Empresas Copec's Corporate Magazine No. 113

empresas copec's corporate magazine september 2023

No.113 dignifying social housing in chile

science that connects with people

a long-term commitment to education

THE STRENGTH OF COLLABORATION

committed to local development

cybersecurity, a shared responsibility

1 _

No.113 consensus, agreements, working together and collaboratively are key to making great projects come true. that is why at empresas copec we build relationships of trust with all our stakeholders: employees, customers, communities, suppliers, shareholders, investors and partners, understanding that our work and decisions have an impact on our environment. we also believe that publicprivate alliances with academia and social organizations are key to promoting a common dream, a dream that transcends ideologies and beliefs, and one that we all undoubtedly strive for: a more sustainable future for all. september 2023 / nO . 113

2 _

read

04-06:

07-12:

agreements, a country imperative

artificial intelligence: beyond the hype

eduardo navarro, ceo of empresas copec, highlights political stability as a key factor that has a direct impact on companies' investment decisions.

paolo colonnello, startup director and investor and expert in new technologies, discusses the challenges and opportunities involved in the adoption of ai in the business world.

read

13-16:

17-23:

25-34:

an icon of reliable energy in the heart of peru

dignifying social housing in chile

cybersecurity, a shared responsibility

arauco's subsidiary e2e is working along with elemental to contribute towards the goal of building 260,000 homes for vulnerable families in chile over the next four years.

seven specialists, collaborators of empresas copec and its subsidiaries, talked about the challenges associated with information security and the relevance of including this issue as part of the companies’ internal culture.

solgas, a subsidiary of abastible, is the leader in the liquefied gas market in that country, thanks to a defined strategy focused on innovation in energy efficiency and sustainability.

read

read

read

35-40:

42-47:

48-50:

science that connects with people

powering smart energy storage

arauco, committed to local development

dr. alexis kalergis, an academic at the pontificia universidad católica de chile, who is making progress in the development of a vaccine against the syncytial virus, reflects on the importance of collaboration between the private, public and academic worlds.

copec took control of ampere energy, a company that leads the field of intelligent energy storage in spain and also has activities in chile and colombia, thus furthering its commitment to the energy transition.

the subsidiary company carries out programs and support initiatives with winemakers and producers in the itata valley to promote the production and marketing of their products and services.

read

read

51-57:

58-64:

66-71:

generating more than seven thousand sme jobs in chile

the magic of trees reaches our ears

disclosing the role of sustainability in business strategy

for abastible, the virtuous relationship with its distributors is essential for the development of its business. a bond that has generated progress, well-being and quality of life for many families.

read

reas

read

arauco launched "voices of the forest," a podcast in which well-known chilean actors invite people to learn about chile's natural heritage, bringing it closer to the communities through digital platforms.

read

empresas copec publishes its first integrated report under the guidelines of the financial market commission, a report that shows the relevance of sustainability at the core of its activities.

3 _

read

72-78:

79-80:

81-95:

a long-term commitment to education

summing it up

news

rodrigo huidobro, cfo, analyzes the results of empresas copec as of june of this year, which recorded a profit of us$ 214 million and an ebitda of us$1.058 billion.

during this period, empresas copec and its subsidiaries showed important milestones in terms of sustainability, innovation and business.

as part of its sustainability strategy, empresas copec and its subsidiaries support different initiatives to promote the comprehensive development of children and young people in the country.

read

read

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

editorial

—

AGREEMENTS, A COUNTRY IMPERATIVE While each country is a story by itself, with its own context and singularities, a leadership that preserves the investment climate is of undeniable importance to foster entrepreneurship, thereby promoting economic activity and, consequently, social development. In the complex and globalized business world, institutional stability arises as a critical factor that directly influences companies' investment decisions.

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

Just as it happens worldwide, in Chile there are many signs of deteriorating coexistence and lack of interest in reaching consensus when defining public policies. This is in spite of the enormous need that a large majority sees in achieving major agreements and, thus, mobilizing the country. This is the only way to resume growth and, with it, to have a sustainable source of resources to help address the main social challenges.

4 _

The process to create a new Constitution in Chile, which has challenged us in these last years, seems to be a clear example.

Although rejecting the proposal by the former Convención Constitucional was understood as a clear call for moderation by the population, we see some people interested in making this second chance fail again, leaving open, once again, a central matter for the country. How can we be optimistic

index

general interest

from the inside

about the future of Chile, if we are not even capable of reaching an agreement on the fundamental law that defines the basic principles that govern us as a society.

At the same time, in the political arena, we are witnessing stagnant discussions on issues that are very relevant for Chileans.

No interest is perceived in highlighting the common ground, as there always is, on many issues, which may be more than we think.

The debate is mostly focused on the differences, on ideologies, on the null capacity to prioritize, yield and negotiate.

In the business world, it is difficult to understand such a logic.

For example, when developing a strategic plan for a company, mandated by shareholders, it is essential to agree on the different views that the teams have on an activity or project. In this "company" of all, Chile, we do not feel the same willingness to achieve consensus, in order to move towards an environment of greater well-being for all, where the technical perspectives design policies that gradually address the needs of the population, while also recovering the much-needed legitimacy and confidence in the institutions.

The problem is that we need to act now. Here, we have an ethical sense of urgency. The lack of dialogue, civic friendship, and the absence of a sense of agreement to achieve consensus that increases certainty, seriously affect the country's growth possibilities, due to its impact on investors’ decisions.

with first and last name

worldwide

IT IS CRUCIAL TO SEND THE NECESSARY SIGNALS FOR THE COUNTRY TO ONCE AGAIN EMBARK ON THE PATH OF INVESTMENT, SUSTAINABLE INVESTMENT. CHILE ONCE AGAIN MOBILIZED, COMPETITIVE, A LEADER, AND, OF COURSE, SOLIDARY.

It is clear that under unstable scenarios, investors do not see the conditions required to commit their financial resources. The way we make policy generates uncertainty, which undoubtedly translates into an unfavorable investment climate. In a world where capital is highly portable, companies and investors are looking for safer places to start projects, which inherently entail significant risks, typical of any activity, especially in a world with such rapid technological change.

with the people

summing it up

news

The last few years have not been good for the Chilean economy.

Between 2000 and 2014 the country's growth exceeded the OECD average, even doubling the performance of the world's most developed nations on several occasions. The current situation is very different. Foreign direct investment as a percentage of GDP has also declined, showing indicators that are very different from those at the beginning of this millennium.

However, in spite of everything, Chile still is a country full of strengths and opportunities, that for decades has managed to remain a beacon in Latin America. Thanks to a historic economic liberalization, the country enjoys one of the most powerful networks of free trade agreements in the world, through treaties with 65 countries that account for 88% of global GDP. This policy is very well perceived abroad and has given our exporting industries privileged access to international markets.

Today, as never before, our impressive geographic diversity places us in a very privileged position to face the future. Thanks to the intense solar radiation and winds, we have made significant progress in non-conventional renewable energies. They now account for nearly 40% of the energy matrix and we continue to be one of the best countries in the world - and the first in the region - to invest in this type of projects.

5 _

index

general interest

from the inside

This green drive has a direct impact on the mining industry, which is increasingly relying on renewable generation to operate.

Copper is well known as a critical material for the long-awaited energy transition, being a key component for new renewable energy infrastructure. In addition, our copper will be increasingly necessary for the progress of electromobility, as we must remember that an electric car uses 4 to 6 times more copper than a conventional vehicle.

There are also vast opportunities in other industries, such as lithium and green hydrogen. Chile has one of the largest deposits of lithium in the world and has all the conditions needed to produce large quantities of green hydrogen at low cost, both of which are essential to decarbonize the economy. In addition, developing these industries will necessarily require infrastructure, whether for electricity transmission, roads or ports.

If we make good decisions today, we can seize all these opportunities. Who could be against this story of development?

That is why it is crucial to send the necessary signals for the country to once again embark on the path of investment, sustainable investment. Chile once again mobilized, competitive, a leader, and, of course, solidary.

For instance, the lack of certainty in tax matters has been a recurring topic of discussion over the last two decades. There is no doubt that it is possible to invest in countries with very different tax regimes. It must be understood that Chilean companies are

with first and last name

worldwide

with the people

summing it up

news

the foundations for a growth that will lead us towards better opportunities and greater well-being for all. now more global, and that countries compete to attract capital, so the level of taxes and their stability are determining factors. It would also help in this discussion to understand what kind of State we want and how it has the incentives to achieve the highest efficiencies in the use of collected resources, ensuring that they reach where they are most needed.

Likewise, it is necessary to promote an institutional framework that coordinates and expedites the permits needed for projects that require an Environmental Impact Assessment, enhancing the use of the most technical criteria possible, considering that many of the new projects - copper, lithium and hydrogen, for a start - will be net contributors to the global environment.

The solutions to the water problem, labor informality, the serious issue of people and companies' safety, as well as the great task of improving educational quality, are all battles that the country must face firmly, while making all decisions with a long-term view.

Otherwise, we will definitively affect our possibilities of achieving that longed-for social development.

Nature and our location on the planet have taught us to be resilient in the face of difficulty. It will be no different this time. But at Empresas Copec we see a country with a future full of possibilities.

We write these words in September, a special month for Chile and Chileans. I would like to think that we will be able to agree on those issues that seem to divide us, for the sake of the common good, and acknowledging ourselves as a diverse population; laying

We have always said it, it is impossible to work in the world of entrepreneurship if you are not optimistic, it would not make any sense. And we are optimistic.

6 _

index

general interest

GIVEN THAT SMART TECHNOLOGY HAS HAD GOOD PENETRATION FOR SEVERAL DECADES NOW, IT IS WORTH ASKING WHY 2023 IS THE YEAR OF ARTIFICIAL INTELLIGENCE.

from the inside

with first and last name

worldwide

with the people

summing it up

news

general interest

opinion:

ARTIFICIAL INTELLIGENCE: BEYOND THE HYPE

By Paolo Colonnello Recognized member of the country's entrepreneurship, technology and innovation ecosystem. He has been an investor in startups such as Cornershop, director and co-founder of Capitalizarme.com and is a member of the Investment Committee of the FENVentures Fund. His area of work has been strongly linked to the design, development and implementation of technologies for the construction of new business models.

7 _

index

general interest

from the inside

with first and last name

worldwide

with the people

I have good grounds to believe that this is not the case. And the fact is that AI is leading us to one of those revolutions that is a luxury (and hell) to witness up close. These arguments have nothing to do with apocalyptic theories, of machines becoming conscious and deciding to exterminate humanity. Those narratives, for the moment, will be left to science fiction and I will focus on the benefits and dangers that I believe are closer to us.

_ in the photo: Paolo Colonnello Director and startup investor and Artificial Intelligence expert.

Let's start by reviewing what we understand as AI, which is an old idea in the world of computing. It was born in the 1950s with the dream of building a machine that would mimic the way a human being thinks. This concept has widespread implementations, but transparent to many of us. Every time Amazon recommends a book, a credit card purchase passes security filters or Facebook recognizes a

I was fortunate enough to start my professional career as a beginner programmer in Silicon Valley in the 90's, where I witnessed the birth of the dotcoms up close. Since then, I have been involved in different roles, as an entrepreneur, manager and investor, in technology-based or technology-related companies. Something to be expected in this sector is that every so often the technology industry and its ecosystem launches a new revolution. Many of these trends are nothing more than passing trends, swelling the supply of consultants who promise "competitive advantages", "differentiation" and other attributes that would allow companies to maintain their dominant position in a competitive and changing market.

A core skill I have developed in my career is the ability to "read the water" to navigate through these revolutions, distinguishing structural changes from passing noise.

Right off the bat, artificial intelligence (AI) sounds like just another fad. If in 2022 it was the metaverse or in 2021 the blockchain, it seems that this is the year of AI.

summing it up

news

“PRODUCTION AND WORK WILL BE AMONG THE MOST IMPACTED ACTIVITIES, MAINLY BECAUSE ALL LABOR SUSCEPTIBLE TO AUTOMATION WILL BE MECHANIZED AND AT VERY LOW COST.” 8 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

— the processing capacity person in a photograph, there is an artificial intelligence algorithm doing its job. The powerful thing about these intelligent systems is that they learn on their own, with experience. The more images it sees, the better the algorithm gets at recognizing new photographs without human intervention.

So, given that this smart technology has had good penetration for years now, with thousands of solutions ranging from consumer applications to industrial processes, it is worth asking why 2023 is the year of AI? Because, primarily, three ingredients are needed for AI, and the third is responsible for the exponential leap we see this year.

AI algorithms are very processor-intensive. What was conceptually designed in the 1960s was purely theoretical and mathematical. There was no machine even close to being able to run an AI algorithm. To understand the order of magnitude, the processing power of a single iPhone is equivalent to 200,000 AGC computers, the computer that put man on the moon. This capacity continues to grow exponentially and doubles every two years, at the same cost.

9 _

— the training The second ingredient needed for AI is training material. To teach an AI, it is necessary to have abundant content. For this, the Internet is a gold mine. Globally, 12 scientific papers are published every minute and 100 years of video are uploaded daily on YouTube alone. This is without counting the countless forums, social networks, media and an endless amount of information of varying quality and format. Much of this content seems disposable, but it can all be valuable, depending on the type of training required for AI.

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

— the algorithm Finally, the algorithm is the cornerstone that gives life to AI. Perhaps the best known today is GPT (Generative Pretrained Transformer), with which ChatGPT, from OpenAI, is built. GPT is a "generative" algorithm, meaning that, given an input, it generates an output. Trivializing a lot how it operates, we could simplify by saying that it is a statistical algorithm. For example, when entering the text "what color is the sky" it is very likely that the result will be "blue". Not because the AI knows that the sky is indeed blue, but because after reading billions of texts in its training, where the words "sky" and "color" are found, the word "blue" appears frequently.

PROCESSING CAPACITY

TRAINING

ALGORITHM This technology is of utmost importance in today's society and its future development, as it enables improvements in people's quality of life. Its responsible and ethical implementation is essential.

The letter that makes GPT truly revolutionary is T for transformer. Transformers are a type of algorithm invented by Google in 2017 that revolutionized AI development.

Until their creation, all AI research ran on separate tracks: an improvement in image recognition brought nothing to a recommendation algorithm nor to one that converts text to audio. Thanks to transformers, all content came to be treated as the same "language"; thus, text, images, video, code, sound, can all be processed in the same way and, therefore, an improvement in one area of research can be transferred to another.

ARTIFICIAL INTELLIGENCE (AI): Simulation of human intelligence processes through computer system programming.

In order for AI to work, three main ingredients are needed.

This innovation made the different lanes come together, join forces and exploit in advances and developments such as GPT, among many others, generating an exponential progress in the development of the research field globally. That is why this year we see different important projects that allow to take a text and produce a photograph, or get a description based on a video, all collaborating and learning from each other, achieving rapid growth.

10 _

index

general interest

from the inside

with first and last name

Why is all this relevant? Historically, a computer is only as powerful as the program or application we use on it. The device does the hard work, but it is the program that tells it what to do. AI allows us to have direct access to the processing power of the computer without the need for applications. It is possible to give instructions in natural language to the machine, just as we would speak to a person, and if the task is computable, it will execute it.

Getting these machines to have consciousness is a separate discussion. The holy grail of this is the development of Artificial General Intelligence or AGI, which, unlike what we currently see, should behave more like human intelligence and not be specific to a single function as it is today. However, we don't need AGI to start worrying, because the future looks more like today than tomorrow.

worldwide

with the people

Going fully into futurology, and understanding that it is very easy to err on the side of naivety when trying to foresee possible scenarios, I see that there are implications in different areas that are worth analyzing. Production and work will be among the most impacted activities, mainly because all labor susceptible to automation will be mechanized and at very low cost. As a society we will enter into deep questions about what we want and the world we intend to build.

The productive gap between those who use or do not use AI will be greater than the gap between those who use or do not use the Internet. Rather than the job of "making things", the job of "taking responsibility" is gaining momentum. Today it is possible to design a logo at zero cost using AI. Does this mean the end of designers? If you hire a designer just to make a logo, it is possible, but if you are looking for a designer to make a logo and be responsible for ensuring that it reflects the company's identity in the market segment of interest, and that it achieves the business objectives, AI, for the moment, cannot compete. Organizations are networks of commitment and responsibilities, which cannot be mechanized.

The personalization that is possible with AI has wonderful implications, such as tailor-made medicines for each individual or curricula and courses of study that consider each student as

summing it up

news

“THE ADOPTION OF AI IS CRITICAL TO ENABLING NEW BUSINESSES AND PROCESSES. WE MUST RIDE THIS WAVE TO BUILD THE FUTURE WE 11_ WANT AND NOT STAND BY AND WATCH AS IT SIMPLY PASSES US BY.”

index

general interest

from the inside

with first and last name

worldwide

summing it up

news

paved the way for the success of brands such as Coca-Cola, which thanks to this technology became a refreshing beverage consumed worldwide. Just as refrigeration once was, the adoption of AI is critical to enabling new businesses and processes. We must ride this wave to build the future we want and not stand by and watch as it simply passes us by.

unique and special. But, on the other hand, it will have a critical impact on cultural development. Today we can speak of a "we" because we share narratives, conversations, discourses and values in our social group. We can talk and get excited about Star Wars, The Godfather or the latest Marvel movie. Communities consume the same media, watch the same movies or listen to the same music, all of which, in part, builds identity.

We fall in love listening to a song that connects us with someone. Similar tastes generate empathy, but what happens when AI builds custom content at zero cost? Today there are companies developing instant movie platforms, where it will be possible to give commands such as "create a romantic movie starring my exgirlfriend and me set in the Wild West and lasting no more than 45 minutes."

No one else will see that movie or that type of content, which will be more and more specific to the tastes of each person, but it also implies a cultural fragmentation, which will possibly disconnect us more from our environment.

with the people

12 _

Whether we like it or not, technological developments are tsunamis, which we must learn to surf, rather than try to block. Some industries that will be disruptive will adapt; others will try to make a splash. Examples of that were newspapers with the Internet, cab drivers with Uber or, like what a group of southern dairymen are trying to do today with NotCo, one of the first to implement AI in the food industry globally. There are many uncertainties in what is to come, but what has been demonstrated is that covering the sun with a finger does not work.

It is very difficult to predict winners and losers in the scenarios that open. The invention of refrigeration enabled completely new and unthinkable industries, and

index

general interest

from the inside

with first and last name

worldwide

THE IMPORTANCE OF LG FOR PERU AND ENERGY RELIABILITY ARE FUNDAMENTAL CORNERSTONES OF SOLGAS' STRATEGY.

with the people

summing it up

news

from the inside

solgas:

AN ICON OF RELIABLE ENERGY IN THE HEART OF PERU With 77 years of history, the Abastible subsidiary has managed to maintain its leadership. In recent years, it not only increased its GL storage capacity by 40%, but also achieved 93% brand recall and has made important innovations in energy efficiency and sustainability.

13 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

A defined strategy, with clear priorities and a focus on execution, are some of the factors that explain Solgas’ sustained growth and good positioning in recent years.

Mario Matuk, general manager,who has been leading the company for a little over a year, explains that it has taken time to establish the best strategies to move the business forward, but the company has been maturing. "This translates into being able to meet financial targets and contribute to our stakeholders and community, that is, our employees, operators, shareholders and neighbors," he says.

14 _

_ in the photo: Mario Matuk General Manager of Solgas

SOLGAS HAS MORE THAN SEVEN DECADES OF EXPERIENCE IN PERU, WHERE IT LEADS IN THE LIQUEFIED GAS (LG) MARKET, PROVIDING SERVICE TO MORE THAN 1.4 MILLION HOMES.

Solgas has more than seven decades of experience in Peru, where it leads in the Liquefied Gas (LG) market, providing service to more than 1.4 million homes.

For seven years it has been part of Empresas Copec, as a subsidiary of Abastible, and has remained an iconic brand, being part of the lives of all Peruvians. This is confirmed by the figures. This year, it achieved 93% brand recall, according to a market research study conducted by CCR CUORE, and a 21.9% share of the bottled market.

index

general interest

from the inside

with first and last name

worldwide

"We have more than 250 transport units to keep robust logistics in a large country, and we import approximately 16 ships a year," says the general manager. The company currently has eight bottling plants and increased its liquefied gas storage capacity by 40%, with an investment of US$ 15 million, making it the largest GL terminal in the country and offering energy reliability to the nation. It also has the most extensive distribution network in Peru, with 513 distributors nationwide and a team of more than 650 collaborators.

with the people

summing it up

news

"With these logistics and thanks to the support, collaboration and backup of our network of distributors, operators, workers and shareholders, we have achieved satisfactory results for all our stakeholders. We provide a reliable and safe energy source, which is used by millions of cars and homes, tens of thousands of businesses and entrepreneurs, enabling the economic development of people and our country," says Matuk, adding that this would directly contribute to fulfilling the company's purpose, which is to generate development opportunities and a better place to live.

This year, Solgas' customers in the mining, agribusiness and fishing sectors have experienced significant growth in high-value energy solutions, and the company has taken care to address the needs of energy efficiency and

— driving the energy transition The importance of LG for Peru and energy reliability are fundamental cornerstones of Solgas' strategy.

Eight million Peruvian homes use it as a source of energy and it is the most used product, above gasoline. Among the main advantages of liquefied gas is its availability in remote areas. In many cases, it is the only source of energy for homes in areas that are difficult to access, as well as being an economical alternative, since it is 40% cheaper than diesel and more environmentally friendly, as it has a better performance in terms of emissions than other fuels.

15 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

SOLGAS PERÚ:

transformation, offering consultancy with diagnostic proposals and accompanying them throughout the energy transition process, in order to promote sustainable supply solutions.

Another relevant topic is product innovation. "We are creating a new LG, with a special component to improve performance. In addition, the Dual Diesel Fuel system, intended for diesel vehicles, allows to replace up to 30% of diesel with LG, which reduces fuel costs by 15% while considerably lowering polluting emissions. We are also expanding our electric self-generation offer, adding photovoltaic, LG and Peak Shaving systems," says Matuk.

In addition, in the quest to become a world-class company and together with dss+, the external audit of its OIEM process safety model concluded with great success, and these results were obtained thanks to the dedication, commitment and safety culture of the entire Solgas team. A milestone that fills them with pride.

For Solgas' general manager, the company is not competing in the market in terms of prices, but in the value proposition it delivers to its consumers. "Being able to offer an adequate distribution of LG in terms of quantity, quality, performance, safety and reliability, allows us to have more satisfied customers and better results."

Leader in the Liquified Gas (LG) market.

40%

8 Cheaper than diesel.

+1MILL. Homes served

Bottling plants.

250

TRANSPORTATION VEHICLES

16

SHIPS PER YEAR

650

EMPLOYEES

16 _

index

general interest

E2E IS WORKING WITH ELEMENTAL TO CONTRIBUTE TO THE GOAL OF BUILDING 260,000 HOMES FOR VULNERABLE FAMILIES IN CHILE OVER THE NEXT FOUR YEARS.

from the inside

with first and last name

worldwide

with the people

summing it up

news

from the inside

e2e and elemental:

DIGNIFYING SOCIAL HOUSING IN CHILE Incrementalism and industrialization are key words in an effort that seeks to improve people's quality of life by using the resource that ARAUCO knows best: wood.

Through its subsidiary E2E and hand in hand with Elemental, ARAUCO collaborates with the State so that every day more families can own a home that is efficient, safe and customizable to their needs.

17 _

index

general interest

from the inside

with first and last name

Ten years ago, María Morales lost her house in a fire and, since then, she has been waiting for state aid to build her a new one. Finally, last March, she received the keys to her longedfor house, ready to move into, with electrical connections and all the necessary permits. This happened just two months after the construction company started working on the land, as part of the Emergency Housing Plan promoted by the government.

But it was not just any house. It was the first industrialized house in the country approved by Minvu (Chile's Ministry of Housing and Urbanism): 51 m2, two bedrooms, bathroom and an open space for the kitchen and living-dining room; a dry, impregnated and structural wood construction, earthquake-resistant and with optimal thermal performance; large windows, cross and passive ventilation to prevent humidity, and exterior cladding of the highest quality.

Like María's, other units of these characteristics have been delivered in the following months, in order to alleviate, in part, the existing housing deficit, which is close to 700,000 homes. E2E, a subsidiary of ARAUCO, has been one of the players in the government plan,

worldwide

with the people

summing it up

news

highlighting wood as a construction material and with a clear purpose: to give social housing a seal of dignity, based on the quality of the materials, the efficiency of the design, the speed in the execution and the possibility of making the spaces grow in a harmonious and safe manner.

E2E was founded five years ago with the mission of improving people's living conditions through the design of high-tech and efficient construction solutions. Its general manager, Felipe Montes, says that the company was the first to have a standard house, which does not need building permits or municipal approval, because the design has already been approved.

— a "growing" house Most people who receive their social housing tend to expand it, but they generally do so inorganically, without planning or a design that considers this growth, which leads to safety, comfort and functionality problems. Thus, the concept of incrementality arises, which refers to the capability of a house to adapt to its inhabitants' future needs, reducing the risks of self-construction.

_ in the photo: Felipe Montes General Manager of E2E.

18 _

index

general interest

from the inside

worldwide

with the people

summing it up

news

participants in the solution to their natural need for more space.

Even before the creation of E2E, ARAUCO had been working collaboratively on the construction of incremental housing with Elemental, the studio and innovation center led by the well-known Chilean architect Alejandro Aravena, in which the Copec subsidiary also has a stake. For the professional, the essential contribution of this modality is that "the owner receives the complete structure for the final state of his house, allowing, with an open system, to move over time from an initial standard of social housing to a future middle class one." In addition to the initial plan, this model considers the structural part for the expansion, with a roof and an adjoining wall.

_ in the photo: Elemental's Villa Verde project, located in Constitución, Chile.

Elemental's founder and 2016 Pritzker Architecture Prize winner says that, although this is not an antidote to the housing deficit, "it is a mechanism to ensure that the response to the problem does not get stuck at one level, but can evolve and that the solution is not exhausted when the State provides a house." This is what is called "porous urbanism", i.e., it has the flexibility and capacity to mutate, change direction in size, type of use and functionality, regardless of the socioeconomic class targeted.

The joint work between ARAUCO and Elemental has resulted in projects in different regions of the country, in which incrementality is the basis. This approach has contributed to improving the quality of life of thousands of families, making them

with first and last name

_ in the photo: E2E's DS-19 project, located in Casablanca, Chile.

One of the first housing developments was part of the ARAUCO Workers' Housing Plan in Constitución, after the 2010 earthquake and tsunami. Portal de Curanilahue was also built for company employees, with 700 units and adequate densities so that people can live in a very good location, in addition to an efficient organization of common space in microneighborhoods.

19 _

_ in the photo: Alejandro Aravena Founder of Elemental and 2016 Pritzker Architecture Prize.

index

general interest

from the inside

with first and last name

worldwide

with the people

The Emergency Housing Plan is ambitious and the deadlines are tight. For the commitments to be fulfilled, the key is to industrialize the construction. This means assembling the structure in a factory and having the walls, windows, interior and exterior insulation transported from there to the site, where the modules are assembled and the finishing work is done.

The material used in most of the projects is wood. And when it comes to wood, ARAUCO knows all about it. That is why, through E2E, the company actively collaborates with the government so that every day there will be more houses like María Morales'. But not only is it present in social housing, but also in industrialized construction in general.

Another advantage of industrialized construction is the environmental impact. "This is minimized by generating less waste and also because the number of trips to move materials is significantly reduced," says the executive. And as for the material, the sustainability of wood, a renewable resource with an important role in capturing CO2, is indisputable.

news

E2E'S MISSION IS TO IMPROVE PEOPLE'S LIVING CONDITIONS THROUGH THE DESIGN OF HIGH-TECH AND EFFICIENT BUILDING SOLUTIONS.

— towards maximum efficiency

The advantages of this system, which has been gaining popularity around the world, are many. Felipe Montes, of E2E, highlights the execution time, "which is reduced by up to 70% compared to traditional construction and makes it possible to produce more than one house per day. On the other hand, worker safety and quality control are much more manageable as about 80% of the process is carried out in an industrial facility and not on site."

summing it up

_ in the photo: E2E plant, located in Maipú, Santiago.

— more than a good hous One of the challenges that E2E seeks to address is to make housing both incremental and industrialized. And it is doing so in alliance with Elemental. The idea is to use, for a unit subsidized by the DS 49 decree, the same technology and quality of products that are used in a 400 m2 residence, a clinic, a building or a school.

The effort aims at production in large quantities, with high efficiency standards in assembly while generating friendly environments to live in.

20 _ Alejandro Aravena warns that the focus should be on generating better cities. In this line, more than a good house, the aim is to build is a good neighborhood, that space in which a group of families coexist and share daily life. Felipe Montes complements by pointing out that, through the architecture and shape of the neighborhood, its common spaces and security, a standard of quality of life is built, where the number of families, the layout of the houses, their orientation and the connectivity of the sector become relevant components.

The architect adds that the scale and complexity of the housing and land deficit "require expanding the toolbox

index

general interest

INCREMENTAL SOCIAL HOUSING: Based on an open system that allows to double the constructed area.

from the inside

with first and last name

worldwide

with the people

summing it up

and think about housing complexes with higher densities and medium heights. We cannot continue extending the urban sprawl, because that dilutes the concentration of opportunities for work, study and access to services," he stresses.

Thus, together with Elemental and CTEC, the technology center promoted by Corfo to innovate in construction, ARAUCO will contribute with the know-how and quality of its main raw material to collaborate with the State in the plan to address the highest housing deficit in the last 20 years. The goal is 260,000 homes in four years, a figure that is almost utopian if not for the innovation, efficiency and sustainability inherent in industrialized construction.

51 M2

news

E2E and Elemental innovate and collaborate to massify housing under the Housing Emergency Plan, achieving:

70% Less time to build a housing unit, compared to traditional construction.

OF SURFACE

21 _

2

260.000

BEDROOMS Homes as the goal for the next 4 years.

1 BATHROOM

OPEN CONCEPT FOR KITCHEN AND LIVING-DINING ROOM

A DRY, IMPREGNATED AND STRUCTURAL WOOD CONSTRUCTION

LARGE WINDOWS, CROSS AND PASSIVE VENTILATION TO PREVENT HUMIDITY

index

general interest

from the inside

with first and last name

worldwide

with the people

THE SUSTAINABILITY OF WOOD IS INDISPUTABLE, AS IT IS A RENEWABLE RESOURCE AND PLAYS AN IMPORTANT ROLE IN CAPTURING CO2.

summing it up

news

been inaugurated, and there is a project in Linares in which this material will be used.

E2E and Elemental will continue to innovate and collaborate to massify housing under the Emergency Plan. Thus, more families like María Morales' will be proud owners of a house or apartment of excellent quality, certified, safe, with optimal thermal and acoustic performance, energy efficient, customizable to their needs and, above all, that privileges people's dignity.

22 _

— shared challenges Increasing the use of wood in construction of all types, including mid-rise buildings, is one of E2E's focuses. Felipe Montes points out that the growing scarcity of land is making it increasingly difficult to build houses, so this type of building is the way forward.

To this end, the company will continue to promote the use of new products, such as cross-laminated timber (CLT), a structural panel made up of several layers arranged perpendicular to each other, which makes it possible to build at greater heights. In fact, Felipe Montes points out that a CLT and laminated beam plant has already

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

examples that inspire

Los Artesanos housing complex in Vallenar, inaugurated in August 2023, is the first project built as part of the alliance between E2E and Elemental.

This residential complex includes 29 incremental industrialized housing units, which will house the workshops of their owners: a group of artisans from the same location.

23 _

The houses are organized around a common space that includes children's playgrounds and parking lots. In addition, this area can be transformed into a temporary trade fair for the commercialization of products made by the neighbors themselves.

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

24 _

index

general interest

from the inside

with first and last name

worldwide

SEVEN COLLABORATORS, EXPERTS IN CYBERSECURITY, ANALYZED THE MAIN RISKS, CHALLENGES AND OPPORTUNITIES IN THIS AREA.

with the people

summing it up

news

with first and last name

empresas copec roundtable:

CYBERSECURITY, A SHARED RESPONSIBILITY This year, for the first time, cybercrime ranked in the top ten of the most relevant risks for the next decade, according to the World Economic Forum's Global Risks Report 2023.

In this context, Empresas Copec and its subsidiaries have departments which are specialized in cybersecurity, a topic that is addressed at the Board level, involves senior management and permeates all areas of the organizations.

25 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

designed to protect the internal network. We had to implement several cloud tools, so that the computers had the latest security patches, both at the operating system and software level, regardless of the network to which they were connected."

identify an attack. In addition, we must use automatic tools, automate processes and have a strategy and a playbook ready, so that we do not fall into improvisations."

Miguel Saldías, Information Security officer at Abastible, adds: "There are attackers spread all over the world, with many tools, budgets and variants to attack us. In that sense, it is essential to have a strategy to be able to better manage the resources provided by each of the companies that we belong to and, based on that, to be able to timely

In the case of ARAUCO, its Information Security deputy manager, Náyade Zúñiga, says that the first thing they did as an IT team was to understand the business.

"What are the risks that the industry is facing, what are the threats, where are

26 _ Participants in this new meeting included Carlos Vera, Chief Information Security Officer (CISO) of SERCOR; Luis Felipe Espinoza, Operations and Cybersecurity deputy manager at Copec; Hernán Villagrán, Information Security officer at Empresas Copec; Náyade Zúñiga, Information Security deputy manager at ARAUCO; Miguel Saldías, Information Security officer at Abastible; Miguel Hernández, Cybersecurity director at Terpel, and Fernando Riveros, IT deputy manager at Orizon. The discussion was led by Francisca Riveros, Communications manager at Empresas Copec.

— a challenging scenario The figures speak for themselves. According to Microsoft data, cybercrime increased by up to 600% after the pandemic. In addition, Knowbe4 estimates that ransomware, an extortion attack method used by cybercrime, will cost its victims around US$265 billion per year by 2031, with one cyber-attack (on a consumer or business) every two seconds. This scenario represents a major challenge for companies, which must be prepared to deal with information security incidents effectively and on time.

For Fernando Riveros, IT deputy manager at Orizon, the cybersecurity challenge exploded with the pandemic. "As a result of remote work, 90% of computers had to go off the network and connect from homes or public places. And that was quite a challenge, particularly because our entire infrastructure was

index

general interest

from the inside

EMPRESAS COPEC AND ITS SUBSIDIARIES HAVE DEPARTMENTS WHICH ARE SPECIALIZED IN CYBERSECURITY, A TOPIC THAT IS ADDRESSED AT THE BOARD LEVEL, INVOLVES SENIOR MANAGEMENT AND PERMEATES ALL AREAS OF THE ORGANIZATIONS. we, and based on that context, develop a strategy, considering that ARAUCO is an industrial company.

We assessed what the risks are and, accordingly, we developed work plans with a focus on the issues that may eventually become more critical. Threats are always going to increase; the important thing is to understand where we are and to start working to address them."

For Luis Felipe Espinoza, Operations and Cybersecurity deputy manager of Copec, what the Information Security team has to do today is totally different from what it did five years ago,

with first and last name

worldwide

considering there are new techniques and tactics to attack.

"Fortunately, automation allows us today to have a greater capacity to effectively manage the excessive alarms that are being triggered, since the number of incidents detected is high, but we have to know how to determine what really is a threat and what is not. And then react quickly. To do this, it is key to look at the environment. And that means being vigilant. In this sense, at Copec we have made an effort so that the security teams start to understand, with some cyber-intelligence services, who are behind a cyber-attack, who are those who are constantly knocking on the door in the industry and thus understand what their techniques and tactics are, so that when an incident happens, you know

with the people

summing it up

news

that they belong to such and such a group and that they work in such a way, which allows you to be much more prepared."

Miguel Hernández, Cybersecurity Director of Terpel, adds: "In Colombia, where we have our operational base for all of Latin America, we are focused on driving the transformation of our services and encouraging the adoption of new technologies.

Obsolete technologies represent a breeding ground for cybercriminal activity.

Therefore, our approach covers not only the implementation of robust defensive measures, but also eliminating obsolete technologies. This is essential, as such

technologies could provide a perfect surface for large-scale cyber incidents to unfold."

Hernán Villagrán, Information Security officer at Empresas Copec, says: "We are watching how the global cybersecurity landscape is evolving on a daily basis. Attack techniques are becoming more sophisticated and force organizations to be always on their guard and at the forefront. In this context, it is important to be prepared to prevent, contain and recover the different critical business processes of companies. Today, in a much more digital world, the downtime of services and the impact on all stakeholders must be kept to the minimum possible."

With over 27 years of experience working for Empresas Copec and subsidiaries, Carlos Vera, Chief Information Security Officer (CISO) of SERCOR, provides his view on how these companies aare tackling the complex cybersecurity scenario. "We have never stopped doing things right, or at least

27 _

index

general interest

from the inside

with first and last name

that is what we try to do within the group's subsidiaries. And these professionals who are in this roundtable demonstrate this clearly, as they very well understand the challenges of each of their organizations, and I think that is very relevant from the point of view of operational continuity and enabling new businesses from technology.

Let's remember that we will most likely be introducing more and more technology in our core business areas. Therefore, our concern for the coming years will not only be IT cybersecurity, but also the continuity of the operational areas."

worldwide

with the people

summing it up

news

— promoting a culture of cybersecurity Participants agree that organizations must foster a culture of cybersecurity, where the topic is addressed at the board level, engages senior management and spreads throughout the organization.

For Hernán Villagrán, cybersecurity is a topic that should be considered within the long-term strategies of companies and from there promote an internal culture. "I think that, at this point, training collaborators is fundamental, since we cannot apply automatic rules for them to act in a certain way.

Therefore, awareness and how they have to be prepared, know what and who to report to or how they can contribute to the security of the entire organization, is key. In addition, we must consider that threats or risks do not only come from the outside, but there could also be an internal component that impacts operational continuity."

Luis Felipe Espinoza agrees: "At Copec, corporate governance is key, because not only does it help to generate awareness and make it permeate, but also because that is where we have to define the guidelines for how we are going to handle cybersecurity issues. And that is associated with the definition of risk appetite. And that allows us to quickly define how far we are going to go, how far we are going to add services, how far our people are going to be prepared. Consequently, the continuous engagement of the companies' senior executives is crucial for this matter."

28 _

index

general interest

from the inside

with first and last name

worldwide

with the people

ACCORDING TO MICROSOFT DATA, CYBERCRIME INCREASED BY UP TO 600% AFTER THE PANDEMIC, A SCENARIO THAT REPRESENTS A GREAT CHALLENGE FOR COMPANIES. Náyade Zúñiga says: "In the case of ARAUCO, I would also add suppliers and vendors, who play a very important role in upholding our security scenario. Therefore, we must extend our cybersecurity practices to those who also deliver products or interact with the business."

Miguel Hernández adds: "At Terpel, we see cybersecurity as a responsibility that transcends the exclusive scope of IT. This is because the associated risks can show up on several fronts. Therefore, the responsibility is shared and ranges from operations staff to physical security guards, who ensure compliance by controlling the entrance to our facilities and preventing unauthorized access to the building. A physical security breach at an administrative site could trigger situations such as visitors connecting to open network ports and infiltrating our network. As a team, we act as a strategic guide for the company, steering it towards specific goals. However, it is important to understand that we cannot cover all variables by ourselves. Thus, the commitment of the entire organization is key to achieving comprehensive security."

Miguel Saldías continues: "At Abastible we believe that it is extremely important to provide tools to the people who work in the company. Many times, we assume that since we are specialists, everyone has to be, and actually we have many generations that were probably born when there were not even computers and we are asking them to know about cybersecurity. So, transferring that knowledge is a challenge. In that sense, we have a very broad awareness program, starting with the onboarding of people when they join the company, to other lectures that we carry out throughout the year."

According to Fernando Riveros, "it is important for the entire organization to be prepared for scenarios that one might not expect or imagine to happen... Who would have thought a few years ago that we would be living through a pandemic? But, in deed, these crises do happen, and when you least expect them.

summing it up

news

Hence the importance of having a methodology for responding to incidents, so that when they happen, we are clear about what we have to do, what the procedure is, who to call, who has to react first, what the steps to follow are.

And it is also important to carry out simulations of these incidents."

In this regard, Carlos Vera points out: "Cybersecurity is a business enabler in today's world, where technology is predominant and will be predominant from now on. And this business enabler also implies a cultural change, where we have three, four or five generations that are facing the most brutal transformations that humanity has undergone in recent centuries. Just think that in the last five decades, 90% of the patents for any invention since mankind has existed have been created. Moreover, the culture of cybersecurity did not exist 20 years ago. So, the work being done by those who are leading this issue in Empresas Copec and its subsidiaries is extraordinary, not only from the business point of view, but also from the point of view of our houses, our homes.

29 _

index

general interest

Because this culture has to be at all levels, at a national level, at the level of our organizations, at the State level. The coordination that we can reach with the public sector, the academy and others is vital in this need to have a greater cybersecurity culture."

Meanwhile, Hernán Villagrán says: "I believe that the biggest challenge we have today is to bring employees closer to an area that is highly technical, with a very complex language. We have to make them understand the relevance of these issues, because otherwise they will never internalize it. Moreover, they must take it very seriously and see it as a real contribution from their roles. In this line, one of the initiatives that we have implemented since 2022 in Empresas Copec was to add a cybersecurity item in the performance evaluations of the entire team, which translates into giving it greater relevance, so that employees really consider it and understand that promoting information security is everyone's responsibility and is part of their daily work and performance."

Náyade Zúñiga points out that developing this culture requires a lot of work and effort. "It is not a matter of sending a lot of newsletters or of

from the inside

with first and last name

worldwide

doing a campaign during cybersecurity month, but rather of building a cybersecurity culture, looking for the best way to do it and making it attractive to those who receive it. The challenge is how to reach the collaborator, the user, so that he/she joins this cybersecurity team.

Because in the face of an incident we have a chain of people who should interact. The employee, who identifies a threat, should help us to contain the incident, but also to recover from it. Therefore, it is a complete chain that interacts in this problem."

with the people

summing it up

news

— artificial intelligence: threat or opportunity?

The participants in the roundtable agree that AI can have both positive and negative impacts, and that a key factor in this matter is time.

Luis Felipe Espinoza comments: "Nowadays, this proliferation in the use of technology, mainly led by artificial intelligence, means that people are increasingly using information and data on a massive scale. And that is where I think we have a tremendous

THE PARTICIPANTS IN THE ROUNDTABLE AGREE THAT AI CAN HAVE BOTH POSITIVE AND NEGATIVE IMPACTS, AND THAT A KEY FACTOR IN THIS MATTER IS TIME.

30 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

challenge as a team, which is how we take care of that upper layer that is above the tactical layer of cybersecurity, which is responsible for safeguarding information assets."

Miguel Hernandez adds: "It is necessary to add artificial intelligence in the analysis of our telemetry to reach a holistic visibility of our ecosystem. Giants in this field such as Google and Microsoft are making remarkable progress, developing capabilities to observe and model specific threats that could evade our defense systems. Regarding the use of artificial intelligence, we are moving toward a break-even point where it

will become a mainstream technology for both offensive and defensive purposes. It is critical to recognize that as we move toward this goal, some individuals will leverage it with malicious intent, while others will employ it for beneficial purposes. Therefore, in the course of this process, it is of outmost importance that we outpace our adversaries in adopting AI for defense, faster than they adopt it for attacks."

Carlos Vera concludes: "Among the risks I see in AI is that it can be used to impersonate people, resources or different elements of the organization. Other things it can do is violate the use of intellectual property generated by third parties. On the other hand, it has been detected, for example, that in very classic application development repositories, these AIs are able to generate code without you knowing that it is malicious. The AI also has the ability to scale up the customization of attacks against our collaborators by generating very special emails like phishing. Now, within the opportunities, looking at the cybersecurity area, it has to do with being

31 _

able to automate our processes. And we can introduce it either in our monitoring, detection, even attention and response processes, or have our partners or suppliers incorporate it too, in order to provide a much broader coverage than what we can do by ourselves. That is clearly a good use. Artificial intelligence is an extremely valuable tool if we use it in the right way."

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

what are the most relevant cybersecurity challenges?

"I think adapting is the key. It is a fact how fast technology is evolving and how it will be built on other existing technologies to keep growing. And the important thing is that we, in our roles, push people to adapt, to know the risks and not to become obsolete. If we start working or we want to implement a solution that will reduce some risks, but we take a long time to implement it, probably in that time it will already be obsolete and there will be another solution that we will need, with a completely different approach. So, it is essential to always be at the forefront of new technologies and trends." hernán villagrán Information Security Officer at Empresas Copec.

"For us, the challenge is that everything we do should respond to a need of the company rather than just a practice that is written in a standard, that is, it should effectively respond to what ARAUCO needs, with a focus on the continuity of the facilities and the business. For us, this is the essence of cybersecurity: to be a partner for the business in its challenge as a company, so that it can grow and achieve its strategic goals." náyade zúñiga Information Security Deputy Manager at ARAUCO.

"A major challenge is the creation of knowledge for our organizations, of what development and innovation associated with cybersecurity means. Cooperation must remain a potential for developing cybersecurity issues at a Group level. Cybersecurity no longer exists only within our sphere of control, it is in the entire organization, in all our employees and their families, and so on. So, the cybersecurity culture really has to be one of the fundamental focuses of development from now on. And I left the last word that I think is the defining word in the cybersecurity model: resilience.

Our entire organization and our business survival are based on us being resilient in the face of a cybersecurity event." carlos vera Chief Information Security Officer (CISO) at SERCOR.

32 _

index

general interest

"At Abastible, the biggest challenge we have is to standardize processes, tools and generate efficiency based on the realities of each country. In this sense, collaboration is key. And we have been making progress in this regard.

Before, each country was an independent republic in terms of cybersecurity management and there was no such collaboration as there is today. However, we still have a long way to go, and that is why I think that's the biggest challenge we have in the short term." miguel saldías Information Security Officer at Abastible.

from the inside

with first and last name

"In cybersecurity management, time is determinant and is positioned as one of the most important factors. For example, the time it takes to deploy security patches, the time it takes to update defense mechanisms or to deal with technological obsolescence. One of the most important challenges we face is to reduce threat detection and response times, since, ultimately, the difference between the enemy and us lies on how quickly we observe and act in the face of anomalous behavior that could trigger a major incident." miguel hernández Cybersecurity Director at Terpel.

worldwide

with the people

"I think it's about adapting to the changing market, because in terms of tools, new developments and in the IT market, new products are constantly being released and each one of them has a different reality. In addition, the market is evolving more and more in terms of attacks, threats, malware, hackers, etc. In fact, today the main motivation for them is economic, unlike 20 years ago, when there was some kind of romanticism in creating a virus, today we are talking about a million-dollar business, a mafia that moves this. Therefore, I believe that this is the main challenge for us." fernando riveros IT Deputy Manager at Orizon.

summing it up

news

"We see major challenges along three lines.

The first is the protection of information, that is, not only to take care of operations, but also of the information that flows and is distributed within the company. Acknowledging it, taking inventory of it, classifying it, defining how it will be protected. The second issue is to continue to make progress in automation, as we believe that it is a tremendous tool that allows you to gain time. We have already made some automation efforts that have been quite beneficial for us and we believe that, to the extent that we continue to contribute with automation in cybersecurity processes, we can also gain a little bit or get closer to the speed of the people who want to attack us. And the third point is the coverage capacity that the cybersecurity team must have." luis felipe espinoza Operations and Cybersecurity Deputy Manager at Copec.

33 _

index

general interest

from the inside

with first and last name

worldwide

with the people

basic recommendations to prevent cyber-attacks on companies • Promote a cybersecurity culture in companies. It is important that employees know how to contribute and how to protect information from their own roles.

• Use secure passwords. Passwords should not include personal data (name, date of birth), sequential numbers (123456) or any other information that can be easily inferred.

• Access data is unique and non-transferable and must not be disclosed to third parties.

This applies to co-workers.

• Verify that the senders of e-mails correspond to reliable sources. To do this, check the spelling, signature footer, complete e-mail, etc.

• Keep computers and applications up to date. Fixing vulnerabilities in known applications can prevent major incidents.

• Constantly back up critical information to keep an adequate level of operational continuity and disaster recovery.

summing it up

news

• In case of any suspected anomalous activity, immediately report it to the area or person in charge of Information Security, so that they can analyze it and take actions in time.

• Constantly research new trends and threats in cybersecurity.

34 _

index

general interest

from the inside

with first and last name

worldwide

WITH SUPPORT FROM THE COPEC-UC FOUNDATION, DR. ALEXIS KALERGIS IS MAKING PROGRESS IN THE DEVELOPMENT OF A VACCINE AGAINST THE RESPIRATORY SYNCYTIAL VIRUS.

with the people

summing it up

news

from the inside

copec-uc foundation:

SCIENCE THAT CONNECTS WITH PEOPLE One of the most recognized faces on the road to overcoming the COVID-19 pandemic, Dr. Alexis Kalergis, continues today moving forward with the development of another vaccine, this time against a virus that wreaks havoc on children, immunocompromised patients and the elderly: the respiratory syncytial virus.

Convinced that the generation of knowledge and innovation are deeply linked to each other and anchored in the human being, the professor at Pontificia Universidad Católica de Chile, whose research has been supported by the Copec-UC Foundation, hopes that the joint work between the government, the private world, academia and citizens will continue after the official end of the COVID-19 emergency at world level, recently stated by the WHO.

35 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

There are several images that the pandemic left for Dr. Alexis Kalergis, but there is one that he remembers with special emotion: the journey of several trucks that, with the Chilean flag at the front, were moving swiftly through the streets of the city with a load that was both specific and symbolic: the vaccines that would signal the beginning of the end of the sanitary crisis generated by SARS-CoV-2, the virus responsible for COVID-19. For the renowned scientist, UC academic and one of the architects behind the Sinovac vaccine in Chile, this postcard brings to mind a concept far removed from exaggeration and excesses: humility.

"You realize that as a human being you are so vulnerable, not only biologically or health-wise, but also emotionally," says the biochemist and PhD in Immunology and Microbiology from Yeshiva University's Albert Einstein College of Medicine in the United States, from his office in Pontificia Universidad Católica de Chile's main building. He maintains that same perspective today, when, together with his team, he is working on another project of significant social importance: the development of the first vaccine against the respiratory syncytial virus for newborns in the world, which will

36 _

provide them with permanent immunity.

Kalergis began this journey around 2005 and has recently been receiving support from the CopecUC Foundation. Just as they were about to begin the Phase 2 study in humans, the pandemic struck and, with it, a change in priorities. Now that the emergency is over, according to the WHO, Kalergis' team is about to begin Phase 2 studies with the elderly. Based on the results

obtained, they will continue testing in children. "We hope to complete these Phase 2 studies next year and hopefully be able to start Phase 3 studies towards the end of 2024 or early 2025," he says. Then, it is necessary to wait for the data which, if favorable, could back the approval of the product for population use, which should take place between 2025 and 2026.

The respiratory syncytial virus (RSV) is a complex pathogen with a significant global public health impact. It was discovered in 1956 and causes infections in lungs and the respiratory system. It particularly affects children from birth to two years of age, the

index

general interest

from the inside

“IF OUR VACCINE PROVES TO BE SAFE AND EFFECTIVE, IT WOULD BE A GREAT CONTRIBUTION TO HUMAN HEALTH," SAYS KALERGIS.

with first and last name

worldwide

with the people

1956 The discovery

SYNCYTIAL VIRUS (RSV)

Infections in lungs and the respiratory system.

Severely affects:

2005 Work began in Chile on the development of first syncytial virus vaccine for newborns in the world.

CHILDREN FROM BIRTH TO 2 YEARS

THE ELDERLY

PEOPLE WITH HEART AND LUNG DISEASES

summing it up

news

elderly, people with heart and lung disease and, in general, the immunocompromised population. All of them are at risk of developing a very serious condition that can even lead to death. Professor Kalergis also points out that there is a risk of after-effects: "We published a paper in 2020 that shows how the syncytial virus can affect language learning in infants in Chile. There is respiratory obstruction as a result of the infection and the inflammatory response that is triggered, but what is worrying is that it goes further and can reach the central nervous system." Hence the importance of being alert to the symptoms - severe cases are associated with fever, intense cough, wheezing, rapid or difficult breathing and bluish color of the skin due to lack of oxygen and to carry out a diagnostic test to confirm the case.

Currently, there are vaccines against RSV in the world for adults, and it is expected that soon there will be one for pregnant women, so that they can pass on immunity to their unborn children and thus protect them for a while, but there is no specific vaccine for children that generates lifelong immunity. Why embark on such a complex task?

37 _

index

general interest

"We were first motivated by the fact that it is a high-impact public health problem; second, because this phenomenon has an impact on the health of children and the elderly; third, that from the scientific-immunological point of view it is an interesting problem to study; and fourth, we believe that we have a vaccine that could be the solution to the problem, and we believe that the science resulting from academic-university activity, together with the efforts from the private sector and the government contribution, makes it possible to find solutions, as was the case with SARS-CoV-2. Overcoming the COVID-19 pandemic was the result of the work between science from the academia, the industry and the

from the inside

with first and last name

worldwide

with the people

summing it up

news

public sector, and we believe that we can make a contribution. If our vaccine proves to be safe and effective, it would be a great contribution to human health," says the doctor. He explains that the platform of the product they are creating is based on BCG, which is the current immunogen used as vaccine against tuberculosis, and that has been applied for more than a century to newborns, with an excellent safety record: "We modified it in order to induce protection against tuberculosis and syncytial virus."

— innovation is social Alexis Kalergis says that the stereotype of the lonely scientist, locked in his laboratory with his microscope, is obsolete. For him, science is social, associative and connected. His own path is a reflection of it: "I think that since I was a child, I probably had the vocation to learn, to study, to understand the environment a little, scientifically speaking, but I also

had important instances of social action. When you engage in this social action, you recognize, understand, learn what is going on in the environment and what problems are affecting the population. You have to get out of your comfort zone, be there, exposed." In his undergraduate years he took part in summer jobs and was president of the students' council: "That also gives the opportunity to interact not only within the UC environment, but also with other universities, in an attitude that seeks to contribute."

He then continued his academic career in the United States, where he met many people who inspired him, such as Stanley Nathenson, Mathew Scharff, Betty Diamong,

38 _

index

general interest

ALEXIS KALERGIS SAYS THAT THE STEREOTYPE OF THE LONELY SCIENTIST, LOCKED IN HIS LABORATORY WITH HIS MICROSCOPE, IS OBSOLETE. FOR HIM, SCIENCE IS SOCIAL, ASSOCIATIVE AND CONNECTED.

from the inside

with first and last name

the scientific world, if one looks a little more into the details, the percentage of academics who dedicate time and effort to this subject is still low, both in Chile and at a global level. But that can be overcome, because he asserts that innovation is also a learning process: "Not all scientists have the interest to take the fundamental knowledge they have generated in their research and take it to an innovative process. I think we have to work on that culture."

Jeff Ravetch and Ralph Steinman, the latter being the recipient of the only posthumous Nobel Prize in history. He also highlights his students from the faculties of Biological Sciences and Medicine, where he is a full-time professor: "As an academic, I have had the great honor of having in my group very, very intelligent and creative people, young people who to this day accompany me and who, through their research units, undergraduate theses, doctoral theses or postdoctoral work, have taught me a lot."

This interaction to which he refers is key when thinking about innovation, which he considers to be an eminently social phenomenon: "It is not something that one does individually, it has a deep social foundation. It seeks to link with a technology that solves problems that impact society." In this sense, the also director of the Millennium Institute of Immunology and Immunotherapy assures that, although as a concept it is very much embedded in

worldwide

with the people

summing it up

news

— a propeller that lifts everyone The Copec-UC Foundation is a strategic alliance created in 2002 between Empresas Copec and Pontificia Universidad Católica de Chile, with the aim of promoting scientific and technological progress in the country. The Copec-UC Foundation has supported Dr. Alexis Kalergis and his team in three highly relevant technologies: the creation of vaccines against SARS-CoV-2, for COVID-19 and against RSV, as well as

39 _

index

general interest

from the inside

with first and last name

the development of an antibody against the latter. But it was undoubtedly the pandemic that highlighted to the whole country the positive effects of implementing the four-bladed propeller model, where the State, academia, the private world and the citizens are represented.

with the people

summing it up

news

His hope is that this momentum will not be lost now that the emergency is over, and that companies will continue to be part of the generation of knowledge, transfer and innovation: "Those local initiatives existing in our country must be highlighted, because they should be models for the industry to follow, and that is something we all agree on. I think that all our governments aspire to promote private investment in science and technology, as well as many universities and national and international research centers."

"If we act in an associative, generous manner, with a will to collaborate, magnificent things can be achieved," the researcher states categorically.

"In these networks, the private sector is a tremendously relevant player on several fronts. First, a large part of the

technologies needed to address the pandemic derive from there. A large part of the products are, effectively, from the industry, without detracting, obviously, that there may be very important public initiatives that must be looked at and see how they connect. Secondly, the connection of the private sector with the places where knowledge is created was fostered during the pandemic, and that allowed them to become part of the developments, particularly in vaccines, which was the area we worked in, but also in others, such as mechanical ventilators, diagnostics, etc." He adds that the pandemic impacted the same community where the companies operate, so there is also traction from that side.

worldwide

“IF WE ACT IN AN ASSOCIATIVE, GENEROUS MANNER, WITH A WILL TO COLLABORATE, MAGNIFICENT THINGS CAN BE ACHIEVED," STATES KALERGIS.

40 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

41 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

from the inside

copec and ampere energy:

COPEC IS EXPLICITLY COMMITTED TO THE TRANSITION TO GREEN SOURCES IN ORDER TO MOVE TOWARDS ENERGY EFFICIENCY.

POWERING SMART ENERGY STORAGE By taking control of 65.2% of Ampere Energy in June of this year, Copec became the main shareholder of Ampere Energy, a leading Spanish energy storage company.

This strengthens the delivery of better self-consumption solutions combined with storage, empowering consumers and companies to play an active role.

42 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

same time it has problems with the transmission infrastructure. This scenario, added to the previous one, makes it necessary to think about distributed generation, that is, small units connected to the transmission grid, or self-generation in homes and businesses.

And in order for energies such as solar energy to take up more space in the matrix, there must be methods to move it from production schedules to consumption schedules. Hence, a new challenge arises: the focus is no longer on applying the best methods and technologies to produce, distribute and use energy, but on how to store it in the most efficient way possible, to guarantee its availability at any time and place.

_ in the photo: Leonardo Ljubetic Manager of Copec's Development and New Businesses division.

The energy that comes from nature is, to a large extent, subject to its mood swings. This means that if it is very cloudy, if the wind is not blowing strongly enough or if the sea is calm, we will not have solar, wind or wave energy that day, respectively.

To this example, which is a very simplistic illustration of a complex reality, we must add another element: we consume electricity several hours a day, but the sun is only with us for seven or eight; in other words, in this case, generation is mismatched with energy use schedules. On the other hand, although Chile has extraordinary conditions for the development of renewable energies, at the

— intelligent storage Copec is explicitly committed to the transition to green sources in order to move towards energy efficiency and, through it, reduce the environmental impact associated with the production and use of energy. Thus, for years and on an ongoing basis, the company has been innovating and adapting its service models to promote a comprehensive offer. This includes from the generation to the commercialization of renewable energies and currently makes up one of the most complete portfolios for the residential, commercial and industrial segments.

But it was necessary to implement intelligent storage systems and this required a strategic partner. Leonardo Ljubetic, Manager of Copec's Development and New Businesses division,

says that the search was for companies "that have a life of their own, develop and grow rapidly, leading their markets and with a long-term business plan."

He adds that those who partner with Copec "must significantly contribute to the value proposition that we are building, leveraging our capabilities, generating new ones and helping to strengthen our investments."

With that requirement in mind, the focus turned to Spain. That is the location of Ampere Energy, a leader in the area of smart energy storage in that

43 _

index

general interest

from the inside

with first and last name

country. In 2019, Copec entered the firm, acquiring a 13.5% stake, and in June 2023 it became its main shareholder by taking control of 65.2% of the shares. At the time, Arturo Natho, general manager of the Chilean company, highlighted the relevance of this milestone in accelerating the energy transition process and extending Copec's position in the sector at the international level.

Leonardo Ljubetic notes that the interest in Ampere Energy "stems from the idea of expanding this strategy of renewable energy solutions, providing storage possibilities that are key to increasing the penetration of these energies. We are also strengthening the energy independence of people and companies in Spain as well as in Chile and Latin America, which are markets with a great future."

worldwide

with the people

From Valencia, Executive Vice-president and member of the Board of Directors of Ampere, José Álvarez, says that Copec has "a strategic vision that we liked, with people who are very active in understanding what we do and who were very determined to be part of the company. We wanted a partner like Copec."

— closer to people The implementation of self-consumption systems that combine solar generation and storage, such as those enabled by Ampere Energy's technology, contributes to energy autonomy, reduces dependence on the system and helps to reduce costs, thus minimizing the impact of future increases in electricity rates. This type of system covers all or part of a home's energy consumption and can even reinject surpluses into the traditional electricity grid, allowing 80% independence from the grid.

summing it up

news

_ in the photo: José Álvarez Executive Vice-president of Ampere Spain.

"COPEC HAS A 44 _ STRATEGIC VISION THAT WE LIKED, WITH PEOPLE WHO ARE VERY ACTIVE IN UNDERSTANDING WHAT WE DO AND WHO WERE VERY DETERMINED TO BE PART OF THE COMPANY. WE WANTED A PARTNER LIKE COPEC," SAYS JOSÉ ÁLVAREZ.

index

general interest

from the inside

with first and last name

For Álvarez, the great challenge is that the populations can become energy generators and consumers, practically independent of the general grid. "This is something that is becoming known as 'energy communities' and is one of the paradigms where we are most motivated to work," he stresses.

worldwide

with the people

summing it up

news

Energy for residential consumption is generated by solar panels.

AMPERE CLOUD

Thus, the delivery of better selfconsumption solutions combined with storage is strengthened, empowering the consumer and companies in an active role. All this, in a context where the main non-conventional renewable energies are variable and their integration requires storage facilities that allow easy and fast management of electrical energy.

45 _

The role of each party in this alliance is clear and promising.

The Spanish executive says

AMPERE BATTERY

The stored energy can also be used in the event of a power outage.

It stores the energy that is not used during the day as a reserve for night time consumption.

index

general interest

from the inside

with first and last name

worldwide

with the people

AMPERE ENERGY DEVELOPS TECHNOLOGY AND SOFTWARE TO PRODUCE AND STORE ENERGY INTELLIGENTLY, I.E., IN SMALL SPACES, IN LARGE QUANTITIES AND IN THE PLACES WHERE IT WILL BE CONSUMED.

summing it up

news

For Álvarez, this change has a very important social and ecological significance. For this reason, he emphasizes that "participating actively in the new electric paradigm is a great milestone for us, because we are going to change the model, making it sustainable and close to the citizens." Moreover, he states that the needs in this field are nowadays similar all over the world, which opens up an enormous potential for international growth.

46 _

that "Copec contributes with its extraordinary knowledge of the sector, in all areas of the industry and the global energy market. It also has a very interesting technological, financial and business development structure."

For its Chilean counterpart, "Ampere Energy has been a pioneer in the development of intelligent solutions

that enhance the use of solar energy to meet consumption needs through storage. It has been a leading player in Spain and in the world of energy, being even ahead of the rules and regulations."

Ljubetic bets that Ampere's solutions will be able to deploy their full potential and that, in turn, Spain's experience will be a reference for the Chilean market in the migration towards decentralized energy models. "We seek to bring people closer to the global trend of distributed generation, which is one of the energy models of the future and helps to optimize electricity demand, improve service in saturated areas, reduce transmission losses and lower costs. We want to encourage people and companies to generate their own energy and contribute to their communities and the system," he points out.

index

general interest

from the inside

with first and last name

ampere energy: from startup to the big leagues

Ampere Energy was born in 2015 in Valencia, as a startup that sought to do something that no one else was doing. With no more than 50 collaborators, but with a lot of innovation and talent, in a short time the company managed to reach the major leagues of the energy storage solutions market, in which its main competitor is none other than Tesla.

The company specializes in developing technology and software to produce and store energy intelligently, i.e., in small spaces, in large quantities and in the places where it will be consumed.

This is the concept of distributed production that Ampere executes in real time and with the help of artificial intelligence.

worldwide

with the people

summing it up

news

Its executive vice-president, José Álvarez, states that this is a business that requires an enormous financial effort, technical capacity and knowledge of the market, as the projects are complex and costly.

At the same time, the company needs to grow, "because the world urgently requires that the development of clean energies be pushed harder."

Therefore, having a good industrial partner, dedicated to the energy business and with an eye to the future, was fundamental. "And Copec is a company that is very clear about where it needs to move, but also knows how to adapt to how the world is moving, and there we have a common vision.

That is why we are proud to be partners and part of Copec."

47 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

worldwide

ARAUCO, COMMITTED TO LOCAL DEVELOPMENT In line with its goal of expanding opportunities for entrepreneurship, employment and growth in the communities where it operates, for more than 16 years ARAUCO has developed a relationship with winemakers and grape growers in the Itata Valley. During this period, it has generated programs and lines of support that address areas such as production, marketing and technical aspects.

Thus, with ARAUCO's support, in 2022 the volume of bulk wine from the winemakers was increased by 300,000 liters in a collaborative manner, reaching sales of over $60 million.

In addition, through the Alma del Itata store, ARAUCO brought together more than 30 winemakers from six municipalities in this area, with their 168 labels.

ARAUCO also provides technical support through the Cucha Cucha Technical Seminar, where winemakers meet to discuss different topics, such as viticulture, wine production, winemaking technology, sustainable viticulture and wine tourism.

ARAUCO's deep commitment to winemakers was also evident after the fires that affected central-southern Chile in February, when nearly 80% of the Itata Valley's crops were damaged.

In response to this unfortunate situation, ARAUCO organized solidarity sales of wines in malls in Santiago and Concepción, as well as the traditional Cinsault Night, which was held for the 6th time and where small producers were able to exhibit and sell their products. Support was also associated with production, with the delivery of bottling supplies, in addition to making available to the winemakers an innovative mobile bottling line and a free winemaking laboratory.

48 _

49 _

50 _

index

general interest

from the inside

with first and last name

IN ITS MORE THAN 65 YEARS OF HISTORY, ABASTIBLE HAS FORGED A DEEP BOND WITH THE SMALL AND MEDIUM-SIZED LIQUEFIED GAS DISTRIBUTORS IN THE DIFFERENT MUNICIPALITIES AND NEIGHBORHOODS IN CHILE.

worldwide

with the people

summing it up

news

from the inside

abastible:

GENERATING MORE THAN SEVEN THOUSAND SME JOBS IN CHILE With the final distribution of cylinders in the hands of more than 1,000 small and medium-sized companies that, in turn, generate seven thousand jobs, Abastible has focused its efforts on strengthening an ecosystem that always guarantees the availability of liquefied gas to Chilean families in every corner of the country.

Financing, state-of-the-art technology and commercial support are some of the tools provided to these small distributors.

51 _

index

general interest

from the inside

with first and last name

worldwide

with the people

In 2022, Abastible experienced an important milestone when it launched its corporate purpose. A statement that is also a commitment that guides its work and is inspired on promoting the entrepreneurial spirit.

The company's achievements in its more than 65 years of history have a direct correlation with the deep bond forged with the small and medium-sized distributors of liquefied gas in the different municipalities and neighborhoods in Chile. With them, Abastible has created a virtuous relationship, which has resulted in the generation of more than seven thousand jobs and has given many people the possibility of entrepreneurship, allowing them to progress and improve the quality of life for themselves and their families.

_ in the photo: Mario Canales Abastible distributor, with his daughter. _ in the video: The testimony of Mario Canales, winner of the "Abastible Spirit" award.

summing it up

news

IN 2022, ABASTIBLE EXPERIENCED AN IMPORTANT MILESTONE WHEN IT LAUNCHED ITS CORPORATE PURPOSE. A STATEMENT 52_ THAT IS ALSO A COMMITMENT THAT GUIDES ITS WORK AND IS INSPIRED ON PROMOTING THE ENTREPRENEURIAL SPIRIT.

index

general interest

from the inside

with first and last name

— the gaps that smes must overcome For Joaquín Cruz, general manager of Abastible, SMEs face three major problems in Chile in order to emerge: the lack of access to financing, since many of them have a level of income that does not allow them to have access to banking services; the few technological tools to efficiently manage and administer their working capital; and, finally, scale challenges, given the low level of sales due to the difficulties in making themselves known in their surroundings.

Therefore, to support SMEs in overcoming all these challenges, the subsidiary provides its liquefied gas distributors with support and resources for marketing and promotional activities, leasing and infrastructure for sales outlets, support for the structure of their companies and assistance in the case of eventualities such as accidents or theft. In addition, Abastible

worldwide

with the people

summing it up

news

facilitates the acquisition of delivery trucks through direct financing on more advantageous terms than those that a distributor could obtain individually.

"We tender the purchase of 300 or 400 trucks a year, so we get better prices due to scale economies and transfer this benefit directly to the SMEs. We have a similar model for the purchase of fuel and we are expanding the range of benefits available to distributors in other items of their daily operations, using Abastible's scale," says Cruz.

To overcome the technological gaps, the company has supported them with the digitalization of their processes, providing them with the best platform currently available for sales worldwide. This was adapted for distributors under the name DUO and allows them to digitally capture their transactions and those of their teams in the field.

_ in the photo: Joaquín Cruz General Manager of Abastible.

Abastible's general manager explains that with the technological tools "improvements will be achieved in

"NEARLY 100% OF THE SME DISTRIBUTORS WE WORK WITH ARE FAMILY BUSINESSES, AROUND A THIRD OF THE BUSINESSES ARE RUN BY WOMEN AND THE VAST MAJORITY MANAGE THEIR OWN PREMISES DIRECTLY," SAYS JOAQUÍN CRUZ.

53 _

index

general interest

the commercial management of the distributor, in terms of their operational efficiency, and this is very important, because between 20%-25% of the price paid by the end customer corresponds to the last mile cost." This tool also boosts loyalty of end customers with features such as the creation and management of customer information, the registration of all sales made in any of its channels -sales outlet, truck, call center, WhatsApp-, the real-time visualization of the location of the trucks on maps, and the management of campaigns, among others.

— positive impacts For Abastible there is a virtuous relationship with the SMEs that translates into many positive impacts.

Joaquín Cruz says that the most important is the social one, since "entrepreneurship has allowed them to raise their families and educate their children, many of them with professional careers. Nearly 100% of the SME distributors we work with are family businesses, around a third of the

from the inside

with first and last name

worldwide

with the people

summing it up

news

PROMOTING SMES:

1.100 DISTRIBUTORS

+7.000

100%

JOBS CREATED

Are family businesses

+4.000

1/3

Homes in Chile served.

Run by women.

54 _

index

general interest

from the inside

with first and last name

worldwide

businesses are run by women and the vast majority manage their own premises directly."

The SME ecosystem has also generated benefits for end customers. With a distribution network from Arica to Cochrane in the XI Region, and even in Easter Island, more than four million households have assured access to liquefied gas. And not just any gas, but one that has been marketed with the highest safety standards, since Abastible

ABASTIBLE PROVIDES DISTRIBUTORS WITH SUPPORT AND RESOURCES FOR MARKETING AND PROMOTIONAL ACTIVITIES, LEASING AND INFRASTRUCTURE FOR SALES OUTLETS, SUPPORT FOR THE STRUCTURE OF THEIR COMPANIES AND ASSISTANCE IN THE CASE OF EVENTUALITIES SUCH AS ACCIDENTS OR THEFT.

with the people

summing it up

news

is responsible for the cylinder in any place. "We seek to safeguard the safety of our distributors, their customers and neighbors, through a training process that addresses storage, transport and handling, and we also have emergency brigades," says Cruz.

This has guaranteed a quality service that is valued by customers, according to different surveys that show a good evaluation and satisfaction. Thus, in 2023, for the second consecutive year, Abastible was awarded first place in the "Cylinder Gas" sector in PRAXIS customer experience ranking.

55 _

_ in the photo: Kathia Marroquin Abastible distributor, together with some members of her team.

index

general interest

from the inside

with first and last name

worldwide

Recognized in 2022 with the "Effort and Perseverance Award" and nominated twice for "Best Customer Experience" by Abastible, she tells how she managed to move her business forward.

summing it up

what kind of training does abastible provide?

Everything I needed to know is immediately clarified with my sales assistant. For example, to implement the "order taker" tool - part of the DUO software provided by Abastible, which allows us to know who is calling, the address and what gas a customer orders - they came for a whole day to explain it to us and solve all our doubts.

"abastible gave me all the tools to be able to work."

When Kathia Marroquin, a secretary at an Abastible distribution company, was approached by the gas company to become independent and start her own agency in the San Joaquín municipality of Santiago, her mother told her in fear that she should not embark on it because of the risk involved in starting a business without experience or access to financing and, in addition, alone and in charge of two children.

Four years later, Kathia proudly tells how her business grew from a small company to a medium-sized one, the largest distributor in the municipality, with seven trucks and employing six people, including her eldest son. Without losing the simplicity that characterizes her, she has been able to improve the quality of life of her entire family.

with the people

how did your business and the relationship with abastible start?

I worked for six years as a secretary in an official distribution agency of Abastible and they proposed me to become independent with my own sales outlet. I immediately said yes, because it was my goal. It was hard at first, because I came from a salary that was not high, to consider myself as the boss, "the owner of..." and, in addition, with the only support of Abastible, because not even my family supported me.

However, the company trusted me from day one and helped me 100%. what kind of support did you receive?

Abastible subsidized my rent and gave me two pickup trucks under lease, that is, they gave me all the tools to be able to work. I only had to start buying gas. That is a very important support, because I did not have the necessary conditions to access credit. Abastible is a great backup, a great tool, a great support. I am the largest agency in San Joaquín and without Abastible I would not have been able to do it.

what has becoming an entrepreneur meant to your life?

My quality of life has changed a lot. My children are the most favored, since the little one, at least, has the possibility of going to a good school. It is a dream for any child to go to Disney, Easter Island or Brazil, which I would not have been able to do before. Personally, I am still the same simple and humble person I have always been. in what ways do you think you have impacted your environment?

My oldest son, 20, is working with me, and my youngest, 10, dreams of

news

managing the business. They are seeing a good example in their mother and want to follow in her footsteps, which is very gratifying. Besides, we can give work to other families, contribute to the growth of humble or foreign people, who do not always have opportunities. what are the next steps for your business?

We sell approximately 60,000 to 70,000 kilos per month, that is, we have gone from being a small to a medium-sized SME, which is a very important achievement. In addition, with a little of my own resources, plus some support from Abastible, I plan to buy the house next door. This will allow me to expand the business and grow, obviously.

56 _

index

general interest

"this entrepreneurship has allowed us to pay for the studies of the whole family."

Mario Canales started in the 1980s with his father delivering gas on a tricycle. Ten years ago, he began working exclusively with Abastible, growing his business.

Thus, he went from having two to 15 trucks, to serving between 10,000 and 12,000 customers in five municipalities of the Metropolitan Region and employing 15 people, including two of his sons.

Winner of the "Abastible Spirit" award, which recognizes his struggle and effort to become an entrepreneur, he explains the alliance with Abastible.

from the inside

with first and last name

how did your relationship with abastible begin?

When we decided to work only with Abastible, the company began to help us in different ways. They gave us trucks and we paid for them with our work. This way, we started growing the fleet and giving work to more people and families, which is a great responsibility. We never closed for the pandemic, we worked and worked, with protocols, masks, gloves. We have achieved sustained growth over time, we are setting higher and higher goals and we are achieving them.

worldwide

with the people

summing it up

news

how does abastible help you?

They provide me with vehicles, help me with marketing, training and are always looking out for my needs. what tools have they provided you with in order to grow?

Before, I used to work with a simple sales and purchase Excel spreadsheet, but for the last two years we have been using the DUO platform, which allows me to facilitate and speed up the distribution of orders. It is a great support, because it allows us to increase customer loyalty, to be faster in delivery, to be better organized with distribution, to see the records, find out where I am selling more or less, where can we improve. We also receive training that helps us with tools and ideas. From time to time they implement new things, they invite you to listen to motivational speeches or keynotes by sales experts. how has your business grown?

With the vehicles that Abastible has provided us, we have been able to project ourselves, opening up the field and today we have reached several municipalities: Macul, Ñuñoa, Providencia, La Florida and Peñalolén. I sell 200 thousand

kilos per month, almost 13 thousand cylinders of 15 kg. That means between 10 thousand to 12 thousand customers per month. Abastible believed in me, we have done a very good job together.

That is why I won the "Abastible Spirit" award. how has your life changed as an abastible distributor?

This enterprise has allowed us to pay for the studies of the whole family, starting with my four siblings, I am the eldest. Then my children, my nephews and nieces, they are all professionals thanks to Abastible. I have had more time, I have enjoyed life more, especially with my wife.

57 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

from the inside

"voices of the forest":

WELL-KNOWN ACTORS AND ACTRESSES BRING TO LIFE "VOICES OF THE FOREST," AN AUDIBLE EXPERIENCE IN WHICH TREES COME TO LIFE AND TELL THEIR STORIES IN FIRST PERSON.

THE MAGIC OF TREES REACHES OUR EARS Thirteen Chilean actors and actresses bring to life an unprecedented ARAUCO initiative that invites people to learn about and value the contribution of different tree species found in Chile.

58 _

index

general interest

from the inside

with first and last name

worldwide

with the people

— to know in order to protect Regarding the origin of this innovative idea, Juan Anzieta, Environmental Manager of ARAUCO, says that, for some time, the company had been thinking about a simple, direct and entertaining format to talk and educate about the relevance of trees in the fight against climate change.

"To value them, it is key to know them and understand the role they play for people and nature, which is

"When you live a lot, you have a lot to tell. Although I still have some way to go, I, lahuen, with my 2,000 years behind me, could tell you that I have witnessed the great milestones of history, from the voyages of colonization to those of space conquest."

This story is brought to us by an alerce tree. Yes, one of the world's longest-lived trees that inhabits mountainous areas and valleys in southern Chile, especially in the regions of Los Ríos and Los Lagos. The voice of actor Marcelo Alonso personifies this endangered species, while Cristián Campos does the same with the oak, Paulina García with the araucaria and Néstor Cantillana with the coigüe.

Like them, other well-known actors and actresses bring to life "Voices of the Forest," an audible experience in which trees come to life and tell their stories in first person. This unique initiative by ARAUCO is an invitation to explore the magic of the Chilean forest and to value it as part of our natural heritage.

All episodes are available on Spotify, with the aim of describing, in a different way, the history and characteristics of 13 species. This way, the aim is to bring them closer to people so that this knowledge is transformed into a better conservation and protection of the forests and the entire ecosystem that lives in them.

_ in the photo: Juan Anzieta Environmental Manager of ARAUCO.

summing it up

news

"TO VALUE THE TREES, IT IS KEY TO KNOW THEM AND UNDERSTAND THE ROLE THEY PLAY FOR PEOPLE AND NATURE, WHICH IS BASICALLY TO CAPTURE CARBON AND RELEASE 59 _ OXYGEN. THERE IS NO HUMAN INVENTION THAT REPLACES THE FUNDAMENTAL WORK OF PHOTOSYNTHESIS, AND THIS MUST BE COMMUNICATED," SAYS JUAN ANZIETA.

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

FORESTS AND ITS BENEFITS:

THEY FIGHT CLIMATE CHANGE: And help to preserve biodiversity.

THEY PROTECT ECOSYSTEMS: Where there are trees, small ecosystems are born where animals live.

THEY GUARANTEE ACCESS TO WATER: For each tree, water is guaranteed for three people.

60 _

basically to capture carbon and release oxygen.

There is no human invention that replaces the fundamental work of photosynthesis, and this must be communicated," he points out.

Forests play a fundamental role on the planet, hosting 75% of global biodiversity. "So, when we take the time to learn about the different tree species living in them, we enter a world full of wonders and discoveries. Each tree has distinctive characteristics, from its physical appearance to its role in the ecosystem. By getting to know them, we can appreciate

THEY RETAIN RAINWATER: Allowing it to filter into the different aquifers, preventing droughts and floods.

THEY PROTECT SOIL: Avoiding soil destruction and erosion.

THEY FIXATE ATMOSPHERIC CO2 And convert it into oxygen.

index

general interest

their beauty, understand their importance to the balance of nature and motivate ourselves to protect them. And that, undoubtedly, is the greatest value of this initiative," adds the executive.

At the time of the project's implementation, Bioforest scientists prepared the texts using the knowledge of years of research on productive and native species of our country. In this phase of the program, the leading characters of "Voices of the Forest" are some of the tree species found in the productive landscapes protected by the company. They were selected for being outstanding representatives of the largest biological infrastructure on the planet and for being highly efficient in capturing CO2.

from the inside

with first and last name

worldwide

with the people

summing it up

news

On the other hand, the Communications Management team was in charge of generating the alliances and engaging the actors who personify the voices of the trees. And once the material was ready, "the first thing we did was to share it with our own people at ARAUCO. The entire forestry team was included in this initiative and we felt it was part of our daily work," says Juan Anzieta.

Then came the publicity stage, both to the rest of the company and to the

61 _

outside world, making the audios on Spotify viral through different platforms, such as social networks, WhatsApp, mailing, web pages and others.

"The reception has been so good that we are excited to continue developing new content," says the executive. "There is so much to be done to bring ARAUCO's work and its importance to society in general and also to the entire Empresas Copec group, so there will be more news soon," says the Environmental Manager.

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

voices with passion

Outstanding national actors embody with talent and passion these 13 species that have their own history, life and experiences. The stories are accompanied by the sounds of the forest, immersing the audience in a unique and overwhelming sound experience that generates a special connection with nature.

62 _

These are the "Voices of the forest":

• Marcelo Alonso (alerce) • María Izquierdo (laurel) • Amaya Forch (olivillo) • Ricardo Fernández (ulmo) • Ángela Prieto (luma) • Tita Lacobelli (ruil) • Néstor Cantillana (coigüe)

• Paulina García (araucaria) • Marcial Tagle (tineo) • Alvaro Espinoza (quelue) • César Sepúlveda (eucalyptus) • Cristián Campos (oak) • Roberto Poblete (insigne pine)

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

listen to our podcast:

63 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

nature positive

AS PART OF ITS CLIMATE ACTION STRATEGY, ARAUCO IS COMMITTED TO BECOMING A NATURE POSITIVE COMPANY, 64_ THAT IS, AN ORGANIZATION WITH A POSITIVE IMPACT ON THE PLANET.

As part of its climate action strategy, and understanding that damage to nature has accelerated dramatically, ARAUCO is committed to becoming a Nature Positive company, that is, an organization with a positive impact on the planet.

In this line, ARAUCO works to preserve 142 threatened species in the landscapes where it operates, and continues making progress in its commitment to restore 35,000 hectares of native forest.

This effort is in addition to the maintenance and expansion of a network of 167 areas of high conservation value, covering more than 60,000 hectares.

"We are committed to protecting and caring for forests and their biodiversity. The magnitude of the climate crisis motivates us to work every day to preserve ecosystem values," says Juan Anzieta. "With this project, our goal is to raise awareness and promote a deep love and respect for the tree species that surround us, understanding that humanity is inextricably linked to nature."

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

65 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

from the inside

empresas copec:

EMPRESAS COPEC RELEASED ITS FIRST INTEGRATED REPORT, AN OPPORTUNITY TO EMPIRICALLY DEMONSTRATE THE IMPORTANCE OF SUSTAINABILITY IN MANAGEMENT.

DISCLOSING THE ROLE OF SUSTAINABILITY IN BUSINESS STRATEGY In April this year Empresas Copec submitted its Integrated Report to the Financial Market Commission (CMF, for its acronym in Spanish). This is the first report of these characteristics, following the new regulations that made it mandatory for publicly listed companies to jointly report their business and sustainability data.

66 _

index

general interest

from the inside

Transparent and complete information is an increasingly relevant requirement when it comes to understanding the role of companies and their economic and social contribution in the place where they are located. That any person, whether investor, shareholder, media or a member of the community, can clearly know the financial data, strategy and business model of the companies, is not only a good practice, but a regulated obligation in Chile.

Until last year, this requirement was fulfilled through the preparation of Corporate Reports, a snapshot of the state of the organization at a certain date. In addition, there were Sustainability Reports, a separate document that referred to the main indexes in these matters. According to KPMG's

with first and last name

Survey of Sustainability Reporting 2022, 10 years ago, two thirds of the 100 largest companies in the country prepared this type of report. Today this figure stands at 79%.

In November 2021, the Financial Market Commission issued the General Standard No. 461, which changed this system and will gradually force organizations to migrate to a new way of disclosing this data, through an Integrated

worldwide

with the people

Report. The goal is to incorporate, in a consolidated way, aspects such as policies, practices and goals adopted in environmental, social and governance matters, in line with international standards. This will mean the end of the Corporate Report and the Sustainability Report as they were known. The main objective is to show how companies are prepared to identify, quantify and manage their risks. The content to be delivered is divided into the following sections: Corporate Governance, Strategy, Business Model and Indicators.

summing it up

news

_ in the photo: Margarita Ducci Executive Director of the Global Compact Network in Chile.

Margarita Ducci, director of the United Nations Global Compact Network in Chile, explains: "With the aim of efficiently systematizing data, in accordance with the new era, integrated reports allow companies to disclose financial and non-financial information in a single document, raising quality standards. This is beneficial to understand the business results as a whole, that is, not only in its financial aspects, but also with a broad vision of its projection over time and its viability in the face of risks."

As established by the new regulation, the first integrated reports, mandatory in the case of publicly listed companies, were implemented this year. This was the case of Empresas Copec, which in April disclosed its report under these renewed characteristics.

67 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

— sustainability at the center of management Marianne Haramoto, Director of Sustainability and Corporate Affairs at Empresas Copec, led the implementation of the company's first Integrated Report and took the regulatory challenge as an opportunity to empirically demonstrate the importance of sustainability in management.

"This regulatory change reinforces the expectation that, in fact, the financial market already acknowledges that integrating sustainability factors into business strategy is key and material for companies. Therefore, not only the structure and timing force these issues to be disclosed at the same time, but they are also expected to be integrated into the strategic approach. In the case of Empresas Copec, we have a sustainable management model that allowed us to structure the required contents in a coherent way in the report."

_ in the photo: Marianne Haramoto Director of Sustainability and Corporate Affairs at Empresas Copec.

On the other hand, she states that the different sustainability standards and guidelines have set the tone for the way reporting should be done: "Although Chile has its own disclosure guidelines in the Standard No. 461, it is worth noting that they are aligned with global frameworks and standards, including the Sustainability Accounting Standard Board (SASB) and TCFD. This responds to trends that were already being integrated in other countries and allows us to be better prepared to apply future requirements, such as the International Financial Reporting Standards (IFRS), which seek to increase the comparability and quality of financial information related to sustainability, in line with the expectations of international

_ in the photo: Empresas Copec first Integrated Report.

68 _ stakeholders. The complexity lies in standardizing strategic content, not only metrics and data. For example, at Empresas Copec we have disclosed under the TCFD framework, which addresses climate change at different levels: governance, strategy, risk management and goals. We are reaching a consensus on what is relevant to disclose in each sector and how these indicators are measured. So, by doing it now publicly and through the CMF, it also makes it more formal."

Ducci agrees with this point, highlighting the opportunity for the greater openness that this instance represents: "It is important that companies disclose their sustainability strategies and actions in a transparent and accessible manner, and that what is provided is truthful, reliable and of high quality, so that investors and consumers can make informed

“THE FINANCIAL MARKET ALREADY ACKNOWLEDGES THAT INTEGRATING SUSTAINABILITY FACTORS INTO BUSINESS STRATEGY IS KEY AND MATERIAL FOR COMPANIES,” SAYS MARIANNE HARAMOTO.

index

general interest

from the inside

with first and last name

worldwide

with the people

JUST LIKE INVESTORS, COMMUNITIES TODAY ALSO DEMAND ACCURATE DATA ON HOW COMPANIES ARE ADDRESSING ESG ISSUES.

and responsible decisions. Today, consumers are increasingly looking for products and services that are sustainable, and private companies that adopt this practice will undoubtedly enhance their reputation and increase their customer base."

— an implementation that poses challenges The wide variety of existing sustainability standards has generated doubts about the possible gaps in the delivery of data required in this report. According to Ducci, these are often confusing for some companies and there is a need for comprehensive support when learning to measure the impact of the actions implemented, prior to their consolidation in a document: "In order to provide transparency with universal parameters, it is necessary to use standardized measurement systems and centralize

and systematize information in priority areas. Global Compact has built a worldwide online reporting system, so that all data from its member companies around the world is comparable and segmented information can be obtained according to industry, size of the organization, region of the world or country. This method will provide valuable information to strengthen areas for improvement and make progress visible, generating learning among companies."

Haramoto adds: "Not all organizations have the systems or data governance to disclose under these parameters. In addition, there must be a methodology and an internal capacity must be built in order to provide robust responses, ideally auditable, with controls and backups."

To address this situation, collaborative work is essential. For this reason, initiatives such as "Conecta" by the Global Compact Network are born, which is a platform created in Chile that seeks to provide tools for organizations and promote compliance with the 2030 Agenda and its Sustainable Development Goals. In this

summing it up

news

way, changes can be achieved that are also reflected in better analysis and delivery of data of interest through instruments such as the Integrated Report, but also through other communication channels.

Regarding Empresas Copec's experience in compiling the report, the Director of Sustainability and Corporate Affairs says that exercising the "internal muscle" of compiling the requested information in deadlines different from the usual ones was the most challenging part. "It is something we are working on and building as a corporate group." At the same time, she says that "the instance allowed us to organize the topics in a more attractive way and also to take advantage of everything we are doing. This is a big challenge for a holding company like this one, because we have the dual task of providing strategic guidelines for the Group, but at the same time consolidate and disseminate everything that is being done in the subsidiaries.

Meeting this goal was a tremendous step forward."

69 _

index

FINANCIAL MARKET COMMISSION

2021 Released its General Standard Nº 461

general interest

from the inside

with first and last name

— reaching new audiences The contents of integrated reports are no longer of interest only to those who invest in organizations; but also to communities that demand accurate data on how companies address ESG (environmental, social and governance) issues. In other words, how businesses are moving towards sustainable development. This opens the discussion as to whether these types of documents are by themselves sufficient to meet this objective.

Marianne Haramoto points out that new strategies must be deployed to reach this audience with valuable content: "The community, in many cases, may not look for answers

worldwide

with the people

in a report. So we have a lot of information that can be valuable and we are working to make it even more accessible. We are working to build this bridge, through other ways, such as those offered today by digital platforms, for example, to spread our story and make us better known. In this sense, at Empresas Copec we understand that we are a benchmark and we take this with great responsibility."

summing it up

news

CORPORATE GOVERNANCE

In this regard, Margarita Ducci concludes: "We know that companies that focus on solving some of the problems faced by their stakeholders or society as a whole, are undoubtedly better positioned to grow in reputation, market preference and investor interest. This new way of looking at business, if it can be made more widespread, will help improve the future for everyone."

STRATEGY

The content is divided in the following sections:

ENVIRONMENTAL

To jointly report on aspects such as policies, practices and goals adopted in the following matters:

SOCIAL

In line with international standards.

BUSINESS MODEL

GOVERNANCE

INDICATORS

70 _

index

general interest

from the inside

with first and last name

worldwide

first evaluations of the implementation

with the people

summing it up

news

document achieved the best levels of both completeness (80%, outstanding) and quality (62%, satisfactory). However, the "Strategy" section achieved the lowest rating (72% or outstanding in completeness and 49% or fair in quality).

On the other hand, a study by the Center for Corporate Governance of ESE Business School, PwC and Universidad de Los Andes, launched in June this year and which analyzed 39 firms, stated that 78.9% of companies disclosed their climate risks and opportunities, and that 90% declared a purpose and alignment of their strategy to the Sustainable Development Goals. This positively compares with another PwC study in 2020, which stated that only 54% of firms had defined one.

Several consulting firms have already analyzed the first integrated reports submitted in 2023. GOVERNART, for example, carried out the study "Screening ESG", where it evaluated 27 Chilean companies that reported this year, with a percentage from zero to 100. Within the published data, it scored with 74% (outstanding) the level of completeness of the information required by regulation 461, but considered the quality of the disclosed practices as "satisfactory" (51%). According to its analysis, this may be due to the fact that the companies have not yet implemented the proposed practices or that they are not fully aligned with international initiatives. On the other hand, the "Indicators" section of the

71 _

index

general interest

from the inside

EMPRESAS COPEC AND ITS SUBSIDIARIES SUPPORT SEVERAL INITIATIVES THAT SEEK TO PROMOTE QUALITY EDUCATION FOR THE MOST VULNERABLE SECTORS OF THE POPULATION, ONE OF CHILE'S MOST COMPLEX CHALLENGES.

with first and last name

worldwide

with the people

summing it up

news

with the people

empresas copec:

A LONG-TERM COMMITMENT TO EDUCATION In a context of low results in the last Simce test (Chile’s Education Quality Measurement System), two schools linked to Empresas Copec and its related companies stood out for their excellent performance.

In this interview, we talked to the Arauco, Enseña Chile and Belén Educa foundations about the Company's contribution and commitment to education for decades.

72 _

index

general interest

from the inside

with first and last name

Worrying were the results of the last Simce, which was carried out in November 2022 and which evaluated fourth grade students in the subjects "Language and Communication: Reading" and "Mathematics", and students in second grade of high school in the subjects "Language and Literature: Reading" and "Mathematics". It was the first to be carried out after the pandemic to measure the level of learning, in a context in which an important decrease was projected - worldwide - as a result of the health crisis. And so it was.

In Mathematics, both grades lowered their performance compared to the results obtained in 2018. Students in fourth grade dropped 10 points with respect to the national average, and 12 points for those in second grade of high school. The proportion of students at the "insufficient" level also increased by eight percentage points, which translates into 54% of the high school students evaluated not having the necessary knowledge. Meanwhile, in Reading, 53% of second grade of high school students presented an "insufficient" learning standard, which implies that more than half of the young students simply do not understand what they read.

worldwide

with the people

TWO EDUCATIONAL ESTABLISHMENTS RELATED TO EMPRESAS COPEC STOOD OUT FOR THEIR GOOD RESULTS IN THE SIMCE. THE ARAUCO AND CONSTITUCIÓN SCHOOLS OBTAINED FIRST AND SEVENTH PLACE, RESPECTIVELY.

summing it up

news

_ in the photo: Gloria Aguayo ARAUCO School Principal.

parents and guardians in their children's learning.

Within this context, two schools related to Empresas Copec stood out for their good results. For their community and authorities, this was not a surprise, as they consider that it is the result of a longterm work that has been sustained over time. This is the case of the Arauco and Constitución schools, both run by their respective corporations, which are linked to the ARAUCO subsidiary. These schools obtained first and seventh place in the last SIMCE, respectively.

What is the key to this success? For Gloria Aguayo, the principal of Arauco School, it is directly related to the depth with which the thematic axes of the curriculum are worked on and the concern for training and aligning teachers and, on the other hand, involving

"We do not work for the Simce, we work to help our students. We understand that education is not the work of just one person, but of the whole community (parents, teachers and students). We believe that what is important is to educate the whole person, with their values, virtues, abilities, talents, skills and vocation, focusing on the social, on

73 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

the connection with the community, etc. All our students are a challenge, they are our responsibility. No one is left out, and that is why, as a consequence of a work focused on each student, a good academic result is achieved," says the principal.

This school, located in the center of the city of Arauco, has more than 40 years of experience. Run by a corporation linked to ARAUCO, this private school is open to the community. Thus, of its 371 students, only 40% of them are related to the company and 60% belong to this town and the surrounding area. _ in the photo: Gertrudis Díaz Constitución School Principal.

The Constitución School, located in the municipality of the same name, has a similar history and purpose. The ARAUCO subsidiary decided to open this school in 1980 to guarantee the education of its employees' children, but also to open it

74 _ to the community, making it the only private school in the city that is also subsidized by the company.

For the principal of this school, Gertrudis Díaz, the Simce is an indicator of the learning progress. "It helps us to look inward, to review how we are doing, the same as the Higher Education Access Test (PAES, for its acronym in Spanish). For us it is not just a number, but the result of the incorporation and exercise of certain skills and competencies by our students. We care about the distribution of achievement and getting most of them to reach the "right" level of learning," she says.

_ in the photo: Students of second grade of high school at Constitución School, who took the SIMCE test.

This school has a strong academic and pedagogical focus. It is oriented to ensure that its students access higher education in the best conditions, without forgetting personal and value formation. "We are used to good results and these are the product of a wellinstitutionalized work. The programs are worked in a well-organized way, not improvised.

Teachers have time to discuss and validate their practices in a synergic and collaborative manner. The team is focused on learning and classes are not interrupted," explains the principal of Constitución School.

index

general interest

from the inside

with first and last name

— empowering the role of teachers and education leaders For 33 years, Fundación Educacional Arauco has contributed to the improvement of municipal education, with a long-term and transformative vision, generating networks and collaboration between the public and private sectors.

To this end, it has accompanied more than 5,700 public education teachers in programs to support reading and writing and the development of mathematics, which have an impact on more than 120,000 students each year in 38 municipalities in the regions of Maule, Ñuble, Biobío and Los Ríos, in 659 schools.

worldwide

with the people

summing it up

news

It has also helped to improve educational leadership, the availability and accessibility of books in remote areas, promoting 18 community school mobile libraries and contributing to equip five municipal libraries, in addition to supporting the participation of students in eight children's and youth orchestras.

According to a study conducted by the Center for Advanced Research in Education (CIAE, for its acronym in Spanish) of the University of Chile, which measured the impact of the Foundation over a period of 13 years on the schools and students with which it collaborates, 70% of the schools supported had a better performance trajectory than those of the comparison group. Furthermore, for the students, this support is not only linked to overcoming low performance, but also to the possibility of advancing and achieving expected learning levels.

"Students in schools that have received more intense support obtain an average of 11 additional points, both in the Language and Mathematics Simce. And the probability of overcoming the "insufficient" level in both subjects would be more than double in comparison with schools not supported by the Foundation," is read as part of the conclusions of the study.

_ in the photo: Isidora Recart Executive Director of Fundación Educacional Arauco.

It is important to note that these results are in addition to the improvement observed during the study period (2005-2018) for the group of vulnerable public schools in the four regions where the Foundation is present, which may be associated with different public policies and the country's improved socioeconomic conditions, where the Preferential School Subsidy stands out.

For the Foundation, teachers and educational leaders play a fundamental role in the learning and development of their students. "For this reason, we strengthen their transformational role in all our actions. We generate public-private alliances, we contribute to public policies that we want to promote, we seek to articulate, collaborate and generate trust. We dream of a country in which all children can develop their full potential, and we know that in Chile there will be more equity and opportunities if we have a better education," says its executive director, Isidora Recart.

75 _

index

general interest

— partnerships that transform the lives of students With this firm conviction that education is key for the country, in 2010 Empresas Copec responded to the call from Enseña Chile (eCh) to commit and join in a collective action. The invitation was accepted and welcomed by executives and its subsidiaries, who have been participating for 13 years in different training and leadership programs, providing students with work opportunities and links with the company, as well as being part of its governance, board of directors and strategic decisions.

from the inside

with first and last name

worldwide

with the people

summing it up

news

FUNDACIÓN EDUCACIONAL ARAUCO:

Private school run by Corporación Educacional Arauco, open to the community.

33 YEARS PROVIDING SUPPORT TO MUNICIPAL EDUCATION

ARAUCO SCHOOL

38 MUNICIPALITIES IN THE REGIONS OF MAULE, ÑUBLE, BIOBÍO AND LOS RÍOS

+40

76 _

YEARS OF EXPERIENCE

For its co-founder, Tomás Recart, the relationship between Empresas Copec and eCh has a common and shared purpose, which is to contribute to education in Chile. "There are no gray areas in what we are looking for with this alliance. We have goals and we are both rowing on the same side," he says.

What is important, he stresses, is to understand that education is a long-term task. "When we have more than 50% of young people who do not understand what they read, and this percentage increases as students are in the school system, we understand that this is the biggest challenge our country has and that the

5.700

40%

TEACHERS AND EDUCATION LEADERS BENEFITED

371

RELATED TO THE COMPANY

120.000

STUDENTS

60%

STUDENTS BENEFITED ANNUALLY

FROM THE TOWN AND SURROUNDING AREAS

index

general interest

from the inside

with first and last name

worldwide

with the people

company has a primary role, and that it makes sense to get seriously involved."

_ in the photo: Carmen Cisternas Director of Institutional Relations and Community Outreach of Fundación Belén Educa.

In addition, Empresas Copec has been collaborating with Fundación Belén Educa since 2006 to provide quality education to the students of its 12 schools, contributing directly to their school progress from pre-kindergarten to the fourth year of high school.

In its 23 years of history, this Foundation has developed an educational project that seeks to provide quality education and comprehensive training for its students. Its schools are located in the municipalities of Puente Alto, Maipú, La Pintana, San Joaquín, Quilicura, Pudahuel, Santiago, Cerro Navia and a school in La Unión, Los Ríos Region. About 15 thousand young people study there, about a thousand teachers work there, and with 11 thousand graduates, has an 85.4% School Vulnerability Index and 15.2% of Attention to Special Educational Needs.

For Carmen Cisternas, director of institutional relations and community outreach of Fundación Belén Educa, the commitment of Empresas Copec and its subsidiaries to education has a long history. "It is not an event. It is a permanent commitment to transform the lives of children and

summing it up

news

One of the results of this alliance is reflected in the continuity of studies of Belén Educa graduates. In 2023, 67% of its students who graduated from fourth year of high school entered higher education, and this percentage reached 86% for the young people who participated in the Tutoring Program with Empresas Copec.

"Our students identify Empresas Copec and its subsidiaries as something significant in their school career, as a strategic ally that provides them with cultural capital, knowledge and a link between two worlds, new expectations and a view of the future," says the director, pointing out that more than a donation, it is a human and business commitment.

young people through education. We have a common vision and shared convictions that translate into a concrete and personal business commitment of the executives and their subsidiaries in different programs."

_ in the photo: Empresas Copec’s directors and executives during the award ceremony of the Anacleto Angelini Fabbri scholarship, granted to outstanding students of Fundación Belén Educa.

During these 18 years, a Corporate Sustainability Plan has been developed based on corporate volunteering, in which mentoring has been carried out where executives of Empresas Copec and its subsidiaries have accompanied around 360 students from third and fourth grade of high school in the construction of their life projects; lectures with a scope of 4,400 students, where executives contribute to the development of professional vocation through their life experience and professional practices. In addition, it contemplates the financing of projects that consider educational, pedagogical and professional technical programs and the "Anacleto Angelini Fabbri Academic Excellence Scholarship" for them to continue their higher education, which has benefited 130 students.

_ in the photo: Tomás Recart Co-founder and executive director of Enseña Chile.

77 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

what is simce?

The education quality measurement system was established in 1968 with the aim of providing relevant information about the education system by assessing students' learning achievements in various areas of the national curriculum while contributing to enhance the quality and equity of education.

The latest test, conducted in 2022, was administered to fourth-grade and secondyear high school students in the subjects of Language and Communication (Reading Comprehension and Writing) and Mathematics.

Furthermore, it gathers information about teachers, students, parents, and guardians through questionnaires that are employed to contextualize and analyze the students' outcomes.

78 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

empresas copec ENERGY SECTOR EBITDA: US$ 547 million

FISHING SECTOR EBITDA: US$ 60 million

RESULTS AS OF JUNE 2023

FORESTRY SECTOR EBITDA: US$ 462 million

empresas copec’s consolidated ebitda and net income accumulated as of june 2023 reached us$ 1,058 million and us$ 214 million, respectively.

OTHER EBITDA: US$ (11) million

TOTAL NET INCOME: US$ 214 million EBITDA: US$ 1.058 million

79 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

stable scenario, at levels that are similar to historical averages.

In energy, our results also show an unfavorable comparison. The effects of inventory revaluation are negative, after several quarters recording favorable figures for this concept.

There is also a slight decline in margins in the industrial sector, partly associated with lower volumes. _ in the photo: Rodrigo Huidobro Alvarado CFO at Empresas Copec.

A few weeks ago, we released the results for the first half of the year. Ebitda of US$1.058 billion and net income of US$214 million are much lower than the figures we had been reporting over the last two years.

And this is because an important part of our activities is cyclical. Pulp, for instance, has shown significantly lower market prices, related to weaker demand, especially in Europe, and to the entrance of two important mills with new capacity, one of them - MAPA - owned by our subsidiary ARAUCO. Panel and timber markets also showed less favorable conditions than in recent years. These, however, were exceptionally good, and were partly driven by significant construction and residential remodeling activity that had begun in the pandemic years. Today we have seen that demand and prices, after a deep decline in the first quarter, are gradually returning to a more

All of the above is partially offset by good results in Abastible and Alxar Internacional. In the first case, the Peruvian subsidiary Solgas has recorded rising sales figures and has established a solid strategic supply position. In the second case, Mina Justa, also in Peru, has shown an outstanding performance in terms of production and costs, in a scenario of good prices.

All in all, our credit indicators have worsened, which is part of the cyclicality of our businesses. This is reflected in our Financial Policy, which incorporates metrics measured over long-term horizons, and it is also understood by the risk rating agencies, which have just ratified our rating in the BBB Investment Grade category, with a stable outlook.

We have a resilient, solid and well-thoughtout financial structure that allows us to move forward with our strategic investment plan.

Thus, in addition to the start-up of MAPA, by ARAUCO, which as of July already produced 325 thousand tons, with more than 80% of it of premium quality, we have made progress in the potential Sucuriú project in Brazil. This could add 50% of additional pulp capacity by the end of this decade and requires to build important plantations, with a significant positive climatic effect. As we have said, sustainability is inherent to our business.

Similarly, in Energy, Copec and Abastible continue with their initiatives focused on promoting the energy transition and the transformation of their business model. A representative milestone in this regard is Copec's acquisition of a controlling stake in Spanish Ampere Energy, leader in intelligent energy storage and management, with activities in Europe, Chile and Colombia, among other countries. It is an innovative company, which allows to reach the end user, promotes energy efficiency and favors renewable generation. These are all attributes that are shaping our energy future.

Thus, we continue on the path of profitable and sustainable growth, seeking to deliver resources and energy to improve the lives of current and future generations.

80 _

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

news

81 _

belén educa students receive the “anacleto angelini fabbri scholarship of excellence”

arauco issues three sustainable bonds

wind ventures awarded as the best corporate venture capital in chile

golden omega obtains ssindex sustainability certification

read read read

read

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

news

82 _

fitch ratings and s&p ratify "bbb" international rating for empresas copec

las salinas gets ready for sanitation project in viña de mar

orizon seafood enters premium pet food market

copec's new electroterminal to power santiago's electric buses

read read read

read

index

general interest

from the inside

with first and last name

worldwide

with the people

summing it up

news

news

83 _

empresas copec and subsidiaries are distinguished in merco talento 2023

copec launches digital payment app

empresas copec subsidiaries lead ranking in payment to smes

copec and abastible are recognized as most valued brands

read read

read

read

news

belén educa students receive the “anacleto angelini fabbri scholarship of excellence” to date, 130 students have benefited from this distinction, annually awarded by empresas copec.

In an emotional ceremony, the scholarship was awarded to graduates of Belén Educa Foundation schools, which provides resources for annual maintenance and support for higher technical education and professional studies.

Roberto Angelini, chairman of Empresas Copec, congratulated the award winners saying: “Your determination and dedication are truly inspiring. Keep moving forward and always remember that, although the road may be difficult, your community is here to support you on your journey towards a future where I am sure each of you will shine with your own light.”

Meanwhile, Eduardo Navarro, CEO of Empresas Copec, said: “Those of us who are part of this business group do not work only to provide goods and services, but we have a much more transcendent purpose, which has to do with the contribution that

news menu

next

we, as a Company, make to society. And this type of initiative is a proof of it.”

Executives from Empresas Copec also carry out the Mentoring Program and Master Keynotes. In addition, the Company provides internship and employment opportunities for young graduates.

84 _

news

arauco issues three sustainable bonds these are transactions whose proceeds will be used for general corporate purposes of the company.

During the second quarter of 2023, ARAUCO completed placements in the local market for a total amount of 12 million UF (Chile’s inflation-indexed currency). These series have a Chilean credit risk rating of AA/Stable, according to Fitch Chile and Feller Rate.

The bonds are classified as "sustainable" since, regardless of the destination of the proceeds, ARAUCO will allocate an equivalent amount to one or more green projects selected for the purposes of the issue, in accordance with the "Sustainability Bond Framework" subscribed by the Company and published on its website.

news menu

next

85 _

news

wind ventures awarded as the best corporate venture capital in chile since its creation in 2019, it has invested more than us$100 million in 22 startups nationally and internationally.

The survey, conducted by CIE Innovación ESE Business and El Mercurio’s Innovation section, analyzed the investment strategies, policies and processes of 36 CVCs, highlighting those with the greatest maturity in their fund. In addition to leading the overall ranking, WIND also led the Energy sector.

The study highlights its strategic focus and commitment to Copec’s transformation, being able to identify and support companies that are at the forefront of trends in energy, mobility and convenience, generating a positive economic and social impact in the countries where the subsidiary operates.

WIND Ventures is focused on driving innovation in the New Energy, New Mobility and New Convenience sectors.

Since its creation in 2019, it has invested more than US$100 million in 22 startups nationally and internationally.

Leonardo Ljubetic, Copec’s corporate manager of Development and Management, and leader of the

news menu

next

WIND unit, said: “Large companies face the challenge of transforming ourselves to be more sustainable and incorporate differentiating value propositions that best serve the country and society.

To this end, it is key to develop a strategic investment arm that is nourished by the world of entrepreneurship and innovation in order to build these new businesses.”

86 _

news

golden omega obtains ssindex sustainability certification the overall rating received by the related company confirms its good performance in environmental, social and governance matters.

For the second consecutive year, the company dedicated to the production of high-quality omega-3 fatty acids, conducted the Stakeholders Sustainability Index (SSIndex) survey to determine the perception of its employees, customers, suppliers and the community on its ESG performance.

The overall rating obtained by Golden Omega reached 72% among its stakeholders, a figure 5% higher than the average of the SSIndex 2022 companies.

In addition, during 2022 Golden Omega was certified for its management of employees, customers and suppliers, groups where it obtained an average score of 77%, 84% and 87%, respectively.

news menu

next

This indicator, shaped by academics from prestigious universities in the United States, makes it possible to identify and manage risk and sustainability hotspots through a complete analysis of the stakeholders surveyed.

87 _

news

fitch ratings and s&p ratify "bbb" international rating for empresas copec both agencies maintained the company's stable outlook, highlighting its healthy credit profile.

While Fitch Ratings highlighted its strong and diversified portfolio, along with the solid commercial position of its main subsidiaries, such as ARAUCO, Copec and Abastible, Standard & Poor's projected that MAPA's production volume would offset lower prices in the pulp market while highlighting the strengths of the rest of the group's operations.

"We have always promoted an efficient, cautious and solid financial structure and a robust balance sheet. All of this is a necessary condition for developing our business strategy with a long-term view," said Eduardo Navarro, CEO of Empresas Copec.

news menu

next

88 _

news

las salinas gets ready for sanitation project in viña de mar the environmental assessment service reported details of the resolution that ratifies the favorable agreement reached by the committee of ministers in 2022.

In this regard, Ricardo Labarca, Development Manager of Las Salinas, said: "It is good news for Viña del Mar that we can begin the preparation stage for the final remediation of the land and that its recovery for the city is feasible.

This will be a remediation process that we will carry out rigorously, with high environmental standards and scientific thoroughness, to make these soils available for a future development, agreed with the community and which will improve people’s quality of life."

Following the resolution and in order to maintain the focus on dialogue, the company will carry out a program called Comunidad Informada (Informed Community), which incorporates a participatory monitoring plan that

news menu

next

will be submitted to the Superintendency of the Environment (SMA, for its acronym in Spanish) for its approval.

Simultaneously, Las Salinas will soon initiate an international bidding process to select who will execute the bioremediation plan starting in 2024.

89 _

news

orizon seafood enters premium pet food market the subsidiary became the first company in the sector in chile to offer a complete portfolio of products with marine proteins as its main ingredient.

The raw material used to produce the dry food under Orizon’s new brand, PetMarine, is Pacific horse mackerel, obtained from sustainably managed fisheries, which is also certified and antibiotic-free.

With this important step, Orizon begins to compete in the premium segment of the pet food market, through which expects sales of near US$40 million by 2025.

“We see a clear and growing trend for a greater demand of marine products, both for human consumption and animal feed. These are highly digestible and naturally provide Omega-3, which contributes to a healthier coat and helps the cardiovascular system and the brain, cognitive and visual

news menu

next

development of pets,” said Francisco Ovalle, manager of Orizon Smart Nutrition, the division responsible for this business.

90 _

news

copec's new electroterminal to power santiago's electric buses this milestone completes the installation of 11 electrical terminals designed, built and operated by copec voltex since 2020.

In the presence of the Minister of Transport and Telecommunications, Juan Carlos Muñoz, the subsidiary inaugurated a new electroterminal in the municipality of Peñalolén, which will supply energy to half of Santiago's fleet of electric buses and will be part of the metropolitan public transport system (RED).

This milestone represents the consolidation of a publicprivate partnership that contributes to the renovation of the system's buses, with a positive impact on the environment and the communities.

news menu

next

Arturo Natho, general manager of Copec, said: "We want to promote sustainable mobility and also contribute to people's quality of life by reducing air and noise pollution indexes."

91 _

news

empresas copec and subsidiaries are distinguished in merco talento 2023 the company and its subsidiaries showed significant progress in the ranking, which analyzes their ability to attract and retain talent.

Empresas Copec climbed 39 positions in the overall ranking compared to the previous year, reaching 30th place. It also achieved second place in the Holding Company category.

Copec ranked 11th in the ranking and, together with Abastible, took first and third place, respectively, in the Energy and Distribution category. Finally, ARAUCO climbed 23 places in the overall study.

The report, for which results are audited by consulting firm KPMG and which includes the participation of 30,536 employees of the companies analyzed, addresses different reputational dimensions linked to talent, including surveys

news menu

next

to workers, university students, business school graduates, unions, headhunters, human resources managers, academics and the general public.

92 _

news

copec launches digital payment app the subsidiary is the first fuel distributor and energy supplier in the country to enter the financial industry.

“Copec Pay” is a new feature that allows customers to manage their funds and make different transactions such as paying for fuel, making purchases at Pronto and Punto stores and transfer money to other users. All of the above from a renewed application that will be renamed from “Muevo” to “Copec.”

This takes place after the subsidiary received authorization to operate as a prepaid card issuer by the Financial Market Commission (CMF) in December 2022.

During a second stage, Copec Pay will launch digital and physical prepaid cards, which can be used to buy in any national and international retailer, extending its use beyond the payment of fuel and convenience stores.

news menu

next

“The digitalization of our services is part of Copec’s transformation process, always focused on our customers, who are the engine that inspires us and drives our efforts.

Understanding people’s needs to make their lives easier has enabled us to innovate and expand our service platforms,” said Arturo Natho, general manager of Copec.

93 _

news

empresas copec subsidiaries lead ranking in payment to smes abastible, arauco and copec were acknowledged with the best paying companies award.

This award is given by Bolsa de Productos de Chile -Chile’s commodity exchange-, Chile’s entrepreneur association ASECH, and El Mercurio, to those companies that stand out for their behavior and implementation of good practices in the timely payment to their suppliers.

In total, 34 firms in 20 categories were awarded in the Payers Report from the first half of 2023. This analysis has been carried out since 2015 and this time evaluated 8,200 companies, through a system that considers the effective payment term and the number of invoices.

This way, Empresas Copec and its subsidiaries ratify their commitment to the country's SMEs.

news menu

next

94 _

news

copec and abastible are recognized as most valued brands the subsidiaries were distinguished in the procalidad and icreo rankings, and in the marcas ciudadanas (citizen brands) study by cadem consulting firm.

Copec won first place in the Service Stations category in ProCalidad 2023 National Customer Satisfaction Index, which annually rewards the major brands that are best evaluated by their customers. On the other hand, it led the Energy sector in the ICREO study, which considers public opinion trust. Abastible also won first place in this publication in the Basic Services category.

In addition, as part of the 12th version of the Citizen Brands study by consulting firm Cadem, Copec and Pronto Copec ranked first in their categories, service stations and convenience stores, respectively, during the first half of 2023.

news menu

Finally, the publication also ranked ARAUCO, Punto Copec and Abastible among the brands that showed the greatest increases in the overall list for the period.

95 _

journalistic magazine published by: empresas copec s.a. el golf 150, piso 17. las condes teléfono: 2461 7000 legal representative: eduardo navarro director: rodrigo huidobro editing and writing: m. francisca riveros journalists: natalia labbé daniela araneda marisol silva francisca zúñiga constanza serrano proofreading: norinna carapelle photography: luis vargas photo bank of empresas copec companies and subsidiaries image banks design and graphic production: porta4, design studio translation: cristina molina if you have any suggestions and opinions, please write to us at comunicaciones@empresascopec.cl follow us:

www.empresascopec.cl

96 _

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.