployment led him to become an entrepreneur 25 years ago and, going forward, his ambition is to progress. "My dream is to set up more points of sale in different parts of the city, always with Abastible. Besides, it is a brand that sells well; people here in the south prefer it."

That is precisely the energy and drive that the company looks for in its distributors, says Álvaro Lizana, Abastible's packaging sales manager. His team's role is to give distributors the support they need to unlock their potential. "This industry is very competitive because, as distributors are the owners of their own enterprise, their own company, the more they sell, the more they earn.

The independence, the focus on growth that each one of them has makes them constantly look for opportunities."

_ in the photo: Álvaro Lizana Abastible Packaging Sales Manager.

"THE VIRTUOUS THING ABOUT THIS RELATIONSHIP, AND THIS IS WHAT WE HAVE BEEN BUILDING OVER TIME, IS THAT IT IS ONE OF TRUST."

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He adds: "I am convinced that successful strategies happen when you work with partners who have a similar vision and where each one fulfills the role that corresponds to him. I believe that the relationship that Abastible has with distributors is very virtuous, because the company admires and respects the knowledge and work they do. At the same time, they recognize the support that the company gives them in their development and growth as SMEs. They trust us to keep moving forward. The virtuous aspect of this relationship, and this is what we have been building over time, is that it is based on trust. I have a lot of confidence in our distributors and they have a lot of confidence in us. That is key," concludes Álvaro Lizana.

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INITIATIVES OF EMPRESAS COPEC AND ITS SUBSIDIARIES:

— copec: mobilizing smes is mobilizing the country Thirty-one employees from different levels and areas of Copec are about to debut as mentors of 47 small and medium-sized supplier companies. All of them are part of the "Compromiso Pyme Copec" program, which is headed by the Administration and Finance Management, through the Purchasing Deputy Management. Daniça Kusanović, head of the latter unit, says that the initiative was born in 2020 as a challenge promoted by the company's CEO, Arturo Natho. The objective is clear: to ensure that these companies develop, increase their turnover with Copec and grow with the necessary help to improve their management. This is also key for the subsidiary, given that 64% of its contractors, corresponding to 2,684 entities, belong to this segment.

ORIZON

ARAUCO

“JUEGA LOCAL” PROGRAM

PROMOTE LOCAL SMES

With the support of the Unión Emprendedora social platform and EY, Daniça says that they first conducted an internal analysis to identify potential participants according to parameters such as categories of service, quality and length of commercial relationship. Subsequently, they invited Copec employees to become mentors. "We defined that, given the great variety of needs that our SMEs have, we will set up mentoring teams and our CEO added a new

ABASTIBLE

DISTRIBUTOR SUPPORT

COPEC

PYME COPEC COMMITMENT

These initiatives seek to strengthen local businesses through mentoring, financial support and greater openness, among others.

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_ in the photo: Daniça Kusanović Copec Purchasing Deputy Manager.

challenge: that the mentors should be from Copec, so that they can get directly involved with them, get to know them, see how they work and be able to help them from their experience," says the executive.

The goal was to reach 20 interested parties, but the internal reception exceeded that expectation. During April, they will be trained by Chile Converge, an organization specialized in the field, to later begin their mission. To this end, teams will be set up which, side by side with the selected entrepreneurs, will detect needs and draw up an action plan, which will be followed up during this year. Mentors, says Kusanović, will not always have the answers to problems and, in that sense, they must play a catalytic and facilitating role, taking advantage of the great professional diversity in the same subsidiary. _ in the photo: First training session for Copec employees to become mentors for entrepreneurs.

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Kusanović explains that this program has a three-year horizon and expects to have indicators to measure the main objective by the end of 2022. "We do not expect to change everything from one day to the next, because we know that it is a long-term work: to demonstrate that we were able to mobilize these SMEs to get them to grow through an increase in their turnover and an improvement in the quality of their service." Consulting firm EY has a similar experience in Brazil, where the results were seen over a five-year period. "We plan to start our measurements at the end of 2022, then have an annual follow-up and, hopefully, start adding new SMEs in this process," adds the executive. She also has another aspiration: that the project can be replicated. For this reason, they are methodically documenting the experience in order to have an exportable model. "Imagine if all large companies did something similar, we would make a substantial change," says Kusanović, to whom this challenge has given a special flavor to her work. "I am here to supply the company, it is true, but when you realize that you work in a company like Copec, which if it

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stays operational many other companies will too, even more so in the current context and after a pandemic, then I am not just buying, it goes a bit further and there is a responsibility behind that. I believe that the team feels this way today and sees in this project an opportunity to do different things that not only benefit us, but all of Chile, and we are convinced that this is the way forward and that is what we declare in our purpose."

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BIOFOREST, ARAUCO'S SCIENTIFIC AND TECHNOLOGICAL ARM, WAS CREATED MORE THAN 30 YEARS AGO TO CREATE AND APPLY KNOWLEDGE TO THE PRIORITY NEEDS OF THE BUSINESS.

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BIOFOREST:

KNOWLEDGE AND EXPERIENCE FOR A SUSTAINABLE FUTURE Through this center of excellence and research, ARAUCO has maintained a focus on innovation and development based on collaborative work with universities and national and international technology centers.

As part of its strategic challenges, the company seeks to promote R&D projects that contribute to the challenges of the business and, at the same time, make a concrete contribution to the enormous climate crisis we face.

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That research and development are essential to ensure long-term sustainability of a business is nowadays almost an imperative. That it is essential to invest in studies and in the creation of knowledge should also not be open to discussion, and this is how many countries have understood it. That in order to achieve better results in any task or purpose, collaboration is key, is becoming clearer every day and it is a path in which Chile is taking important steps.

Public institutions, private companies, academia and other actors in society have the capacity to jointly create a virtuous circle of learning and growth, achieving benefits that go far beyond the scope of action of each.

At ARAUCO, for many years we have been convinced that this symbiosis is necessary and constitutes a sure path toward the integral and sustainable development of the country.

In this vision, the contribution of universities is crucial, especially when it comes to projects that require the application of specialized techniques or science-based research and development methodologies.

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This is precisely the type of initiative carried out by Bioforest, ARAUCO's scientific and technological arm, created more than 30 years ago with the objective of generating and applying knowledge to the priority needs of the business.

Since its early years, Bioforest has maintained an R&D focus that over time has expanded from the forest to the pulp, panel and timber businesses. Along with this growth, the institution incorporated researchers from different universities, who were part of scientific, academic and technological networks in Chile and other parts of the world.

Thus, the network of technology centers has also been strengthened, to work in the search for solutions and proposals to address issues related to

SPECIES IMPROVEMENT, CARBON NEUTRALITY, ECOLOGICAL CONSERVATION AND RESTORATION, WATER CRISIS, BIOTECHNOLOGY AND SEVERAL OTHERS ARE PART OF A LIST TO WHICH A NEW CHALLENGE IS ADDED EVERY DAY.

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the ecosystem and the need to manage them in a profitable and sustainable way at the same time. Species improvement, productivity, carbon neutrality, conservation and ecological restoration, water crisis and several others are part of a list to which a new challenge is added every day.

In this regard, Sebastián Fernández, ARAUCO's Research and Development Manager, says that "through our research center we apply science and technology to priority business needs with a focus on productivity and sustainability, in addition to permanently generating a better understanding of the species found in our heritage."

He also adds that "the company has a strong conviction that the best way to combat climate change is with more nature. The world has been clear and has presented us with complex challenges that require real commitments that meet the demands of climate urgency. In this sense, trees and timber are key to making progress on this issue."

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BIOFOREST CURRENTLY HAS A TEAM OF MORE THAN 50 RESEARCHERS WHO ARE CONSTANTLY SEARCHING FOR NEW TECHNOLOGIES AND PROCESSES.

— the win-win of knowledge Bioforest currently has a team of more than 50 researchers who are constantly searching for and developing technologies and processes, which are evaluated based on priorities and strategic value for the business. "In this search, we are in very active contact with different universities in Chile and the world," explains Fernández.

The executive points out that, in addition to collaboration in R&D projects, the link with higher education institutions is through support for thesis work and professional internships.

Another avenue opens up when Bioforest researchers are pursuing their doctorates, "which not only allows us to have highly qualified professionals, but also to maintain direct contact with universities in Chile and the world," he explains.

— facing the challenges Through this collaboration, ARAUCO takes advantage of the knowledge and technologies that universities and technology centers have developed over time, applying them to projects and initiatives that ultimately improve the company's productivity and the quality of life of thousands of people. For their part, academic institutions benefit from being able to develop and validate projects on topics that are known to be relevant, given the needs and priorities that the company has in relation to its environment and the country.

For Fernández, "the importance lies in the fact that the new technologies and knowledge acquired are constantly being applied to the business and research, so that they remain in the organization."

Although the pandemic challenged every person, area and organization, the collaborative work between ARAUCO and the academic world was able to continue without significantly affecting the major projects that were underway. "Although it was difficult to maintain the fluid contact typical of faceto-face meetings, where there is an opportunity to share and discuss ideas, thanks to telematic tools we were able to continue making progress and stay connected," says the executive. He adds that "we are hopeful that the evolution of the pandemic will make it possible to resume these face-to-face meetings, which are valuable for keeping abreast of the latest trends and strengthening contact networks."

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BIOFOREST Works for the search of solutions and proposals addressing issues related to:

PROFITABLE AND SUSTAINABLE MANAGEMENT

ECOSYSTEM

SPECIES IMPROVEMENT

He also says that he is working permanently on species monitoring and biodiversity conservation, as well as on studies to understand in more detail the behavior of water basins and on the evaluation of new technologies to reduce the CO2 footprint.

In this regard, he explains that this research is in line with the important environmental challenges that the company has set itself for the coming years. "At the recent COP26 in Glasgow, we announced an important portfolio of Climate Action projects to enable the reduction of one million tons of CO2 by 2030. In this regard, one of the most outstanding commitments is related to the restoration of 25 thousand hectares of native forest, a goal that will be in line with the Nationally Determined Contributions (NDC), in addition to announcing that we will continue

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With these actions, it is clear that the company's sights are set on the future. "In different universities and technology centers in Chile and the world there is a lot of knowledge that can add value to our business. Therefore, it is an important part of our work to be active in the search for and evaluation of this knowledge and technologies, which means that we will continue to be active in collaborating with the appropriate institutions," says the executive.

CARBON NEUTRALITY

Even with health limitations, the challenge of continuing research on different fronts remains firm. As part of this work, Fernandez highlights an important study on the behavior of forest plantations and native forests, "aimed at increasing the adaptability of certain species to more extreme climatic conditions and thus be better prepared for the challenges posed by climate change.”

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WATER CRISIS

For example, in areas of research related to the environment, ARAUCO is in talks with academics from different national universities to develop a model of greater collaboration. In relevant topics such as climate change, the carbon cycle, water and biodiversity, to name a few, Sebastián Fernández says that "we have seen that there are great technical capabilities, and we are convinced that by working together we will be able to accelerate the lines of research we have in these areas, and then apply them to different aspects of our business.”

BIOGENETICS, among others

to be committed to the non-extinction of emblematic species such as Darwin's fox and frog, and the protection of species such as araucarias and ruil."

Within the framework of the circular economy, various analyses are underway that seek to continue increasing the percentage of solid waste recovery, in fact, he says, "the commitment is ambitious and seeks to achieve the goal of zero waste by 2030."

_ in the photo: Sebastián Fernández ARAUCO Research and Development Manager.

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the fruits of collaboration Some examples of the initiatives that ARAUCO has undertaken in collaboration with different universities and institutions include:

some examples of partnerships for sustainable development Institute of Ecology and Biodiversity (IEB). Several universities are involved, with which research on biodiversity conservation is being carried out.

Forestry Genetic Improvement Cooperative, created by Universidad Austral de Chile in 1976. ARAUCO participates with the objective of collaborating in the development of genetic material for forestry plantations.

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THE CONTRIBUTION OF UNIVERSITIES IS CRITICAL, ESPECIALLY IN PROJECTS THAT REQUIRE SPECIALIZED TECHNIQUES OR SCIENCEBASED RESEARCH AND DEVELOPMENT METHODOLOGIES.

university/institution

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Oregon State University (OSU)

Biotechnology and forestry

Universidad de Toronto

Recovery

University of British Columbia

Productivity

Universidad de Chile

Carbon and species monitoring

Universidad Mayor

Native forest and productivity

Universidad de Concepción (UdeC)

Biotechnology, Technological Development Unit (UDT), Environmental Sciences Center (EULA)

Universidad Austral de Chile (UACH)

Genetics, water and soils, climate change

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copec and pronto copec:

CUSTOMER FOCUS HAS BEEN IN COPEC'S DNA FOR DECADES AND IS THE PILLAR THAT HAS MADE IT A MARKET LEADER.

CONNECTING WITH CITIZENS' EXPECTATIONS

The Citizen Brands Study conducted by Cadem recognized Copec and Pronto Copec as Citizen Brands. This is a select group of 39 companies that have produced a significant and positive impact on society, on people's quality of life and that have a purpose and make a consistent contribution to Chileans.

The company's Marketing Manager, Gloria Ledermann, tells how Copec has managed to tune in to the demands of a country in transformation, positively impacting the perception of trust.

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_ in the photo: Gloria Ledermann Copec Marketing Manager.

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— transformative purpose In recent years, the world has experienced social, economic and political changes, in addition to the challenges posed by the coronavirus pandemic. "People expect much more from companies, they are more demanding, it is not enough to do business well. The company must be a key player in society, integrated with the community, with citizens, and not apart from it," says Ledermann.

"It is a huge pride, a responsibility and a challenge to have a position in this firm," says Gloria Ledermann. "The citizen brand factor means that the closeness and trust we have achieved has become a hallmark, which is why our customers prefer us, because we have an impact on their quality of life. Therefore, our focus is on the experience of our customers and the impact we can have as a company on people," she adds.

Regarding the reasons that led to this recognition, she points to two key factors: early understanding of changes in the environment and the ability to adapt.

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"For more than 30 years Copec has defined that we serve people and not vehicles, and that has marked our strategy. Focusing on the customer has been in Copec's DNA for decades and is the pillar that has allowed us to be a market leader. However, in recent years we have learned that we have to go further, that the customer is a citizen and we have to be important in his daily life," she explains.

For the executive, this implies the need to transform together with citizens. "Proximity is essential to understand the needs of the clients/citizens and, therefore, their demands and expectations. I believe that this is the key to the connection," she says.

The search for harmony with the environment has driven Copec to constantly rethink itself.

An example of this is the last two years of the pandemic, in which the company and its brands demonstrated their deep commitment to people and the country. In the face of the crisis, the company's primary concern was to protect its workers, with preventive and occupational safety measures. Thus, they were able to keep the service stations and convenience stores that supply people with products defined as essential operations. They also undertook a series

of actions to help overcome the health emergency, such as providing fuel for all the SAMU ambulances in the country; donating kerosene for elderly heads of household in La Pintana; setting up areas for taking PCR test samples without leaving the car, and recognizing the vocation and commitment of more than 50 thousand health workers in the hospitals with the greatest coverage in the country, to whom Copec and Pronto store attendants gave a snack to start the day.

All as part of the "Copec al Servicio de Chile" program. "We have executed a series of actions that have been timely and important during the pandemic and that the community has valued. We were able to adapt quickly and urgently, thinking of people's needs in a complex scenario with few certainties," explains Ledermann.

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Another milestone that demonstrates this capacity to adapt, and which is at the core of the definition of a citizen brand, was the development and communication of a renewed purpose, with its commitments, values and stakeholders. "We exist to enhance the development and movement of people, companies and the country." Thus, Copec's new purpose became a transcendental guide.

"It means a commitment and a path that involves countless projects and plans that must be developed: investments and dedication, but above all having a different look from that purpose. We have to ask ourselves, in each thing we do, if it really contributes to the development and movement of people, companies and the country."

In this sense, Copec is undergoing a transformation process, in which a key aspect has also been the digitalization of the user experience, not only through the Muevo App, launched a few months before the beginning of the pandemic and which allowed to solve the contactless purchase, but also through TiendaCopec.cl, loyalty platforms such as Full Copec or the creation of delivery services. A digitalization process that has been structural in the path driven by Copec towards the energy transformation that the country and the planet need.

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— driving the energy transition

"We have taken on the challenge of achieving carbon neutrality by 2030 and we set out to accelerate the energy transition, that is, to increase the distribution and use of renewable energies, hand in hand with the development of new capacities based

DIGITALIZATION OF THE USER EXPERIENCE

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THE SEARCH TO BE PART OF THE SOLUTIONS TO THE CHALLENGE OF CLIMATE CHANGE HAS BEEN ONE OF THE PILLARS OF COPEC'S PROCESS OF CONNECTING WITH THE PUBLIC.

Copec is currently undergoing a comprehensive transformation process.

The search to contribute to solutions to address the challenge of climate change has been part of Copec's process of connecting with the public. This can be seen in the role the company has played in leading electromobility and the use of new energies in the country and in the climate change declaration it made last October.

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FULL COPEC

on these other energies," says Gloria Ledermann. And she adds: "We are confident that we will advance fast enough so that, in the not too distant future, we will have turned our core business towards clean energies."

"We are proud to be recognized as a citizen brand, because our conviction and decision is to be and act as such and to continue working to be a contribution that citizens value and that goes far beyond our work. This implies seeing what things we are doing well, as a contribution to the community and as care for the environment, and what more we can do," concludes the executive.

DELIVERY FOR CONVENIENCE STORES

ELECTROMOBILITY

2030 MUEVO APP

CARBON NEUTRALITY

TARGET YEAR

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Thus, while Copec ranked 14th and 19th in the overall ranking of brands in the first and second half of 2021, leading the Service Stations category, Pronto won first place in the Convenience Stores category.

The Citizen Brands study, conducted between November 15 and December 15, 2021, included 240 brands and 5,400 online surveys in Santiago, to a panel of consumers aged between 18 and 70 years, belonging to socioeconomic levels C1, C2 and C3D.

40 _ "Citizen brands are those that have a significant impact on society and on people's quality of life. They are brands that have a purpose and that have placed the relationship with the community at the heart of their business, that consistently and permanently seek to make a significant and tangible contribution to society," explains Gloria Ledermann about the study conducted by Cadem.

The survey focused on three main attributes: positive presence, relevance and contribution, evaluated through dimensions such as functionality, leadership, style, capacity to generate affection, accessibility and good treatment.

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THE GOAL IS TO PROVIDE THE COUNTRY WITH A ROBUST CHARGING INFRASTRUCTURE FOR ELECTRIC VEHICLES.

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terpel:

VOLTEX BRINGS ELECTROMOBILITY TO PANAMA Chile, Colombia and now also Panama. Voltex's electric vehicle charging proposal arrives in the latter country to connect it from border to border by 2022.

As a result, Terpel becomes the first company in its industry in Panama committed to the transition to sustainable mobility.

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began last year, Terpel plans two additional phases in 2022: first, in Terpel San Félix, San Mateo and Colón 4 Altos stations (in the provinces of Chiriquí and Colón, respectively) and, later, in those of Penonomé, Chitré, Racing and Panamá Pacífico, strategically covering the rest of the country. These are fast chargers, supplied through the purchase of energy from solar and wind generators, which

December 15, 2021 marked a turning point for electric mobility in Panama, with the inauguration of the first Terpel Voltex charging point at the Coronado Travel Center Station, which has been joined by those of Anton and Santiago, covering three of the country's 10 provinces so far. The goal set by the Copec subsidiary is to provide Panama with a robust fastcharging infrastructure for electric cars, allowing users of this type of vehicles to travel the entire territory without having to worry about autonomy.

In the context of the route outlined by its parent company, Copec, to boost electromobility and increase the distribution and use of renewable energies at a pace that will enable it to meet urgent environmental challenges, Terpel's teams in Panama worked intensively during 2021 on the design and structuring of the new network. After the first stage of deployment, which

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allow an autonomy of close to 100 kilometers to be achieved with only 10 minutes of charging.

Panama thus becomes the third country on the continent to have Voltex electric vehicle charging technology, after Chile and Colombia.

"The results obtained throughout the 15 years that we are about to celebrate in Panama, added to the great service vocation of the entire team and the potential of electromobility in the country, have been some of the attributes that allowed the arrival of Voltex, thus becoming the first network of fastcharging electric stations in the territory and certainly a reference for all of Central America," said Gustavo Rodriguez, CEO of Terpel Panama.

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— electromobility takes off in panama Panama presented its National Electric Mobility Strategy in 2019, with the aim of promoting low-emission transportation and, in this way, contributing towards meeting the climate commitments made in the Paris Agreement. It set targets for the electrification of the vehicle fleet by 2030, including reaching 10 to 20% of private electric vehicles and marketing between 25% and 40% of electric vehicles that year. In addition to the above, specific goals have also been set for public transportation.

Although Panama's electric fleet is still in its early stages of development, it shows auspicious projections. In 2021, for example, sales of these vehicles tripled compared to the previous year.

Towards the end of 2021, the country passed its electric mobility law, which includes tax incentives and authorizes the commercialization of energy for recharging these cars. This new regulatory push, together with the availability of Voltex charging points in strategic locations throughout the country, will accelerate the process of adopting electric mobility in Panama.

"Thanks to this Terpel initiative, car dealers can now import electric vehicles to initiate true electric mobility in the country," says José Luis Moreno, Retail Manager of Terpel Panama. The 10 stations that will make up the Voltex charging network are located on the highway, specifically on the Pan-American Highway, the backbone that connects the country's roads.

_ in the photo: Gustavo Rodríguez Terpel Panama CEO.

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SCOPE OF IMPLEMENTATION OF 10 VOLTEX ELECTRIC GAS STATIONS IN PANAMA 2021-2022

TERPEL CORONADO TC TERPEL ANTON TC

"Terpel has the best network with its Travel Centers (roadside stations), its Va&Ven convenience stores and the best restroom infrastructure, to which electromobility is now added.

Thanks to the Voltex network, Panamanians have the option of traveling throughout the country, stopping, recharging their energy and that of their vehicle in a truly memorable stop," he adds.

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215 electric buses of the Red system.

The company will soon build and operate 10 new electro-terminals, supplying 100% renewable energy to more than 1,000 buses.

TERPEL COLÓN 4 ALTOS TERPEL PANAMÁ - PACÍFICO TERPEL RACING

TERPEL SANTIAGO TC

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In Colombia, meanwhile, Voltex took its first step beyond the borders in 2019, hand in hand with Terpel, a subsidiary of Copec. Under the

TERPEL SAN FELIX TERPEL SAN MATEO

— past, present and future In Chile, Copec Voltex is Copec's electromobility brand. It took its first steps in this country in 2018, with the deployment of the most extensive fast charging network for electric vehicles in South America, the Copec Voltex network, which is currently connecting more than 1,400 kilometers of Chilean territory and will add an additional 350 during 2022, expanding to the city of Puerto Montt.

Copec Voltex is currently present in different segments in Chile, including public places, homes, offices and industrial terminals. It also plays an important role in public transportation through a modern Electro-terminal located in the Maipú district of Santiago de Chile, which energizes

TERPEL PENONOMÉ TC

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TERPEL CHITRÉ

1º

2º

3º

IMPLEMENTATION STAGE: 2021

IMPLEMENTATION STAGE: 2022

IMPLEMENTATION STAGE: 2022

• Terpel Coronado TC

• Terpel San Félix

• Terpel Penonomé TC

• Terpel Anton TC

• Terpel San Mateo

• Terpel Chitré

• Terpel Santiago TC

• Terpel Colón 4 Altos

• Terpel Racing • Terpel Panamá - Pacífico

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Terpel Voltex brand, the first electric charging point was installed that year at the Terpel de Báscula station, on the outskirts of Bogotá. The company now has several stations providing this service in cities such as Bogotá, Medellín and Cali, among others.

The company's expectation is to conclude the year with 30 charging points installed, which will connect 5,500 kilometers of Colombia's main highways and trunk roads.

In addition, in 2021 Terpel inaugurated the first electric charging hub in Colombia, to provide service to heavy electric vehicles, in its Intexzona EDS.

_ in the photo: José Luis Moreno Terpel Panama Retail Manager.

Finally, the arrival of Terpel Voltex in Panama will not end with the deployment of the network of fast chargers along the Pan-American Highway. In this regard, José Luis Moreno says that "the following initiatives are related to city stations where the need for commercial vehicles and passenger transportation will be met. The country is strongly developed with horizontal properties (residential and office buildings), which provide an opportunity to be served not only in their need for electromobility, but also in their need for renewable energies that can be supplied by Terpel."

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THE 10 STATIONS THAT WILL MAKE UP THE VOLTEX CHARGING NETWORK ARE LOCATED ON THE HIGHWAY, SPECIFICALLY ON THE PAN-AMERICAN HIGHWAY, THE BACKBONE THAT CONNECTS THE COUNTRY'S ROADS.

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"At Terpel, we firmly believe that no organization can be prosperous if its environment is not prosperous, and this has become very clear to us over the last two years. Therefore, through Terpel Voltex we will once again reaffirm that innovating and transforming the standard of the sector in the country, in harmony with the environment, is entirely possible," concludes Rodriguez.

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— transforming the industry Panama is one of the three "carbon negative" countries in the world, that is, it absorbs more greenhouse gases than it generates. However, the systemic effects of global warming are not alien to Panama. In this context, energy companies are called upon to play a decisive role.

PANAMA IS ONE OF THE THREE "CARBON NEGATIVE" COUNTRIES IN THE WORLD. HOWEVER, THE SYSTEMIC EFFECTS OF GLOBAL WARMING ARE NOT ALIEN TO THE COUNTRY.

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THIS PROGRAM IS PART OF AN INTERNAL CULTURAL TRANSFORMATION PROCESS, BUT WHICH EXPANDS TO THE COMMUNITY AND CUSTOMERS.

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CALETA DE CARIÑO: FROM THE SOUL TO THE TABLE Focusing on its strategy towards 2025, Empresas Copec's subsidiary proposed to address sustainability from a social, economic and environmental perspective through an innovative initiative with its own employees as protagonists.

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"Leading sustainable nutrition from the sea" is the new purpose of Orizon, a subsidiary of Empresas Copec in the fishing industry that seeks to bring the healthiest products from the ocean to the tables of the world. This was defined during its latest strategic planning process for 2025, where the urgency of working in the social, economic and environmental spheres in an integrated manner and with sustainability at the center of the business was also evident.

"We internalized the need to position ourselves as a leading brand that is at the same time close, that takes on a role in society, with customers and with workers. We want to be who go beyond, the benchmark to follow," says Cristián Larraín, Commercial and Sustainability Manager, who has spent 24 years in subsidiaries of Empresas Copec, and five years leading these areas in Orizon.

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This new emphasis of the organization took the form of an agenda that includes topics such as carbon footprint, water and energy management, community and employee relations, among others.

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_ in the photo: Cristián Larraín Orizon’s Commercial and Sustainability Manager.

However, soon after, they concluded that in order to meet these challenges, a process of transformation from the inside out was necessary, and that it was essential for the teams to be empowered with the purpose.

Thus, was born "Caleta de Cariño", a program that aims to position the way in which Orizon carries out its work. A way that has always existed, but that today is being externalized to the entire ecosystem of the fishery.

— everything is done with "caleta de cariño". _ in the photo: A cloud of concepts of what it means to work with "Caleta de Cariño", according to the fishery's employees.

"Caleta de Cariño" is a play on words associated with the heart of the business: fishing. Carolina Valdebenito, Sustainability and Communications Manager, explains its origin: "We thought a lot about the name. Our Coronel plant is in Caleta Lo Rojas and we are a member of the community, so we thought about how to mix the place where we are located with what we want to do."

49 _ For Allan Carrasco, Sustainability and Communications Deputy Manager, this stage of the program is based on recognition. "We want to make visible the spirit and lower the purpose of the company, and what "Caleta de Cariño" seeks is precisely to account for the role that each of the employees has. It is our way of being and how we also want to be seen. We want people to recognize themselves in the purpose," he says.

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SEVEN STORIES OF OUTSTANDING EMPLOYEES WERE MADE PUBLIC THROUGH SAN JOSÉ JACK MACKEREL CANS AND DISTRIBUTED THROUGHOUT CHILE, WITH THE AIM OF TRANSMITTING THIS SPIRIT TO THE END CONSUMER OF ORIZON'S PRODUCTS AS WELL. The main milestone of the initiative was a contest held internally at the end of 2021. All Orizon employees, in Coquimbo, Santiago and Coronel, voted openly for who they thought represented the company's values. In addition, they had to specify which characteristics made the employee worthy of the award. Seven team members were chosen as winners: Johnny Marcelin, Patricia Matamala and Larisa Burgos, from the Coronel plant; Pedro Alfaro, from the Coquimbo plant; Luis Sepúlveda, from the Santiago office; Luis Vallejos, from Talcahuano; and Rodrigo Faúndez, from Frigorífico Escuadrón in Coronel.

There were seven stories that were made public through the San José jack mackerel cans and distributed throughout Chile, with the aim of transmitting this spirit to the end consumer of Orizon's products as well.

50 _ One of the stories comes from Larisa Burgos, head of Safety and Hygiene. With 20 years in the company, she points out that her work style is based on empathy. For her, those chosen have in common the dedication, the smile, the focus on details and affection.

"This recognition was a gift for the soul. I always try to make my team and my coworkers see that we are all necessary and important," she says.

According to Cristián Larraín, this campaign is the one that has had the greatest support in the history of the organization. "The testimonials that came out were very important and gave us insights into how to connect better with people, what people are really interested in, what we are doing well and where we have opportunities for improvement.

The truth is that we have very good material that obviously confronted us with a tremendous challenge, because we have to take charge of closing the gaps to get to where we want to be," he says.

_ in the photo: Allan Carrasco Orizon's Deputy Manager of Sustainability and Communications.

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— beyond a campaign "Caleta de Cariño" is part of a cultural transformation process whose initial protagonists are the employees, but which aims to expand to the community and customers. According to Cristián Larraín, it is key to understand that this effort is permanent and transversal to all the actors with whom the company relates. "It has to do with how we are fleshing out the brand, how Orizon does things, how it relates to the public. Orizon cares for the environment, looks after resources, generates change and a positive impact on society from the point of view of sustainable seafood nutrition, respects regulations and keeps its word. This is our seal of approval."

During the first half of the year, a new stage of this program will be launched, which will talk to the community about the responsibility of caring for the sea and the way in which Orizon builds a virtuous relationship with the artisanal world. It is worth mentioning that currently 100% of

video of recognition to the winners of the contest "caleta de cariño". the people who supply the Coquimbo plant are artisanal.

In the case of Biobío, this figure reaches 40%.

_ in the photo: Carolina Valdebenito Orizon's Head of Sustainability and Communications.

In this respect, Allan Carrasco adds: "Our process is directly related to this sector and to those who live in these areas. At this stage it is essential to emphasize the spirit of collaboration, the ability to work and care for others, that is, to convey the purpose of collaborative work and build alliances. Knowing that we cannot do it alone and that integration and a virtuous relationship with the neighbors is essential."

"THAT TRUST I BELIEVE HAS BEEN EARNED AND EVERYONE KNOWS HOW WE WORK, THERE IS RESPECT IN BETWEEN, THERE IS THE SEA AND THERE IS AFFECTION."

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— trust: a pillar for sustainable development For the fishing industry, the term sustainability was until a few years ago mainly linked to environmental challenges. Today, it has been installed as a topic that encompasses the entire business environment. Thus, "Caleta de Cariño" became a symbol of sustainable management in the fishing industry. "Today, investors, customers and society as a whole demand more from us, and people make the companies.

Today, being sustainable goes far beyond caring for resources. It means enduring in the long term, and the only way to achieve this is to do things well on all fronts, because you get nothing out of caring for the environment if you are not economically viable," says Cristián Larraín.

According to Allan Carrasco, a key pillar in achieving this task is to generate trust with the different stakeholders through commitments.

"This is transcendental, because you don't have to look like one, you have to be one. The

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CALETA CARIÑO: Program aimed at positioning the way in which Orizon performs its work.

declarations we have today are what reassures people and those who are linked to our process. The fact that they see that we have a road map is valuable for confidence and also for the projection of what we do," he emphasizes.

Carolina Valdebenito adds: "We are building trust over time by being a neighbor, by having our doors open, with the quality of our products and the certifications we have. It is a long process that does not happen overnight. I believe that trust has

EMPLOYEES

HEART

FISHING

Seeks to reach out to the community and customers to contribute in:

SUSTAINABLE NUTRITION Virtuous relationship with the world of artisanal fishing, which supplies:

100%

40%

COQUIMBO PLANT

BÍO BÍO PLANT

ENVIRONMENTAL CARE

been earned and everyone knows how we work, there is respect in between, there is the sea and there is affection."

Cristián Larraín is optimistic about the awareness that has been generated in this area, thanks to the work done by the teams themselves. "At the end of the day, the most important thing that companies have is people. Because we may have a fishing quota, technology, yes, but others have them too. Having an impeccable commercial management is replicable. Being leaders in costs, they can match you. But when you generate a difference in culture, that is a very longterm competitive advantage," he says.

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lari type jack mackerel

larisa burgos Employee distinguished in the "Caleta de Cariño" contest.

The employee recognized for the "Caleta de Cariño" campaign, Larisa Burgos, began her career at the company and recently completed 20 years with it. Today she leads a team of 40 people, who are responsible for ensuring the quality of Orizon's processes at the Coronel plant. Larisa was taken by surprise by the award, however, she says she believes that the way she performs on a daily basis has a lot to do with nurturing. "Unfortunately, we forget the magic words, as one tells children, like saying 'thank you very much' and 'please'. So, I try to instill respect in my team. I don't mean the respect of being addressed as 'you', but of respecting whoever is in front, regardless of their history or role," she says.

Upon seeing the can with Larisa's face and story, her family felt pride and emotion. "I have a sister who lives in Villarrica and she bought several cans with my photo, packed them and

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sent them to my mom's house. On social networks my friends wrote to me, made jokes and called me 'Lari type jack mackerel'," he says. From his point of view, all the people who were chosen generate "good vibes, they are fond of their work and highlight the qualities that the rest of the team has."

"Everything is changing and I think Orizon is working to highlight the good details and it shows.

This campaign set a very nice precedent. It's very cool to be part of this and to be recognized by people who are not from my area and who don't work with me," she says.

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ARAUCO LINE 1: A CLOSURE FOR 50 YEARS OF HISTORY In January of this year, and after half a century of operation, the pulp production Line 1 of the Arauco mill, located in Horcones, Biobío Region, stopped its activities. This was due to the construction of the MAPA Project (Modernization and Expansion of the Arauco Mill), which is expected to start operations in June of this year.

This milestone is very important for the subsidiary, since pulp production started on this line in November 1971, marking the beginning of ARAUCO as an industrial company.

Line 1 not only had an impact on the company and the people who worked in it, but also on the industry, the development of the region and the neighboring communities, which have been the protagonists of the important boost to the economy and local progress that the Horcones Industrial Complex has brought about.

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1971

50 YEARS OF PRODUCTION

FIRST PULP BALES

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arauco:

ACERCAREDES: GOING LOCAL THE FOUNDATION PUSHES COLLECTIVE AND COLLABORATIVE CHALLENGES IN THE MOST REMOTE AREAS OF MAJOR CITIES.

More than 450 entrepreneurs have boosted their businesses thanks to the collaborative work led by the AcercaRedes Foundation.

For almost a decade, this institution has been able to accelerate innovation and associative entrepreneurship processes, allowing to boost economic activities in different locations and have a positive impact on their sustainable development.

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Promoting entrepreneurship and innovation in ARAUCO's neighboring communities is the driving force behind AcercaRedes, a foundation that celebrates its 10th anniversary in 2022. With a presence in the regions of Maule, Ñuble, Biobío and Los Ríos, it collaborates with collective challenges in areas far from the main cities.

_ in the photo: Karina Soto Executive director of AcercaRedes.

Karina Soto is its executive director, who came to this role after working for three years in the employability and entrepreneurship team of ARAUCO's MAPA project. She says that initially the institution covered a wide range

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of projects, but that for the past year they have been adapting this work. "We began to focus on more cross-cutting initiatives, considering the characteristics of each location and, at the same time, focusing on having a greater impact on local entrepreneurs. In this way, we provide support in small communities, including Curanilahue, Los Alamos, Lota, San José de la Mariquina, among others, which are far from large cities and, therefore, far from opportunities."

_ in the photo: Part of the AcercaRedes Foundation team.

Their offices are the streets, and it is there where they forge alliances with different players, such as municipalities, universities, public institutions and business centers. "It's not much use sitting at home waiting for the entrepreneur to arrive. This is achieved through the networks that each team has in its area, which is made up of a director and a manager, and where we also go hand in hand with ARAUCO's Public Affairs. Rather than the person coming to knock on our door, during this time we have gone to look for them to show them some opportunities and help them move forward," the executive comments.

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— bridging gaps AcercaRedes has several programs, the main one being "Juega Local", a project that has been running for three years. Through this program, information is gathered on goods and services provided locally, and they are promoted in the respective localities. The main areas in which they work with these suppliers are procurement, accommodations

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and stores. In addition, a new area linked to family farming is being developed. In this way, entrepreneurs can participate in various competitions.

This brings with it many challenges, as Karina Soto explains: "Everyone is enthusiastic and eager to learn, with a remarkable spirit of selfimprovement, but there are gaps that are not only of the entrepreneur, but also correspond to the realities of the communities. The issue of digitization is very important for them to understand, for example, the platforms that support the professionalization of processes, working with software, e-mails, etc. In addition, there is a lack of knowledge of the importance of formalization, that a methodology and certain

THANKS TO THIS EFFORT, NEW SUPPLIERS HAVE BEEN CREATED FOR ARAUCO IN AREAS SUCH AS SIGNAGE, BASIC SERVICES, AND GARDEN MAINTENANCE, AMONG OTHERS.

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procedures are required that many times they do not know, they do not have them, or they have them, but they are not in order." For this reason, the Foundation also provides advice and accompaniment to overcome these barriers in a personalized process that encourages entrepreneurs to work in various businesses or areas, not only in ARAUCO, in other words, it provides tools that are a public good.

A total of 11 employees are fully committed to this mission. "We are immersed in communities that are rather vulnerable. Sometimes this

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requires a lot of effort, but the results are also much more rewarding when we see that things are working for us." Thanks to this drive, new suppliers have been created for ARAUCO in areas such as sign posting, basic services, and garden maintenance, among many others.

In addition, AcercaRedes has other initiatives such as "Despensa Silvestre", which seeks to value, make visible and dignify the work of forest gatherers. "This program is not so closely linked to commercialization, but it has a great social impact," says Soto.

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Finally, Soto emphasizes that the entrepreneurs value ARAUCO's contribution through the Foundation. "They know that the community is present in the company's decisions. The company is playing its part in generating positive impacts in the Arauco community. Today this has become a reality," she concludes.

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— results strengthen ties According to the Foundation's executive director, the emphasis that ARAUCO places on its relationship with entrepreneurs is essential in order to endure in the future. In that sense, this institution has become one of the basis for a successful relationship. "The locations where the company is present pose challenges, and we must work to deepen trust. This is achieved by demonstrating that things can be done with this support. Visiting them, calling them, teaching them, even turning on the computer with them if necessary."

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ENTREPRENEURS PROMOTED

COMMUNES

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SOCIAL INNOVATION AND DEVELOPMENT PROGRAMS AND PROJECTS

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arauco has given us prestige. we can offer our services to any company, applying the protocols we have learned. it has been a great boost. we gained an experience that we had no way of achieving without this opportunity."

yamil valdés Owner of "Aguas Bollenes” in Constitución.

Yamil Valdés is 40 years old and has always been an entrepreneur. He worked for 20 years in the liquefied gas delivery business and seven years ago he created "Aguas Bollenes", a company that started operations in Constitución to distribute purified water. He has been close to AcercaRedes for a long time. "We were required to deliver water at sporting events, risk prevention campaigns, among others. We always supported them with our stands and jerry cans."

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These were sporadic services. However, in November 2020 this changed: "We were contacted by ARAUCO because they needed a water supply supplier for their different plants in the region. In the past they worked with a national company, but they wanted to incorporate a local company in the bidding process and asked us if we were up to the task. At the beginning we thought, what are we getting ourselves into," he admitted.

AcercaRedes offered its support so that "Aguas Bollenes" could reach the necessary standards to compete on equal terms and face to face with major service providers. A process that lasted several months, but which for Yamil Valdés was crucial to obtain the necessary momentum to move forward: "We were confident that we would win the bidding process thanks to our good work".

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The fruits of the effort came in March 2021, when the entrepreneur received the news that in four months he would become one of the main suppliers of bottled water in Maule.

"Today our responsibility is to ensure that there is never a lack of water at the facilities, to arrive every week, no matter what," he emphasizes.

Currently, 25 families earn their daily bread thanks to the job opportunity provided by "Aguas Bollenes". "I recognize that before I had a certain distrust, because we were dealing with a large company, fearing that they were going to delay payments, that it was going to be complex, that there would be many rules. Now I consider that it is a great support, they help us in our economic situation, payment terms are met in eight days, and we were not used to that."

Finally, Valdés reveals the key to the success of his relationship with the forestry company.

"In addition to all of the above, ARAUCO has given us prestige. We can offer our services to any company, applying the protocols we have learned, everywhere. It has been a great boost.

We gained an experience that we had no way of achieving without this opportunity."

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Patricio Gallardo has been a farmer for more than 25 years, a job that has been passed down through his family. Based in the Horcones sector of the Arauco municipality, he grows and harvests various vegetables, including tomatoes, cucumbers, chard and parsley, among others.

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"i saw in them a foothold, in terms of resources and projects."

Patricio has known ARAUCO all his life.

"The neighbor has been here for as long as I can remember." He had a slight relationship with the organization when he worked as a dispatcher for a supplier contractor, but not directly. This situation took a turn a few years ago. "A meeting was held and they presented to us the work they wanted to do with us. Personally, I started to love it. I saw in them a foothold, in terms of resources and projects," he says.

patricio gallardo Farmer and president of the Farmers' Association.

Help that he felt was necessary. He was alarmed about the future of his profession, so he saw the alliance as an opportunity to give it a new impetus. "We are a contribution to the community, and we want the work done by agricultural entrepreneurs to be valued, which is essential for local economies and for people to have fresh products on their tables."

AcercaRedes provides Patricio with technical advice on various subjects, such as organic vegetable farming, livestock and beekeeping, among others. All of this is done in connection with other institutions, such as the Municipality of Arauco and Indap.

The joint work between these actors made Patricio's dream come true: to create an association that would allow them to consolidate and formalize the activity. Today this group is made up of 13 people, led by him.

In defining his current relationship with the Foundation, Patricio Gallardo says that "it is like a marriage: there may be difficulties, but positive things come out of it. Here we need everyone, it is a chain and I understand it that way."

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empresas copec ENERGY SECTOR EBITDA: US$ 1,173 million

FORESTRY SECTOR EBITDA: US$ 2,243 million

FISHING SECTOR EBITDA: US$ 53 million

EARNINGS AS OF DECEMBER 2021 empresas copec's consolidated ebitda and profit at december 2021 reach us$ 3,453 million and us$ 1,781 million, respectively.

OTHER EBITDA: US$ (17) million

TOTAL PROFIT: US$ 1,781 million EBITDA: US$ 3,453 million

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of building materials, including our products.

The increasingly massive use of wood as a sustainable material to replace others should also gradually contribute to this demand.

_ in the photo: Rodrigo Huidobro Alvarado CFO at Empresas Copec.

A few weeks ago, the annual figures for financial year 2021 were released. Ebitda amounted to US$ 3,453 million and profit to US$ 1,781 million, both well above the previous year's results.

The year was marked by several trends and achievements. First, a significant recovery in all business lines. Pulp had gone through long months of historically low prices in 2020. As world demand for fiber recovered, and with the boost also in recent months from shortages due to bottlenecks in global logistic chains, prices rose sharply, ending 2021 at levels that are, on average, around 50% higher than those of the previous year. Looking forward, we see a market with significant capacity additions, but reasonably in line with the expected increases in demand, after more than two years in which the industry has not shown any newsupply. Also, a growing demand is expected, as a result of increased uses of pulp in the substitution of plastics, in textiles and in packaging linked to e-commerce, among others.

In panels and wood, the Company has been favored by the demand that emerged from two trends partly driven by the pandemic and increased use of home office, which are renovations and the reconfiguration of residential neighborhoods. Both entail increases in the consumption

In the energy segment, the recovery was felt in relation to the first months of 2021, in line with a progressive lifting of mobility restrictions. Fuel volumes ended the year at levels higher than those prior to the pandemic. On top of this, there was an upward trajectory in oil prices, which made it possible to record temporary effects that boosted accounting margins.

In the gas segment, although a sharp rise in international propane prices led to an inevitable reduction in margins, volumes also rose, driven both by the recovery and by successful commercial strategies that are bearing fruit.

The year also saw the completion of construction and the start of operations of one of our largest projects in recent times: Mina Justa, in Peru, which began to make its first contributions to Empresas Copec's results. The MAPA project has continued to make progress in a challenging scenario in terms of health and logistics. Plant test runs are expected to begin in June of this year.

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All of the above, together with the sale of forestry assets and the stake in the Gasmar liquefied gas terminal, meant that by the end of the year the Company reached debt levels, measured by net debt/EBITDA ratio, close to two times, a substantial drop compared to the peaks recorded in 2020. This has allowed us to distribute large dividends to our shareholders, who had seen them reduced in previous years. This financial strength also places the Company in an excellent position to address future uncertainties, a key element in times of international volatility, and to tackle potential investment opportunities that may arise.

With a strong focus on ESG standards, the Company's activity has been, and will continue to be, strongly marked by the enormous contributions that are being made to the great global challenges. ARAUCO is today a company that captures carbon and retains it in its products, contributing like few othersto making progress in mitigating the effects of climate change.

Copec, for its part, is leading the transition in South America toward more sustainable, environmentally friendly mobility and energy models, becoming a benchmark in these matters.

In this way, we continue to build a history that, as always, seeks to make a significant contribution to the well-being of all.

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empresas copec once again present in s&p sustainability yearbook

copec to supply 800 new electric public transportation buses

golden omega joins sustainability index

abastible receives the highest international recognition in energy management

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orizon to operate with 100% renewable energy

ftse4 good ratifies empresas copec's commitment to sustainability

copec develops electroterminal for south america's largest delivery fleet

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empresas copec finalizes exit from mina invierno project read

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copec and stem prepare first virtual power plant in south america

abastible and aquachile implement project to optimize energy use

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orizon launches e-commerce platform for grocers and business tenants read

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copec to have new electric motor that reduces carbon footprint read

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empresas copec once again present in s&p sustainability yearbook for the second consecutive year, the company was included in the sustainability yearbook, a publication that highlights the world's leading companies in terms of their social, environmental and economic performance.

The annual report of the global consulting firm S&P considered a total of 7,500 private sector players, from 61 industries, which were subjected to S&P's Corporate Sustainability Assessment (CSA) methodology.

Empresas Copec achieved this year's rating of "Sustainability Member", ranking among the 30% of the leaders in its industry (oil and gas) with the best ESG indicators.

"The global challenges we face today, especially at a social and environmental level, require a concrete and scaled commitment to sustainability. Sustainability Yearbook 2022 confirms that at Empresas Copec we are advancing along this path, effectively contributing to building a more

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sustainable future for the current generation and those to come," said Pamela Harris, Director of Corporate Affairs at Empresas Copec.

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copec to supply 800 new electric public transportation buses through copec voltex, the subsidiary was awarded 10 of the 13 electric terminals tendered for public transport in greater santiago.

In addition to the 215 electric buses of the Red system already supplied by the Maipú electro-terminal, inaugurated in December 2020, another 800 will be added to reach nearly 60% of the electric public transport in the Metropolitan Region.

The company will be in charge of the design, engineering, construction, maintenance, load management software and supply of 100% renewable energy for public transport, which as of November this year will benefit more than 14 districts of Santiago, saving 141,000 tons of CO2, equivalent to the harvesting of more than 800,000 trees per year.

"We will accompany people, companies and the country in the process of transformation towards renewable energies and electromobility. The promise we made as Copec is to adapt all our services to technological changes and, therefore,

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we are willing to make these investments that will not have a return in the short term, but that allow us to learn, position and lay the foundations for a more economically sustainable model," said Francisco Larrondo, CEO of Copec Voltex.

In this way, the company continues to lead the energy transition in the country to address climate change.

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golden omega joins sustainability index as of this year, the empresas copec associate company, which produces high quality omega-3 fatty acids, is part of the stakeholders sustainability index.

SSINDEX, developed by experts from Yale University and former World Bank executives, identifies sustainability risks and opportunities through an integrated analysis of the different stakeholders.

The average rating obtained by Golden Omega for its ESG performance reached 70% for all its stakeholders. In the case of employees, customers and suppliers, the company obtained scores of 78%, 88% and 80%, respectively.

Thus, Golden Omega advances in strengthening a culture of sustainability, deepening its commitment to the stakeholders that host its productive work in the city of Arica.

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abastible receives the highest international recognition in energy management the subsidiary became the first company in latin america to receive the "cem energy management leadership awards 2021" for the implementation of an iso 50001 certified energy management system at the lenga plant, in talcahuano.

This award is granted by the Clean Energy Ministerial (CEM), a forum that promotes good practices to help accelerate the energy transition. In this version, 32 case studies from 20 countries participated and, in addition to Abastible's initiative, projects from the United States, Dubai and Malaysia were distinguished.

The Lenga Plant implemented three solutions for resource management: the certification of an Energy Management System, the construction of a consumption monitoring platform and a savings and emissions reduction verification service using Blockchain technology.

Paula Frigerio, Abastible's Development, Innovation and Projects Manager, said: "The work carried out shows the

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company's commitment to the development of its Sustainability Policy, which promotes sustainable corporate management in various areas, one of them being energy."

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orizon to operate with 100% renewable energy deployment will begin with the change of connection at its production center in coquimbo, and then continue with its three facilities in coronel.

As of April 2022, the company will begin a transition to the incorporation of renewable energies in its plants. This will be possible thanks to an agreement with EMOAC, a subsidiary of Copec and leader in Integral Energy Intelligence, which will provide Orizon with electricity supply for a period of at least four years.

Full implementation should be completed between January 2023 and the same month of 2024. In this way, the aim is to ensure that all consumption is generated by wind, solar and geothermal energy, among others.

Regarding this new milestone, Cristián Larraín, Orizon's Commercial and Sustainability Manager, said: "One of our objectives is that sustainability is always at the center

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of our operation and is something transversal in the way we work. Moving towards 100% renewable energy is the result of long work and an analysis of how we can implement concrete changes in a responsible way in pursuit of our commitment to care for the environment."

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ftse4 good ratifies empresas copec's commitment to sustainability this global ranking revalidated the strength and consistency of the company's environmental, social and governance practices.

FTSE4Good, which measures more than four thousand companies in 47 countries, classifies publicly traded companies around the world, based on publicly available information, thus lending special credibility and transparency to the evaluation.

Pamela Harris, Director of Corporate Affairs at Empresas Copec, said that "in a scenario with huge social and environmental challenges, as a company we consider it essential to have an unrestricted commitment to achieving a world with better practices in these matters.

Acknowledgments such as this fill us with pride and encourage us to continue advancing even further along the path of sustainability."

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copec develops electroterminal for south america's largest delivery fleet thanks to an alliance with electro pipau, the subsidiary copec voltex continues to contribute to the acceleration of the country's energy transition.

The company consolidated an agreement with Electro Pipau, a leader in transportation, logistics and distribution in the retail area, which will enable 100 electric last-mile delivery vehicles to be powered. To this end, it built a 5,000 m2 electro-terminal in the Metropolitan Region with 60 charging points.

Francisco Larrondo, Copec Voltex's CEO, said that "this work shows that electromobility is not only the future, but the present, and companies can count on a reliable and tailored support to make the leap and incorporate it into their operations in a sustainable way-" The executive added that "as a company we are participating in projects that make electromobility widespread and contribute to accelerating the country's energy transition, to the direct benefit of all Chileans."

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Pía Ahumada, founder of Electro Pipau, said that the initiative will optimize the electricity consumption of these means of transport, generating significant savings and reducing their carbon footprint.

The cars charged with sustainable energy will result in an annual reduction of 286.4 tons of CO2 per year, which is equivalent to approximately 572,000 trees.

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empresas copec finalizes exit from mina invierno project on december 29, the company sold its stake in the project, which is in the final closing stage.

Consistent with a strategy that places sustainability at the core of its investment decisions, Empresas Copec S.A. sold its 50% stake in Inversiones Laguna Blanca S.A. to Inversiones Ultraterra Limitada, the company through which the Mina Invierno coal mining project was developed on Isla Riesco, Magallanes Region.

The company had halted operations at the end of 2019.

Prior to this transaction, Empresas Copec provided sufficient financial resources for Inversiones Laguna Blanca S.A. and its subsidiaries to meet the obligations of the project's closure plan and all its environmental and other commitments.

This transaction is part of the decision to concentrate its management efforts in its main areas of activity, in initiatives and businesses of significant scale and with growth potential, and also to strengthen, through its subsidiaries, its presence in new energy and decarbonization projects. Recent and illustrative examples of this vocation are the development of electromobility

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by the subsidiary Copec, as well as the certified carbon neutrality of Arauco and the climate change declarations of both subsidiaries.

Empresas Copec will continue to make progress in its aim to contribute to the development of a more sustainable future for all.

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copec and stem prepare first virtual power plant in south america the project will complement the subsidiary's comprehensive offer in the commercialization of ncre for the residential, commercial and industrial segments.

In the town of Quintero, Valparaíso Region, Copec and its subsidiary Stem completed the first pilot of a battery storage solution driven by Artificial Intelligence (AI), which, when interconnected to the transmission grid, allows energy to be stored and released when needed.

The pilot, in which the Ministry of Energy, the Superintendency of Electricity and Fuels (SEC) and Chilquinta are also participating to validate and authorize the technology, is the first step towards the creation of the first Virtual Power Plant (VPP) in South America, which will have six storage batteries.

This project becomes even more meaningful in a context marked by the increased penetration of NCRE, increasing droughts that reduce hydroelectric generation and the imminent phase-out of coal-fired power plants. It is estimated that Chile requires approximately 1 GW of storage system power, with only about 50 MW existing to date.

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Thus, Copec, through its subsidiaries, is currently present in the commercialization of renewable energies, photovoltaic distributed generation, intelligent energy storage, energy efficiency and electromobility. The above, under a focus on providing "energy intelligence" and accompanying customers and companies in the transition that is taking place globally.

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abastible and aquachile implement project to optimize energy use through cogeneration, the aquaculture company will migrate its hollemberg fish farming operations from petroleum to liquefied gas.

In order to reduce its carbon footprint, the companies became strategic partners to implement a new integrated solution to enable AquaChile to operate its fish farming plant more efficiently. Key to this transition has been the joint work with Abastible, in a collaboration that is expected to save 35% of current plant consumption costs.

According to Ignacio Mackenna, commercial manager of Bulk and Solutions at Abastible, the implementation "is a sign of trust from this leading company in the aquaculture industry towards our team, which advises and works to improve the performance of fish farming towards a more sustainable operation."

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Benjamín Morandé, AquaChile's Production project manager, says: "It has been a good experience working with Abastible's professionals and we expect to be operating the liquefied gas cogeneration at Hollemberg early next year."

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orizon launches e-commerce platform for grocers and business tenants through the new web platform "el mercado de todos", the subsidiary seeks to make its products more accessible to all its customers throughout the country.

After a positive 2020, a year in which the Empresas Copec subsidiary significantly increased its profits, the company focused on sustainable nutrition seeks to strengthen its presence in e-commerce.

build a supply network that connects local stores with new products from the world of innovation and entrepreneurship.

In this context, Orizon launched, in September last year, its first digital sales channel "La Mesa de Todos", oriented to the final consumer (B2C) and where there is a wide range of local brands, including San José and Colorado, and international brands, including Nature Valley, Fiber One and Häagen-Dazs, among others. Currently, this website has more than 200 products and more than 40 brands.

Thus, through the digital world, Orizon takes a new step in its commitment to lead sustainable nutrition.

This year, the subsidiary took another step forward in its digital sales channels by launching the new web platform "El Mercado de Todos", designed to drive digital transformation in retail and

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copec to have new electric motor that reduces carbon footprint through wind ventures, the subsidiary invested in the startup turntide technologies, through an agreement that will allow it the exclusive distribution for four years, in chile and colombia, of an electric motor that uses machine-learning algorithms.

Electric motors, mainly used in cooling and heating systems, consume about 40% of global electricity, according to the International Energy Agency. However, after 15 years of research, Turntide Technologies developed one capable of saving 30% and reducing emissions by 25% compared to traditional electric motors. This is achieved by means of online control and monitoring software that controls the flow of energy through the motor up to 20,000 times per second.

Leonardo Ljubetic, Copec's corporate manager of Development and Management, explained that "our objective is to continue working and investing in innovative technologies that help us to improve the experience and energy efficiency in sectors linked to mobility, energy and retail, and that are sustainable and environmentally friendly. We already have two Turntide engines in Pronto Copec convenience stores and we

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expect to continue expanding this technology throughout our service network and to other industries and customers".

Thus, this incorporation seeks to achieve greater energy efficiency in the operations of the subsidiary in Chile and Colombia.

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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.